1.1 	A bill for an act
1.2 	relating to retirement; authorizing certain medical professionals (APRNs) to provide 
1.3 	disability assessments for all public pension plans; authorizing the purchase of 
1.4 	service credit for periods of military service under the Minnesota State Retirement 
1.5 	System (MSRS) plans; adding Department of Human Services positions to the 
1.6 	positions eligible for coverage by the MSRS correctional plan; permitting the 
1.7 	transfer of  service credit from the MSRS general plan to the correctional plan; 
1.8 	permitting a surviving spouse to purchase vesting service and receive a pension 
1.9 	from the MSRS general plan; reinstating segmented annuities for Public Employees 
1.10 	Retirement Association (PERA) plans; excluding union employees of the Duluth 
1.11 	Transit Authority from PERA membership and providing vesting credit under 
1.12 	PERA for non-union employees; adding alternative vesting schedules under the 
1.13 	PERA statewide volunteer firefighter plan and eliminating the restriction on the 
1.14 	pension amount for firefighters retiring within five years of joining the plan; 
1.15 	temporarily suspending the earnings limitation for reemployed retired teachers; 
1.16 	adopting the recommendations of the state auditor's volunteer fire relief association 
1.17 	working group; requiring the state auditor to provide annual investment reports to 
1.18 	relief associations; clarifying the classification of State Board of Investment 
1.19 	professional employees; requiring the Department of Labor and Industry to study 
1.20 	the adequacy of disability benefits for police officers; authorizing service credit 
1.21 	purchases for teaching service in other states; making various administrative, 
1.22 	technical, and clarifying changes; requiring reports; appropriating money;amending 
1.23 	Minnesota Statutes 2020, sections 11A.04; 11A.07, subdivision 4, by adding 
1.24 	subdivisions; 43A.18, subdivision 3b; 179A.10, subdivision 1; 352.01, by adding 
1.25 	a subdivision; 352.113, subdivision 4; 352.27; 352.87, subdivision 6; 352.91, 
1.26 	subdivision 3f; 352.94; 352.95, subdivisions 4, 6; 352B.011, by adding a 
1.27 	subdivision; 352B.05; 352B.086; 352B.10, subdivision 4; 353.01, by adding a 
1.28 	subdivision; 353.031, subdivisions 3, 7, 8; 353.32, subdivision 1a; 353.34, 
1.29 	subdivision 5, by adding a subdivision; 353.657, subdivision 2a; 353.68, subdivision 
1.30 	4; 353G.01, subdivisions 7, 9a; 353G.05, subdivisions 1, 2, 3, by adding a 
1.31 	subdivision; 353G.09, subdivisions 1, 2; 354.05, by adding a subdivision; 354.48, 
1.32 	subdivisions 4, 6, 6a; 354A.011, by adding subdivisions; 354A.36, subdivisions 
1.33 	4, 6, by adding a subdivision; 356.20, subdivision 2; 356.24, subdivision 3; 356.551, 
1.34 	subdivision 2; 356.645; 356A.06, subdivisions 6, 8a; 424A.001, subdivision 4; 
1.35 	424A.003; 424A.015, subdivision 2; 424A.05, subdivision 3, by adding a 
1.36 	subdivision; 424A.08; 424A.092, subdivision 6; 424A.093, subdivision 6; 
1.37 	424A.095; 424A.10, subdivisions 1, 3; Minnesota Statutes 2021 Supplement, 
1.38 	sections 353.01, subdivision 2b; 353G.11, subdivision 1; 424A.02, subdivisions 
2.1 	3, 3a; 424A.091, subdivision 3; 424A.093, subdivision 1; 424A.10, subdivision 
2.2 	2; 424B.10, subdivision 1b; 424B.13, subdivisions 4, 5, 8; 424B.22, subdivision 
2.3 	4; proposing coding for new law in Minnesota Statutes, chapters 352; 352B; 354; 
2.4 	354A; repealing Minnesota Statutes 2020, section 353G.09, subdivision 3; 
2.5 	Minnesota Statutes 2021 Supplement, section 424A.02, subdivisions 2a, 2b, 2c.
2.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.7 	ARTICLE 1
2.8 	MINNESOTA STATE RETIREMENT SYSTEM

2.9 	Section 1. Minnesota Statutes 2020, section 352.27, is amended to read:
2.10 	352.27 FEDERALLY PROTECTED PURCHASE OF SERVICE CREDIT FOR 
2.11 	BREAK IN SERVICE TO PROVIDE UNIFORMEDPERIODS OF MILITARY 
2.12 	SERVICE.
2.13 	(a) An employee who is absent from employment by reason of service in the uniformed 
2.14 	services, as defined in United States Code, title 38, section 4303(13), and who returns to 
2.15 	state service upon discharge from service in the uniformed service within the time frames 
2.16 	required in United States Code, title 38, section 4312(e), may obtain service credit for the 
2.17 	period of the uniformed service as further specified in this section, provided that the employee 
2.18 	did not separate from uniformed service with a dishonorable or bad conduct discharge or 
2.19 	under other than honorable conditions.
2.20 	(b) The employee may obtain credit by paying into the fund an equivalent employee 
2.21 	contribution based upon the contribution rate or rates in effect at the time that the uniformed 
2.22 	service was performed multiplied by the full and fractional years being purchased and 
2.23 	applied to the annual salary rate. The annual salary rate is the average annual salary during 
2.24 	the purchase period that the employee would have received if the employee had continued 
2.25 	to be employed in covered employment rather than to providehaving performed uniformed 
2.26 	service, or, if the determination of that rate is not reasonably certain, the annual salary rate 
2.27 	is the employee's average salary rate during the 12-month period of covered employment 
2.28 	rendered immediately preceding the period of the uniformed service.
2.29 	(c) The equivalent employer contribution and, if applicable, the equivalent additional 
2.30 	employer contribution provided in this chapter must be paid by the department employing 
2.31 	the employee from funds available to the department at the time and in the manner provided 
2.32 	in this chapter, using the employer and additional employer contribution rate or rates in 
2.33 	effect at the time that the uniformed service was performed, applied to the same annual 
2.34 	salary rate or rates used to compute the equivalent employee contribution.
3.1 	(d) If the employee equivalent contributions provided in this section are not paid in full, 
3.2 	the employee's allowable service credit must be prorated by multiplying the full and fractional 
3.3 	number of years of uniformed service eligible for purchase by the ratio obtained by dividing 
3.4 	the total employee contribution received by the total employee contribution otherwise 
3.5 	required under this section.
3.6 	(e) To receive service credit under this section, the equivalent employee contributions 
3.7 	specified in this sectionparagraph (b) must be transmitted to the Minnesota State Retirement 
3.8 	System during the period which begins with the date on which the individual returns to state 
3.9 	service and which has a duration of three times the length of the uniformed service period, 
3.10 	but not to exceed five years. If the determined payment period is less than one year three 
3.11 	years, the contributions required under this sectionparagraph (b) to receive service credit 
3.12 	maymust be made within one yearthree years of the discharge date.
3.13 	(f) The amount of service credit obtainable under this section may not exceed five years 
3.14 	unless a longer purchase period is required under United States Code, title 38, section 4312.
3.15 	(g) The employing unit shall pay interest on all equivalent employee and employer 
3.16 	contribution amounts payable under this section. Interest must be at the applicable annual 
3.17 	rate or rates specified in section 356.59, subdivision 2, compounded annually, from the end 
3.18 	of each fiscal year of the leave or the break in service to the end of the month in which the 
3.19 	payment is received.

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

3.21 	Sec. 2. [352.272] STATE-AUTHORIZED PURCHASE OF SERVICE CREDIT FOR 
3.22 	PERIODS OF MILITARY SERVICE.
3.23 		Subdivision 1.Service credit purchase authorized. (a) Unless prohibited under 
3.24 	paragraph (b), an employee is eligible to purchase service credit, not to exceed five 
3.25 	cumulative years of service credit, for one or more periods of service in the uniformed 
3.26 	services, as defined in United States Code, title 38, section 4303(13), if:
3.27 	(1) the employee has at least three years of service credit with the general state employees 
3.28 	retirement plan or the correctional state employees retirement plan under this chapter;
3.29 	(2) the duration of the employee's current period of employment is at least six months; 
3.30 	and
3.31 	(3) one of the following applies:
4.1 	(i) the employee's service in the uniformed services occurred before becoming a state 
4.2 	employee as defined in section 352.01, subdivision 2; or
4.3 	(ii) the employee did not obtain service credit for a period of military service under 
4.4 	section 352.27.
4.5 	(b) A service credit purchase is prohibited if:
4.6 	(1) the employee separated from uniformed service with a dishonorable or bad conduct 
4.7 	discharge or under other than honorable conditions; or
4.8 	(2) the employee has purchased or otherwise received service credit from any Minnesota 
4.9 	public employee pension plan for the same period of service in the uniformed services.
4.10 	(c) When purchasing a period of service, if the period of service in the uniformed services 
4.11 	is one year or less, then the employee must purchase the full period of service. If the period 
4.12 	of service in the uniformed services is longer than one year, the employee may purchase 
4.13 	the full period, not to exceed five cumulative years, or may purchase a portion of the period 
4.14 	of service. If the employee purchases a portion of the period of service in the uniformed 
4.15 	services, the portion must:
4.16 	(1) not be less than one year; and
4.17 	(2) be in increments of six months of service.
4.18 		Subd. 2.Application and documentation. To purchase service credit under subdivision 
4.19 	1, an employee must apply to the executive director to make the purchase. The application 
4.20 	must include all necessary documentation of the employee's qualifications to make the 
4.21 	purchase, signed written permission to allow the executive director to request and receive 
4.22 	necessary verification of applicable facts and eligibility requirements, and any other relevant 
4.23 	information that the executive director may require. The employee must submit with the 
4.24 	application payment of the administrative fee in the amount of $250 to cover the costs of 
4.25 	calculating the purchase payment amount under section 356.551. If the employee proceeds 
4.26 	with the purchase, the administrative fee will be credited toward the purchase payment 
4.27 	amount.
4.28 		Subd. 3.Purchase payment amount; service credit grant. (a) The purchase payment 
4.29 	amount is the amount determined under section 356.551 for the period or periods of service 
4.30 	requested, except that, for purposes of calculating the purchase payment amount to purchase 
4.31 	service credit for service in the uniformed services that occurred before becoming a state 
4.32 	employee or between periods of employment as a state employee, section 356.551, 
4.33 	subdivision 2, paragraph (c), does not apply.
5.1 	(b) Service credit must be granted by the applicable plan to the purchasing employee 
5.2 	upon the executive director's receipt of the purchase payment amount. The service credit 
5.3 	purchased under this section may not be used for the purpose of determining a disability 
5.4 	benefit under section 352.113 or 352.95.
5.5 	(c) Payment must be made before the effective date of the employee's retirement.

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

5.7 	Sec. 3. Minnesota Statutes 2020, section 352.91, subdivision 3f, is amended to read:
5.8 		Subd. 3f.Additional Department of Human Services personnel. (a) "Covered 
5.9 	correctional service" means service by a state employee in one of the employment positions 
5.10 	specified in paragraph (b) in the state-operated forensic services program or the Minnesota 
5.11 	Sex Offender Program if at least 75 percent of the employee's working time is spent in direct 
5.12 	contact with patients and the determination of this direct contact is certified to the executive 
5.13 	director by the commissioner of human services.
5.14 	(b) The employment positions are:
5.15 	(1) behavior analyst 2;
5.16 	(2) behavior analyst 3;
5.17 	(3) certified occupational therapy assistant 1;
5.18 	(4) certified occupational therapy assistant 2;
5.19 	(5) chemical dependency counselor senior;
5.20 	(6) client advocate;
5.21 	(7) clinical program therapist 2;
5.22 	(8) clinical program therapist 3;
5.23 	(9) clinical program therapist 4;
5.24 	(10) customer services specialist principal;
5.25 	(11) dental assistant registered;
5.26 	(12) dental hygienist;
5.27 	(12) (13) group supervisor;
5.28 	(13)(14) group supervisor assistant;
5.29 	(14)(15) human services support specialist;
6.1 	(15)(16) licensed alcohol and drug counselor;
6.2 	(16)(17) licensed practical nurse;
6.3 	(17)(18) management analyst 3;
6.4 	(18)(19) occupational therapist;
6.5 	(19)(20) occupational therapist, senior;
6.6 	(20)(21) physical therapist;
6.7 	(21)(22) psychologist 1;
6.8 	(22)(23) psychologist 2;
6.9 	(23) (24) psychologist 3;
6.10 	(24)(25) recreation program assistant;
6.11 	(25)(26) recreation therapist lead;
6.12 	(26)(27) recreation therapist senior;
6.13 	(27)(28) rehabilitation counselor senior;
6.14 	(29) residential program lead;
6.15 	(28)(30) security supervisor;
6.16 	(29)(31) skills development specialist;
6.17 	(30)(32) social worker senior;
6.18 	(31)(33) social worker specialist;
6.19 	(32)(34) social worker specialist, senior;
6.20 	(33)(35) special education program assistant;
6.21 	(34)(36) speech pathology clinician;
6.22 	(35)(37) work therapy assistant; and
6.23 	(36)(38) work therapy program coordinator.

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

7.1 	Sec. 4. Minnesota Statutes 2020, section 352B.086, is amended to read:
7.2 	352B.086 FEDERALLY PROTECTED PURCHASE OF SERVICE CREDIT FOR 
7.3 	UNIFORMEDPERIODS OF MILITARY SERVICE.
7.4 	(a) A member who is absent from employment by reason of service in the uniformed 
7.5 	services, as defined in United States Code, title 38, section 4303(13), and who returns to 
7.6 	state employment in a position covered by the plan upon discharge from service in the 
7.7 	uniformed services within the time frame required in United States Code, title 38, section 
7.8 	4312(e), may obtain service credit for the period of the uniformed service, provided that 
7.9 	the member did not separate from uniformed service with a dishonorable or bad conduct 
7.10 	discharge or under other than honorable conditions.
7.11 	(b) The member may obtain credit by paying into the fund an equivalent member 
7.12 	contribution based on the member contribution rate or rates in effect at the time that the 
7.13 	uniformed service was performed multiplied by the full and fractional years being purchased 
7.14 	and applied to the annual salary rate. The annual salary rate is the average annual salary 
7.15 	during the purchase period that the member would have received if the member had continued 
7.16 	to provide employment services to the state rather than to provide uniformed service, or if 
7.17 	the determination of that rate is not reasonably certain, the annual salary rate is the member's 
7.18 	average salary rate during the 12-month period of covered employment rendered immediately 
7.19 	preceding the purchase period.
7.20 	(c) The equivalent employer contribution and, if applicable, the equivalent employer 
7.21 	additional contribution, must be paid by the employing unit, using the employer and employer 
7.22 	additional contribution rate or rates in effect at the time that the uniformed service was 
7.23 	performed, applied to the same annual salary rate or rates used to compute the equivalent 
7.24 	member contribution.
7.25 	(d) If the member equivalent contributions provided for in this section are not paid in 
7.26 	full, the member's allowable service credit must be prorated by multiplying the full and 
7.27 	fractional number of years of uniformed service eligible for purchase by the ratio obtained 
7.28 	by dividing the total member contributions received by the total member contributions 
7.29 	otherwise required under this section.
7.30 	(e) To receive allowable service credit under this section, the equivalent member 
7.31 	contributions specified in this sectionparagraph (b) must be transmitted to the fund during 
7.32 	the period which begins with the date on which the individual returns to state employment 
7.33 	covered by the plan and which has a duration of three times the length of the uniformed 
7.34 	service period, but not to exceed five years. If the determined payment period is calculated 
8.1 	to be less than one year three years, the contributions required under this sectionparagraph 
8.2 	(b) to receive service credit must be transmitted to the fund within one yearthree years from 
8.3 	the discharge date.
8.4 	(f) The amount of allowable service credit obtainable under this section may not exceed 
8.5 	five years, unless a longer purchase period is required under United States Code, title 38, 
8.6 	section 4312.
8.7 	(g) The employing unit shall pay interest on all equivalent member and employer 
8.8 	contribution amounts payable under this section. Interest must be computed at the applicable 
8.9 	annual rate or rates specified in section 356.59, subdivision 2, compounded annually, from 
8.10 	the end of each fiscal year of the leave or break in service to the end of the month in which 
8.11 	payment is received.

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

8.13 	Sec. 5. [352B.087] STATE-AUTHORIZED PURCHASE OF SERVICE CREDIT 
8.14 	FOR PERIODS OF MILITARY SERVICE.
8.15 		Subdivision 1.Service credit purchase authorized. (a) Unless prohibited under 
8.16 	paragraph (b), a member is eligible to purchase service credit, not to exceed five cumulative 
8.17 	years of service credit, for one or more periods of service in the uniformed services, as 
8.18 	defined in United States Code, title 38, section 4303(13), if:
8.19 	(1) the member has at least three years of service credit with the plan;
8.20 	(2) the duration of the member's current period of employment is at least six months; 
8.21 	and
8.22 	(3) one of the following applies:
8.23 	(i) the member's service in the uniformed services occurred before employment in a 
8.24 	position covered by the plan; or
8.25 	(ii) the member did not obtain service credit for a period of military service under section 
8.26 	352B.086.
8.27 	(b) A service credit purchase is prohibited if:
8.28 	(1) the member separated from uniformed service with a dishonorable or bad conduct 
8.29 	discharge or under other than honorable conditions; or
8.30 	(2) the member has purchased or otherwise received service credit from any Minnesota 
8.31 	public employee pension plan for the same period of service in the uniformed services.
9.1 	(c) When purchasing a period of service, if the period of service in the uniformed services 
9.2 	is one year or less, then the member must purchase the full period of service. If the period 
9.3 	of service in the uniformed services is longer than one year, the member may purchase the 
9.4 	full period, not to exceed five cumulative years, or may purchase a portion of the period of 
9.5 	service. If the member purchases a portion of the period of service in the uniformed services, 
9.6 	the portion must:
9.7 	(1) not be less than one year; and
9.8 	(2) be in increments of six months of service.
9.9 		Subd. 2.Application and documentation. To purchase service credit under subdivision 
9.10 	1, a member must apply to the executive director to make the purchase. The application 
9.11 	must include all necessary documentation of the member's qualifications to make the 
9.12 	purchase, signed written permission to allow the executive director to request and receive 
9.13 	necessary verification of applicable facts and eligibility requirements, and any other relevant 
9.14 	information that the executive director may require. The member must submit with the 
9.15 	application payment of the administrative fee in the amount of $250 to cover the costs of 
9.16 	calculating the purchase payment amount under section 356.551. If the member proceeds 
9.17 	with the purchase, the administrative fee will be credited toward the purchase payment 
9.18 	amount.
9.19 		Subd. 3.Purchase payment amount; service credit grant. (a) The purchase payment 
9.20 	amount is the amount determined under section 356.551 for the period or periods of service 
9.21 	requested, except that, for purposes of calculating the purchase payment amount to purchase 
9.22 	service credit for service in the uniformed services that occurred before employment in a 
9.23 	position covered by the plan or between periods of employment in a position covered by 
9.24 	the plan, section 356.551, subdivision 2, paragraph (c), does not apply.
9.25 	(b) Service credit must be granted by the plan to the purchasing member upon the 
9.26 	executive director's receipt of the purchase payment amount. The service credit purchased 
9.27 	under this section may not be used for the purpose of determining a disability benefit under 
9.28 	section 352B.10.
9.29 	(c) Payment must be made before the effective date of the member's retirement.

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

9.31 	Sec. 6. Minnesota Statutes 2020, section 356.551, subdivision 2, is amended to read:
9.32 		Subd. 2.Determination. (a) Unless the minimum purchase amount set forth in paragraph 
9.33 	(c) applies, the prior service credit purchase amount is an amount equal to the actuarial 
10.1 	present value, on the date of payment, as calculated by the chief administrative officer of 
10.2 	the pension plan and reviewed by the actuary retained under section 356.214, of the amount 
10.3 	of the additional retirement annuity obtained by the acquisition of the additional service 
10.4 	credit in this section.
10.5 	(b) Calculation of this amount must be made using the investment return assumption 
10.6 	applicable to the public pension plan specified in section 356.215, subdivision 8, and the 
10.7 	mortality table adopted for the public pension plan.
10.8 	(1) Unless clause (2) applies, the calculation must assume continuous future service in 
10.9 	the public pension plan until, and retirement at, the age at which the minimum requirements 
10.10 	of the fund for normal retirement or retirement with an annuity unreduced for retirement at 
10.11 	an early age, including section 356.30, are met with the additional service credit purchased. 
10.12 	The calculation must also assume a full-time equivalent salary, or actual salary, whichever 
10.13 	is greater, and a future salary history that includes annual salary increases at the applicable 
10.14 	salary increase rate for the plan specified in section 356.215, subdivision 8.
10.15 	(2) This clause applies when the calculation is being done for purposes of section 352.272, 
10.16 	352B.087, or 353.0141, subdivision 3. The calculation must include continuous future 
10.17 	service in the public pension plan until, and retirement at, any age at or after which the 
10.18 	minimum requirements of the fund for early retirement or retirement with an annuity 
10.19 	unreduced for retirement at an early age, including section 356.30, are met with the additional 
10.20 	service credit purchased. The calculation must be determined using the retirement age that 
10.21 	provides the most valuable benefit to the member. The calculation must also assume a 
10.22 	full-time equivalent salary, or actual salary, whichever is greater, and a future salary history 
10.23 	that includes annual salary increases at the applicable salary increase rate for the plan 
10.24 	specified in section 356.215, subdivision 8.
10.25 	(c) The prior service credit purchase amount may not be less than the amount determined 
10.26 	by applying, for each year or fraction of a year being purchased, the sum of the employee 
10.27 	contribution rate, the employer contribution rate, and the additional employer contribution 
10.28 	rate, if any, applicable during that period, to the person's annual salary during that period, 
10.29 	or fractional portion of a year's salary, if applicable, plus interest at the applicable annual 
10.30 	rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, whichever applies, 
10.31 	compounded annually, from the end of the year in which contributions would otherwise 
10.32 	have been made to the date on which the payment is received.
10.33 	(d) Unless otherwise provided by statutes governing a specific plan, payment must be 
10.34 	made in one lump sum within one year of the prior service credit authorization or prior to 
11.1 	the member's effective date of retirement, whichever is earlier. Payment of the amount 
11.2 	calculated under this section must be made by the applicable eligible person.
11.3 	(e) However, the current employer or the prior employer may, at its discretion, pay all 
11.4 	or any portion of the payment amount that exceeds an amount equal to the employee 
11.5 	contribution rates in effect during the period or periods of prior service applied to the actual 
11.6 	salary rates in effect during the period or periods of prior service, plus interest at the 
11.7 	applicable annual rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, whichever 
11.8 	applies, compounded annually, from the date on which the contributions would otherwise 
11.9 	have been made to the date on which the payment is made. If the employer agrees to 
11.10 	payments under this subdivision, the purchaser must make the employee payments required 
11.11 	under this subdivision within 90 days of the prior service credit authorization. If that 
11.12 	employee payment is made, the employer payment under this subdivision must be remitted 
11.13 	to the chief administrative officer of the public pension plan within 60 days of receipt by 
11.14 	the chief administrative officer of the employee payments specified under this subdivision.

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

11.16 	Sec. 7. DENTAL HYGIENIST AND RESIDENTIAL PROGRAM LEAD 
11.17 	PERMITTED TO TRANSFER PRIOR MSRS-GENERAL SERVICE CREDIT.
 11.18 	For the purposes of Minnesota Statutes, section 352.955, subdivision 1, paragraph (b), 
11.19 	a person employed as a residential program lead or as a dental hygienist under Minnesota 
11.20 	Statutes, section 352.91, subdivision 3f, must be determined to be a person who is covered 
11.21 	by legislation implementing the recommendations under section 352.91, subdivision 4a.

