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Minnesota Legislature

Office of the Revisor of Statutes

HF 1462

1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/05/2001
1st Engrossment Posted on 04/09/2001

Current Version - 1st Engrossment

  1.1                          A bill for an act 
  1.2             relating to retirement; various statewide and local 
  1.3             retirement plans and programs; clarifying the 
  1.4             application of the open meeting law to local 
  1.5             retirement plans; including certain American Indian 
  1.6             tribal governments in police state aid; extending 
  1.7             disability coverage to certain privatized university 
  1.8             hospital and other public employees; authorizing 
  1.9             voluntary employee benefit associations; authorizing 
  1.10            various generalized and specific service credit 
  1.11            purchases; excluding certain trades personnel from the 
  1.12            public employees retirement association; including 
  1.13            certain Dakota county agricultural society employees 
  1.14            in the public employees retirement association; 
  1.15            authorizing mail-in elections and referenda for the 
  1.16            Minneapolis police relief association; modifying 
  1.17            restrictions on supplemental retirement plans; 
  1.18            clarifying membership for certain faculty collective 
  1.19            bargaining representatives; requiring bonding or 
  1.20            insurance by certain volunteer fire relief association 
  1.21            financial consultants; providing a postretirement 
  1.22            adjustment to certain Eveleth police and paid fire 
  1.23            trust fund retirees; appropriating money; amending 
  1.24            Minnesota Statutes 2000, sections 13D.01, subdivision 
  1.25            1; 69.011, subdivision 1; 352.01, subdivision 11; 
  1.26            352B.01, subdivision 3; 353.01, subdivisions 2a, 2b, 
  1.27            6, 16; 354.41, subdivision 4; 354.534, subdivision 1; 
  1.28            354.536, subdivision 1; 354.539; 354A.098, subdivision 
  1.29            1; 354A.101, subdivision 1; 354A.106; 356.24, 
  1.30            subdivision 1; 356.55, subdivision 7; 356A.08, 
  1.31            subdivision 1; 422A.155; 423B.01, by adding a 
  1.32            subdivision; 423B.05, by adding subdivisions; 424A.04, 
  1.33            by adding a subdivision; proposing coding for new law 
  1.34            in Minnesota Statutes, chapters 352; 352F; 353F; 354; 
  1.35            354A; 354B; 356; 383D; repealing Minnesota Statutes 
  1.36            2000, section 354.41, subdivision 9. 
  1.37  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.38                             ARTICLE 1 
  1.39      OPEN MEETING REQUIREMENT FOR LOCAL PUBLIC PENSION PLANS
  1.40     Section 1.  Minnesota Statutes 2000, section 13D.01, 
  1.41  subdivision 1, is amended to read: 
  2.1      Subdivision 1.  [IN EXECUTIVE BRANCH, LOCAL GOVERNMENT.] 
  2.2   All meetings, including executive sessions, must be open to the 
  2.3   public 
  2.4      (a) of a state 
  2.5      (1) agency, 
  2.6      (2) board, 
  2.7      (3) commission, or 
  2.8      (4) department, 
  2.9   when required or permitted by law to transact public business in 
  2.10  a meeting; and 
  2.11     (b) of the governing body of a 
  2.12     (1) school district however organized, 
  2.13     (2) unorganized territory, 
  2.14     (3) county, 
  2.15     (4) statutory or home rule charter city, 
  2.16     (5) town, or 
  2.17     (6) other public body; and 
  2.18     (c) of any 
  2.19     (1) committee, 
  2.20     (2) subcommittee, 
  2.21     (3) board, 
  2.22     (4) department, or 
  2.23     (5) commission, 
  2.24  of a public body; and 
  2.25     (d) of the governing body or a committee of: 
  2.26     (1) a statewide public pension plan defined in section 
  2.27  356A.01, subdivision 24; or 
  2.28     (2) a local public pension plan governed by section 69.77, 
  2.29  sections 69.771 to 69.775, or chapter 354A, 422A, or 423B. 
  2.30     Sec. 2.  Minnesota Statutes 2000, section 356A.08, 
  2.31  subdivision 1, is amended to read: 
  2.32     Subdivision 1.  [PUBLIC MEETINGS.] A meeting of the 
  2.33  governing board of a covered statewide pension plan or of a 
  2.34  committee of the governing board of the statewide covered 
  2.35  pension plan is governed by chapter 13D. 
  2.36     Sec. 3.  [EFFECTIVE DATE.] 
  3.1      Sections 1 and 2 are effective the day following final 
  3.2   enactment. 
  3.3                              ARTICLE 2
  3.4                     POLICE STATE AID AMENDMENTS
  3.5      Section 1.  Minnesota Statutes 2000, section 69.011, 
  3.6   subdivision 1, is amended to read: 
  3.7      Subdivision 1.  [DEFINITIONS.] Unless the language or 
  3.8   context clearly indicates that a different meaning is intended, 
  3.9   the following words and terms shall for the purposes of this 
  3.10  chapter and chapters 423, 423A, 424 and 424A have the meanings 
  3.11  ascribed to them: 
  3.12     (a) "Commissioner" means the commissioner of revenue. 
