1.1 	A bill for an act
1.2 	relating to retirement; authorizing new categories of investments for the State 
1.3 	Board of Investment; excluding new trades employees from Public Employees 
1.4 	Retirement Association general plan coverage and grandfathering currently covered 
1.5 	members; permitting contributions to multiemployer plans for employees in the 
1.6 	building and constructions trades by the city of St. Paul and the St. Paul School 
1.7 	District; revising augmentation for certain privatized medical facilities and their 
1.8 	employees; amending requirements for reporting by pension funds to the state 
1.9 	auditor; making changes of an administrative nature for the Minnesota State 
1.10 	Retirement System, the Public Employees Retirement Association, the statewide 
1.11 	volunteer firefighter plan, and the Teachers Retirement Association; authorizing 
1.12 	the purchase of service credit for a certain Maplewood firefighter; increasing the 
1.13 	maximum for lump sum pensions for volunteer firefighter relief associations; 
1.14 	revising the allocation of fire state aid; assigning fire state aid to the city of Eagan; 
1.15 	providing new procedures for volunteer firefighter relief association dissolution 
1.16 	and termination of its retirement plan; providing for the dissolution of the Brooklyn 
1.17 	Park Firefighter Relief Association and the termination of the retirement plan; 
1.18 	providing for the division of the Ramsey Volunteer Firefighters' Relief Association 
1.19 	and the transfer of accounts to a relief association affiliated with the city of 
1.20 	Nowthen; authorizing relief associations to convert from a defined benefit plan to 
1.21 	a defined contribution plan; implementing the recommendations of the state 
1.22 	auditor's volunteer firefighter working group; temporarily extending the grandfather 
1.23 	provision regarding actuarial assumptions used to compute an annuity in the 
1.24 	Minnesota State Retirement System unclassified plan; amending Minnesota Statutes 
1.25 	2018, sections 11A.24, subdivisions 1, 6; 352.01, subdivision 26; 352.04, 
1.26 	subdivisions 4, 8, by adding a subdivision; 352.113, subdivision 4; 352.95, 
1.27 	subdivision 3; 352B.011, subdivisions 6, 10; 352B.10, subdivision 2a; 352D.06, 
1.28 	subdivision 1; 353.29, subdivisions 1, 7; 353.30, subdivision 3c; 353.31, subdivision 
1.29 	8; 353.32, subdivision 4; 353.651, subdivision 1; 353.656, subdivisions 1, 3; 
1.30 	353.657, subdivision 1; 353F.02, by adding subdivisions; 353F.04; 353G.01, by 
1.31 	adding a subdivision; 353G.05, subdivisions 1, 5, by adding a subdivision; 353G.09, 
1.32 	subdivision 3, by adding a subdivision; 353G.11, subdivision 2; 353G.121; 354.05, 
1.33 	subdivisions 2, 41; 354.44, subdivisions 4, 6; 354.46, subdivision 2; 354.49, 
1.34 	subdivision 2; 354.543, subdivision 3; 356.219, subdivisions 1, 6, 7; 356.24, 
1.35 	subdivision 1, by adding a subdivision; 424A.003; 424A.02, subdivision 3; 
1.36 	424A.03, as amended; 424A.092, subdivisions 1, 2; 424B.01, by adding 
1.37 	subdivisions; 490.121, subdivision 7c; 490.123, subdivision 5; 490.124, subdivision 
1.38 	1; Minnesota Statutes 2019 Supplement, sections 352.04, subdivision 9; 352.113, 
2.1 	subdivision 2; 352.23; 353.01, subdivision 2b; 353.0141, subdivision 1; 353.34, 
2.2 	subdivision 3; 353.371, subdivisions 1, 2, by adding a subdivision; 356.219, 
2.3 	subdivisions 3, 8; 424A.014, subdivision 1; 424A.016, subdivisions 4, 6; 477B.04, 
2.4 	subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 356; 
2.5 	424B; 477B; repealing Minnesota Statutes 2018, sections 353.30, subdivision 4; 
2.6 	354.55, subdivision 10; 356.24, subdivision 2; 356.44; 424B.20; 424B.21; Laws 
2.7 	1980, chapter 607, section 13; Laws 2018, chapter 211, article 14, section 29.
2.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.9 	ARTICLE 1
2.10 	STATE BOARD OF INVESTMENT PROVISIONS

2.11 	Section 1. Minnesota Statutes 2018, section 11A.24, subdivision 1, is amended to read:
2.12 		Subdivision 1.Securities generally. (a) Pursuant to an investment policy adopted by 
2.13 	the state board, the state board is authorized to purchase, sell, lend, and exchange the 
2.14 	securities specified in this section, for funds or accounts specifically made subject to this 
2.15 	section. This authority includes puts and call options, future contracts, and swap contracts 
2.16 	marked to market, if these options and contracts are traded on a contract market regulated 
2.17 	by a governmental agency or by a financial institution regulated by a governmental agency. 
2.18 	These securities may be owned directly or through shares in exchange-traded or mutual 
2.19 	funds, or as units in commingled trusts, subject to any limitations as specified in this section.
2.20 	(b) Any agreement to lend securities must be concurrently collateralized with cash or 
2.21 	securities with a market value of not less than 100 percent of the market value of the loaned 
2.22 	securities at the time of the agreement. Any agreement for put and call options and futures 
2.23 	contracts may only be entered into with a fully offsetting amount of cash or securities. Only 
2.24 	securities authorized by this section, excluding those under subdivision 6, paragraph (a), 
2.25 	clauses (1) to (3) (5), may be accepted as collateral or offsetting securities.

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

2.27 	Sec. 2. Minnesota Statutes 2018, section 11A.24, subdivision 6, is amended to read:
2.28 		Subd. 6.Other investments. (a) In addition to the investments authorized in subdivisions 
2.29 	1 to 5, and subject to the provisions in paragraph (b), the state board is authorized to invest 
2.30 	funds in:
2.31 	(1) equity and debt investment businesses through participation in limited partnerships, 
2.32 	trusts, private placements, limited liability corporations, limited liability companies, limited 
2.33 	liability partnerships, and corporations;
3.1 	(2) real estate ownership interests or loans secured by mortgages or deeds of trust or 
3.2 	shares of real estate investment trusts through investment in limited partnerships, 
3.3 	bank-sponsored collective funds, trusts, mortgage participation agreements, and insurance 
3.4 	company commingled accounts, including separate accounts;
3.5 	(3) resource investments through limited partnerships, trusts, private placements, limited 
3.6 	liability corporations, limited liability companies, limited liability partnerships, and 
3.7 	corporations; and
3.8 	(4) investment vehicles that are co-investments or separate accounts;
3.9 	(5) liquid alternatives;
3.10 	(6) bank loans; and
3.11 	(4)(7) international securities.
3.12 	(b) The investments authorized in paragraph (a) must conform to the following provisions
3.13 	clauses:
3.14 	(1) the aggregate value of all investments made under paragraph (a), clauses (1) to (3)
3.15 	(4), may not exceed 35 percent of the market value of the fund for which the state board is 
3.16 	investing;
3.17 	(2) there must be at least four unrelated owners of the investment other than the state 
3.18 	board for investments made under paragraph (a), clause (1), (2), or (3);
3.19 	(3) state board participation in an investment vehicle is limited to 20 percent thereof for 
3.20 	investments made under paragraph (a), clause (1), (2), or (3); and
3.21 	(4) state board participation in a limited partnershipan investment vehicle does not 
3.22 	include a general partnership interest or other interest involving general liability. The state 
3.23 	board may not engageparticipate in any activity as a limited partnerinvestment vehicle in 
3.24 	a manner which creates general liability.
3.25 	(c) All financial, business, or proprietary data collected, created, received, or maintained 
3.26 	by the state board in connection with investments authorized by paragraph (a), clauseclauses 
3.27 	(1), (2), or (3) to (6), are nonpublic data under section 13.02, subdivision 9. As used in this 
3.28 	paragraph, "financial, business, or proprietary data" means data, as determined by the 
3.29 	responsible authority for the state board, that is of a financial, business, or proprietary nature, 
3.30 	the release of which could cause competitive harm to the state board, the legal entity in 
3.31 	which the state board has invested or has considered an investment, the managing entity of 
3.32 	an investment, or a portfolio company in which the legal entity holds an interest. As used 
4.1 	in this section, "business data" is data described in section 13.591, subdivision 1. Regardless 
4.2 	of whether they could be considered financial, business, or proprietary data, the following 
4.3 	data received, prepared, used, or retained by the state board in connection with investments 
4.4 	authorized by paragraph (a), clauseclauses (1), (2), or (3) to (6), are public at all times:
4.5 	(1) the name and industry group classification of the legal entity in which the state board 
4.6 	has invested or in which the state board has considered an investment;
4.7 	(2) the state board commitment amount, if any;
4.8 	(3) the funded amount of the state board's commitment to date, if any;
4.9 	(4) the market value of the investment by the state board;
4.10 	(5) the state board's internal rate of return for the investment, including expenditures 
4.11 	and receipts used in the calculation of the investment's internal rate of return; and
4.12 	(6) the age of the investment in years.

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

4.14 	ARTICLE 2
4.15 	ST. PAUL CITY AND SCHOOL DISTRICT
4.16 	CONTRIBUTIONS TO MULTIEMPLOYER PLANS

4.17 	Section 1. Minnesota Statutes 2019 Supplement, section 353.01, subdivision 2b, is amended 
4.18 	to read:
4.19 		Subd. 2b.Excluded employees. (a) The following public employees are not eligible to 
4.20 	participate as members of the association with retirement coverage by the general employees 
4.21 	retirement plan, the local government correctional employees retirement plan under chapter 
4.22 	353E, or the public employees police and fire retirement plan:
4.23 	(1) persons whose annual salary from one governmental subdivision never exceeds an 
4.24 	amount, stipulated in writing in advance, of $5,100 if the person is not a school district 
4.25 	employee or $3,800 if the person is a school year employee. If annual compensation from 
4.26 	one governmental subdivision to an employee exceeds the stipulated amount in a calendar 
4.27 	year or a school year, whichever applies, after being stipulated in advance not to exceed the 
4.28 	applicable amount, the stipulation is no longer valid and contributions must be made on 
4.29 	behalf of the employee under section 353.27, subdivision 12, from the first month in which 
4.30 	the employee received salary exceeding $425 in a month;
5.1 	(2) public officers who are elected to a governing body, city mayors, or persons who 
5.2 	are appointed to fill a vacancy in an elected office of a governing body, whose term of office 
5.3 	commences on or after July 1, 2002, for the service to be rendered in that elected position;
5.4 	(3) election judges and persons employed solely to administer elections;
5.5 	(4) patient and inmate personnel who perform services for a governmental subdivision;
5.6 	(5) except as otherwise specified in subdivision 12a, employees who are employed solely 
5.7 	in a temporary position as defined under subdivision 12a, and employees who resign from 
5.8 	a nontemporary position and accept a temporary position within 30 days of that resignation 
5.9 	in the same governmental subdivision;
5.10 	(6) employees who are employed by reason of work emergency caused by fire, flood, 
5.11 	storm, or similar disaster, but if the person becomes a probationary or provisional employee 
5.12 	within the same pay period, other than on a temporary basis, the person is a "public 
5.13 	employee" retroactively to the beginning of the pay period;
5.14 	(7) employees who by virtue of their employment in one governmental subdivision are 
5.15 	required by law to be a member of and to contribute to any of the plans or funds administered 
5.16 	by the Minnesota State Retirement System, the Teachers Retirement Association, or the St. 
5.17 	Paul Teachers Retirement Fund Association, but this exclusion must not be construed to 
5.18 	prevent a person from being a member of and contributing to the Public Employees 
5.19 	Retirement Association and also belonging to and contributing to another public pension 
5.20 	plan or fund for other service occurring during the same period of time, and a person who 
5.21 	meets the definition of "public employee" in subdivision 2 by virtue of other service occurring 
5.22 	during the same period of time becomes a member of the association unless contributions 
5.23 	are made to another public retirement plan on the salary based on the other service or to the 
5.24 	Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
5.25 	(8) persons who are members of a religious order and are excluded from coverage under 
5.26 	the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance 
5.27 	of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if 
5.28 	no irrevocable election of coverage has been made under section 3121(r) of the Internal 
5.29 	Revenue Code of 1954, as amended;
5.30 	(9) persons who are:
5.31 	(i) employed by a governmental subdivision who have not reached the age of 23 and 
5.32 	who are enrolled on a full-time basis to attend or are attending classes on a full-time basis 
6.1 	at an accredited school, college, or university in an undergraduate, graduate, or 
6.2 	professional-technical program, or at a public or charter high school;
6.3 	(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist 
6.4 	interns and are serving in a degree or residency program in a public hospital or in a public 
6.5 	clinic; or
6.6 	(iii) students who are serving for a period not to exceed five years in an internship or a 
6.7 	residency program that is sponsored by a governmental subdivision, including an accredited 
6.8 	educational institution;
6.9 	(10) persons who hold a part-time adult supplementary technical college license who 
6.10 	render part-time teaching service in a technical college;
6.11 	(11) for the first three years of employment, foreign citizens who are employed by a 
6.12 	governmental subdivision, except that the following foreign citizens are included employees 
6.13 	under subdivision 2a:
6.14 	(i) employees of Hennepin County or Hennepin Healthcare System, Inc.;
6.15 	(ii) employees legally authorized to work in the United States for three years or more; 
6.16 	and
6.17 	(iii) employees otherwise required to participate under federal law;
6.18 	(12) public hospital employees who elected not to participate as members of the 
6.19 	association before 1972 and who did not elect to participate from July 1, 1988, to October 
6.20 	1, 1988;
6.21 	(13) except as provided in section 353.86, volunteer ambulance service personnel, as 
6.22 	defined in subdivision 35, but persons who serve as volunteer ambulance service personnel 
6.23 	may still qualify as public employees under subdivision 2 and may be members of the Public 
6.24 	Employees Retirement Association and participants in the general employees retirement 
6.25 	plan or the public employees police and fire plan, whichever applies, on the basis of 
6.26 	compensation received from public employment service other than service as volunteer 
6.27 	ambulance service personnel;
6.28 	(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 
6.29 	36, engaging in activities undertaken as part of volunteer firefighter duties, but a person 
6.30 	who is a volunteer firefighter may still qualify as a public employee under subdivision 2 
6.31 	and may be a member of the Public Employees Retirement Association and a participant 
6.32 	in the general employees retirement plan or the public employees police and fire plan, 
7.1 	whichever applies, on the basis of compensation received from public employment activities 
7.2 	other than those as a volunteer firefighter;
7.3 	(15) employees in the building and construction trades, as follows:
7.4 	(i) pipefitters and associated trades personnel employed by Independent School District 
7.5 	No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters 
7.6 	local 455 pension plan who were either first employed after May 1, 1997, or, if first employed 
7.7 	before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section 
7.8 	12;
7.9 	(16)(ii) electrical workers, plumbers, carpenters, and associated trades personnel who 
7.10 	are employed by Independent School District No. 625, St. Paul, or the city of St. Paul, who 
7.11 	have retirementwith coverage under a collective bargaining agreement by the electrical 
7.12 	workers local 110 pension plan, the United Association plumbers local 34 pension plan, or 
7.13 	the pension plan applicable to carpenters local 322 pension plan who were either first 
7.14 	employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded 
7.15 	under Laws 2000, chapter 461, article 7, section 5;
7.16 	(17)(iii) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, 
7.17 	allied tradesworkers, and plasterers who are employed by the city of St. Paul or Independent 
7.18 	School District No. 625, St. Paul, with coverage under a collective bargaining agreement 
7.19 	by the bricklayers and allied craftworkers local 1 pension plan, the cement masons local 
7.20 	633 pension plan, the glaziers and glassworkers local l-13241324 pension plan, the painters 
7.21 	and allied trades local 61 pension plan, or the twin cities plasterers local 265 pension plan 
7.22 	who were either first employed after May 1, 2001, or if first employed before May 2, 2001, 
7.23 	elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 
7.24 	6;
7.25 	(18)(iv) plumbers who are employed by the Metropolitan Airports Commission, with 
7.26 	coverage under a collective bargaining agreement by the plumbers local 34 pension plan, 
7.27 	who were either were first employed after May 1, 2001, or if first employed before May 2, 
7.28 	2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, 
7.29 	section 6;
7.30 	(v) electrical workers or pipefitters employed by the Minneapolis Park and Recreation 
7.31 	Board, with coverage under a collective bargaining agreement by the electrical workers 
7.32 	local 292 pension plan or the pipefitters local 539 pension plan, who were first employed 
7.33 	before May 2, 2015, and elected to be excluded under Laws 2015, chapter 68, article 11, 
7.34 	section 5;
8.1 	(vi) laborers and associated trades personnel employed by the city of St. Paul or 
8.2 	Independent School District No. 625, St. Paul, who are designated as temporary employees 
8.3 	with coverage under a collective bargaining agreement by a multiemployer plan as defined 
8.4 	in section 356.27, subdivision 1, who were either first employed on or after June 1, 2018, 
8.5 	or if first employed before June 1, 2018, elected to be excluded under Laws 2018, chapter 
8.6 	211, article 16, section 13; and
8.7 	(vii) employees who are trades employees as defined in section 356.27, subdivision 1, 
8.8 	first hired on or after July 1, 2020, by the city of St. Paul or Independent School District 
8.9 	No. 625, St. Paul, except for any trades employee for whom contributions are made under 
8.10 	section 356.24, subdivision 1, clause (8), (9), or (10), by either employer to a multiemployer 
8.11 	plan as defined in section 356.27, subdivision 1;
8.12 	(19)(16) employees who are hired after June 30, 2002, solely to fill seasonal positions 
8.13 	under subdivision 12b which are limited in duration by the employer to 185 consecutive 
8.14 	calendar days or less in each year of employment with the governmental subdivision;
8.15 	(20)(17) persons who are provided supported employment or work-study positions by 
8.16 	a governmental subdivision and who participate in an employment or industries program 
8.17 	maintained for the benefit of these persons where the governmental subdivision limits the 
8.18 	position's duration to up to five years, including persons participating in a federal or state 
8.19 	subsidized on-the-job training, work experience, senior citizen, youth, or unemployment 
8.20 	relief program where the training or work experience is not provided as a part of, or for, 
8.21 	future permanent public employment;
8.22 	(21)(18) independent contractors and the employees of independent contractors;
8.23 	(22)(19) reemployed annuitants of the association during the course of that 
8.24 	reemployment;
8.25 	(23)(20) persons appointed to serve on a board or commission of a governmental 
8.26 	subdivision or an instrumentality thereof; and
8.27 	(24)(21) persons employed as full-time fixed-route bus drivers by the St. Cloud 
8.28 	Metropolitan Transit Commission who are members of the International Brotherhood of 
8.29 	Teamsters Local 638 and who are, by virtue of that employment, members of the International 
8.30 	Brotherhood of Teamsters Central States pension plan;.
8.31 	(25) electricians or pipefitters employed by the Minneapolis Park and Recreation Board, 
8.32 	with coverage under a collective bargaining agreement by the IBEW local 292, or pipefitters 
9.1 	local 539 pension plan, who were first employed before May 2, 2015, and who elected to 
9.2 	be excluded under Laws 2015, chapter 68, article 11, section 5; and
9.3 	(26) laborers and associated trades personnel employed by the city of St. Paul or 
9.4 	Independent School District No. 625, St. Paul, who are designated as temporary employees 
9.5 	under a collective bargaining agreement and have retirement coverage by the Minnesota 
9.6 	Laborers Pension Fund who were either first employed on or after June 1, 2018, or, if first 
9.7 	employed before June 1, 2018, who elected to be excluded under Laws 2018, chapter 211, 
9.8 	article 16, section 13.
9.9 	(b) Any person performing the duties of a public officer in a position defined in 
9.10 	subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an 
9.11 	employee of an independent contractor.

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

9.13 	Sec. 2. [356.27] CITY OF ST. PAUL AND INDEPENDENT SCHOOL DISTRICT 
9.14 	NO. 625, ST. PAUL; CONTRIBUTIONS TO MULTIEMPLOYER PLANS.
9.15 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
9.16 	subdivision have the meanings given them.
9.17 	(b) "Building and construction trades" means categories of employees who perform 
9.18 	building construction, maintenance, or inspection services, including:
9.19 	(1) bricklayers;
9.20 	(2) carpenters;
9.21 	(3) cement masons;
9.22 	(4) electricians;
9.23 	(5) elevator constructors;
9.24 	(6) glaziers;
9.25 	(7) laborers;
9.26 	(8) operating engineers;
9.27 	(9) painters;
9.28 	(10) pipefitters;
9.29 	(11) plasterers;
9.30 	(12) plumbers;
10.1 	(13) roofers;
10.2 	(14) sheet metal workers; and
10.3 	(15) sprinkler fitters.
10.4 	Building and construction trades does not include machinists or teamsters.
10.5 	(c) "Employers" means the city of St. Paul and Independent School District No. 625, 
10.6 	St. Paul.
10.7 	(d) "Grandfathered trades employees" means trades employees on whose behalf an 
10.8 	employer made contributions on or before June 30, 2020, to PERA and to one or more 
10.9 	multiemployer plans other than as provided in section 356.24, subdivision 1, clause (8), (9), 
10.10 	or (10).
10.11 	(e) "Multiemployer plan" means a plan or fund subject to the federal Employee 
10.12 	Retirement Income Security Act of 1974, as amended, to which more than one employer 
10.13 	is required to contribute and that is maintained pursuant to one or more collective bargaining 
10.14 	agreements between one or more labor organizations and more than one employer. For 
10.15 	purposes of this section, a multiemployer plan may be: (1) either a defined benefit pension 
10.16 	plan or a defined contribution retirement plan; and (2) either a plan that covers employees 
10.17 	in one or more local units in the state of Minnesota or a plan that covers union employees 
10.18 	nationwide.
10.19 	(f) "PERA" means the Public Employees Retirement Association general plan established 
10.20 	under chapter 353.
10.21 	(g) "Trades employees" means employees principally employed in one of the building 
10.22 	and construction trades.
10.23 		Subd. 2.Negotiating over contributions to multiemployer plans authorized. The 
10.24 	employers are authorized to negotiate, with labor organizations representing trades 
10.25 	employees, collective bargaining agreements that provide for contributions to multiemployer 
10.26 	plans on the basis of hours worked or paid. Any provision must identify each multiemployer 
10.27 	plan to which contributions are to be made and, beginning with any such collective bargaining 
10.28 	agreement or renewal thereof entered into after June 30, 2020, must include the employer 
10.29 	identification number and plan number unique to the plan.
10.30 		Subd. 3.Participation in PERA. (a) In connection with services performed for an 
10.31 	employer under a collective bargaining agreement authorized by subdivision 2, a trades 
10.32 	employee first hired by the employer on or after July 1, 2020, shall not participate in PERA, 
10.33 	except for a trades employee whose employer makes contributions on behalf of the trades 
11.1 	employee to PERA and to one or more multiemployer plans as provided in section 356.24, 
11.2 	subdivision 1, clause (8), (9), or (10).
11.3 	(b) Grandfathered trades employees shall continue to participate in PERA according to 
11.4 	chapter 353 and in one or more multiemployer plans pursuant to a collective bargaining 
11.5 	agreement authorized by subdivision 2. Participation shall not be subject to section 356.24.
11.6 		Subd. 4.Employer's reporting obligation. (a) If an employer negotiates a collective 
11.7 	bargaining agreement authorized by subdivision 2 that covers grandfathered trades 
11.8 	employees, the employer shall annually submit a report that satisfies the requirements of 
11.9 	paragraph (b) to the executive director of the Legislative Commission on Pensions and 
11.10 	Retirement annually, no later than 60 days after the end of the employer's fiscal year.
11.11 	(b) The report shall provide for each labor organization the number of grandfathered 
11.12 	trades employees for whom the employer made contributions during the prior fiscal year.
11.13 	(c) After receiving a report from an employer, the executive director of the Legislative 
11.14 	Commission on Pensions and Retirement may request additional information that the 
11.15 	employer shall promptly provide.
11.16 	(d) The reporting obligation expires upon submission of a report for the last fiscal year 
11.17 	in which the employer makes a contribution to PERA with respect to a grandfathered trades 
11.18 	employee.

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

11.20 	Sec. 3. REPEALER.
 11.21 	Minnesota Statutes 2018, section 356.24, subdivision 2, is repealed.

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

11.23 	ARTICLE 3
11.24 	MODIFICATIONS TO PERA PROVISIONS RELATING TO 
11.25 	PRIVATIZATION OF MEDICAL FACILITIES

11.26 	Section 1. Minnesota Statutes 2018, section 353F.02, is amended by adding a subdivision 
11.27 	to read:
11.28 		Subd. 3a.Executive director. "Executive director" means the executive director of the 
11.29 	Public Employees Retirement Association.

11.30 	EFFECTIVE DATE. This section is effective July 1, 2020.

12.1 	Sec. 2. Minnesota Statutes 2018, section 353F.02, is amended by adding a subdivision to 
12.2 	read:
12.3 		Subd. 4a.Medical facility. "Medical facility" means a facility that has the primary 
12.4 	purpose of providing medical care and that satisfies the definition of governmental 
12.5 	subdivision under section 353.01, subdivision 6.

12.6 	EFFECTIVE DATE. This section is effective July 1, 2020.

12.7 	Sec. 3. Minnesota Statutes 2018, section 353F.02, is amended by adding a subdivision to 
12.8 	read:
12.9 		Subd. 4b.Privatization. "Privatization" means a medical facility that privatizes when 
12.10 	the facility ceases to be a governmental subdivision for any reason other than that the medical 
12.11 	facility closes or permanently ceases to operate.

12.12 	EFFECTIVE DATE. This section is effective July 1, 2020.

12.13 	Sec. 4. Minnesota Statutes 2018, section 353F.04, is amended to read:
12.14 	353F.04 AUGMENTATION INTEREST RATES FOR PRIVATIZED FORMER 
12.15 	PUBLIC EMPLOYEES.
12.16 		Subdivision 1.Enhanced augmentation rates. (a) The deferred annuity of a privatized 
12.17 	former public employee is subject to augmentation under section 353.71, subdivision 2, of 
12.18 	the edition of Minnesota Statutes published in the year in which the privatization occurred
12.19 	353.34, subdivision 3, except that the rate of augmentation is as specified in this subdivision
12.20 	section.
12.21 	(b) This paragraph applies if the effective date of privatization was on or before January 
12.22 	1, 2007, and also applies to Hutchinson Area Health Care with a privatization effective date 
12.23 	of January 1, 2008. For a privatized former public employee, the augmentation rate is 5.5 
12.24 	percent compounded annually until January 1 following the year in which the person attains 
12.25 	age 55. FromAfter that date to the effective date of retirement, the augmentation rate is 7.5 
12.26 	percent compounded annually.
12.27 	(c) If paragraph (b) is not applicable, and if the effective date of the privatization is after 
12.28 	January 1, 2007, and before January 1, 2011, then the augmentation rate is four percent 
12.29 	compounded annually until January 1, following the year in which the person attains age 
12.30 	55. FromAfter that date to the effective date of retirement, the augmentation rate is six 
12.31 	percent compounded annually.
13.1 	(d) If the effective date of the privatization is after December 31, 2010, the applicable
13.2 	augmentation rate depends on the result of computations specified in section 353F.025, 
13.3 	subdivision 1. If those computations indicate no loss or a net gain to the fund of the general 
13.4 	employees retirement plan of the Public Employees Retirement Association, the augmentation 
13.5 	rate is two percent compounded annually until the effective date of retirement. If the 
13.6 	computations under that subdivision indicate a net loss to the fund if a two percent 
13.7 	augmentation rate is used, but a net gain or no loss if a one percent rate is used, then the 
13.8 	augmentation rate is one percent compounded annually until the effective date of retirement.
13.9 	(e) Notwithstanding paragraphs (b) to (d), after June 30, 2020, and before January 1, 
13.10 	2024, the augmentation rate for all privatized former public employees under paragraphs 
13.11 	(b) to (d) is two percent compounded annually. After December 31, 2023, no additional 
13.12 	augmentation is applied to the privatized former public employee's deferred annuity.
13.13 		Subd. 2.Exceptions. The increased augmentation rates specified in subdivision 1 do 
13.14 	not apply to a privatized former public employee:
13.15 	(1) beginning the first of the month in which the privatized former public employee 
13.16 	becomes covered again by a retirement plan enumerated in section 356.30, subdivision 3, 
13.17 	if the employee accrues at least six months of credited service in any single plan enumerated 
13.18 	in section 356.30, subdivision 3, except clause (6);
13.19 	(2) beginning the first of the month in which the privatized former public employee 
13.20 	becomes covered again by the general employees retirement plan of the Public Employees 
13.21 	Retirement Association;
13.22 	(3) beginning the first of the month after a privatized former public employee terminates 
13.23 	service with the privatized former public employer; or
13.24 	(4) if the personprivatized former public employee begins receipt of a retirement annuity 
13.25 	while employed by the employer which assumed operations of or purchased the privatized 
13.26 	former public employer.; or
13.27 	(5) if the effective date of privatization occurs after June 30, 2020.