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

11.23 	Sec. 8. TRANSFER OF PAST SERVICE CREDIT FROM MINNESOTA STATE 
11.24 	RETIREMENT SYSTEM GENERAL PLAN TO CORRECTIONAL PLAN.
 11.25 		Subdivision 1.Definitions. The following terms have the meanings given in this 
11.26 	subdivision:
11.27 	(1) "Correctional plan" means the correctional employees retirement plan of the 
11.28 	Minnesota State Retirement System.
11.29 	(2) "Executive director" means the executive director of the Minnesota State Retirement 
11.30 	System.
11.31 	(3) "General plan" means the general state employees retirement plan of the Minnesota 
11.32 	State Retirement System.
12.1 	(4) "Service credit" means time credited as allowable service under Minnesota Statutes, 
12.2 	section 352.01, subdivision 11, to an eligible person described in subdivision 3.
12.3 	(5) "Transfer period" means the period from August 9, 2017, to December 22, 2020.
12.4 		Subd. 2.Transfer of past service credit authorized. Notwithstanding any state law to 
12.5 	the contrary, an eligible person described in subdivision 3 who makes payment to the 
12.6 	correctional employees retirement fund, as permitted under subdivision 4, on or before one 
12.7 	year following the effective date of this section is entitled to have:
12.8 	(1) the employer payment made on the eligible person's behalf under subdivision 5; and
12.9 	(2) applicable past service credit transferred from the general plan to the correctional 
12.10 	plan for the transfer period under subdivision 6.
12.11 		Subd. 3.Eligible person. An eligible person is a person who:
12.12 	(1) is an employee of the Department of Corrections;
12.13 	(2) on August 9, 2017, was promoted to the position of corrections transitions program 
12.14 	coordinator, a position eligible to participate in the correctional plan; and
12.15 	(3) from August 9, 2017, to December 22, 2020, was erroneously covered by the general 
12.16 	plan because the department misreported the person's retirement plan eligibility to the 
12.17 	Minnesota State Retirement System.
12.18 		Subd. 4.Payment by eligible person. (a) An eligible person may pay to the executive 
12.19 	director the difference between the employee contribution rate for the general plan and the 
12.20 	employee contribution rate for the correctional plan for the transfer period. The difference 
12.21 	between the two rates must be applied to the eligible person's salary at the time that each 
12.22 	contribution would have been deducted from pay if the eligible person had been covered 
12.23 	by the correctional plan for the transfer period. The payment must include interest at the 
12.24 	applicable annual rate or rates specified in Minnesota Statutes, section 356.59, subdivision 
12.25 	2, calculated from the date that each contribution would have been deducted to the date that 
12.26 	payment is made.
12.27 	(b) The payment under paragraph (a) must be made in a lump sum no later than one year 
12.28 	following the effective date. Upon receipt of the payment, the executive director must notify 
12.29 	the commissioner of corrections that payment was made and of the amount owed under 
12.30 	subdivision 5.
12.31 		Subd. 5.Payment by the Department of Corrections. If an eligible person makes the 
12.32 	payment under subdivision 4, the Department of Corrections, on behalf of the eligible 
13.1 	person, shall pay to the Minnesota State Retirement System the actuarial present value of 
13.2 	the additional benefit resulting from the transferred service credit less the payment made 
13.3 	under subdivision 4. This amount must be paid by the department in a lump sum within 30 
13.4 	days after the date on which the executive director notifies the commissioner of corrections 
13.5 	under subdivision 4.
13.6 		Subd. 6.Transfer of assets and service credit. (a) If the payments under subdivisions 
13.7 	4 and 5 are made, the executive director must transfer assets from the general state employees 
13.8 	retirement fund to the correctional employees retirement fund in an amount equal to the 
13.9 	actuarial present value of the benefits earned by the eligible person under the general plan 
13.10 	during the transfer period. The transfer of assets must be made within 15 days after receipt 
13.11 	of the payments under subdivisions 4 and 5.
13.12 	(b) Upon transfer of the assets under paragraph (a), the eligible person shall have service 
13.13 	credit in the correctional plan and no service credit in the general plan for the transfer period.

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

13.15 	Sec. 9. PURCHASE OF SERVICE CREDIT AUTHORIZED FOR SURVIVOR OF 
13.16 	DECEASED EMPLOYEE.
 13.17 		Subdivision 1.Definitions. For the purpose of this section, the following terms have 
13.18 	the meanings given:
13.19 	(1) "executive director" means the executive director of the Minnesota State Retirement 
13.20 	System;
13.21 	(2) "general plan" means the general state employees retirement plan of the Minnesota 
13.22 	State Retirement System;
13.23 	(3) "service credit" means time credited as allowable service in the general plan under 
13.24 	Minnesota Statutes, section 352.01, subdivision 11; and
13.25 	(4) "surviving spouse" means the surviving spouse of an eligible person described in 
13.26 	subdivision 3.
13.27 		Subd. 2.Purchase of service credit authorized. Notwithstanding any state law to the 
13.28 	contrary, a surviving spouse may purchase service credit, as described under subdivision 
13.29 	4, on behalf of an eligible person. The surviving spouse may purchase only the amount of 
13.30 	service credit that is sufficient for the eligible person to be credited with a total of 60 months 
13.31 	of service credit.
13.32 		Subd. 3.Eligible person. An eligible person is a person who:
14.1 	(1) died in December 2020;
14.2 	(2) was employed at or near the time of the person's death by the Minnesota Housing 
14.3 	Finance Agency; and
14.4 	(3) is credited with no more than 59 months of service credit during the period from 
14.5 	February 1, 2016, to December 1, 2020.
14.6 		Subd. 4.Calculation of payment; payment. (a) The executive director shall calculate 
14.7 	the amount of the purchase authorized under subdivision 2. The purchase amount is equal 
14.8 	to:
14.9 	(1) 12.25 percent of the eligible person's final month of salary; and
14.10 	(2) interest on the amount under clause (1) at the applicable annual rate or rates specified 
14.11 	in Minnesota Statutes, section 356.59, subdivision 2, compounded annually from January 
14.12 	1, 2021, to the date that payment is made.
14.13 	(b) If the surviving spouse elects to pay the purchase amount under paragraph (a), the 
14.14 	purchase amount must be paid to the executive director in a lump sum within one year of 
14.15 	the effective date of this section.
14.16 		Subd. 5.Entitlement to annuity. Upon payment under subdivision 4, the executive 
14.17 	director must credit the eligible person with the purchased service credit and the surviving 
14.18 	spouse is entitled to elect an annuity under Minnesota Statutes, section 352.12, subdivision 
14.19 	2, paragraph (a), (c), or (d), as applicable. If the surviving spouse elects to receive an annuity 
14.20 	under Minnesota Statutes, section 352.12, subdivision 2, paragraph (a) or (c), the surviving 
14.21 	spouse may elect a start date that is as early as January 1, 2021.

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

14.23 	ARTICLE 2
14.24 	PUBLIC EMPLOYEES RETIREMENT ASSOCIATION

14.25 	Section 1. Minnesota Statutes 2021 Supplement, section 353.01, subdivision 2b, is amended 
14.26 	to read:
14.27 		Subd. 2b.Excluded employees. (a) The following public employees are not eligible to 
14.28 	participate as members of the association with retirement coverage by the general employees 
14.29 	retirement plan, the local government correctional employees retirement plan under chapter 
14.30 	353E, or the public employees police and fire retirement plan:
15.1 	(1) persons whose annual salary from one governmental subdivision never exceeds an 
15.2 	amount, stipulated in writing in advance, of $5,100 if the person is not a school district 
15.3 	employee or $3,800 if the person is a school year employee. If annual compensation from 
15.4 	one governmental subdivision to an employee exceeds the stipulated amount in a calendar 
15.5 	year or a school year, whichever applies, after being stipulated in advance not to exceed the 
15.6 	applicable amount, the stipulation is no longer valid and contributions must be made on 
15.7 	behalf of the employee under section 353.27, subdivision 12, from the first month in which 
15.8 	the employee received salary exceeding $425 in a month;
15.9 	(2) public officers who are elected to a governing body, city mayors, or persons who 
15.10 	are appointed to fill a vacancy in an elected office of a governing body, whose term of office 
15.11 	commences on or after July 1, 2002, for the service to be rendered in that elected position;
15.12 	(3) election judges and persons employed solely to administer elections;
15.13 	(4) patient and inmate personnel who perform services for a governmental subdivision;
15.14 	(5) except as otherwise specified in subdivision 12a, employees who are employed solely 
15.15 	in a temporary position as defined under subdivision 12a, and employees who resign from 
15.16 	a nontemporary position and accept a temporary position within 30 days of that resignation 
15.17 	in the same governmental subdivision;
15.18 	(6) employees who are employed by reason of work emergency caused by fire, flood, 
15.19 	storm, or similar disaster, but if the person becomes a probationary or provisional employee 
15.20 	within the same pay period, other than on a temporary basis, the person is a "public 
15.21 	employee" retroactively to the beginning of the pay period;
15.22 	(7) employees who by virtue of their employment in one governmental subdivision are 
15.23 	required by law to be a member of and to contribute to any of the plans or funds administered 
15.24 	by the Minnesota State Retirement System, the Teachers Retirement Association, or the St. 
15.25 	Paul Teachers Retirement Fund Association, but this exclusion must not be construed to 
15.26 	prevent a person from being a member of and contributing to the Public Employees 
15.27 	Retirement Association and also belonging to and contributing to another public pension 
15.28 	plan or fund for other service occurring during the same period of time, and a person who 
15.29 	meets the definition of "public employee" in subdivision 2 by virtue of other service occurring 
15.30 	during the same period of time becomes a member of the association unless contributions 
15.31 	are made to another public retirement plan on the salary based on the other service or to the 
15.32 	Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
15.33 	(8) persons who are members of a religious order and are excluded from coverage under 
15.34 	the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance 
16.1 	of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if 
16.2 	no irrevocable election of coverage has been made under section 3121(r) of the Internal 
16.3 	Revenue Code of 1954, as amended;
16.4 	(9) persons who are:
16.5 	(i) employed by a governmental subdivision who have not reached the age of 23 and 
16.6 	who are enrolled on a full-time basis to attend or are attending classes on a full-time basis 
16.7 	at an accredited school, college, or university in an undergraduate, graduate, or 
16.8 	professional-technical program, or at a public or charter high school;
16.9 	(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist 
16.10 	interns and are serving in a degree or residency program in a public hospital or in a public 
16.11 	clinic; or
16.12 	(iii) students who are serving for a period not to exceed five years in an internship or a 
16.13 	residency program that is sponsored by a governmental subdivision, including an accredited 
16.14 	educational institution;
16.15 	(10) persons who hold a part-time adult supplementary technical college license who 
16.16 	render part-time teaching service in a technical college;
16.17 	(11) for the first three years of employment, foreign citizens who are employed by a 
16.18 	governmental subdivision, except that the following foreign citizens must be considered 
16.19 	included employees under subdivision 2a:
16.20 	(i) H-1B, H-1B1, and E-3 status holders;
16.21 	(ii) employees of Hennepin County or Hennepin Healthcare System, Inc.;
16.22 	(iii) employees legally authorized to work in the United States for three years or more; 
16.23 	and
16.24 	(iv) employees otherwise required to participate under federal law;
16.25 	(12) public hospital employees who elected not to participate as members of the 
16.26 	association before 1972 and who did not elect to participate from July 1, 1988, to October 
16.27 	1, 1988;
16.28 	(13) except as provided in section 353.86, volunteer ambulance service personnel, as 
16.29 	defined in subdivision 35, but persons who serve as volunteer ambulance service personnel 
16.30 	may still qualify as public employees under subdivision 2 and may be members of the Public 
16.31 	Employees Retirement Association and participants in the general employees retirement 
16.32 	plan or the public employees police and fire plan, whichever applies, on the basis of 
17.1 	compensation received from public employment service other than service as volunteer 
17.2 	ambulance service personnel;
17.3 	(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 
17.4 	36, engaging in activities undertaken as part of volunteer firefighter duties, but a person 
17.5 	who is a volunteer firefighter may still qualify as a public employee under subdivision 2 
17.6 	and may be a member of the Public Employees Retirement Association and a participant 
17.7 	in the general employees retirement plan or the public employees police and fire plan, 
17.8 	whichever applies, on the basis of compensation received from public employment activities 
17.9 	other than those as a volunteer firefighter;
17.10 	(15) employees in the building and construction trades, as follows:
17.11 	(i) pipefitters and associated trades personnel employed by Independent School District 
17.12 	No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters 
17.13 	local 455 pension plan who were either first employed after May 1, 1997, or, if first employed 
17.14 	before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section 
17.15 	12;
17.16 	(ii) electrical workers, plumbers, carpenters, and associated trades personnel employed 
17.17 	by Independent School District No. 625, St. Paul, or the city of St. Paul, with coverage 
17.18 	under a collective bargaining agreement by the electrical workers local 110 pension plan, 
17.19 	the plumbers local 34 pension plan, or the carpenters local 322 pension plan who were either 
17.20 	first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be 
17.21 	excluded under Laws 2000, chapter 461, article 7, section 5;
17.22 	(iii) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, 
17.23 	allied tradesworkers, and plasterers employed by the city of St. Paul or Independent School 
17.24 	District No. 625, St. Paul, with coverage under a collective bargaining agreement by the 
17.25 	bricklayers and allied craftworkers local 1 pension plan, the cement masons local 633 
17.26 	pension plan, the glaziers and glassworkers local 1324 pension plan, the painters and allied 
17.27 	trades local 61 pension plan, or the plasterers local 265 pension plan who were either first 
17.28 	employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded 
17.29 	under Laws 2001, First Special Session chapter 10, article 10, section 6;
17.30 	(iv) plumbers employed by the Metropolitan Airports Commission, with coverage under 
17.31 	a collective bargaining agreement by the plumbers local 34 pension plan, who were either 
17.32 	first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be 
17.33 	excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;
18.1 	(v) electrical workers or pipefitters employed by the Minneapolis Park and Recreation 
18.2 	Board, with coverage under a collective bargaining agreement by the electrical workers 
18.3 	local 292 pension plan or the pipefitters local 539 pension plan, who were first employed 
18.4 	before May 2, 2015, and elected to be excluded under Laws 2015, chapter 68, article 11, 
18.5 	section 5;
18.6 	(vi) laborers and associated trades personnel employed by the city of St. Paul or 
18.7 	Independent School District No. 625, St. Paul, who are designated as temporary employees 
18.8 	with coverage under a collective bargaining agreement by a multiemployer plan as defined 
18.9 	in section 356.27, subdivision 1, who were either first employed on or after June 1, 2018, 
18.10 	or if first employed before June 1, 2018, elected to be excluded under Laws 2018, chapter 
18.11 	211, article 16, section 13; and
18.12 	(vii) employees who are trades employees as defined in section 356.27, subdivision 1, 
18.13 	first hired on or after July 1, 2020, by the city of St. Paul or Independent School District 
18.14 	No. 625, St. Paul, except for any trades employee for whom contributions are made under 
18.15 	section 356.24, subdivision 1, clause (8), (9), or (10), by either employer to a multiemployer 
18.16 	plan as defined in section 356.27, subdivision 1;
18.17 	(16) employees who are hired after June 30, 2002, solely to fill seasonal positions under 
18.18 	subdivision 12b which are limited in duration by the employer to a period of six months or 
18.19 	less in each year of employment with the governmental subdivision;
18.20 	(17) persons who are provided supported employment or work-study positions by a 
18.21 	governmental subdivision and who participate in an employment or industries program 
18.22 	maintained for the benefit of these persons where the governmental subdivision limits the 
18.23 	position's duration to up to five years, including persons participating in a federal or state 
18.24 	subsidized on-the-job training, work experience, senior citizen, youth, or unemployment 
18.25 	relief program where the training or work experience is not provided as a part of, or for, 
18.26 	future permanent public employment;
18.27 	(18) independent contractors and the employees of independent contractors;
18.28 	(19) reemployed annuitants of the association during the course of that reemployment;
18.29 	(20) persons appointed to serve on a board or commission of a governmental subdivision 
18.30 	or an instrumentality thereof; and
18.31 	(21) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan 
18.32 	Transit Commission who are members of the International Brotherhood of Teamsters Local 
19.1 	638 and who are, by virtue of that employment, members of the International Brotherhood 
19.2 	of Teamsters Central States pension plan.; and
19.3 	(22) persons employed by the Duluth Transit Authority or any subdivision thereof who 
19.4 	are members of the Teamsters General Local Union 346 and who are, by virtue of that 
19.5 	employment, members of the Central States Southeast and Southwest Areas Pension Fund.
19.6 	(b) Any person performing the duties of a public officer in a position defined in 
19.7 	subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an 
19.8 	employee of an independent contractor.

19.9 	EFFECTIVE DATE. This section is effective on the date the persons employed by the 
19.10 	Duluth Transit Authority or any subdivision thereof become public employees as defined 
19.11 	in Minnesota Statutes, section 353.01, subdivision 2.

19.12 	Sec. 2. Minnesota Statutes 2020, section 353.34, is amended by adding a subdivision to 
19.13 	read:
19.14 		Subd. 3c.Segmented annuities. (a) If a person who is entitled to an annuity has more 
19.15 	than one period of uninterrupted service, the person is entitled to augmentation under 
19.16 	subdivision 3, applied to each period of uninterrupted service. The average salary used to 
19.17 	calculate the annuity for each period of uninterrupted service must be applied as if the person 
19.18 	was a new employee at the beginning of each period of uninterrupted service. The actuarial 
19.19 	assumptions used to calculate the annuity must be those in effect on the effective date of 
19.20 	retirement.
19.21 	(b) For the purpose of this subdivision, "uninterrupted service" means periods of covered 
19.22 	employment during which the person has not been separated from public service for more 
19.23 	than two years.
19.24 	(c) If a person repays a refund, the restored service must be considered as continuous 
19.25 	with the next period of service for which the person has credit with the association.
19.26 	(d) This subdivision applies to persons who become deferred annuitants on or after July 
19.27 	1, 1971. For a person who became a deferred annuitant before July 1, 1971, the paragraph 
19.28 	applies from July 1, 1971, if the former active member applies for an annuity after July 1, 
19.29 	1973.
19.30 	(e) This subdivision must not reduce the annuity otherwise payable under this chapter.

19.31 	EFFECTIVE DATE. This section is effective July 1, 2022.

20.1 	Sec. 3. RETROACTIVE IMPLEMENTATION.
 20.2 	(a) For the purpose of this section, "eligible retiree" means a person:
20.3 	(1) who began to receive a retirement annuity under Minnesota Statutes, chapter 353 or 
20.4 	353E, after June 30, 2018, and before the effective date;
20.5 	(2) who at the time of the person's annuity start date would have been entitled to 
20.6 	augmentation for more than one period of uninterrupted service had section 2 been in effect 
20.7 	at the annuity start date; and
20.8 	(3) for whom a retirement annuity calculated under section 2 is greater than the retirement 
20.9 	annuity to which the person was entitled on the annuity start date.
20.10 	(b) Within 90 days following the effective date, the executive director of the Public 
20.11 	Employees Retirement Association must notify each eligible retiree of the monthly amount 
20.12 	of the annuity to which the eligible retiree would have been entitled had section 2 been in 
20.13 	effect at the eligible retiree's annuity start date. The notice must include the corresponding 
20.14 	monthly amounts payable under any optional forms of annuity to which the eligible retiree 
20.15 	was entitled at the annuity start date and is entitled on the date of the notice.
20.16 	(c) For each eligible retiree, the executive director must adjust the ongoing annuity 
20.17 	amount so that it is the amount calculated under section 2, taking into account any election 
20.18 	of any optional annuity forms of payment and any postretirement increases.
20.19 	(d) The executive director must offer a lump-sum distribution to the eligible retiree of 
20.20 	the difference between the monthly amount determined under section 2 and the monthly 
20.21 	amount being paid to the eligible retiree, multiplied by the number of monthly payments 
20.22 	made to the eligible retiree before the annuity calculated under section 2 begins. The lump 
20.23 	sum must be adjusted to take into account any election of any optional annuity forms of 
20.24 	payment and any postretirement increases. The eligible retiree may elect a distribution of 
20.25 	the lump sum or a direct rollover under Minnesota Statutes, section 356.635, subdivisions 
20.26 	3 to 7, if the lump sum is an eligible rollover distribution as defined in Minnesota Statutes, 
20.27 	section 356.635, subdivisions 4 and 5.

20.28 	EFFECTIVE DATE. This section is effective July 1, 2022.

20.29 	Sec. 4. VESTING CREDIT FOR PAST SERVICE FOR CERTAIN EMPLOYEES 
20.30 	OF THE DULUTH TRANSIT AUTHORITY.
 20.31 	Notwithstanding any state law to the contrary, an employee of the Duluth Transit 
20.32 	Authority or any subdivision thereof, who is not a member of the Teamsters General Local 
21.1 	Union 346, on the effective date must receive credit for all full and partial years of service 
21.2 	as an employee of ATE Management of Duluth, Inc. for the purpose of determining whether 
21.3 	the employee has satisfied the vesting requirement under Minnesota Statutes, section 353.01, 
21.4 	subdivision 47. All service as an employee of ATE Management of Duluth, Inc., must be 
21.5 	considered as allowable service in the general employees retirement plan for vesting purposes.

21.6 	EFFECTIVE DATE. This section is effective on the date the persons employed by the 
21.7 	Duluth Transit Authority or any subdivision thereof become public employees as defined 
21.8 	in Minnesota Statutes, section 353.01, subdivision 2.

21.9 	ARTICLE 3
21.10 	RETIRED TEACHER EARNINGS LIMITATIONS

21.11 	Section 1. SUSPENSION OF EARNINGS LIMITATIONS FOR RETIRED 
21.12 	TEACHERS WHO RETURN TO WORK.
 21.13 		Subdivision 1.Reemployed teacher defined. For the purposes of this section, 
21.14 	"reemployed teacher" means a person who retires under the provisions of Minnesota Statutes, 
21.15 	chapter 354 or 354A, and who subsequently resumes teaching for a public school of the 
21.16 	state, a charter school, or the Perpich Center for Arts Education. Reemployed teacher does 
21.17 	not include a person who resumes teaching for a postsecondary institution, including a state 
21.18 	college or university.
21.19 		Subd. 2.Three-year suspension of earnings limitation for teachers covered by TRA 
21.20 	and SPTRFA. (a) Notwithstanding Minnesota Statutes, section 354.44, subdivision 5, no 
21.21 	portion of a reemployed teacher's annuity paid under Minnesota Statutes, chapter 354, shall 
21.22 	be deferred regardless of the amount of the salary earned from the teaching service during 
21.23 	the preceding fiscal year. This paragraph applies only to salary earned during fiscal years 
21.24 	2022, 2023, and 2024 and annuity payments made during calendar years 2023, 2024, and 
21.25 	2025.
21.26 	(b) Notwithstanding Minnesota Statutes, section 354A.31, subdivision 3, no portion of 
21.27 	a reemployed teacher's annuity paid under Minnesota Statutes, chapter 354A, shall be 
21.28 	deferred or forfeited regardless of the amount of the salary earned from the teaching service 
21.29 	during the preceding calendar year. This subdivision applies only to salary earned during 
21.30 	calendar years 2022, 2023, and 2024 and annuity payments made during calendar years 
21.31 	2023, 2024, and 2025.
21.32 		Subd. 3.Expiration date. This section expires effective January 1, 2026.

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

22.1 	ARTICLE 4
22.2 	VOLUNTEER FIREFIGHTER RETIREMENT

22.3 	Section 1. Minnesota Statutes 2020, section 353G.01, subdivision 7, is amended to read:
22.4 		Subd. 7.Good time Service credit. "Good time Service credit" means the length of 
22.5 	service credit for an active firefighter that is reported by the applicable fire chief based on 
22.6 	the minimum firefighter activity standards of the fire department. The credit may be reported 
22.7 	on an annual or monthly basis.

22.8 	EFFECTIVE DATE. This section is effective January 1, 2023.

22.9 	Sec. 2. Minnesota Statutes 2020, section 353G.01, subdivision 9a, is amended to read:
22.10 		Subd. 9a.Relief association. "Relief association" means a volunteer firefighter relief 
22.11 	association established under chapter 424A, including a volunteer firefighter relief association
22.12 	to which records, assets, and liabilities related to lump-sum or monthly benefits for active 
22.13 	and former firefighters will be transferred from the retirement fund upon satisfaction of the 
22.14 	requirements of section 353G.17.