  3.13     (b) "Municipality" means any: 
  3.14     (1) a home rule charter or statutory city,; 
  3.15     (2) an organized town or; 
  3.16     (3) a park district subject to chapter 398,; 
  3.17     (4) the University of Minnesota, and,; 
  3.18     (5) for purposes of the fire state aid program only, an 
  3.19  American Indian tribal government entity located within a 
  3.20  federally recognized American Indian reservation, and,; 
  3.21     (6) for purposes of the police state aid program only, an 
  3.22  American Indian tribal government with a tribal police 
  3.23  department which exercises state arrest powers under section 
  3.24  626.90, 626.91, 626.92, or 626.93; 
  3.25     (7) for purposes of the police state aid program only, the 
  3.26  metropolitan airports commission, with respect to peace officers 
  3.27  covered under chapter 422A, or; and 
  3.28     (8) for purposes of the police state aid program only, the 
  3.29  department of natural resources and the department of public 
  3.30  safety with respect to peace officers covered under chapter 352B.
  3.31     (c) "Minnesota Firetown Premium Report" means a form 
  3.32  prescribed by the commissioner containing space for reporting by 
  3.33  insurers of fire, lightning, sprinkler leakage and extended 
  3.34  coverage premiums received upon risks located or to be performed 
  3.35  in this state less return premiums and dividends. 
  3.36     (d) "Firetown" means the area serviced by any municipality 
  4.1   having a qualified fire department or a qualified incorporated 
  4.2   fire department having a subsidiary volunteer firefighters' 
  4.3   relief association. 
  4.4      (e) "Market value" means latest available market value of 
  4.5   all property in a taxing jurisdiction, whether the property is 
  4.6   subject to taxation, or exempt from ad valorem taxation obtained 
  4.7   from information which appears on abstracts filed with the 
  4.8   commissioner of revenue or equalized by the state board of 
  4.9   equalization. 
  4.10     (f) "Minnesota Aid to Police Premium Report" means a form 
  4.11  prescribed by the commissioner for reporting by each fire and 
  4.12  casualty insurer of all premiums received upon direct business 
  4.13  received by it in this state, or by its agents for it, in cash 
  4.14  or otherwise, during the preceding calendar year, with reference 
  4.15  to insurance written for insuring against the perils contained 
  4.16  in auto insurance coverages as reported in the Minnesota 
  4.17  business schedule of the annual financial statement which each 
  4.18  insurer is required to file with the commissioner in accordance 
  4.19  with the governing laws or rules less return premiums and 
  4.20  dividends. 
  4.21     (g) "Peace officer" means any person: 
  4.22     (1) whose primary source of income derived from wages is 
  4.23  from direct employment by a municipality or county as a law 
  4.24  enforcement officer on a full-time basis of not less than 30 
  4.25  hours per week; 
  4.26     (2) who has been employed for a minimum of six months prior 
  4.27  to December 31 preceding the date of the current year's 
  4.28  certification under subdivision 2, clause (b); 
  4.29     (3) who is sworn to enforce the general criminal laws of 
  4.30  the state and local ordinances; 
  4.31     (4) who is licensed by the peace officers standards and 
  4.32  training board and is authorized to arrest with a warrant; and 
  4.33     (5) who is a member of a local police relief association to 
  4.34  which section 69.77 applies, the state patrol retirement plan, 
  4.35  the public employees police and fire fund, or the Minneapolis 
  4.36  employees retirement fund. 
  5.1      (h) "Full-time equivalent number of peace officers 
  5.2   providing contract service" means the integral or fractional 
  5.3   number of peace officers which would be necessary to provide the 
  5.4   contract service if all peace officers providing service were 
  5.5   employed on a full-time basis as defined by the employing unit 
  5.6   and the municipality receiving the contract service. 
  5.7      (i) "Retirement benefits other than a service pension"  
  5.8   means any disbursement authorized under section 424A.05, 
  5.9   subdivision 3, clauses (2), (3), and (4).  
  5.10     (j) "Municipal clerk, municipal clerk-treasurer, or county 
  5.11  auditor" means the person who was elected or appointed to the 
  5.12  specified position or, in the absence of the person, another 
  5.13  person who is designated by the applicable governing body.  In a 
  5.14  park district, the clerk is the secretary of the board of park 
  5.15  district commissioners.  In the case of the University of 
  5.16  Minnesota, the clerk is that official designated by the board of 
  5.17  regents.  For the metropolitan airports commission, the clerk is 
  5.18  the person designated by the commission.  For the department of 
  5.19  natural resources or the department of public safety, the clerk 
  5.20  is the respective commissioner.  For a tribal police department 
  5.21  which exercises state arrest powers under section 626.90, 
  5.22  626.91, 626.92, or 626.93, the clerk is the person designated by 
  5.23  the applicable American Indian tribal government. 