13.28 	EFFECTIVE DATE. This section is effective July 1, 2020.

14.1 	ARTICLE 4
14.2 	MODIFICATIONS TO STATE AUDITOR REPORTING 
14.3 	REQUIREMENTS FOR PENSION PLANS

14.4 	Section 1. Minnesota Statutes 2018, section 356.219, subdivision 1, is amended to read:
14.5 		Subdivision 1.Report required. (a) The State Board of Investment, on behalf of the 
14.6 	public pension funds and programs for which it is the investment authority, and any 
14.7 	Minnesota public pension plan that is not fully invested through the State Board of 
14.8 	Investment, including the Bloomington Fire Department Relief Association and a local,
14.9 	volunteer firefighters relief associationassociations governed by sections 424A.091 to 
14.10 	424A.095, shallthe St. Paul Teachers Retirement Fund Association, and any Minnesota 
14.11 	public pension plan that is not fully invested through the State Board of Investment, must 
14.12 	report the information specified in subdivision 3 to the state auditor. The state auditor may 
14.13 	prescribe a form or forms for the purposes of the reporting requirements contained in this 
14.14 	section.
14.15 	(b) The Bloomington Fire Department Relief Association and a local volunteer firefighters 
14.16 	relief association governed by sections 424A.091 to 424A.095 is fully invested during a 
14.17 	given calendar year for purposes of this section if all assets of the applicable pension plan 
14.18 	beyond sufficient cash equivalent investments to cover six months expected expenses are 
14.19 	invested under section 11A.17. The board of any fully invested public pension plan remains 
14.20 	responsible for submitting investment policy statements and subsequent revisions as required 
14.21 	by subdivision 3, paragraph (a).
14.22 	(c) For purposes of this section, the State Board of Investment is considered to be the 
14.23 	investment authority for any Minnesota public pension fund required to be invested by the 
14.24 	State Board of Investment under section 11A.23, or for any Minnesota public pension fund 
14.25 	authorized to invest in the supplemental investment fund under section 11A.17 and which 
14.26 	is fully invested by the State Board of Investment.
14.27 	(b) For purposes of this section, a pension plan is fully invested through the State Board 
14.28 	of Investment during a given calendar year if all assets of the pension plan beyond sufficient 
14.29 	cash equivalent investments to cover six months of expected expenses are invested under 
14.30 	section 11A.17.
14.31 	(c) A public pension plan to which subdivision 3, paragraph (b) or (c), applies is not 
14.32 	required to file the report required by this subdivision for a given calendar year if the pension 
14.33 	plan's most recent annual financial audit was conducted by the state auditor.
14.34 	(d) This section does not apply to the following plans:
15.1 	(1) the Minnesota unclassified employees retirement program under chapter 352D;
15.2 	(2) the public employees defined contribution plan under chapter 353D;
15.3 	(3) the individual retirement account plans under chapters 354B and 354D;
15.4 	(4) the higher education supplemental retirement plan under chapter 354C;
15.5 	(5) any alternative retirement benefit plan established under section 383B.914; and
15.6 	(6) the University of Minnesota faculty retirement plan. and supplemental plan; and
15.7 	(7) any other statewide plan required to be invested by the State Board of Investment 
15.8 	under section 11A.23.

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

15.10 	Sec. 2. Minnesota Statutes 2019 Supplement, section 356.219, subdivision 3, is amended 
15.11 	to read:
15.12 		Subd. 3.Content of reports. (a) The report required by subdivision 1 must include a 
15.13 	written statement of the investment policy. Following that initial report, subsequent reports 
15.14 	must include investment policy changes and the effective date of each policy change rather 
15.15 	than a complete statement of investment policy, unless the state auditor requests submission 
15.16 	of a complete current statement. The report must also include the information required by 
15.17 	the following paragraphs, as applicable.
15.18 	(b) If, after four years of reporting under this paragraph, the total portfolio time weighted 
15.19 	rate of return, net of all investment related costs and fees, provided by the public pension 
15.20 	plan differs by no more than 0.1 percent from the comparable return for the plan calculated 
15.21 	by the Office of the State Auditor, and if a public pension plan has a total market value of 
15.22 	$50,000,000 or more as of the beginning of the calendar year, and if the public pension 
15.23 	plan's annual audit is performed by the state auditor or by the legislative auditor,For public 
15.24 	pension plans not fully invested through the State Board of Investment with assets having 
15.25 	a market value of $50,000,000 or more as of the beginning of the calendar year, or that had 
15.26 	a market value of $50,000,000 or more in a prior calendar year, the report required by 
15.27 	subdivision 1 must include the market value of the total portfolio and the market value of 
15.28 	each asset class included in the pension fund as of the beginning of the calendar year and 
15.29 	as of the end of the calendar year. At the discretion of the state auditor, the public pension 
15.30 	plan may be required to submit the following:
16.1 	(1) the market value of the total portfolio and the market value of each investment 
16.2 	account, investment portfolio, or asset class included in the pension fund for each month, 
16.3 	and;
16.4 	(2) the amount and date of each injection and withdrawal to the total portfolio and to 
16.5 	each investment account, investment portfolio, or asset class. If the market value of a public 
16.6 	pension plan's fund drops below $50,000,000 in a subsequent year, it must continue reporting 
16.7 	under this paragraph for any subsequent year in which the public pension plan is not fully 
16.8 	invested as specified in subdivision 1, paragraph (b), except that if the public pension plan's 
16.9 	annual audit is not performed by the state auditor or legislative auditor, paragraph (c) applies.;
16.10 	(c) If paragraph (b) would apply if the annual audit were provided by the state auditor 
16.11 	or legislative auditor, the report required by subdivision 1 must include the market value 
16.12 	of the total portfolio and the market value of each asset class included in the pension fund 
16.13 	as of the beginning of the calendar year and for each month, and the amount and date of 
16.14 	each injection and withdrawal to the total portfolio and to each investment account, 
16.15 	investment portfolio, or asset class.
16.16 	(d) For public pension plans to which paragraph (b) or (c) applies, the report required 
16.17 	by subdivision 1 must also include(3) a calculation of the total time-weighted rate of return 
16.18 	available from index-matching investments, assuming the asset class performance targets 
16.19 	and target asset mix indicated in the written statement of investment policy. The provided 
16.20 	information must include;
16.21 	(4) a description of indices used in the analyses and an explanation of why those indices 
16.22 	are appropriate. This paragraph does not apply to any fully invested plan, as defined by 
16.23 	subdivision 1, paragraph (b). Reporting by the State Board of Investment under this paragraph 
16.24 	is limited to information on the Minnesota public pension plans required to be invested by 
16.25 	the State Board of Investment under section 11A.23.;
16.26 	(5) computed time-weighted rates of return; and
16.27 	(6) any other information required by the state auditor.
16.28 	(c) For public pension plans fully invested through the State Board of Investment with 
16.29 	assets having a market value of $50,000,000 or more as of the beginning of the calendar 
16.30 	year, or that had a market value of $50,000,000 or more in a prior calendar year, the report 
16.31 	required by subdivision 1 must be in the form required by the state auditor and include the 
16.32 	information needed by the state auditor to supplement the reporting available from the State 
16.33 	Board of Investment.
17.1 	(e) (d) If a public pension plan has assets with a total market value of less than 
17.2 	$50,000,000 as of the beginning of the calendar year and was never required to file under 
17.3 	paragraph (b) or (c), the report required by subdivision 1 must include the following:
17.4 	(1) unless paragraph (f) applies, the amount and date of each total portfolio injection 
17.5 	and withdrawal. In addition, the report must include; and
17.6 	(2) the market value of the total portfolio as of the beginning of the calendar year and 
17.7 	for each quarter.
17.8 	(f) Any public pension plan reporting under paragraph (b) or (c) must include computed 
17.9 	time-weighted rates of return with the report, in addition to all other required information, 
17.10 	as applicable. The chief administrative officer of the public pension plan submitting the 
17.11 	returns must certify, on a form prescribed by the state auditor, that the returns have been 
17.12 	computed by the pension plan's investment performance consultant or custodial bank. The 
17.13 	chief administrative officer of the public pension plan submitting the returns also must 
17.14 	certify that the returns are net of all costs and fees, including investment management fees, 
17.15 	and that the procedures used to compute the returns are consistent with Bank Administration 
17.16 	Institute studies of investment performance measurement and presentation standards set by 
17.17 	the CFA Institute. If the certifications required under this paragraph are not provided, the 
17.18 	reporting requirements of paragraph (c) apply.
17.19 	(g)(e) For public pension plans reporting under paragraph (e) (d), the public pension 
17.20 	plan must retain supporting information specifying the date and amount of each injection 
17.21 	and withdrawal to each investment account and investment portfolio. The public pension 
17.22 	plan must also retain the market value of each investment account and investment portfolio 
17.23 	at the beginning of the calendar year and for each quarter. Information that is required to 
17.24 	be collected and retained for any given year or years under this paragraph must be submitted 
17.25 	to the Office of the state auditor if the Office of the state auditor requests in writing that the 
17.26 	information be submitted by athe public pension plan or plans, or be submitted by the State 
17.27 	Board of Investment for any plan or plans for which the State Board of Investment is the 
17.28 	investment authority under this section. If the state auditor requests information under this 
17.29 	subdivision, and the publicpension plan fails to comply, the pension plan is subject to 
17.30 	penalties under subdivision 5, unless penalties are waived by the state auditor under that 
17.31 	subdivision.
17.32 	(f) A public pension plan reporting under paragraph (d) that is fully invested through 
17.33 	the State Board of Investment for the given calendar year is required to report the market 
18.1 	value of the total portfolio as of the beginning of the calendar year and for each quarter, but 
18.2 	need not report the amount and date of each total portfolio injection and withdrawal.

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

18.4 	Sec. 3. Minnesota Statutes 2018, section 356.219, subdivision 6, is amended to read:
18.5 		Subd. 6.Investment disclosure report. (a) The state auditor shall prepare an annual 
18.6 	report to the legislature on the investment performance of the various public pension plans 
18.7 	subject to this section. The content of the report is specified in paragraphs (b) to (f) (d).
18.8 	(b) For each public pension plan reporting under subdivision 3, paragraph (b), the state 
18.9 	auditor shall compute and report total portfolio and asset class time-weighted rates of return, 
18.10 	net of all investment-related costs and fees. If the state auditor has required a plan to submit 
18.11 	the market value of the total portfolio and the market value of each investment account, 
18.12 	investment portfolio, or asset class included in the pension fund for each month, and the 
18.13 	amount and date of each injection and withdrawal to the total portfolio and to each investment 
18.14 	account, investment portfolio, or asset class as prescribed under subdivision 3, paragraph 
18.15 	(b), the state auditor shall also compute and report total portfolio and asset class 
18.16 	time-weighted rates of return, net of all costs and fees. The report by the state auditor must 
18.17 	also include the information submitted by the pension plans under subdivision 3 or a summary 
18.18 	of that information.
18.19 	(c) For each public pension plan reporting under subdivision 3, paragraph (c), the state 
18.20 	auditor shall compute and report total portfolio and asset class time-weighted rates of return, 
18.21 	net of all costs and fees.
18.22 	(d) (c) For each public pension plan reporting under subdivision 3, paragraph (e) (d), 
18.23 	the state auditor shall compute and report total portfolio time-weighted rates of return, net 
18.24 	of all costs and fees. If the state auditor has requested data for a plan under subdivision 3, 
18.25 	paragraph (g), the state auditor may also compute and report asset class time-weighted rates 
18.26 	of return, net of all costs and fees.
18.27 	(e) The report by the state auditor must include the information submitted by the pension 
18.28 	plans under subdivision 3, paragraph (d), or a synopsis of that information.
18.29 	(f)(d) The report by the state auditor may also include a presentation of multiyear 
18.30 	performance, information collected under subdivision 4, and any other information or 
18.31 	analysis deemed appropriate by the state auditor.

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

19.1 	Sec. 4. Minnesota Statutes 2018, section 356.219, subdivision 7, is amended to read:
19.2 		Subd. 7.Expense of report. All administrative expenses incurred relating to the 
19.3 	investment report by the state auditor described in subdivision 6 must be borne by the Office 
19.4 	of the state auditor and may not be charged back to the entities described in subdivisions 1 
19.5 	or 4.

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

19.7 	Sec. 5. Minnesota Statutes 2019 Supplement, section 356.219, subdivision 8, is amended 
19.8 	to read:
19.9 		Subd. 8.Timing of reports. (a) For the Bloomington Fire Department Relief Association 
19.10 	and the volunteer firefighterfirefighters relief associations, the information required under 
19.11 	this section must be submitted by the due date for reports required under section 424A.014, 
19.12 	subdivision 1 or 2, as applicable. If a relief association satisfies the definition of a fully 
19.13 	invested plan under subdivision 1, paragraph (b), for the calendar year covered by the report 
19.14 	required under section 424A.014, subdivision 1 or 2, as applicable, the chief administrative 
19.15 	officer of the covered pension plan shall certify that compliance on a form prescribed by 
19.16 	the state auditor. The state auditor shall transmit annually to the State Board of Investment 
19.17 	a list or lists of covered pension plans which submitted certifications in order to facilitate 
19.18 	reporting by the State Board of Investment under paragraph (c).
19.19 	(b) For the St. Paul Teachers Retirement Fund Association and the University of 
19.20 	Minnesota faculty supplemental retirement plan, the information required under this section 
19.21 	must be submitted to the state auditor by June 1 of each year.
19.22 	(c) The State Board of Investment, on behalf ofAny public pension funds specified in 
19.23 	subdivision 1,plan required to submit information under this section that is not identified 
19.24 	in paragraph (c), shall report(a) or (b) must submit the information required under this 
19.25 	sectionto the state auditor by SeptemberJune 1 of each year.

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

19.27 	ARTICLE 5
19.28 	MINNESOTA STATE RETIREMENT SYSTEM ADMINISTRATIVE PROVISIONS

19.29 	Section 1. Minnesota Statutes 2018, section 352.01, subdivision 26, is amended to read:
19.30 		Subd. 26.Dependent child. "Dependent child" means an individual who is a biological 
19.31 	or adopted child of a deceased employee who, has not reached the age of 20, and is dependent 
19.32 	upon the employee for more than one-half of the child's support at the time of the employee's 
20.1 	death. It also means a child of the member conceived during the member's lifetime and born 
20.2 	after the member's death, unless a parent-child relationship does not exist under section 
20.3 	524.2-120, subdivision 10.

20.4 	Sec. 2. Minnesota Statutes 2018, section 352.04, subdivision 4, is amended to read:
20.5 		Subd. 4.Payroll deductions. The head of Each departmentemploying entity shall have 
20.6 	employee contributions deducted from the salary of each employee covered by the system 
20.7 	on every payroll abstract and shall approve one voucher payable to the commissioner of 
20.8 	management and budget for the aggregate amount deducted on the payroll abstract. 
20.9 	Deductions from salaries of employees paid directdirectly by any department, institution, 
20.10 	or agency of the stateemploying entity must be made by the officer or employee authorized 
20.11 	by law to pay the salaries. The head of any department or agencyAny employing entity 
20.12 	having authority to appoint any employee who receives fees as compensation or who receives 
20.13 	compensation on federal payrolls shall collect as the required employee contribution the 
20.14 	applicable amounts required in subdivision 2. Deductions from salary and amounts collected 
20.15 	must be remitted to the director with a statement showing the amount of earnings or fees, 
20.16 	and in the case of fees, the number of transactions, and the amount of each of the deductions 
20.17 	and collections, and the names of the employees on whose account they have been made.

20.18 	Sec. 3. Minnesota Statutes 2018, section 352.04, subdivision 8, is amended to read:
20.19 		Subd. 8.DepartmentEmploying entity required to pay omitted salary deductions. (a) 
20.20 	If a departmentan employing entity fails to take deductions past due for a period of 60 days 
20.21 	or less from an employee's salary as provided in this section, those deductions must be taken 
20.22 	on later payroll abstracts.
20.23 	(b) If a department an employing entity fails to take deductions past due for a period in 
20.24 	excess of 60 days from an employee's salary as provided in this section, the department
20.25 	employing entity, and not the employee, must pay on later payroll abstracts the employee 
20.26 	and employer contributions and interest at the applicable annual rate or rates specified in 
20.27 	section 356.59, subdivision 2, compounded annually, from the date the employee and 
20.28 	employer contributions should have been deducted to the date payment of the total amount 
20.29 	due is paid by the department employing entity.
20.30 	(c) If a department an employing entity fails to take deductions past due for a period of 
20.31 	60 days or less and the employee is no longer in state service so that the required deductions 
20.32 	cannot be taken from the salary of the employee, the departmentemploying entity must 
20.33 	nevertheless pay the required employer contributions. If any departmentemploying entity 
21.1 	fails to take deductions past due for a period in excess of 60 days and the employee is no 
21.2 	longer in state service, the omitted contributions must be recovered under paragraph (b).
21.3 	(d) If an employee from whose salary required deductions were past due for a period of 
21.4 	60 days or less leaves state service before the payment of the omitted deductions and 
21.5 	subsequently returns to state service, the unpaid amount is considered the equivalent of a 
21.6 	refund. The employee accrues no right by reason of the unpaid amount, except that the 
21.7 	employee may pay the amount of omitted deductions as provided in section 352.23.

21.8 	Sec. 4. Minnesota Statutes 2019 Supplement, section 352.04, subdivision 9, is amended 
21.9 	to read:
21.10 		Subd. 9.Erroneous deductions, canceled payments. (a) Deductions taken from the 
21.11 	salary of an employee for the retirement fund in excess of required amounts must, upon 
21.12 	discovery and verification by the department employing entity making the deduction, be 
21.13 	refunded to the employee. Employer contributions made in excess of required amounts must 
21.14 	be refunded or credited to the employing entity that made the contribution.
21.15 	(b) If a deduction for the retirement fund is taken from a salary payment, and the payment 
21.16 	is canceled or the amount of the payment returned to the funds of the department employing 
21.17 	entity making the payment, the sum deducted, or the part of it required to adjust the 
21.18 	deductions, must be refunded or credited to the department or institutionemploying entity 
21.19 	if the departmentemploying entity applies for the refund on a form furnished by the director.
21.20 	The department's payments must likewise be refunded to the department.
21.21 	(c) If erroneous employee deductions and employer contributions are caused by an error 
21.22 	in plan coverage involving the plan and any other plans specified in section 356.99, that 
21.23 	section applies. If the employee should have been covered by the plan governed by chapter 
21.24 	352D, 353D, 354B, or 354D, the employee deductions and employer contributions taken 
21.25 	in error must be directly transferred to the applicable employee's account in the correct 
21.26 	retirement plan, with interest at the applicable monthly rate or rates specified in section 
21.27 	356.59, subdivision 2, compounded annually, from the first day of the month following the 
21.28 	month in which coverage should have commenced in the correct defined contribution plan 
21.29 	until the end of the month in which the transfer occurs.

21.30 	Sec. 5. Minnesota Statutes 2018, section 352.04, is amended by adding a subdivision to 
21.31 	read:
21.32 		Subd. 13."Employing entity" defined. In this section, "employing entity" means the 
21.33 	entity that pays a state employee's salary and remits retirement contributions.

22.1 	Sec. 6. Minnesota Statutes 2019 Supplement, section 352.113, subdivision 2, is amended 
22.2 	to read:
22.3 		Subd. 2.Application; accrual of benefits. (a) An employee making claim for a total 
22.4 	and permanent disability benefit, or someone acting on behalf of the employee upon proof 
22.5 	of authority satisfactory to the director, shall file a written application for benefits in the an
22.6 	office of the system on or before the deadline specified in subdivision 4, paragraph (g) or 
22.7 	with a person authorized by the director.
22.8 	(b) The application must be in a form and manner prescribed by the executive director
22.9 	and include the medical reports required by subdivision 4, paragraph (b). The completed 
22.10 	application form and supporting documents must be received in an office of the system or 
22.11 	by an authorized person before the expiration of the period specified in subdivision 4, 
22.12 	paragraph (g). In this paragraph, "supporting documents" means:
22.13 	(1) two medical reports as required by subdivision 4, paragraph (b); and
22.14 	(2) a written certification by the employing entity as required by subdivision 4, paragraph 
22.15 	(e).
22.16 	Supporting documents are not required to be original documents except as determined 
22.17 	by the director.
22.18 	(c) The benefit shall begin to accrue the day following the start of disability or the day 
22.19 	following the last day paid, whichever is later, but not earlier than 180 days before the date 
22.20 	the application isand supporting documents are filed in an office of the system or with an 
22.21 	authorized person.

22.22 	Sec. 7. Minnesota Statutes 2018, section 352.113, subdivision 4, is amended to read:
22.23 		Subd. 4.Medical or psychological examinations; authorization for payment of 
22.24 	benefit. (a) Any physician, psychologist, chiropractor, physician assistant, podiatrist, or 
22.25 	nurse practitioner providing any service specified in this section must be licensed.
22.26 	(b) An applicant shall provide a detailed report signed by a physician, and at least one 
22.27 	additional report signed by a physician, psychologist, chiropractor, physician assistant,
22.28 	podiatrist, or nurse practitioner with evidence to support an application for total and 
22.29 	permanent disability. The reports must include an expert opinion regarding whether the 
22.30 	employee is permanently and totally disabled within the meaning of section 352.01, 
22.31 	subdivision 17, and that the disability arose before the employee was placed on any paid or 
22.32 	unpaid leave of absence or terminated public service.
23.1 	(c) If there is medical evidence that supports the expectation that at some point the person 
23.2 	applying for the disability benefit will no longer be disabled, the decision granting the 
23.3 	disability benefit may provide for a termination date upon which the total and permanent 
23.4 	disability can be expected to no longer exist. When a termination date is part of the decision 
23.5 	granting benefits, prior to the benefit termination the executive director shall review any 
23.6 	evidence provided by the disabled employee to show that the disabling condition for which 
23.7 	benefits were initially granted continues. If the benefits cease, the disabled employee may 
23.8 	follow the appeal procedures described in section 356.96 or may reapply for disability 
23.9 	benefits using the process described in this subdivision.
23.10 	(d) Any claim to disability must be supported by a report from the employer indicating 
23.11 	that there is no available work that the employee can perform with the disabling condition 
23.12 	and that all reasonable accommodations have been considered. Upon request of the executive 
23.13 	director, an employer shall provide evidence of the steps the employer has taken to attempt 
23.14 	to provide reasonable accommodations and continued employment to the claimant.
23.15 	(e) The director shall also obtain written certification from the employer stating whether 
23.16 	the employment has ceased or whether the employee is on sick leave of absence because 
23.17 	of a disability that will prevent further service to the employer and that the employee is not 
23.18 	entitled to compensation from the employer.
23.19 	(f) The medical adviser shall consider the reports of the physician, psychologist, 
23.20 	chiropractor, physician assistant, podiatrist, or nurse practitioner and any other evidence 
23.21 	supplied by the employee or other interested parties. If the medical adviser finds the employee 
23.22 	totally and permanently disabled, the adviser shall make appropriate recommendation to 
23.23 	the director in writing together with the date from which the employee has been totally 
23.24 	disabled. The director shall then determine if the disability occurred while still in the 
23.25 	employment of the state and constitutes a total and permanent disability as defined in section 
23.26 	352.01, subdivision 17.
23.27 	(g) A terminated employee may apply for a disability benefit within 18 months of 
23.28 	termination as long as the disability occurred while in the employment of the state. The fact 
23.29 	that an employee is placed on leave of absence without compensation because of disability 
23.30 	does not bar that employee from receiving a disability benefit.
23.31 	(h) Upon appeal, the board of directors may extend the disability benefit application 
23.32 	deadline in paragraph (g) by an additional 18 months if the terminated employee is 
23.33 	determined by the board of directors to have a cognitive impairment that made it unlikely 
24.1 	that the terminated employee understood that there was an application deadline or that the 
24.2 	terminated employee was able to meet the application deadline.
24.3 	(i) Unless the payment of a disability benefit has terminated because the employee is 
24.4 	no longer totally disabled, or because the employee has reached normal retirement age as 
24.5 	provided in this section, the disability benefit must cease with the last payment received by 
24.6 	the disabled employee or which had accrued during the lifetime of the employee unless 
24.7 	there is a spouse surviving. In that event, the surviving spouse is entitled to the disability 
24.8 	benefit for the calendar month in which the disabled employee died.

24.9 	Sec. 8. Minnesota Statutes 2019 Supplement, section 352.23, is amended to read:
24.10 	352.23 TERMINATION OF RIGHTS; REPAYMENT OF REFUND.
24.11 	(a) When any employee accepts a refund as provided in section 352.22, all existing 
24.12 	allowable service credits and all rights and benefits to which the employee was entitled 
24.13 	before accepting the refund terminate.
24.14 	(b) Terminated service credits and rights must not again be restored until the former 
24.15 	employee acquires at least six months of allowable service credit after taking the last refund 
24.16 	and repays all refunds previously taken from the retirement fund with interest as provided 
24.17 	in paragraph (d). If an employee repays only part of a refund or repays a refund in partial 
24.18 	payments as permitted under paragraph (d), service credit will be restored in accordance 
24.19 	with section 356.44. An employee will not be considered as entitled to any other benefit, 
24.20 	including benefits for which the employee may be eligible because of the employee's original 
24.21 	hire date into public employment, until full repayment of all refunds has been made.
24.22 	(c) Repayment of refunds entitles the employee only to credit for service covered by (1) 
24.23 	salary deductions; (2) payments previously made in lieu of salary deductions as permitted 
24.24 	under law in effect when the payment in lieu of deductions was made; (3) payments made 
24.25 	to obtain credit for service as permitted by laws in effect when payment was made; and (4) 
24.26 	allowable service previously credited while receiving temporary workers' compensation as 
24.27 	provided in section 352.01, subdivision 11, paragraph (a), clause (3).
24.28 	(d) Payments under this section for repayment of refunds are to be paid with interest at 
24.29 	the applicable annual rate or rates specified in section 356.59, subdivision 2, compounded 
24.30 	annually, from the date the refund was taken until the date the refund is repaid. Repayment 
24.31 	may be made in partial payments consistent with section 356.44 during employment or in 
24.32 	a lump sum during employment or up to six months after termination from service.

25.1 	Sec. 9. Minnesota Statutes 2018, section 352.95, subdivision 3, is amended to read:
25.2 		Subd. 3.Applying for benefits; accrual. No application for disability benefits may be 
25.3 	made until after the last day physically on the job. The disability benefit begins to accrue 
25.4 	the day following the last day for which the employee is paid sick leave or annual leave, 
25.5 	but not earlier than 180 days before the date the application is filed. A terminated employee 
25.6 	must file a written application within the time frame specified under section 352.113, 
25.7 	subdivision 4, paragraph (g) in an office of the system or with a person authorized by the 
25.8 	executive director. Applications must comply with section 352.113, subdivision 2, paragraph 
25.9 	(b).

25.10 	Sec. 10. Minnesota Statutes 2018, section 352B.011, subdivision 6, is amended to read:
25.11 		Subd. 6.Dependent child. "Dependent child" means an individual who is a natural or 
25.12 	adopted unmarried child of a deceased member and is under the age of 18 years, including 
25.13 	any child of the member conceived during the lifetime of the member and born after the 
25.14 	death of the member unless a parent-child relationship does not exist under section 524-2.120, 
25.15 	subdivision 10.

25.16 	Sec. 11. Minnesota Statutes 2018, section 352B.011, subdivision 10, is amended to read:
25.17 		Subd. 10.Member. "Member" means:
25.18 	(1) a State Patrol member currently employed under section 299D.03 by the state, who 
25.19 	is a peace officer under section 626.84, and whose salary or compensation is paid out of 
25.20 	state funds;
25.21 	(2) a conservation officer employed under section 97A.201, currently employed by the 
25.22 	state, whose salary or compensation is paid out of state funds;
25.23 	(3) a crime bureau officer who was employed by the crime bureau and was a member 
25.24 	of the Highway Patrolmen's retirement fund on July 1, 1978, whether or not that person has 
25.25 	the power of arrest by warrant after that date, or who is employed as police personnel, with 
25.26 	powers of arrest by warrant under Minnesota Statutes 2009, section 299C.04, and who is 
25.27 	currently employed by the state, and whose salary or compensation is paid out of state funds;
25.28 	(4) a person who is employed by the state in the Department of Public Safety in a data 
25.29 	processing management position with salary or compensation paid from state funds, who 
25.30 	was a crime bureau officer covered by the State Patrol retirement plan on August 15, 1987, 
25.31 	and who was initially hired in the data processing management position within the department 
25.32 	during September 1987, or January 1988, with membership continuing for the duration of 
26.1 	the person's employment in that position, whether or not the person has the power of arrest 
26.2 	by warrant after August 15, 1987;
26.3 	(5)(4) a public safety employee who is a peace officer under section 626.84, subdivision 
26.4 	1, paragraph (c), and who is employed by the Division of Alcohol and Gambling Enforcement 
26.5 	under section 299L.01;
26.6 	(6)(5) a Fugitive Apprehension Unit officer after October 31, 2000, who is employed 
26.7 	by the Office of Special Investigations of the Department of Corrections and who is a peace 
26.8 	officer under section 626.84;
26.9 	(7)(6) an employee of the Department of Commerce defined as a peace officer in section 
26.10 	626.84, subdivision 1, paragraph (c), who is employed by the Commerce Fraud Bureau 
26.11 	under section 45.0135 after January 1, 2005, and who has not attained the mandatory 
26.12 	retirement age specified in section 43A.34, subdivision 4; and
26.13 	(8)(7) an employee of the Department of Public Safety, who is a licensed peace officer 
26.14 	under section 626.84, subdivision 1, paragraph (c), and is employed as the statewide 
26.15 	coordinator of the Violent Crime Coordinating Council.

26.16 	Sec. 12. Minnesota Statutes 2018, section 352B.10, subdivision 2a, is amended to read:
26.17 		Subd. 2a.Applying for benefits; accrual. No application for disability benefits shall 
26.18 	be made until after the last day physically on the job. The disability benefit begins to accrue 
26.19 	the day following the last day for which the employee is paid sick leave or annual leave but 
26.20 	not earlier than 180 days before the date the application is filed. A member who is terminated 
26.21 	must file a written application within the time frame specified under section 352.113, 
26.22 	subdivision 4, paragraph (g) in an office of the system or with a person authorized by the 
26.23 	executive director. Applications must comply with section 352.113, subdivision 2, paragraph 
26.24 	(b).