22.15 	EFFECTIVE DATE. This section is effective January 1, 2023.

22.16 	Sec. 3. Minnesota Statutes 2020, section 353G.05, subdivision 1, is amended to read:
22.17 		Subdivision 1.Entities eligible to request coverage. (a) A relief association or a 
22.18 	municipality or independent nonprofit firefighting corporation affiliated with a relief 
22.19 	association may elect to have its volunteer firefighters covered by the lump-sum retirement 
22.20 	division, if the volunteer firefighters for whom coverage is being requested are covered by 
22.21 	a relief association that is a lump-sum defined benefit relief association or a defined 
22.22 	contribution relief association governed by chapter 424A.
22.23 	(b) A relief association or a municipality or independent nonprofit firefighting corporation 
22.24 	affiliated with a relief association may elect to have its volunteer firefighters covered by 
22.25 	the lump-sum retirement division or the monthly benefit retirement division of the retirement 
22.26 	plan, if the volunteer firefighters for whom coverage is being requested are covered by a 
22.27 	relief association that is a monthly benefit defined benefit relief association governed by 
22.28 	chapter 424A.
22.29 	(b)(c) A municipality or independent nonprofit firefighting corporation that is not 
22.30 	affiliated with a relief association may elect to have its volunteer firefighters covered by 
22.31 	the lump-sum retirement division of the retirement plan.

23.1 	EFFECTIVE DATE. This section is effective January 1, 2023.

23.2 	Sec. 4. Minnesota Statutes 2020, section 353G.05, is amended by adding a subdivision to 
23.3 	read:
23.4 		Subd. 1a.Requesting coverage. (a) An entity that is eligible under subdivision 1 to 
23.5 	make a request for coverage may initiate the process of obtaining coverage by filing a request 
23.6 	with the executive director, as described in this subdivision.
23.7 	(b) The request for coverage must be in writing and on a form prescribed by the executive 
23.8 	director.
23.9 	(c) In the request for coverage, the entity must identify the desired service pension 
23.10 	amount and select a vesting schedule from the following options:
23.11 	(1) incremental vesting beginning with 40 percent vested after completing five years of 
23.12 	active service and increasing by four percent upon completion of each additional year of 
23.13 	active service, until 100 percent vested upon completion of 20 years of active service;
23.14 	(2) incremental vesting beginning with 40 percent vested after completing five years of 
23.15 	active service and increasing by 12 percent upon completion of each additional year of 
23.16 	active service, until 100 percent vested upon completion of 10 years of active service; or
23.17 	(3) incremental vesting beginning with 40 percent vested after completing ten years of 
23.18 	active service and increasing by six percent upon completion of each additional year of 
23.19 	active service, until 100 percent vested upon completion of 20 years of active service.
23.20 	The entity must not select a vesting schedule that requires more years of service to 
23.21 	become partially or fully vested than the vesting schedule in effect under the former affiliated 
23.22 	relief association, if any.
23.23 	(d) If the request for coverage is for volunteer firefighters covered by a monthly benefit 
23.24 	defined benefit relief association, the entity making the request must elect coverage either 
23.25 	by the monthly benefit retirement division or by the lump-sum retirement division.
23.26 	(e) If the request for coverage is for volunteer firefighters covered by a relief association 
23.27 	that provides both a monthly benefit and a lump-sum benefit, the entity making the request 
23.28 	must elect coverage by the monthly benefit retirement division, the lump-sum retirement 
23.29 	division, or by both divisions.
23.30 	(f) If the request for coverage is for volunteer firefighters covered by a relief association 
23.31 	with a retirement plan governed by chapter 424A, the secretary of the relief association, 
23.32 	following approval of the request by the board of the relief association, and the chief 
24.1 	administrative officer of the entity affiliated with the relief association, following approval 
24.2 	of the request by the governing body of the entity, must jointly make the request. If the 
24.3 	relief association is affiliated with more than one entity, the chief administrative officer of 
24.4 	each affiliated entity must execute the request.
24.5 	(g) If the request for coverage is for volunteer firefighters who are not covered by a 
24.6 	relief association, the chief administrative officer of the entity operating the fire department 
24.7 	must make the request.

24.8 	EFFECTIVE DATE. This section is effective January 1, 2023.

24.9 	Sec. 5. Minnesota Statutes 2020, section 353G.05, subdivision 2, is amended to read:
24.10 		Subd. 2.Election of coverage;Cost analysis for coverage by the lump sum
24.11 	division. (a) The process for electing coverage of volunteer firefighters by the lump-sum 
24.12 	retirement division is initiated by a request to the executive director for a cost analysis of 
24.13 	the prospective retirement coverage under the lump-sum retirement division. Upon receipt 
24.14 	of a request for coverage by the lump-sum division, the executive director must prepare a 
24.15 	cost analysis as described in this subdivision.
24.16 	(b) If the volunteer firefighters are currently covered by a lump-sum volunteer firefighter 
24.17 	relief association or a defined contribution volunteer firefighter relief association governed 
24.18 	by chapter 424A, the cost analysis of the prospective retirement coverage must be requested 
24.19 	jointly by the secretary of the volunteer firefighter relief association, following approval of 
24.20 	the request by the board of the volunteer firefighter relief association, and the chief 
24.21 	administrative officer of the entity associated with the relief association, following approval 
24.22 	of the request by the governing body of the entity associated with the relief association. If 
24.23 	the relief association is associated with more than one entity, the chief administrative officer 
24.24 	of each associated entity must execute the request. If the volunteer firefighters are not 
24.25 	currently covered by a volunteer firefighter relief association, the cost analysis of the 
24.26 	prospective retirement coverage must be requested by the chief administrative officer of 
24.27 	the entity operating the fire department. The request must be made in writing and must be 
24.28 	made on a form prescribed by the executive director.
24.29 	(c)(b) The cost analysis of the prospective retirement coverage by the lump-sum 
24.30 	retirement division of the statewide retirement planunder this subdivision must be based 
24.31 	on:
24.32 	(1) the service pension amount under section 353G.11 closest to the service pension 
24.33 	amount provided by the volunteer firefighter relief association if the relief association is a 
25.1 	lump-sum defined benefit plan, or thean amount that is equal to 95 percent of the most 
25.2 	current average account balance per relief association member if the relief association is a 
25.3 	defined contribution plan, or to the lowest service pension amount under section 353G.11
25.4 	if there is no volunteer firefighter relief association, rounded up,; and any other
25.5 	(2) if different than the amount under clause (1), the service pension amount designated 
25.6 	by the requester or requesters identified in the request under subdivision 1a.
25.7 	(c) The cost analysis must take into account the vesting option selected in the request 
25.8 	under subdivision 1a.
25.9 	(d) The cost analysis must be prepared using a mathematical procedure certified as 
25.10 	accurate by an approved actuary retained by the Public Employees Retirement Association.
25.11 	(d)(e) If the request for coverage was made by a cost analysis is requested and a volunteer 
25.12 	firefighters relief association exists that has filed the information required under section 
25.13 	424A.014 in a timely fashion, upon request by the executive director, the state auditor shall 
25.14 	provide the most recent data available on the financial condition of the volunteer firefighter
25.15 	relief association, the most recent firefighter demographic data available, and a copy of the 
25.16 	current relief association bylaws. If a cost analysis is requested, but no volunteer firefighter
25.17 	relief association exists, the chief administrative officer of the entity operating the fire 
25.18 	department shall provide the demographic information on the volunteer firefighters serving 
25.19 	as members of the fire department requested by the executive director.

25.20 	EFFECTIVE DATE. This section is effective January 1, 2023.

25.21 	Sec. 6. Minnesota Statutes 2020, section 353G.05, subdivision 3, is amended to read:
25.22 		Subd. 3.Election of coverage;Cost analysis for coverage by the monthly benefit
25.23 	retirement division. (a) The process for electing coverage of volunteer firefighters by the 
25.24 	monthly retirement division is initiated by a request to the executive director for an actuarial 
25.25 	cost analysis of the prospective retirement coverage under the monthly benefit retirement 
25.26 	division. This request must be made by the secretary of the volunteer firefighter relief 
25.27 	association and the chief administrative officer of the entity associated with the relief 
25.28 	association, both of which must first obtain approval of the request from their respective 
25.29 	municipal governing body or independent nonprofit firefighting corporation. The request 
25.30 	must be made in writing and must be made on a form prescribed by the executive director.
25.31 	(b) Coverage by the monthly benefit retirement division may only be elected if the 
25.32 	volunteer firefighters are covered by a monthly benefit volunteer firefighter relief association 
25.33 	governed by chapter 424A.
26.1 	(c)(a) Upon receipt of a request for coverage by the monthly benefit retirement division, 
26.2 	the executive director must prepare a cost analysis as described in this subdivision.
26.3 	(b) The cost analysis under paragraph (a)this subdivision must be prepared by the 
26.4 	approved actuary retained by the Public Employees Retirement Association. The cost 
26.5 	analysis must be based on:
26.6 	(1) the monthly service pension amount and other retirement benefit types and amounts 
26.7 	in effect for the volunteer firefighter relief association as of the date of the request and any 
26.8 	other;
26.9 	(2) if different than the amount or amounts designated by the requesters, as disclosed
26.10 	under clause (1), the monthly pension amount identified in the request under subdivision 
26.11 	1a and evaluated in a special actuarial valuation prepared under sections 356.215 and 
26.12 	356.216; and
26.13 	(2) (3) the standards for actuarial work, and the actuarial assumptions utilized in the 
26.14 	most recent prior actuarial valuation, except that the applicable investment return actuarial 
26.15 	assumption is six percent.
26.16 	(c) The cost analysis must take into account the vesting option selected in the request 
26.17 	under subdivision 1a.
26.18 	(d) The secretary of the volunteer firefighter relief association making the request must 
26.19 	supply the demographic and financial data necessary for the cost analysis to be prepared.

26.20 	EFFECTIVE DATE. This section is effective January 1, 2023.

26.21 	Sec. 7. Minnesota Statutes 2020, section 353G.09, subdivision 1, is amended to read:
26.22 		Subdivision 1.Entitlement. Except as provided in subdivision 3, An active(a) A member 
26.23 	of the retirement plan is entitled to a service pension from the retirement plan if the person
26.24 	member:
26.25 	(1) has separated from active service with the fire department for at least 30 days;
26.26 	(2) has attained the age of at least 50 years;
26.27 	(3) has completed at least five years of good time service credit as a member of the 
26.28 	retirement plan if the person is a member of the lump-sum retirement division or has 
26.29 	completed at least the minimum number of years of good time service credit as a member 
26.30 	of the retirement plan specified in the retirement benefit plan document attributable to the 
26.31 	applicable fire department if the person is a member of the monthly benefit retirement 
26.32 	division satisfied the minimum service requirement in paragraph (b); and
27.1 	(4) applies in a manner prescribed by the executive director for the service pension.
27.2 	(b) A member satisfies the minimum service requirement if the member meets at least 
27.3 	one of the following requirements:
27.4 	(1) the member is at least 40 percent vested based on years of service as a member of 
27.5 	the retirement plan;
27.6 	(2) the member is at least 40 percent vested based on years of service with the fire 
27.7 	department and the total number of years of service as a member of the former affiliated 
27.8 	relief association plus years of service as a member of the retirement plan is at least five; 
27.9 	or
27.10 	(3) the member has completed at least the minimum number of years of service as a 
27.11 	member of the retirement plan specified in the retirement benefit plan document attributable 
27.12 	to the applicable fire department if the person is a member of the monthly benefit retirement 
27.13 	division.

27.14 	EFFECTIVE DATE. This section is effective January 1, 2023.

27.15 	Sec. 8. Minnesota Statutes 2020, section 353G.09, subdivision 2, is amended to read:
27.16 		Subd. 2.Vesting schedule; nonforfeitable portion of service pension. (a) IfExcept 
27.17 	as provided in paragraphs (c) and (d), an active member of the lump-sum retirement division 
27.18 	has completed less than 20 years of good time service credit as a member of the lump-sum 
27.19 	retirement division of the plan, the person's entitlementis entitled to a service pension is
27.20 	equal to the nonforfeitable percentage of the applicable service pension amount, taking into 
27.21 	account years of service as a member of the retirement plan plus years of service as a member 
27.22 	of the former affiliated relief association, if any, as follows:

27.23
27.24	Completed years of good time service 
credit
		Nonforfeitable percentage of the service 
pension
	
27.25	less than 5
		0 percent
	
27.26	5
		40 percent
	
27.27	6
		44 percent
	
27.28	7
		48 percent
	
27.29	8
		52 percent
	
27.30	9
		56 percent
	
27.31	10
		60 percent
	
27.32	11
		64 percent
	
27.33	12
		68 percent
	
27.34	13
		72 percent
	
28.1	14
		76 percent
	
28.2	15
		80 percent
	
28.3	16
		84 percent
	
28.4	17
		88 percent
	
28.5	18
		92 percent
	
28.6	19
		96 percent
	
28.7 	(b) If an active member of the monthly benefit retirement division has completed less 
28.8 	than 20 years of good time service credit as a member of the monthly benefit retirement 
28.9 	division of the plan, the person's entitlement to a service pension must be governed by the 
28.10 	retirement benefit plan document attributable to the applicable fire department.
28.11 	(c) A person described in paragraph (d) is entitled to the vested portion of the service 
28.12 	pension as determined by applying the vesting schedule selected in the request for coverage 
28.13 	under section 353G.05, subdivision 1a, taking into account years of service as a member 
28.14 	of the retirement plan plus years of service as a member of the former affiliated relief 
28.15 	association, if any.
28.16 	(d) A person is described in this paragraph if the person becomes a member of the 
28.17 	lump-sum retirement division in connection with the transfer of coverage from a relief 
28.18 	association to the retirement plan on or after January 1, 2023, or in connection with a 
28.19 	municipality or independent nonprofit firefighting corporation joining the retirement plan 
28.20 	on or after January 1, 2023.

28.21 	EFFECTIVE DATE. This section is effective January 1, 2023.

28.22 	Sec. 9. Minnesota Statutes 2021 Supplement, section 353G.11, subdivision 1, is amended 
28.23 	to read:
28.24 		Subdivision 1.Service pension levels; lump-sum retirement division. Except as 
28.25 	provided in subdivision 1a, the lump-sum retirement division of the retirement plan provides 
28.26 	the following levels of service pension amounts per full year of good time service credit to 
28.27 	be selected at the election of coverage:
28.28 	(1) a minimum service pension level of $500 per year;
28.29 	(2) a maximum service pension level equal to the largest maximum lump-sum service 
28.30 	pension amount permitted under section 424A.02, subdivision 2c subdivision 3, as a 
28.31 	maximum lump-sum service pension amount payable for each year of service; and
28.32 	(3) service pension levels between the minimum level and the maximum level in $100 
28.33 	increments.

29.1 	EFFECTIVE DATE. This section is effective January 1, 2023.

29.2 	Sec. 10. Minnesota Statutes 2020, section 424A.003, is amended to read:
29.3 	424A.003 CERTIFICATION OF SERVICE CREDIT.
29.4 	(a) When a municipal fire department, a joint powers fire department, or an independent 
29.5 	nonprofit firefighting corporation is directly associated with the volunteer firefighters relief 
29.6 	association, the fire chief shall certify annually by March 31 the service credit for the 
29.7 	previous calendar year of each volunteer firefighter rendering active service with the fire 
29.8 	department.
29.9 	(b) The certification shall be made to an officer of the relief association's board of trustees 
29.10 	and to the municipal clerk or clerk-treasurer of the largest municipality in population served 
29.11 	by the associated fire department.
29.12 	(c) The fire chief shall notify each volunteer firefighter rendering active service with 
29.13 	the fire department of the amount of service credit rendered by the firefighter for the previous 
29.14 	calendar year. Upon request, the fire chief shall provide the firefighter with a written 
29.15 	explanation and documentation to support the determination of service credit. The service 
29.16 	credit notification and a description of the process and deadlines for the firefighter to 
29.17 	challenge the fire chief's determination of service credit must be provided to the firefighter 
29.18 	at least 21 days prior to its certification to the relief association and municipality. If the 
29.19 	service credit amount is challenged, the fire chief shall accept and consider any additional 
29.20 	pertinent information and shall make a final determination of service credit.
29.21 	(d) The service credit certification must be expressed as the number of completed months 
29.22 	of the previous year during which an active volunteer firefighter rendered at least the 
29.23 	minimum level of duties as specified and required by the fire department under the rules, 
29.24 	regulations, and policies applicable to the fire department. No more than one year of service 
29.25 	credit may be certified for a calendar year.
29.26 	(e) If a volunteer firefighter who is a member of the relief association leaves active 
29.27 	firefighting service to render active military service that is required to be governed by the 
29.28 	federal Uniformed Services Employment and Reemployment Rights Act, as amended, the 
29.29 	firefighter must be certified as providing service credit for the period of the military service, 
29.30 	up to the applicable limit of the federal Uniformed Services Employment and Reemployment 
29.31 	Rights Act. If the volunteer firefighter does not return from the military service in compliance 
29.32 	with the federal Uniformed Services Employment and Reemployment Rights Act, the service 
30.1 	credits applicable to that military service credit period are forfeited and canceled at the end 
30.2 	of the calendar year in which the time limit set by federal law occurs.

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

30.4 	Sec. 11. Minnesota Statutes 2020, section 424A.015, subdivision 2, is amended to read:
30.5 		Subd. 2.No assignment or garnishment. Except as provided in sections 424A.05, 
30.6 	518.58, 518.581, and 518A.53:
30.7 	(1) a service pension or ancillary benefits paid or payable from the special fund of a 
30.8 	relief association to any person receiving or entitled to receive a service pension or ancillary 
30.9 	benefits is not subject to garnishment, judgment, execution, or other legal process, except 
30.10 	as provided in section 518.58, 518.581, or 518A.53.; and
30.11 	(2) no person entitled to a service pension or ancillary benefits from the special fund of 
30.12 	a relief association may assign any service pension or ancillary benefit payments, and the 
30.13 	association does not have the authority to recognize any assignment or pay over any sum 
30.14 	which has been assigned.

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

30.16 	Sec. 12. Minnesota Statutes 2021 Supplement, section 424A.02, subdivision 3, is amended 
30.17 	to read:
30.18 		Subd. 3.Determining maximum pension benefit. (a) Except as provided in paragraph 
30.19 	(b) and section 424B.22, subdivision 4, a defined benefit relief association may not set in 
30.20 	its bylaws a service pension amount above the following maximum amounts:
30.21 	(1) for a defined benefit relief association in which the governing bylaws provide for a 
30.22 	monthly benefit service pension as an alternative form of service pension payment to a 
30.23 	lump-sum service pension, the maximum monthly service pension amount for each pension 
30.24 	payment type must be determined using the applicable table contained in subdivision 2b or 
30.25 	2c. per month for each year of service credited is the lesser of $100 or the maximum monthly 
30.26 	service pension amount that could be adopted by the relief association as a bylaws amendment 
30.27 	that satisfies section 424A.093, subdivision 6, paragraph (d); and
30.28 	(2) for a defined benefit relief association in which the governing bylaws provide for a 
30.29 	lump-sum service pension, the maximum lump-sum service pension amount for each year 
30.30 	of service credited is the lesser of $15,000 or the maximum lump-sum service pension 
30.31 	amount that could be adopted by the relief association as a bylaws amendment that satisfies 
30.32 	section 424A.092, subdivision 6, paragraph (e).
31.1 	(b) If a defined benefit relief association establishes a service pension in compliance 
31.2 	with the applicable maximum contained in subdivision 2b or 2c and the minimum average 
31.3 	amount of available financing per active covered firefighter is subsequently reduced because 
31.4 	of a reduction in fire state aid or because of an increase in the number of active firefighters, 
31.5 	the relief association may continue to provide the prior service pension amount specified 
31.6 	in its bylaws, but may not increase the service pension amount until the minimum average 
31.7 	amount of available financing per firefighter under the table in subdivision 2b or 2c, 
31.8 	whichever applies, permits.
31.9 	(c) No defined benefit relief association is authorized to provide a service pension in an 
31.10 	amount greater than the largest applicable flexible service pension maximum amount even 
31.11 	if the amount of available financing per firefighter is greater than the financing amount 
31.12 	associated with the largest applicable flexible service pension maximum.
31.13 	(b) A defined benefit relief association may set in its bylaws a service pension amount 
31.14 	that is not greater than the maximum amounts in clause (1) or (2), as applicable, but only 
31.15 	if the service pension amount has been ratified by the municipality.
31.16 	(1) For a defined benefit relief association that pays a monthly service pension, the 
31.17 	maximum monthly service pension amount per month for each year of service credited is 
31.18 	$100.
31.19 	(2) For a defined benefit relief association that pays a lump-sum service pension, the 
31.20 	maximum lump-sum service pension amount for each year of service credited is $15,000.
31.21 	(d)(c) The method of calculating service pensions must be applied uniformly for all 
31.22 	years of active service. Credit must be given for all years of active service, unless the bylaws 
31.23 	of the relief association provide that service credit is not given for:
31.24 	(1) years of active service in excess of caps on service credit; or
31.25 	(2) years of active service earned by a former member who:
31.26 	(i) has ceased duties as a volunteer firefighter with the fire department before becoming 
31.27 	vested under subdivision 2; and
31.28 	(ii) has not resumed active service with the fire department and active membership in 
31.29 	the relief association for a period as defined in the relief association's bylaws, of not less 
31.30 	than five years.

31.31 	EFFECTIVE DATE. This section is effective January 1, 2023.

32.1 	Sec. 13. Minnesota Statutes 2021 Supplement, section 424A.02, subdivision 3a, is amended 
32.2 	to read:
32.3 		Subd. 3a.Penalty for paying pension greater than applicable maximum. (a) If a 
32.4 	defined benefit relief association pays a service pension greater than the applicable maximum 
32.5 	service pension associated with the applicable average amount of available financing per 
32.6 	active covered firefighter under the table in subdivision 2b or 2c, whichever applies, the 
32.7 	maximum service pension under subdivision 3, paragraph (b), or the applicable maximum 
32.8 	service pension amount specified in subdivision 3, paragraph (c), whichever is less, the state 
32.9 	auditor shallmust notify the relief association that the service pension paid is greater than 
32.10 	the applicable maximum service pension and that the penalty under this subdivision will 
32.11 	be imposed, unless the relief association reduces the service pension amount to an amount 
32.12 	that is not greater than the applicable maximum service pension amount and recovers the 
32.13 	overpaid service pension. If the service pension amount is not reduced and the overpayment 
32.14 	is not recovered, the state auditor must:
32.15 	(1) disqualify the municipality or the independent nonprofit firefighting corporation 
32.16 	associated with the relief association from receiving fire state aid by making the appropriate 
32.17 	notification to the municipality and the commissioner of revenue, with the disqualification 
32.18 	applicable for the next apportionment and payment of fire state aid; and
32.19 	(2) order the treasurer of the applicable relief association to recover the amount of the 
32.20 	overpaid service pension or pensions from any retired firefighter who received an 
32.21 	overpayment.
32.22 	(b) Fire state aid amounts from disqualified municipalities for the period of 
32.23 	disqualifications under paragraph (a), clause (1), must be credited to the amount of fire 
32.24 	insurance premium tax proceeds available for the next subsequent fire state aid 
32.25 	apportionment.
32.26 	(c) The amount of any overpaid service pension recovered under paragraph (a), clause 
32.27 	(2), must be credited to the amount of fire insurance premium tax proceeds available for 
32.28 	the next subsequent fire state aid apportionment.
32.29 	(d) The determination of the state auditor that a relief association has paid a service 
32.30 	pension greater than the applicable maximum must be made on the basis of the information 
32.31 	filed by the relief association and the municipality with the state auditor under this chapter 
32.32 	and any other relevant information that comes to the attention of the state auditor. The 
32.33 	determination of the state auditor is final. An aggrieved municipality, relief association, or 
32.34 	person may appeal the determination under section 480A.06.
33.1 	(e) The state auditor may certify, upon learning that a relief association overpaid a service 
33.2 	pension based on an error in the maximum service pension calculation, the municipality or 
33.3 	independent nonprofit firefighting corporation associated with the relief association for fire 
33.4 	state aid if (1) there is evidence that the error occurred in good faith, and (2) the relief 
33.5 	association has initiated recovery of any overpayment amount. Notwithstanding paragraph 
33.6 	(c), all overpayments recovered under this paragraph must be credited to the relief 
33.7 	association's special fund.

