HF 1077

2nd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; various statewide and local 
  1.3             pension plans; providing future PERA pension benefits 
  1.4             for privatized public hospital employees; providing an 
  1.5             ad hoc postretirement adjustment to Eveleth police and 
  1.6             fire trust fund benefit recipients; establishing an 
  1.7             additional postretirement adjustment for the Fairmont 
  1.8             police relief association; extending survivor benefit 
  1.9             provisions to include certain Fairmont police relief 
  1.10            association survivors; providing a special ad hoc 
  1.11            postretirement adjustment to certain retired St. Cloud 
  1.12            police officers; authorizing the purchase of credit 
  1.13            for certain periods of prior military service, 
  1.14            out-of-state public school teaching service, maternity 
  1.15            leaves, maternity breaks in employment, parochial and 
  1.16            private school teaching service, Peace Corps service, 
  1.17            VISTA service, and charter school teaching service; 
  1.18            authorizing service credit purchases by certain plan 
  1.19            members; authorizing the designation of a supplemental 
  1.20            needs trust as an optional annuity form beneficiary; 
  1.21            repealing the 30-year service maximum for monthly 
  1.22            benefit volunteer firefighter relief associations; 
  1.23            modifying governance provisions for the Minneapolis 
  1.24            fire department relief association and the Minneapolis 
  1.25            police relief association; permitting the purchase of 
  1.26            service credit by various school district employees; 
  1.27            amending Minnesota Statutes 1998, sections 354.66, 
  1.28            subdivision 5; 356.55, subdivisions 1 and 6; and 
  1.29            423B.07; Laws 1977, chapter 61, section 6, as amended; 
  1.30            proposing coding for new law in Minnesota Statutes, 
  1.31            chapters 354; 354A; and 356; proposing coding for new 
  1.32            law as Minnesota Statutes, chapter 353F; repealing 
  1.33            Minnesota Statutes 1998, section 424A.02, subdivision 
  1.34            5. 
  1.35  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.36                             ARTICLE 1
  1.37                  FUTURE PERA PENSION BENEFITS FOR 
  1.38                PRIVATIZED PUBLIC HOSPITAL EMPLOYEES 
  1.39     Section 1.  [353F.01] [PURPOSE AND INTENT.] 
  1.40     The purpose of this chapter is to ensure, to the extent 
  2.1   possible, that persons employed at public medical facilities who 
  2.2   are privatized and consequently are excluded from retirement 
  2.3   coverage by the public employees retirement association will be 
  2.4   entitled to receive future retirement benefits under the general 
  2.5   employees retirement plan of the public employees retirement 
  2.6   association commensurate with the prior contributions made by 
  2.7   them or made on their behalf upon the privatization of the 
  2.8   medical facility. 
  2.9      Sec. 2.  [353F.02] [DEFINITIONS.] 
  2.10     Subdivision 1.  [GENERALLY.] As used in this chapter, 
  2.11  unless the context clearly indicates otherwise, each of the 
  2.12  terms in the following subdivisions has the meaning indicated. 
  2.13     Subd. 2.  [ALLOWABLE SERVICE.] "Allowable service" has the 
  2.14  meaning provided in section 353.01, subdivision 16, of the 
  2.15  edition of Minnesota Statutes published in the year before the 
  2.16  year in which the privatization occurred. 
  2.17     Subd. 3.  [EFFECTIVE DATE.] "Effective date" means the date 
  2.18  that the operation of the medical facility is assumed by another 
  2.19  employer or the date that the medical facility is purchased by 
  2.20  another employer and active membership in the public employees 
  2.21  retirement association consequently terminates. 
  2.22     Subd. 4.  [MEDICAL FACILITY.] "Medical facility" means: 
  2.23     (1) the Glencoe area health center; 
  2.24     (2) the Luverne public hospital; and 
  2.25     (3) the Waconia-Ridgeview medical center. 
  2.26     Subd. 5.  [TERMINATED MEDICAL FACILITY 
  2.27  EMPLOYEE.] "Terminated medical facility employee" means a person 
  2.28  who: 
  2.29     (1) was employed on the day before the effective date by 
  2.30  the medical facility; or 
  2.31     (2) terminated employment with the medical facility on the 
  2.32  day before the effective date; and 
  2.33     (3) was a participant in the general employees retirement 
  2.34  plan of the public employees retirement association at the time 
  2.35  of termination of employment with the medical facility. 
  2.36     Subd. 6.  [YEARS OF ALLOWABLE SERVICE.] "Years of allowable 
  3.1   service" means the total number of years of allowable service 
  3.2   under section 353.01, subdivision 18, of the edition of 
  3.3   Minnesota Statutes published in the year before the year in 
  3.4   which the privatization occurred. 
  3.5      Sec. 3.  [353F.03] [VESTING RULE FOR CERTAIN EMPLOYEES.] 
  3.6      Notwithstanding any provision of chapter 353 to the 
  3.7   contrary, a terminated medical facility employee is eligible to 
  3.8   receive a retirement annuity under section 353.29 of the edition 
  3.9   of Minnesota Statutes published in the year before the year in 
  3.10  which the privatization occurred, without regard to the 
  3.11  requirement for three years of allowable service. 
  3.12     Sec. 4.  [353F.04] [AUGMENTATION INTEREST RATE FOR 
  3.13  TERMINATED MEDICAL FACILITY EMPLOYEES.] 
  3.14     The deferred annuity of a terminated medical facility 
  3.15  employee is subject to augmentation in accordance with section 
  3.16  353.71, subdivision 2, of the edition of Minnesota Statutes 
  3.17  published in the year in which the privatization occurred, 
  3.18  except that the rate of interest for this purpose is 5.5 percent 
  3.19  compounded annually until January 1 following the year in which 
  3.20  such person attains age 55.  From that date to the effective 
  3.21  date of retirement, the rate is 7.5 percent.  These increased 
  3.22  augmentation rates are no longer applicable for any time after 
  3.23  the terminated medical facility employee becomes covered again 
  3.24  by a retirement fund enumerated in section 356.30, subdivision 
  3.25  3.  These increased deferred annuity augmentation rates do not 
  3.26  apply to a terminated transferred medical facility employee who 
  3.27  begins receipt of a retirement annuity while employed by the 
  3.28  employer which assumed operations of the medical facility or 
  3.29  purchased the medical facility. 
  3.30     Sec. 5.  [353F.05] [AUTHORIZATION FOR ADDITIONAL ALLOWABLE 
  3.31  SERVICE FOR CERTAIN EARLY RETIREMENT PURPOSES.] 
  3.32     For the purpose of determining eligibility for early 
  3.33  retirement benefits provided under section 353.30, subdivision 
  3.34  1a, of the edition of Minnesota Statutes published in the year 
  3.35  before the year in which the privatization occurred, and 
  3.36  notwithstanding any provision of chapter 353 to the contrary, 
  4.1   the years of allowable service for a terminated medical facility 
  4.2   employee who transfers employment on the effective date and does 
  4.3   not apply for a refund of contributions under section 353.34, 
  4.4   subdivision 1, of the edition of Minnesota Statutes published in 
  4.5   the year before the year in which the privatization occurred, or 
  4.6   any similar provision, includes service with the successor 
  4.7   employer to the medical facility following the effective date.  
  4.8   The successor employer shall provide any reports that the 
  4.9   executive director of the public employees retirement 
  4.10  association may reasonably request to permit calculation of 
  4.11  benefits.  
  4.12     To be eligible for early retirement benefits under this 
  4.13  section, the individual must separate from service with the 
  4.14  successor employer to the medical facility.  The terminated 
  4.15  eligible individual, or an individual authorized to act on 
  4.16  behalf of that individual, may apply for an annuity following 
  4.17  application procedures under section 353.29, subdivision 4. 
  4.18     Sec. 6.  [353F.06] [APPLICATION OF REEMPLOYED ANNUITANT 
  4.19  EARNINGS LIMITATIONS.] 
  4.20     The reemployed annuitant earnings limitations of section 
  4.21  353.37 apply to any service by a terminated medical facility 
  4.22  employee as an employee of the successor employer to the medical 
  4.23  facility. 