26.25 	Sec. 13. Minnesota Statutes 2018, section 356.24, subdivision 1, is amended to read:
26.26 		Subdivision 1.Restriction; exceptions.  It is unlawful for a school district or other 
26.27 	governmental subdivision or state agency to levy taxes for or to contribute public funds to 
26.28 	a supplemental pension or deferred compensation plan that is established, maintained, and 
26.29 	operated in addition to a primary pension program for the benefit of the governmental 
26.30 	subdivision employees other than:
26.31 	(1) to a supplemental pension plan that was established, maintained, and operated before 
26.32 	May 6, 1971;
27.1 	(2) to a plan that provides solely for group health, hospital, disability, or death benefits;
27.2 	(3) to the individual retirement account plan established by chapter 354B;
27.3 	(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or 
27.4 	terminating employee;
27.5 	(5) for employees other than personnel employed by the Board of Trustees of the 
27.6 	Minnesota State Colleges and Universities and covered under the Higher Education 
27.7 	Supplemental Retirement Plan under chapter 354C, but including city managers covered 
27.8 	by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph 
27.9 	(a), or by the defined contribution plan of the Public Employees Retirement Association 
27.10 	under section 353.028, subdivision 3, paragraph (b), if the supplemental plan coverage is 
27.11 	provided for in a personnel policy of the public employer or in the collective bargaining 
27.12 	agreement between the public employer and the exclusive representative of public employees 
27.13 	in an appropriate unit or in the individual employment contract between a city and a city 
27.14 	manager, and if for each available investment all fees and historic rates of return for the 
27.15 	prior one-, three-, five-, and ten-year periods, or since inception, are disclosed in an easily 
27.16 	comprehended document not to exceed two pages, in an amount matching employee 
27.17 	contributions on a dollar for dollar basis, but not to exceed an employer contribution of 
27.18 	one-half of the available elective deferral permitted per year per employee, under the Internal 
27.19 	Revenue Code:
27.20 	(i) to the state of Minnesota deferred compensation plan under section 352.965;
27.21 	(ii) in payment of the applicable portion of the contribution made to any investment 
27.22 	eligible under section 403(b) of the Internal Revenue Code, if the employing unit has 
27.23 	complied with any applicable pension plan provisions of the Internal Revenue Code with 
27.24 	respect to the tax-sheltered annuity program during the preceding calendar year; or
27.25 	(iii) any other deferred compensation plan offered by the employer under section 457 
27.26 	of the Internal Revenue Code;
27.27 	(5) to a deferred compensation plan defined in subdivision 3;
27.28 	(6) for personnel employed by the Board of Trustees of the Minnesota State Colleges 
27.29 	and Universities and not covered by clause (5), to the supplemental retirement plan under 
27.30 	chapter 354C, if the supplemental plan coverage is provided for in a personnel policy or in 
27.31 	the collective bargaining agreement of the public employer with the exclusive representative 
27.32 	of the covered employees in an appropriate unit, in an amount matching employee 
28.1 	contributions on a dollar for dollar basis, but not to exceed an employer contribution of 
28.2 	$2,700 a year for each employee;
28.3 	(7) to a supplemental plan or to a governmental trust to save for postretirement health 
28.4 	care expenses qualified for tax-preferred treatment under the Internal Revenue Code, if the 
28.5 	supplemental plan coverage is provided for in a personnel policy or in the collective 
28.6 	bargaining agreement of a public employer with the exclusive representative of the covered 
28.7 	employees in an appropriate unit;
28.8 	(8) to the laborers national industrial pension fund or to a laborers local pension fund 
28.9 	for the employees of a governmental subdivision who are covered by a collective bargaining 
28.10 	agreement that provides for coverage by that fund and that sets forth a fund contribution 
28.11 	rate, but not to exceed an employer contribution of $7,000 per year per employee;
28.12 	(9) to the plumbers and pipefitters national pension fund or to a plumbers and pipefitters 
28.13 	local pension fund for the employees of a governmental subdivision who are covered by a 
28.14 	collective bargaining agreement that provides for coverage by that fund and that sets forth 
28.15 	a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per 
28.16 	employee;
28.17 	(10) to the international union of operating engineers pension fund for the employees 
28.18 	of a governmental subdivision who are covered by a collective bargaining agreement that 
28.19 	provides for coverage by that fund and that sets forth a fund contribution rate, but not to 
28.20 	exceed an employer contribution of $5,000 per year per employee;
28.21 	(11) to a supplemental plan organized and operated under the federal Internal Revenue 
28.22 	Code, as amended, that is wholly and solely funded by the employee's accumulated sick 
28.23 	leave, accumulated vacation leave, and accumulated severance pay;
28.24 	(12)(11) to the International Association of Machinists national pension fund for the 
28.25 	employees of a governmental subdivision who are covered by a collective bargaining 
28.26 	agreement that provides for coverage by that fund and that sets forth a fund contribution 
28.27 	rate, but not to exceed an employer contribution of $5,000 per year per employee;
28.28 	(13)(12) for employees of United Hospital District, Blue Earth, to the state of Minnesota 
28.29 	deferred compensation program, if the employee makes a contribution, in an amount that 
28.30 	does not exceed the total percentage of covered salary under section 353.27, subdivisions 
28.31 	3 and 3a;
28.32 	(14)(13) to the alternative retirement plans established by the Hennepin County Medical 
28.33 	Center under section 383B.914, subdivision 5; or
29.1 	(15)(14) to the International Brotherhood of Teamsters Central States pension plan for 
29.2 	fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who 
29.3 	are members of the International Brotherhood of Teamsters Local 638 by virtue of that 
29.4 	employment.

29.5 	Sec. 14. Minnesota Statutes 2018, section 356.24, is amended by adding a subdivision to 
29.6 	read:
29.7 		Subd. 3.Deferred compensation plan. (a) As used in this section, a "deferred 
29.8 	compensation plan" means a plan that satisfies the requirements in this subdivision.
29.9 	(b) The plan is:
29.10 	(1) the Minnesota deferred compensation plan under section 352.965;
29.11 	(2) a tax-sheltered annuity program under section 403(b) of the federal Internal Revenue 
29.12 	Code; or
29.13 	(3) a deferred compensation plan under section 457(b) of the federal Internal Revenue 
29.14 	Code.
29.15 	(c) The plan administrator or custodian discloses at least annually to participants (1) all 
29.16 	fees, including administrative, maintenance, and investment fees, that impact the rate of 
29.17 	return on each investment fund available under the plan, and (2) for each investment fund, 
29.18 	the rates of return for the prior one-, three-, five-, and ten-year periods or for the life of the 
29.19 	fund, if shorter, in an easily understandable document. The plan administrator or custodian 
29.20 	must file a copy of this document with the executive director of the Legislative Commission 
29.21 	on Pensions and Retirement within 30 days of the end of each fiscal year of the plan.
29.22 	(d) Enrollment in the plan is provided for in:
29.23 	(1) a personnel policy of the public employer;
29.24 	(2) a collective bargaining agreement between the public employer and the exclusive 
29.25 	representative of public employees in an appropriate unit; or
29.26 	(3) an individual employment contract between a city and a city manager.
29.27 	(e) The plan covers employees of a school district, state agency, or other governmental 
29.28 	subdivision. The plan may cover city managers covered by an alternative retirement 
29.29 	arrangement under section 353.028, subdivision 3, paragraph (a) or (b), but must not cover 
29.30 	employees of the Board of Trustees of Minnesota State who are covered by the Higher 
29.31 	Education Supplemental Retirement Plan under chapter 354C.
30.1 	(f) Public funds are contributed to the plan only in an amount that matches employee 
30.2 	contributions on a dollar for dollar basis, but not to exceed the lesser of (1) the maximum 
30.3 	authorized under the policy described in paragraph (d) that provides for enrollment in the 
30.4 	plan or program, or (2) one-half of the annual limit on elective deferrals under section 402(g) 
30.5 	of the federal Internal Revenue Code.
30.6 	(g) Contributions to the plan may include contributions deducted from an employee's 
30.7 	sick leave, accumulated vacation leave, or accumulated severance pay.

30.8 	Sec. 15. Minnesota Statutes 2018, section 490.121, subdivision 7c, is amended to read:
30.9 		Subd. 7c.Dependent surviving child. "Dependent surviving child" means anyan 
30.10 	individual who is an unmarried natural or adopted child of a deceased judge who, has not 
30.11 	reached the age of 18 years, or, having reached the age of 18, is under age 22 and who is a 
30.12 	full-time student throughout the normal school year, is unmarried, and iswas actually 
30.13 	dependent for more than one-half of the child's support upon the judge for a period of at 
30.14 	least 90 days immediately before the judge's death. It also includesmeans any natural child 
30.15 	of the judge who was born after the death of the judge unless a parent-child relationship 
30.16 	does not exist under section 524.2-120, subdivision 10.

30.17 	Sec. 16. Minnesota Statutes 2018, section 490.123, subdivision 5, is amended to read:
30.18 		Subd. 5.Direct state aid. (a) The state shall pay $6,000,000 annually to the judges' 
30.19 	retirement fund. The aid is payable each OctoberJuly 1. The commissioner of management 
30.20 	and budget shall pay the aid specified in this subdivision. The amount required is annually 
30.21 	appropriated from the general fund to the commissioner of management and budget judges' 
30.22 	retirement fund.
30.23 	(b) The aid under paragraph (a) continues until the earlier of:
30.24 	(1) the first day of the fiscal year following the fiscal year in which the actuarial value 
30.25 	of assets of the fund equals or exceeds 100 percent of the actuarial accrued liabilities as 
30.26 	reported by the actuary retained under section 356.214 in the annual actuarial valuation 
30.27 	prepared under section 356.215; or
30.28 	(2) July 1, 2048.

30.29 	Sec. 17. Minnesota Statutes 2018, section 490.124, subdivision 1, is amended to read:
30.30 		Subdivision 1. Retirement annuity. (a) Except as qualified hereinafter from and after 
30.31 	the mandatory retirement date, the normal retirement date, the early retirement date, or one 
31.1 	year from the disability retirement date, as the case may be, a retiring judge is eligible to 
31.2 	receive a retirement annuity from the judges' retirement fund.
31.3 	(b) For a tier I program judge, the retirement annuity is an amount equal to:
31.4 	(1) 2.7 percent multiplied by the judge's final average compensation with that result then 
31.5 	multiplied by the number of years and fractions of years of allowable service rendered 
31.6 	before July 1, 1980; plus
31.7 	(2) 3.2 percent multiplied by the judge's final average compensation with that result then 
31.8 	multiplied by the number of years and fractions of years of allowable service rendered after 
31.9 	June 30, 1980.
31.10 	(c) For a tier II program judge who was first appointed or elected as a judge before July 
31.11 	1, 2013, the retirement annuity is an amount equal to:
31.12 	(1) 3.2 percent multiplied by the judge's final average compensation with that result then 
31.13 	multiplied by the number of years and fractions of years of allowable service rendered 
31.14 	before January 1, 2014; plus
31.15 	(2) 2.5 percent multiplied by the judge's final average compensation with that result then 
31.16 	multiplied by the number of years and fractions of years of allowable service rendered after 
31.17 	December 31, 2013.
31.18 	(d) For a tier II program judge who was first appointed or elected as a judge after June 
31.19 	30, 2013, the retirement annuity is an amount equal to the2.5 percent specified in section 
31.20 	356.315, subdivision 8a, multiplied by the judge's final average compensation with that 
31.21 	result then multiplied by the number of years and fractions of years of allowable service.
31.22 	(e) For a judge in the tier I program, service that exceeds the service credit limit in section 
31.23 	490.121, subdivision 22, must be excluded in calculating the retirement annuity, but the 
31.24 	compensation earned by the judge during this period of judicial service must be used in 
31.25 	determining a judge's final average compensation and calculating the retirement annuity.

31.26 	Sec. 18. REPEALER.
 31.27 	Minnesota Statutes 2018, section 356.44, is repealed.

31.28 	Sec. 19. EFFECTIVE DATE.
 31.29 	Sections 1 to 18 are effective July 1, 2020.

32.1 	ARTICLE 6
32.2 	PUBLIC EMPLOYEES RETIREMENT ASSOCIATION 
32.3 	ADMINISTRATIVE PROVISIONS

32.4 	Section 1. Minnesota Statutes 2019 Supplement, section 353.01, subdivision 2b, is amended 
32.5 	to read:
32.6 		Subd. 2b.Excluded employees. (a) The following public employees are not eligible to 
32.7 	participate as members of the association with retirement coverage by the general employees 
32.8 	retirement plan, the local government correctional employees retirement plan under chapter 
32.9 	353E, or the public employees police and fire retirement plan:
32.10 	(1) persons whose annual salary from one governmental subdivision never exceeds an 
32.11 	amount, stipulated in writing in advance, of $5,100 if the person is not a school district 
32.12 	employee or $3,800 if the person is a school year employee. If annual compensation from 
32.13 	one governmental subdivision to an employee exceeds the stipulated amount in a calendar 
32.14 	year or a school year, whichever applies, after being stipulated in advance not to exceed the 
32.15 	applicable amount, the stipulation is no longer valid and contributions must be made on 
32.16 	behalf of the employee under section 353.27, subdivision 12, from the first month in which 
32.17 	the employee received salary exceeding $425 in a month;
32.18 	(2) public officers who are elected to a governing body, city mayors, or persons who 
32.19 	are appointed to fill a vacancy in an elected office of a governing body, whose term of office 
32.20 	commences on or after July 1, 2002, for the service to be rendered in that elected position;
32.21 	(3) election judges and persons employed solely to administer elections;
32.22 	(4) patient and inmate personnel who perform services for a governmental subdivision;
32.23 	(5) except as otherwise specified in subdivision 12a, employees who are employed solely 
32.24 	in a temporary position as defined under subdivision 12a, and employees who resign from 
32.25 	a nontemporary position and accept a temporary position within 30 days of that resignation 
32.26 	in the same governmental subdivision;
32.27 	(6) employees who are employed by reason of work emergency caused by fire, flood, 
32.28 	storm, or similar disaster, but if the person becomes a probationary or provisional employee 
32.29 	within the same pay period, other than on a temporary basis, the person is a "public 
32.30 	employee" retroactively to the beginning of the pay period;
32.31 	(7) employees who by virtue of their employment in one governmental subdivision are 
32.32 	required by law to be a member of and to contribute to any of the plans or funds administered 
32.33 	by the Minnesota State Retirement System, the Teachers Retirement Association, or the St. 
33.1 	Paul Teachers Retirement Fund Association, but this exclusion must not be construed to 
33.2 	prevent a person from being a member of and contributing to the Public Employees 
33.3 	Retirement Association and also belonging to and contributing to another public pension 
33.4 	plan or fund for other service occurring during the same period of time, and a person who 
33.5 	meets the definition of "public employee" in subdivision 2 by virtue of other service occurring 
33.6 	during the same period of time becomes a member of the association unless contributions 
33.7 	are made to another public retirement plan on the salary based on the other service or to the 
33.8 	Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
33.9 	(8) persons who are members of a religious order and are excluded from coverage under 
33.10 	the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance 
33.11 	of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if 
33.12 	no irrevocable election of coverage has been made under section 3121(r) of the Internal 
33.13 	Revenue Code of 1954, as amended;
33.14 	(9) persons who are:
33.15 	(i) employed by a governmental subdivision who have not reached the age of 23 and 
33.16 	who are enrolled on a full-time basis to attend or are attending classes on a full-time basis 
33.17 	at an accredited school, college, or university in an undergraduate, graduate, or 
33.18 	professional-technical program, or at a public or charter high school;
33.19 	(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist 
33.20 	interns and are serving in a degree or residency program in a public hospital or in a public 
33.21 	clinic; or
33.22 	(iii) students who are serving for a period not to exceed five years in an internship or a 
33.23 	residency program that is sponsored by a governmental subdivision, including an accredited 
33.24 	educational institution;
33.25 	(10) persons who hold a part-time adult supplementary technical college license who 
33.26 	render part-time teaching service in a technical college;
33.27 	(11) for the first three years of employment, foreign citizens who are employed by a 
33.28 	governmental subdivision, except that the following foreign citizens are included employees 
33.29 	under subdivision 2a:
33.30 	(i) employees of Hennepin County or Hennepin Healthcare System, Inc.;
33.31 	(ii) employees legally authorized to work in the United States for three years or more; 
33.32 	and
33.33 	(iii) employees otherwise required to participate under federal law;
34.1 	(12) public hospital employees who elected not to participate as members of the 
34.2 	association before 1972 and who did not elect to participate from July 1, 1988, to October 
34.3 	1, 1988;
34.4 	(13) except as provided in section 353.86, volunteer ambulance service personnel, as 
34.5 	defined in subdivision 35, but persons who serve as volunteer ambulance service personnel 
34.6 	may still qualify as public employees under subdivision 2 and may be members of the Public 
34.7 	Employees Retirement Association and participants in the general employees retirement 
34.8 	plan or the public employees police and fire plan, whichever applies, on the basis of 
34.9 	compensation received from public employment service other than service as volunteer 
34.10 	ambulance service personnel;
34.11 	(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 
34.12 	36, engaging in activities undertaken as part of volunteer firefighter duties, but a person 
34.13 	who is a volunteer firefighter may still qualify as a public employee under subdivision 2 
34.14 	and may be a member of the Public Employees Retirement Association and a participant 
34.15 	in the general employees retirement plan or the public employees police and fire plan, 
34.16 	whichever applies, on the basis of compensation received from public employment activities 
34.17 	other than those as a volunteer firefighter;
34.18 	(15) pipefitters and associated trades personnel employed by Independent School District 
34.19 	No. 625, St. Paul, with coverage under a collective bargaining agreement by the Pipefitters 
34.20 	Local 455 pension plan who were either first employed after May 1, 1997, or, if first 
34.21 	employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 
34.22 	2, section 12;
34.23 	(16) electrical workers, plumbers, carpenters, and associated trades personnel who are 
34.24 	employed by Independent School District No. 625, St. Paul, or the city of St. Paul, who 
34.25 	have retirement coverage under a collective bargaining agreement by the Electrical Workers 
34.26 	Local 110 pension plan, the United Association Plumbers Local 34 pension plan, or the 
34.27 	pension plan applicable to Carpenters Local 322 who were either first employed after May 
34.28 	1, 2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000, 
34.29 	chapter 461, article 7, section 5;
34.30 	(17) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, 
34.31 	allied tradesworkers, and plasterers who are employed by the city of St. Paul or Independent 
34.32 	School District No. 625, St. Paul, with coverage under a collective bargaining agreement 
34.33 	by the Bricklayers and Allied Craftworkers Local 1 pension plan, the Cement Masons Local 
34.34 	633 pension plan, the Glaziers and Glassworkers Local L-1324 pension plan, the Painters 
35.1 	and Allied Trades Local 61 pension plan, or the Twin Cities Plasterers Local 265 pension 
35.2 	plan who were either first employed after May 1, 2001, or if first employed before May 2, 
35.3 	2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, 
35.4 	section 6;
35.5 	(18) plumbers who are employed by the Metropolitan Airports Commission, with 
35.6 	coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan, 
35.7 	who either were first employed after May 1, 2001, or if first employed before May 2, 2001, 
35.8 	elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 
35.9 	6;
35.10 	(19) employees who are hired after June 30, 2002, solely to fill seasonal positions under 
35.11 	subdivision 12b which are limited in duration by the employer to 185 consecutive calendar 
35.12 	daysa period of six months or less in each year of employment with the governmental 
35.13 	subdivision;
35.14 	(20) persons who are provided supported employment or work-study positions by a 
35.15 	governmental subdivision and who participate in an employment or industries program 
35.16 	maintained for the benefit of these persons where the governmental subdivision limits the 
35.17 	position's duration to up to five years, including persons participating in a federal or state 
35.18 	subsidized on-the-job training, work experience, senior citizen, youth, or unemployment 
35.19 	relief program where the training or work experience is not provided as a part of, or for, 
35.20 	future permanent public employment;
35.21 	(21) independent contractors and the employees of independent contractors;
35.22 	(22) reemployed annuitants of the association during the course of that reemployment;
35.23 	(23) persons appointed to serve on a board or commission of a governmental subdivision 
35.24 	or an instrumentality thereof;
35.25 	(24) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan 
35.26 	Transit Commission who are members of the International Brotherhood of Teamsters Local 
35.27 	638 and who are, by virtue of that employment, members of the International Brotherhood 
35.28 	of Teamsters Central States pension plan;
35.29 	(25) electricians or pipefitters employed by the Minneapolis Park and Recreation Board, 
35.30 	with coverage under a collective bargaining agreement by the IBEW local 292, or pipefitters 
35.31 	local 539 pension plan, who were first employed before May 2, 2015, and who elected to 
35.32 	be excluded under Laws 2015, chapter 68, article 11, section 5; and
36.1 	(26) laborers and associated trades personnel employed by the city of St. Paul or 
36.2 	Independent School District No. 625, St. Paul, who are designated as temporary employees 
36.3 	under a collective bargaining agreement and have retirement coverage by the Minnesota 
36.4 	Laborers Pension Fund who were either first employed on or after June 1, 2018, or, if first 
36.5 	employed before June 1, 2018, who elected to be excluded under Laws 2018, chapter 211, 
36.6 	article 16, section 13.
36.7 	(b) Any person performing the duties of a public officer in a position defined in 
36.8 	subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an 
36.9 	employee of an independent contractor.

36.10 	EFFECTIVE DATE. This section is effective July 1, 2020.

36.11 	Sec. 2. Minnesota Statutes 2019 Supplement, section 353.0141, subdivision 1, is amended 
36.12 	to read:
36.13 		Subdivision 1.Service credit purchase authorized. (a) Unless prohibited under 
36.14 	paragraph (b), a member is eligible to purchase allowable service credit, not to exceed five 
36.15 	cumulative years of allowable service credit, for one or more periods of service in the 
36.16 	uniformed services, as defined in United States Code, title 38, section 4303(13), if:
36.17 	(1) the member has at least three years of allowable service credit with the general 
36.18 	employees retirement plan, the local government correctional employees retirement plan 
36.19 	under chapter 353E, or the public employees police and fire retirement plan;
36.20 	(2) the member's current period of employment is at least six months; and
36.21 	(3) one of the following applies:
36.22 	(1)(i) the member's service in the uniformed services occurred before becoming a public 
36.23 	employee as defined in section 353.01, subdivision 2; or
36.24 	(2)(ii) the member failed to obtain service credit for a uniformed services leave of 
36.25 	absence under section 353.01, subdivision 16, paragraph (a), clause (8).
36.26 	(b) A service credit purchase is prohibited if:
36.27 	(1) the member separated from service in the uniformed services with a dishonorable 
36.28 	or bad conduct discharge or under other than honorable conditions; or
36.29 	(2) the member has purchased or otherwise received service credit from any Minnesota 
36.30 	public employee pension plan for the same period of service in the uniformed services.
37.1 	(c) When purchasing a period of service, if the period of service in the uniformed services 
37.2 	is one year or less, then the member must purchase the full period of service. If the period 
37.3 	of service in the uniformed services is longer than one year, the member may purchase the 
37.4 	full period, not to exceed five cumulative years, or may purchase a portion of the period of 
37.5 	service. If a member wishes to purchase a portion of the period of service, the portion must:
37.6 	(1) not be less than one year; and
37.7 	(2) be in increments of six months of service.

37.8 	EFFECTIVE DATE. This section is effective July 1, 2020.

37.9 	Sec. 3. Minnesota Statutes 2018, section 353.29, subdivision 1, is amended to read:
37.10 		Subdivision 1.Age and allowable service requirements. Upon termination of 
37.11 	membership public service, a personmember who has attained normal retirement age and 
37.12 	who is vested under section 353.01, subdivision 47, is entitled upon application to a 
37.13 	retirement annuity. The retirement annuity is known as the "normal" retirement annuity.

37.14 	EFFECTIVE DATE. This section is effective July 1, 2020.

37.15 	Sec. 4. Minnesota Statutes 2018, section 353.29, subdivision 7, is amended to read:
37.16 		Subd. 7.Annuity starting date. (a) Except as specified in paragraph (b), a retirement 
37.17 	annuity granted under this chapter begins on the first day of the first calendar month after 
37.18 	the date of termination of public service or up to sixfive months before the first of the month 
37.19 	in which a complete application is received by the executive director under subdivision 4, 
37.20 	whichever is later. The annuity must be paid in equal monthly installments, unless suspended 
37.21 	or reduced under section 353.37. Annuity payments shall not be paid beyond the end of the 
37.22 	month in which entitlement to the annuity has terminated.
37.23 	(b) An annuity granted to an elected public official may begin on the day following the 
37.24 	expiration of the public office that qualified the elected official for membership under section 
37.25 	353.01, subdivision 2a or 2d, if a complete application is received by the executive director 
37.26 	under subdivision 4 within six months of the date of termination of public service. The 
37.27 	annuity for the month during which the expiration occurred is prorated accordingly.
37.28 	(c) An annuity, once granted, must not be increased, decreased, or revoked except under 
37.29 	this chapter.
38.1 	(d) If an annuitant dies before negotiating the check for the month in which death occurs, 
38.2 	payment must first be made to the surviving spouse, or if none, then to the designated 
38.3 	beneficiary, or if none, lastly to the estate.

38.4 	EFFECTIVE DATE. This section is effective July 1, 2020.

38.5 	Sec. 5. Minnesota Statutes 2018, section 353.30, subdivision 3c, is amended to read:
38.6 		Subd. 3c.Effective date of bounce-back annuity. In the event of the death of the 
38.7 	designated optional annuity beneficiary before the retired employee or disabilitant, the 
38.8 	restoration of the normal single life annuity under subdivision 3a or 3b will take effect on 
38.9 	the first of the month following the date of death of the designated optional annuity 
38.10 	beneficiary or onup to five months before the first of the month following six months before
38.11 	in which satisfactory verification of the death is established by the executive director, 
38.12 	whichever date is later.

38.13 	EFFECTIVE DATE. This section is effective July 1, 2020.

38.14 	Sec. 6. Minnesota Statutes 2018, section 353.31, subdivision 8, is amended to read:
38.15 		Subd. 8.Accrual of benefits. All benefits under this section and survivor benefits 
38.16 	otherwise provided in this chapter when payable to persons qualifying therefor shall accrue 
38.17 	on the first day following thedate of death of a "basic member"basic member or the first 
38.18 	day of the month following the death of an annuitant or disabilitant. No payment may be 
38.19 	made retroactively for more than 12five months prior to thatbefore the first of the month 
38.20 	in which thea complete application is filed received by the executive director, and no benefit 
38.21 	shall accrue beyond the end of the month in which entitlement to such benefits has terminated.

38.22 	EFFECTIVE DATE. This section is effective July 1, 2020.

38.23 	Sec. 7. Minnesota Statutes 2018, section 353.32, subdivision 4, is amended to read:
38.24 		Subd. 4.Lack, or death, of beneficiary. If a member or former member dies without 
38.25 	having designated a beneficiary or if the beneficiary should die before making application 
38.26 	for refund, and if there is no surviving spouse, and if the legal representative of such member 
38.27 	or former member does not apply for refund within five years from the date of death of the 
38.28 	member or former member, the accumulated deductions to the member or former member's 
38.29 	credit at the time of death shall be disposed of in the manner provided in section 356.631
38.30 	356.65, unless subdivision 5 applies.

38.31 	EFFECTIVE DATE. This section is effective July 1, 2020.

39.1 	Sec. 8. Minnesota Statutes 2019 Supplement, section 353.34, subdivision 3, is amended 
39.2 	to read:
39.3 		Subd. 3.Deferred annuity; eligibility; computation. (a) A member who is partially 
39.4 	or 100 percent vested under section 353.01, subdivision 47, when termination of public 
39.5 	service or termination of membership occurs has the option of leaving the member's 
39.6 	accumulated deductions in the fund and being entitled to a deferred retirement annuity 
39.7 	commencing at normal retirement age or to a deferred early retirement annuity under section 
39.8 	353.30, subdivision 1a, 1b, 1c, or 5.
39.9 	(b) The deferred annuity must be computed under section 353.29, subdivision 3, on the 
39.10 	basis of the law in effect on the date of termination of public service or termination of 
39.11 	membership, whichever is earlier later, and, if the later of termination of public service or 
39.12 	termination of membership is on or before December 31, 2011, the deferred annuity must 
39.13 	be augmented as provided in paragraphparagraphs (c) to (e).
39.14 	(c) The deferred annuity of any former member must be augmented from the first day 
39.15 	of the month following the termination of active service, or July 1, 1971, whichever is later, 
39.16 	to the effective date of retirement or, if earlier, December 31, 2018.
39.17 	(d) For a person who became a public employee before July 1, 2006, and who has a 
39.18 	termination of public service before January 1, 2012, the deferred annuity must be augmented 
39.19 	at the following rate or rates, compounded annually:
39.20 	(1) five percent until January 1, 1981;
39.21 	(2) three percent from January 1, 1981, until January 1 of the year following the year in 
39.22 	which the former member attains age 55 or December 31, 2011, whichever is earlier;
39.23 	(3) five percent from January 1 of the year following the year in which the former member 
39.24 	attains age 55, or December 31, 2011, whichever is earlier;
39.25 	(4) one percent from January 1, 2012, until December 31, 2018; and
39.26 	(5) after December 31, 2018, the deferred annuity must not be augmented.
39.27 	(e) For a person who became a public employee after June 30, 2006, and who has a 
39.28 	termination of public service before January 1, 2012, the deferred annuity must be augmented 
39.29 	at the following rate or rates, compounded annually:
39.30 	(1) 2.5 percent until December 31, 2011;
39.31 	(2) one percent from January 1, 2012, until December 31, 2018; and
39.32 	(3) after December 31, 2018, the deferred annuity must not be augmented.
40.1 	(f) For a person who has a termination of public service after December 31, 2011, the 
40.2 	deferred annuity must not be augmented.
40.3 	(g) The retirement annuity or disability benefit of, or the survivor benefit payable on 
40.4 	behalf of, a former member who terminated service before July 1, 1997, or the survivor 
40.5 	benefit payable on behalf of a basic or police and fire member who was receiving disability 
40.6 	benefits before July 1, 1997, which is first payable after June 30, 1997, must be increased 
40.7 	on an actuarial equivalent basis to reflect the change in the investment return actuarial 
40.8 	assumption under section 356.215, subdivision 8, from five percent to six percent under a 
40.9 	calculation procedure and tables adopted by the board and approved by the actuary retained 
40.10 	under section 356.214.
40.11 	(h) A former member qualified to apply for a deferred retirement annuity may revoke 
40.12 	this option at any time before the commencement of deferred annuity payments by making 
40.13 	application for a refund. The person is entitled to a refund of accumulated member 
40.14 	contributions within 30 days following date of receipt of the application by the executive 
40.15 	director.

40.16 	EFFECTIVE DATE. This section is effective July 1, 2020.

40.17 	Sec. 9. Minnesota Statutes 2019 Supplement, section 353.371, subdivision 1, is amended 
40.18 	to read:
40.19 		Subdivision 1.Eligibility. (a) This section applies to a basic or coordinated member of 
40.20 	the general employees retirement plan of the Public Employees Retirement Association 
40.21 	who:
40.22 	(1) for at least the five years immediately preceding separation under clause (2), was 
40.23 	regularly scheduled to work 1,044 or more hours per year in a position covered by the 
40.24 	general employees retirement plan of the Public Employees Retirement Association not 
40.25 	including positions that are elected offices;
40.26 	(2) terminateshas a termination of membership as defined under section 353.01, 
40.27 	subdivision 11b;
40.28 	(3) at the time of termination under clause (2), was at least age 62 and met the age and 
40.29 	service requirements necessary to receive a retirement annuity from the plan and satisfied 
40.30 	requirements for the commencement of the retirement annuity in the month following 
40.31 	termination;
41.1 	(4) accepts a phased retirement agreement to continue employment in the same position 
41.2 	with the same governmental subdivision, workingthat the member held before the date of 
41.3 	the member's termination of membership and to work a reduced schedule that is both:
41.4 	(i) a reduction of at least 25 percent from the employee's number of previously regularly 
41.5 	scheduled work hours per pay period; and
41.6 	(ii) 1,044 hours per year or less in public service; and
41.7 	(5) is not eligible for participation in the state employee postretirement option program 
41.8 	under section 43A.346.
41.9 	(b) For purposes of this section, the length of separation requirement and termination 
41.10 	of public service requirement prohibiting return to work agreements under section 353.01, 
41.11 	subdivisions 11a and 28, are not applicable except as specified in subdivision 7, paragraph 
41.12 	(a).