33.8 	EFFECTIVE DATE. This section is effective January 1, 2023.

33.9 	Sec. 14. Minnesota Statutes 2020, section 424A.05, subdivision 3, is amended to read:
33.10 		Subd. 3.Authorized disbursements from special fund. (a) Disbursements from the 
33.11 	special fund may not be made for any purpose other than one of the following:
33.12 	(1) for the payment of service pensions to retired members of the relief association if 
33.13 	authorized and paid under law and the bylaws governing the relief association;
33.14 	(2) for the purchase of an annuity for the applicable person under section 424A.015, 
33.15 	subdivision 3, for the transfer of service pension or benefit amounts to the applicable person's 
33.16 	individual retirement account under section 424A.015, subdivision 4, or to the applicable 
33.17 	person's account in the Minnesota deferred compensation plan under section 424A.015, 
33.18 	subdivision 5;
33.19 	(3) for the payment of temporary or permanent disability benefits to disabled members 
33.20 	of the relief association if authorized and paid under law and specified in amount in the 
33.21 	bylaws governing the relief association;
33.22 	(4) for the payment of survivor benefits or for the payment of a death benefit to the estate 
33.23 	of the deceased active or deferred firefighter, if authorized and paid under law and specified 
33.24 	in amount in the bylaws governing the relief association;
33.25 	(5) for the payment of the fees, dues and assessments to the Minnesota State Fire 
33.26 	Department Association and to the Minnesota State Fire Chiefs Association in order to 
33.27 	entitle relief association members to membership in and the benefits of these associations 
33.28 	or organizations;
33.29 	(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit 
33.30 	Association, or an insurance company licensed by the state of Minnesota offering casualty 
33.31 	insurance, in order to entitle relief association members to membership in and the benefits 
33.32 	of the association or organization; and
34.1 	(7) for the payment of administrative expenses of the relief association as authorized 
34.2 	under subdivision 3b.; and
34.3 	(8) for the payment of a service pension to the former spouse of a member or former 
34.4 	member of a relief association, if the former spouse is an alternate payee designated in a 
34.5 	qualified domestic relations order under subdivision 5.
34.6 	(b) Checks or authorizations for electronic fund transfers for disbursements authorized 
34.7 	by this section must be signed by the relief association treasurer and at least one other elected 
34.8 	trustee who has been designated by the board of trustees to sign the checks or authorizations. 
34.9 	A relief association may make disbursements authorized by this subdivision by electronic 
34.10 	fund transfers only if the specific method of payment and internal control policies and 
34.11 	procedures regarding the method are approved by the board of trustees.

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

34.13 	Sec. 15. Minnesota Statutes 2020, section 424A.05, is amended by adding a subdivision 
34.14 	to read:
34.15 		Subd. 5.Qualified domestic relations orders. (a) A "qualified domestic relations order" 
34.16 	means a domestic relations order that creates or recognizes the existence of an alternate 
34.17 	payee's right to or assigns to an alternate payee the right to receive a service pension that is 
34.18 	all or any portion of the service pension payable with respect to a member or former member 
34.19 	of a relief association.
34.20 	(b) An "alternate payee" means the former spouse of a member or former member of a 
34.21 	relief association, including a former spouse who is a distributee as defined in section 
34.22 	356.635, subdivision 7, clause (3).
34.23 	(c) A relief association must comply with a qualified domestic relations order purporting 
34.24 	to assign all or a portion of a service pension accrued under the retirement plan of the relief 
34.25 	association, to the extent vested, if the payment or payments required by the order are within 
34.26 	the limits described in section 518.58, subdivision 4, paragraph (a), clauses (1) to (4). For 
34.27 	the purpose of applying section 518.58, subdivision 4, paragraph (a), "plan" or "pension 
34.28 	plan" as used in paragraph (a) means the articles or bylaws of the relief association and 
34.29 	chapter 424A, as applicable to the relief association.
34.30 	(d) Notwithstanding any state law to the contrary, the bylaws of a relief association may 
34.31 	permit distribution to an alternate payee under a qualified domestic relations order:
34.32 	(1) as early as administratively practicable after the order is received by the relief 
34.33 	association, even if the member whose service pension is being assigned to the alternate 
35.1 	payee under the order has not yet reached age 50 or separated from active service with the 
35.2 	fire department affiliated with the relief association; and
35.3 	(2) in a lump sum, even if the relief association is a defined benefit relief association 
35.4 	that pays monthly service pensions under section 424A.093.
35.5 	(e) If the service pension is an eligible rollover distribution as defined in section 356.635, 
35.6 	subdivisions 4 and 5, the relief association must permit the alternate payee to elect a direct 
35.7 	rollover, as provided under section 356.635, subdivisions 3 to 7.

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

35.9 	Sec. 16. Minnesota Statutes 2021 Supplement, section 424A.091, subdivision 3, is amended 
35.10 	to read:
35.11 		Subd. 3.Remedy for noncompliance; determination. (a) A municipality in which 
35.12 	there exists a firefighters relief association as specified in subdivision 1 which does not 
35.13 	comply with the applicable provisions of sections 424A.091 to 424A.096 or the provisions 
35.14 	of any applicable special law relating to the funding or financing of the association does 
35.15 	not qualify initially to receive, and is not entitled subsequently to retain, fire state aid under 
35.16 	chapter 477B until the reason for the disqualification specified by the state auditor is 
35.17 	remedied, whereupon the municipality or relief association, if otherwise qualified, is entitled 
35.18 	to again receive fire state aid for the year occurring immediately subsequent to the year in 
35.19 	which the disqualification is remedied.
35.20 	(b) The state auditor shall determine if a municipality to which a firefighters' relief 
35.21 	association is directly associated or a firefighters relief association fails to comply with the 
35.22 	provisions of sections 424A.091 to 424A.096 or the funding or financing provisions of any 
35.23 	applicable special law based upon the information contained in the annual financial report 
35.24 	of the firefighters relief association required under section 424A.014, the actuarial valuation 
35.25 	of the relief association, if applicable, the relief association officers' financial requirements 
35.26 	of the relief association and minimum municipal obligation determination documentation 
35.27 	under section 424A.092, subdivisions 3 and 4; 424A.093, subdivisions 4 and 5; or 424A.094, 
35.28 	subdivision 2, if requested to be filed by the state auditor, the applicable municipal or 
35.29 	independent nonprofit firefighting corporation budget, if requested to be filed by the state 
35.30 	auditor, and any other relevant documents or reports obtained by the state auditor.
35.31 	(c) The municipality or independent nonprofit firefighting corporation and the associated 
35.32 	relief association are not eligible to receive or to retain fire state aid if:
36.1 	(1) the relief association fails to prepare or to file the financial report or financial 
36.2 	statement under section 424A.014;
36.3 	(2) the relief association treasurer is not bonded in the manner and in the amount required 
36.4 	by section 424A.014, subdivision 4;
36.5 	(3) the relief association officers fail to determine or improperly determine the accrued 
36.6 	liability and the annual accruing liability of the relief association under section 424A.092, 
36.7 	subdivisions 2, 2a, and 3, paragraph (c), clause (2), if applicable;
36.8 	(4) if applicable, the relief association officers fail to obtain and file a required actuarial 
36.9 	valuation or the officers file an actuarial valuation that does not contain the special fund 
36.10 	actuarial liability calculated under the entry age normal actuarial cost method, the special 
36.11 	fund current assets, the special fund unfunded actuarial accrued liability, the special fund 
36.12 	normal cost under the entry age normal actuarial cost method, the amortization requirement 
36.13 	for the special fund unfunded actuarial accrued liability by the applicable target date, a 
36.14 	summary of the applicable benefit plan, a summary of the membership of the relief 
36.15 	association, a summary of the actuarial assumptions used in preparing the valuation, and a 
36.16 	signed statement by the actuary attesting to its results and certifying to the qualifications of 
36.17 	the actuary as an approved actuary under section 356.215, subdivision 1, paragraph (c);
36.18 	(5) the municipality failed to provide a municipal contribution, or the independent 
36.19 	nonprofit firefighting corporation failed to provide a corporate contribution, in the amount 
36.20 	equal to the minimum municipal obligation if the relief association is governed under section 
36.21 	424A.092, or the amount necessary, when added to the fire state aid actually received in 
36.22 	the plan year in question, to at least equal in total the calculated annual financial requirements 
36.23 	of the special fund of the relief association if the relief association is governed under section 
36.24 	424A.093, and, if the municipal or corporate contribution is deficient, the municipality 
36.25 	failed to include the minimum municipal obligation certified under section 424A.092, 
36.26 	subdivision 3, or 424A.093, subdivision 5, in its budget and tax levy or the independent 
36.27 	nonprofit firefighting corporation failed to include the minimum corporate obligation certified 
36.28 	under section 424A.094, subdivision 2, in the corporate budget;
36.29 	(6) the defined benefit relief association did not receive municipal ratification for the 
36.30 	most recent plan amendment when municipal ratification was required under section 424A.02, 
36.31 	subdivision 10; 424A.092, subdivision 6; or 424A.093, subdivision 6;
36.32 	(7) the relief association invested special fund assets in an investment security that is 
36.33 	not authorized under section 424A.095;
37.1 	(8) the relief association had an administrative expense that is not authorized under 
37.2 	section 424A.05, subdivision 3 or 3b, or the municipality had an expenditure that is not 
37.3 	authorized under section 424A.08;
37.4 	(9) the relief association officers fail to provide a complete and accurate public pension 
37.5 	plan investment portfolio and performance disclosure under section 356.219;
37.6 	(10) the relief association fails to obtain the acknowledgment from a broker of the 
37.7 	statement of investment restrictions under section 356A.06, subdivision 8b;
37.8 	(11) the relief association officers permitted to occur a prohibited transaction under 
37.9 	section 356A.06, subdivision 9, or 424A.04, subdivision 2a, or failed to undertake correction 
37.10 	of a prohibited transaction that did occur; or
37.11 	(12) the relief association pays a defined benefit service pension in an amount that is in 
37.12 	excess of the applicable maximum service pension maximum amount under section 424A.02, 
37.13 	subdivision 2b or 2c 3.

37.14 	EFFECTIVE DATE. This section is effective January 1, 2023.

37.15 	Sec. 17. Minnesota Statutes 2020, section 424A.092, subdivision 6, is amended to read:
37.16 		Subd. 6.Municipal ratification for planbylaws amendments. (a) The board of trustees 
37.17 	of a relief association may adopt an amendment to the articles of incorporation or bylaws 
37.18 	that increases the coverage, service pensions, or retirement benefits provided by the relief 
37.19 	association only after preparing an estimate of the expected increase in the financial 
37.20 	requirements and the accrued liability resulting from the amendment.
37.21 	(b) For purposes of this subdivision, "financial requirements" means the amount calculated 
37.22 	under subdivision 3, paragraph (c). "Accrued liability" means the amount calculated under 
37.23 	subdivision 2 or 2a, as applicable. "Estimate" means the estimate required in paragraph (a).
37.24 	(c) If the special fund of thea relief association to which this section applies does not 
37.25 	have a surplus over full funding under subdivision 3, paragraph (c), clause (5), and if the 
37.26 	municipality is required to provide financial support to the special fund of the relief 
37.27 	association under this section, the adoption of or anyboard of trustees of the relief association 
37.28 	may adopt an amendment to the articles of incorporation or bylaws of a relief association 
37.29 	whichthat increases or otherwise affects the retirement coverage provided by or the, service 
37.30 	pensions, or retirement benefits payable from the special fund of anyprovided by the relief 
37.31 	association to which this section applies. The amendment is not effective until it is ratified 
37.32 	by the governing body of the affiliated municipality served by the fire department to which 
37.33 	the relief association is directly associated or by the independent nonprofit firefighting 
38.1 	corporation, as applicable, and. The governing body may ratify such amendment only if 
38.2 	the officers of a relief association shall not seek municipal ratification prior to preparing 
38.3 	and certifying an estimate of the expected increase in the accrued liability and annual 
38.4 	accruing liability of the relief association attributable to the amendment has delivered to 
38.5 	the governing body the estimate described in paragraphs (a) and (b), certified by an officer 
38.6 	of the relief association.
38.7 	(d) If the special fund of thea relief association to which this section applies has a surplus 
38.8 	over full funding under subdivision 3, paragraph (c), clause (5), and if the municipality is 
38.9 	not required to provide financial support to the special fund of the relief association under 
38.10 	this section, the relief association may adopt or amend itsan amendment to the articles of 
38.11 	incorporation or bylaws which increase or otherwise affectthat increases the retirement
38.12 	coverage provided by or the, service pensions, or retirement benefits payable from the 
38.13 	special fund ofprovided by the relief association which are .
38.14 	(1) The amendment is effective if the municipality ratifies the amendment.
38.15 	(2) The amendment is effective without municipal ratification so long as this doesif the 
38.16 	amendment satisfies paragraph (e).
38.17 	(e) An amendment satisfies this paragraph if the estimate described in paragraphs (a) 
38.18 	and (b) demonstrates that the amendment will not cause:
38.19 	(1) the amount of the resulting increase in the accrued liability of the special fund of the 
38.20 	relief association to exceed 90 percent of the amount of the surplus over full funding reported 
38.21 	in the prior year; and this does not result in
38.22 	(2) the financial requirements of the special fund of the relief association exceedingto 
38.23 	exceed the expected amount of the future fire state aid and police and firefighter retirement 
38.24 	supplemental state aid to be received by the relief association as determined by the board 
38.25 	of trustees following the preparation of an estimate of the expected increase in the accrued 
38.26 	liability and annual accruing liability of the relief association attributable to the change.
38.27 	(f) If a relief association adopts or amends itsthe articles of incorporation or bylaws 
38.28 	without municipal ratification under this subdivision, and, subsequent to the amendment or 
38.29 	adoption, the financial requirements of the special fund of the relief association under this 
38.30 	section are such so as to require financial support from the municipality, the provision which 
38.31 	was implemented without municipal ratification is no longer effective without municipal 
38.32 	ratification and any service pensions or retirement benefits payable after that date may be 
38.33 	paid only in accordance with the articles of incorporation or bylaws as amended or adopted
38.34 	with municipal ratification.

39.1 	EFFECTIVE DATE. This section is effective January 1, 2023.

39.2 	Sec. 18. Minnesota Statutes 2021 Supplement, section 424A.093, subdivision 1, is amended 
39.3 	to read:
39.4 		Subdivision 1.Application. (a) This section applies to any firefighters relief association 
39.5 	specified in section 424A.091, subdivision 1, which pays or allows for an option of a monthly 
39.6 	service pension to a retiring firefighter when at least the minimum requirements for 
39.7 	entitlement to a service pension specified in section 424A.02, any applicable special 
39.8 	legislation, and the articles of incorporation or bylaws of the relief association have been 
39.9 	met. Each firefighters relief association to which this section applies shall determine the 
39.10 	actuarial condition and funding costs of the special fund of the relief association in accordance 
39.11 	with subdivisions 2 and 3, the financial requirements of the special fund of the relief 
39.12 	association in accordance with subdivision 4, and the minimum obligation of the municipality 
39.13 	with respect to the special fund of the relief association in accordance with subdivision 5.
39.14 	(b) If a firefighters relief association that previously provided a monthly benefit service 
39.15 	pension discontinues that practice and either replaces the monthly benefit amount with a 
39.16 	lump sum lump-sum benefit amount consistent with section 424A.02, subdivision 2c 3, 
39.17 	paragraph (a), clause (2), or purchases an annuity in the same amount as the monthly benefit 
39.18 	from an insurance company licensed to do business in this state, the actuarial condition and 
39.19 	funding costs, financial, and minimum municipal obligation requirements of section 
39.20 	424A.092 apply rather than this section.

39.21 	EFFECTIVE DATE. This section is effective January 1, 2023.

39.22 	Sec. 19. Minnesota Statutes 2020, section 424A.093, subdivision 6, is amended to read:
39.23 		Subd. 6.Municipal ratification for planbylaws amendments. (a) The board of trustees 
39.24 	of a relief association may adopt an amendment to the articles of incorporation or bylaws 
39.25 	that increases the coverage, service pensions, or retirement benefits provided by the relief 
39.26 	association only after the board of trustees has had an updated actuarial valuation including 
39.27 	the proposed change or an estimate of the expected actuarial impact of the proposed change 
39.28 	prepared by the actuary of the relief association.
39.29 	(b) If the special fund of thea relief association to which this section applies does not 
39.30 	have a surplus over full funding under subdivision 4, and if the municipality is required to 
39.31 	provide financial support to the special fund of the relief association under this section, the 
39.32 	adoption of or anyboard of trustees of the relief association may adopt an amendment to 
39.33 	the articles of incorporation or bylaws of a relief association whichthat increases or otherwise 
40.1 	affects the retirement coverage provided by or the, service pensions, or retirement benefits 
40.2 	payable from the special fund of anyprovided by the relief association to which this section 
40.3 	applies. The amendment is not effective until it is ratified by the governing body of the 
40.4 	affiliated municipality served by the fire department to which the relief association is directly 
40.5 	associated or by the independent nonprofit firefighting corporation, as applicable. The 
40.6 	governing body may ratify such amendment only if the relief association has delivered to 
40.7 	the governing body the actuarial valuation or estimate described in paragraph (a), certified 
40.8 	by an officer of the relief association.
40.9 	(c) If the special fund of thea relief association to which this section applies has a surplus 
40.10 	over full funding under subdivision 4, and if the municipality is not required to provide 
40.11 	financial support to the special fund of the relief association under this section, the relief 
40.12 	association may adopt or amend itsan amendment to the articles of incorporation or bylaws 
40.13 	which increase or otherwise affectthat increases the retirement coverage provided by or 
40.14 	the, service pensions, or retirement benefits payable from the special fund ofprovided by 
40.15 	the relief association which are. The amendment is effective:
40.16 	(1) if the municipality ratifies the amendment; or
40.17 	effective (2) without municipal ratification so long as this does if the amendment satisfies 
40.18 	paragraph (d).
40.19 	(d) An amendment satisfies this paragraph if the actuarial valuation or estimate described 
40.20 	in paragraph (a) demonstrates that the amendment will not cause:
40.21 	(1) the amount of the resulting increase in the accrued liability of the special fund of the 
40.22 	relief association to exceed 90 percent of the amount of the surplus over full funding reported 
40.23 	in the prior year; and this does not result in
40.24 	(2) the financial requirements of the special fund of the relief association exceedingto 
40.25 	exceed the expected amount of the future fire state aid and police and firefighter retirement 
40.26 	supplemental state aid to be received by the relief association as determined by the board 
40.27 	of trustees following the preparation of an updated actuarial valuation including the proposed 
40.28 	change or an estimate of the expected actuarial impact of the proposed change prepared by 
40.29 	the actuary of the relief association.
40.30 	(e) If a relief association adopts or amends its articles of incorporation or bylaws without 
40.31 	municipal ratification pursuant to this subdivision, and, subsequent to the amendment or 
40.32 	adoption, the financial requirements of the special fund of the relief association under this 
40.33 	section are such so as to require financial support from the municipality, the provision which 
40.34 	was implemented without municipal ratification is no longer effective without municipal 
41.1 	ratification and any service pensions or retirement benefits payable after that date may be 
41.2 	paid only in accordance with the articles of incorporation or bylaws as amended or adopted
41.3 	with municipal ratification.

41.4 	EFFECTIVE DATE. This section is effective January 1, 2023.

41.5 	Sec. 20. Minnesota Statutes 2020, section 424A.095, is amended to read:
41.6 	424A.095 INVESTMENTS.
41.7 		Subdivision 1.Authorized investments. (a) The special fund assets of a relief association 
41.8 	governed by sections 424A.091 to 424A.096 must be invested in securities that are authorized 
41.9 	investments under section 356A.06, subdivision 6 or 7, whichever applies.
41.10 	(b) The governing board of the association may select and appoint a qualified private 
41.11 	firm to measure management performance and return on investment, and the firm must use 
41.12 	the formula or formulas developed by the state board under section 11A.04, clause (11).
41.13 		Subd. 2.Investment report. (a) Annually, the state auditor must provide an investment 
41.14 	report to each relief association that has complied with the reporting requirements under 
41.15 	section 356.219, subdivisions 1 and 3. The investment report must contain the following 
41.16 	information:
41.17 	(1) the relief association's average annual rates of return for at least the previous one-, 
41.18 	three-, five-, ten-, 15-, and 20-year periods for which the state auditor has investment 
41.19 	information;
41.20 	(2) the relief association's asset allocation;
41.21 	(3) the average annual 1-year and 10-year benchmark rates of return;
41.22 	(4) the average annual 1-year and 10-year rates of return for the statewide volunteer 
41.23 	firefighter plan;
41.24 	(5) the 1-year and 10-year average annual rates of return for the State Board of Investment 
41.25 	supplemental investment fund; and
41.26 	(6) a graphical comparison between:
41.27 	(i) the relief association's average annual rates of return for the previous year and for 
41.28 	the previous multiyear periods provided under clause (1); and
41.29 	(ii) the average annual rates of return for the same periods for the supplemental investment 
41.30 	fund's balanced fund or any successor fund.
42.1 	(b) The state auditor shall select the benchmark rates of return based on the best practice 
42.2 	in the industry.
42.3 	(c) The relief association's board of trustees must certify to the state auditor that the 
42.4 	board reviewed the investment report. The certification must accompany the audited financial 
42.5 	statements or detailed financial statement under section 424A.014, subdivision 1 or 2, 
42.6 	whichever applies. A copy of the report must be kept on file by the relief association and 
42.7 	must be available for inspection by any member of the public.

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

42.9 	Sec. 21. Minnesota Statutes 2021 Supplement, section 424A.10, subdivision 2, is amended 
42.10 	to read:
42.11 		Subd. 2.Payment of supplemental benefit. (a) Upon the payment by a volunteer 
42.12 	firefighters relief association or by the statewide lump-sum volunteer firefighter plan of a 
42.13 	lump-sum distribution to a qualified recipient, the association or retirement plan, as 
42.14 	applicable, must pay a supplemental benefit to the qualified recipient. Notwithstanding any 
42.15 	law to the contrary, the relief association must pay the supplemental benefit out of its special 
42.16 	fund and the statewide lump-sum volunteer firefighter plan must pay the supplemental 
42.17 	benefit out of the statewide lump-sum volunteer firefighter plan. This benefit is an amount 
42.18 	equal to ten percent of the regular lump-sum distribution that is paid on the basis of the 
42.19 	recipient's service as a volunteer firefighter. In no case may the amount of the supplemental 
42.20 	benefit exceed $1,000. A supplemental benefit under this paragraph may not be paid to a 
42.21 	survivor of a deceased active or deferred volunteer firefighter in that capacity.
42.22 	(b) Upon the payment by a relief association or the retirement plan of a lump-sum 
42.23 	survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased 
42.24 	deferred volunteer firefighter, the association or retirement plan, as applicable, must pay a 
42.25 	supplemental survivor benefit to the survivor of the deceased active or deferred volunteer 
42.26 	firefighter from the special fund of the relief association and the retirement plan must pay 
42.27 	a supplemental survivor benefit to the survivor of the deceased active or deferred volunteer 
42.28 	firefighter from the retirement fund if chapter 353G so provides. The amount of the 
42.29 	supplemental survivor benefit is 20 percent of the survivor benefit, but not to exceed $2,000.
42.30 	(c) For purposes of this section, the term "regular lump-sum distribution" means the 
42.31 	pretax lump-sum distribution excluding any interest that may have been credited during a 
42.32 	volunteer firefighter's period of deferral.
43.1 	(d) An individual may receive a supplemental benefit under paragraph (a) or under 
43.2 	paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer 
43.3 	firefighter benefit.
43.4 	(e) If a qualified recipient receives more than one lump-sum distribution, the qualified 
43.5 	recipient is eligible to receive a supplemental benefit or supplemental survivor benefit, 
43.6 	whichever is applicable, with each lump-sum distribution. Each supplemental benefit shall 
43.7 	be calculated pursuant to paragraph (a) or (b), as applicable, and shall be subject to a separate 
43.8 	limit.
43.9 	(f) Qualified recipients who elect to receive their lump-sum distribution in installments 
43.10 	under section 424A.016, subdivision 5, or 424A.02, subdivision 8, are eligible to receive 
43.11 	one supplemental benefit calculated on the total lump-sum distribution amount under 
43.12 	paragraph (a) or (b), as applicable.

43.13 	EFFECTIVE DATE. This section is effective retroactively for supplemental benefits 
43.14 	paid in 2018 and thereafter.