  4.24     Sec. 7.  [353F.07] [EFFECT ON REFUND.] 
  4.25     Notwithstanding any provision of chapter 353 to the 
  4.26  contrary, terminated medical facility employees may receive a 
  4.27  refund of employee accumulated contributions plus interest at 
  4.28  the rate of six percent per year compounded annually in 
  4.29  accordance with section 353.34, subdivision 2, of the edition of 
  4.30  Minnesota Statutes published in the year in which the 
  4.31  privatization occurred, at any time after the transfer of 
  4.32  employment to the successor employer to the medical facility.  
  4.33  If a terminated medical facility employee has received a refund 
  4.34  from a pension plan enumerated in section 356.30, subdivision 3, 
  4.35  the person may not repay that refund unless the person again 
  4.36  becomes a member of one of those enumerated plans and complies 
  5.1   with section 356.30, subdivision 2. 
  5.2      Sec. 8.  [353F.08] [COUNSELING SERVICES.] 
  5.3      The medical facility and the executive director of the 
  5.4   public employees retirement association shall provide terminated 
  5.5   medical facility employees with counseling on their benefits 
  5.6   available under the general employees retirement plan of the 
  5.7   public employees retirement association during the 90 days 
  5.8   following privatization. 
  5.9      Sec. 9.  [EFFECTIVE DATE.] 
  5.10     Sections 1 to 8 are effective on the day following final 
  5.11  enactment. 
  5.12                             ARTICLE 2 
  5.13                 LOCAL POLICE AND PAID FIRE RELIEF 
  5.14                 ASSOCIATION BENEFIT MODIFICATIONS
  5.15     Section 1.  Laws 1977, chapter 61, section 6, as amended by 
  5.16  Laws 1981, chapter 68, section 39, and Laws 1998, chapter 390, 
  5.17  article 7, section 3, is amended to read: 
  5.18     Sec. 6.  [EVELETH RETIRED POLICE AND FIRE TRUST FUND; 
  5.19  FINANCIAL REQUIREMENTS OF THE TRUST FUND.] 
  5.20     (a) The city of Eveleth shall provide by annual levy amount 
  5.21  sufficient to pay an amount which when added to the investment 
  5.22  income of the trust fund is sufficient to pay the benefits 
  5.23  provided under the trust fund for the succeeding year as 
  5.24  certified by the board of trustees of the trust fund. 
  5.25     (b) If the city of Eveleth fails to contribute the amount 
  5.26  required in paragraph (a) in a given year, no postretirement 
  5.27  adjustment granted under Laws 1995, chapter 262, article 10, 
  5.28  section 1, or Laws 1997, chapter 241, article 2, section 19 is 
  5.29  payable in the following year. 
  5.30     Sec. 2.  [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 
  5.31  HOC POSTRETIREMENT ADJUSTMENT.] 
  5.32     In addition to the current pensions and other retirement 
  5.33  benefits payable, the pensions and retirement benefits payable 
  5.34  to retired police officers and firefighters and their surviving 
  5.35  spouses by the Eveleth police and fire trust fund are increased 
  5.36  by $100 a month.  Increases are retroactive to January 1, 1999. 
  6.1      Sec. 3.  [FAIRMONT POLICE RELIEF ASSOCIATION; ADDITIONAL 
  6.2   ANNUAL POSTRETIREMENT ADJUSTMENT.] 
  6.3      (a) If the requirement of paragraph (f) is met, every 
  6.4   recipient of a pension or benefit from the Fairmont police 
  6.5   relief association on June 30, annually, is entitled to receive 
  6.6   a postretirement adjustment as provided in this section in 
  6.7   addition to any pension or benefit increase by virtue of an 
  6.8   increase in the salary of active patrol officers in the city of 
  6.9   Fairmont on the following July 1. 
  6.10     (b) If the value of current assets of the relief 
  6.11  association is equal to at least 102 percent of the actuarial 
  6.12  accrued liability of the Fairmont police relief association as 
  6.13  of December 31 in the prior calendar year as calculated under 
  6.14  Minnesota Statutes, sections 356.215 and 356.216, one percent of 
  6.15  the value of current assets of the relief association is 
  6.16  available for the payment of the postretirement adjustment. 
  6.17     (c) The amount of the postretirement adjustment must be 
  6.18  calculated by the chief administrative officer of the relief 
  6.19  association.  The postretirement adjustment amount is payable 
  6.20  monthly.  The total amount of all service pensions, disability 
  6.21  pensions, and survivor benefits, without inclusion of any 
  6.22  postretirement adjustment paid previously under this section, 
  6.23  must be calculated and the percentage amount of each recipient's 
  6.24  annual pension or benefit of the total amount, expressed as four 
  6.25  digits beyond the decimal point, must be determined.  The 
  6.26  monthly postretirement adjustment payable to each pension or 
  6.27  benefit recipient is one-twelfth of the dollar amount determined 
  6.28  by applying each recipient's determined percentage of the total 
  6.29  amount of pensions and benefits to the total dollar amount 
  6.30  available for payment as a postretirement adjustment. 
  6.31     (d) The postretirement adjustment amount paid in any year 
  6.32  under this section does not compound and must not be added to 
  6.33  the pension base for the calculation of a subsequent 
  6.34  postretirement adjustment.  If a pension or benefit recipient 
  6.35  dies before the 12 monthly postretirement adjustments under this 
  6.36  section have been paid, the remaining monthly postretirement 
  7.1   adjustment payments cancel to the special fund of the relief 
  7.2   association.  Nothing in this section authorizes the payment of 
  7.3   the postretirement adjustment to an estate or to a person who 
  7.4   did not qualify for a postretirement adjustment in the person's 
  7.5   own right. 
  7.6      (e) The chief administrative officer of the relief 
  7.7   association will report the total amount of benefits paid under 
  7.8   this section to the executive director of the legislative 
  7.9   commission on pensions and retirement, the city clerk, and the 
  7.10  state auditor. 
  7.11     (f) Payment of the postretirement adjustment amount 
  7.12  provided under this section may be made in a given year only if 
  7.13  the average time-weighted total rate of return for the total 
  7.14  portfolio for the most recent five-year period exceeds by at 
  7.15  least two percent the actual average percent increase in the 
  7.16  current monthly salary of a first class patrol officer in the 
  7.17  most recent prior five fiscal years. 
  7.18     Sec. 4.  [FAIRMONT POLICE RELIEF ASSOCIATION; RETROACTIVITY 
  7.19  OF SURVIVING SPOUSE BENEFIT INCREASE.] 
  7.20     (a) The surviving spouse benefit amount under Laws 1963, 
  7.21  chapter 423, is payable to all surviving spouses receiving 
  7.22  benefits as of the date of the approval of this act. 
  7.23     (b) Any surviving spouse benefit increase under this 
  7.24  section is first payable on the first day of the month next 
  7.25  following the effective date of this section. 
  7.26     Sec. 5.  [FAIRMONT POLICE RELIEF ASSOCIATION; BYLAWS 
  7.27  AMENDMENTS REQUIRED.] 
  7.28     Sections 3 and 4 must be implemented by the appropriate 
  7.29  amendments to the bylaws of the Fairmont police relief 
  7.30  association. 
  7.31     Sec. 6.  [ST. CLOUD POLICE CONSOLIDATION ACCOUNT; SPECIAL 
  7.32  ONE-TIME POSTRETIREMENT ADJUSTMENT.] 
  7.33     (a) Notwithstanding any provision of general or special law 
  7.34  to the contrary, all service pensioners, disability pensioners, 
  7.35  and survivor benefit recipients of the St. Cloud police 
  7.36  consolidation account who had begun the receipt of pensions or 
  8.1   benefits before December 31, 1997, the effective date of the St. 
  8.2   Cloud police consolidation process under Minnesota Statutes, 
  8.3   chapter 353A, that began in April 1997, are entitled to receive 
  8.4   the pension or benefit increase granted under Laws 1997, chapter 
  8.5   233, article 1, section 72. 
  8.6      (b) The special one-time postretirement adjustment under 
  8.7   paragraph (a) is effective retroactive to January 1, 1998.  The 
  8.8   first payment of pensions and benefits next following the 
  8.9   effective date of this section must include any back payments of 
  8.10  the retroactive postretirement adjustment. 
  8.11     (c) Nothing in this section authorizes the payment of a 
  8.12  special postretirement adjustment to an estate. 
  8.13     Sec. 7.  [EFFECTIVE DATE.] 
  8.14     (a) Sections 1 and 2 are effective on approval by the 
  8.15  Eveleth city council and compliance with Minnesota Statutes, 
  8.16  section 645.021. 