  5.24     Sec. 2. [EFFECTIVE DATE.] 
  5.25     Section 1 is effective the day following final enactment. 
  5.26                             ARTICLE 3
  5.27           POSTRETIREMENT HEALTH CARE INSURANCE COVERAGE
  5.28     Section 1.  [352.98] [POSTRETIREMENT HEALTH CARE SAVINGS 
  5.29  PLAN.] 
  5.30     Subdivision 1.  [PLAN CREATED.] The Minnesota state 
  5.31  retirement system shall establish a plan or plans, known as 
  5.32  postretirement health care savings plans, through which public 
  5.33  employers and employees may save to cover postretirement health 
  5.34  care costs.  The Minnesota state retirement system shall make 
  5.35  available one or more trusts authorized under the Internal 
  5.36  Revenue Code to be eligible for tax-preferred or tax-free 
  6.1   treatment through which employers and employees can save to 
  6.2   cover postretirement health care costs. 
  6.3      Subd. 2.  [CONTRACTING AUTHORIZED.] The Minnesota state 
  6.4   retirement system is authorized to administer the plan and to 
  6.5   contract with public and private entities to provide investment 
  6.6   services, recordkeeping, benefit payments, and other functions 
  6.7   necessary for the administration of the plan.  If allowed by the 
  6.8   Minnesota state board of investment, the Minnesota state board 
  6.9   of investment supplemental investment funds may be offered as 
  6.10  investment options under the postretirement savings plan or 
  6.11  plans. 
  6.12     Subd. 3.  [CONTRIBUTIONS.] (a) Contributions to the plan 
  6.13  shall be determined through a personnel policy or in a 
  6.14  collective bargaining agreement of a public employer with the 
  6.15  exclusive representative of the covered employees in an 
  6.16  appropriate unit.  The Minnesota state retirement system may 
  6.17  offer different types of trusts permitted under the Internal 
  6.18  Revenue Code to best meet the needs of different employee units. 
  6.19     (b) Contributions to the plan by or on behalf of the 
  6.20  employee shall be held in trust for reimbursement of employee 
  6.21  and dependent health-related expenses following retirement from 
  6.22  public employment.  The Minnesota state retirement system shall 
  6.23  maintain a separate account of the contributions made by or on 
  6.24  behalf of each participant and the earnings thereon.  The 
  6.25  Minnesota state retirement system shall make available a limited 
  6.26  range of investment options, and each employee may direct the 
  6.27  investment of the accumulations in the employee's account among 
  6.28  the investment options made available by the Minnesota state 
  6.29  retirement system.  At the request of a participating employer 
  6.30  and employee group, the Minnesota state retirement system may 
  6.31  determine how the assets of the affected employer and employee 
  6.32  group should be invested. 
  6.33     Subd. 4.  [REIMBURSEMENT FOR HEALTH-RELATED EXPENSES.] 
  6.34  Following termination of public service, the Minnesota state 
  6.35  retirement system shall reimburse employees at least quarterly 
  6.36  for submitted health-related expenses, until the employee 
  7.1   exhausts the accumulation in the employee's account.  If an 
  7.2   employee dies prior to exhausting the employee's account 
  7.3   balance, the employee's spouse or dependents shall be eligible 
  7.4   to be reimbursed for health care expenses from the account until 
  7.5   the account balance is exhausted.  If an account balance remains 
  7.6   after the death of a participant and all of the participant's 
  7.7   legal dependents, the remainder of the account shall be paid to 
  7.8   the employee's beneficiaries or, if none, to the employee's 
  7.9   estate. 
  7.10     Subd. 5.  [FEES.] The Minnesota state retirement plan is 
  7.11  authorized to charge uniform fees to participants to cover the 
  7.12  ongoing cost of operating the plan.  Any fees not needed shall 
  7.13  revert to participant accounts or be used to reduce plan fees 
  7.14  the following year. 
  7.15     Subd. 6.  [ADVISORY COMMITTEE.] (a) The Minnesota state 
  7.16  retirement system shall establish a participant advisory 
  7.17  committee for the plan, made up of one representative appointed 
  7.18  by each employee unit participating in the plan.  Each 
  7.19  participating unit shall be responsible for the expenses of its 
  7.20  own representative. 
  7.21     (b) The advisory committee shall meet at least twice per 
  7.22  year and shall be consulted on plan offerings and vendor 
  7.23  selection.  By October 1 of each year, the Minnesota state 
  7.24  retirement system shall give the advisory committee a statement 
  7.25  of fees collected and the use of the fees. 
  7.26     Subd. 7.  [CONTRACTING WITH PRIVATE ENTITIES.] Nothing in 
  7.27  this section shall prohibit employers from contracting with 
  7.28  private entities to provide for postretirement health care 
  7.29  reimbursement plans. 