43.15 	Sec. 22. Minnesota Statutes 2021 Supplement, section 424B.10, subdivision 1b, is amended 
43.16 	to read:
43.17 		Subd. 1b.Benefits. (a) The successor relief association following the consolidation of 
43.18 	two or more defined benefit relief associations must be a defined benefit relief association.
43.19 	(b) Notwithstanding any provision of section 424A.02, subdivisions 2a to subdivision
43.20 	3, to the contrary, the initial service pension amount of the subsequent defined benefit relief 
43.21 	association as of the effective date of consolidation is either the service pension amount 
43.22 	specified in clause (1) or the service pension amounts specified in clause (2), as provided 
43.23 	for in the consolidated relief association's articles of incorporation or bylaws:
43.24 	(1) the highest dollar amount service pension amount of any prior volunteer firefighters 
43.25 	relief association in effect immediately before the consolidation initiation if the pension 
43.26 	amount was implemented consistent with section 424A.02; or
43.27 	(2) for service rendered by each individual volunteer firefighter before consolidation, 
43.28 	the service pension amount under the consolidating volunteer firefighters relief association 
43.29 	that the firefighter belonged to immediately before the consolidation if the pension amount 
43.30 	was implemented consistent with section 424A.02 and for service rendered after the effective 
43.31 	date of the consolidation, the highest dollar amount service pension of any of the 
43.32 	consolidating volunteer firefighters relief associations in effect immediately before the 
43.33 	consolidation if the pension amount was implemented consistent with section 424A.02.
44.1 	(c) Any increase in the service pension amount beyond the amount implemented under 
44.2 	paragraph (a) must conform with the requirements and limitations of section 424A.02 and 
44.3 	sections 424A.091 to 424A.095.

44.4 	EFFECTIVE DATE. This section is effective January 1, 2023.

44.5 	Sec. 23. Minnesota Statutes 2021 Supplement, section 424B.13, subdivision 4, is amended 
44.6 	to read:
44.7 		Subd. 4.Benefit increase. (a) If the relief association has a surplus as of the end of the 
44.8 	relief association's most recent fiscal year before the conversion effective date, the board 
44.9 	of trustees may approve a resolution that increases the lump-sum benefit or monthly pension 
44.10 	amount or both the lump-sum and monthly pension amount, if the relief association offers 
44.11 	both, and amends the relief association bylaws without the consent of the affiliated 
44.12 	municipality or firefighting corporation, notwithstanding section 424A.02, subdivision 10. 
44.13 	The resulting lump-sum benefit or monthly pension amount is not limited to the maximum 
44.14 	lump-sum benefit service pension amount or maximum monthly service pension amounts
44.15 	amount under section 424A.02, subdivisions 2a to subdivision 3.
44.16 	(b) The benefit increase must not cause the liabilities of the retirement plan to exceed 
44.17 	the value of the assets, after taking into account full vesting as required under subdivision 
44.18 	2 and any administrative expenses arising from the conversion.
44.19 	(c) The board of trustees shall specify whether the benefit increase will apply only to 
44.20 	participants who are members active as of the conversion effective date or whether the 
44.21 	benefit increase will apply to all participants, including members who are not active as of 
44.22 	the conversion effective date, notwithstanding section 424A.015, subdivision 6.
44.23 	(d) The board of trustees' resolution approving an increase in the benefit level must be 
44.24 	considered conditional on there being sufficient assets to fund the increase and must state 
44.25 	that if, as of the date benefits are transferred to the defined contribution plan, there are not 
44.26 	sufficient assets to cover all benefit liabilities at the new higher benefit level, the benefit 
44.27 	level will be reduced until assets equal or are greater than liabilities. The resolution must 
44.28 	state that the new lower benefit level will be considered approved by the board of trustees 
44.29 	without further action by the board.

44.30 	EFFECTIVE DATE. This section is effective January 1, 2023.

45.1 	Sec. 24. Minnesota Statutes 2021 Supplement, section 424B.22, subdivision 4, is amended 
45.2 	to read:
45.3 		Subd. 4.Benefit increase. (a) Notwithstanding section 424A.02, subdivision 10, the 
45.4 	board of trustees of a relief association may increase the benefit amount under a defined 
45.5 	benefit relief association without the consent of the affiliated municipality or independent 
45.6 	nonprofit firefighting corporation, as provided in this subdivision.
45.7 	(b) If the retirement plan being terminated is a defined benefit plan, the board of trustees 
45.8 	may approve an amendment to the bylaws of the relief association to increase the lump-sum 
45.9 	or monthly pension amount or both the lump lump-sum and monthly pension amount, if 
45.10 	the relief association offers both, up to 125 percent of the largest maximum lump-sum 
45.11 	service pension amount under section 424A.02, subdivision 3, paragraph (a), clause (2), or 
45.12 	the maximum monthly service pension amount payable per month in effect under section 
45.13 	424A.02, subdivision 2b or 2c, respectively, without regard to the relief association's 
45.14 	minimum average amount of available financing per firefighter subdivision 3, paragraph 
45.15 	(a), clause (1). The amount by which the lump-sum or monthly pension amount is increased 
45.16 	must not cause the liabilities of the retirement plan to exceed the value of the assets, after 
45.17 	taking into account full vesting as required under subdivision 3 and any administrative 
45.18 	expenses.
45.19 	(c) The board of trustees shall specify whether the benefit increase will apply to only 
45.20 	participants who are members active as of the date of the termination of the retirement plan 
45.21 	or whether the benefit increase will apply to all participants, including members who are 
45.22 	not active as of the plan termination date.

45.23 	EFFECTIVE DATE. This section is effective January 1, 2023.

45.24 	Sec. 25. REVISOR INSTRUCTION.
 45.25 	In Minnesota Statutes, chapter 353G, the revisor of statutes shall change the term "good 
45.26 	time service" to the term "service."

45.27 	EFFECTIVE DATE. This section is effective January 1, 2023.

45.28 	Sec. 26. REPEALER.
 45.29 	(a) Minnesota Statutes 2021 Supplement, section 424A.02, subdivisions 2a, 2b, and 2c,
45.30 	are repealed.
45.31 	(b) Minnesota Statutes 2020, section 353G.09, subdivision 3, is repealed.

46.1 	EFFECTIVE DATE. This section is effective January 1, 2023.

46.2 	ARTICLE 5
46.3 	DISABILITY ASSESSMENTS BY ADVANCED PRACTICE REGISTERED NURSES

46.4 	Section 1. Minnesota Statutes 2020, section 352.01, is amended by adding a subdivision 
46.5 	to read:
46.6 		Subd. 27.APRN. "APRN" means an individual licensed as an advanced practice 
46.7 	registered nurse by the Board of Nursing as defined in section 148.171, subdivision 3, who 
46.8 	provides services to a member or applicant that are within the scope of the APRN's 
46.9 	professional licensure.

46.10 	Sec. 2. Minnesota Statutes 2020, section 352.113, subdivision 4, is amended to read:
46.11 		Subd. 4.Medical or psychological examinations; authorization for payment of 
46.12 	benefit. (a) Any physician, psychologist, chiropractor, physician assistant, podiatrist, or 
46.13 	nurse practitionerAPRN providing any service specified in this section must be licensed.
46.14 	(b) An applicant shall provide a detailed report signed by a physician, and at least one 
46.15 	additional report signed by a physician, psychologist, chiropractor, physician assistant, 
46.16 	podiatrist, or nurse practitionerAPRN with evidence to support an application for total and 
46.17 	permanent disability. The reports must include an expert opinion regarding whether the 
46.18 	employee is permanently and totally disabled within the meaning of section 352.01, 
46.19 	subdivision 17, and that the disability arose before the employee was placed on any paid or 
46.20 	unpaid leave of absence or terminated public service.
46.21 	(c) If there is medical evidence that supports the expectation that at some point the person 
46.22 	applying for the disability benefit will no longer be disabled, the decision granting the 
46.23 	disability benefit may provide for a termination date upon which the total and permanent 
46.24 	disability can be expected to no longer exist. When a termination date is part of the decision 
46.25 	granting benefits, prior to the benefit termination the executive director shall review any 
46.26 	evidence provided by the disabled employee to show that the disabling condition for which 
46.27 	benefits were initially granted continues. If the benefits cease, the disabled employee may 
46.28 	follow the appeal procedures described in section 356.96 or may reapply for disability 
46.29 	benefits using the process described in this subdivision.
46.30 	(d) Any claim to disability must be supported by a report from the employer indicating 
46.31 	that there is no available work that the employee can perform with the disabling condition 
46.32 	and that all reasonable accommodations have been considered. Upon request of the executive 
47.1 	director, an employer shall provide evidence of the steps the employer has taken to attempt 
47.2 	to provide reasonable accommodations and continued employment to the claimant.
47.3 	(e) The director shall also obtain written certification from the employer stating whether 
47.4 	the employment has ceased or whether the employee is on sick leave of absence because 
47.5 	of a disability that will prevent further service to the employer and that the employee is not 
47.6 	entitled to compensation from the employer.
47.7 	(f) The medical adviser shall consider the reports of the physician, psychologist, 
47.8 	chiropractor, physician assistant, podiatrist, or nurse practitionerAPRN and any other 
47.9 	evidence supplied by the employee or other interested parties. If the medical adviser finds 
47.10 	the employee totally and permanently disabled, the adviser shall make appropriate 
47.11 	recommendation to the director in writing together with the date from which the employee 
47.12 	has been totally disabled. The director shall then determine if the disability occurred while 
47.13 	still in the employment of the state and constitutes a total and permanent disability as defined 
47.14 	in section 352.01, subdivision 17.
47.15 	(g) A terminated employee may apply for a disability benefit within 18 months of 
47.16 	termination as long as the disability occurred while in the employment of the state. The fact 
47.17 	that an employee is placed on leave of absence without compensation because of disability 
47.18 	does not bar that employee from receiving a disability benefit.
47.19 	(h) Upon appeal, the board of directors may extend the disability benefit application 
47.20 	deadline in paragraph (g) by an additional 18 months if the terminated employee is 
47.21 	determined by the board of directors to have a cognitive impairment that made it unlikely 
47.22 	that the terminated employee understood that there was an application deadline or that the 
47.23 	terminated employee was able to meet the application deadline.
47.24 	(i) Unless the payment of a disability benefit has terminated because the employee is 
47.25 	no longer totally disabled, or because the employee has reached normal retirement age as 
47.26 	provided in this section, the disability benefit must cease with the last payment received by 
47.27 	the disabled employee or which had accrued during the lifetime of the employee unless 
47.28 	there is a spouse surviving. In that event, the surviving spouse is entitled to the disability 
47.29 	benefit for the calendar month in which the disabled employee died.

47.30 	Sec. 3. Minnesota Statutes 2020, section 352.95, subdivision 4, is amended to read:
47.31 		Subd. 4.Medical or psychological evidence. (a) An applicant shall provide medical, 
47.32 	chiropractic, or psychological evidence to support an application for disability benefits. The 
47.33 	director shall have the employee examined by at least one additional licensed physician, 
48.1 	APRN, chiropractor, or psychologist who is designated by the medical adviser. The 
48.2 	physicians, APRNs, chiropractors, or psychologists with respect to a mental impairment, 
48.3 	shall make written reports to the director concerning the question of the employee's disability, 
48.4 	including their expert opinions as to whether the employee has an occupational disability 
48.5 	within the meaning of section 352.01, subdivision 17a, and whether the employee has a 
48.6 	duty disability, physical or psychological, under section 352.01, subdivision 17b, or has a 
48.7 	regular disability, physical or psychological, under section 352.01, subdivision 17c. The 
48.8 	director shall also obtain written certification from the employer stating whether or not the 
48.9 	employee is on sick leave of absence because of a disability that will prevent further service 
48.10 	to the employer performing normal duties as defined in section 352.01, subdivision 17d, or 
48.11 	performing less frequent duties as defined in section 352.01, subdivision 17e, and as a 
48.12 	consequence, the employee is not entitled to compensation from the employer.
48.13 	(b) If, on considering the reports by the physicians, APRNs, chiropractors, or 
48.14 	psychologists and any other evidence supplied by the employee or others, the medical 
48.15 	adviser finds that the employee has an occupational disability within the meaning of section 
48.16 	352.01, subdivision 17a, the advisor adviser shall make the appropriate recommendation 
48.17 	to the director, in writing, together with the date from which the employee has been disabled. 
48.18 	The director shall then determine the propriety of authorizing payment of a duty disability 
48.19 	benefit or a regular disability benefit as provided in this section.
48.20 	(c) Unless the payment of a disability benefit has terminated because the employee no 
48.21 	longer has an occupational disability, or because the employee has reached either age 55 
48.22 	or the five-year anniversary of the effective date of the disability benefit, whichever is later, 
48.23 	the disability benefit must cease with the last payment which was received by the disabled 
48.24 	employee or which had accrued during the employee's lifetime. While disability benefits 
48.25 	are paid, the director has the right, at reasonable times, to require the disabled employee to 
48.26 	submit proof of the continuance of an occupational disability. If any examination indicates 
48.27 	to the medical adviser that the employee no longer has an occupational disability, the 
48.28 	disability payment must be discontinued upon the person's reinstatement to state service or 
48.29 	within 60 days of the finding, whichever is sooner.

48.30 	Sec. 4. Minnesota Statutes 2020, section 352B.011, is amended by adding a subdivision 
48.31 	to read:
48.32 		Subd. 3a.APRN. "APRN" means an individual licensed as an advanced practice 
48.33 	registered nurse by the Board of Nursing as defined in section 148.171, subdivision 3, who 
49.1 	provides services to a member or applicant that are within the scope of the APRN's 
49.2 	professional licensure.

49.3 	Sec. 5. Minnesota Statutes 2020, section 352B.10, subdivision 4, is amended to read:
49.4 		Subd. 4.Proof of disability. (a) No disability benefits may be paid unless the member 
49.5 	provides adequate proof is furnished to the executive director of the existence of the 
49.6 	disability.
49.7 	(b) Adequate proof of a disability must include a written expert report by a licensed 
49.8 	physician, by a APRN, or licensed chiropractor, or with respect to a mental impairment, by 
49.9 	a licensed psychologist.
49.10 	(c) Following the commencement of benefit payments, the executive director has the 
49.11 	right, at reasonable times, to require the disabilitantdisability benefit recipient to submit 
49.12 	proof of the continuance of the disability claimed.

49.13 	Sec. 6. Minnesota Statutes 2020, section 353.01, is amended by adding a subdivision to 
49.14 	read:
49.15 		Subd. 50.APRN. "APRN" means an individual licensed as an advanced practice 
49.16 	registered nurse by the Board of Nursing as defined in section 148.171, subdivision 3, who 
49.17 	provides services to a member or applicant that are within the scope of the APRN's 
49.18 	professional licensure.

49.19 	Sec. 7. Minnesota Statutes 2020, section 353.031, subdivision 3, is amended to read:
49.20 		Subd. 3.Procedure to determine eligibility; generally. (a) Every claim for a disability 
49.21 	benefit must be initiated in writing on an application form and in the manner prescribed by 
49.22 	the executive director and filed with the executive director. An application for disability 
49.23 	benefits must be made within 18 months following termination of public service as defined 
49.24 	under section 353.01, subdivision 11a.
49.25 	(b) All medical reports must support a finding that the disability arose before the employee 
49.26 	was placed on any paid or unpaid leave of absence or terminated public service, as defined 
49.27 	under section 353.01, subdivision 11a.
49.28 	(c) An applicant for disability shall provide a detailed report signed by a licensed medical 
49.29 	doctor and at least one additional report signed by a medical doctor, psychologist, APRN, 
49.30 	or chiropractor. The applicant shall authorize the release of all medical and health care 
50.1 	evidence, including all medical records and relevant information from any source, to support 
50.2 	the application for initial, or the continuing payment of, disability benefits.
50.3 	(d) All reports must contain an opinion regarding the claimant's prognosis, the duration 
50.4 	of the disability, and the expectations for improvement. Any report that does not contain 
50.5 	and support a finding that the disability will last for at least one year may not be relied upon 
50.6 	to support eligibility for benefits.
50.7 	(e) Where the medical evidence supports the expectation that at some point in time the 
50.8 	claimant will no longer be disabled, any decision granting disability may provide for a 
50.9 	termination date upon which disability can be expected to no longer exist. In the event a 
50.10 	termination date is made part of the decision granting benefits, prior to the actual termination 
50.11 	of benefits, the claimant shall have the opportunity to show that the disabling condition for 
50.12 	which benefits were initially granted continues. In the event the benefits terminate in 
50.13 	accordance with the original decision, the claimant may petition for a review by the board 
50.14 	of trustees under section 353.03, subdivision 3, or may reapply for disability in accordance 
50.15 	with these procedures and section 353.33, 353.656, or 353E.06, as applicable.
50.16 	(f) Any claim to disability must be supported by a report from the employer indicating 
50.17 	that there is no available work that the employee can perform in the employee's disabled 
50.18 	condition and that all reasonable accommodations have been considered. Upon request of 
50.19 	the executive director, an employer shall provide evidence of the steps the employer has 
50.20 	taken to attempt to provide reasonable accommodations and continued employment to the 
50.21 	claimant. The employer shall also provide a certification of the member's past public service; 
50.22 	the dates of any paid sick leave, vacation, or any other employer-paid salary continuation 
50.23 	plan beyond the last working day; and whether or not any sick or annual leave has been 
50.24 	allowed.
50.25 	(g) An employee who is placed on leave of absence without compensation because of 
50.26 	a disability is not barred from receiving a disability benefit.
50.27 	(h) An applicant for disability benefits may file a retirement annuity application under 
50.28 	section 353.29, subdivision 4, simultaneously with an application for disability benefits. If 
50.29 	the application for disability benefits is approved, the retirement annuity application is 
50.30 	canceled. If disability benefits are denied, the retirement annuity application must be 
50.31 	processed upon the request of the applicant. No member of the public employees general 
50.32 	plan, the public employees police and fire plan, or the local government correctional service 
50.33 	retirement plan may receive a disability benefit and a retirement annuity simultaneously 
50.34 	from the same plan.

51.1 	Sec. 8. Minnesota Statutes 2020, section 353.031, subdivision 8, is amended to read:
51.2 		Subd. 8.Proof of continuing disability. (a) A disability benefit payment must not be 
51.3 	made except upon adequate proof furnished to the executive director of the association that 
51.4 	the person remains disabled.
51.5 	(b) During the time when disability benefits are being paid, the executive director of the 
51.6 	association has the right, at reasonable times, to require the disabled member to submit 
51.7 	proof of the continuance of the disability claimed.
51.8 	(c) Adequate proof of a disability must include a written expert report by a licensed 
51.9 	physician, aAPRN, or licensed chiropractor, or, with respect to a mental impairment, a 
51.10 	licensed psychologist.

51.11 	Sec. 9. Minnesota Statutes 2020, section 354.05, is amended by adding a subdivision to 
51.12 	read:
51.13 		Subd. 43.APRN. "APRN" means an individual licensed as an advanced practice 
51.14 	registered nurse by the Board of Nursing as defined in section 148.171, subdivision 3, who 
51.15 	provides services to a member or applicant that are within the scope of the APRN's 
51.16 	professional licensure.

51.17 	Sec. 10. Minnesota Statutes 2020, section 354.48, subdivision 4, is amended to read:
51.18 		Subd. 4.Determination by executive director. (a) The executive director shall have 
51.19 	the member examined by at least two licensed physicians, licensed chiropractors, or licensed 
51.20 	psychologists.
51.21 	(b) These physicians, chiropractors, APRNs, or psychologists with respect to a mental 
51.22 	impairment, shall make written reports to the executive director concerning the member's 
51.23 	disability, including expert opinions as to whether or not the member is permanently and 
51.24 	totally disabled within the meaning of section 354.05, subdivision 14.
51.25 	(c) The executive director shall also obtain written certification from the last employer 
51.26 	stating whether or not the member was separated from service because of a disability which 
51.27 	would reasonably prevent further service to the employer and as a consequence the member 
51.28 	is not entitled to compensation from the employer.
51.29 	(d) If, upon the consideration of the reports of the physicians, chiropractors, APRNs, or 
51.30 	psychologists and any other evidence presented by the member or by others interested 
51.31 	therein, the executive director finds that the member is totally and permanently disabled, 
51.32 	the executive director shall grant the member a disability benefit.
52.1 	(e) An employee who is placed on leave of absence without compensation because of 
52.2 	disability is not barred from receiving a disability benefit.

52.3 	Sec. 11. Minnesota Statutes 2020, section 354.48, subdivision 6, is amended to read:
52.4 		Subd. 6.Regular physical examinations. At least once each year during the first five 
52.5 	years following the allowance of a disability benefit to any member, and at least once in 
52.6 	every three-year period thereafter, the executive director may require the disability benefit 
52.7 	recipient to undergo an expert examination by a physician or physicians, by a chiropractor 
52.8 	or chiropractors, by an APRN or APRNs, or by one or more psychologists with respect to 
52.9 	a mental impairment, engaged by the executive director. If an examination indicates that 
52.10 	the member is no longer permanently and totally disabled or that the member is engaged 
52.11 	or is able to engage in a substantial gainful occupation, payments of the disability benefit 
52.12 	by the association must be discontinued. The payments must be discontinued as soon as the 
52.13 	member is reinstated to the payroll following sick leave, but payment may not be made for 
52.14 	more than 60 days after the physicians, the chiropractors, APRNs, or the psychologists 
52.15 	engaged by the executive director find that the person is no longer permanently and totally 
52.16 	disabled.

52.17 	Sec. 12. Minnesota Statutes 2020, section 354.48, subdivision 6a, is amended to read:
52.18 		Subd. 6a.Medical adviser; duties.  The executive director may contract with an 
52.19 	accredited independent organization specializing in disability determinations, licensed 
52.20 	physicians, or physicians on the staff of the commissioner of health as designated by the 
52.21 	commissioner, to be the medical adviser to the executive director. The medical adviser shall 
52.22 	designate licensed physicians, licensed chiropractors, or licensed psychologists with respect 
52.23 	to a mental impairment, who shall examine applicants for disability benefits. The medical 
52.24 	adviser shall pass upon all expert reports based on any examinations performed in order to 
52.25 	determine whether a teacher is totally and permanently disabled as defined in section 354.05, 
52.26 	subdivision 14. The medical adviser shall also investigate all health and medical statements 
52.27 	and certificates by or on behalf of a teacher in connection with a disability benefit, and shall 
52.28 	report in writing to the director setting forth any conclusions and recommendations on all 
52.29 	matters referred to the medical adviser.

52.30 	Sec. 13. Minnesota Statutes 2020, section 354A.011, is amended by adding a subdivision 
52.31 	to read:
52.32 		Subd. 6a.APRN. "APRN" means an individual licensed as an advanced practice 
52.33 	registered nurse by the Board of Nursing as defined in section 148.171, subdivision 3, who 
53.1 	provides services to a member or applicant that are within the scope of the APRN's 
53.2 	professional licensure.

53.3 	Sec. 14. Minnesota Statutes 2020, section 354A.011, is amended by adding a subdivision 
53.4 	to read:
53.5 		Subd. 14b.Medical expert. For purposes of section 354A.36, "medical expert" means 
53.6 	a licensed physician, licensed chiropractor, APRN, or licensed psychologist, in each case 
53.7 	working within the scope of the individual's professional licensure.

53.8 	Sec. 15. Minnesota Statutes 2020, section 354A.36, subdivision 4, is amended to read:
53.9 		Subd. 4.Determination of disability. (a) The board of the teachers retirement fund 
53.10 	association shall make the final determination of the existence of a permanent and total 
53.11 	disability. The board shall have the coordinated member examined by at least two licensed 
53.12 	physicians, licensed chiropractors, or licensed psychologists who are selected by the board
53.13 	medical experts. After making anya required examinations examination, each physician, 
53.14 	chiropractor, or psychologist with respect to a mental impairment,medical expert shall 
53.15 	make a written report to the board concerning the coordinated member, which shall include 
53.16 	a statementan opinion of the medical expert opinion of the physician, chiropractor, or 
53.17 	psychologist as to whether or not the member is permanently and totally disabled within 
53.18 	the meaning of section 354A.011, subdivision 14. The board shall also obtain a written 
53.19 	statement from the employer as to whether or not the coordinated member was terminated 
53.20 	or separated from active employment due to a disability which is deemed by the employer 
53.21 	to reasonably prevent further service by the member to the employer and which caused the 
53.22 	coordinated member not to be entitled to further compensation from the employer for services 
53.23 	rendered by the member. If, after consideration of the reports of the physicians, chiropractors, 
53.24 	or psychologists with respect to a mental impairment medical experts and any medical 
53.25 	adviser retained by the board under subdivision 4a, the employer statement, and any evidence 
53.26 	presented by the member or by any other interested parties, the board determines that the 
53.27 	coordinated member is totally and permanently disabled within the meaning of section 
53.28 	354A.011, subdivision 14, itthe board shall grant the coordinated member a disability 
53.29 	benefit. A member who is placed on a leave of absence without compensation as a result 
53.30 	of the disability is not barred from receiving a disability benefit under this section.
53.31 	(b) The executive director shall reject an application for disability benefits under section 
53.32 	354A.36 if the member is applying only because an employer-sponsored provider of private 
53.33 	disability insurance benefits requires the application and the member would not have applied 
54.1 	for disability benefits in the absence of the requirement. The member shall submit a copy 
54.2 	of the disability insurance policy that requires an application for disability benefits from 
54.3 	the plan if the member wishes to assert that the application is only being submitted because 
54.4 	of the disability insurance policy requirement.