41.13 	EFFECTIVE DATE. This section is effective July 1, 2020.

41.14 	Sec. 10. Minnesota Statutes 2019 Supplement, section 353.371, subdivision 2, is amended 
41.15 	to read:
41.16 		Subd. 2.Termination and annuity reduction requirements not 
41.17 	applicable. Notwithstanding sections 353.29 and 353.30, an employee covered by a phased 
41.18 	retirement agreement need not have a termination of public service to be eligible for a 
41.19 	retirement annuity. The provisions of section 353.37 governing annuities of reemployed 
41.20 	annuitants do not apply to employment under a phased retirement agreement.

41.21 	EFFECTIVE DATE. This section is effective July 1, 2020.

41.22 	Sec. 11. Minnesota Statutes 2019 Supplement, section 353.371, is amended by adding a 
41.23 	subdivision to read:
41.24 		Subd. 9.Termination upon excess hours worked. If an employee works more hours 
41.25 	under a phased retirement agreement than is permitted under subdivision 1, paragraph (a), 
41.26 	clause (4), then, effective on the first of the month following the date on which the permitted 
41.27 	number of hours was exceeded:
41.28 	(1) the phased retirement agreement is terminated; and
41.29 	(2) the employee's retirement annuity is suspended until the employee meets the 
41.30 	termination and length of service requirement in section 353.01, subdivisions 11a and 28.

41.31 	EFFECTIVE DATE. This section is effective July 1, 2020.

42.1 	Sec. 12. Minnesota Statutes 2018, section 353.651, subdivision 1, is amended to read:
42.2 		Subdivision 1.Age and allowable service requirements. Upon separation from public 
42.3 	service, any police officer or firefighter member, other than a firefighter covered by section 
42.4 	353.6511, or a police officer covered by section 353.6512, who has attained the age of at 
42.5 	least 55 years and who is partially or 100 percent vested under section 353.01, subdivision 
42.6 	47, is entitled upon application to a retirement annuity, known as the "normal"normal 
42.7 	retirement annuity.

42.8 	EFFECTIVE DATE. This section is effective July 1, 2020.

42.9 	Sec. 13. Minnesota Statutes 2018, section 353.656, subdivision 1, is amended to read:
42.10 		Subdivision 1.Duty disability; computation of benefits. (a) A member of the police 
42.11 	and fire plan, other than a firefighter covered by section 353.6511, or a police officer covered 
42.12 	by section 353.6512, who is determined to qualify for duty disability as defined in section 
42.13 	353.01, subdivision 41, is entitled to receive disability benefits during the period of such 
42.14 	disability in an amount equal to 60 percent of the average salary as defined in section 353.01, 
42.15 	subdivision 17a, plus an additional 3.0 percent of that average salary for each year of service 
42.16 	in excess of 20 years.
42.17 	(b) To be eligible for a benefit under paragraph (a), the member must have:
42.18 	(1) not met the age and vesting requirements for a retirement annuity under section 
42.19 	353.651, subdivision 1; or
42.20 	(2) met the age and vesting requirements under that subdivision, but does not have at 
42.21 	least 20 years of allowable service credit.
42.22 	(c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a period 
42.23 	of 60 months from the disability benefit accrual date and at the end of that period is subject 
42.24 	to provisions of subdivision 5a.
42.25 	(d) If the disability under this subdivision occurs before the member has at least five 
42.26 	years of allowable service credit in the police and fire plan, the disability benefit must be 
42.27 	computed on the average salary from which deductions were made for contribution to the 
42.28 	police and fire fund.

42.29 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2020.

43.1 	Sec. 14. Minnesota Statutes 2018, section 353.656, subdivision 3, is amended to read:
43.2 		Subd. 3.Regular disability benefit. (a) A member of the police and fire plan, other 
43.3 	than a firefighter covered by section 353.6511, or a police officer covered by section 
43.4 	353.6512, who qualifies for a regular disability benefit as defined in section 353.01, 
43.5 	subdivision 46, is entitled to receive a disability benefit, after filing a valid application, in 
43.6 	an amount equal to 45 percent of the average salary as defined in section 353.01, subdivision 
43.7 	17a.
43.8 	(b) To be eligible for a benefit under paragraph (a), the member must have at least one 
43.9 	year of allowable service credit and have:
43.10 	(1) not met the age and vesting requirements for a retirement annuity under section 
43.11 	353.651, subdivision 1, or
43.12 	(2) met the age and vesting requirements under that subdivision, but does not have at 
43.13 	least 15 years of allowable service credit.
43.14 	(c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a period 
43.15 	of 60 months from the disability benefit accrual date and, at the end of that period, is subject 
43.16 	to provisions of subdivision 5a.
43.17 	(d) For a member who is employed as a full-time firefighter by the Department of Military 
43.18 	Affairs of the state of Minnesota, allowable service as a full-time state Military Affairs 
43.19 	Department firefighter credited by the Minnesota State Retirement System may be used in 
43.20 	meeting the minimum allowable service requirement of this subdivision.

43.21 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2020.

43.22 	Sec. 15. Minnesota Statutes 2018, section 353.657, subdivision 1, is amended to read:
43.23 		Subdivision 1.Generally. (a) In the event that a member of the police and fire fund, 
43.24 	other than a firefighter covered by section 353.6511, or a police officer covered by section 
43.25 	353.6512, dies from any cause before retirement or before becoming disabled and receiving 
43.26 	disability benefits, the association shall grant survivor benefits to a surviving spouse, as 
43.27 	defined in section 353.01, subdivision 20, and to a dependent child or children, as defined 
43.28 	in section 353.01, subdivision 15, except that if the death is not a line of duty death, the 
43.29 	member must be partially or 100 percent vested under section 353.01, subdivision 47.
43.30 	(b) Notwithstanding the definition of surviving spouse, a former spouse of the member, 
43.31 	if any, is entitled to a portion of the monthly surviving spouse benefit if stipulated under 
43.32 	the terms of a marriage dissolution decree filed with the association. If there is no surviving 
44.1 	spouse or child or children, a former spouse may be entitled to a lump-sum refund payment 
44.2 	under section 353.32, subdivision 1, if provided for in a marriage dissolution decree but not 
44.3 	a monthly surviving spouse benefit despite the terms of a marriage dissolution decree filed 
44.4 	with the association.
44.5 	(c) The spouse and dependent child or children are entitled to monthly benefits as 
44.6 	provided in subdivisions 2 to 4.

44.7 	EFFECTIVE DATE. This section is effective July 1, 2020.

44.8 	Sec. 16. POLICE AND FIRE PLAN; RETROACTIVE CLARIFICATION 
44.9 	RELATING TO DURATION OF A DISABILITY BENEFIT.
 44.10 	Minnesota Statutes, section 353.656, subdivision 1, paragraph (c), shall be read as "(c) 
44.11 	The disability benefit must be paid for a period of 60 months from the disability benefit 
44.12 	accrual date and at the end of that period is subject to provisions of subdivision 5a."

44.13 	EFFECTIVE DATE; EXPIRATION. This section is effective retroactively from July 
44.14 	1, 2007, and expires December 31, 2019.

44.15 	Sec. 17. REPEALER.
 44.16 	Minnesota Statutes 2018, section 353.30, subdivision 4, is repealed.

44.17 	EFFECTIVE DATE. This section is effective July 1, 2020.

44.18 	ARTICLE 7
44.19 	PERA STATEWIDE VOLUNTEER 
44.20 	FIREFIGHTER PLAN ADMINISTRATIVE PROVISIONS

44.21 	Section 1. Minnesota Statutes 2018, section 353G.01, is amended by adding a subdivision 
44.22 	to read:
44.23 		Subd. 6a.Governing body. "Governing body" means the governing body of a 
44.24 	municipality or independent nonprofit firefighting corporation or, in the case of a joint 
44.25 	powers entity, the governing bodies of the municipalities associated with the joint powers 
44.26 	entity.

44.27 	Sec. 2. Minnesota Statutes 2018, section 353G.05, subdivision 1, is amended to read:
44.28 		Subdivision 1.Coverage. Any(a) A relief association or a municipality or independent 
44.29 	nonprofit firefighting corporation affiliated with a relief association may elect to have its 
45.1 	volunteer firefighters covered by the lump-sum retirement division or the monthly benefit 
45.2 	retirement division of the retirement plan, whichever applies.
45.3 	(b) A municipality or independent nonprofit firefighting corporation that is not affiliated 
45.4 	with a relief association may elect to have its volunteer firefighters covered by the lump-sum 
45.5 	retirement division of the retirement plan.

45.6 	Sec. 3. Minnesota Statutes 2018, section 353G.05, subdivision 5, is amended to read:
45.7 		Subd. 5.Finalization; coverage transfer. Upon receipt of(a) The executive director 
45.8 	shall deliver the cost analysis requested under subdivision 2 or 3, to the board of trustees 
45.9 	of the relief association, if one exists, and the governing body of the municipality or 
45.10 	independent nonprofit firefighting corporation associated with the fire department shall 
45.11 	either approve or disapprove the retirement coverage change.
45.12 	(b) The transfer of coverage to the retirement plan is considered approved if, within 120 
45.13 	days of receipt of the cost analysis, the transfer is approved by both (1) the board of trustees 
45.14 	of the relief association, if one exists, and (2) the governing body. If either the retirement 
45.15 	coverage change is not acted upongoverning body or the board of trustees of the relief 
45.16 	association does not take action to approve the transfer within 120 days, it is deemed to be 
45.17 	disapproved of receipt of the cost analysis, the transfer is not approved.
45.18 	(c) If the retirement coverage changetransfer is approved by the applicable governing 
45.19 	body, coverage by the voluntary statewide volunteer firefighter retirement plan is effective 
45.20 	on the January 1 next following the approval date of approval by the last governing body 
45.21 	or, if later, the date of approval by the board of trustees of the relief association.

45.22 	Sec. 4. Minnesota Statutes 2018, section 353G.05, is amended by adding a subdivision to 
45.23 	read:
45.24 		Subd. 6.Joint powers entities. If transfer of coverage to the retirement plan is being 
45.25 	requested for volunteer firefighters that provide services to a fire department operated as 
45.26 	or by a joint powers entity, whenever an election or approval by or delivery to the governing 
45.27 	body of a municipality is required under this section, all municipalities that executed the 
45.28 	joint powers agreement must execute the election or approval or receive delivery, unless 
45.29 	the joint powers agreement specifies another process be followed in order for the action of 
45.30 	a joint powers entity to be effective.

46.1 	Sec. 5. Minnesota Statutes 2018, section 353G.09, subdivision 3, is amended to read:
46.2 		Subd. 3.Alternative lump-sum pension eligibility and computation. (a) An active 
46.3 	member of the lump-sum retirement division of the retirement plan is entitled to an alternative 
46.4 	lump-sum service pension from the retirement plan if the person:
46.5 	(1) has separated from active service with the fire department for at least 30 days;
46.6 	(2) has attained the age of at least 50 years or the age for receipt of a service pension 
46.7 	under the benefit plan of the applicable former volunteer firefighter relief association as of 
46.8 	the date immediately before the election of the retirement coverage change, whichever is 
46.9 	later;
46.10 	(3) has completed at least five years of active service with the fire department and at 
46.11 	least five years in total as a member of the applicable former volunteer firefighter relief 
46.12 	association or of the lump-sum retirement division of the retirement plan, but has not rendered 
46.13 	at least five years of good time service credit as a member of the lump-sum retirement 
46.14 	division of the plan; and
46.15 	(4) applies in a manner prescribed by the executive director for the service pension.
46.16 	(b) If retirement coverage before statewide retirement plan coverage was provided to 
46.17 	an active member by a defined benefit lump-sum retirement plan volunteer firefighter relief 
46.18 	association, as defined in section 424A.001, subdivision 1b, the alternative lump-sum service 
46.19 	pension is:
46.20 	(1) the service pension amountlevel specified in the bylaws of the applicable former 
46.21 	volunteer firefighter relief association either as of the date immediately before the election 
46.22 	of the retirement coverage change or as of the date immediately before the termination of 
46.23 	firefighting services, whichever is earlier,; multiplied by the total number of
46.24 	(2) either full years of service or years and months of service, as specified in the bylaws, 
46.25 	as a member of that volunteer firefighter relief association and as a member of the retirement 
46.26 	plan.; multiplied by
46.27 	(3) the non-forfeitable percentage of the service pension to which the member is entitled 
46.28 	under subdivision 2.
46.29 	(c) If retirement coverage before statewide retirement plan coverage was provided to an 
46.30 	active member by a defined contribution plan volunteer firefighter relief association, as 
46.31 	defined in section 424A.001, subdivision 1c, the alternative lump-sum service pension is
46.32 	an amount equal to that portion of:
47.1 	(1) the person's account balance that the person was vested for as of the date immediately 
47.2 	before the date on which statewide retirement plan coverage was first provided to the person
47.3 	election of the retirement coverage change; multiplied by
47.4 	(2) the non-forfeitable percentage of the account balance to which the person is entitled 
47.5 	under subdivision 2; plus
47.6 	(3) six percent annual compound interest from thatthe date immediately before the 
47.7 	election of the retirement coverage change until the date immediately before the date of 
47.8 	retirement.

47.9 	Sec. 6. Minnesota Statutes 2018, section 353G.09, is amended by adding a subdivision to 
47.10 	read:
47.11 		Subd. 4.Deferred service pensions from former volunteer firefighter relief 
47.12 	association. A person who (1) had the status of deferred member with a former volunteer 
47.13 	firefighter relief association as of the date immediately before the election of the retirement 
47.14 	coverage change, and (2) is eligible for a service pension under the former relief association's 
47.15 	bylaws is entitled to receive a service pension from the retirement plan. Eligibility for and 
47.16 	calculation of the service pension are determined under the former relief association's bylaws 
47.17 	as of the date the person terminated firefighting services and under chapter 424A.

47.18 	Sec. 7. Minnesota Statutes 2018, section 353G.11, subdivision 2, is amended to read:
47.19 		Subd. 2.Lump-sum retirement division level selection. After the transfer of retirement 
47.20 	coverage to the lump-sum retirement division of the retirement plan, the governing body 
47.21 	or bodies of the entity or entities operating the fire department whose firefighters are covered 
47.22 	by the retirement plan may request A cost estimate from the executive director of an increase 
47.23 	in the service pension level applicable to the active firefighters of the fire department may 
47.24 	be requested by: (1) the fire chief of a department that has active membership covered by 
47.25 	the lump-sum retirement division; or (2) the governing body operating a fire department 
47.26 	that has active membership covered by the lump-sum retirement division. Within 120 days 
47.27 	of the receipt of the cost estimate prepared by the executive director using a procedure 
47.28 	certified as accurate by the approved actuary retained by the Public Employees Retirement 
47.29 	Association, the governing body or bodies may approve the service pension level change, 
47.30 	effective for January 1 of the following calendar year unless the governing body or bodies 
47.31 	specify specifies in the approvedapproval document an effective date as thethat is January 
47.32 	1 of the second year following the level increase approval date. If the approval occurs after 
47.33 	April 30, the required municipal contribution for the following calendar year must be 
48.1 	recalculated and the results reported to the municipality or municipalities governing body. 
48.2 	If not approved in a timely fashion within 120 days of the receipt of the cost estimate, the 
48.3 	service pension level change is considered to have been disapproved.

48.4 	Sec. 8. Minnesota Statutes 2018, section 353G.121, is amended to read:
48.5 	353G.121 MONTHLY BENEFIT RETIREMENT DIVISION; POST-TRANSFER 
48.6 	BENEFIT PLAN DOCUMENT MODIFICATIONS.
48.7 	(a) The fire chief of a fire department that has an active membership who are covered 
48.8 	by the monthly benefit retirement division of the statewide retirement plan may initiate the 
48.9 	process of modifying the retirement benefit plan document under this section.
48.10 	(b) The modification procedure is initiated when the applicable fire chief files with the 
48.11 	executive director of the Public Employees Retirement Association a written summary of 
48.12 	the desired benefit plan document modification, the proposed benefit plan document 
48.13 	modification language, a written request for the preparation of an actuarial cost estimate 
48.14 	for the proposed benefit plan document modification, and payment of the estimated cost of 
48.15 	the actuarial cost estimate.
48.16 	(c) Upon receipt of the modification request and related documents, the executive director 
48.17 	shall review the language of the proposed benefit plan document modification and, if a 
48.18 	clarification is needed in the submitted language, shall inform the fire chief of the necessary 
48.19 	clarification. Once the proposed benefit plan document modification language has been 
48.20 	clarified by the fire chief and resubmitted to the executive director, the executive director 
48.21 	shall arrange for the approved actuary retained by the Public Employees Retirement 
48.22 	Association to prepare a benefit plan document modification cost estimate under the 
48.23 	applicable provisions of section 356.215 and of the standards for actuarial work adopted 
48.24 	by the Legislative Commission on Pensions and Retirement. Upon completion of the benefit 
48.25 	plan document modification cost estimate, the executive director shall forward the estimate 
48.26 	to the fire chief who requested it and to the chief financial officer of the municipality or 
48.27 	entity with which the fire department is primarily associated.
48.28 	(d) The fire chief, upon receipt of the cost estimate, shall circulate the cost estimate with 
48.29 	the active firefighters in the fire department and shall take reasonable steps to provide the 
48.30 	estimate results to any affected retired members of the fire department and their beneficiaries. 
48.31 	The chief financial officer of the municipality or entity associated with the fire department 
48.32 	shall present the proposed modification language and the cost estimate to the governing 
48.33 	body of the municipality or entity for its consideration at a public hearing held for that 
48.34 	purpose.
49.1 	(e) If the governing body of the municipality or entity approves the modification language, 
49.2 	the chief administrative officer of the municipality or entity shall notify the executive director 
49.3 	of the Public Employees Retirement Association of that approval. The benefit plan document 
49.4 	modification is effective on the January 1 next following the date of filing the approval with 
49.5 	the Public Employees Retirement Association and the state auditor.

49.6 	Sec. 9. REVISOR INSTRUCTION.
 49.7 	In Minnesota Statutes, the revisor of statutes shall substitute the term "statewide volunteer 
49.8 	firefighter plan" for "voluntary statewide volunteer firefighter retirement plan" and the term 
49.9 	"statewide volunteer firefighter fund" for "voluntary statewide volunteer firefighter retirement 
49.10 	fund" wherever the terms refer to the retirement plan and fund established under Minnesota 
49.11 	Statutes, chapter 353G.

49.12 	Sec. 10. EFFECTIVE DATE.
 49.13 	Sections 1 to 9 are effective the day following final enactment.

49.14 	ARTICLE 8
49.15 	TEACHERS RETIREMENT ASSOCIATION ADMINISTRATIVE PROVISIONS

49.16 	Section 1. Minnesota Statutes 2018, section 354.05, subdivision 2, is amended to read:
49.17 		Subd. 2.Teacher. (a) "Teacher" means:
49.18 	(1) a person who renders service as a teacher, supervisor, principal, superintendent, 
49.19 	librarian, nurse, counselor, social worker, therapist, or psychologist in:
49.20 	(i) a public school of the state other than in Independent School District No. 625;
49.21 	(ii) a charter school; or
49.22 	(iii) a charitable, penal, or correctional institution of a governmental subdivision; or
49.23 	(iv)(iii) the Perpich Center for Arts Education, except that any employee of the Perpich 
49.24 	Center for Arts Education who was covered by the Minnesota State Retirement System 
49.25 	general state employees retirement plan as of July 1, 2018, shall continue to be covered by 
49.26 	that plan and not by the Teachers Retirement Association;
49.27 	(2) a person who is engaged in educational administration in connection with the state 
49.28 	public school system, whether the position be a public office or as employment;
49.29 	(3) a person who renders service as a charter school director or chief administrative 
49.30 	officer; provided, however, that if the charter school director or chief administrative officer 
50.1 	is covered by the Public Employees Retirement Association general employees retirement 
50.2 	plan on July 1, 2018, the charter school director or chief administrative officer shall continue 
50.3 	to be covered by that plan and not by the Teachers Retirement Association;
50.4 	(4) an employee of the Teachers Retirement Association;
50.5 	(5) a person who renders teaching service on a part-time basis and who also renders 
50.6 	other services for a single employing unit where the teaching service comprises at least 50 
50.7 	percent of the combined employment salary is a member of the association for all services 
50.8 	with the single employing unit or, if less than 50 percent of the combined employment 
50.9 	salary, the executive director determines all of the combined service is covered by the 
50.10 	association; or
50.11 	(6) a person who is not covered by the plans established under chapter 352D, 354A, or 
50.12 	354B and who is employed by the Board of Trustees of the Minnesota State Colleges and 
50.13 	Universities system in an unclassified position as:
50.14 	(i) a president, vice-president, or dean;
50.15 	(ii) a manager or a professional in an academic or an academic support program other 
50.16 	than specified in item (i);
50.17 	(iii) an administrative or a service support faculty position; or
50.18 	(iv) a teacher or a research assistant.
50.19 	(b) "Teacher" does not mean:
50.20 	(1) a person who works for a school or institution as an independent contractor as defined 
50.21 	by the Internal Revenue Service;
50.22 	(2) annuitants of the teachers retirement plan who are employed after retirement by an 
50.23 	employing unit that participates in the teachers retirement plan during the course of that 
50.24 	reemployment;
50.25 	(3) a person who is employed by the University of Minnesota;
50.26 	(4) a member or an officer of any general governing or managing board or body of an 
50.27 	employing unit that participates in the teachers retirement plan; or
50.28 	(5) a person employed by Independent School District No. 625 as a teacher as defined 
50.29 	in section 354A.011, subdivision 27.

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

51.1 	Sec. 2. Minnesota Statutes 2018, section 354.05, subdivision 41, is amended to read:
51.2 		Subd. 41.Annual base salary. (a) "Annual base salary" means:
51.3 	(1) for an independent school district or educational cooperative, the lowest full-time 
51.4 	Bachelor of Arts (BA) base contract salary for the previous fiscal year for that employing 
51.5 	unit;
51.6 	(2) for a charter school, the lowest starting annual salary for a full-time licensed teacher 
51.7 	employed during the previous fiscal year for that employing unit; and
51.8 	(3) for a state agency or professional organization, the lowest starting annual salary for 
51.9 	a full-time Teachers Retirement Association covered position for the previous fiscal year 
51.10 	for that employing unit.
51.11 	(b) If there is no previous fiscal year data because an employer unit is new and paragraph 
51.12 	(c) does not apply, the annual base salary for the first year of operation will be as provided 
51.13 	in paragraph (a), except that the base contract salary for the current fiscal year, rather than 
51.14 	the previous fiscal year, must be used.
51.15 	(c) For a new employer unit created as a result of a merger or consolidation, the annual 
51.16 	base salary must be the lowest annual base salary as specified in paragraph (a) for any of 
51.17 	the employer units involved in the merger or consolidation.

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

51.19 	Sec. 3. Minnesota Statutes 2018, section 354.44, subdivision 4, is amended to read:
51.20 		Subd. 4.Retirement annuity accrual date. (a) An annuity payment begins to accrue, 
51.21 	provided thatIf the applicable age and service requirements under subdivision 1this section 
51.22 	are satisfied, after the termination of teaching service, or after the application for retirement 
51.23 	has been filed with the executive director,an annuity payment begins to accrue as follows:
51.24 	(1) on the day after the termination of teaching service;
51.25 	(2) on the day of receipt of application if the application is filed with the executive 
51.26 	director after the six-month period that occurs immediately following the termination of 
51.27 	teaching service; or
51.28 	(3) on July 1 for all school principals and other administrators who receive a full annual 
51.29 	contract salary during the fiscal year for performance of a full year's contract duties; or.
51.30 	(4) if an application for retirement is filed with the executive director during the six-month 
51.31 	period that occurs immediately following the termination of teaching service, the annuity 
52.1 	may begin to accrue as if the application for retirement had been filed with the board on the 
52.2 	date teaching service terminated.
52.3 	(b) A member, or a person authorized to act on behalf of the member, may specify a 
52.4 	different date of retirement from that determined in paragraph (a), as follows:
52.5 	(1) if the application is filed on or before the date of termination of teaching service, the 
52.6 	accrual date may be a date nomust not be earlier than the day after the termination of 
52.7 	teaching service and no later than six months after the termination date; or
52.8 	(2) if the application is filed during the six-month period that occurs immediately 
52.9 	following the termination of teaching service, the accrual dateannuity may begin to accrue 
52.10 	retroactively, but no earlier than the day after termination of teaching service terminated
52.11 	and no later than six months after the termination date.

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

52.13 	Sec. 4. Minnesota Statutes 2018, section 354.44, subdivision 6, is amended to read:
52.14 		Subd. 6.Computation of formula program retirement annuity. (a) The formula 
52.15 	retirement annuity must be computed in accordance with the applicable provisions of the 
52.16 	formulas stated in paragraph (b) or (d) on the basis of each member's average salary under 
52.17 	section 354.05, subdivision 13a, for the period of the member's formula service credit.
52.18 	(b) This paragraph, in conjunction with paragraph (c), applies to a person who first 
52.19 	became a member of the association or a member of a pension fund listed in section 356.30, 
52.20 	subdivision 3, before July 1, 1989, unless paragraph (d), in conjunction with paragraph (e), 
52.21 	produces a higher annuity amount, in which case paragraph (d) applies. The average salary 
52.22 	as defined in section 354.05, subdivision 13a, multiplied by the following percentages per 
52.23 	year of formula service credit shall determine the amount of the annuity to which the member 
52.24 	qualifying therefor is entitled for service rendered before July 1, 2006:

52.25		Period
		Coordinated Member
		Basic Member
	
52.26
52.27		Each year of service 
during first ten
		1.2 percent  per year
		2.2 percent  per year
	
52.28
52.29		Each year of service 
thereafter
		1.7 percent  per year
		2.7 percent  per year
	
52.30 	For service rendered on or after July 1, 2006, by a member other than a member who 
52.31 	was a member of the former Duluth Teachers Retirement Fund Association between January 
52.32 	1, 2006, and June 30, 2015, and for service rendered on or after July 1, 2013, by a member 
52.33 	who was a member of the former Duluth Teachers Retirement Fund Association between 
53.1 	January 1, 2013, and June 30, 2015, the average salary as defined in section 354.05, 
53.2 	subdivision 13a, multiplied by the following percentages per year of service credit, determines 
53.3 	the amount the annuity to which the member qualifying therefor is entitled:

53.4		Period
		Coordinated Member
		Basic Member
	
53.5
53.6		Each year of service 
during first ten
		1.4 percent  per year
		2.2 percent  per year
	
53.7
53.8		Each year of service after 
ten years of service
		1.9 percent  per year
		2.7 percent  per year
	