  7.30     Sec. 2.  Minnesota Statutes 2000, section 356.24, 
  7.31  subdivision 1, is amended to read: 
  7.32     Subdivision 1.  [RESTRICTION; EXCEPTIONS.] It is unlawful 
  7.33  for a school district or other governmental subdivision or state 
  7.34  agency to levy taxes for, or contribute public funds to a 
  7.35  supplemental pension or deferred compensation plan that is 
  7.36  established, maintained, and operated in addition to a primary 
  8.1   pension program for the benefit of the governmental subdivision 
  8.2   employees other than: 
  8.3      (1) to a supplemental pension plan that was established, 
  8.4   maintained, and operated before May 6, 1971; 
  8.5      (2) to a plan that provides solely for group health, 
  8.6   hospital, disability, or death benefits; 
  8.7      (3) to the individual retirement account plan established 
  8.8   by chapter 354B; 
  8.9      (4) to a plan that provides solely for severance pay under 
  8.10  section 465.72 to a retiring or terminating employee; 
  8.11     (5) for employees other than personnel employed by the 
  8.12  state university board or the community college board and 
  8.13  covered by the board of trustees of the Minnesota state colleges 
  8.14  and universities supplemental retirement plan under chapter 
  8.15  354C, if provided for in a personnel policy of the public 
  8.16  employer or in the collective bargaining agreement between the 
  8.17  public employer and the exclusive representative of public 
  8.18  employees in an appropriate unit, in an amount matching employee 
  8.19  contributions on a dollar for dollar basis, but not to exceed an 
  8.20  employer contribution of $2,000 a year per employee; 
  8.21     (i) to the state of Minnesota deferred compensation plan 
  8.22  under section 352.96; or 
  8.23     (ii) in payment of the applicable portion of the 
  8.24  contribution made to any investment eligible under section 
  8.25  403(b) of the Internal Revenue Code, if the employing unit has 
  8.26  complied with any applicable pension plan provisions of the 
  8.27  Internal Revenue Code with respect to the tax-sheltered annuity 
  8.28  program during the preceding calendar year; or 
  8.29     (6) for personnel employed by the state university board or 
  8.30  the community college board and not covered by clause (5), to 
  8.31  the supplemental retirement plan under chapter 354C, if provided 
  8.32  for in a personnel policy or in the collective bargaining 
  8.33  agreement of the public employer with the exclusive 
  8.34  representative of the covered employees in an appropriate unit, 
  8.35  in an amount matching employee contributions on a dollar for 
  8.36  dollar basis, but not to exceed an employer contribution of 
  9.1   $2,700 a year for each employee; or 
  9.2      (7) to a supplemental plan to save for postretirement 
  9.3   health care expenses qualified for tax-preferred treatment under 
  9.4   the Internal Revenue Code, if provided for in a personnel policy 
  9.5   or in the collective bargaining agreement of a public employer 
  9.6   with the exclusive representative of the covered employees in an 
  9.7   appropriate unit. 
  9.8      Sec. 3.  [APPROPRIATION.] 
  9.9      $75,000 is appropriated to the Minnesota state retirement 
  9.10  system from the general fund to cover the costs of establishing 
  9.11  the plan created in section 1.  Any amount not needed shall 
  9.12  revert to the general fund on June 30, 2003. 
  9.13                             ARTICLE 4
  9.14           PRIVATIZED PUBLIC EMPLOYEE DISABILITY COVERAGE
  9.15     Section 1.  [352F.051] [CONTINUATION OF DISABILITY 
  9.16  COVERAGE.] 
  9.17     Subdivision 1.  [ELIGIBILITY.] A terminated hospital 
  9.18  employee who is totally and permanently disabled under section 
  9.19  352.01, subdivision 17, and who had a medically documented 
  9.20  preexisting condition of the disability before January 1, 1997, 
  9.21  may apply under Minnesota Statutes 1996, section 352.113, 
  9.22  subdivision 1, for a disability benefit. 
  9.23     Subd. 2.  [CALCULATION OF BENEFITS.] A person qualifying 
  9.24  under subdivision 1 is entitled to receive a disability benefit 
  9.25  calculated under Minnesota Statutes 1996, section 352.113, 
  9.26  subdivision 3.  The disability benefit must be augmented under 
  9.27  section 352.72, subdivision 2, from January 1, 1997, to the date 
  9.28  on which the disability benefit begins to accrue. 
  9.29     Subd. 3.  [APPLICABILITY OF GENERAL LAW.] Except as 
  9.30  otherwise provided, section 352.113 applies to a person who 
  9.31  qualifies for disability under subdivision 1. 
  9.32     Sec. 2.  [353F.051] [CONTINUATION OF DISABILITY COVERAGE.] 
  9.33     Subdivision 1.  [ELIGIBILITY.] A terminated medical 
  9.34  facility or other public employing unit employee who is totally 
  9.35  and permanently disabled under Minnesota Statutes 1998, section 
  9.36  353.01, subdivision 19, and who had a medically documented 
 10.1   preexisting condition of the disability before the termination 
 10.2   of coverage, may apply for a disability benefit. 
 10.3      Subd. 2.  [CALCULATION OF BENEFITS.] A person qualifying 
 10.4   under subdivision 1 is entitled to receive a disability benefit 
 10.5   calculated under Minnesota Statutes 1998, section 353.33, 
 10.6   subdivision 3.  The disability benefit must be augmented under 
 10.7   Minnesota Statutes 1998, section 353.71, subdivision 2, from the 
 10.8   date of termination to the date the disability benefit begins to 
 10.9   accrue. 