54.5 	Sec. 16. Minnesota Statutes 2020, section 354A.36, is amended by adding a subdivision 
54.6 	to read:
54.7 		Subd. 4a.Medical adviser; duties. The executive director may contract with an 
54.8 	independent medical expert or an accredited organization specializing in disability 
54.9 	determinations to serve as a medical adviser to the board. The medical adviser shall review 
54.10 	all expert reports based on any examinations performed in order to determine whether a 
54.11 	coordinated member is totally and permanently disabled as defined in section 354A.011, 
54.12 	subdivision 14. The medical adviser shall also investigate all health and medical statements 
54.13 	and certificates by or on behalf of a member in connection with a disability benefit and shall 
54.14 	report in writing to the board, setting forth any conclusions and recommendations on all 
54.15 	matters referred to the medical adviser. The board shall have sole discretion to select the 
54.16 	appropriate licensed medical professional or organization to serve as the medical adviser.

54.17 	Sec. 17. Minnesota Statutes 2020, section 354A.36, subdivision 6, is amended to read:
54.18 		Subd. 6.Requirement for regular physical examinations. At least once each year 
54.19 	during the first five years following the granting of a disability benefit to a coordinated 
54.20 	member by the board and at least once in every three-year period thereafter, the board may 
54.21 	require the disability benefit recipient to undergo an expert examination as a condition for 
54.22 	continued entitlement of the benefit recipient to receive a disability benefit. If the board 
54.23 	requires an examination, the expert examination must be made at the place of residence of 
54.24 	the disability benefit recipient or at any other place mutually agreeable to the disability 
54.25 	benefit recipient and the board. The expert examination must be made by a physician or 
54.26 	physicians, by a chiropractor or chiropractors, or by one or more psychologistsmedical 
54.27 	expert engaged by the board, in its sole discretion. The physician or physicians, the 
54.28 	chiropractor or chiropractors, or the psychologist or psychologists with respect to a mental 
54.29 	impairment,medical expert conducting the expert examination shall make a written report 
54.30 	to the board concerning the disability benefit recipient and the recipient's disability, including 
54.31 	a statement of the expertmedical expert's opinion of the physician, chiropractor, or 
54.32 	psychologist as to whether or not the member remains permanently and totally disabled 
54.33 	within the meaning of section 354A.011, subdivision 14. If the board determines from 
54.34 	consideration of the written expert examinationmedical expert's report of the physician, of 
55.1 	the chiropractor, or of the psychologist, with respect to a mental impairment, that the 
55.2 	disability benefit recipient is no longer permanently and totally disabled or if the board 
55.3 	determines that the benefit recipient is engaged or is able to engage in a gainful occupation, 
55.4 	unless the disability benefit recipient is partially employed under subdivision 7, then further 
55.5 	disability benefit payments from the fund must be discontinued within 60 days of the 
55.6 	determination by the board. The discontinuation of disability benefits must occur immediately 
55.7 	if the disability recipient is reinstated to the district payroll following sick leave and within 
55.8 	60 days of the determination by the board following the expert examination and report of 
55.9 	the physician or physicians, chiropractor or chiropractors, or psychologist or psychologists 
55.10 	engaged by the board that the disability benefit recipient is no longer permanently and totally 
55.11 	disabled within the meaning of section 354A.011, subdivision 14.

55.12 	Sec. 18. EFFECTIVE DATE.
 55.13 	Sections 1 to 17 are effective the day following final enactment.

55.14 	ARTICLE 6
55.15 	STATE BOARD OF INVESTMENT

55.16 	Section 1. Minnesota Statutes 2020, section 11A.04, is amended to read:
55.17 	11A.04 DUTIES AND POWERS; APPROPRIATION.
55.18 	The state board shall:
55.19 	(1) Act as trustees for each fund for which it invests or manages money in accordance 
55.20 	with the standard of care set forth in section 11A.09 if state assets are involved and in 
55.21 	accordance with chapter 356A if pension assets are involved.
55.22 	(2) Formulate policies and procedures deemed necessary and appropriate to carry out 
55.23 	its functions. Procedures adopted by the board must allow fund beneficiaries and members 
55.24 	of the public to become informed of proposed board actions. Procedures and policies of the 
55.25 	board are not subject to the Administrative Procedure Act.
55.26 	(3) Employ an executive director as provided in section 11A.07.
55.27 	(4) Employ investment advisors and consultants as it deems necessary.
55.28 	(5) Prescribe policies concerning personal investments of all employees of the board to 
55.29 	prevent conflicts of interest.
55.30 	(6) Maintain a record of its proceedings.
56.1 	(7) As it deems necessary, establish advisory committees subject to section 15.059 to 
56.2 	assist the board in carrying out its duties.
56.3 	(8) Not permit state funds to be used for the underwriting or direct purchase of municipal 
56.4 	securities from the issuer or the issuer's agent.
56.5 	(9) Direct the commissioner of management and budget to sell property other than money 
56.6 	that has escheated to the state when the board determines that sale of the property is in the 
56.7 	best interest of the state. Escheated property must be sold to the highest bidder in the manner 
56.8 	and upon terms and conditions prescribed by the board.
56.9 	(10) Undertake any other activities necessary to implement the duties and powers set 
56.10 	forth in this section.
56.11 	(11) Establish a formula or formulas to measure management performance and return 
56.12 	on investment. Public pension funds in the state shall utilize the formula or formulas 
56.13 	developed by the state board.
56.14 	(12) Except as otherwise provided in article XI, section 8, of the Constitution of the state 
56.15 	of Minnesota, employ, at its discretion, qualified private firms to invest and manage the 
56.16 	assets of funds over which the state board has investment management responsibility. There 
56.17 	is annually appropriated to the state board, from the assets of the funds for which the state 
56.18 	board utilizes a private investment manager, sums sufficient to pay the costs of employing 
56.19 	private firms. Each year, by January 15, the board shall report to the governor and legislature 
56.20 	on the cost and the investment performance of each investment manager employed by the 
56.21 	board.
56.22 	(13) Adopt an investment policy statement that includes investment objectives, asset 
56.23 	allocation, and the investment management structure for the retirement fund assets under 
56.24 	its control. The statement may be revised at the discretion of the state board. The state board 
56.25 	shall seek the advice of the council regarding its investment policy statement. Adoption of 
56.26 	the statement is not subject to chapter 14.
56.27 	(14) Adopt a compensation plan setting the terms and conditions of employment for 
56.28 	unclassified employees of the state board employees who are not covered by a collective 
56.29 	bargaining agreement pursuant to section 43A.18, subdivision 3b.
56.30 	(15) Contract, as necessary, with the board of trustees of the Minnesota State Universities 
56.31 	and Colleges System for the provision of investment review and selection services under 
56.32 	section 354B.25, subdivision 3, and arrange for the receipt of payment for those services.
57.1 	There is annually appropriated to the state board, from the assets of the funds for which 
57.2 	the state board provides investment services, sums sufficient to pay the costs of all necessary 
57.3 	expenses for the administration of the board. These sums will be deposited in the State 
57.4 	Board of Investment operating account, which must be established by the commissioner of 
57.5 	management and budget.

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

57.7 	Sec. 2. Minnesota Statutes 2020, section 11A.07, subdivision 4, is amended to read:
57.8 		Subd. 4.Duties and powers. The director, at the direction of the state board, shall:
57.9 	(1) plan, direct, coordinate, and execute administrative and investment functions in 
57.10 	conformity with the policies and directives of the state board and the requirements of this 
57.11 	chapter and of chapter 356A;
57.12 	(2) prepare and submit biennial and annual budgets to the board and with the approval 
57.13 	of the board submit the budgets to the Department of Management and Budget;
57.14 	(3) employ professional and clerical staff as necessary. Employees whose primary 
57.15 	responsibility is to invest or manage money or employees who hold positions designated 
57.16 	as unclassified under section 43A.08, subdivision 1a, are in the unclassified service of the 
57.17 	state. Other employees are in the classified service. Unclassified employees who are not 
57.18 	covered by a collective bargaining agreement are employed under the terms and conditions 
57.19 	of the compensation plan approved under section 43A.18, subdivision 3b;
57.20 	(4) report to the state board on all operations under the director's control and supervision;
57.21 	(5) maintain accurate and complete records of securities transactions and official 
57.22 	activities;
57.23 	(6) establish a policy, which is subject to state board approval, relating to the purchase 
57.24 	and sale of securities on the basis of competitive offerings or bids. The policy is subject to 
57.25 	board approval;
57.26 	(7) cause securities acquired to be kept in the custody of the commissioner of management 
57.27 	and budget or other depositories consistent with chapter 356A, as the state board deems 
57.28 	appropriate;
57.29 	(8) prepare and file with the director of the Legislative Reference Library, by December 
57.30 	31 of each year, a report summarizing the activities of the state board, the council, and the 
57.31 	director during the preceding fiscal year. The report must be prepared so as to provide the 
57.32 	legislature and the people of the state with a clear, comprehensive summary of the portfolio 
58.1 	composition, the transactions, the total annual rate of return, and the yield to the state treasury 
58.2 	and to each of the funds whose assets are invested by the state board, and the recipients of 
58.3 	business placed or commissions allocated among the various commercial banks, investment 
58.4 	bankers, money managers, and brokerage organizations and the amount of these commissions 
58.5 	or other fees. The report must include an executive summary;
58.6 	(9) include on the state board's website its annual report and an executive summary of 
58.7 	its quarterly reports;
58.8 	(10) require state officials from any department or agency to produce and provide access 
58.9 	to any financial documents the state board deems necessary in the conduct of its investment 
58.10 	activities;
58.11 	(11) receive and expend legislative appropriations; and
58.12 	(12) undertake any other activities necessary to implement the duties and powers set 
58.13 	forth in this subdivision consistent with chapter 356A.

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

58.15 	Sec. 3. Minnesota Statutes 2020, section 11A.07, is amended by adding a subdivision to 
58.16 	read:
58.17 		Subd. 4a.Classification of state board employees. (a) Employees of the state board 
58.18 	who are in the unclassified service of the state are employed under the terms and conditions 
58.19 	of the compensation plan approved under section 43A.18, subdivision 3b. The following 
58.20 	state board employees are in the unclassified service of the state:
58.21 	(1) professional employees who, in the determination of the director, are primarily 
58.22 	responsible for managing or administering the investment portfolio, including but not limited 
58.23 	to investment diligence and analysis, investment risk mitigation, and implementing 
58.24 	investment strategy; and
58.25 	(2) employees who hold positions designated as unclassified under section 43A.08, 
58.26 	subdivision 1a.
58.27 	(b) Employees of the state board who are not in the unclassified service under paragraph 
58.28 	(a) are in the classified service of the state.

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

59.1 	Sec. 4. Minnesota Statutes 2020, section 11A.07, is amended by adding a subdivision to 
59.2 	read:
59.3 		Subd. 4b.Annual report. The report required under subdivision 4, clause (8), must 
59.4 	include an executive summary and must be prepared so as to provide the legislature and the 
59.5 	people of the state with:
59.6 	(1) a clear, comprehensive summary of the portfolio composition, the transactions, the 
59.7 	total annual rate of return, and the yield to the state treasury and to each of the funds with 
59.8 	assets invested by the state board; and
59.9 	(2) the recipients of business placed or commissions allocated among the various 
59.10 	commercial banks, investment bankers, money managers, and brokerage organizations and 
59.11 	the amount of these commissions or other fees.

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

59.13 	Sec. 5. Minnesota Statutes 2020, section 43A.18, subdivision 3b, is amended to read:
59.14 		Subd. 3b.State Board of Investment plan. Total compensation for unclassified positions 
59.15 	not covered by a collective bargaining agreement under section 11A.04, clause (14), in the 
59.16 	State Board of Investment must be determined by the State Board of Investment. Before 
59.17 	submitting a compensation plan to the legislature and the Legislative Coordinating 
59.18 	Commission, the State Board of Investment must submit the plan to the commissioner of 
59.19 	management and budget for review and comment. The commissioner must complete the 
59.20 	review within 14 days of its receipt. Compensation plans established under this subdivision 
59.21 	must be approved by the legislature and the Legislative Coordinating Commission under 
59.22 	section 3.855, before becoming effective.

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

59.24 	Sec. 6. Minnesota Statutes 2020, section 179A.10, subdivision 1, is amended to read:
59.25 		Subdivision 1.Exclusions. The commissioner of management and budget shall meet 
59.26 	and negotiate with the exclusive representative of each of the units specified in this section, 
59.27 	except as provided in section 43A.06, subdivision 1, paragraph (c). The units provided in 
59.28 	this section are the only appropriate units for executive branch state employees. The following 
59.29 	employees shall be excluded from any appropriate unit:
59.30 	(1) the positions and classes of positions in the classified and unclassified services defined 
59.31 	as managerial by the commissioner of management and budget in accordance with section 
59.32 	43A.18, subdivision 3, and so designated in the official state compensation schedules;
60.1 	(2) unclassified positions in the Minnesota State Colleges and Universities defined as 
60.2 	managerial by the Board of Trustees;
60.3 	(3) positions of all unclassified employees appointed by a constitutional officer;
60.4 	(4) positions in the Bureau of Mediation Services and the Public Employment Relations 
60.5 	Board;
60.6 	(5) positions of employees whose classification is pilot or chief pilot;
60.7 	(6) administrative law judge and compensation judge positions in the Office of 
60.8 	Administrative Hearings; and
60.9 	(7) positions of all confidential employees.; and
60.10 	(8) positions of employees of the State Board of Investment who are employed under 
60.11 	the terms and conditions of the compensation plan approved under section 43A.18, 
60.12 	subdivision 3b.
60.13 	The governor may upon the unanimous written request of exclusive representatives of 
60.14 	units and the commissioner direct that negotiations be conducted for one or more units in 
60.15 	a common proceeding or that supplemental negotiations be conducted for portions of a unit 
60.16 	or units defined on the basis of appointing authority or geography.

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

60.18 	ARTICLE 7
60.19 	STUDY OF ADEQUACY OF POLICE DISABILITY BENEFITS

60.20 	Section 1. DEPARTMENT OF LABOR AND INDUSTRY; STUDY OF ADEQUACY 
60.21 	OF POLICE DISABILITY BENEFITS.
 60.22 	The Department of Labor and Industry shall study the adequacy of current benefits 
60.23 	available to disabled or injured police officers. The study shall consider workers' 
60.24 	compensation, disability, and pension benefits and the adequacy of these benefits for 
60.25 	Minnesota police officers. At least one public hearing shall be held. The Public Employees 
60.26 	Retirement Association shall cooperate with the department in conducting this study. The 
60.27 	department shall issue a report no later than January 15, 2023, to the chairs and ranking 
60.28 	minority members of the legislative committees with jurisdiction over public safety and 
60.29 	employment issues and to the chair of the Legislative Commission on Pensions and 
60.30 	Retirement.

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

61.1 	Sec. 2. APPROPRIATION.
 61.2 	$125,000 in fiscal year 2023 is appropriated from the general fund to the Department 
61.3 	of Labor and Industry for costs associated with conducting the study required by this article. 
61.4 	This is a onetime appropriation.

61.5 	ARTICLE 8
61.6 	SERVICE CREDIT PURCHASE FOR TEACHING SERVICE IN OTHER STATES

61.7 	Section 1. [354.544] SERVICE CREDIT PURCHASE FOR TEACHING SERVICE 
61.8 	IN OTHER STATES.
61.9 		Subdivision 1.Service credit purchase authorized. (a) A teacher who has at least three 
61.10 	years of allowable service credit with the Teachers Retirement Association is entitled to 
61.11 	purchase up to five years of allowable and formula service credit for periods of service as 
61.12 	an elementary or secondary public or charter school teacher in another state by making 
61.13 	payment of the purchase payment amount under subdivision 4.
61.14 	(b) Periods of service that may be purchased are:
61.15 	(1) periods of service as a teacher in another state before becoming a member of the 
61.16 	association; and
61.17 	(2) periods of service as a teacher in another state during any period of employment 
61.18 	after terminating teaching service as a member of the association and before returning to 
61.19 	teaching service as a member of the association.
61.20 	(c) A teacher is not permitted to purchase a period of service if the purchase would result 
61.21 	in an entitlement to service credit for the same period of service in more than one pension 
61.22 	or retirement plan.
61.23 		Subd. 2.Application and documentation. A teacher who desires to purchase service 
61.24 	credit under subdivision 1 must apply with the executive director to make the purchase. The 
61.25 	application must include:
61.26 	(1) documentation showing the teacher's period of employment as a teacher in another 
61.27 	state;
61.28 	(2) the period of employment for which service credit is being purchased;
61.29 	(3) permission to allow the executive director to request and receive verification of such 
61.30 	employment;
62.1 	(4) documentation showing that the teacher has forfeited all rights to benefits for the 
62.2 	period of employment as a teacher in another state; and
62.3 	(5) any other relevant information requested by the executive director.
62.4 		Subd. 3.Grant of service credit. The Teachers Retirement Association must grant 
62.5 	allowable service credit to the teacher making the purchase for the period being purchased 
62.6 	upon receipt of the purchase payment amount. Payment must be made by the earlier of the 
62.7 	teacher's termination of teaching service or one year after the executive director's approval 
62.8 	of the teacher's application to purchase service credit. Purchasing allowable service credit 
62.9 	under this section does not change the date the teacher first became a member of the 
62.10 	association for the purpose of computing an annuity under section 354.44, subdivision 6.
62.11 		Subd. 4.Purchase payment amount. The purchase payment amount is the amount 
62.12 	determined under section 356.551 for the period or periods of service requested, except 
62.13 	that, for purposes of calculating the purchase payment amount to purchase allowable service 
62.14 	credit for service as a teacher in another state that occurred before becoming a member of 
62.15 	the association or between periods of teaching service as a member of the association, 
62.16 	section 356.551, subdivision 2, paragraph (c), shall not apply.

62.17 	EFFECTIVE DATE. This section is effective January 1, 2023.

62.18 	Sec. 2. [354A.0961] SERVICE CREDIT PURCHASE FOR TEACHING SERVICE 
62.19 	IN OTHER STATES.
62.20 		Subdivision 1.Service credit purchase authorized. (a) A teacher who has at least three 
62.21 	years of allowable service credit with the St. Paul Teachers Retirement Fund Association 
62.22 	is entitled to purchase up to five years of allowable and formula service credit for periods 
62.23 	of service as an elementary or secondary public or charter school teacher in another state 
62.24 	by making payment of the purchase payment amount under subdivision 4.
62.25 	(b) Periods of service that may be purchased are:
62.26 	(1) periods of service as a teacher in another state before becoming a member of the 
62.27 	association; and
62.28 	(2) periods of service as a teacher in another state during any period of employment 
62.29 	after terminating teaching service as a member of the association and before returning to 
62.30 	teaching service as a member of the association.
63.1 	(c) A teacher is not permitted to purchase a period of service if the purchase would result 
63.2 	in an entitlement to service credit for the same period of service in more than one pension 
63.3 	or retirement plan.
63.4 		Subd. 2.Application and documentation. A teacher who desires to purchase service 
63.5 	credit under subdivision 1 must apply with the executive director to make the purchase. The 
63.6 	application must include:
63.7 	(1) documentation showing the teacher's period of employment as a teacher in another 
63.8 	state;
63.9 	(2) the period of employment for which service credit is being purchased;
63.10 	(3) permission to allow the executive director to request and receive verification of such 
63.11 	employment;
63.12 	(4) documentation showing that the teacher has forfeited all rights to benefits for the 
63.13 	period of employment as a teacher in another state; and
63.14 	(5) any other relevant information requested by the executive director.
63.15 		Subd. 3.Grant of service credit. The St. Paul Teachers Retirement Fund Association 
63.16 	must grant allowable service credit to the teacher making the purchase for the period being 
63.17 	purchased upon receipt of the purchase payment amount. Payment must be made by the 
63.18 	earlier of the teacher's termination of teaching service or one year after the executive director's 
63.19 	approval of the teacher's application to purchase service credit. Purchasing allowable service 
63.20 	credit under this section does not change the date the teacher first became a member of the 
63.21 	association for the purpose of computing an annuity under section 354A.31, subdivision 6.
63.22 		Subd. 4.Purchase payment amount. The purchase payment amount is the amount 
63.23 	determined under section 356.551 for the period or periods of service requested, except 
63.24 	that, for purposes of calculating the purchase payment amount to purchase allowable service 
63.25 	credit for service as a teacher in another state that occurred before becoming a member of 
63.26 	the association or between periods of teaching service as a member of the association, 
63.27 	section 356.551, subdivision 2, paragraph (c), shall not apply.

63.28 	EFFECTIVE DATE. This section is effective January 1, 2023.

63.29 	Sec. 3. Minnesota Statutes 2020, section 356.551, subdivision 2, is amended to read:
63.30 		Subd. 2.Determination. (a) Unless the minimum purchase amount set forth in paragraph 
63.31 	(c) applies, the prior service credit purchase amount is an amount equal to the actuarial 
63.32 	present value, on the date of payment, as calculated by the chief administrative officer of 
64.1 	the pension plan and reviewed by the actuary retained under section 356.214, of the amount 
64.2 	of the additional retirement annuity obtained by the acquisition of the additional service 
64.3 	credit in this section.
64.4 	(b) Calculation of this amount must be made using the investment return assumption 
64.5 	applicable to the public pension plan specified in section 356.215, subdivision 8, and the 
64.6 	mortality table adopted for the public pension plan.
64.7 	(1) Unless clause (2) applies, the calculation must assume continuous future service in 
64.8 	the public pension plan until, and retirement at, the age at which the minimum requirements 
64.9 	of the fund for normal retirement or retirement with an annuity unreduced for retirement at 
64.10 	an early age, including section 356.30, are met with the additional service credit purchased. 
64.11 	The calculation must also assume a full-time equivalent salary, or actual salary, whichever 
64.12 	is greater, and a future salary history that includes annual salary increases at the applicable 
64.13 	salary increase rate for the plan specified in section 356.215, subdivision 8.
64.14 	(2) This clause applies when the calculation is being done for purposes of section 
64.15 	353.0141, subdivision 3; 354.544; or 354A.0961. The calculation must include continuous 
64.16 	future service in the public pension plan until, and retirement at, any age at or after which 
64.17 	the minimum requirements of the fund for early retirement or retirement with an annuity 
64.18 	unreduced for retirement at an early age, including section 356.30, are met with the additional 
64.19 	service credit purchased. The calculation must be determined using the retirement age that 
64.20 	provides the most valuable benefit to the member. The calculation must also assume a 
64.21 	full-time equivalent salary, or actual salary, whichever is greater, and a future salary history 
64.22 	that includes annual salary increases at the applicable salary increase rate for the plan 
64.23 	specified in section 356.215, subdivision 8.
64.24 	(c) The prior service credit purchase amount may not be less than the amount determined 
64.25 	by applying, for each year or fraction of a year being purchased, the sum of the employee 
64.26 	contribution rate, the employer contribution rate, and the additional employer contribution 
64.27 	rate, if any, applicable during that period, to the person's annual salary during that period, 
64.28 	or fractional portion of a year's salary, if applicable, plus interest at the applicable annual 
64.29 	rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, whichever applies, 
64.30 	compounded annually, from the end of the year in which contributions would otherwise 
64.31 	have been made to the date on which the payment is received.
64.32 	(d) Unless otherwise provided by statutes governing a specific plan, payment must be 
64.33 	made in one lump sum within one year of the prior service credit authorization or prior to 
65.1 	the member's effective date of retirement, whichever is earlier. Payment of the amount 
65.2 	calculated under this section must be made by the applicable eligible person.
65.3 	(e) However, the current employer or the prior employer may, at its discretion, pay all 
65.4 	or any portion of the payment amount that exceeds an amount equal to the employee 
65.5 	contribution rates in effect during the period or periods of prior service applied to the actual 
65.6 	salary rates in effect during the period or periods of prior service, plus interest at the 
65.7 	applicable annual rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, whichever 
65.8 	applies, compounded annually, from the date on which the contributions would otherwise 
65.9 	have been made to the date on which the payment is made. If the employer agrees to 
65.10 	payments under this subdivision, the purchaser must make the employee payments required 
65.11 	under this subdivision within 90 days of the prior service credit authorization. If that 
65.12 	employee payment is made, the employer payment under this subdivision must be remitted 
65.13 	to the chief administrative officer of the public pension plan within 60 days of receipt by 
65.14 	the chief administrative officer of the employee payments specified under this subdivision.