  8.17     (b) Sections 3, 4, and 5 are effective on the day following 
  8.18  approval by the Fairmont city council and compliance with 
  8.19  Minnesota Statutes, section 645.021. 
  8.20     (c) Section 6 is effective on the day following approval by 
  8.21  the St. Cloud city council and compliance with Minnesota 
  8.22  Statutes, section 645.021. 
  8.23                             ARTICLE 3  
  8.24                      TEACHER RETIREMENT PLANS  
  8.25                   PRIOR SERVICE CREDIT PURCHASE  
  8.26                           AUTHORIZATION  
  8.27     Section 1.  [354.533] [PRIOR OR UNCREDITED MILITARY SERVICE 
  8.28  CREDIT PURCHASE.] 
  8.29     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
  8.30  teacher who has at least three years of allowable service credit 
  8.31  with the teachers retirement association and who performed 
  8.32  service in the United States armed forces before becoming a 
  8.33  teacher as defined in section 354.05, subdivision 2, or who 
  8.34  failed to obtain service credit for a military leave of absence 
  8.35  under the provisions of section 354.53, is entitled to purchase 
  8.36  allowable and formula service credit for the initial period of 
  9.1   enlistment, induction, or call to active duty without any 
  9.2   voluntary extension by making payment under section 356.55, 
  9.3   provided the teacher is not entitled to receive a current or 
  9.4   deferred retirement annuity from a United States armed forces 
  9.5   pension plan and has not purchased service credit from any other 
  9.6   defined benefit public employee pension plan for the same period 
  9.7   of service. 
  9.8      Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
  9.9   desires to purchase service credit under subdivision 1 must 
  9.10  apply with the executive director to make the purchase.  The 
  9.11  application must include all necessary documentation of the 
  9.12  teacher's qualifications to make the purchase, signed written 
  9.13  permission to allow the executive director to request and 
  9.14  receive necessary verification of applicable facts and 
  9.15  eligibility requirements, and any other relevant information 
  9.16  that the executive director may require.  Payment must be made 
  9.17  before the teacher's effective date of retirement.  
  9.18     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
  9.19  service credit for the purchase period must be granted by the 
  9.20  teachers retirement association to the purchasing teacher upon 
  9.21  receipt of the purchase payment amount. 
  9.22     Sec. 2.  [354.534] [PRIOR OUT-OF-STATE TEACHING SERVICE 
  9.23  CREDIT PURCHASE.] 
  9.24     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
  9.25  teacher who has at least three years of allowable service credit 
  9.26  with the teachers retirement association is entitled to purchase 
  9.27  up to ten years of allowable and formula service credit for 
  9.28  out-of-state teaching service by making payment under section 
  9.29  356.55, provided the out-of-state teaching service was performed 
  9.30  for an educational institution established and operated by 
  9.31  another state, governmental subdivision of another state, or the 
  9.32  federal government, and the teacher is not entitled to receive a 
  9.33  current or deferred age and service retirement annuity or 
  9.34  disability benefit and has not purchased service credit from 
  9.35  another defined benefit public employee pension plan for that 
  9.36  out-of-state teaching service. 
 10.1      Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 10.2   desires to purchase service credit under subdivision 1 must 
 10.3   apply with the executive director to make the purchase.  The 
 10.4   application must include all necessary documentation of the 
 10.5   teacher's qualifications to make the purchase, signed written 
 10.6   permission to allow the executive director to request and 
 10.7   receive necessary verification of applicable facts and 
 10.8   eligibility requirements, and any other relevant information 
 10.9   that the executive director may require.  Payment must be made 
 10.10  before the teacher's effective date of retirement.  
 10.11     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
 10.12  service credit for the purchase period must be granted by the 
 10.13  teachers retirement association to the purchasing teacher on 
 10.14  receipt of the purchase payment amount. 
 10.15     Sec. 3.  [354.535] [MATERNITY LEAVE OF ABSENCE AND BREAKS 
 10.16  IN SERVICE PURCHASES.] 
 10.17     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 10.18  teacher who has at least three years of allowable service credit 
 10.19  with the teachers retirement association and who was granted a 
 10.20  maternity leave of absence by a school district or other 
 10.21  employing unit covered by the teachers retirement association 
 10.22  for which the teacher did not previously receive allowable and 
 10.23  formula service credit, or who had a maternity break in teaching 
 10.24  service for which the teacher did not receive or purchase 
 10.25  service credit from another defined benefit public employee 
 10.26  pension plan, is entitled to purchase the actual period of the 
 10.27  leave or of the break in teaching service, up to five years, of 
 10.28  allowable and formula service credit for applicable maternity 
 10.29  leaves of absence or applicable maternity break in teaching 
 10.30  service periods by making payment under section 356.55. 
 10.31     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 10.32  desires to purchase service credit under subdivision 1 must 
 10.33  apply with the executive director to make the purchase.  The 
 10.34  application must include all necessary documentation of the 
 10.35  teacher's qualifications to make the purchase, signed written 
 10.36  permission to allow the executive director to request and 
 11.1   receive necessary verification of applicable facts and 
 11.2   eligibility requirements, and any other relevant information 
 11.3   that the executive director may require.  Payment must be made 
 11.4   before the teacher's effective date of retirement.  
 11.5      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
 11.6   service credit for the purchase period must be granted by the 
 11.7   teachers retirement association to the purchasing teacher on 
 11.8   receipt of the purchase payment amount. 
 11.9      Sec. 4.  [354.536] [PRIVATE OR PAROCHIAL TEACHING SERVICE 
 11.10  CREDIT PURCHASE.] 
 11.11     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 11.12  teacher who has at least three years of allowable service credit 
 11.13  with the teachers retirement association is entitled to purchase 
 11.14  up to ten years of allowable and formula service credit for 
 11.15  private or parochial school teaching service by making payment 
 11.16  under section 356.55, provided that the teacher is not entitled 
 11.17  to receive a current or deferred age and service retirement 
 11.18  annuity or disability benefit from the applicable 
 11.19  employer-sponsored pension plan and has not purchased service 
 11.20  credit from the applicable defined benefit employer sponsored 
 11.21  pension plan for that service. 
 11.22     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 11.23  desires to purchase service credit under subdivision 1 must 
 11.24  apply with the executive director to make the purchase.  The 
 11.25  application must include all necessary documentation of the 
 11.26  teacher's qualifications to make the purchase, signed written 
 11.27  permission to allow the executive director to request and 
 11.28  receive necessary verification of applicable facts and 
 11.29  eligibility requirements, and any other relevant information 
 11.30  that the executive director may require.  Payment must be made 
 11.31  before the teacher's effective date of retirement.  
 11.32     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
 11.33  service credit for the purchase period must be granted by the 
 11.34  teachers retirement association to the purchasing teacher on 
 11.35  receipt of the purchase payment amount. 
 11.36     Sec. 5.  [354.537] [PEACE CORPS OR VISTA SERVICE CREDIT 
 12.1   PURCHASE.] 
 12.2      Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 12.3   teacher who has at least three years of allowable service credit 
 12.4   with the teachers retirement association is entitled to purchase 
 12.5   up to ten years of allowable and formula service credit for 
 12.6   service rendered in the federal Peace Corps program or in the 
 12.7   federal Volunteers in Service to America program by making 
 12.8   payment under section 356.55, provided that the teacher has not 
 12.9   purchased service credit from any defined benefit pension plan 
 12.10  for that service. 
 12.11     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 12.12  desires to purchase service credit under subdivision 1 must 
 12.13  apply with the executive director to make the purchase.  The 
 12.14  application must include all necessary documentation of the 
 12.15  teacher's qualifications to make the purchase, signed written 
 12.16  permission to allow the executive director to request and 
 12.17  receive necessary verification of applicable facts and 
 12.18  eligibility requirements, and any other relevant information 
 12.19  that the executive director may require.  Payment must be made 
 12.20  before the teacher's effective date of retirement.  
 12.21     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
 12.22  service credit for the purchase period must be granted by the 
 12.23  teachers retirement association to the purchasing teacher on 
 12.24  receipt of the purchase payment amount. 