 10.10     Subd. 3.  [APPLICABILITY OF GENERAL LAW.] Except as 
 10.11  otherwise provided, Minnesota Statutes 1998, section 353.33, 
 10.12  applies to a person who qualifies for disability under 
 10.13  subdivision 1. 
 10.14     Sec. 3.  [EFFECTIVE DATE.] 
 10.15     (a) Sections 1 and 2 are effective the day following final 
 10.16  enactment. 
 10.17     (b) A disability benefit under section 1 is payable 
 10.18  retroactively to March 1, 2000, or to the first of the month 
 10.19  next following the date on which the eligible person attempted 
 10.20  to apply for a disability benefit from the general state 
 10.21  employees retirement plan of the Minnesota state retirement 
 10.22  system, whichever is later. 
 10.23                             ARTICLE 5
 10.24                 PERA-GENERAL MEMBERSHIP INCLUSIONS
 10.25     Section 1.  Minnesota Statutes 2000, section 353.01, 
 10.26  subdivision 2a, is amended to read: 
 10.27     Subd. 2a.  [INCLUDED EMPLOYEES.] Public employees whose 
 10.28  salary from one governmental subdivision exceeds $425 in any 
 10.29  month shall participate as members of the association.  If the 
 10.30  salary of an employee is less than $425 in a subsequent month, 
 10.31  the employee retains membership eligibility.  The following 
 10.32  persons are considered public employees: 
 10.33     (1) employees whose annual salary from one governmental 
 10.34  subdivision exceeds a stipulation prepared in advance, in 
 10.35  writing, to be not more than $5,100 per calendar year or per 
 10.36  school year for school employees for employment expected to be 
 11.1   of a full year's duration or more than the prorated portion of 
 11.2   $5,100 per employment period expected to be of less than a full 
 11.3   year's duration.  If compensation from one governmental 
 11.4   subdivision to an employee under this clause exceeds $5,100 per 
 11.5   calendar year or school year after being stipulated in advance 
 11.6   not to exceed that amount, the stipulation is no longer valid 
 11.7   and contributions must be made on behalf of the employee under 
 11.8   section 353.27, subdivision 12, from the month in which the 
 11.9   employee's salary first exceeded $425; 
 11.10     (2) employees whose total salary from concurrent 
 11.11  nontemporary positions in one governmental subdivision exceeds 
 11.12  $425 in any month; 
 11.13     (3) elected officers for service to which they were elected 
 11.14  by the public-at-large, or persons appointed to fill a vacancy 
 11.15  in an elective office, who elect to participate by filing an 
 11.16  application for membership, but not for service on a joint or 
 11.17  regional board that is a governmental subdivision under 
 11.18  subdivision 6, paragraph (a), unless the salary earned for that 
 11.19  service exceeds $425 in any month.  The option to become a 
 11.20  member, once exercised, may not be withdrawn during the 
 11.21  incumbency of the person in office; 
 11.22     (4) members who are appointed by the governor to be a state 
 11.23  department head and elect not to be covered by the Minnesota 
 11.24  state retirement system under section 352.021; 
 11.25     (5) employees of elected officers; 
 11.26     (6) persons who elect to remain members under section 
 11.27  480.181, subdivision 2; 
 11.28     (7) employees of a school district who receive separate 
 11.29  salaries for driving their own buses; 
 11.30     (8) employees of the Minnesota association of townships 
 11.31  when the board of the association, at its option, certifies to 
 11.32  the executive director that its employees are to be included for 
 11.33  purposes of retirement coverage, in which case coverage of all 
 11.34  employees of the association is permanent; 
 11.35     (9) employees of a county historical society who are county 
 11.36  employees; 
 12.1      (10) employees of a county historical society located in 
 12.2   the county whom the county, at its option, certifies to the 
 12.3   executive director to be county employees for purposes of 
 12.4   retirement coverage under this chapter, which status must be 
 12.5   accorded to all similarly situated county historical society 
 12.6   employees and, once established, must continue as long as a 
 12.7   person is an employee of the county historical society and is 
 12.8   not excluded under subdivision 2b; and 
 12.9      (11) employees who became members before July 1, 1988, 
 12.10  based on the total salary of positions held in more than one 
 12.11  governmental subdivision; and 
 12.12     (12) full-time employees of the Dakota county agricultural 
 12.13  society. 
 12.14     Sec. 2.  Minnesota Statutes 2000, section 353.01, 
 12.15  subdivision 2b, is amended to read: 
 12.16     Subd. 2b.  [EXCLUDED EMPLOYEES.] The following public 
 12.17  employees shall not participate as members of the association 
 12.18  with retirement coverage by the public employees retirement plan 
 12.19  or the public employees police and fire retirement plan: 
 12.20     (1) elected public officers, or persons appointed to fill a 
 12.21  vacancy in an elective office, who do not elect to participate 
 12.22  in the association by filing an application for membership; 
 12.23     (2) election officers; 
 12.24     (3) patient and inmate personnel who perform services in 
 12.25  charitable, penal, or correctional institutions of a 
 12.26  governmental subdivision; 
 12.27     (4) employees who are hired for a temporary position under 
 12.28  subdivision 12a, and employees who resign from a nontemporary 
 12.29  position and accept a temporary position within 30 days in the 
 12.30  same governmental subdivision, but not those employees who are 
 12.31  hired for an unlimited period but are serving a probationary 
 12.32  period.  If the period of employment extends beyond six 
 12.33  consecutive months and the employee earns more than $425 from 
 12.34  one governmental subdivision in any one calendar month, the 
 12.35  department head shall report the employee for membership and 
 12.36  require employee deductions be made on behalf of the employee 
 13.1   under section 353.27, subdivision 4. 