65.15 	EFFECTIVE DATE. This section is effective January 1, 2023.

65.16 	ARTICLE 9
65.17 	TECHNICAL CLARIFICATIONS AND CORRECTIONS

65.18 	Section 1. Minnesota Statutes 2020, section 352.87, subdivision 6, is amended to read:
65.19 		Subd. 6.Disability benefit coordination. If the eligible employee is entitled to receive 
65.20 	a disability benefit as provided in subdivision 4 or 5 and has allowable service credit under 
65.21 	this section for less service than the length of service upon which the disability benefit in 
65.22 	subdivision 4 or 5 is based, and also has allowable service in the general plan not includable 
65.23 	in this section, the employee is entitled to a disability benefit or deferred retirement annuity 
65.24 	based on the general plan service not includable in this section only for the service that, 
65.25 	when combined with the service includable in this section, exceeds the number of years on 
65.26 	which the disability benefit provided in subdivision 4 or 5 is based. The benefit recipient 
65.27 	under subdivision 4 or 5 who also has credit for regular plan service must in all respects 
65.28 	qualify under section 352.113 to be entitled to receive a disability benefit based on the 
65.29 	general plan service not includable in this section, except that the service may be combined 
65.30 	to satisfy length of service requirements. Any deferred annuity to which the employee may 
65.31 	be entitled based on general plan service not includable in this section must be augmented 
65.32 	as provided in section 352.72, subdivision 2 352.22, subdivision 3a, while the employee is 
65.33 	receiving a disability benefit under this section.

66.1 	Sec. 2. Minnesota Statutes 2020, section 352.94, is amended to read:
66.2 	352.94 AUGMENTATION FOR EMPLOYEES WITH GENERAL AND 
66.3 	CORRECTIONAL SERVICE.
66.4 	An employee who becomes covered by the correctional plan after serving as a general 
66.5 	plan covered employee, or becomes covered by the general plan after serving as a correctional 
66.6 	plan covered employee, is covered under section 352.72, subdivision 2 356.311.

66.7 	Sec. 3. Minnesota Statutes 2020, section 352.95, subdivision 6, is amended to read:
66.8 		Subd. 6.Disability benefit for certain employees with regular plan service. If the 
66.9 	employee is entitled to receive a disability benefit as provided in subdivision 1 or 2 and has 
66.10 	credit for less covered correctional service than the length of service upon which the 
66.11 	correctional disability benefit is based, and also has credit for regular plan service, the 
66.12 	employee is entitled to a disability benefit or deferred retirement annuity based on the regular 
66.13 	plan service only for that service which when combined with the correctional service exceeds 
66.14 	number of years on which the correctional disability benefit is based. The disabled employee 
66.15 	who also has credit for regular plan service must in all respects qualify under section 352.113
66.16 	for a disability benefit based on the regular plan service, except that the service may be 
66.17 	combined to satisfy length of service requirements. Any deferred annuity to which the 
66.18 	employee is entitled based on regular plan service must be augmented as provided in section
66.19 	352.72 352.22, subdivision 3a, while the employee is receiving a disability benefit under 
66.20 	this section.

66.21 	Sec. 4. Minnesota Statutes 2020, section 352B.05, is amended to read:
66.22 	352B.05 INVESTMENTS.
66.23 	The State Board of Investment may invest and reinvest any portions of the State Patrol 
66.24 	retirement fund not needed for immediate purposes. The executive director of the Minnesota 
66.25 	State Retirement System shall determine what funds may be invested. Money may be 
66.26 	invested in securities authorized as legal investments for the Minnesota State Retirement 
66.27 	System. The state board may sell, convey, and exchange securities and invest and reinvest 
66.28 	the funds when it deems it desirable to do so. The state board shall sell securities upon 
66.29 	request from the executive director when the executive director determines funds are needed 
66.30 	for its purposes. Provisions regarding accounting procedures and restrictions and conditions 
66.31 	for the purchase and sale of securities for the Minnesota State Retirement System apply to 
66.32 	the accounting, purchase, and sale of securities for the State Patrol retirement fund.

67.1 	Sec. 5. Minnesota Statutes 2020, section 353.031, subdivision 7, is amended to read:
67.2 		Subd. 7.Refusal of examination or medical evidence. If a person applying for or 
67.3 	receiving a disability benefit refuses to submit to a medical examination under subdivision 
67.4 	6, or fails to provide or to authorize the release of medical evidence under subdivision 3 or 
67.5 	8, the association shall cease the application process or shall discontinue the payment of a 
67.6 	disability benefit, whichever is applicable. Upon the receipt of the requested medical 
67.7 	evidence, the association shall resume the application process or the payment of a disability 
67.8 	benefit upon approval for the continuation, whichever is applicable.

67.9 	Sec. 6. Minnesota Statutes 2020, section 353.32, subdivision 1a, is amended to read:
67.10 		Subd. 1a.Surviving spouse optional annuity. (a) If a member or former member who 
67.11 	is vested under section 353.01, subdivision 47, and who dies before the annuity or disability 
67.12 	benefit begins to accrue under section 353.29, subdivision 7, or 353.33, subdivision 2, 
67.13 	notwithstanding any designation of beneficiary to the contrary, the surviving spouse may 
67.14 	elect to receive, instead of a refund with interest under subdivision 1, or surviving spouse 
67.15 	benefits otherwise payable under section 353.31, an annuity equal to a 100 percent joint 
67.16 	and survivor annuity computed consistent with section 353.30, subdivision 1a, 1c, or 5, 
67.17 	whichever is applicable.
67.18 	(b) If a member first became a public employee or a member of a pension fund listed in 
67.19 	section 356.30, subdivision 3, before July 1, 1989, and has credit for at least 30 years of 
67.20 	allowable service on the date of death, the surviving spouse may elect to receive a 100 
67.21 	percent joint and survivor annuity computed using section 353.30, subdivision 1b, except 
67.22 	that the early retirement reduction under that provision will be applied from age 62 back to 
67.23 	age 55 and one-half of the early retirement reduction from age 55 back to the age payment 
67.24 	begins.
67.25 	(c) If a member who was under age 55 and who is vested under section 353.01, 
67.26 	subdivision 47, dies, but did not qualify for retirement on the date of death, the surviving 
67.27 	spouse may elect to receive a 100 percent joint and survivor annuity computed using section 
67.28 	353.30, subdivision 1c or 5, as applicable, except that the early retirement reduction specified 
67.29 	in the applicable subdivision will be applied to age 55 and one-half of the early retirement 
67.30 	reduction from age 55 back to the age payment begins.
67.31 	(d) Notwithstanding the definition of surviving spouse in section 353.01, subdivision 
67.32 	20, a former spouse of the member, if any, is entitled to a portion of the monthly surviving 
67.33 	spouse optional annuity if stipulated under the terms of a marriage dissolution decree filed 
67.34 	with the association. If there is no surviving spouse or child or children, a former spouse 
68.1 	may be entitled to a lump-sum refund payment under subdivision 1, if provided for in a 
68.2 	marriage dissolution decree, but not a monthly surviving spouse optional annuity, despite 
68.3 	the terms of a marriage dissolution decree filed with the association.
68.4 	(e) The surviving spouse eligible for surviving spouse benefits under paragraph (a) may 
68.5 	apply for the annuity at any time after the date on which the deceased employee would have 
68.6 	attained the required age for retirement based on the employee's allowable service. The 
68.7 	surviving spouse eligible for surviving spouse benefits under paragraph (b) or (c) may apply 
68.8 	for an annuity any time after the member's death.
68.9 	(f) Sections Section353.34, subdivision 3, and 353.71, subdivision 2, apply applies to 
68.10 	a deferred annuity or surviving spouse benefit payable under this subdivision.
68.11 	(g) An amount equal to any excess of the accumulated contributions that were credited 
68.12 	to the account of the deceased employee over and above the total of the annuities paid and 
68.13 	payable to the surviving spouse must be paid to the surviving spouse's estate.
68.14 	(h) A member may specify in writing, with the signed consent of the spouse, that this 
68.15 	subdivision does not apply and that payment may be made only to the designated beneficiary 
68.16 	as otherwise provided by this chapter. The waiver of a surviving spouse annuity under this 
68.17 	section does not make a dependent child eligible for benefits under subdivision 1c.
68.18 	(i) If the deceased member or former member first became a public employee or a 
68.19 	member of a public pension plan listed in section 356.30, subdivision 3, on or after July 1, 
68.20 	1989, a survivor annuity computed under paragraph (a) or (c) must be computed as specified 
68.21 	in section 353.30, subdivision 5, except for the revised early retirement reduction specified 
68.22 	in paragraph (c), if paragraph (c) is the applicable provision.
68.23 	(j) For any survivor annuity determined under this subdivision, the payment is to be 
68.24 	based on the total allowable service that the member had accrued as of the date of death 
68.25 	and the age of the member and surviving spouse on that date.

68.26 	Sec. 7. Minnesota Statutes 2020, section 353.34, subdivision 5, is amended to read:
68.27 		Subd. 5.Refundment Right to a refund generally unlimited. The right of refundment
68.28 	to a refund provided in this chapter, and laws amendatory thereof, is not restricted as to 
68.29 	time unless specifically provided and the statute of limitation does not apply thereto.

68.30 	Sec. 8. Minnesota Statutes 2020, section 353.657, subdivision 2a, is amended to read:
68.31 		Subd. 2a.Death while eligible survivor benefit. (a) If a member or former member 
68.32 	who has attained the age of at least 50 years and either who is vested under section 353.01, 
69.1 	subdivision 47, or who has credit for at least 30 years of allowable service, regardless of 
69.2 	age attained, dies before the annuity or disability benefit becomes payable, notwithstanding 
69.3 	any designation of beneficiary to the contrary, the surviving spouse may elect to receive a 
69.4 	death while eligible survivor benefit.
69.5 	(b) Notwithstanding the definition of surviving spouse in section 353.01, subdivision 
69.6 	20, a former spouse of the member, if any, is entitled to a portion of the death while eligible 
69.7 	survivor benefit if stipulated under the terms of a marriage dissolution decree filed with the 
69.8 	association. If there is no surviving spouse or child or children, a former spouse may be 
69.9 	entitled to a lump-sum refund payment under section 353.32, subdivision 1, if provided for 
69.10 	in a marriage dissolution decree but not a death while eligible survivor benefit despite the 
69.11 	terms of a marriage dissolution decree filed with the association.
69.12 	(c) The benefit may be elected instead of a refund with interest under section 353.32, 
69.13 	subdivision 1, or surviving spouse benefits otherwise payable under subdivisions 1 and 2. 
69.14 	The benefit must be an annuity equal to the 100 percent joint and survivor annuity which 
69.15 	the member could have qualified for on the date of death, computed as provided in sections 
69.16 	353.651, subdivision 3, and 353.30, subdivision 3.
69.17 	(d) The surviving spouse may apply for the annuity at any time after the date on which 
69.18 	the deceased employee would have attained the required age for retirement based on the 
69.19 	employee's allowable service. Sections Section353.34, subdivision 3, and 353.71, subdivision 
69.20 	2, apply applies to a deferred annuity payable under this subdivision.
69.21 	(e) No payment accrues beyond the end of the month in which entitlement to such annuity 
69.22 	has terminated. An amount equal to the excess, if any, of the accumulated contributions 
69.23 	which were credited to the account of the deceased employee over and above the total of 
69.24 	the annuities paid and payable to the surviving spouse must be paid to the deceased member's 
69.25 	last designated beneficiary or, if none, to the legal representative of the estate of such 
69.26 	deceased member.
69.27 	(f) Any member may request in writing, with the signed consent of the spouse, that this 
69.28 	subdivision not apply and that payment be made only to the designated beneficiary, as 
69.29 	otherwise provided by this chapter.
69.30 	(g) For a member who is employed as a full-time firefighter by the Department of Military 
69.31 	Affairs of the state of Minnesota, allowable service as a full-time state Military Affairs 
69.32 	Department firefighter credited by the Minnesota State Retirement System may be used in 
69.33 	meeting the minimum allowable service requirement of this subdivision.

70.1 	Sec. 9. Minnesota Statutes 2020, section 353.68, subdivision 4, is amended to read:
70.2 		Subd. 4.Deferred annuity. The deferred annuity of section 353.34, subdivision 3, as 
70.3 	it applies to members of the police and fire fund, begins and is computed in the manner 
70.4 	provided in section 353.651 on the basis of the law in effect on the date of termination of 
70.5 	public service. The deferred annuity is augmented under section 353.71, subdivision 2
70.6 	353.34, subdivision 3.

70.7 	Sec. 10. Minnesota Statutes 2020, section 356.20, subdivision 2, is amended to read:
70.8 		Subd. 2.Covered public pension plans and funds. This section applies to the following 
70.9 	public pension plans:
70.10 	(1) the general state employees retirement plan of the Minnesota State Retirement System;
70.11 	(2) the general employees retirement plan of the Public Employees Retirement 
70.12 	Association;
70.13 	(3) the Teachers Retirement Association;
70.14 	(4) the State Patrol retirement plan;
70.15 	(5) the St. Paul Teachers Retirement Fund Association;
70.16 	(6) the University of Minnesota faculty retirement plan;
70.17 	(7) the University of Minnesota faculty supplemental retirement plan;
70.18 	(8) the judges retirement fund;
70.19 	(9) the Bloomington Fire Department Relief Association;
70.20 	(10) a volunteer firefighter relief association governed by section 424A.091;
70.21 	(11) the public employees police and fire plan of the Public Employees Retirement 
70.22 	Association;
70.23 	(12) the correctional state employees retirement plan of the Minnesota State Retirement 
70.24 	System;
70.25 	(13) the local government correctional service retirement plan of the Public Employees 
70.26 	Retirement Association; and
70.27 	(14) the statewide lump-sum volunteer firefighter plan.

70.28 	Sec. 11. Minnesota Statutes 2020, section 356.24, subdivision 3, is amended to read:
70.29 		Subd. 3.Deferred compensation plan. (a) As used in this section, a:
71.1 	(1) "deferred compensation plan" means a plan that satisfies the requirements inof this 
71.2 	subdivision.;
71.3 	(2) "plan administrator" means the individual or entity defined as the plan administrator 
71.4 	in the plan document for the Minnesota deferred compensation plan under section 352.965 
71.5 	or a deferred compensation plan under section 457(b) of the Internal Revenue Code; and
71.6 	(3) "vendor" means the provider of an annuity contract, custodial account, or retirement 
71.7 	income account under a tax-sheltered annuity plan under section 403(b) of the Internal 
71.8 	Revenue Code.
71.9 	(b) The plan is:
71.10 	(1) the Minnesota deferred compensation plan under section 352.965;
71.11 	(2) a tax-sheltered annuity programplan under section 403(b) of the Internal Revenue 
71.12 	Code; or
71.13 	(3) a deferred compensation plan under section 457(b) of the Internal Revenue Code.
71.14 	(c) For each investment fund available to participants under the plan, other than in a 
71.15 	self-directed brokerage account, the plan administrator or custodianvendor discloses at 
71.16 	least annually to participants a statement that sets forth (1) all fees, including administrative, 
71.17 	maintenance, and investment fees, that impact the rate of return on each investment fund 
71.18 	available under the plan, and (2) for each investment fund, the rates of return for the prior 
71.19 	one-, three-, five-, and ten-year periods or for the life of the fund, if shorter, in an easily 
71.20 	understandable document. The plan administrator or custodianvendor must file a copy of 
71.21 	this documentstatement with the executive director of the Legislative Commission on 
71.22 	Pensions and Retirement within 30 days of the end of each fiscal year of the plan.
71.23 	(d) Enrollment in the plan is provided for in:
71.24 	(1) a personnel policy of the public employer;
71.25 	(2) a collective bargaining agreement between the public employer and the exclusive 
71.26 	representative of public employees in an appropriate unit; or
71.27 	(3) an individual employment contract between a city and a city manager.
71.28 	(e) The plan covers employees of a school district, state agency, or other governmental 
71.29 	subdivision. The plan may cover city managers covered by an alternative retirement 
71.30 	arrangement under section 353.028, subdivision 3, paragraph (a) or (b), but must not cover 
71.31 	employees of the Board of Trustees of Minnesota State Colleges and Universities who are 
71.32 	covered by the Higher Education Supplemental Retirement Plan under chapter 354C.
72.1 	(f) Except as permitted under paragraph (g), public funds are contributed to the plan 
72.2 	only in an amount that matches employee contributions on a dollar for dollar basis, but not 
72.3 	to exceed the lesser of (1) the maximum authorized under the policy described in paragraph 
72.4 	(d) that provides for enrollment in the plan or program, or (2) one-half of the annual limit 
72.5 	on elective deferrals under section 402(g) of the Internal Revenue Code.
72.6 	(g) Contributions to the plan may include contributions deducted from an employee's 
72.7 	sick leave, accumulated vacation leave, or accumulated severance pay, whether characterized 
72.8 	as employee contributions or nonelective employer contributions, up to applicable limits 
72.9 	under the Internal Revenue Code. Such contributions are not subject to the match requirement 
72.10 	and limit in paragraph (f).

72.11 	Sec. 12. Minnesota Statutes 2020, section 356.645, is amended to read:
72.12 	356.645 INVESTMENT OF VARIOUS DEFINED CONTRIBUTION PLAN 
72.13 	ASSETS PLANS AND VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATIONS.
72.14 	The State Board of Investment shall determine the investments to be made available to 
72.15 	plan participants in plans defined in sections 352.965, 352.98, and 383B.46 and chapters 
72.16 	352D and 353D and to volunteer firefighters relief associations under chapter 424A. 
72.17 	Investments made available to plan participants and relief associations must include at least 
72.18 	one or more of the following:
72.19 	(1) shares in the Minnesota supplemental investment fund established in section 11A.17;
72.20 	(2) savings accounts in federally insured financial institutions;
72.21 	(3) life insurance contracts, fixed annuity contracts, and variable annuity contracts from 
72.22 	companies that are subject to regulation by the commissioner of commerce;
72.23 	(4) investment options from open-end investment companies registered under the federal 
72.24 	Investment Company Act of 1940, United States Code, title 15, sections 80a-1 to 80a-64;
72.25 	(5) investment options from a firm that is a registered investment adviser under the 
72.26 	Investment Advisers Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21; 
72.27 	and
72.28 	(6) investment options of a bank as defined in United States Code, title 15, section 80b-2, 
72.29 	subsection (a), paragraph (2), or a bank holding company as defined in the Bank Holding 
72.30 	Company Act of 1956, United States Code, title 12, section 1841, subsection (a), paragraph 
72.31 	(1).

73.1 	Sec. 13. Minnesota Statutes 2020, section 356A.06, subdivision 6, is amended to read:
73.2 		Subd. 6.Limited list of authorized investment securities.  (a) Authority. This 
73.3 	subdivision specifies the investment authority for a limited list plan. A limited list plan is 
73.4 	a covered pension plan that does not:
73.5 	(1) have pension fund assets with a market value in excess of $1,000,000;
73.6 	(2) use the services of an investment advisor registered with the Securities and Exchange 
73.7 	Commission in accordance with the Investment Advisers Act of 1940, or registered as an 
73.8 	investment advisor in accordance with sections 80A.58, and 80A.60, for the investment of 
73.9 	at least 60 percent of its pension fund assets, calculated on market value;
73.10 	(3) use the services of the State Board of Investment for the investment of at least 60 
73.11 	percent of its pension fund assets, calculated on market value; or
73.12 	(4) use a combination of the services of an investment advisor meeting the requirements 
73.13 	of clause (2) and the services of the State Board of Investment for the investment of at least 
73.14 	75 percent of its pension fund assets, calculated on market value.
73.15 	(b) Investment agency appointment authority. The governing board of a covered 
73.16 	pension plan may select and appoint investment agencies to act for or on its behalf.
73.17 	(c) Savings accounts; similar vehicles. A limited list plan is authorized to invest in:
73.18 	(1) certificates of deposit issued, to the extent of available insurance or collateralization, 
73.19 	by a financial institution that is a member of the Federal Deposit Insurance Corporation or 
73.20 	the Federal Savings and Loan Insurance Corporation, that is insured by the National Credit 
73.21 	Union Administration, or that is authorized to do business in this state and has deposited 
73.22 	with the chief administrative officer of the plan a sufficient amount of marketable securities 
73.23 	as collateral in accordance with section 118A.03;
73.24 	(2) guaranteed investment contracts, limited to those issued by insurance companies or 
73.25 	banks rated in the top four quality categories by a nationally recognized rating agency or 
73.26 	to alternative guaranteed investment contracts where the underlying assets comply with the 
73.27 	requirements of this paragraph; and
73.28 	(3) savings accounts, limited to those fully insured by federal agencies.
73.29 	(d) Government-backed obligations. A limited list plan is authorized to invest in 
73.30 	governmental obligations as further specified in this paragraph, including bonds, notes, 
73.31 	bills, mortgages, and other evidences of indebtedness, if the issue is backed by the full faith 
73.32 	and credit of the issuer or if the issue is rated among the top four quality rating categories 
74.1 	by a nationally recognized rating agency. The obligations in which plans are authorized to 
74.2 	invest under this paragraph are guaranteed or insured issues of:
74.3 	(1) the United States, one of its agencies, one of its instrumentalities, or an organization 
74.4 	created and regulated by an act of Congress;
74.5 	(2) the Dominion of Canada or one of its provinces if the principal and interest are 
74.6 	payable in United States dollars;
74.7 	(3) a state or one of its municipalities, political subdivisions, agencies, or 
74.8 	instrumentalities; or
74.9 	(4) any United States government-sponsored organization of which the United States is 
74.10 	a member if the principal and interest are payable in United States dollars.
74.11 	(e) Corporate obligations. A limited list plan is authorized to invest in corporate 
74.12 	obligations, including bonds, notes, debentures, transportation equipment obligations, or 
74.13 	any other longer-term evidences of indebtedness issued or guaranteed by a corporation 
74.14 	organized under the laws of the United States or any of its states, or the Dominion of Canada 
74.15 	or any of its provinces if:
74.16 	(1) the principal and interest are payable in United States dollars; and
74.17 	(2) the obligations are rated among the top four quality categories by a nationally 
74.18 	recognized rating agency.
74.19 	(f) Mutual fund authority, limited list authorized assets. Securities authorized under 
74.20 	paragraphs (c) to (e) may be owned directly or through shares in exchange-traded funds, or 
74.21 	through open-end mutual funds, or as units of commingled trusts.
74.22 	(g) Extended mutual fund authority. Notwithstanding restrictions in other paragraphs 
74.23 	of this subdivision, a limited list plan is authorized to invest the assets of the special fund 
74.24 	in exchange-traded funds and open-end mutual funds, if their portfolio investments comply 
74.25 	with the type of securities authorized for investment under section 356A.06, subdivision 7, 
74.26 	paragraphs (c) to (g). Investments under this paragraph must not exceed 75 percent of the 
74.27 	assets of the special fund, not including any money market investments through mutual or 
74.28 	exchange-traded funds.
74.29 	(h) Supplemental fund authority. The governing body of a limited list plan may certify 
74.30 	special fund assets to the State Board of Investment for investment under section 11A.17.
74.31 	(i) Assets mix restrictions. A limited list plan must conform to the asset mix limitations 
74.32 	specified in section 356A.06, subdivision 7.