 12.25     Sec. 6.  [354.538] [CHARTER SCHOOL TEACHING SERVICE CREDIT 
 12.26  PURCHASE.] 
 12.27     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 12.28  teacher who has at least three years of allowable service credit 
 12.29  with the teachers retirement association is entitled to purchase 
 12.30  up to ten years of allowable and formula service credit for 
 12.31  charter school teaching service by making payment under section 
 12.32  356.55, provided that the teacher is not entitled to receive a 
 12.33  current or deferred age and service retirement annuity or 
 12.34  disability benefit from the applicable employer-sponsored 
 12.35  pension plan and has not purchased service credit from the 
 12.36  applicable defined benefit employer-sponsored pension plan for 
 13.1   that service. 
 13.2      Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 13.3   desires to purchase service credit under subdivision 1 must 
 13.4   apply with the executive director to make the purchase.  The 
 13.5   application must include all necessary documentation of the 
 13.6   teacher's qualifications to make the purchase, signed written 
 13.7   permission to allow the executive director to request and 
 13.8   receive necessary verification of applicable facts and 
 13.9   eligibility requirements, and any other relevant information 
 13.10  that the executive director may require.  Payment must be made 
 13.11  before the teacher's effective date of retirement.  
 13.12     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
 13.13  service credit for the purchase period must be granted by the 
 13.14  teachers retirement association to the purchasing teacher on 
 13.15  receipt of the purchase payment amount. 
 13.16     Sec. 7.  [354A.097] [PRIOR OR UNCREDITED MILITARY SERVICE 
 13.17  CREDIT PURCHASE.] 
 13.18     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 13.19  teacher who has at least three years of allowable service credit 
 13.20  with the teachers retirement fund association and who performed 
 13.21  service in the United States armed forces before becoming a 
 13.22  teacher as defined in section 354A.011, subdivision 27, or who 
 13.23  failed to obtain service credit for a military leave of absence 
 13.24  period under section 354A.093, is entitled to purchase allowable 
 13.25  service credit for the initial period of enlistment, induction, 
 13.26  or call to active duty without any voluntary extension by making 
 13.27  payment under section 356.55, provided the teacher is not 
 13.28  entitled to receive a current or deferred retirement annuity 
 13.29  from a United States armed forces pension plan and has not 
 13.30  purchased service credit from another defined benefit public 
 13.31  employee pension plan for the same period of service. 
 13.32     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 13.33  desires to purchase service credit under subdivision 1 must 
 13.34  apply with the executive director or secretary of the respective 
 13.35  teachers retirement fund association to make the purchase.  The 
 13.36  application must include all necessary documentation of the 
 14.1   teacher's qualifications to make the purchase, signed written 
 14.2   permission to allow the executive director or secretary to 
 14.3   request and receive necessary verification of applicable facts 
 14.4   and eligibility requirements, and any other relevant information 
 14.5   that the executive director or secretary may require.  Payment 
 14.6   must be made before the teacher's effective date of retirement.  
 14.7      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 14.8   for the purchase period must be granted by the applicable 
 14.9   teachers retirement fund association to the purchasing teacher 
 14.10  on receipt of the purchase payment amount. 
 14.11     Sec. 8.  [354A.098] [PRIOR OUT-OF-STATE TEACHING SERVICE 
 14.12  CREDIT PURCHASE.] 
 14.13     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 14.14  teacher who has at least three years of allowable service credit 
 14.15  with one of the retirement fund associations under this chapter 
 14.16  and who rendered out-of-state teaching service for an 
 14.17  educational institution established and operated by another 
 14.18  state, governmental subdivision of another state, or the federal 
 14.19  government, is entitled to purchase up to ten years of allowable 
 14.20  service credit for that out-of-state service by making payment 
 14.21  under section 356.55, provided the teacher is not entitled to 
 14.22  receive a current or deferred age and service retirement annuity 
 14.23  or disability benefit and has not purchased service credit from 
 14.24  another defined benefit public employee pension plan for that 
 14.25  out-of-state teaching service. 
 14.26     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 14.27  desires to purchase service credit under subdivision 1 must 
 14.28  apply with the executive director or secretary of the respective 
 14.29  teachers retirement fund association to make the purchase.  The 
 14.30  application must include all necessary documentation of the 
 14.31  teachers's qualifications to make the purchase, signed written 
 14.32  permission to allow the executive director or secretary to 
 14.33  request and receive necessary verification of applicable facts 
 14.34  and eligibility requirements, and any other relevant information 
 14.35  that the executive director or secretary may require.  Payment 
 14.36  must be made before the teacher's effective date of retirement.  
 15.1      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 15.2   for the purchase period must be granted by the applicable 
 15.3   teachers retirement fund association to the purchasing teacher 
 15.4   on receipt of the purchase payment amount. 
 15.5      Sec. 9.  [354A.099] [MATERNITY BREAK IN SERVICE OR LEAVE 
 15.6   SERVICE CREDIT PURCHASE.] 
 15.7      Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 15.8   teacher who has at least three years of allowable service credit 
 15.9   with the teachers retirement fund association and who was 
 15.10  granted a maternity leave of absence by a school district or 
 15.11  other employing unit covered by the teachers retirement 
 15.12  association for which the teacher did not previously receive 
 15.13  allowable service credit or who had a maternity break in 
 15.14  teaching service for which the teacher did not receive or 
 15.15  purchase service credit from another defined benefit public 
 15.16  employee pension plan is entitled to purchase the actual period 
 15.17  of the leave or of the break in teaching service, up to five 
 15.18  years, of allowable service credit for applicable maternity 
 15.19  leaves of absence or applicable maternity break in teaching 
 15.20  service periods by making payment under section 356.55. 
 15.21     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 15.22  desires to purchase service credit under subdivision 1 must 
 15.23  apply with the executive director or secretary of the respective 
 15.24  retirement fund association to make the purchase.  The 
 15.25  application must include all necessary documentation of the 
 15.26  teacher's qualifications to make the purchase, signed written 
 15.27  permission to allow the executive director or secretary to 
 15.28  request and receive any necessary verification of applicable 
 15.29  facts and eligibility requirements, and any other relevant 
 15.30  information that the executive director or secretary may require.
 15.31  Payment must be made before the teacher's effective date of 
 15.32  retirement.  
 15.33     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 15.34  for the purchase period must be granted by the applicable 
 15.35  teachers retirement fund association to the purchasing teacher 
 15.36  on receipt of the purchase payment amount. 
 16.1      Sec. 10.  [354A.101] [PRIVATE OR PAROCHIAL TEACHING SERVICE 
 16.2   CREDIT PURCHASE.] 
 16.3      Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 16.4   teacher who has at least three years of allowable service credit 
 16.5   with the teachers retirement fund association is entitled to 
 16.6   purchase up to ten years of allowable service credit for private 
 16.7   or parochial school teaching service by making payment under 
 16.8   section 356.55, provided that the teacher is not entitled to 
 16.9   receive a current or deferred age and service retirement annuity 
 16.10  or disability benefit from the applicable employer-sponsored 
 16.11  pension plan and has not purchased service credit from the 
 16.12  applicable defined benefit employer sponsored pension plan for 
 16.13  that service. 
 16.14     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 16.15  desires to purchase service credit under subdivision 1 must 
 16.16  apply with the executive director to make the purchase.  The 
 16.17  application must include all necessary documentation of the 
 16.18  teacher's qualifications to make the purchase, signed written 
 16.19  permission to allow the executive director to request and 
 16.20  receive necessary verification of applicable facts and 
 16.21  eligibility requirements, and any other relevant information 
 16.22  that the executive director may require.  Payment must be made 
 16.23  before the teacher's effective date of retirement.  
 16.24     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 16.25  for the purchase period must be granted by the teachers 
 16.26  retirement fund association to the purchasing teacher on receipt 
 16.27  of the purchase payment amount. 
 16.28     Sec. 11.  [354A.102] [PEACE CORPS OR VISTA SERVICE CREDIT 
 16.29  PURCHASE.] 
 16.30     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 16.31  teacher who has at least three years of allowable service credit 
 16.32  with the teachers retirement fund association is entitled to 
 16.33  purchase up to ten years of allowable service credit for service 
 16.34  rendered in the federal Peace Corps program or in the federal 
 16.35  Volunteers in Service to America program by making payment under 
 16.36  section 356.55, provided that the teacher has not purchased 
 17.1   service credit from any defined benefit pension plan for that 
 17.2   service. 