53.9 	(c)(1) This paragraph applies only to a person who first became a member of the 
53.10 	association or a member of a pension fund listed in section 356.30, subdivision 3, before 
53.11 	July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in conjunction 
53.12 	with this paragraph than when calculated under paragraph (d), in conjunction with paragraph 
53.13 	(e).
53.14 	(2) Where any member retires prior to normal retirement age under a formula annuity, 
53.15 	the member shall be paid a retirement annuity in an amount equal to the normal annuity 
53.16 	provided in paragraph (b) reduced by one-quarter of one percent for each month that the 
53.17 	member is under normal retirement age at the time of retirement except that for any member 
53.18 	who has 30 or more years of allowable service credit, the reduction shall be applied only 
53.19 	for each month that the member is under age 62.
53.20 	(3) Any member whose attained age plus credited allowable service totals 90 years is 
53.21 	entitled, upon application, to a retirement annuity in an amount equal to the normal annuity 
53.22 	provided in paragraph (b), without any reduction by reason of early retirement.
53.23 	(d) This paragraph applies to a member who has become at least 55 years old and first 
53.24 	became a member of the association after June 30, 1989, and to any other member who has 
53.25 	become at least 55 years old and whose annuity amount when calculated under this paragraph 
53.26 	and in conjunction with paragraph (e), is higher than it is when calculated under paragraph 
53.27 	(b), in conjunction with paragraph (c).
53.28 	(1) For a basic member, the average salary, as defined in section 354.05, subdivision 
53.29 	13a, multiplied by 2.7 percent for each year of service for a basic member determines the 
53.30 	amount of the retirement annuity to which the basic member is entitled. The annuity of a 
53.31 	basic member who was a member of the former Minneapolis Teachers Retirement Fund 
53.32 	Association as of June 30, 2006, must be determined according to the annuity formula under 
53.33 	the articles of incorporation of the former Minneapolis Teachers Retirement Fund Association 
53.34 	in effect as of that date.
54.1 	(2) For a coordinated member, the average salary, as defined in section 354.05, 
54.2 	subdivision 13a, multiplied by 1.7 percent for each year of service rendered before July 1, 
54.3 	2006, and by 1.9 percent for each year of service rendered on or after July 1, 2006, for a 
54.4 	member other than a member who was a member of the former Duluth Teachers Retirement 
54.5 	Fund Association between January 1, 2006, and June 30, 2015, and by 1.9 percent for each 
54.6 	year of service rendered on or after July 1, 2013, for a member of the former Duluth Teachers 
54.7 	Retirement Fund Association between January 1, 2013, and June 30, 2015, determines the 
54.8 	amount of the retirement annuity to which the coordinated member is entitled.
54.9 	(e) This paragraph applies to a member who has become at least 55 years old and first 
54.10 	becomes a member of the association after June 30, 1989, and to any other member who 
54.11 	has become at least 55 years old and whose annuity is higher when calculated under 
54.12 	paragraph (d) in conjunction with this paragraph than when calculated under paragraph (b), 
54.13 	in conjunction with paragraph (c). An employee who retires under the formula annuity 
54.14 	before the normal retirement age shall be paid the normal annuity provided in paragraph 
54.15 	(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that would 
54.16 	be payable to the employee if the employee deferred receipt of the annuity and the annuity 
54.17 	amount were augmented at an annual rate of three percent compounded annually from the 
54.18 	day the annuity begins to accrue until the normal retirement age if the employee became 
54.19 	an employee before July 1, 2006, and at 2.5 percent compounded annually if the employee 
54.20 	becomes an employee after June 30, 2006. Except in regards to section 354.46, this paragraph 
54.21 	remains in effect until June 30, 2015.
54.22 	(f) Until June 30, 2019, this paragraph applies to a member who has become at least 55 
54.23 	years old and first becomes a member of the association after June 30, 1989, and to any 
54.24 	other member who has become at least 55 years old and whose annuity is higher when 
54.25 	calculated under paragraph (d) in conjunction with this paragraph than when calculated 
54.26 	under paragraph (b) in conjunction with paragraph (c). An employee who retires under the 
54.27 	formula annuity before the normal retirement age is entitled to receive the normal annuity 
54.28 	provided in paragraph (d), reduced as described in clause (1) or (2), as applicable.
54.29 	(1) For a member who is at least age 62 and has at least 30 years of service, the annuity 
54.30 	shall be reduced by an early reduction factor of six percent for each year that the member's 
54.31 	age of retirement precedes normal retirement age. The resulting reduced annuity shall be 
54.32 	further adjusted to take into account the increase in the monthly amount that would have 
54.33 	occurred had the member retired early and deferred receipt of the annuity until normal 
54.34 	retirement age and the annuity was augmented during the deferral period at 2.5 percent, if 
55.1 	the member commenced employment after June 30, 2006, or at three percent, if the member 
55.2 	commenced employment before July 1, 2006, compounded annually.
55.3 	(2) For a member who has not attained age 62 or has fewer than 30 years of service, the 
55.4 	annuity shall be reduced for each year that the member's age of retirement precedes the 
55.5 	normal retirement age by the following early reduction factors:
55.6 	(i) for the period during which the member is age 55 through age 59, the factor is four 
55.7 	percent; and
55.8 	(ii) for the period during which the member is age 60 but not yet normal retirement age, 
55.9 	the factor is seven percent.
55.10 	The resulting reduced annuity shall be further adjusted to take into account the increase 
55.11 	in the monthly amount that would have occurred had the member retired early and deferred 
55.12 	receipt of the annuity until normal retirement age and the annuity was augmented during 
55.13 	the deferral period at 2.5 percent, if the member commenced employment after June 30, 
55.14 	2006, or at three percent, if the member commenced employment before July 1, 2006, 
55.15 	compounded annually.
55.16 	(g) For members who retire on or after July 1, 2019,(e) This paragraph applies to a 
55.17 	person who has become at least 55 years old and first becomes a member of the association 
55.18 	after June 30, 1989, and to any other member who has become at least 55 years old and 
55.19 	whose annuity is higher when calculated under paragraph (d) in conjunction with this 
55.20 	paragraph than when calculated under paragraph (b) in conjunction with paragraph (c). An 
55.21 	employee who retires under the formula annuity before the normal retirement age is entitled 
55.22 	to receive the normal annuity provided in paragraph (d), reduced as described in clause (1) 
55.23 	or (2), as applicable.
55.24 	(1) For a member who is at least age 62 and has at least 30 years of service, the annuity 
55.25 	shall be reduced by an early reduction factor of six percent for each year that the member's 
55.26 	age of retirement precedes the normal retirement age. The resulting reduced annuity shall 
55.27 	be further adjusted to take into account the increase in the monthly amount that would have 
55.28 	occurred had the member retired early and deferred receipt of the annuity until normal 
55.29 	retirement age and the annuity was augmented during the deferral period at 2.5 percent, if 
55.30 	the member commenced employment after June 30, 2006, or at three percent, if the member 
55.31 	commenced employment before July 1, 2006, compounded annually.
55.32 	(2) For a member who has not attained age 62 or has fewer than 30 years of service, the 
55.33 	annuity shall be reduced for each year that the member's age of retirement precedes normal 
55.34 	retirement age by the following early reduction factors:
56.1 	(i) for the period during which the member is age 55 through age 59 58, the factor is 
56.2 	four percent; and
56.3 	(ii) for the period during which the member is at least age 60 59 but not yet normal 
56.4 	retirement age, the factor is seven percent.
56.5 	The resulting annuity shall be further adjusted to take into account the increase in the 
56.6 	monthly amount that would have occurred had the member retired early and deferred receipt 
56.7 	of the annuity until normal retirement age and the annuity was augmented during the deferral 
56.8 	period at the applicable annual rate, compounded annually. The applicable annual rate is 
56.9 	the rate in effect for the month that includes the member's effective date of retirement and 
56.10 	shall be considered as fixed for the member for the period until the member reaches normal 
56.11 	retirement age. The applicable annual rate for June 2019 is 2.5 percent, if the member 
56.12 	commenced employment after June 30, 2006, or three percent, if the member commenced 
56.13 	employment before July 1, 2006, compounded annually, and decreases each month beginning 
56.14 	July 2019 in equal monthly increments over the five-year period that begins July 1, 2019, 
56.15 	and ends June 30, 2024, to zero percent effective for July 2024 and thereafter.
56.16 	After June 30, 2024, the reduced annuity commencing before normal retirement age 
56.17 	under this clause shall not take into account any augmentation.
56.18 	(h) After June 30, 2015, and before July 1, 2019, for a person who would have a reduced 
56.19 	retirement annuity under either paragraph (e) or (f) if they were applicable, the employee 
56.20 	is entitled to receive a reduced annuity which must be calculated using a blended reduction 
56.21 	factor augmented monthly by 1/60 of the difference between the reduction required under 
56.22 	paragraph (e) and the reduction required under paragraph (f).
56.23 	(i)(f) No retirement annuity is payable to a former employee with a salary that exceeds 
56.24 	95 percent of the governor's salary unless and until the salary figures used in computing the 
56.25 	highest five successive years average salary under paragraph (a) have been audited by the 
56.26 	Teachers Retirement Association and determined by the executive director to comply with 
56.27 	the requirements and limitations of section 354.05, subdivisions 35 and 35a.

56.28 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
56.29 	the amendment to paragraph (g), clause (2), is effective retroactively from June 30, 2018.

56.30 	Sec. 5. Minnesota Statutes 2018, section 354.46, subdivision 2, is amended to read:
56.31 		Subd. 2.Surviving spouse survivor coverage. (a) If the active or deferred member was 
56.32 	at least age 55 and had credit for at least three years of allowable service on the date of 
56.33 	death, the surviving spouse is entitled to the second portion of a 100 percent joint and 
57.1 	survivor annuity specified under section 354.45, based on the age of the active or deferred 
57.2 	member at the time of death and the age of the surviving spouse at the time the benefit 
57.3 	accrues.
57.4 	(b) If the active or deferred member was under age 55 and had credit for at least 30 years 
57.5 	of allowable service on the date of death, the surviving spouse may elect to receive the 
57.6 	second portion of a 100 percent joint and survivor annuity based on the age of the active or 
57.7 	deferred member on the date of death and the age of the surviving spouse at the time the 
57.8 	benefit accrues. If section 354.44, subdivision 6, applies, the annuity is payable using the 
57.9 	full early retirement reduction under section 354.44, subdivision 6, paragraph (c), clause 
57.10 	(3)(ii) (2), to age 55 and one-half of the early retirement reduction from age 55 to the age 
57.11 	payment begins.
57.12 	(c) If the active or deferred member was under age 55 and had credit for at least three 
57.13 	years of allowable service on the date of death, but did not yet qualify for retirement, the 
57.14 	surviving spouse may elect to receive the second portion of a 100 percent joint and survivor 
57.15 	annuity based on the age of the active or deferred member at the time of death and the age 
57.16 	of the surviving spouse at the time the benefit accrues. If section 354.44, subdivision 6, 
57.17 	applies, the annuity is calculated using the full early retirement reduction under section 
57.18 	354.44, subdivision 6, to age 55 and one-half of the early retirement reduction from age 55 
57.19 	to the age the annuity begins.
57.20 	(d) The surviving spouse eligible for surviving spouse benefits under this subdivision 
57.21 	may apply for the annuity any time after the member's death. The benefit may not begin to 
57.22 	accrue more than six months before the date the application is filed with the executive 
57.23 	director and may not accrue before the member's death. The benefit is payable for life. Any 
57.24 	benefit under this subdivision is in lieu of benefits under subdivision 1, if applicable, and 
57.25 	in lieu of a refund of accumulated member contributions under section 354.47, subdivision 
57.26 	1.
57.27 	(e) For purposes of this subdivision, a designated beneficiary must be a former spouse 
57.28 	or a biological or adopted child of the member.

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

57.30 	Sec. 6. Minnesota Statutes 2018, section 354.49, subdivision 2, is amended to read:
57.31 		Subd. 2.Calculation. (a) Except as provided in section 354.44, subdivision 1, any person 
57.32 	who ceases to be a member by reason of termination of teaching service, is entitled to receive 
58.1 	a refund in an amount equal to the accumulated deductions credited to the account plus 
58.2 	interest compounded annually using the following interest rates:
58.3 	(1) before July 1, 1957, no interest accrues;
58.4 	(2) July 1, 1957, to June 30, 2011, six percent;
58.5 	(3) July 1, 2011, to June 30, 2018, four percent; and
58.6 	(4) after June 30, 2018, three percent.
58.7 	For the purpose of this subdivision, interest must be computed on fiscal year end balances 
58.8 	tothrough the first last day of the month prior to the month in which the refund is issued.
58.9 	(b) If the person has received permanent disability payments under section 354.48, the 
58.10 	refund amount must be reduced by the amount of those payments.

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

58.12 	Sec. 7. Minnesota Statutes 2018, section 354.543, subdivision 3, is amended to read:
58.13 		Subd. 3.Service credit grant. Allowable and formula service credit for the purchase 
58.14 	period must be granted by the Teachers Retirement Association to the purchasing teacher 
58.15 	upon receipt of the purchase payment amount. Payment must be made before the teacher's 
58.16 	termination of teaching service. Purchasing allowable and formula service credit under this 
58.17 	section does not change the date the teacher first became a member of the association for 
58.18 	the purpose of computing an annuity under section 354.44, subdivision 6.

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

58.20 	Sec. 8. RETROACTIVE CLARIFICATION RELATING TO THE EARLY 
58.21 	RETIREMENT REDUCTION.
 58.22 	Notwithstanding Minnesota Statutes, section 354.44, subdivision 6, paragraph (f), the 
58.23 	references in Minnesota Statutes, section 354.44, subdivision 6, paragraph (f), to "age 59" 
58.24 	shall be read as "age 58" and to "age 60" shall be read as "at least age 59."

58.25 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2013, to the 
58.26 	day of enactment.

58.27 	Sec. 9. REPEALER.
 58.28 	Minnesota Statutes 2018, section 354.55, subdivision 10, is repealed.

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

59.1 	ARTICLE 9
59.2 	SESSION LAW FOR ONE PERSON

59.3 	Section 1. CREDIT FOR SERVICE IN PERA POLICE AND FIRE PLAN.
 59.4 		Subdivision 1.Service credit purchase. (a) Notwithstanding Minnesota Statutes, section 
59.5 	353.27, subdivision 12, an eligible person described in paragraph (b) is entitled to purchase 
59.6 	allowable service in the public employees police and fire retirement plan under Minnesota 
59.7 	Statutes, sections 353.63 to 353.68, for the period described in paragraph (b), clause (3), 
59.8 	upon making the payment described in subdivision 2 to the public employees police and 
59.9 	fire fund.
59.10 	(b) An eligible person is a person who:
59.11 	(1) was hired by the city of Maplewood as a casual part-time firefighter, firefighter/EMT, 
59.12 	or firefighter/paramedic after February 14, 2011, the effective date of resolutions approved 
59.13 	by the city council of the city of Maplewood requesting coverage by the public employees 
59.14 	police and fire retirement plan for casual part-time firefighters, as permitted by Minnesota 
59.15 	Statutes, section 353.64, subdivision 2;
59.16 	(2) received salary in excess of the monthly threshold then in effect under Minnesota 
59.17 	Statutes, section 353.01, subdivision 2b, paragraph (a), clause (1), so was not excluded from 
59.18 	coverage by the public employees police and fire retirement plan under this provision or 
59.19 	any other provision of Minnesota Statutes, section 353.01, subdivision 2b;
59.20 	(3) received salary for a period of service for the city of Maplewood from which the city 
59.21 	of Maplewood failed to deduct employee contributions as required by Minnesota Statutes, 
59.22 	section 353.65, subdivision 2;
59.23 	(4) has not accepted payment from the city of Maplewood in lieu of service credit under 
59.24 	the public employees police and fire retirement plan for the period described in clause (3); 
59.25 	and
59.26 	(5) no later than December 31, 2018, has made a request to the executive director of the 
59.27 	Public Employees Retirement Association to purchase allowable service pursuant to this 
59.28 	section for the period of service described in clause (3).
59.29 	(c) Upon receiving the payment described in subdivision 2, the executive director shall 
59.30 	credit the eligible person with allowable service for the period of service described in 
59.31 	paragraph (b), clause (3). The allowable service credit purchased under this section shall 
59.32 	not be used for the purpose of determining a disability benefit under Minnesota Statutes, 
59.33 	section 353.656.
60.1 		Subd. 2.Payment by eligible person. If the eligible person elects to purchase allowable 
60.2 	service credit as described in subdivision 1, the eligible person shall pay to the public 
60.3 	employees police and fire fund an amount equal to the total amount of the employee 
60.4 	contributions that the eligible person would have made to the public employees police and 
60.5 	fire fund based on the eligible person's total salary for the period of service described in 
60.6 	subdivision 1, paragraph (b), clause (3), plus interest, compounded annually, at the applicable 
60.7 	annual rate or rates specified in Minnesota Statutes, section 356.59, subdivision 3, from the 
60.8 	end of the year in which the contributions would have been made to the date on which the 
60.9 	payment is made. The amount of the required payment shall be determined by the executive 
60.10 	director of the Public Employees Retirement Association, who shall notify the eligible 
60.11 	person regarding the amount and the basis for determining the amount. Payment must be 
60.12 	made by the eligible person in a lump sum within 90 days of the effective date of this 
60.13 	subdivision.
60.14 		Subd. 3.Payment by city of Maplewood. Upon payment by the eligible person of the 
60.15 	amount required by subdivision 2, the city of Maplewood shall pay to the public employees 
60.16 	police and fire fund an amount equal to the total amount of the employer contributions that 
60.17 	would have been made to the public employees police and fire fund based on the eligible 
60.18 	person's total salary for the period of service described in subdivision 1, paragraph (b), 
60.19 	clause (3), plus interest, compounded annually, at the applicable annual rate or rates specified 
60.20 	in Minnesota Statutes, section 356.59, subdivision 3, from the end of the year in which the 
60.21 	contributions would have been made to the date on which the payment is made. The executive 
60.22 	director shall notify the city of Maplewood regarding the amount and the basis for 
60.23 	determining the amount. The payment shall be made within 60 days following receipt by 
60.24 	the public employees police and fire fund of the eligible person's payment under subdivision 
60.25 	2.
60.26 		Subd. 4.Collection of unpaid amounts. If the city of Maplewood fails to make all or 
60.27 	any portion of the payment required by subdivision 3, the executive director of the Public 
60.28 	Employees Retirement Association shall follow the procedures in Minnesota Statutes, 
60.29 	section 353.28, subdivision 6, to collect the amount not paid.

60.30 	EFFECTIVE DATE; LOCAL APPROVAL. Subdivisions 1, 2, and 4 are effective 
60.31 	the day following final enactment. Subdivision 3 is effective the day after the governing 
60.32 	body of the city of Maplewood and its chief clerical officer timely complete their compliance 
60.33 	with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

61.1 	ARTICLE 10
61.2 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS
61.3 	MAXIMUM LUMP-SUM PENSION AMOUNT INCREASE

61.4 	Section 1. Minnesota Statutes 2018, section 424A.02, subdivision 3, is amended to read:
61.5 		Subd. 3.Flexible service pension maximums. (a) Annually on or before August 1 as 
61.6 	part of the certification of the financial requirements and minimum municipal obligation 
61.7 	determined under section 424A.092, subdivision 4, or 424A.093, subdivision 5, as applicable, 
61.8 	the secretary or some other official of the relief association designated in the bylaws of each 
61.9 	defined benefit relief association shall calculate and certify to the governing body of the 
61.10 	applicable municipality the average amount of available financing per active covered 
61.11 	firefighter for the most recent three-year period. The amount of available financing includes 
61.12 	any amounts of fire state aid and police and firefighter retirement supplemental state aid 
61.13 	received or receivable by the relief association, any amounts of municipal contributions to 
61.14 	the relief association raised from levies on real estate or from other available revenue sources 
61.15 	exclusive of fire state aid, and one-tenth of the amount of assets in excess of the accrued 
61.16 	liabilities of the relief association calculated under section 424A.092, subdivision 2; 
61.17 	424A.093, subdivisions 2 and 4; or 424A.094, subdivision 2, if any.
61.18 	(b) The maximum service pension which the defined benefit relief association has 
61.19 	authority to provide for in its bylaws for payment to a member retiring after the calculation 
61.20 	date when the minimum age and service requirements specified in subdivision 1 are met 
61.21 	must be determined using the table in paragraph (c) or (d), whichever applies.
61.22 	(c) For a defined benefit relief association where the governing bylaws provide for a 
61.23 	monthly service pension to a retiring member, the maximum monthly service pension amount 
61.24 	per month for each year of service credited that may be provided for in the bylaws is the 
61.25 	greater of the service pension amount provided for in the bylaws on the date of the calculation 
61.26 	of the average amount of the available financing per active covered firefighter or the 
61.27 	maximum service pension figure corresponding to the average amount of available financing 
61.28 	per active covered firefighter:

61.29
61.3061.31	Minimum Average Amount of Available
Financing per Firefighter
	Maximum Service Pension Amount 
Payable per Month for Each Year of 
Service
	
61.32	$ ...
		$ .25
		
61.33	41
		.50
		
61.34	81
		1.00
		
61.35	122
		1.50
		
61.36	162
		2.00
		
62.1	203
		2.50
		
62.2	243
		3.00
		
62.3	284
		3.50
		
62.4	324
		4.00
		
62.5	365
		4.50
		
62.6	405
		5.00
		
62.7	486
		6.00
		
62.8	567
		7.00
		
62.9	648
		8.00
		
62.10	729
		9.00
		
62.11	810
		10.00
		
62.12	891
		11.00
		
62.13	972
		12.00
		
62.14	1053
		13.00
		
62.15	1134
		14.00
		
62.16	1215
		15.00
		
62.17	1296
		16.00
		
62.18	1377
		17.00
		
62.19	1458
		18.00
		
62.20	1539
		19.00
		
62.21	1620
		20.00
		
62.22	1701
		21.00
		
62.23	1782
		22.00
		
62.24	1823
		22.50
		
62.25	1863
		23.00
		
62.26	1944
		24.00
		
62.27	2025
		25.00
		
62.28	2106
		26.00
		
62.29	2187
		27.00
		
62.30	2268
		28.00
		
62.31	2349
		29.00
		
62.32	2430
		30.00
		
62.33	2511
		31.00
		
62.34	2592
		32.00
		
62.35	2673
		33.00
		
62.36	2754
		34.00
		
62.37	2834
		35.00
		
62.38	2916
		36.00
		
63.1	2997
		37.00
		
63.2	3078
		38.00
		
63.3	3159
		39.00
		
63.4	3240
		40.00
		
63.5	3321
		41.00
		
63.6	3402
		42.00
		
63.7	3483
		43.00
		
63.8	3564
		44.00
		
63.9	3645
		45.00
		
63.10	3726
		46.00
		
63.11	3807
		47.00
		
63.12	3888
		48.00
		
63.13	3969
		49.00
		
63.14	4050
		50.00
		
63.15	4131
		51.00
		
63.16	4212
		52.00
		
63.17	4293
		53.00
		
63.18	4374
		54.00
		
63.19	4455
		55.00
		
63.20	4536
		56.00
		
63.21	4617
		57.00
		
63.22	4698
		58.00
		
63.23	4779
		59.00
		
63.24	4860
		60.00
		
63.25	4941
		61.00
		
63.26	5022
		62.00
		
63.27	5103
		63.00
		
63.28	5184
		64.00
		
63.29	5265
		65.00
		
63.30	5346
		66.00
		
63.31	5427
		67.00
		
63.32	5508
		68.00
		
63.33	5589
		69.00
		
63.34	5670
		70.00
		
63.35	5751
		71.00
		
63.36	5832
		72.00
		
63.37	5913
		73.00
		
63.38	5994
		74.00
		
64.1	6075
		75.00
		
64.2	6156
		76.00
		
64.3	6237
		77.00
		
64.4	6318
		78.00
		
64.5	6399
		79.00
		
64.6	6480
		80.00
		
64.7	6561
		81.00
		
64.8	6642
		82.00
		
64.9	6723
		83.00
		
64.10	6804
		84.00
		
64.11	6885
		85.00
		
64.12	6966
		86.00
		
64.13	7047
		87.00
		
64.14	7128
		88.00
		
64.15	7209
		89.00
		
64.16	7290
		90.00
		
64.17	7371
		91.00
		
64.18	7452
		92.00
		
64.19	7533
		93.00
		
64.20	7614
		94.00
		
64.21	7695
		95.00
		
64.22	7776
		96.00
		
64.23	7857
		97.00
		
64.24	7938
		98.00
		
64.25	8019
		99.00
		
64.26	8100
		100.00
		
64.27	any amount in excess of
				
64.28	8100
		100.00
		
64.29 	(d) For a defined benefit relief association in which the governing bylaws provide for a 
64.30 	lump-sum service pension to a retiring member, the maximum lump-sum service pension 
64.31 	amount for each year of service credited that may be provided for in the bylaws is the greater 
64.32 	of the service pension amount provided for in the bylaws on the date of the calculation of 
64.33 	the average amount of the available financing per active covered firefighter or the maximum 
64.34 	service pension figure corresponding to the average amount of available financing per active 
64.35 	covered firefighter for the applicable specified period:

65.1
65.2	Minimum Average Amount of Available
Financing per Firefighter
	Maximum Lump-Sum Service Pension 
Amount Payable for Each Year of Service
	
65.3	$ ...
		$ 10
		
65.4	11
		20
		
65.5	16
		30
		
65.6	23
		40
		
65.7	27
		50
		
65.8	32
		60
		
65.9	43
		80
		
65.10	54
		100
		
65.11	65
		120
		
65.12	77
		140
		
65.13	86
		160
		
65.14	97
		180
		
65.15	108
		200
		
65.16	131
		240
		
65.17	151
		280
		
65.18	173
		320
		
65.19	194
		360
		
65.20	216
		400
		
65.21	239
		440
		
65.22	259
		480
		
65.23	281
		520
		
65.24	302
		560
		
65.25	324
		600
		
65.26	347
		640
		
65.27	367
		680
		
65.28	389
		720
		
65.29	410
		760
		
65.30	432
		800
		
65.31	486
		900
		
65.32	540
		1000
		
65.33	594
		1100
		
65.34	648
		1200
		
65.35	702
		1300
		
65.36	756
		1400
		
65.37	810
		1500
		
65.38	864
		1600
		
66.1	918
		1700
		
66.2	972
		1800
		
66.3	1026
		1900
		
66.4	1080
		2000
		
66.5	1134
		2100
		
66.6	1188
		2200
		
66.7	1242
		2300
		
66.8	1296
		2400
		
66.9	1350
		2500
		
66.10	1404
		2600
		
66.11	1458
		2700
		
66.12	1512
		2800
		
66.13	1566
		2900
		
66.14	1620
		3000
		
66.15	1672
		3100
		
66.16	1726
		3200
		
66.17	1753
		3250
		
66.18	1780
		3300
		
66.19	1820
		3375
		
66.20	1834
		3400
		
66.21	1888
		3500
		
66.22	1942
		3600
		
66.23	1996
		3700
		
66.24	2023
		3750
		
66.25	2050
		3800
		
66.26	2104
		3900
		
66.27	2158
		4000
		
66.28	2212
		4100
		
66.29	2265
		4200
		
66.30	2319
		4300
		
66.31	2373
		4400
		
66.32	2427
		4500
		
66.33	2481
		4600
		
66.34	2535
		4700
		
66.35	2589
		4800
		
66.36	2643
		4900
		
66.37	2697
		5000
		
66.38	2751
		5100
		
67.1	2805
		5200
		
67.2	2859
		5300
		
67.3	2913
		5400
		
67.4	2967
		5500
		
67.5	3021
		5600
		
67.6	3075
		5700
		
67.7	3129
		5800
		
67.8	3183
		5900
		
67.9	3237
		6000
		
67.10	3291
		6100
		
67.11	3345
		6200
		
67.12	3399
		6300
		
67.13	3453
		6400
		
67.14	3507
		6500
		
67.15	3561
		6600
		
67.16	3615
		6700
		
67.17	3669
		6800
		
67.18	3723
		6900
		
67.19	3777
		7000
		
67.20	3831
		7100
		
67.21	3885
		7200
		
67.22	3939
		7300
		
67.23	3993
		7400
		
67.24	4047
		7500
		
67.25	4101
		7600
		
67.26	4155
		7700
		
67.27	4209
		7800
		
67.28	4263
		7900
		
67.29	4317
		8000
		
67.30	4371
		8100
		
67.31	4425
		8200
		
67.32	4479
		8300
		
67.33	4533
		8400
		
67.34	4587
		8500
		
67.35	4641
		8600
		
67.36	4695
		8700
		
67.37	4749
		8800
		
67.38	4803
		8900
		
68.1	4857
		9000
		
68.2	4911
		9100
		
68.3	4965
		9200
		
68.4	5019
		9300
		
68.5	5073
		9400
		
68.6	5127
		9500
		
68.7	5181
		9600
		
68.8	5235
		9700
		
68.9	5289
		9800
		
68.10	5343
		9900
		
68.11	5397
		10,000
		
68.12	5451
		10,100
		
68.13	5505
		10,200
		
68.14	5559
		10,300
		
68.15	5613
		10,400
		
68.16	5667
		10,500
		
68.17	5721
		10,600
		
68.18	5775
		10,700
		
68.19	5829
		10,800
		
68.20	5883
		10,900
		
68.21	5937
		11,000
		
68.22	5991
		11,100
		
68.23	6045
		11,200
		
68.24	6099
		11,300
		
68.25	6153
		11,400
		
68.26	6207
		11,500
		
68.27	6261
		11,600
		
68.28	6315
		11,700
		
68.29	6369
		11,800
		
68.30	6423
		11,900
		
68.31	6477
		12,000
		
68.32	6531
		12,100
		
68.33	6585
		12,200
		
68.34	6639
		12,300
		
68.35	6693
		12,400
		
68.36	6747
		12,500
		
68.37	6801
		12,600
		
68.38	6855
		12,700
		
69.1	6909
		12,800
		
69.2	6963
		12,900
		
69.3	7017
		13,000
		
69.4	7071
		13,100
		
69.5	7125
		13,200
		
69.6	7179
		13,300
		
69.7	7233
		13,400
		
69.8	7287
		13,500
		
69.9	7341
		13,600
		
69.10	7395
		13,700
		
69.11	7449
		13,800
		
69.12	7503
		13,900
		
69.13	7557
		14,000
		
69.14	7611
		14,100
		
69.15	7665
		14,200
		
69.16	7719
		14,300
		
69.17	7773
		14,400
		
69.18	7827
		14,500
		
69.19	7881
		14,600
		
69.20	7935
		14,700
		
69.21	7989
		14,800
		
69.22	8043
		14,900
		
69.23	8097
		15,000
		
69.24	any amount in excess of
				
69.25
69.26	5397
8097
		10,000
15,000
		
69.27 	(e) For a defined benefit relief association in which the governing bylaws provide for a 
69.28 	monthly benefit service pension as an alternative form of service pension payment to a 
69.29 	lump-sum service pension, the maximum service pension amount for each pension payment 
69.30 	type must be determined using the applicable table contained in this subdivision.
69.31 	(f) If a defined benefit relief association establishes a service pension in compliance 
69.32 	with the applicable maximum contained in paragraph (c) or (d) and the minimum average 
69.33 	amount of available financing per active covered firefighter is subsequently reduced because 
69.34 	of a reduction in fire state aid or because of an increase in the number of active firefighters, 
69.35 	the relief association may continue to provide the prior service pension amount specified 
69.36 	in its bylaws, but may not increase the service pension amount until the minimum average 
70.1 	amount of available financing per firefighter under the table in paragraph (c) or (d), whichever 
70.2 	applies, permits.
70.3 	(g) No defined benefit relief association is authorized to provide a service pension in an 
70.4 	amount greater than the largest applicable flexible service pension maximum amount even 
70.5 	if the amount of available financing per firefighter is greater than the financing amount 
70.6 	associated with the largest applicable flexible service pension maximum.
70.7 	(h) The method of calculating service pensions must be applied uniformly for all years 
70.8 	of active service. Credit must be given for all years of active service except for caps on 
70.9 	service credit if so provided in the bylaws of the relief association.