 13.2      Membership eligibility of an employee who resigns or is 
 13.3   dismissed from a temporary position and within 30 days accepts 
 13.4   another temporary position in the same governmental subdivision 
 13.5   is determined on the total length of employment rather than on 
 13.6   each separate position.  Membership eligibility of an employee 
 13.7   who holds concurrent temporary and nontemporary positions in one 
 13.8   governmental subdivision is determined by the length of 
 13.9   employment and salary of each separate position; 
 13.10     (5) employees whose actual salary from one governmental 
 13.11  subdivision does not exceed $425 per month, or whose annual 
 13.12  salary from one governmental subdivision does not exceed a 
 13.13  stipulation prepared in advance, in writing, that the salary 
 13.14  must not exceed $5,100 per calendar year or per school year for 
 13.15  school employees for employment expected to be of a full year's 
 13.16  duration or more than the prorated portion of $5,100 per 
 13.17  employment period for employment expected to be of less than a 
 13.18  full year's duration; 
 13.19     (6) employees who are employed by reason of work emergency 
 13.20  caused by fire, flood, storm, or similar disaster; 
 13.21     (7) employees who by virtue of their employment in one 
 13.22  governmental subdivision are required by law to be a member of 
 13.23  and to contribute to any of the plans or funds administered by 
 13.24  the Minnesota state retirement system, the teachers retirement 
 13.25  association, the Duluth teachers retirement fund association, 
 13.26  the Minneapolis teachers retirement association, the St. Paul 
 13.27  teachers retirement fund association, the Minneapolis employees 
 13.28  retirement fund, or any police or firefighters relief 
 13.29  association governed by section 69.77 that has not consolidated 
 13.30  with the public employees retirement association, or any local 
 13.31  police or firefighters consolidation account but who have not 
 13.32  elected the type of benefit coverage provided by the public 
 13.33  employees police and fire fund under sections 353A.01 to 
 13.34  353A.10, or any persons covered by section 353.665, subdivision 
 13.35  4, 5, or 6, who have not elected public employees police and 
 13.36  fire plan benefit coverage.  This clause must not be construed 
 14.1   to prevent a person from being a member of and contributing to 
 14.2   the public employees retirement association and also belonging 
 14.3   to and contributing to another public pension fund for other 
 14.4   service occurring during the same period of time.  A person who 
 14.5   meets the definition of "public employee" in subdivision 2 by 
 14.6   virtue of other service occurring during the same period of time 
 14.7   becomes a member of the association unless contributions are 
 14.8   made to another public retirement fund on the salary based on 
 14.9   the other service or to the teachers retirement association by a 
 14.10  teacher as defined in section 354.05, subdivision 2; 
 14.11     (8) persons who are excluded from coverage under the 
 14.12  federal Old Age, Survivors, Disability, and Health Insurance 
 14.13  Program for the performance of service as specified in United 
 14.14  States Code, title 42, section 410(a)(8)(A), as amended through 
 14.15  January 1, 1987, if no irrevocable election of coverage has been 
 14.16  made under section 3121(r) of the Internal Revenue Code of 1954, 
 14.17  as amended; 
 14.18     (9) full-time students who are enrolled and are regularly 
 14.19  attending classes at an accredited school, college, or 
 14.20  university and who are part-time employees as defined by a 
 14.21  governmental subdivision; 
 14.22     (10) resident physicians, medical interns, and pharmacist 
 14.23  residents and pharmacist interns who are serving in a degree or 
 14.24  residency program in public hospitals; 
 14.25     (11) students who are serving in an internship or residency 
 14.26  program sponsored by an accredited educational institution; 
 14.27     (12) persons who hold a part-time adult supplementary 
 14.28  technical college license who render part-time teaching service 
 14.29  in a technical college; 
 14.30     (13) foreign citizens working for a governmental 
 14.31  subdivision with a work permit of less than three years, or an 
 14.32  H-1b visa valid for less than three years of employment.  Upon 
 14.33  notice to the association that the work permit or visa extends 
 14.34  beyond the three-year period, the foreign citizens are eligible 
 14.35  for membership from the date of the extension; 
 14.36     (14) public hospital employees who elected not to 
 15.1   participate as members of the association before 1972 and who 
 15.2   did not elect to participate from July 1, 1988, to October 1, 
 15.3   1988; 
 15.4      (15) except as provided in section 353.86, volunteer 
 15.5   ambulance service personnel, as defined in subdivision 35, but 
 15.6   persons who serve as volunteer ambulance service personnel may 
 15.7   still qualify as public employees under subdivision 2 and may be 
 15.8   members of the public employees retirement association and 
 15.9   participants in the public employees retirement fund or the 
 15.10  public employees police and fire fund on the basis of 