 17.3      Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 17.4   desires to purchase service credit under subdivision 1 must 
 17.5   apply with the executive director to make the purchase.  The 
 17.6   application must include all necessary documentation of the 
 17.7   teacher's qualifications to make the purchase, signed written 
 17.8   permission to allow the executive director to request and 
 17.9   receive necessary verification of applicable facts and 
 17.10  eligibility requirements, and any other relevant information 
 17.11  that the executive director may require.  Payment must be made 
 17.12  before the teacher's effective date of retirement.  
 17.13     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 17.14  for the purchase period must be granted by the teachers 
 17.15  retirement fund association to the purchasing teacher on receipt 
 17.16  of the purchase payment amount. 
 17.17     Sec. 12.  [354A.103] [CHARTER SCHOOL TEACHING SERVICE 
 17.18  CREDIT PURCHASE.] 
 17.19     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 17.20  teacher who has at least three years of allowable service credit 
 17.21  with the teachers retirement fund association is entitled to 
 17.22  purchase up to ten years of allowable service credit for charter 
 17.23  school teaching service by making payment under section 356.55, 
 17.24  provided that the teacher is not entitled to receive a current 
 17.25  or deferred age and service retirement annuity or disability 
 17.26  benefit from the applicable employer-sponsored pension plan and 
 17.27  has not purchased service credit from the applicable defined 
 17.28  benefit employer-sponsored pension plan for that service. 
 17.29     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 17.30  desires to purchase service credit under subdivision 1 must 
 17.31  apply with the executive director to make the purchase.  The 
 17.32  application must include all necessary documentation of the 
 17.33  teacher's qualifications to make the purchase, signed written 
 17.34  permission to allow the executive director to request and 
 17.35  receive necessary verification of applicable facts and 
 17.36  eligibility requirements, and any other relevant information 
 18.1   that the executive director may require.  Payment must be made 
 18.2   before the teacher's effective date of retirement.  
 18.3      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 18.4   for the purchase period must be granted by the teachers 
 18.5   retirement fund association to the purchasing teacher on receipt 
 18.6   of the purchase payment amount. 
 18.7      Sec. 13.  Minnesota Statutes 1998, section 356.55, 
 18.8   subdivision 1, is amended to read: 
 18.9      Subdivision 1.  [APPLICATION.] Unless the prior service 
 18.10  credit purchase authorization special law or general statute 
 18.11  provision explicitly specifies a different purchase payment 
 18.12  amount determination procedure, this section governs the 
 18.13  determination of the prior service credit purchase payment 
 18.14  amount of any prior service credit purchase.  The purchase 
 18.15  payment amount determination procedure must recognize any 
 18.16  service credit accrued to the purchaser in a pension plan listed 
 18.17  in section 356.30, subdivision 3.  Any service credit in a 
 18.18  Minnesota defined benefit public employee pension plan available 
 18.19  to be reinstated by the purchaser through the repayment of a 
 18.20  refund of member or employee contributions previously received 
 18.21  must be repaid in full before any purchase of prior service 
 18.22  credit payment is made under this section. 
 18.23     Sec. 14.  Minnesota Statutes 1998, section 356.55, 
 18.24  subdivision 6, is amended to read: 
 18.25     Subd. 6.  [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a) 
 18.26  As part of the regular data reporting to the consulting actuary 
 18.27  retained by the legislative commission on pensions and 
 18.28  retirement annually, the chief administrative officer of each 
 18.29  public pension plan that has accepted a prior service credit 
 18.30  purchase payment under this section shall report for any 
 18.31  purchase, the purchaser, the purchaser's employer, the age of 
 18.32  the purchaser, the period of the purchase, the purchaser's 
 18.33  prepurchase accrued service credit, the purchaser's postpurchase 
 18.34  accrued service credit, the purchaser's prior service credit 
 18.35  payment, the prior service credit payment made by the 
 18.36  purchaser's employer, and the amount of the additional benefit 
 19.1   or annuity purchased. 
 19.2      (b) As part of a supplemental report to the regular annual 
 19.3   actuarial valuation for the applicable public pension plan 
 19.4   prepared by the consulting actuary retained by the legislative 
 19.5   commission on pensions and retirement, there must be an exhibit 
 19.6   comparing a comparison for each purchase showing the total prior 
 19.7   service credit payment received from all sources and the 
 19.8   increased public pension plan actuarial accrued liability 
 19.9   resulting from each purchase. 
 19.10     Sec. 15.  [REPEALER.] 
 19.11     Sections 1 to 12 are repealed on May 16, 2002. 
 19.12     Sec. 16.  [INSTRUCTION TO REVISOR.] 
 19.13     The revisor of statutes shall replace the current headnote 
 19.14  for Minnesota Statutes, section 354.53, with the headnote 
 19.15  "CREDIT FOR MILITARY SERVICE LEAVE OF ABSENCE." 
 19.16     Sec. 17.  [EFFECTIVE DATE.] 
 19.17     (a) Sections 1 to 14 and 16 are effective May 16, 1999.  
 19.18  Section 15 is effective August 1, 1999. 
 19.19     (b) A teacher who retires on or before May 16, 1999, is not 
 19.20  eligible to purchase service credit under the provisions of this 
 19.21  article.  A teacher who has rendered teaching service after May 
 19.22  16, 1999, and who has filed an application for retirement that 
 19.23  is effective on or before July 1, 1999, may purchase service 
 19.24  credit under this article on or before September 1, 1999, 
 19.25  notwithstanding that the person is not a teacher rendering 
 19.26  active teaching service on the date of the payment.  Payment 
 19.27  must be received on or before September 1, 1999.  If this 
 19.28  payment is received on or after the effective date of 
 19.29  retirement, the increased benefit resulting from the purchase is 
 19.30  effective on the first day of the month following the month 
 19.31  during which payment is received. 
 19.32                             ARTICLE 4
 19.33             INDIVIDUAL AND SMALL GROUP PENSION CHANGES
 19.34     Section 1.  [PURCHASE OF SERVICE CREDIT; PRIOR ST. PAUL 
 19.35  BUREAU OF HEALTH EMPLOYEE.] 
 19.36     (a) An eligible person, as described in paragraph (b), is 
 20.1   entitled to purchase coordinated service credit in the public 
 20.2   employees retirement association general plan for the period of 
 20.3   employment described in paragraph (b), clause (2), by making 
 20.4   payment as specified in paragraph (c). 
 20.5      (b) An eligible person is a person who: 
 20.6      (1) was born on May 22, 1932; 
 20.7      (2) was employed by the St. Paul bureau of health from 
 20.8   March 17, 1958, to September 21, 1962, was covered by the St. 
 20.9   Paul bureau of health relief association as a result of that 
 20.10  employment, and who forfeited all service credit in that relief 
 20.11  association upon leaving that employment; and 
 20.12     (3) later became a coordinated member of the general plan 
 20.13  of the public employees retirement association and currently is 
 20.14  a coordinated member of that plan. 
 20.15     (c) An eligible person described in paragraph (b) may 
 20.16  purchase service credit from the public employees retirement 
 20.17  association by paying the amount specified in Minnesota 
 20.18  Statutes, section 356.55, prior to termination of public 
 20.19  employees retirement association covered employment or prior to 
 20.20  January 1, 2000, whichever is earlier.  If the city of St. Paul 
 20.21  agrees to make a payment under Minnesota Statutes, section 
 20.22  356.55, subdivision 5, an eligible person must make the employee 
 20.23  payments prior to termination of public employees retirement 
 20.24  association covered employment or prior to July 1, 2000, 
 20.25  whichever is earlier.  If the employee payment is made in a 
 20.26  timely fashion, the city payment must be remitted 60 days 
 20.27  thereafter. 
 20.28     (d) An eligible person must provide any relevant 
 20.29  documentation required by the executive director to determine 
 20.30  eligibility for the prior service credit under this section. 
 20.31     (e) Service credit for the purchase period must be granted 
 20.32  by the public employees retirement association to the account of 
 20.33  the eligible person upon receipt of the purchase payment amount 
 20.34  specified in paragraph (c). 
 20.35     Sec. 2.  [INDEPENDENT SCHOOL DISTRICT NO. 276, MINNETONKA, 
 20.36  TEACHER; PRIOR SERVICE CREDIT PURCHASE.] 
 21.1      (a) Notwithstanding Minnesota Statutes, section 354.095, an 
 21.2   eligible person described in paragraph (b) is entitled to 
 21.3   purchase allowable and formula service credit in the teachers 
 21.4   retirement association for the period described in paragraph (c) 
 21.5   by paying the amount specified in Minnesota Statutes, section 
 21.6   356.55, subdivision 2. 