70.10 	EFFECTIVE DATE. This section is effective January 1, 2021.

70.11 	Sec. 2. REPEALER.
 70.12 	Laws 2018, chapter 211, article 14, section 29, is repealed.

70.13 	EFFECTIVE DATE. This section is effective January 1, 2021.

70.14 	ARTICLE 11
70.15 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS
70.16 	ALLOCATION OF FIRE STATE AID

70.17 	Section 1. Minnesota Statutes 2019 Supplement, section 477B.04, subdivision 3, is amended 
70.18 	to read:
70.19 		Subd. 3.Deposit of state aid. (a) If the municipality or the independent nonprofit 
70.20 	firefighting corporation is covered by the voluntary statewide volunteer firefighter retirement 
70.21 	plan under chapter 353G, the executive director of the Public Employees Retirement 
70.22 	Association must credit the fire state aid against future municipal contribution requirements 
70.23 	under section 353G.08 and must notify the municipality or the independent nonprofit 
70.24 	firefighting corporation of the fire state aid so credited at least annually.
70.25 	(b) If (1) the municipality or the independent nonprofit firefighting corporation is not 
70.26 	covered by the voluntary statewide volunteer firefighter retirement plan,and is affiliated 
70.27 	with a duly incorporated firefighters relief association, (2) the relief association has filed a 
70.28 	financial report with the municipality pursuant to section 424A.014, subdivision 1 or 2, 
70.29 	whichever applies, and (3) there is not an aid allocation agreement under section 477B.042 
70.30 	in effect, then the treasurer of the municipality must, within 30 days after receipt, transmit 
70.31 	the fire state aid to the treasurer of the duly incorporated firefighters' relief association if 
70.32 	there is one organized and the association has filed a financial report with the municipality 
71.1 	pursuant to section 424A.014, subdivision 1 or 2, whichever applies. relief association. If 
71.2 	clauses (1) and (2) are satisfied and there is an aid allocation agreement under section 
71.3 	477B.042 in effect, then fire state aid must be transmitted as described in that section. If 
71.4 	the relief association has not filed a financial report with the municipality, then, regardless 
71.5 	of whether an aid allocation agreement is in effect, the treasurer of the municipality must 
71.6 	delay transmission of the fire state aid to the relief association until the complete financial 
71.7 	report is filed.
71.8 	(c) The treasurer of the municipality must deposit the fire state aid money in the municipal 
71.9 	treasury if (1) the municipality or independent nonprofit firefighting corporation is not 
71.10 	covered by the voluntary statewide volunteer firefighter retirement plan, (2) there is no 
71.11 	relief association organized, (3) the association has dissolved, or (4) the association has 
71.12 	been removed as trustees of state aid. The money may be disbursed from the municipal 
71.13 	treasury only for the purposes and in the manner set forth in section 424A.08 or for the 
71.14 	payment of the employer contribution requirement with respect to firefighters covered by 
71.15 	the public employees police and fire retirement plan under section 353.65, subdivision 3.

71.16 	EFFECTIVE DATE. This section is effective for aids payable in 2021 and thereafter.

71.17 	Sec. 2. [477B.042] ALLOCATION OF FIRE STATE AID FOR RELIEF 
71.18 	ASSOCIATIONS.
71.19 		Subdivision 1.Applicability. (a) This section applies to fire state aid payable each year 
71.20 	under section 477B.04, subdivision 3, paragraph (b), if, during the prior year, the municipality 
71.21 	or independent nonprofit firefighting corporation:
71.22 	(1) employs one or more volunteer firefighters covered by the relief association affiliated 
71.23 	with the municipality or independent nonprofit firefighting corporation under chapter 424A; 
71.24 	and
71.25 	(2) contributes on behalf of one or more firefighters to the public employees police and 
71.26 	fire retirement plan under chapter 353.
71.27 	(b) This section does not apply to police and firefighter supplemental state aid under 
71.28 	section 423A.022.
71.29 		Subd. 2.Allocation of fire state aid. (a) The municipality or independent nonprofit 
71.30 	firefighting corporation and the affiliated relief association may agree to allocate fire state 
71.31 	aid between the relief association and the public employees police and fire retirement plan 
71.32 	by entering into an aid allocation agreement described in subdivision 3.
72.1 	(b) If an aid allocation agreement has been filed with the state auditor and is in effect, 
72.2 	then within 30 days of receipt of the fire state aid the treasurer of the municipality must 
72.3 	transmit to the relief association the amount of the fire state aid as determined in the aid 
72.4 	allocation agreement. If a municipality receives fire state aid on behalf of an independent 
72.5 	nonprofit firefighting corporation, the municipality must also transmit any remaining fire 
72.6 	state aid to the independent nonprofit firefighting corporation.
72.7 	(c) The fire state aid allocated to the municipality or independent nonprofit firefighting 
72.8 	corporation may only be disbursed for the payment of employer contributions for firefighters 
72.9 	covered by the public employees police and fire retirement plan or for contributions to the 
72.10 	relief association and must be disbursed within 18 months of receipt by the municipality or 
72.11 	independent nonprofit firefighting corporation.
72.12 		Subd. 3.Aid allocation agreement. (a) An aid allocation agreement is a written 
72.13 	agreement that meets the following requirements:
72.14 	(1) the agreement specifies:
72.15 	(i) the percentage of the fire state aid, a dollar amount, or a formula for determining the 
72.16 	amount of fire state aid that will be transmitted to the relief association annually; and
72.17 	(ii) the period of time covered by the agreement and the date on which the agreement 
72.18 	expires; and
72.19 	(2) the agreement has been signed by:
72.20 	(i) an individual authorized to sign on behalf of the municipality or independent nonprofit 
72.21 	firefighting corporation; and
72.22 	(ii) the president of the relief association or its representative duly appointed for the 
72.23 	purposes of this section.
72.24 	(b) An aid allocation agreement is not effective unless filed with the state auditor under 
72.25 	subdivision 5.
72.26 		Subd. 4.Modifying or terminating the aid allocation agreement. (a) The parties to 
72.27 	the agreement may modify or terminate the aid allocation agreement, provided that the 
72.28 	modification or termination is in writing and signed by the parties.
72.29 	(b) If the amount of fire state aid paid to a municipality or independent nonprofit 
72.30 	firefighting corporation by the commissioner changes by an amount greater than 50 percent 
72.31 	of the prior year's amount, then the aid allocation agreement may be terminated by either 
72.32 	party to the agreement by providing written notice of termination to the other party.
73.1 	(c) Unless the aid allocation agreement provides otherwise, termination is effective for 
73.2 	the fire state aids payable in the calendar year after notice of termination has been given.
73.3 		Subd. 5.Filing requirement and remedy. (a) By March 1 of each year in which fire 
73.4 	state aid is to be allocated, the municipality or independent nonprofit firefighting corporation 
73.5 	must file a copy of the aid allocation agreement or modified agreement with the state auditor.
73.6 	(b) If an aid allocation agreement terminates by its own terms or for any other reason, 
73.7 	the municipality or independent nonprofit firefighting corporation must notify the Office 
73.8 	of the State Auditor in writing within 30 days after the termination date.
73.9 	(c) If the municipality or independent nonprofit firefighting corporation fails to file by 
73.10 	the deadline in paragraph (a), fire state aid payments must not be allocated, but must be 
73.11 	transmitted to the relief association until the agreement has been filed. If the state auditor 
73.12 	determines that an aid allocation agreement does not meet the requirements of subdivision 
73.13 	3, any future fire state aid payments must be transmitted to the relief association by the 
73.14 	municipality until the municipality files with the state auditor an aid allocation agreement 
73.15 	that satisfies the requirements under subdivision 3.

73.16 	EFFECTIVE DATE. This section is effective for aids payable in 2021 and thereafter.

73.17 	Sec. 3. GRANDFATHERING EXISTING AID ALLOCATION AGREEMENTS.
 73.18 	(a) Notwithstanding Minnesota Statutes, section 477B.042, subdivision 3, a written 
73.19 	document is an aid allocation agreement for the purposes of Minnesota Statutes, sections 
73.20 	477B.04, subdivision 3, and 477B.042, and remains effective as an aid allocation agreement 
73.21 	until the document ceases to be effective according to its own terms or is modified, if the 
73.22 	document:
73.23 	(1) determines the amount of fire state aid that will be transmitted by a municipality to 
73.24 	its affiliated fire relief association;
73.25 	(2) is effective under existing law on the day before the effective date of this section; 
73.26 	and
73.27 	(3) is a provision of a relief association's bylaws that was jointly approved by the relief 
73.28 	association and its affiliated municipality or a court-ordered settlement agreement entered 
73.29 	into by a relief association and its affiliated municipality.

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

74.1 	Sec. 4. CITY OF EAGAN; ALLOCATION OF FIRE STATE AID.
 74.2 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
74.3 	subdivision have the meanings given them unless the context clearly indicates otherwise.
74.4 	(b) "Agreement" means an agreement or contract between the city of Eagan and the 
74.5 	Eagan Firefighters Relief Association which specifies an amount of money that the city will 
74.6 	contribute to the relief association annually and permits the city to deposit fire state aid in 
74.7 	the city treasury.
74.8 	(c) "Fire state aid" means fire state aid paid to the city of Eagan by the commissioner of 
74.9 	revenue under Minnesota Statutes, section 477B.04, and does not include supplemental aid.
74.10 	(d) "Relief association" means the Eagan Firefighters Relief Association.
74.11 	(e) "Supplemental aid" means police and firefighter retirement supplemental state aid 
74.12 	under Minnesota Statutes, section 423A.022.
74.13 		Subd. 2.City of Eagan permitted to allocate. (a) Notwithstanding any law to the 
74.14 	contrary, if an agreement is in effect, then for the term of the agreement the city of Eagan 
74.15 	is not required to transmit fire state aid to the relief association except as provided for in 
74.16 	this section. Following receipt from the commissioner of revenue of fire state aid, the city 
74.17 	of Eagan must:
74.18 	(1) disburse fire state aid only as provided in clause (2) or for the payment of the employer 
74.19 	contribution requirement with respect to firefighters covered by the public employees police 
74.20 	and fire retirement plan under Minnesota Statutes, section 353.65; and
74.21 	(2) by the date required under the agreement, transmit to the relief association no less 
74.22 	than the amount required under the agreement.
74.23 	(b) The city of Eagan must transmit any supplemental aid it receives to the relief 
74.24 	association as required under Minnesota Statutes, section 423A.022. Supplemental aid 
74.25 	transmitted to the relief association may be credited against the amount the city is obligated 
74.26 	to pay under the agreement.
74.27 	(c) If any fire state aid is received by the city of Eagan and an agreement in not in effect, 
74.28 	then the fire state aid must be transmitted to the relief association in a manner consistent 
74.29 	with Minnesota Statutes, section 477B.04, and other applicable law.
74.30 		Subd. 3.Expiration. This section expires June 30, 2022.

74.31 	EFFECTIVE DATE. This section is effective the day following final enactment and 
74.32 	applies retroactively from January 1, 2020.

75.1 	Sec. 5. REPEALER.
 75.2 	Laws 1980, chapter 607, article xv, section 13, is repealed.

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

75.4 	ARTICLE 12
75.5 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS
75.6 	RELIEF ASSOCIATION DISSOLUTION
75.7 	AND RETIREMENT PLAN TERMINATION

75.8 	Section 1. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision 
75.9 	to read:
75.10 		Subd. 2a.Board of trustees. "Board of trustees" means the governing board of a relief 
75.11 	association.

75.12 	Sec. 2. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
75.13 	read:
75.14 		Subd. 3a.Defined benefit plan. "Defined benefit plan" means a retirement plan that 
75.15 	provides a retirement benefit that is a lump sum, the amount of which is determined by 
75.16 	multiplying the applicable lump-sum service pension amount under section 424A.02, 
75.17 	subdivision 3, paragraph (d), by years of service, or a monthly pension, the amount of which 
75.18 	is determined by multiplying the applicable monthly pension amount under section 424A.02, 
75.19 	subdivision 3, paragraph (c), by years of service. A defined benefit plan may provide both 
75.20 	a lump sum and a monthly pension.

75.21 	Sec. 3. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
75.22 	read:
75.23 		Subd. 3b.Defined benefit relief association. "Defined benefit relief association" means 
75.24 	a relief association that has established and administers a retirement plan that is a defined 
75.25 	benefit plan.

75.26 	Sec. 4. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
75.27 	read:
75.28 		Subd. 3c.Defined contribution plan. "Defined contribution plan" means a retirement 
75.29 	plan that provides a retirement benefit based on the member's individual account balance.

76.1 	Sec. 5. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
76.2 	read:
76.3 		Subd. 3d.Defined contribution relief association. "Defined contribution relief 
76.4 	association" means a relief association that has established and administers a retirement 
76.5 	plan that is a defined contribution plan.

76.6 	Sec. 6. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
76.7 	read:
76.8 		Subd. 3e.Member. (a) "Member" means a person:
76.9 	(1) who is a member of a fire department or independent nonprofit firefighting 
76.10 	corporation;
76.11 	(2) who has been credited with at least one year of service toward a retirement benefit 
76.12 	under the retirement plan of a relief association that is affiliated with the fire department or 
76.13 	independent nonprofit firefighting corporation; and
76.14 	(3) whose retirement benefit under the retirement plan has not yet been distributed in a 
76.15 	lump sum or has not yet begun to be distributed in periodic installments or as a monthly 
76.16 	pension.
76.17 	(b) A member may be an active firefighter, an inactive firefighter, or a former firefighter 
76.18 	who has a benefit under the retirement plan but has not become eligible to receive the benefit.

76.19 	Sec. 7. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
76.20 	read:
76.21 		Subd. 3f.Municipality. "Municipality" means a city or township that has established a 
76.22 	fire department with which the relief association is affiliated, a city or township that has 
76.23 	entered into a contract with an independent nonprofit firefighting corporation with which 
76.24 	the relief association is affiliated, or a city or township that has entered into a joint powers 
76.25 	agreement under section 471.59 with one or more cities or townships to operate a fire 
76.26 	department with which the relief association is affiliated. A reference in chapter 424B to 
76.27 	municipality in connection with a power that may be exercised by or a requirement that is 
76.28 	imposed on the municipality means each city or township that is party to a joint powers 
76.29 	agreement, unless the joint powers agreement identifies one city or township with the 
76.30 	authority to act on behalf of the other parties to the agreement or with the responsibility for 
76.31 	fulfilling requirements imposed on the other parties to the agreement.

77.1 	Sec. 8. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
77.2 	read:
77.3 		Subd. 3g.Other benefit recipient. "Other benefit recipient" means:
77.4 	(1) a person who is entitled to receive all or a portion of the benefit of a member under 
77.5 	a retirement plan due to the person having one of the following relationships to the member:
77.6 	(i) the member's surviving spouse;
77.7 	(ii) the member's former spouse who is the alternate payee under a state domestic relations 
77.8 	order that meets the requirements of section 414(p) of the Internal Revenue Code or who 
77.9 	is a recipient of a court-ordered distribution of marital property, as provided in section 
77.10 	518.58; or
77.11 	(iii) a nonspousal beneficiary of the member; or
77.12 	(2) the member's estate.

77.13 	Sec. 9. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
77.14 	read:
77.15 		Subd. 4a.Relief association. (a) "Relief association" or "volunteer firefighter relief 
77.16 	association" means a nonprofit corporation incorporated under or governed by chapter 317A 
77.17 	that is a governmental entity that receives and manages public money to provide retirement 
77.18 	benefits for individuals providing the governmental services of firefighting and emergency 
77.19 	first response, is subject to chapter 424A, and is affiliated with:
77.20 	(1) a fire department established by municipal ordinance;
77.21 	(2) an independent nonprofit firefighting corporation incorporated under chapter 317A; 
77.22 	or
77.23 	(3) a fire department operated as or by a joint powers entity.
77.24 	(b) Relief association or volunteer firefighters relief association does not mean the 
77.25 	voluntary statewide volunteer firefighter retirement plan governed by chapter 353G.

77.26 	Sec. 10. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision 
77.27 	to read:
77.28 		Subd. 5a.Required contribution. "Required contribution" means a contribution made 
77.29 	by the municipality to the special fund of a relief association in satisfaction of a minimum 
77.30 	municipal obligation required under section 424A.092 or 424A.093.

78.1 	Sec. 11. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision 
78.2 	to read:
78.3 		Subd. 5b.Retiree in pay status. "Retiree in pay status" means a former member who 
78.4 	left employment or service as an active firefighter, has reached at least age 50, and is 
78.5 	receiving a monthly pension or periodic installment payments from a retirement plan.

78.6 	Sec. 12. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision 
78.7 	to read:
78.8 		Subd. 5c.Retirement benefit. "Retirement benefit" means the benefit to which a member 
78.9 	is entitled under a retirement plan.

78.10 	Sec. 13. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision 
78.11 	to read:
78.12 		Subd. 5d.Retirement plan. "Retirement plan" means the defined benefit plan or defined 
78.13 	contribution plan established and administered by a relief association.

78.14 	Sec. 14. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision 
78.15 	to read:
78.16 		Subd. 7.Surplus. "Surplus" means the amount by which the assets in a defined benefit 
78.17 	plan exceed accrued liabilities.

78.18 	Sec. 15. [424B.22] RELIEF ASSOCIATION DISSOLUTION AND RETIREMENT 
78.19 	PLAN TERMINATION.
78.20 		Subdivision 1.Application. (a) Notwithstanding any laws to the contrary, this section 
78.21 	applies to:
78.22 	(1) the termination of a retirement plan established and administered by a relief 
78.23 	association, whether or not the relief association is also dissolved or eliminated; and
78.24 	(2) the dissolution of a relief association that is not consolidating with another relief 
78.25 	association under sections 424B.01 to 424B.10.
78.26 	This section does not apply to the dissolution of a relief association or the termination 
78.27 	of a retirement plan that occurs due to the change in retirement coverage from a retirement 
78.28 	plan administered by a relief association to the Public Employees Retirement Association 
78.29 	statewide volunteer firefighter plan under section 353G.06.
79.1 	(b) To terminate a retirement plan, the board of trustees must comply with subdivisions 
79.2 	3, 5 to 11, and, if desired, subdivision 4.
79.3 	(c) To dissolve a relief association, the board of trustees of the relief association must:
79.4 	(1) terminate the retirement plan in accordance with this section;
79.5 	(2) determine all legal obligations of the special and general funds of the relief association, 
79.6 	as required by subdivision 5;
79.7 	(3) take the actions required by subdivision 12; and
79.8 	(4) comply with the requirements governing dissolution of nonprofit corporations under 
79.9 	chapter 317A.
79.10 	(d) A relief association that terminates its retirement plan must liquidate its special fund 
79.11 	as provided in subdivision 8, but need not liquidate its general fund if the relief association 
79.12 	is not being dissolved.
79.13 		Subd. 2.Involuntary dissolution and termination. (a) A relief association is dissolved 
79.14 	and the retirement plan administered by the relief association is terminated automatically 
79.15 	if:
79.16 	(1) the fire department affiliated with a relief association is dissolved by action of the 
79.17 	governing body of the municipality in which the fire department is located or by the 
79.18 	governing body of the independent nonprofit firefighting corporation, whichever applies; 
79.19 	or
79.20 	(2) the fire department affiliated with a relief association has terminated the employment 
79.21 	or services of all active firefighters covered by the relief association.
79.22 	(b) An involuntary termination of a relief association under this subdivision is effective 
79.23 	on the December 31 that is at least eight months after the date on which the fire department 
79.24 	is dissolved or the termination of employment or services of all active firefighters occurs.
79.25 	(c) The retirement plan administered by a relief association is terminated automatically 
79.26 	if the relief association is dissolved, effective on the date of the dissolution of the relief 
79.27 	association.
79.28 		Subd. 3.Retirement plan termination date, full vesting, and forfeitures. (a) Unless 
79.29 	subdivision 2 applies, the effective date of the termination of a retirement plan is the effective 
79.30 	date of the dissolution of the relief association or, if the relief association is not being 
79.31 	dissolved, the end of the calendar year in which the employment or services of all active 
80.1 	firefighters has been terminated, unless the board of trustees of the relief association approves 
80.2 	a different termination date.
80.3 	(b) As of the earlier of the retirement plan termination date or the date on which the 
80.4 	employment or services of all active firefighters have been terminated, each member becomes 
80.5 	fully (100 percent) vested in the member's retirement benefit under the retirement plan, 
80.6 	notwithstanding any bylaws or laws to the contrary, except as provided in paragraph (c).
80.7 	(c) If the relief association is a defined contribution relief association, the account of 
80.8 	each member who becomes 100 percent vested under paragraph (b) shall include an allocation 
80.9 	of any forfeiture that is required, under the bylaws of the relief association, to occur on or 
80.10 	as of the end of the calendar year during which the termination of the retirement plan is 
80.11 	effective, if the member is entitled to an allocation of forfeitures under the bylaws. Any 
80.12 	account so forfeited shall not be included in the retirement benefits that become 100 percent 
80.13 	vested under paragraph (b).
80.14 		Subd. 4.Benefit increase. (a) Notwithstanding section 424A.02, subdivision 10, the 
80.15 	board of trustees of a relief association may increase the benefit amount under a defined 
80.16 	benefit relief association without the consent of the affiliated municipality or independent 
80.17 	nonprofit firefighting corporation, as provided in this subdivision.
80.18 	(b) If the retirement plan being terminated is a defined benefit plan, the board of trustees 
80.19 	may approve an amendment to the bylaws of the relief association to increase the lump-sum 
80.20 	or monthly pension amount or both the lump and monthly pension amount, if the relief 
80.21 	association offers both, up to 125 percent of the largest maximum lump-sum service pension 
80.22 	amount or service pension amount payable per month in effect under paragraphs (c) or (d), 
80.23 	respectively, of section 424A.02, subdivision 3, without regard to the relief association's 
80.24 	minimum average amount of available financing per firefighter. The amount by which the 
80.25 	lump-sum or monthly pension amount is increased must not cause the liabilities of the 
80.26 	retirement plan to exceed the value of the assets, after taking into account full vesting as 
80.27 	required under subdivision 3 and any administrative expenses.
80.28 	(c) The board of trustees shall specify whether the benefit increase will apply to only 
80.29 	members active as of the date of the termination of the retirement plan or whether the benefit 
80.30 	increase will apply to all members, including members who are not active as of the plan 
80.31 	termination date.
80.32 		Subd. 5.Determination of assets and liabilities. (a) The board of trustees shall determine 
80.33 	the following as of the date of termination of the retirement plan:
80.34 	(1) the fair market value of the assets of the special fund;
81.1 	(2) the present value of each member's accrued benefit, taking into account full vesting 
81.2 	under subdivision 3 and any increased lump-sum or monthly benefit level approved under 
81.3 	subdivision 4;
81.4 	(3) the present value of any benefit remaining to be paid to each retiree in pay status, if 
81.5 	any; and
81.6 	(4) administrative expenses incurred or reasonably anticipated to be incurred through 
81.7 	the date on which all retirement benefits have been distributed or transferred or, if later, the 
81.8 	effective date of the dissolution of the relief association.
81.9 	(b) The board of trustees shall compile a schedule that includes the following information:
81.10 	(1) the name of each member and retiree in pay status to whom a benefit or pension is 
81.11 	or will be owed;
81.12 	(2) the name of each other benefit recipient to whom a benefit or pension is or will be 
81.13 	owed; and
81.14 	(3) for each individual described in clauses (1) and (2), the amount of the benefit or 
81.15 	pension to which the individual is entitled under the bylaws of the relief association, taking 
81.16 	into account the changes required or permitted by this section, the corresponding number 
81.17 	of years of service on which the benefit or pension is based, and the earliest date on which 
81.18 	the benefit or pension would have been payable under the bylaws of the relief association.
81.19 	(c) If the relief association is dissolving, in addition to the determination under paragraph 
81.20 	(a) for the retirement plan, the board of trustees shall determine, as of the effective date of 
81.21 	the dissolution of the relief association, the legal obligations of the general fund of the relief 
81.22 	association.
81.23 		Subd. 6.Investment of assets while termination is pending. To minimize the risk of 
81.24 	investment losses between the termination date and the date benefits will begin to be 
81.25 	distributed, the board of trustees shall invest the assets in the special fund in low-risk 
81.26 	investments, to the extent consistent with its fiduciary duty under chapter 356A.
81.27 		Subd. 7.Allocation of surplus. (a) If the retirement plan is a defined benefit plan and 
81.28 	if, after completing the determination of assets, liabilities, and administrative expenses under 
81.29 	subdivision 5, there is a surplus, the board of trustees shall transfer to the affiliated 
81.30 	municipality the lesser of (1) the amount of the surplus, or (2) the sum of all required 
81.31 	contributions, without investment earnings or interest thereon, made by the municipality to 
81.32 	the relief association during the year in which the termination of the retirement plan occurs 
81.33 	or during the preceding nine years.
82.1 	(b) If the affiliated municipality did not make any required contributions to the relief 
82.2 	association during the current or preceding nine years or if, after the transfer described in 
82.3 	paragraph (a), there is surplus remaining, the relief association and the municipality will 
82.4 	mutually agree on an allocation between them of the remaining surplus.
82.5 	(c) If, within 180 days of the date of termination of the retirement plan, the municipality 
82.6 	and relief association have not reached an agreement on the allocation of the surplus under 
82.7 	paragraph (b), then 50 percent of the surplus shall be retained by the relief association and 
82.8 	50 percent of the surplus shall be transferred to the affiliated municipality.
82.9 	(d) Any surplus retained by the relief association under paragraph (c) shall be allocated 
82.10 	among all members eligible to share in the surplus in the same proportion that the present 
82.11 	value of the accrued benefit for each eligible member bears to the total present value of the 
82.12 	accrued benefits of all members eligible to share in the surplus, and each eligible member's 
82.13 	benefit, as determined under subdivision 5, paragraph (a), clause (2), shall be increased by 
82.14 	the member's share of the surplus. The board of trustees shall determine eligibility to share 
82.15 	in the surplus, which may include any of the following, in addition to firefighters active as 
82.16 	of the date on which members became 100 percent vested:
82.17 	(1) inactive firefighters;
82.18 	(2) former firefighters with a deferred benefit under the retirement plan; and
82.19 	(3) retirees in pay status and any other firefighters who, within the last three years or 
82.20 	such other number of years as determined by the board of trustees, separated from active 
82.21 	service and (i) received their retirement benefit, or (ii) began to receive distribution of a 
82.22 	retirement benefit in installments or as a monthly pension.
82.23 	If the board of trustees decides to include the individuals described in clause (3) in the 
82.24 	allocation of the surplus, the board of trustees shall modify the method for allocating the 
82.25 	surplus to take into account such individuals.
82.26 	(e) Any amount of surplus transferred to the affiliated municipality under this subdivision 
82.27 	may only be used for the purposes described in section 424A.08, paragraph (a) or (b).
82.28 		Subd. 8.Immediate distribution of retirement benefits and payment of all other 
82.29 	obligations. (a) The board of trustees shall liquidate the assets of the special fund and pay 
82.30 	retirement benefits and administrative expenses under the retirement plan within 210 days 
82.31 	after the effective date of the termination of the retirement plan.
82.32 	(b) If the retirement plan is a defined benefit plan that pays lump-sum benefits or a 
82.33 	defined contribution plan, without regard to whether the member has attained age 50, each 
83.1 	member and other benefit recipient shall be permitted to elect an immediate distribution or 
83.2 	a direct rollover of the member's benefit to an eligible retirement plan as permitted under 
83.3 	section 356.635, subdivisions 3 to 7, if the benefit is an eligible rollover distribution as 
83.4 	defined in section 356.635, subdivisions 4 and 5.
83.5 	(c) If the retirement plan is a defined benefit plan that pays monthly pension benefits, 
83.6 	the board of trustees shall, at the election of the member or other benefit recipient, purchase 
83.7 	an annuity contract under section 424A.015, subdivision 3, naming the member or other 
83.8 	benefit recipient, as applicable, as the insured or distribute a lump sum amount that is equal 
83.9 	to the present value of the monthly pension benefits to which the member or other benefit 
83.10 	recipient is entitled. If an annuity is elected by the member or other benefit recipient, the 
83.11 	annuity shall provide for commencement at a date elected by the insured, to be paid as an 
83.12 	annuity for the life of the insured. Legal title to the annuity contract shall be transferred to 
83.13 	the insured. If a lump sum is elected, the option under paragraph (b) to take an immediate 
83.14 	distribution or a direct rollover shall apply.
83.15 	(d) The board of trustees shall complete the distribution of all assets of the special fund 
83.16 	by making any remaining distributions or transfers as required under subdivision 9 on behalf 
83.17 	of members or other benefit recipients who cannot be located or are unresponsive and paying 
83.18 	any remaining administrative expenses related to the termination of the plan.
83.19 		Subd. 9.Missing members. (a) For purposes of this subdivision, the terms defined in 
83.20 	this subdivision have the meanings given them.
83.21 	(b) "Retirement benefit" means:
83.22 	(1) the member's account balance if the retirement plan is a defined contribution plan;
83.23 	(2) the member's lump sum benefit if the retirement plan is a defined benefit plan that 
83.24 	pays a lump sum; or
83.25 	(3) an amount equal to the present value of the member's benefit if the retirement plan 
83.26 	is a defined benefit plan that pays a monthly annuity.
83.27 	(c) "Individual retirement account" means an account that satisfies the requirements of 
83.28 	section 408(a) of the Internal Revenue Code which is established by an officer of the relief 
83.29 	association in the name of the member or other benefit recipient at a federally insured 
83.30 	financial institution.
83.31 	(d) If the board of trustees cannot locate a member or other benefit recipient or receives 
83.32 	no response to an offer to distribute a retirement benefit, the board of trustees shall make a 
83.33 	diligent effort to obtain a current address or other contact information as follows:
84.1 	(1) send a notice to the address on file for the member or other benefit recipient using 
84.2 	certified mail;
84.3 	(2) check with the Minnesota State Fire Department Association, the municipality, and 
84.4 	any other employer of the member;
84.5 	(3) check with the member's designated beneficiary on file with the relief association; 
84.6 	and
84.7 	(4) use one or more of the Internet search tools that are free of charge.
84.8 	(e) If the board of trustees is unable to locate the member or other benefit recipient after 
84.9 	taking actions described in paragraph (d), the board of trustees shall transfer the retirement 
84.10 	benefit to an individual retirement account or consider the retirement benefit abandoned 
84.11 	and deposit funds in the amount of the retirement benefit with the commissioner of commerce 
84.12 	under chapter 345. The board of trustees may deposit a retirement benefit with the 
84.13 	commissioner of commerce under chapter 345, notwithstanding any laws to the contrary, 
84.14 	including Minnesota Statutes, section 345.381.
84.15 		Subd. 10.Supplemental benefits. Within 60 days after the distribution of benefits under 
84.16 	subdivision 8, the municipality or independent nonprofit firefighting corporation with which 
84.17 	the fire department is affiliated shall pay supplemental benefits under section 424A.10 to 
84.18 	each member and survivor who satisfies the requirements of section 424A.10, subdivision 
84.19 	2, if the member is at least age 50. The commissioner of revenue shall reimburse the 
84.20 	municipality or independent nonprofit firefighting corporation for all supplemental benefits 
84.21 	paid as provided in section 424A.10, subdivision 3.
84.22 		Subd. 11.Notice of retirement plan termination. The board of trustees shall notify 
84.23 	the commissioner of revenue and the state auditor that the retirement plan is being terminated 
84.24 	no later than 30 days before the effective date of the termination of the retirement plan and 
84.25 	provide any information the commissioner or state auditor may require.
84.26 		Subd. 12.Wind-up of the relief association. The relief association is dissolved effective 
84.27 	on the date that the board of trustees completes the following actions:
84.28 	(1) prepares and files with the state auditor final audited financial statements, pursuant 
84.29 	to section 424A.014, subdivision 1, or, if applicable, the certified financial statement, 
84.30 	pursuant to section 424A.014, subdivision 2;
84.31 	(2) liquidates the general fund and settles all legal obligations of the general fund as 
84.32 	determined under subdivision 5;
85.1 	(3) transfers the records of the relief association to the chief administrative officer of 
85.2 	the affiliated municipality; and
85.3 	(4) notifies the commissioner of revenue, the state auditor, and the secretary of state of 
85.4 	the dissolution no later than 30 days before the effective date of the dissolution.