 15.11  compensation received from public employment service other than 
 15.12  service as volunteer ambulance service personnel; 
 15.13     (16) except as provided in section 353.87, volunteer 
 15.14  firefighters, as defined in subdivision 36, engaging in 
 15.15  activities undertaken as part of volunteer firefighter duties; 
 15.16  provided that a person who is a volunteer firefighter may still 
 15.17  qualify as a public employee under subdivision 2 and may be a 
 15.18  member of the public employees retirement association and a 
 15.19  participant in the public employees retirement fund or the 
 15.20  public employees police and fire fund on the basis of 
 15.21  compensation received from public employment activities other 
 15.22  than those as a volunteer firefighter; 
 15.23     (17) pipefitters and associated trades personnel employed 
 15.24  by independent school district No. 625, St. Paul, with 
 15.25  coverage under a collective bargaining agreement by the 
 15.26  pipefitters local 455 pension plan under a collective bargaining 
 15.27  agreement who were either first employed after May 1, 1997, or, 
 15.28  if first employed before May 2, 1997, elected to be excluded 
 15.29  under Laws 1997, chapter 241, article 2, section 12; and 
 15.30     (18) electrical workers, plumbers, carpenters, and 
 15.31  associated trades personnel employed by independent school 
 15.32  district No. 625, St. Paul, or the city of St. Paul, with 
 15.33  coverage under a collective bargaining agreement by the 
 15.34  electrical workers local 110 pension plan, the united 
 15.35  association plumbers local 34 pension plan, or the carpenters 
 15.36  local 87 pension plan under a collective bargaining agreement 
 16.1   who were either first employed after May 1, 2000, or, if first 
 16.2   employed before May 2, 2000, elected to be excluded under Laws 
 16.3   2000, chapter 461, article 7, section 5.; 
 16.4      (19) bricklayers, allied craftworkers, cement masons, 
 16.5   glaziers, glassworkers, painters, allied tradesworkers, and 
 16.6   plasterers employed by the city of St. Paul or independent 
 16.7   school district No. 625, St. Paul, with coverage under a 
 16.8   collective bargaining agreement by the bricklayers and allied 
 16.9   craftworkers local 1 pension plan, the cement masons local 633 
 16.10  pension plan, the glaziers and glassworkers local L-1324 pension 
 16.11  plan, the painters and allied trades local 61 pension plan, or 
 16.12  the Twin Cities plasterers local 265 pension plan who were 
 16.13  either first employed after May 1, 2001, or if first employed 
 16.14  before May 2, 2001, elected to be excluded under section 6; and 
 16.15     (20) plumbers employed by the metropolitan airports 
 16.16  commission, with coverage under a collective bargaining 
 16.17  agreement by the plumbers local 34 pension plan who were either 
 16.18  first employed after May 1, 2001, or if first employed before 
 16.19  May 2, 2001, elected to be excluded under section 6. 
 16.20     Sec. 3.  Minnesota Statutes 2000, section 353.01, 
 16.21  subdivision 6, is amended to read: 
 16.22     Subd. 6.  [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 
 16.23  subdivision" means a county, city, town, school district within 
 16.24  this state, or a department or unit of state government, or any 
 16.25  public body whose revenues are derived from taxation, fees, 
 16.26  assessments or from other sources. 
 16.27     (b) Governmental subdivision also means the public 
 16.28  employees retirement association, the league of Minnesota 
 16.29  cities, the association of metropolitan municipalities, public 
 16.30  hospitals owned or operated by, or an integral part of, a 
 16.31  governmental subdivision or governmental subdivisions, the 
 16.32  association of Minnesota counties, the metropolitan intercounty 
 16.33  association, the Minnesota municipal utilities association, the 
 16.34  metropolitan airports commission, the Minneapolis employees 
 16.35  retirement fund for employment initially commenced after June 
 16.36  30, 1979, the range association of municipalities and schools, 
 17.1   soil and water conservation districts, and economic development 
 17.2   authorities created or operating under sections 469.090 to 
 17.3   469.108, the Spring Lake Park fire department, incorporated, and 
 17.4   the Dakota county agricultural society. 
 17.5      (c) Governmental subdivision does not mean any municipal 
 17.6   housing and redevelopment authority organized under the 
 17.7   provisions of sections 469.001 to 469.047; or any port authority 
 17.8   organized under sections 469.048 to 469.089; or any hospital 
 17.9   district organized or reorganized prior to July 1, 1975, under 
 17.10  sections 447.31 to 447.37 or the successor of the district, nor 
 17.11  the Minneapolis community development agency.  
 17.12     Sec. 4.  [383D.48] [METROPOLITAN INTER-COUNTY ASSOCIATION.] 
 17.13     Notwithstanding any other law to the contrary, Dakota 
 17.14  county may provide financial and accounting services, including 
 17.15  payroll management and records, to the Metropolitan Inter-county 
 17.16  Association.  Notwithstanding this section, Metropolitan 
 17.17  Inter-county Association employees are not county employees for 
 17.18  any purpose. 