 21.7      (b) An eligible person is a person who: 
 21.8      (1) was on medical leave for a period that includes the 
 21.9   1994-1995 and the 1995-1996 school years; 
 21.10     (2) was employed by independent school district No. 276, 
 21.11  Minnetonka, during the period that the medical leave was taken; 
 21.12  and 
 21.13     (3) due to the failure of independent school district No. 
 21.14  276, Minnetonka, to file certain papers with the teachers 
 21.15  retirement association, was not able to obtain service credit 
 21.16  for the 1994-1995 and 1995-1996 school year portions of the 
 21.17  medical leave. 
 21.18     (c) The period for service credit purchase is the 1994-1995 
 21.19  and 1995-1996 school years. 
 21.20     (d) Notwithstanding Minnesota Statutes, section 356.55, 
 21.21  subdivision 5, the eligible person must pay, on or before 
 21.22  September 1, 1999, an amount equal to the employee, employer, 
 21.23  and employer additional contribution rates in effect during the 
 21.24  prior service period applied to the actual salary rates in 
 21.25  effect during the prior service period, plus annual compound 
 21.26  interest at the rate of 8.5 percent from the date on which the 
 21.27  contributions would have been made if made contemporaneous with 
 21.28  the service period to the date on which the payment is actually 
 21.29  made.  Independent school district No. 276, Minnetonka, must pay 
 21.30  one-half of the remaining balance of the prior service credit 
 21.31  purchase payment amount calculated under Minnesota Statutes, 
 21.32  section 356.55, within 30 days of the payment by the eligible 
 21.33  person.  Recognizing that the teachers retirement association 
 21.34  failed to provide adequate information on the opportunity of the 
 21.35  eligible person to make timely payments for the 1995-1996 school 
 21.36  year following receipt of the medical leave of absence forms on 
 22.1   August 16, 1996, the teachers retirement association is 
 22.2   responsible for one-half of the remaining balance of the prior 
 22.3   service credit purchase payment amount calculated under 
 22.4   Minnesota Statutes, section 356.55.  The executive director of 
 22.5   the teachers retirement association must notify the 
 22.6   superintendent of independent school district No. 276, 
 22.7   Minnetonka, of its payment amount and payment due date if the 
 22.8   eligible person makes the required payment. 
 22.9      (e) If independent school district No. 276, Minnetonka, 
 22.10  fails to pay its portion of the required prior service credit 
 22.11  purchase payment amount, the executive director may notify the 
 22.12  commissioner of finance of that fact and the commissioner of 
 22.13  finance may order that the required school district payment be 
 22.14  deducted from the next subsequent payment or payments of state 
 22.15  education aid to the school district and be transmitted to the 
 22.16  teachers retirement association.  
 22.17     Sec. 3.  [HOPKINS SCHOOL DISTRICT; REPAYMENT OF INTEREST 
 22.18  CHARGE ON CERTAIN MEMBER CONTRIBUTION SHORTAGE PAYMENTS.] 
 22.19     (a) Independent school district No. 270, Hopkins, shall pay 
 22.20  the amount of $1,004.08, plus compound interest on each amount 
 22.21  at the annual rate of six percent from June 1, 1997, to the date 
 22.22  of payment, to an eligible person described in paragraph (b) to 
 22.23  compensate the person for a past overcharge in a member 
 22.24  contribution shortage payment.  The shortage was caused by the 
 22.25  failure of the school district to make the required member 
 22.26  contribution deductions during the 1968-1969 school year and the 
 22.27  overpayment was caused by the failure of the teachers retirement 
 22.28  association to notify the eligible person in a timely fashion of 
 22.29  the shortage. 
 22.30     (b) An eligible person is a person who: 
 22.31     (1) was employed by independent school district No. 270, 
 22.32  Hopkins, during the 1968-1969 school year and suffered an under 
 22.33  deduction by the school district of $114.66; 
 22.34     (2) took a member contribution refund in the early 1970's 
 22.35  and repaid the refund in November 1974; and 
 22.36     (3) had an appeal denied by the teachers retirement 
 23.1   association board of trustees at a May 8, 1998, hearing, 
 23.2   reflected in a May 21, 1998, findings and final order. 
 23.3      (c) The payments must be made within 30 days of the 
 23.4   effective date.  If independent school district No. 270, 
 23.5   Hopkins, fails to make a timely payment of its obligation, the 
 23.6   teacher retirement association must make the payment and may 
 23.7   notify the commissioner of finance of the school district's 
 23.8   failure to pay.  In that event, the commissioner of finance may 
 23.9   order that the required school district payment be deducted from 
 23.10  the next subsequent payment of state education aid to the school 
 23.11  district and transmitted to the teachers retirement association. 
 23.12     Sec. 4.  [TEACHERS RETIREMENT ASSOCIATION; PURCHASE OF 
 23.13  SERVICE CREDIT FOR CERTAIN SABBATICAL LEAVES.] 
 23.14     (a) Notwithstanding any provision of Minnesota Statutes, 
 23.15  chapter 354, to the contrary, an eligible teacher as defined in 
 23.16  paragraph (b) is entitled to purchase allowable and formula 
 23.17  service credit from the teachers retirement association for the 
 23.18  uncredited portion of a sabbatical leave during the 1976-1977 
 23.19  school year under paragraph (c). 
 23.20     (b) An eligible teacher is a person who was born on 
 23.21  September 10, 1942, became a member of the teachers retirement 
 23.22  association on October 31, 1968, is employed by independent 
 23.23  school district No. 16, Spring Lake Park, and will qualify for 
 23.24  an early normal retirement annuity under the "rule of 90" on 
 23.25  September 16, 2000. 
 23.26     (c) Notwithstanding Minnesota Statutes, section 356.55, 
 23.27  subdivision 5, the eligible person may pay, before January 1, 
 23.28  2000, or the date of retirement, whichever is earlier, an amount 
 23.29  equal to the employee contribution rate or rates in effect 
 23.30  during the prior service period applied to the actual salary 
 23.31  rates in effect during the prior service period, plus annual 
 23.32  compound interest at the rate of 8.5 percent from the date on 
 23.33  which the contributions would have been made if made 
 23.34  contemporaneous with the service period to the date on which the 
 23.35  payment is actually made.  Independent school district No. 16, 
 23.36  Spring Lake Park, must pay the balance of the prior service 
 24.1   credit purchase payment amount calculated under Minnesota 
 24.2   Statutes, section 356.55, within 30 days of the payment by the 
 24.3   eligible person.  The executive director of the teachers 
 24.4   retirement association must notify the superintendent of 
 24.5   independent school district No. 16, Spring Lake Park, of its 
 24.6   payment amount and payment due date if the eligible person makes 
 24.7   the required payment. 
 24.8      (d) If independent school district No. 16, Spring Lake 
 24.9   Park, fails to pay its portion of the required prior service 
 24.10  credit purchase payment amount, the executive director may 
 24.11  notify the commissioner of finance of that fact and the 
 24.12  commissioner of finance may order that the required employer 
 24.13  payment be deducted from the next subsequent payment or payments 
 24.14  of state education aid to the school district and be transmitted 
 24.15  to the teachers retirement association. 
 24.16     (e) An eligible teacher must provide any relevant 
 24.17  documentation required by the executive director to determine 
 24.18  eligibility for the prior service credit under this section. 
 24.19     (f) Service credit for the purchase period must be granted 
 24.20  by the teachers retirement association to the account of the 
 24.21  eligible teacher upon receipt of the purchase payment amount 
 24.22  specified in paragraph (c). 
 24.23     Sec. 5.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; STATE 
 24.24  BOARD OF PUBLIC DEFENSE EMPLOYEE PRIOR SERVICE CREDIT PURCHASE.] 
 24.25     (a) An eligible person described in paragraph (b) is 
 24.26  entitled to purchase service credit from the public employees 
 24.27  retirement association for the period of omitted deductions 
 24.28  December 19, 1992, through December 27, 1994. 
 24.29     (b) An eligible person for purposes of paragraph (a) is a 
 24.30  person who: 
 24.31     (1) was born on August 17, 1950; 
 24.32     (2) was employed through Winona county until 1992; 
 24.33     (3) is currently employed by the state board of public 
 24.34  defense in the third judicial district public defender's office; 
 24.35  and 
 24.36     (4) had omitted member contributions for public employment 
 25.1   during the period December 19, 1992, through December 27, 1994. 