85.5 	Sec. 16. REPEALER.
 85.6 	Minnesota Statutes 2018, sections 424B.20; and 424B.21, are repealed.

85.7 	Sec. 17. EFFECTIVE DATE.
 85.8 	Sections 1 to 16 are effective the day following final enactment.

85.9 	ARTICLE 13
85.10 	BROOKLYN PARK FIREFIGHTERS' RELIEF ASSOCIATION
85.11 	DISSOLUTION OF THE RELIEF ASSOCIATION AND PLAN TERMINATION

85.12 	Section 1. BROOKLYN PARK FIREFIGHTERS' RELIEF ASSOCIATION 
85.13 	DISSOLUTION AND PLAN TERMINATION.
 85.14 	(a) Notwithstanding any provision of Minnesota Statutes, chapters 424A, 424B, or any 
85.15 	other law to the contrary, the retirement plan administered by the Brooklyn Park Firefighters' 
85.16 	Relief Association is terminated and the relief association is dissolved in accordance with 
85.17 	the provisions of this section following the payment by the relief association of all benefits, 
85.18 	the settlement of all legal obligations, and the distribution of all remaining assets of the 
85.19 	relief association.
85.20 	(b) For the purposes of this section:
85.21 	(1) "alternate payee" means a spouse, former spouse, child, or other dependent of a 
85.22 	volunteer firefighter, who is recognized by a divorce decree or domestic relations order as 
85.23 	having a right to receive all or a portion of the volunteer firefighter's account;
85.24 	(2) "city" means the city of Brooklyn Park;
85.25 	(3) "relief association" means the Brooklyn Park Firefighters' Relief Association;
85.26 	(4) "retirement plan" means the defined contribution retirement plan sponsored, 
85.27 	administered, and maintained by the relief association; and
85.28 	(5) "volunteer firefighter" means a volunteer firefighter, as defined in Minnesota Statutes, 
85.29 	section 424A.001, subdivision 10, employed or previously employed by the city and who 
85.30 	has an account in the retirement plan.
86.1 	(c) The retirement plan is terminated and the volunteer firefighters become 100 percent 
86.2 	vested in their accounts in the retirement plan effective on December 31, 2019, or, if earlier, 
86.3 	the date that the city terminates the employment of the last of its volunteer firefighters. For 
86.4 	purposes of this section, the city will be considered to have terminated the employment of 
86.5 	a volunteer firefighter even if the city hires or continues to employ the volunteer firefighter 
86.6 	as a part-time or full-time city employee performing firefighting or other services.
86.7 	(d) The account of each volunteer firefighter who becomes fully vested under paragraph 
86.8 	(c) shall include an allocation of any forfeiture that is required to occur on December 31, 
86.9 	2019, if the volunteer firefighter is entitled to such allocation under the bylaws of the relief 
86.10 	association. Any account so forfeited shall not be included in the accounts that become fully 
86.11 	vested under paragraph (c).
86.12 	(e) The relief association is dissolved effective on the date that the relief association 
86.13 	completes the following actions:
86.14 	(1) prepares and files with the Office of the State Auditor final audited financial 
86.15 	statements, pursuant to Minnesota Statutes, section 424A.014, subdivision 1;
86.16 	(2) satisfies the requirements of Minnesota Statutes, section 424B.20, subdivision 3, 
86.17 	including the settlement of legal obligations owed to any party to the extent authorized by 
86.18 	Minnesota Statutes, section 424A.05, subdivision 3;
86.19 	(3) distributes the account of each volunteer firefighter, regardless of the age of the 
86.20 	volunteer firefighter, and each alternate payee as soon as possible after enactment. 
86.21 	Distribution must be made in the form of a lump sum payment or direct rollover, at the 
86.22 	election of the volunteer firefighter or alternate payee; and
86.23 	(4) satisfies the requirements of Minnesota Statutes, section 424B.20, subdivision 5, 
86.24 	including the transfer of records to the city and notice to the commissioner of revenue, the 
86.25 	state auditor, and the secretary of state.
86.26 	(f) Within 60 days after the distribution of the accounts under paragraph (e), clause (3), 
86.27 	the city shall (i) pay a supplemental lump sum benefit to each volunteer firefighter and 
86.28 	survivor who satisfies the requirements of Minnesota Statutes, section 424A.10, subdivision 
86.29 	2, if the volunteer firefighter is at least age 50, and (ii) reimburse the relief association for 
86.30 	any supplemental lump sum benefits paid by the relief association during 2020.
86.31 	(g) The city shall file for and the commissioner of revenue shall reimburse the city 
86.32 	pursuant to Minnesota Statutes, section 424A.10, subdivision 3, for the supplemental benefits 
86.33 	paid or reimbursed under paragraph (f).
87.1 	(h) The city is subject to Minnesota Statutes, section 477B.04, subdivision 3, paragraph 
87.2 	(c), for calendar year 2020 with respect to any fire state aid it receives, including the 
87.3 	requirement that it disburse the fire state aid solely for the purposes authorized by Minnesota 
87.4 	Statutes, section 424A.08.

87.5 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective the day after 
87.6 	the Brooklyn Park City Council and its chief clerical officer timely complete their compliance 
87.7 	with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

87.8 	ARTICLE 14
87.9 	RAMSEY VOLUNTEER FIREFIGHTERS' RELIEF ASSOCIATION
87.10 	DIVISION OF THE RELIEF ASSOCIATION

87.11 	Section 1. DIVISION OF RAMSEY VOLUNTEER FIREFIGHTERS' RELIEF 
87.12 	ASSOCIATION.
 87.13 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
87.14 	section have the meanings given them.
87.15 	(b) "Account balance" means the account established for a member under the Ramsey 
87.16 	relief association, to which an allocation of fire state aid, contributions, forfeitures, and net 
87.17 	investment earnings have been credited for every year the member was eligible to receive 
87.18 	such funding under the bylaws of the Ramsey relief association.
87.19 	(c) "Inactive or deferred Nowthen firefighter" means a Ramsey firefighter who, when 
87.20 	the firefighter was an active firefighter, was assigned to the Nowthen fire station and whose 
87.21 	account in the Ramsey relief association has not yet been distributed or forfeited as provided 
87.22 	under the bylaws of the Ramsey relief association.
87.23 	(d) "Joint powers agreement" means the city of Ramsey and city of Nowthen joint powers 
87.24 	fire protection agreement.
87.25 	(e) "Nowthen firefighter" means a firefighter who is a member of the Ramsey relief 
87.26 	association and who is hired to provide firefighting services to the city of Nowthen by the 
87.27 	city of Nowthen or a municipality with which the city of Nowthen enters into a joint powers 
87.28 	agreement or an independent nonprofit firefighting corporation that provides firefighting 
87.29 	services to the city of Nowthen.
87.30 	(f) "Nowthen relief association" means a volunteer firefighters relief association to be 
87.31 	established by the city of Nowthen or a volunteer firefighters relief association affiliated 
87.32 	with a municipality with which the city of Nowthen enters into a joint powers agreement 
87.33 	or a volunteer firefighters relief association affiliated with an independent nonprofit 
88.1 	firefighting corporation that provides firefighting services to the city of Nowthen or an 
88.2 	account in the Public Employees Retirement Association statewide volunteer firefighter 
88.3 	plan, as directed by the city of Nowthen.
88.4 	(g) "Other benefit recipient of a Nowthen firefighter" means:
88.5 	(1) a person who is entitled to receive all or a portion of a Nowthen firefighter's account 
88.6 	under the Ramsey relief association due to the person having one of the following 
88.7 	relationships to the Nowthen firefighter:
88.8 	(i) surviving spouse;
88.9 	(ii) former spouse who is the alternate payee under a state domestic relations order that 
88.10 	meets the requirements of section 414(p) of the federal Internal Revenue Code of 1986, as 
88.11 	amended, or who is a recipient of a court-ordered distribution of marital property, as provided 
88.12 	in Minnesota Statutes, section 518.58; or
88.13 	(iii) nonspousal beneficiary; or
88.14 	(2) the estate of a Nowthen firefighter.
88.15 	(h) "Ramsey firefighter" means a firefighter who is or was an employee of the city of 
88.16 	Ramsey, is a member of the Ramsey relief association, and provides or provided firefighting 
88.17 	services to the city of Ramsey or the city of Nowthen.
88.18 	(i) "Ramsey relief association" means the city of Ramsey Volunteer Firefighters' Relief 
88.19 	Association.
88.20 		Subd. 2.Application. This section applies, notwithstanding any provision of Minnesota 
88.21 	Statutes, chapter 424A or 424B, if all of the following occurs:
88.22 	(1) the joint powers agreement expires or is terminated by either party;
88.23 	(2) the city of Nowthen establishes a fire department or enters into a joint powers 
88.24 	agreement with another municipality to provide firefighting services for the city of Nowthen 
88.25 	or enters into an agreement with an independent nonprofit firefighting corporation to provide 
88.26 	firefighting services to the city of Nowthen;
88.27 	(3) the city of Nowthen establishes a volunteer firefighters relief association or the 
88.28 	municipality with which the city of Nowthen enters into a joint powers agreement is affiliated 
88.29 	with a volunteer firefighters relief association or the independent nonprofit firefighting 
88.30 	corporation with which the city of Nowthen enters into an agreement to provide firefighting 
88.31 	services for the city of Nowthen is affiliated with a volunteer firefighters relief association 
89.1 	or the city of Nowthen joins the Public Employees Retirement Association statewide 
89.2 	volunteer firefighter plan; and
89.3 	(4) the Nowthen relief association includes as members one or more firefighters whose 
89.4 	employment with the city of Ramsey terminates on or before December 31, 2021, and who 
89.5 	are hired as firefighters by:
89.6 	(i) the city of Nowthen;
89.7 	(ii) a municipality with which the city of Nowthen enters into a joint powers agreement; 
89.8 	or
89.9 	(iii) an independent nonprofit firefighting corporation that provides firefighting services 
89.10 	to the city of Nowthen.
89.11 		Subd. 3.Transfer of Nowthen firefighter accounts. (a) By the sixtieth day after the 
89.12 	satisfaction of the conditions described in subdivision 2, the Ramsey relief association shall 
89.13 	transfer to the Nowthen relief association the account balance for each Nowthen firefighter, 
89.14 	each inactive or deferred Nowthen firefighter, and any other benefit recipient of a Nowthen 
89.15 	firefighter in accordance with this subdivision.
89.16 	(b) If the city of Ramsey terminates the employment of one or more firefighters who 
89.17 	become Nowthen firefighters during 2020, the Ramsey relief association shall transfer, by 
89.18 	the end of February 2021, the account balances for each Nowthen firefighter, each inactive 
89.19 	or deferred Nowthen firefighter, and each other benefit recipient of a Nowthen firefighter. 
89.20 	The transfers shall occur after the accounting has been completed for the 2020 calendar 
89.21 	year and all fire state aid, contributions, forfeitures, net investment income, and administrative 
89.22 	expenses during 2020 and as of the 2020 calendar year end have been credited, in accordance 
89.23 	with the bylaws of the Ramsey relief association. Notwithstanding any provision in the 
89.24 	bylaws of the Ramsey relief association, a Nowthen firefighter whose employment is 
89.25 	terminated during 2020 shall be considered for purposes of allocating fire state aid, 
89.26 	contributions, and forfeitures as having worked 12 active service months for 2020.
89.27 	(c) If the city of Ramsey terminates the employment of one or more firefighters who 
89.28 	become Nowthen firefighters during 2021, the Ramsey relief association shall transfer, by 
89.29 	the end of February 2022, the account balances for each Nowthen firefighter and for any 
89.30 	inactive or deferred Nowthen firefighter and any other benefit recipient of a Nowthen 
89.31 	firefighter whose account balance was not transferred under paragraph (b) in 2021. The 
89.32 	transfers shall occur after the accounting has been completed for the 2021 calendar year 
89.33 	and all fire state aid, contributions, forfeitures, net investment income, and administrative 
89.34 	expenses during 2021 and as of the 2021 calendar year end have been credited, in accordance 
90.1 	with the bylaws of the Ramsey relief association. Notwithstanding any provision in the 
90.2 	bylaws of the Ramsey relief association, a Nowthen firefighter whose employment is 
90.3 	terminated during 2021 shall be considered for purposes of allocating fire state aid, 
90.4 	contributions, and forfeitures as having worked 12 active service months for 2021.
90.5 	(d) The transfer of account balances under this subdivision shall be considered authorized 
90.6 	disbursements from the special fund of the Ramsey relief association for purposes of 
90.7 	Minnesota Statutes, section 424A.05, subdivision 3.
90.8 	(e) The Ramsey relief association shall transfer records to the Nowthen relief association 
90.9 	regarding service, vesting service, and account activity for each Nowthen firefighter, inactive 
90.10 	or deferred Nowthen firefighter, or other benefit recipient whose account balance is 
90.11 	transferred.
90.12 		Subd. 4.Relief association general fund assets. When the Ramsey relief association 
90.13 	transfers the account balances under subdivision 3, the Ramsey relief association shall also 
90.14 	transfer a proportionate share of the assets in the general fund of the Ramsey relief association 
90.15 	to the general fund of the Nowthen relief association. The proportion shall be equal to the 
90.16 	ratio that the total value of the account balances transferred to the Nowthen relief association 
90.17 	bears to the total value of all account balances in the Ramsey relief association on the day 
90.18 	immediately preceding the date of transfer.
90.19 		Subd. 5.Fire state aid. If subdivision 3, paragraph (b), applies, the city of Ramsey shall 
90.20 	transfer to the city of Nowthen a portion of the 2021 fire state aid received by the city of 
90.21 	Ramsey on or about October 1, 2021, based on 2020 property value and population. The 
90.22 	portion to be transferred shall be equal to the amount determined by the commissioner of 
90.23 	revenue to be attributable to the estimated market value of property and population in the 
90.24 	city of Nowthen fire service area, as a percentage of the total fire state aid paid to the city 
90.25 	of Ramsey on or about October 1, 2021.
90.26 		Subd. 6.Service credit under the Nowthen relief association. The Nowthen relief 
90.27 	association shall credit each firefighter whose account balance is transferred from the Ramsey 
90.28 	relief association to the Nowthen relief association with the same number of years of service 
90.29 	credit with which the firefighter had been credited under the Ramsey relief association for 
90.30 	vesting and any other purpose for which service credit is granted. Such service credit shall 
90.31 	be applied to retain the firefighter's vesting percentage in the account balance that was 
90.32 	transferred and shall be applied toward the firefighter's vesting percentage in all funds 
90.33 	allocated to the firefighter's account in the Nowthen relief association after the transfer.
91.1 		Subd. 7.Full vesting of certain Ramsey firefighters. (a) This subdivision applies to 
91.2 	any Ramsey firefighter:
91.3 	(1) who is assigned to the Nowthen fire station;
91.4 	(2) whose employment is terminated by the city of Ramsey on or before December 31, 
91.5 	2021; and
91.6 	(3) who is not hired by the city of Nowthen.
91.7 	(b) Notwithstanding any law or provision in the bylaws of the Ramsey relief association, 
91.8 	the Ramsey relief association shall fully (100 percent) vest the Ramsey firefighter in the 
91.9 	firefighter's account in the Ramsey relief association as of the date the Ramsey firefighter's 
91.10 	employment is terminated.
91.11 	(c) The Ramsey firefighter shall be considered an inactive or deferred Nowthen firefighter 
91.12 	for all purposes under subdivision 3.

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

91.14 	ARTICLE 15
91.15 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS
91.16 	CONVERSIONS FROM DEFINED BENEFIT PLAN
91.17 	TO DEFINED CONTRIBUTION PLAN

91.18 	Section 1. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision 
91.19 	to read:
91.20 		Subd. 2a.Board of trustees. "Board of trustees" means the governing board of a relief 
91.21 	association.

91.22 	Sec. 2. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
91.23 	read:
91.24 		Subd. 3a.Conversion effective date. "Conversion effective date" means the date on 
91.25 	which the assets of the defined benefit plan have been allocated to accounts under the defined 
91.26 	contribution plan.

91.27 	Sec. 3. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
91.28 	read:
91.29 		Subd. 3b.Defined benefit plan. "Defined benefit plan" means a retirement plan that 
91.30 	provides a retirement benefit that is a lump sum, the amount of which is determined by 
91.31 	multiplying the applicable lump-sum service pension amount under section 424A.02, 
92.1 	subdivision 3, paragraph (d), by years of service, or a monthly pension, the amount of which 
92.2 	is determined by multiplying the applicable monthly pension amount under section 424A.02, 
92.3 	subdivision 3, paragraph (c), by years of service. A defined benefit plan may provide both 
92.4 	a lump-sum benefit and a monthly pension.

92.5 	Sec. 4. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
92.6 	read:
92.7 		Subd. 3c.Defined benefit relief association. "Defined benefit relief association" means 
92.8 	a relief association that has established and administers a retirement plan that is a defined 
92.9 	benefit plan.

92.10 	Sec. 5. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
92.11 	read:
92.12 		Subd. 3d.Defined contribution plan. "Defined contribution plan" means a retirement 
92.13 	plan that provides a retirement benefit based on the member's individual account balance.

92.14 	Sec. 6. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
92.15 	read:
92.16 		Subd. 3e.Defined contribution relief association. "Defined contribution relief 
92.17 	association" means a relief association that has established and administers a retirement 
92.18 	plan that is a defined contribution plan.

92.19 	Sec. 7. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
92.20 	read:
92.21 		Subd. 3f.Firefighting corporation. "Firefighting corporation" means an independent 
92.22 	nonprofit firefighting corporation that is organized under chapter 317A and that operates 
92.23 	primarily for firefighting purposes.

92.24 	Sec. 8. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
92.25 	read:
92.26 		Subd. 3g.Member. (a) "Member" means a person:
92.27 	(1) who is a member of a fire department or independent nonprofit firefighting 
92.28 	corporation;
93.1 	(2) who has been credited with at least one year of service toward a retirement benefit 
93.2 	under the retirement plan of a relief association that is affiliated with the fire department or 
93.3 	independent nonprofit firefighting corporation; and
93.4 	(3) whose retirement benefit under the retirement plan has not yet been distributed in a 
93.5 	lump sum or has not yet begun to be distributed in periodic installments or as a monthly 
93.6 	pension.
93.7 	(b) A member may be an active firefighter, an inactive firefighter, or a former firefighter 
93.8 	who has a benefit under the retirement plan but has not become eligible to receive the benefit.

93.9 	Sec. 9. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to 
93.10 	read:
93.11 		Subd. 4a.Relief association. (a) "Relief association" or "volunteer firefighter relief 
93.12 	association" means a nonprofit corporation incorporated under or governed by chapter 317A 
93.13 	that is a governmental entity that receives and manages public money to provide retirement 
93.14 	benefits for individuals providing the governmental services of firefighting and emergency 
93.15 	first response, is subject to chapter 424A, and is affiliated with:
93.16 	(1) a fire department established by municipal ordinance;
93.17 	(2) an independent nonprofit firefighting corporation incorporated under chapter 317A; 
93.18 	or
93.19 	(3) a fire department operated as or by a joint powers entity.
93.20 	(b) Relief association or volunteer firefighters relief association does not mean the 
93.21 	voluntary statewide volunteer firefighter retirement plan governed by chapter 353G.

93.22 	Sec. 10. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision 
93.23 	to read:
93.24 		Subd. 5a.Retirement benefit. "Retirement benefit" means the benefit to which a member 
93.25 	is entitled under a retirement plan.

93.26 	Sec. 11. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision 
93.27 	to read:
93.28 		Subd. 5b.Retirement plan. "Retirement plan" means the defined benefit plan or defined 
93.29 	contribution plan established and administered by a relief association.

94.1 	Sec. 12. Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision 
94.2 	to read:
94.3 		Subd. 7.Surplus. "Surplus" means the amount by which the assets in a defined benefit 
94.4 	plan exceed accrued liabilities.

94.5 	Sec. 13. [424B.13] CONVERSION OF RELIEF ASSOCIATION DEFINED BENEFIT 
94.6 	PLAN TO DEFINED CONTRIBUTION PLAN.
94.7 		Subdivision 1.Authority to initiate conversion. (a) The board of trustees of a defined 
94.8 	benefit relief association may convert the defined benefit plan to a defined contribution plan 
94.9 	in accordance with this section.
94.10 	(b) A conversion consists of:
94.11 	(1) termination of the defined benefit plan;
94.12 	(2) establishment of a defined contribution plan; and
94.13 	(3) transfer and allocation of the assets of the defined benefit plan to accounts under the 
94.14 	defined contribution plan.
94.15 	(c) The termination of the defined benefit plan does not dissolve the relief association, 
94.16 	which is an ongoing nonprofit corporation under chapter 317A, unless dissolved under 
94.17 	chapter 317A and section 424B.22.
94.18 		Subd. 2.Board of trustees. To initiate and complete a conversion, the board of trustees 
94.19 	must:
94.20 	(1) approve resolutions that:
94.21 	(i) state that the defined benefit plan is being converted to a defined contribution plan;
94.22 	(ii) designate a conversion effective date;
94.23 	(iii) fully vest all members as of the conversion effective date in each member's lump-sum 
94.24 	benefit or monthly pension, such that each member is 100 percent vested in the member's 
94.25 	lump-sum benefit or monthly pension;
94.26 	(iv) if the relief association has a surplus as of the end of the relief association's most 
94.27 	recent fiscal year before the conversion effective date, at the option of the board of trustees, 
94.28 	conditionally increase the lump-sum benefit or monthly pension amount under the defined 
94.29 	benefit plan, as provided under subdivision 4;
94.30 	(v) determine the method for allocating a surplus;
95.1 	(vi) adopt a defined contribution plan and approve a plan document that complies with 
95.2 	section 424A.016 and states the terms and conditions for eligibility, vesting, allocation of 
95.3 	contributions, distribution of retirement benefits, and any ancillary benefits; and
95.4 	(vii) authorize any bylaws amendments needed to incorporate items (i) to (vi) into the 
95.5 	bylaws;
95.6 	(2) obtain the consent of the municipality or firefighting corporation if required by 
95.7 	subdivision 3;
95.8 	(3) determine the present value of each member's accrued benefit as of the conversion 
95.9 	effective date as required by subdivision 5;
95.10 	(4) if there is a surplus, allocate the surplus under a method that complies with subdivision 
95.11 	6;
95.12 	(5) if there is not a surplus, take the actions required under subdivision 7;
95.13 	(6) provide the notices required under subdivisions 8 and 9; and
95.14 	(7) implement the conversion, including the requirements under subdivision 10.
95.15 		Subd. 3.Consent of municipality or firefighting corporation. The consent of the 
95.16 	affiliated municipality, all municipalities if more than one municipality operates the fire 
95.17 	department pursuant to a joint powers agreement, or firefighting corporation to a relief 
95.18 	association's conversion of its defined benefit plan to a defined contribution plan is required 
95.19 	as provided under subdivision 7 only if the relief association does not have a surplus as of 
95.20 	the end of the relief association's most recent fiscal year before the conversion effective 
95.21 	date.
95.22 		Subd. 4.Benefit increase. (a) If the relief association has a surplus as of the end of the 
95.23 	relief association's most recent fiscal year before the conversion effective date, the board 
95.24 	of trustees may approve a resolution that increases the lump-sum benefit or monthly pension 
95.25 	amount or both the lump sum and monthly pension amount, if the relief association offers 
95.26 	both, and amends the relief association bylaws without the consent of the affiliated 
95.27 	municipality or firefighting corporation, notwithstanding section 424A.02, subdivision 10. 
95.28 	The resulting lump-sum benefit or monthly pension amount is not limited to the maximum 
95.29 	lump-sum benefit or monthly pension amounts under section 424A.02, subdivision 3.
95.30 	(b) The benefit increase must not cause the liabilities of the retirement plan to exceed 
95.31 	the value of the assets, after taking into account full vesting as required under subdivision 
95.32 	2 and any administrative expenses arising from the conversion.
96.1 	(c) The board of trustees shall specify whether the benefit increase will apply only to 
96.2 	members active as of the conversion effective date or whether the benefit increase will apply 
96.3 	to all members, including members who are not active as of the conversion effective date, 
96.4 	notwithstanding section 424A.015, subdivision 6.
96.5 	(d) The board of trustees' resolution approving an increase in the benefit level must be 
96.6 	considered conditional on there being sufficient assets to fund the increase and must state 
96.7 	that if, as of the date benefits are transferred to the defined contribution plan, there are not 
96.8 	sufficient assets to cover all benefit liabilities at the new higher benefit level, the benefit 
96.9 	level will be reduced until assets equal or are greater than liabilities. The resolution must 
96.10 	state that the new lower benefit level will be considered approved by the board of trustees 
96.11 	without further action by the board.
96.12 		Subd. 5.Determination of value of pension benefits and distribution to former 
96.13 	members in pay status. (a) The board of trustees shall determine the present value of each 
96.14 	member's accrued benefit, taking into account the full vesting requirement under subdivision 
96.15 	2 and any increase in the lump-sum benefit or monthly pension amount approved under 
96.16 	subdivision 4:
96.17 	(1) using the method set forth in section 424A.092, subdivision 2, for determining a 
96.18 	plan's funded status by calculating the value of each firefighter's accrued benefit; or
96.19 	(2) as determined by an actuary retained by the relief association, who meets the definition 
96.20 	of approved actuary under section 356.215, subdivision 1, paragraph (c).
96.21 	(b) If the retirement plan pays a monthly pension, the board of trustees shall determine 
96.22 	the present value of the remaining payments to any former member or beneficiary who is 
96.23 	receiving an annuity. Present value shall be determined by an actuary who meets the 
96.24 	definition of approved actuary under section 356.215, subdivision 1, paragraph (c), retained 
96.25 	by the relief association. The relief association shall offer the former member or beneficiary 
96.26 	receiving the annuity:
96.27 	(1) an immediate lump sum distribution of an amount equal to the present value of the 
96.28 	remaining payments as determined by the actuary and permit the former member or 
96.29 	beneficiary to elect a lump sum payment or a direct rollover of the amount to an eligible 
96.30 	retirement plan as permitted under section 356.635, subdivisions 3 to 7, if the distribution 
96.31 	is an eligible rollover distribution as defined in section 356.635, subdivisions 4 and 5; or
96.32 	(2) continued payments in the same monthly amount, under an annuity to be purchased 
96.33 	by the board of trustees from a reputable insurance company licensed to do business in the 
96.34 	state.
97.1 		Subd. 6.Allocation of surplus. (a) If, as of the conversion effective date, the defined 
97.2 	benefit plan has a surplus, the board of trustees shall allocate the surplus as follows:
97.3 	(1) per capita method: each member's account will receive the same dollar amount;
97.4 	(2) service-based method: each member's account will receive a share of the surplus 
97.5 	based on the ratio of the member's years of service to the total years of service for all 
97.6 	members; or
97.7 	(3) member and municipality sharing method under paragraph (b).
97.8 	(b) The board of trustees may allocate the surplus using the member and municipality 
97.9 	sharing method in accordance with this paragraph.
97.10 	(1) For this purpose, "municipality" means "municipality" or "firefighting corporation," 
97.11 	as applicable.
97.12 	(2) If the fire department is operated by more than one municipality under a joint powers 
97.13 	agreement:
97.14 	(i) any consent by the municipality under this paragraph requires consent by each 
97.15 	municipality that is party to the joint powers agreement;
97.16 	(ii) any payment of surplus to the municipality under this paragraph requires a payment 
97.17 	of a pro rata share of surplus to each municipality that is party to the joint powers agreement; 
97.18 	and
97.19 	(iii) any restrictions on the use of surplus applies to each municipality that is party to 
97.20 	the joint powers agreement.
97.21 	(3) Under the member and municipality sharing method:
97.22 	(i) first, the municipality will receive a share of the surplus based on the ratio of the 
97.23 	municipal contributions made to the defined benefit relief association over a specified period 
97.24 	of years to the total of fire state aid paid and municipal contributions made to the defined 
97.25 	benefit relief association over the same period; and
97.26 	(ii) second, any remaining surplus will be allocated to accounts of members using the 
97.27 	per capita or service-based method.
97.28 	(4) The board of trustees may impose conditions on the use of the surplus by the 
97.29 	municipality, as follows:
98.1 	(i) all or a specified portion of the surplus must be contributed back to the defined 
98.2 	contribution relief association over a specified number of future years for allocation to the 
98.3 	accounts of members eligible for an allocation;
98.4 	(ii) all or a specified portion of the surplus must be used by the municipality for the 
98.5 	purposes described in section 424A.08, paragraph (a) or (b); or
98.6 	(iii) all or a specified portion of the surplus must be used by the municipality to provide 
98.7 	health insurance or other welfare benefits for the members.
98.8 	(c) The board of trustees shall specify whether the surplus will be allocated only to 
98.9 	members who are active firefighters as of the conversion effective date or whether the 
98.10 	surplus will be allocated to all members, including members who are not active firefighters 
98.11 	as of the conversion effective date.
98.12 		Subd. 7.Conversion without surplus. If the relief association does not have a surplus 
98.13 	as of the end of the relief association's most recent fiscal year before the conversion effective 
98.14 	date, the board of trustees shall:
98.15 	(1) obtain the consent of the municipality, of each municipality, if more than one 
98.16 	municipality operates the fire department pursuant to a joint powers agreement, or of the 
98.17 	firefighting corporation to the conversion and bylaws amendments under subdivision 2; and
98.18 	(2) either:
98.19 	(i) include with the resolutions of the board of trustees under subdivision 2 a resolution 
98.20 	amending the relief association bylaws to decrease the lump-sum or monthly pension benefit 
98.21 	level as necessary to reduce benefit liabilities until plan assets are sufficient to fund all 
98.22 	benefit liabilities, taking into account full vesting under subdivision 2 and the payment of 
98.23 	administrative expenses arising from the conversion; or
98.24 	(ii) enter into an agreement with the municipality, each municipality, if more than one 
98.25 	municipality operates the fire department pursuant to a joint powers agreement, or the 
98.26 	firefighting corporation, as applicable, that requires the municipality, municipalities, or 
98.27 	firefighting corporation, as applicable, to make a contribution in an amount sufficient to 
98.28 	cover all benefit liabilities at the current benefit level, taking into account full vesting under 
98.29 	subdivision 2 and the payment of administrative expenses arising from the conversion.
98.30 		Subd. 8.Notice to members. The board of trustees shall provide notice to all members 
98.31 	at least 90 days before the conversion effective date. The notice shall include:
98.32 	(1) an explanation that the plan is converting from a defined benefit plan to a defined 
98.33 	contribution plan and provide definitions for those terms, the reasons for the conversion, 
99.1 	the conversion effective date, and the procedure to be followed, including fully vesting all 
99.2 	members;
99.3 	(2) a summary of the terms of the newly adopted defined contribution plan;
99.4 	(3) information about any increase in the benefit level and whether the increase applies 
99.5 	to all members or only active firefighters;
99.6 	(4) a section tailored to each member that provides an estimate of the present value of 
99.7 	the member's fully vested accrued benefit and the calculation that resulted in that value;
99.8 	(5) an estimate of any anticipated surplus and an explanation of the disposition of the 
99.9 	surplus, including, as applicable, a description of the method allocating the surplus among 
99.10 	members' accounts and whether the municipality, each municipality, if more than one 
99.11 	municipality operates the fire department pursuant to a joint powers agreement, or firefighting 
99.12 	corporation will receive any of the surplus and any conditions on its use; and
99.13 	(6) contact information for one or more members of the board of trustees who will answer 
99.14 	questions and provide a copy of the new defined contribution plan document or a summary, 
99.15 	if requested, or directions to a website for viewing and printing the plan document or 
99.16 	summary.
99.17 		Subd. 9.Notice to municipality and state auditor. The relief association shall provide 
99.18 	notice to the municipality, each municipality, if more than one municipality operates the 
99.19 	fire department pursuant to a joint powers agreement, or firefighting corporation affiliated 
99.20 	with the relief association and the state auditor at the same time as the notice required under 
99.21 	subdivision 8. The notice must include the information required under subdivision 8, except 
99.22 	that the individualized information will be provided as a spreadsheet listing the name of 
99.23 	each firefighter and the corresponding accrued benefit amount.
99.24 		Subd. 10.Implementation. (a) A record-keeping account shall be established for each 
99.25 	member under the defined contribution plan to which is recorded the value of the firefighter's 
99.26 	fully vested accrued benefit as determined as of the conversion effective date and the amount 
99.27 	of any surplus allocated to the firefighter's account.
99.28 	(b) In no event may the value of a member's account in the defined contribution plan be 
99.29 	less as of the day following the conversion effective date than the present value of the 
99.30 	member's accrued benefit as of the day before the conversion effective date.