75.1 	Sec. 14. Minnesota Statutes 2020, section 356A.06, subdivision 8a, is amended to read:
75.2 		Subd. 8a.Collateralization requirement. (a) The governing board of a covered pension 
75.3 	plan shall designate a national bank, an insured state bank, an insured credit union, or an 
75.4 	insured thrift institution as the depository for the pension plan for assets not held by the 
75.5 	pension plan's custodian bank.
75.6 	(b) Unless collateralized as provided under paragraph (c), a covered pension plan may 
75.7 	not deposit in a designated depository an amount in excess of the insurance held by the 
75.8 	depository in the Federal Deposit Insurance Corporation, the Federal Savings and Loan 
75.9 	Insurance Corporation, or the National Credit Union Administration, whichever applies.
75.10 	(c) For an amount greater than the insurance under paragraph (b), the depository must 
75.11 	provide collateral in compliance with section 118A.03 or with any comparable successor 
75.12 	enactment relating to the collateralization of municipal deposits.

75.13 	Sec. 15. Minnesota Statutes 2020, section 424A.001, subdivision 4, is amended to read:
75.14 		Subd. 4.Relief association. (a) "Relief association" or "volunteer firefighters relief 
75.15 	association" means a volunteer firefighters relief association or a volunteer firefighters 
75.16 	division or account of a partially salaried and partially volunteer firefighters relief association 
75.17 	that is:
75.18 	(1) organized and incorporated as a nonprofit corporation to provide retirement benefits 
75.19 	to volunteer firefighters under chapter 317A and any laws of the state;
75.20 	(2) governed by this chapter and sections 424A.091 to 424A.095; and
75.21 	(3) directly associated with:
75.22 	(i) a fire department established by municipal ordinance;
75.23 	(ii) an independent nonprofit firefighting corporation that is organized under the 
75.24 	provisions of chapter 317A and that operates primarily for firefighting purposes; or
75.25 	(iii) a fire department operated as or by a joint powers entity that operates primarily for 
75.26 	firefighting purposes.
75.27 	(b) "Relief association" or "volunteer firefighters relief association" does not mean:
75.28 	(1) the Bloomington Fire Department Relief Association governed by Laws 2013, chapter 
75.29 	111, article 5, sections 31 to 42; Minnesota Statutes 2000, chapter 424; and Laws 1965, 
75.30 	chapter 446, as amended; or
75.31 	(2) the statewide lump-sum volunteer firefighter plan governed by chapter 353G.
76.1 	(c) A relief association or volunteer firefighters relief association is a governmental 
76.2 	entity that receives and manages public money to provide retirement benefits for individuals 
76.3 	providing the governmental services of firefighting and emergency first response.

76.4 	Sec. 16. Minnesota Statutes 2020, section 424A.08, is amended to read:
76.5 	424A.08 MUNICIPALITY WITHOUT RELIEF ASSOCIATION; AUTHORIZED 
76.6 	DISBURSEMENTS.
76.7 	(a) Any municipality which is entitled to receive fire state aid but which has no volunteer 
76.8 	firefighters relief association directly associated with its fire department and which has no 
76.9 	full-time firefighters with retirement coverage by the public employees police and fire 
76.10 	retirement plan shall deposit the fire state aid in a special account established for that purpose 
76.11 	in the municipal treasury. Disbursement from the special account may not be made for any 
76.12 	purpose except:
76.13 	(1) payment of the fees, dues and assessments to the Minnesota State Fire Department 
76.14 	Association and to the state Volunteer Firefighters Benefit Association in order to entitle 
76.15 	its firefighters to membership in and the benefits of these state associations;
76.16 	(2) payment of the cost of purchasing and maintaining needed equipment for the fire 
76.17 	department; and
76.18 	(3) payment of the cost of construction, acquisition, repair, or maintenance of buildings 
76.19 	or other premises to house the equipment of the fire department.
76.20 	(b) A municipality which is entitled to receive fire state aid, which has no volunteer 
76.21 	firefighters relief association directly associated with its fire department, which does not 
76.22 	participate in the statewide lump-sum volunteer firefighter plan under chapter 353G, and 
76.23 	which has full-time firefighters with retirement coverage by the public employees police 
76.24 	and fire retirement plan may disburse the fire state aid as provided in paragraph (a), for the 
76.25 	payment of the employer contribution requirement with respect to firefighters covered by 
76.26 	the public employees police and fire retirement plan under section 353.65, subdivision 3, 
76.27 	or for a combination of the two types of disbursements.
76.28 	(c) A municipality that has no volunteer firefighters relief association directly associated 
76.29 	with it and that participates in the statewide lump-sum volunteer firefighter plan under 
76.30 	chapter 353G shall transmit any fire state aid that it receives to the statewide lump-sum
76.31 	volunteer firefighter fund.

77.1 	Sec. 17. Minnesota Statutes 2020, section 424A.10, subdivision 1, is amended to read:
77.2 		Subdivision 1.Definitions. For purposes of this section:
77.3 	(1) "qualified recipient" means a volunteer firefighter who receives a lump-sum 
77.4 	distribution of pension or retirement benefits from a volunteer firefighters relief association 
77.5 	or from the statewide lump-sum volunteer firefighter plan;
77.6 	(2) "survivor of a deceased active or deferred volunteer firefighter" means the surviving 
77.7 	spouse of a deceased active or deferred volunteer firefighter or, if none, the surviving child 
77.8 	or children of a deceased active or deferred volunteer firefighter, or, if none, the designated 
77.9 	beneficiary of the deceased active or deferred volunteer firefighter, or, if no beneficiary has 
77.10 	been designated, the estate of the deceased active or deferred volunteer firefighter;
77.11 	(3) "active volunteer firefighter" means a person who:
77.12 	(i) regularly renders fire suppression service, the performance or supervision of authorized 
77.13 	fire prevention duties, or the performance or supervision of authorized emergency medical 
77.14 	response activities for a fire department;
77.15 	(ii) has met the statutory and other requirements for relief association membership; and
77.16 	(iii) is deemed by the relief association under law and its bylaws to be a fully qualified 
77.17 	member of the relief association or from the statewide lump-sum volunteer firefighter plan 
77.18 	for at least one month;
77.19 	(4) "deferred volunteer firefighter" means a former active volunteer firefighter who:
77.20 	(i) terminated active firefighting service, the performance or supervision of authorized 
77.21 	fire prevention duties, or the performance or supervision of authorized emergency medical 
77.22 	response activities; and
77.23 	(ii) has sufficient service credit from the applicable relief association or from the statewide 
77.24 	lump-sum volunteer firefighter plan to be entitled to a service pension under the bylaws of 
77.25 	the relief association, but has not applied for or has not received the service pension; and
77.26 	(5) "volunteer firefighter" includes an individual whose services were utilized to perform 
77.27 	or supervise fire prevention duties if authorized under section 424A.01, subdivision 5, and 
77.28 	individuals whose services were used to perform emergency medical response duties or 
77.29 	supervise emergency medical response activities if authorized under section 424A.01, 
77.30 	subdivision 5a.

78.1 	Sec. 18. Minnesota Statutes 2021 Supplement, section 424A.10, subdivision 2, is amended 
78.2 	to read:
78.3 		Subd. 2.Payment of supplemental benefit. (a) Upon the payment by a volunteer 
78.4 	firefighters relief association or by the statewide lump-sum volunteer firefighter plan of a 
78.5 	lump-sum distribution to a qualified recipient, the association or retirement plan, as 
78.6 	applicable, must pay a supplemental benefit to the qualified recipient. Notwithstanding any 
78.7 	law to the contrary, the relief association must pay the supplemental benefit out of its special 
78.8 	fund and the statewide lump-sum volunteer firefighter plan must pay the supplemental 
78.9 	benefit out of the statewide lump-sum volunteer firefighter plan. This benefit is an amount 
78.10 	equal to ten percent of the regular lump-sum distribution that is paid on the basis of the 
78.11 	recipient's service as a volunteer firefighter. In no case may the amount of the supplemental 
78.12 	benefit exceed $1,000. A supplemental benefit under this paragraph may not be paid to a 
78.13 	survivor of a deceased active or deferred volunteer firefighter in that capacity.
78.14 	(b) Upon the payment by a relief association or the retirement plan of a lump-sum 
78.15 	survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased 
78.16 	deferred volunteer firefighter, the association or retirement plan, as applicable, must pay a 
78.17 	supplemental survivor benefit to the survivor of the deceased active or deferred volunteer 
78.18 	firefighter from the special fund of the relief association and the retirement plan must pay 
78.19 	a supplemental survivor benefit to the survivor of the deceased active or deferred volunteer 
78.20 	firefighter from the retirement fund if chapter 353G so provides. The amount of the 
78.21 	supplemental survivor benefit is 20 percent of the survivor benefit, but not to exceed $2,000.
78.22 	(c) For purposes of this section, the term "regular lump-sum distribution" means the 
78.23 	pretax lump-sum distribution excluding any interest that may have been credited during a 
78.24 	volunteer firefighter's period of deferral.
78.25 	(d) An individual may receive a supplemental benefit under paragraph (a) or under 
78.26 	paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer 
78.27 	firefighter benefit.

78.28 	Sec. 19. Minnesota Statutes 2020, section 424A.10, subdivision 3, is amended to read:
78.29 		Subd. 3.State reimbursement. (a) Each year, to be eligible for state reimbursement of 
78.30 	the amount of supplemental benefits paid under subdivision 2 during the preceding calendar 
78.31 	year, the volunteer firefighters relief association or the statewide lump-sum volunteer 
78.32 	firefighter plan shall apply to the commissioner of revenue by February 15. By March 15, 
78.33 	the commissioner shall reimburse the relief association for the amount of the supplemental 
79.1 	benefits paid by the relief association to qualified recipients and to survivors of deceased 
79.2 	active or deferred volunteer firefighters.
79.3 	(b) The commissioner of revenue shall prescribe the form of and supporting information 
79.4 	that must be supplied as part of the application for state reimbursement. The commissioner 
79.5 	of revenue shall reimburse the relief association by paying the reimbursement amount to 
79.6 	the treasurer of the municipality where the association is located and shall reimburse the 
79.7 	retirement plan by paying the reimbursement amount to the executive director of the Public 
79.8 	Employees Retirement Association. Within 30 days after receipt, the municipal treasurer 
79.9 	shall transmit the state reimbursement to the treasurer of the association if the association 
79.10 	has filed a financial report with the municipality. If the relief association has not filed a 
79.11 	financial report with the municipality, the municipal treasurer shall delay transmission of 
79.12 	the reimbursement payment to the association until the complete financial report is filed. 
79.13 	If the association has dissolved or has been removed as a trustee of state aid, the treasurer 
79.14 	shall deposit the money in a special account in the municipal treasury, and the money may 
79.15 	be disbursed only for the purposes and in the manner provided in section 424A.08. When 
79.16 	paid to the association, the reimbursement payment must be deposited in the special fund 
79.17 	of the relief association and when paid to the retirement plan, the reimbursement payment 
79.18 	must be deposited in the retirement fund of the plan.
79.19 	(c) A sum sufficient to make the payments is appropriated from the general fund to the 
79.20 	commissioner of revenue.

79.21 	Sec. 20. Minnesota Statutes 2021 Supplement, section 424B.13, subdivision 5, is amended 
79.22 	to read:
79.23 		Subd. 5.Determination of value of pension benefits and distribution to retirees in 
79.24 	pay status. (a) The board of trustees shall determine the present value of each participant's 
79.25 	accrued benefit, taking into account the full vesting requirement under subdivision 2 and 
79.26 	any increase in the lump-sum benefit or monthly pension amount approved under subdivision 
79.27 	4:
79.28 	(1) using the method set forth in section 424A.092, subdivision 2, for determining a 
79.29 	plan's funded status by calculating the value of each participant's accrued benefit; or
79.30 	(2) as determined by an actuary retained by the relief association, who meets the definition 
79.31 	of approved actuary under section 356.215, subdivision 1, paragraph (c).
79.32 	(b) If the retirement plan pays a monthly pension, the board of trustees shall must
79.33 	determine the present value of the remaining payments to any retiree in pay status or 
80.1 	beneficiary who is receiving an annuity. Present value shall must be determined by an 
80.2 	actuary who meets the definition of approved actuary under section 356.215, subdivision 
80.3 	1, paragraph (c), retained by the relief association. At the discretion of the relief association, 
80.4 	the relief association shall offer must provide the retiree in pay status or beneficiary receiving 
80.5 	the annuity either:
80.6 	(1) an immediate lump-sum distribution of an amount equal to the present value of the 
80.7 	remaining payments as determined by the actuary and permit the retiree in pay status or 
80.8 	beneficiary to elect a lump-sum payment or a direct rollover of the amount to an eligible 
80.9 	retirement plan as permitted under section 356.635, subdivisions 3 to 7, if the distribution 
80.10 	is an eligible rollover distribution as defined in section 356.635, subdivisions 4 and 5; or
80.11 	(2) continued payments in the same monthly amount under an annuity to be purchased 
80.12 	by the board of trustees from a reputable insurance company licensed to do business in the 
80.13 	state.

80.14 	Sec. 21. Minnesota Statutes 2021 Supplement, section 424B.13, subdivision 8, is amended 
80.15 	to read:
80.16 		Subd. 8.Notice to participants. The board of trustees shall provide notice to all 
80.17 	participants at least 90 days before the conversion effective date. The notice shall include:
80.18 	(1) an explanation that the plan is converting from a defined benefit plan to a defined 
80.19 	contribution plan and provide definitions for those terms, the reasons for the conversion, 
80.20 	the conversion effective date, and the procedure to be followed, including fully vesting all 
80.21 	participants;
80.22 	(2) a summary of the terms of the newly adopted defined contribution plan;
80.23 	(3) information about any increase in the benefit level and whether the increase applies 
80.24 	to all participants or only active members;
80.25 	(4) a section tailored to each participant that provides an estimate of the present value 
80.26 	of the participant's fully vested accrued benefit and the calculation that resulted in that value;
80.27 	(5) an estimate of any anticipated surplus and an explanation of the disposition of the 
80.28 	surplus, including, as applicable, a description of the method for allocating the surplus 
80.29 	among participants' accounts and whether the municipality, each municipality, if more than 
80.30 	one municipality operates the fire department pursuant to a joint powers agreement, or 
80.31 	firefighting corporation will receive any of the surplus and any conditions on its use; and
81.1 	(6) contact information for one or more members of the board of trustees who will answer 
81.2 	questions and provide a copy of the new defined contribution plan document or a summary, 
81.3 	if requested, or directions to a website for viewing and printing the plan document or 
81.4 	summary.

81.5 	Sec. 22. EFFECTIVE DATE.
 81.6 	(a) Sections 1 to 10 and 13 to 21 are effective the day following final enactment.
81.7 	(b) Section 11 is effective July 1, 2024, except the amendments to paragraphs (f) and 
81.8 	(g) are effective the day following final enactment.
81.9 	(c) Section 12 is effective January 1, 2023.

APPENDIX 

Repealed Minnesota Statutes: S3540-3 

353G.09 RETIREMENT BENEFIT ELIGIBILITY.Subd. 3.Alternative lump-sum pension eligibility and computation. 
(a) An active member of the lump-sum retirement division of the retirement plan is entitled to an alternative lump-sum service pension from the retirement plan if the person: 

(1) has separated from active service with the fire department for at least 30 days; 

(2) has attained the age of at least 50 years or the age for receipt of a service pension under the benefit plan of the applicable former volunteer firefighter relief association as of the date immediately before the election of the retirement coverage change, whichever is later; 

(3) has completed at least five years of active service with the fire department and at least five years in total as a member of the applicable former volunteer firefighter relief association or of the lump-sum retirement division of the retirement plan, but has not rendered at least five years of good time service credit as a member of the lump-sum retirement division of the plan; and 

(4) applies in a manner prescribed by the executive director for the service pension. 

(b) If retirement coverage before statewide retirement plan coverage was provided to an active member by a defined benefit relief association, as defined in section 424A.001, subdivision 1b, the alternative lump-sum service pension is: 

(1) the service pension level specified in the bylaws of the applicable former volunteer firefighter relief association as of the date immediately before the election of the retirement coverage change; multiplied by 

(2) either full years of service or years and months of service, as specified in the bylaws, as a member of that volunteer firefighter relief association and as a member of the retirement plan; multiplied by 

(3) the nonforfeitable percentage of the service pension to which the member is entitled under subdivision 2. 

(c) If retirement coverage before statewide retirement plan coverage was provided to an active member by a defined contribution relief association, as defined in section 424A.001, subdivision 1c, the alternative lump-sum service pension is: 

(1) the person's account balance as of the date immediately before the election of the retirement coverage change; multiplied by 

(2) the nonforfeitable percentage of the account balance to which the person is entitled under subdivision 2; plus 

(3) six percent annual compound interest from the date immediately before the election of the retirement coverage change until the date immediately before the date of retirement. 

424A.02 DEFINED BENEFIT RELIEF ASSOCIATIONS; SERVICE PENSIONS.Subd. 2a.Average amount of available financing. 
(a) Annually on or before August 1 as part of the certification of the financial requirements and minimum municipal obligation determined under section 424A.092, subdivision 4, or 424A.093, subdivision 5, as applicable, the secretary or some other official of the relief association designated in the bylaws of each defined benefit relief association shall calculate and certify to the governing body of the applicable municipality the average amount of available financing per active covered firefighter for the most recent three-year period. 

The amount of available financing includes any amounts of fire state aid and police and firefighter retirement supplemental state aid received or receivable by the relief association, any amounts of municipal contributions to the relief association raised from levies on real estate or from other available revenue sources exclusive of fire state aid, and one-tenth of the amount of assets in excess of the accrued liabilities of the relief association calculated under section 424A.092, subdivision 2; 424A.093, subdivisions 2 and 4; or 424A.094, subdivision 2, if any. 

(b) The maximum service pension which the defined benefit relief association has authority to provide for in its bylaws for payment to a member retiring after the calculation date when the minimum age and service requirements specified in subdivision 1 are met must be determined using the table in subdivision 2b or 2c, whichever applies. 

Subd. 2b.Maximum monthly amount. 
For a defined benefit relief association where the governing bylaws provide for a monthly service pension to a retiring member, the maximum monthly service pension amount per month for each year of service credited that may be provided for in the bylaws is the greater of the service pension amount provided for in the bylaws on the date of the calculation of the average amount of the available financing per active covered firefighter or the maximum service pension figure corresponding to the average amount of available financing per active covered firefighter: 

	Minimum Average Amount of AvailableFinancing per Firefighter	Maximum Service Pension Amount Payable per Month for Each Year of Service	
	$ ...		$ .25		
	41		.50		
	81		1.00		
	122		1.50		
	162		2.00		
	203		2.50		
	243		3.00		
	284		3.50		
	324		4.00		
	365		4.50		
	405		5.00		
	486		6.00		
	567		7.00		
	648		8.00		
	729		9.00		
	810		10.00		
	891		11.00		
	972		12.00		
	1053		13.00		
	1134		14.00		
	1215		15.00		
	1296		16.00		
	1377		17.00		
	1458		18.00		
	1539		19.00		
	1620		20.00		
	1701		21.00		
	1782		22.00		
	1823		22.50		
	1863		23.00		
	1944		24.00		
	2025		25.00		
	2106		26.00		
	2187		27.00		
	2268		28.00		
	2349		29.00		
	2430		30.00		
	2511		31.00		
	2592		32.00		
	2673		33.00		
	2754		34.00		
	2834		35.00		
	2916		36.00		
	2997		37.00		
	3078		38.00		
	3159		39.00		
	3240		40.00		
	3321		41.00		
	3402		42.00		
	3483		43.00		
	3564		44.00		
	3645		45.00		
	3726		46.00		
	3807		47.00		
	3888		48.00		
	3969		49.00		
	4050		50.00		
	4131		51.00		
	4212		52.00		
	4293		53.00		
	4374		54.00		
	4455		55.00		
	4536		56.00		
	4617		57.00		
	4698		58.00		
	4779		59.00		
	4860		60.00		
	4941		61.00		
	5022		62.00		
	5103		63.00		
	5184		64.00		
	5265		65.00		
	5346		66.00		
	5427		67.00		
	5508		68.00		
	5589		69.00		
	5670		70.00		
	5751		71.00		
	5832		72.00		
	5913		73.00		
	5994		74.00		
	6075		75.00		
	6156		76.00		
	6237		77.00		
	6318		78.00		
	6399		79.00		
	6480		80.00		
	6561		81.00		
	6642		82.00		
	6723		83.00		
	6804		84.00		
	6885		85.00		
	6966		86.00		
	7047		87.00		
	7128		88.00		
	7209		89.00		
	7290		90.00		
	7371		91.00		
	7452		92.00		
	7533		93.00		
	7614		94.00		
	7695		95.00		
	7776		96.00		
	7857		97.00		
	7938		98.00		
	8019		99.00		
	8100		100.00		
	any amount in excess of 				
	8100		100.00		
Subd. 2c.Maximum lump-sum amount. 
For a defined benefit relief association in which the governing bylaws provide for a lump-sum service pension to a retiring member, the maximum lump-sum service pension amount for each year of service credited that may be provided for in the bylaws is the greater of the service pension amount provided for in the bylaws on the date of the calculation of the average amount of the available financing per active covered firefighter or the maximum service pension figure corresponding to the average amount of available financing per active covered firefighter for the applicable specified period: 

	Minimum Average Amount of AvailableFinancing per Firefighter	Maximum Lump-Sum Service Pension Amount Payable for Each Year of Service	
	$ ...		$ 10		
	11		20		
	16		30		
	23		40		
	27		50		
	32		60		
	43		80		
	54		100		
	65		120		
	77		140		
	86		160		
	97		180		
	108		200		
	131		240		
	151		280		
	173		320		
	194		360		
	216		400		
	239		440		
	259		480		
	281		520		
	302		560		
	324		600		
	347		640		
	367		680		
	389		720		
	410		760		
	432		800		
	486		900		
	540		1000		
	594		1100		
	648		1200		
	702		1300		
	756		1400		
	810		1500		
	864		1600		
	918		1700		
	972		1800		
	1026		1900		
	1080		2000		
	1134		2100		
	1188		2200		
	1242		2300		
	1296		2400		
	1350		2500		
	1404		2600		
	1458		2700		
	1512		2800		
	1566		2900		
	1620		3000		
	1672		3100		
	1726		3200		
	1753		3250		
	1780		3300		
	1820		3375		
	1834		3400		
	1888		3500		
	1942		3600		
	1996		3700		
	2023		3750		
	2050		3800		
	2104		3900		
	2158		4000		
	2212		4100		
	2265		4200		
	2319		4300		
	2373		4400		
	2427		4500		
	2481		4600		
	2535		4700		
	2589		4800		
	2643		4900		
	2697		5000		
	2751		5100		
	2805		5200		
	2859		5300		
	2913		5400		
	2967		5500		
	3021		5600		
	3075		5700		
	3129		5800		
	3183		5900		
	3237		6000		
	3291		6100		
	3345		6200		
	3399		6300		
	3453		6400		
	3507		6500		
	3561		6600		
	3615		6700		
	3669		6800		
	3723		6900		
	3777		7000		
	3831		7100		
	3885		7200		
	3939		7300		
	3993		7400		
	4047		7500		
	4101		7600		
	4155		7700		
	4209		7800		
	4263		7900		
	4317		8000		
	4371		8100		
	4425		8200		
	4479		8300		
	4533		8400		
	4587		8500		
	4641		8600		
	4695		8700		
	4749		8800		
	4803		8900		
	4857		9000		
	4911		9100		
	4965		9200		
	5019		9300		
	5073		9400		
	5127		9500		
	5181		9600		
	5235		9700		
	5289		9800		
	5343		9900		
	5397		10,000		
	5451		10,100		
	5505		10,200		
	5559		10,300		
	5613		10,400		
	5667		10,500		
	5721		10,600		
	5775		10,700		
	5829		10,800		
	5883		10,900		
	5937		11,000		
	5991		11,100		
	6045		11,200		
	6099		11,300		
	6153		11,400		
	6207		11,500		
	6261		11,600		
	6315		11,700		
	6369		11,800		
	6423		11,900		
	6477		12,000		
	6531		12,100		
	6585		12,200		
	6639		12,300		
	6693		12,400		
	6747		12,500		
	6801		12,600		
	6855		12,700		
	6909		12,800		
	6963		12,900		
	7017		13,000		
	7071		13,100		
	7125		13,200		
	7179		13,300		
	7233		13,400		
	7287		13,500		
	7341		13,600		
	7395		13,700		
	7449		13,800		
	7503		13,900		
	7557		14,000		
	7611		14,100		
	7665		14,200		
	7719		14,300		
	7773		14,400		
	7827		14,500		
	7881		14,600		
	7935		14,700		
	7989		14,800		
	8043		14,900		
	8097		15,000		
	any amount in excess of				
	8097		15,000