 25.2      (c) The prior service credit purchase payment amount is 
 25.3   governed by Minnesota Statutes, section 356.55.  Authority to 
 25.4   purchase the service credit expires on July 1, 2000. 
 25.5      (d) Notwithstanding Minnesota Statutes, section 356.55, 
 25.6   subdivision 5, the eligible person must pay, on or before 
 25.7   September 1, 1999, an amount equal to the employee contribution 
 25.8   rate in effect during the prior service period applied to the 
 25.9   actual salary rates in effect during the prior service period, 
 25.10  plus annual compound interest at the rate of 8.5 percent from 
 25.11  the date on which the contributions would have been made if made 
 25.12  contemporaneous with the service period to the date on which the 
 25.13  payment is actually made.  The state board of public defense 
 25.14  must pay the balance of the prior service credit purchase 
 25.15  payment amount calculated under Minnesota Statutes, section 
 25.16  356.55, within 30 days of the payment by the eligible person. 
 25.17     (e) A person purchasing service credit under this section 
 25.18  must provide sufficient documentation of eligibility to the 
 25.19  executive director of the public employees retirement 
 25.20  association. 
 25.21     Sec. 6.  [TRA; PURCHASE OF SERVICE CREDIT FOR FINAL PORTION 
 25.22  OF EXTENDED LEAVE OF ABSENCE BY ANOKA-HENNEPIN TEACHER.] 
 25.23     (a) An eligible person, as described in paragraph (b), is 
 25.24  entitled to purchase allowable and formula service credit in the 
 25.25  teachers retirement association for the period specified in 
 25.26  paragraph (c) by making the payment specified in Minnesota 
 25.27  Statutes, section 356.55. 
 25.28     (b) An eligible person is a person who: 
 25.29     (1) was born on February 1, 1943; 
 25.30     (2) was initially employed as a teacher by the Richfield 
 25.31  school district in 1966; 
 25.32     (3) is currently employed as an elementary school principal 
 25.33  by independent school district No. 11, Anoka-Hennepin; and 
 25.34     (4) was on an extended leave of absence from June 29, 1984, 
 25.35  to June 28, 1989, but failed to obtain service credit for the 
 25.36  final two years of the leave. 
 26.1      (c) The prior service credit purchase period is July 1, 
 26.2   1987, through June 28, 1989. 
 26.3      Sec. 7.  [EFFECTIVE DATE.] 
 26.4      Sections 1 to 6 are effective on the day following final 
 26.5   enactment. 
 26.6                              ARTICLE 5  
 26.7                INCLUSION OF SUPPLEMENTAL NEEDS TRUSTS 
 26.8                 AS OPTIONAL ANNUITY FORM RECIPIENTS 
 26.9      Section 1.  [356.372] [SUPPLEMENTAL NEEDS TRUST AS OPTIONAL 
 26.10  ANNUITY FORM RECIPIENT.] 
 26.11     Subdivision 1.  [INCLUSION AS RECIPIENT.] Notwithstanding 
 26.12  any provision to the contrary of the laws, articles of 
 26.13  incorporation, or bylaws governing a covered retirement plan 
 26.14  specified in subdivision 3, a retiring member may designate a 
 26.15  qualified supplemental needs trust under subdivision 2 as the 
 26.16  remainder recipient on an optional retirement annuity form for a 
 26.17  period not to exceed the lifetime of the beneficiary of the 
 26.18  supplemental needs trust. 
 26.19     Subd. 2.  [QUALIFIED SUPPLEMENTAL NEEDS TRUST.] A qualified 
 26.20  supplemental needs trust is a trust that: 
 26.21     (1) was established on or after July 1, 1992; 
 26.22     (2) was established solely for the benefit of one person 
 26.23  who has a disability under Social Security Administration 
 26.24  supplemental security income or retirement, survivors, and 
 26.25  disability insurance disability determination standards who was 
 26.26  determined as such before the creation of the trust; 
 26.27     (3) is funded, in whole or in part, by the primary 
 26.28  recipient of the optional annuity form and, unless the trust is 
 26.29  a Zebley trust, is not funded by the beneficiary, the 
 26.30  beneficiary's spouse, or a person who is required to pay a sum 
 26.31  to or for the trust beneficiary under the terms of litigation or 
 26.32  a litigation settlement; 
 26.33     (4) is established to cover reasonable living expenses and 
 26.34  other basic needs of the disabilitant, in whole or in part, in 
 26.35  instances when public assistance does not provide sufficiently 
 26.36  for these needs; 
 27.1      (5) is not permitted to make disbursement to replace or 
 27.2   reduce public assistance otherwise available; 
 27.3      (6) is irrevocable; 
 27.4      (7) terminates upon the death of the disabled person for 
 27.5   whose benefit it was established; and 
 27.6      (8) is determined by the executive director to be a trust 
 27.7   that contains excluded assets for purposes of the qualification 
 27.8   for public entitlement benefits under the applicable federal and 
 27.9   state laws and regulations. 
 27.10     Subd. 3.  [COVERED RETIREMENT PLAN.] The provisions of this 
 27.11  section apply to the following retirement plans: 
 27.12     (1) general state employees retirement plan of the 
 27.13  Minnesota state retirement system, established under chapter 
 27.14  352; 
 27.15     (2) correctional employees retirement plan of the Minnesota 
 27.16  state retirement system, established under chapter 352; 
 27.17     (3) state patrol retirement plan, established under chapter 
 27.18  352B; 
 27.19     (4) legislators retirement plan, established under chapter 
 27.20  3A; 
 27.21     (5) judges retirement plan, established under chapter 490; 
 27.22     (6) public employees retirement plan, established under 
 27.23  chapter 353; 
 27.24     (7) public employees police and fire plan, established 
 27.25  under chapter 353; 
 27.26     (8) teachers retirement plan, established under chapter 
 27.27  354; 
 27.28     (9) Duluth teachers retirement fund association, 
 27.29  established under chapter 354A; 
 27.30     (10) St. Paul teachers retirement fund association, 
 27.31  established under chapter 354A; 
 27.32     (11) Minneapolis teachers retirement fund association, 
 27.33  established under chapter 354A; 
 27.34     (12) Minneapolis employees retirement plan, established 
 27.35  under chapter 422A; 
 27.36     (13) Minneapolis firefighters relief association, 
 28.1   established under chapter 69; and 
 28.2      (14) Minneapolis police relief association, established 
 28.3   under chapter 423B. 
 28.4      Sec. 2.  [EFFECTIVE DATE.] 
 28.5      Section 1 is effective on the day following final enactment.
 28.6                              ARTICLE 6 
 28.7              VOLUNTEER FIRE RELIEF ASSOCIATION CHANGES 
 28.8      Section 1.  [REPEALER.] 
 28.9      Minnesota Statutes 1998, section 424A.02, subdivision 5, is 
 28.10  repealed. 
 28.11     Sec. 2.  [EFFECTIVE DATE.] 
 28.12     Section 1 is effective July 1, 1999. 
 28.13                             ARTICLE 7  
 28.14               MINNEAPOLIS POLICE AND FIRE DEPARTMENT  
 28.15                   RELIEF ASSOCIATIONS GOVERNANCE  
 28.16                              CHANGES 
 28.17     Section 1.  Minnesota Statutes 1998, section 423B.07, is 
 28.18  amended to read: 
 28.19     423B.07 [AUTHORIZED FUND DISBURSEMENTS.] 
 28.20     The police pension fund may be used only for the payment of:
 28.21     (1) service, disability, or dependency pensions; 
 28.22     (2) notwithstanding a contrary provision of section 69.80, 
 28.23  the salary of the secretary of the association in an amount not 
 28.24  to exceed 30 percent of the base salary of a first grade patrol 
 28.25  officer, the salary of the president of the association in an 
 28.26  amount not to exceed ten percent of the base salary of a first 
 28.27  grade patrol officer, and the salaries of the other elected 
 28.28  members of the board of trustees in an amount not to exceed 
 28.29  three units; 
 28.30     (3) expenses of officers and employees of the association 
 28.31  in connection with the protection of the fund; 
 28.32     (4) expenses of operating and maintaining the association, 
 28.33  including the administrative expenses related to the 
 28.34  administration of the insurance plan authorized in section 
 28.35  423B.08; and 
 28.36     (5) other expenses authorized by section 69.80, or other 
 29.1   applicable law. 