99.31 	Sec. 14. EFFECTIVE DATE.
 99.32 	Sections 1 to 13 are effective the day following final enactment.

100.1 	ARTICLE 16
100.2 	STATE AUDITOR VOLUNTEER FIREFIGHTER
100.3 	WORKING GROUP RECOMMENDATIONS

100.4 	Section 1. Minnesota Statutes 2018, section 424A.003, is amended to read:
100.5 	424A.003 CERTIFICATION OF SERVICE CREDIT.
100.6 	(a) When a municipal fire department, a joint powers fire department, or an independent 
100.7 	nonprofit firefighting corporation is directly associated with the volunteer firefighters relief 
100.8 	association, the fire chief shall certify annually by March 31 the service credit for the 
100.9 	previous calendar year of each volunteer firefighter rendering active service with the fire 
100.10 	department.
100.11 	(b) The certification shall be made to an officer of the relief association's board of trustees 
100.12 	and to the municipal clerk or clerk-treasurer of the largest municipality in population served 
100.13 	by the associated fire department.
100.14 	(c) The fire chief shall notify each volunteer firefighter rendering active service with 
100.15 	the fire department of the amount of service credit rendered by the firefighter for the previous 
100.16 	calendar year. The service credit notification and a description of the process and deadlines 
100.17 	for the firefighter to challenge the fire chief's determination of service credit must be provided 
100.18 	to the firefighter 60at least 21 days prior to its certification to the relief association and 
100.19 	municipality. If the service credit amount is challenged, the fire chief shall accept and 
100.20 	consider any additional pertinent information and shall make a final determination of service 
100.21 	credit.
100.22 	(d) The service credit certification must be expressed as the number of completed months 
100.23 	of the previous year during which an active volunteer firefighter rendered at least the 
100.24 	minimum level of duties as specified and required by the fire department under the rules, 
100.25 	regulations, and policies applicable to the fire department. No more than one year of service 
100.26 	credit may be certified for a calendar year.
100.27 	(e) If a volunteer firefighter who is a member of the relief association leaves active 
100.28 	firefighting service to render active military service that is required to be governed by the 
100.29 	federal Uniformed Services Employment and Reemployment Rights Act, as amended, the 
100.30 	firefighter must be certified as providing service credit for the period of the military service, 
100.31 	up to the applicable limit of the federal Uniformed Services Employment and Reemployment 
100.32 	Rights Act. If the volunteer firefighter does not return from the military service in compliance 
100.33 	with the federal Uniformed Services Employment and Reemployment Rights Act, the service 
101.1 	credits applicable to that military service credit period are forfeited and canceled at the end 
101.2 	of the calendar year in which the time limit set by federal law occurs.

101.3 	EFFECTIVE DATE. This section is effective January 1, 2021.

101.4 	Sec. 2. Minnesota Statutes 2019 Supplement, section 424A.014, subdivision 1, is amended 
101.5 	to read:
101.6 		Subdivision 1.Financial report and audit. (a) The board of the Bloomington Fire 
101.7 	Department Relief Association and each volunteer firefighters relief association with assets 
101.8 	of at least $500,000 or liabilities of at least $500,000 in the prior year or in any previous 
101.9 	year, according to the applicable actuarial valuation or according to the financial report if 
101.10 	no valuation is required, must prepare a financial report covering the special and general 
101.11 	funds of the relief association for the preceding fiscal year, file the financial report, and 
101.12 	submit financial statements.
101.13 	(b) The financial report must contain financial statements and disclosures that present 
101.14 	the true financial condition of the relief association and the results of relief association 
101.15 	operations in conformity with generally accepted accounting principles and in compliance 
101.16 	with the regulatory, financing, and funding provisions of this chapter and any other applicable 
101.17 	laws. The financial report must be countersigned by:
101.18 	(1) the municipal clerk or clerk-treasurer of the municipality in which the relief 
101.19 	association is located if the relief association is a firefighters' relief association that is directly 
101.20 	associated with a municipal fire department;
101.21 	(2) the municipal clerk or clerk-treasurer of the largest municipality in population that 
101.22 	contracts with the independent nonprofit firefighting corporation if the volunteer firefighter 
101.23 	relief association is a subsidiary of an independent nonprofit firefighting corporation, and 
101.24 	by the secretary of the independent nonprofit firefighting corporation; or
101.25 	(3) the chief financial official of the county in which the volunteer firefighter relief 
101.26 	association is located or primarily located if the relief association is associated with a fire 
101.27 	department that is not located in or associated with an organized municipality.
101.28 	(c) The financial report must be retained in the office of the Bloomington Fire Department 
101.29 	Relief Association or the volunteer firefighter relief association for public inspection and 
101.30 	must be filed with the governing body of the government subdivision in which the associated 
101.31 	fire department is located after the close of the fiscal year. One copy of the financial report 
101.32 	must be furnished to the state auditor after the close of the fiscal year.
102.1 	(d) Audited financial statements must be attested to by a certified public accountant or 
102.2 	by the state auditor and must be filed with the state auditor on or before June 30 after the 
102.3 	close of the fiscal year. Audits must be conducted in compliance with generally accepted 
102.4 	governmental auditing standards and section 6.65 governing audit procedures. The state 
102.5 	auditor may accept this report in lieu of the report required in paragraph (c).

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

102.7 	Sec. 3. Minnesota Statutes 2019 Supplement, section 424A.016, subdivision 4, is amended 
102.8 	to read:
102.9 		Subd. 4.Individual accounts. (a) An individual account must be established for each 
102.10 	firefighter who is a member of the relief association.
102.11 	(b) To each individual active member account must be credited an equal share of:
102.12 	(1) any amounts of fire state aid and police and firefighter retirement supplemental state 
102.13 	aid received by the relief association;
102.14 	(2) any amounts of municipal contributions to the relief association raised from levies 
102.15 	on real estate or from other available municipal revenue sources exclusive of fire state aid; 
102.16 	and
102.17 	(3) any amounts equal to the share of the assets of the special fund to the credit of:
102.18 	(i) any former member who terminated active service with the fire department to which 
102.19 	the relief association is associated before meeting the minimum service requirement provided 
102.20 	for in subdivision 2, paragraph (b), and has not returned to active service with the fire 
102.21 	department for a period no shorter than five years; or
102.22 	(ii) any retired member who retired before obtaining a full nonforfeitable interest in the 
102.23 	amounts credited to the individual member account under subdivision 2, paragraph (b), and 
102.24 	any applicable provision of the bylaws of the relief association.
102.25 	(c) In addition, any investment return on the assets of the special fund must be credited 
102.26 	in proportion to the share of the assets of the special fund to the credit of each individual 
102.27 	active member account and inactive member account, unless the inactive member is a 
102.28 	deferred member as defined in subdivision 6.
102.29 	(d) Administrative expenses of the relief association payable from the special fund may 
102.30 	be deducted from individual accounts in a manner specified in the bylaws of the relief 
102.31 	association.
103.1 	(c) If the bylaws so permit and as the bylaws define, the relief association may credit 
103.2 	any investment return on the assets of the special fund to the accounts of inactive members.
103.3 	(d)(e) Amounts to be credited to individual accounts must be allocated uniformly for 
103.4 	all years of active service and allocations must be made for all years of service, except for 
103.5 	caps on service credit if so provided in the bylaws of the relief association. Amounts forfeited 
103.6 	under paragraph (b), clause (3), before a resumption of active service and membership under 
103.7 	section 424A.01, subdivision 6, remain forfeited and may not be reinstated upon the 
103.8 	resumption of active service and membership. The allocation method may utilize monthly 
103.9 	proration for fractional years of service, as the bylaws or articles of incorporation of the 
103.10 	relief association so provide. The bylaws or articles of incorporation may define a "month," 
103.11 	but the definition must require a calendar month to have at least 16 days of active service. 
103.12 	If the bylaws or articles of incorporation do not define a "month," a "month" is a completed 
103.13 	calendar month of active service measured from the member's date of entry to the same date 
103.14 	in the subsequent month.
103.15 	(e)(f) At the time of retirement under subdivision 2 and any applicable provision of the 
103.16 	bylaws of the relief association, a retiring member is entitled to that portion of the assets of 
103.17 	the special fund to the credit of the member in the individual member account which is 
103.18 	nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief 
103.19 	association based on the number of years of service to the credit of the retiring member.
103.20 	(f)(g) Annually, the secretary of the relief association shall certify the individual account 
103.21 	allocations to the state auditor at the same time that the annual financial statement or financial 
103.22 	report and audit of the relief association, whichever applies, is due under section 424A.014.

103.23 	Sec. 4. Minnesota Statutes 2019 Supplement, section 424A.016, subdivision 6, is amended 
103.24 	to read:
103.25 		Subd. 6.Deferred service pensions. (a) A "deferred member" means a member of a 
103.26 	relief association is entitled to a deferred service pension if the member separateswho has 
103.27 	separated from active service and membership and has completed the minimum service and 
103.28 	membership requirements in subdivision 2. The requirement that a member separate from 
103.29 	active service and membership is waived for persons who have discontinued their volunteer 
103.30 	firefighter duties and who are employed on a full-time basis under section 424A.015, 
103.31 	subdivision 1.
103.32 	(b) TheA deferred member is entitled to receive a deferred service pension is payable
103.33 	when the former member reaches at least age 50, or at least the minimum age specified in 
104.1 	the bylaws governing the relief association if that age is greater than age 50, and when the 
104.2 	former member makes a valid written application.
104.3 	(c) A defined contribution relief association may, if its governing bylaws so provide,
104.4 	must credit interest or additional investment performance on the deferred lump-sum service 
104.5 	pension during the period of deferral for all deferred members on or after January 1, 2021. 
104.6 	If provided for in the bylaws, the Interest must be credited using one of the following 
104.7 	methods, as provided for in the bylaws:
104.8 	(1) at the investment performance rate actually earned on that portion of the assets if the 
104.9 	deferred benefit amount is invested by the relief association in a separate account established 
104.10 	and maintained by the relief association;
104.11 	(2) at the investment performance rate actually earned on that portion of the assets if the 
104.12 	deferred benefit amount is invested in a separate investment vehicle held by the relief 
104.13 	association; or
104.14 	(3) at the investment return on the assets of the special fund of the defined contribution 
104.15 	volunteer firefighters relief association in proportion to the share of the assets of the special 
104.16 	fund to the credit of each individual deferred member account through the accounting date 
104.17 	on which the investment return is recognized by and credited to the special fund.
104.18 	(d) Unless the bylaws of a relief association that has elected to pay interest or additional 
104.19 	investment performance on deferred lump-sum service pensions under paragraph (c) specifies 
104.20 	a different interest or additional investment performance method, including the interest or 
104.21 	additional investment performance period starting date and ending date, the interest or 
104.22 	additional investment performance on a deferred service pension is creditable as follows:
104.23 	(1) for a relief association that has elected to credit interest or additional investment 
104.24 	performance under paragraph (c), clause (1) or (3), beginning on the date that the member 
104.25 	separates from active service and membership and ending on the accounting date immediately 
104.26 	before the deferred member commences receipt of the deferred service pension; or
104.27 	(2) for a relief association that has elected to credit interest or additional investment 
104.28 	performance under paragraph (c), clause (2), beginning on the date that the member separates 
104.29 	from active service and membership and ending on the date that the separate investment 
104.30 	vehicle is valued immediately before the date on which the deferred member commences 
104.31 	receipt of the deferred service pension.
105.1 	(e) If the bylaws do not define a method for crediting interest or additional investment 
105.2 	performance, the interest or additional investment performance must be credited using the 
105.3 	method defined in paragraph (c), clause (3).
105.4 	(f) Until December 31, 2020, a defined contribution relief association is permitted, if its 
105.5 	governing bylaws so provide, to credit interest or additional investment performance on the 
105.6 	deferred lump-sum service pension during the period of deferral using the method set forth 
105.7 	in the bylaws applicable on the date on which each deferred member separated from active 
105.8 	service.

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

105.10 	Sec. 5. Minnesota Statutes 2018, section 424A.03, as amended by Laws 2019, First Special 
105.11 	Session chapter 6, article 22, section 20, is amended to read:
105.12 	424A.03 UNIFORMITY OF VOLUNTEER FIREFIGHTER SERVICE PENSION 
105.13 	AND RETIREMENT BENEFITS BASED ON SERVICE.
105.14 		Subdivision 1.Limitation on nonuniformity ofService pensions based on years of 
105.15 	service. Every partially salaried and partially volunteer firefightersA relief association must 
105.16 	provide service pensions or retirement benefits to volunteer firefighterits members based 
105.17 	on the years of service of the members, not on the compensation paid to the members for 
105.18 	firefighting services. Each relief association must provide service pensions to salaried 
105.19 	members as set forth in chapter 424 and applicable special laws their service.
105.20 		Subd. 2.PenaltiesPenalty for violations violation. A municipality which has a fire 
105.21 	department associated with If a relief association which violates the provisions of subdivision 
105.22 	1 is directly associated or which contracts with an independent nonprofit firefighting 
105.23 	corporation associated with a relief association which violates the provisions of subdivision 
105.24 	1 is a subsidiary may, the affiliated municipality or municipalities must not be included in 
105.25 	the apportionment of fire state aid and police and firefighter retirement supplemental state 
105.26 	aid payable under chapter 477B and section 423A.022 and may not be included in the 
105.27 	apportionment of fire state aid to the various municipalities under section 477B.03.

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

105.29 	Sec. 6. Minnesota Statutes 2018, section 424A.092, subdivision 1, is amended to read:
105.30 		Subdivision 1.Application. This section shall apply to any firefighters relief association 
105.31 	specified in section 424A.091, subdivision 1, which pays a lump-sum service pension, but 
105.32 	which does not pay a monthly service pension, to a retiring firefighter when at least the 
106.1 	minimum requirements for entitlement to a service pension specified in section 424A.02,
106.2 	or any applicable special legislation and the articles of incorporation or bylaws of the relief 
106.3 	association have been met. Each firefighters relief association to which this section applies 
106.4 	shall determine the accrued liability of the special fund of the relief association in accordance 
106.5 	with the accrued liability table set forth in subdivisionsubdivisions 2 and 2a, if applicable, 
106.6 	and the financial requirements of the relief association and the minimum obligation of the 
106.7 	municipality in accordance with the procedure set forth in subdivision 3.

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

106.9 	Sec. 7. Minnesota Statutes 2018, section 424A.092, subdivision 2, is amended to read:
106.10 		Subd. 2.Determination of accrued liability. (a) Beginning with the calculation 
106.11 	performed in 2021 for the 2022 calendar year each firefighters relief association which pays 
106.12 	a lump-sum service pension when a retiring firefighter meets the minimum requirements 
106.13 	for entitlement to a service pension specified in section 424A.02 and which in its articles 
106.14 	of incorporation or bylaws requires service credit for a period of service of at least 20 years 
106.15 	of active service for a totally nonforfeitable service pension shall determine the accrued 
106.16 	liability of the special fund of the firefighters relief association relative to each active member 
106.17 	of the relief association, calculated using the applicable appendix to the standards for actuarial 
106.18 	work established by the Legislative Commission on Pensions and Retirement under section 
106.19 	3.85, subdivision 10.
106.20 	(b) For calendar years before 2022, each firefighters relief association shall determine 
106.21 	the accrued liability of the special fund of the firefighters relief association relative to each 
106.22 	active member of the relief association, calculated individually using the following table:

106.23
106.24	Cumulative
Year
	Accrued
Liability
		
106.25	............
	............
		
106.26	1
	$
	60
		
106.27	2
		124
		
106.28	3
		190
		
106.29	4
		260
		
106.30	5
		334
		
106.31	6
		410
		
106.32	7
		492
		
106.33	8
		576
		
106.34	9
		666
		
106.35	10
		760
		
107.1	11
		858
		
107.2	12
		962
		
107.3	13
		1070
		
107.4	14
		1184
		
107.5	15
		1304
		
107.6	16
		1428
		
107.7	17
		1560
		
107.8	18
		1698
		
107.9	19
		1844
		
107.10	20
		2000
		
107.11	21
	and thereafter
	100
	additional per year
	
107.12 	(b) As set forth in the table the accrued liability for each member of the relief association 
107.13 	corresponds to the cumulative years of active service to the credit of the member. The 
107.14 	accrued liability of the special fund for each active member is determined by multiplying 
107.15 	the accrued liability from the chart by the ratio of the lump-sum service pension amount 
107.16 	currently provided for in the bylaws of the relief association to a service pension of $100 
107.17 	per year of service.
107.18 	(c) If a member has fractional service as of December 31, the figure for service credit 
107.19 	to be used for the determination of accrued liability pursuant to this section shall be rounded 
107.20 	to the nearest full year of service credit. The total accrued liability of the special fund as of 
107.21 	December 31 shall be the sum of the accrued liability attributable to each active member 
107.22 	of the relief association.
107.23 	(c)(d) To the extent that the state auditor considers it to be necessary or practical, the 
107.24 	state auditor may specify and issue procedures, forms, or mathematical tables for use in 
107.25 	performing the calculations of the accrued liability for deferred members pursuant to this 
107.26 	subdivision.

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

107.28 	ARTICLE 17
107.29 	MSRS UNCLASSIFIED PLAN
107.30 	ANNUITY RATE GRANDFATHER PROVISION EXTENSION

107.31 	Section 1. Minnesota Statutes 2018, section 352D.06, subdivision 1, is amended to read:
107.32 		Subdivision 1.Annuity; reserves. (a) When a participant attains at least age 55, 
107.33 	terminates from covered service, and applies for a retirement annuity, the cash value of the 
107.34 	participant's shares must be transferred to the general state employees retirement fund and 
108.1 	be used to provide an annuity for the participant based upon the participant's age when the 
108.2 	benefit begins to accrue.
108.3 	(b) Except for participants described in paragraph (c), the monthly amount of the annuity 
108.4 	must be determined using the actuarial assumptions in effect for the general state employees 
108.5 	retirement plan under section 356.215 on the accrual date.
108.6 	(c) For any participant who retires on or after July 1, 2017, and before July 1, 2020, 
108.7 	when the participant is at least age 63 or has had at least 26 years of covered service, the 
108.8 	monthly amount of the annuity must be determined using the actuarial assumptions in effect 
108.9 	for the general state employees retirement plan under section 356.215 on June 30, 2016.
108.10 	(d) For any participant who terminates employment on or after July 1, 2020, and before 
108.11 	July 1, 2021, if the participant was at least age 63 or had at least 26 years of covered service 
108.12 	as of June 30, 2020, the monthly amount of the annuity must be determined using the 
108.13 	actuarial assumptions in effect for the general state employees retirement plan under section 
108.14 	356.215 on June 30, 2016.

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

APPENDIX 

Repealed Minnesota Statutes: S3808-1 

353.30 ANNUITIES UPON RETIREMENT.Subd. 4.Reduction in monthly payments. 
Monthly payments to which any person may be entitled under this chapter may be reduced upon application to the association, provided that the person shall first relinquish in writing all claim to that part of the full monthly payment which is the difference between the monthly payment which that person would be otherwise entitled to receive and the monthly payment which that person will receive. The reduced monthly payment shall be payment in full of all amounts due under this chapter for the month for which the payment is made and acceptance of the reduced monthly payment releases the retirement association from all obligation to pay to the person the difference between the amount of the reduced monthly payment and the full amount of the monthly payment which the person would otherwise have received. Upon application of the person who is entitled to such monthly payment, it may be increased prospectively to not more than the amount to which the person would have been entitled had no portion thereof been waived. 

354.55 OPTIONS TO CERTAIN MEMBERS.Subd. 10.Reduced benefits. 
Any benefit to which any person may be entitled under this chapter may be reduced in amount upon application of the person entitled thereto to the executive director if the person relinquishes in writing all claim to that part of the full benefit which is the difference between the benefit which the person would be otherwise entitled to receive and the benefit which the person will receive after the benefit reduction. The reduced benefit is payment in full of all amounts due under this chapter for the month for which the payment is made and acceptance of the reduced benefit releases the retirement association from all obligation to pay to the person the difference between the amount of the reduced benefit and the full amount of the benefit which the person would otherwise have received. Any benefit reduced under the provisions of this subdivision may not again be restored. 

356.24 SUPPLEMENTAL PENSION OR DEFERRED COMPENSATION PLANS, RESTRICTIONS UPON GOVERNMENT UNITS.Subd. 2.Limit on certain contributions or benefit changes. 
No change in benefits or employer contributions in a supplemental pension plan to which this section applies that occurs after May 6, 1971, is effective without prior legislative authorization. 

356.44 PARTIAL PAYMENT OF PENSION PLAN REFUND.
(a) Notwithstanding any provision of law to the contrary, a member of a pension plan listed in section 356.30, subdivision 3, with at least two years of forfeited service taken from a single pension plan, may repay a portion of all refunds. A partial refund repayment must comply with this section. 

(b) The minimum portion of a refund repayment is one-third of the total service credit period of all refunds taken from a single plan. 

(c) The cost of the partial refund repayment is the product of the cost of the total repayment multiplied by the ratio of the restored service credit to the total forfeited service credit. The total repayment amount includes interest at the applicable annual rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, whichever applies, compounded annually, from the refund date to the date repayment is received. 

(d) The restored service credit must be allocated based on the relationship the restored service bears to the total service credit period for all refunds taken from a single pension plan. 

(e) This section does not authorize a public pension plan member to repay a refund if the law governing the plan does not authorize the repayment of a refund of member contributions. 

424B.20 DISSOLUTION WITHOUT CONSOLIDATION.Subdivision 1.Applicable dissolutions. 
This section applies if the fire department associated with a volunteer firefighters relief association is dissolved or eliminated by action of the governing body of the municipality in which the fire department was located or by the independent nonprofit firefighting corporation, whichever applies, and no consolidation with another volunteer firefighters relief association under sections 424B.01 to 424B.10 is sought, or if a volunteer firefighters relief association is dissolved or eliminated with municipal approval, but the fire department associated with the volunteer firefighters relief association is not dissolved or eliminated, and no consolidation with another volunteer firefighters relief association under sections 424B.01 to 424B.10 is applicable. 

Subd. 2.Procedures. 
As part of the dissolution process, all legal obligations of the relief association other than service pensions and benefits must be settled under subdivision 3, a benefit trust must be established under subdivision 4, and the affairs of the relief association must be concluded under subdivision 5. 

Subd. 3.Settlement of nonbenefit legal obligations. 
(a) Prior to the effective date of the dissolution of the volunteer firefighters relief association established by the relief association board of trustees, the board shall determine the following: 

(1) the fair market value of the assets of the special fund; 

(2) the total amount of the accounts payable and other legal obligations of the special fund, excluding the accrued liability of the special fund for service pensions and other benefits; and 

(3) the accrued liability of the special fund for service pensions and other benefits payable or accrued under the applicable bylaws of the relief association and chapter 424A. 

(b) On or before the effective date of the dissolution of the volunteer firefighters relief association, the board shall liquidate sufficient special fund assets to pay the legal obligations of the special fund and must settle those legal obligations. 

(c) On or before the effective date of the dissolution of the volunteer firefighters relief association, the board shall settle the legal obligations of the general fund of the relief association. 

Subd. 4.Benefit trust fund establishment. 
(a) After the settlement of nonbenefit legal obligations of the special fund of the volunteer firefighters relief association under subdivision 3, the board of the relief association shall transfer the remaining assets of the special fund, as securities or in cash, as applicable, to the chief financial official of the municipality in which the associated fire department was located if the fire department was a municipal fire department or to the chief financial official of the municipality with the largest population served by the fire department if the fire department was an independent nonprofit firefighting corporation. If the fire department was a joint powers entity, the remaining assets of the special fund shall be transferred to the chief financial official of the municipality designated as the fiscal agent in the joint powers agreement or, if the agreement does not designate a municipality as the fiscal agent, the remaining assets of the special fund shall be transferred to the chief financial official of the municipality with the largest population served by the joint powers fire department. The board shall also compile a schedule of the relief association members to whom a service pension is or will be owed, any beneficiary to whom a benefit is owed, the amount of the service pension or benefit payable based on the applicable bylaws and state law and the service rendered to the date of the dissolution, and the date on which the pension or benefit would first be payable under the bylaws of the relief association and state law. 

(b) The municipality receiving the remaining assets of the special fund of a volunteer firefighters relief association that is dissolving under this section shall establish a separate account in the municipal treasury which must function as a trust fund for members of the volunteer firefighters relief association and their beneficiaries to whom the volunteer firefighters relief association owes a service pension or other benefit under the bylaws of the relief association and state law. Upon proper application, on or after the initial date on which the service pension or benefit is payable, the municipal treasurer shall pay the pension or benefit due, based on the schedule prepared under paragraph (a) and the other records of the dissolved relief association. The trust fund under this section must be invested and managed consistent with chapter 356A and section 424A.095. Upon payment of the last service pension or benefit due and owing, any remaining assets in the trust fund cancel to the general fund of the municipality or, if the fire department was a joint powers entity, any remaining assets in the trust fund cancel to the general fund of each municipality that was a contracting party to the joint powers agreement as specified in the joint powers agreement. If the joint powers agreement does not specify how the remaining assets are to be distributed among the contracting parties, each of the contracting parties shall receive a pro rata share of the remaining assets based on the proportion of total operating contributions each contracting municipality made to the joint powers entity over the most recent ten calendar years. If the special fund of the volunteer firefighters relief association had an unfunded actuarial accrued liability upon dissolution, the municipality is liable for that unfunded actuarial accrued liability. If the fire department was a joint powers entity, the contracting municipalities are liable for their share of the unfunded actuarial accrued liability as specified in the joint powers agreement. If the joint powers agreement does not specify liability for any unfunded actuarial accrued liability, the contracting municipalities are liable for their pro rata share of the unfunded actuarial accrued liability based on the proportion of total operating contributions each contracting municipality made to the joint powers entity over the most recent ten calendar years. 

Subd. 4a.Disposition of surplus assets upon dissolution of certain volunteer firefighters relief associations. 
Notwithstanding any provision to the contrary in subdivision 4, if a volunteer firefighters relief association provides a lump-sum service pension equal to $9,500 or more for each year of service as of June 1, 2018, upon dissolution under this section and payment of the last service pension or benefit due and owing, any remaining assets in the trust fund cancel as follows: 

(1) if the municipality was required to make contributions to the relief association under chapter 424A at any time during the ten years preceding June 1, 2018, the remaining assets cancel to the general fund of the municipality; or 

(2) if the municipality was not required to make contributions to the relief association under chapter 424A at any time during the ten years preceding June 1, 2018, the remaining assets cancel to the general fund of the state. 

Subd. 5.Relief association affairs wind-up. 
Upon dissolution, the board of trustees of the volunteer firefighters relief association shall transfer the records of the relief association to the chief administrative officer of the applicable municipality. The board shall also notify the commissioner of revenue, the state auditor, and the secretary of state of the dissolution within 30 days of the effective date of the dissolution. 

424B.21 ANNUITY PURCHASES UPON DISSOLUTION.
The board of trustees of a volunteer firefighters relief association that is scheduled for dissolution may purchase annuity contracts under section 424A.015, subdivision 3, instead of transferring special fund assets to a municipal trust fund under section 424B.20, subdivision 4. Payment of an annuity for which a contract is purchased may not commence before the retirement age specified in the relief association bylaws and in compliance with section 424A.016, subdivision 2, or 424A.02, subdivision 1. Legal title to the annuity contract transfers to the municipal trust fund under section 424B.20, subdivision 4.