 29.2      Sec. 2.  [CONTINUATION OF BOARD.] 
 29.3      Notwithstanding Minnesota Statutes, section 423A.01, 
 29.4   subdivision 2, or any other law to the contrary, the board of 
 29.5   trustees of the Minneapolis firefighters relief association 
 29.6   shall continue to govern the association until there are fewer 
 29.7   than 100 benefit recipients of the relief association pension 
 29.8   fund.  The special fund thereafter must become a trust fund in 
 29.9   accordance with Minnesota Statutes, section 423A.01, subdivision 
 29.10  2. 
 29.11     Sec. 3.  [EFFECTIVE DATE.] 
 29.12     (a) Section 1 is effective on December 31, 1999. 
 29.13     (b) Section 2 is effective on the day following approval by 
 29.14  the Minneapolis city council and compliance with Minnesota 
 29.15  Statutes, section 645.021, subdivision 3. 
 29.16                             ARTICLE 8 
 29.17                    VARIOUS SMALL GROUP PENSION  
 29.18                              CHANGES 
 29.19     Section 1.  Minnesota Statutes 1998, section 354.66, 
 29.20  subdivision 5, is amended to read: 
 29.21     Subd. 5.  [OTHER MEMBERSHIP PRECLUDED.] A teacher entitled 
 29.22  to full accrual of allowable service credit and employee 
 29.23  contributions for part time teaching service pursuant to this 
 29.24  section shall not be entitled during the same period of time to 
 29.25  be a member of, accrue allowable service credit in or make 
 29.26  employee contributions to any other Minnesota public employee 
 29.27  pension plan, except the plan established in chapter 3A or a 
 29.28  volunteer firefighters' relief association governed by sections 
 29.29  69.771 to 69.776. 
 29.30     Sec. 2.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PURCHASE 
 29.31  OF SERVICE CREDIT BY RUSH CITY SCHOOL DISTRICT EMPLOYEE.] 
 29.32     (a) Notwithstanding Minnesota Statutes, section 353.01, 
 29.33  subdivision 16, or any other law to the contrary, an eligible 
 29.34  person described in paragraph (b) may purchase service credit in 
 29.35  the public employees retirement association for the period 
 29.36  described in paragraph (c). 
 30.1      (b) An eligible person is a person who: 
 30.2      (1) was born on October 28, 1948; 
 30.3      (2) was first employed by the Rush City school district in 
 30.4   September 1968; 
 30.5      (3) has received service credit from the public employees 
 30.6   retirement association for a period of leave for military 
 30.7   service from April 1969 through March 1970; and 
 30.8      (4) has not received service credit from the public 
 30.9   employees retirement association for a period of leave for 
 30.10  military service from April 1970 through March 1971. 
 30.11     (c) The period for service credit purchase is the 
 30.12  uncredited portion of the period from April 1970 through March 
 30.13  1971. 
 30.14     (d) An eligible person may purchase service credit under 
 30.15  this section by making the payment determined under Minnesota 
 30.16  Statutes, section 356.55, for the period in paragraph (c). 
 30.17     (e) The person who desires to purchase service credit under 
 30.18  this section must apply with the executive director to make the 
 30.19  purchase.  The application must include all necessary 
 30.20  documentation of the person's qualifications to make the 
 30.21  purchase, signed written permission to allow the executive 
 30.22  director to request and receive necessary verification of 
 30.23  applicable facts and eligibility requirements, and any other 
 30.24  relevant information that the executive director may require. 
 30.25     (f) Service credit for the purchase period must be granted 
 30.26  by the public employees retirement association to the purchaser 
 30.27  on receipt of the purchase payment amount. 
 30.28     Sec. 3.  [TEACHERS RETIREMENT ASSOCIATION; PURCHASE OF 
 30.29  SERVICE CREDIT BY INDEPENDENT SCHOOL DISTRICT NO. 786, 
 30.30  BERTHA-HEWITT, TEACHER FOR UNCREDITED LEAVE.] 
 30.31     (a) An eligible teacher as defined in paragraph (b) is 
 30.32  entitled to purchase allowable and formula service credit from 
 30.33  the teachers retirement association for an uncredited leave 
 30.34  during the 1996-1997 school year under terms specified in 
 30.35  paragraph (c). 
 30.36     (b) An eligible teacher is a person who: 
 31.1      (1) was born on November 14, 1944; 
 31.2      (2) became a member of the teachers retirement association 
 31.3   on September 29, 1972; 
 31.4      (3) is employed by independent school district No. 786, 
 31.5   Bertha-Hewitt; and 
 31.6      (4) failed to obtain one year of service credit due to 
 31.7   classification of a 1996-1997 school year leave as an "other" 
 31.8   leave rather than an extended leave. 
 31.9      (c) Notwithstanding Minnesota Statutes, section 356.55, 
 31.10  subdivision 5, the eligible person may pay, before January 1, 
 31.11  2000, or the date of retirement, whichever is earlier, an amount 
 31.12  equal to the employee contribution rate or rates in effect 
 31.13  during the leave period specified in paragraph (b) applied to 
 31.14  the actual salary rate or rates in effect during that period, 
 31.15  plus any applicable employer contributions the employee agreed 
 31.16  to pay under an agreement with independent school district No. 
 31.17  786, Bertha-Hewitt, plus annual compound interest at the rate of 
 31.18  8.5 percent from June 30, 1997, to the date on which the payment 
 31.19  is actually made.  Independent school district No. 786, 
 31.20  Bertha-Hewitt, must pay the remaining balance of the prior 
 31.21  service credit purchase payment amount calculated under 
 31.22  Minnesota Statutes, section 356.55, within 30 days of the 
 31.23  payment by the eligible person.  The executive director of the 
 31.24  teachers retirement association must notify the superintendent 
 31.25  of independent school district No. 786, Bertha-Hewitt, of its 
 31.26  payment amount and payment due date if the eligible person makes 
 31.27  the required payment. 
 31.28     (d) If independent school district No. 786, Bertha-Hewitt, 
 31.29  fails to pay its portion of the required prior service credit 
 31.30  purchase payment amount, the executive director may notify the 
 31.31  commissioner of finance of that fact and the commissioner of 
 31.32  finance may order that the required employer payment be deducted 
 31.33  from the next subsequent payment or payments of state education 
 31.34  aid to the school district and be transmitted to the teachers 
 31.35  retirement association. 
 31.36     (e) An eligible teacher must provide any relevant 
 32.1   documentation required by the executive director to determine 
 32.2   eligibility for the prior service credit under this section. 
 32.3      (f) Service credit for the purchase period must be granted 
 32.4   by the teachers retirement association to the account of the 
 32.5   eligible teacher upon receipt of the purchase payment amount 
 32.6   specified in paragraph (c). 
 32.7      Sec. 4.  [TEACHERS RETIREMENT ASSOCIATION; PURCHASE OF 
 32.8   UNREQUESTED LEAVE PERIOD BY VIRGINIA TEACHER.] 
 32.9      (a) A qualified teacher described in paragraph (b) is 
 32.10  entitled to purchase one year of allowable and formula service 
 32.11  credit from the teachers retirement association for a one-year 
 32.12  portion of the period of unrequested leave from teaching service 
 32.13  specified in paragraph (b), clause (5), upon the payment of the 
 32.14  purchase price specified in paragraph (c). 
 32.15     (b) A qualified teacher is a person who: 
 32.16     (1) was born in 1943; 
 32.17     (2) is a current member of the teachers retirement 
 32.18  association; 
 32.19     (3) initially was employed as a teacher in 1966 by the 
 32.20  Alexandria school district; 
 32.21     (4) was subsequently employed as an industrial arts teacher 
 32.22  at the Virginia high school by the Virginia school district; and 
 32.23     (5) was placed on unrequested leave by the Virginia school 
 32.24  district for the 1983-1984 and 1984-1985 school years. 
 32.25     (c) The purchase payment amount must be determined as 
 32.26  provided in Minnesota Statutes, section 356.55. 
 32.27     (d) Payment of the prior service credit purchase amount 
 32.28  must be made by January 1, 2000.  
 32.29     Sec. 5.  [EFFECTIVE DATE.] 
 32.30     Sections 2 to 4 are effective on the day following final 
 32.31  enactment.