 17.19     Sec. 5.  [383D.49] [AGRICULTURAL SOCIETY.] 
 17.20     Notwithstanding any other law to the contrary, Dakota 
 17.21  county may provide financial and accounting services, including 
 17.22  payroll management and records, to the Dakota county 
 17.23  agricultural society and may determine that employees of the 
 17.24  society are county employees for the purposes of section 471.61. 
 17.25  Dakota county agricultural society employees are not county 
 17.26  employees for any other purpose. 
 17.27     Sec. 6.  [PUBLIC PENSION COVERAGE EXCLUSION FOR CERTAIN 
 17.28  TRADES PERSONNEL.] 
 17.29     Subdivision 1.  [EXCLUSION ELECTION.] (a) A bricklayer, 
 17.30  allied craftworker, cement mason, glazier, glassworker, painter, 
 17.31  allied tradesworker, or plasterer who is employed by the city of 
 17.32  St. Paul or independent school district No. 625, St. Paul, on 
 17.33  the effective date of this section and who has pension coverage 
 17.34  under a collective bargaining agreement by the bricklayers and 
 17.35  allied craftworkers local 1 pension plan, the cement masons 
 17.36  local 633 pension plan, the glaziers and glassworkers local 
 18.1   L-1324 pension plan, the painters and allied trades local 61 
 18.2   pension plan, or the Twin Cities plasterers local 265 pension 
 18.3   plan may elect to be excluded from pension coverage by the 
 18.4   public employees retirement association. 
 18.5      (b) A plumber who is employed by the metropolitan airports 
 18.6   commission on the effective date of this section and who has 
 18.7   pension coverage under a collective bargaining agreement by the 
 18.8   plumbers local 34 pension plan may elect to be excluded from 
 18.9   pension coverage by the public employees retirement association. 
 18.10     (c) The exclusion election under this section must be made 
 18.11  in writing on a form prescribed by the executive director of the 
 18.12  public employees retirement association and must be filed with 
 18.13  the executive director.  The exclusion election is irrevocable.  
 18.14  Authority to make the coverage exclusion expires on January 1, 
 18.15  2002. 
 18.16     Subd. 2.  [ELIGIBILITY FOR MEMBER CONTRIBUTION REFUND.] A 
 18.17  person who has less than three years of allowable service in the 
 18.18  public employees retirement association and who elects the 
 18.19  pension coverage exclusion under subdivision 1 is entitled to 
 18.20  immediately apply for a refund under Minnesota Statutes, section 
 18.21  353.34, subdivisions 1 and 2, following the effective date of 
 18.22  the exclusion election. 
 18.23     Subd. 3.  [DEFERRED ANNUITY ELIGIBILITY.] In lieu of the 
 18.24  refund under subdivision 2, a person who elects the pension 
 18.25  coverage exclusion under subdivision 1 is entitled to a deferred 
 18.26  retirement annuity under Minnesota Statutes, sections 353.34, 
 18.27  subdivision 3; and 353.71, subdivision 2, based on any length of 
 18.28  allowable service credit under Minnesota Statutes, section 
 18.29  353.01, subdivision 16, to the credit of the person as of the 
 18.30  date of the coverage exclusion election. 
 18.31     Sec. 7.  [DAKOTA COUNTY AGRICULTURAL SOCIETY EMPLOYEE 
 18.32  PENSION CERTIFICATION.] 
 18.33     Notwithstanding section 5, the Dakota county board of 
 18.34  commissioners may certify to the executive director of the 
 18.35  public employees retirement association that full-time employees 
 18.36  of the Dakota county agricultural society are county employees 
 19.1   for purposes of retirement coverage under Minnesota Statutes, 
 19.2   chapter 353, which status must be accorded to all similarly 
 19.3   situated Dakota county agricultural society employees. 
 19.4      Sec. 8.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
 19.5      (a) Sections 1, 3, 4, and 5 are effective the day after the 
 19.6   governing body of Dakota county and its chief clerical officer 
 19.7   timely complete their compliance with Minnesota Statutes, 
 19.8   section 645.021, subdivisions 2 and 3. 
 19.9      (b) Section 7 is effective the day after the governing 
 19.10  board of Dakota county and its chief clerical officer timely 
 19.11  complete their compliance with Minnesota Statutes, section 
 19.12  645.021, subdivisions 2 and 3, and certification to the 
 19.13  executive director of the public employees retirement 
 19.14  association. 
 19.15     (c) Sections 2 and 6 are effective for bricklayers, allied 
 19.16  craftworkers, cement masons, glaziers, glassworkers, painters, 
 19.17  allied tradesworkers, and plasterers employed by the city of St. 
 19.18  Paul or independent school district No. 625, St. Paul, as 
 19.19  applicable, on the day following approval by majority vote of 
 19.20  the St. Paul city council or governing board of independent 
 19.21  school district No. 625, St. Paul, as applicable, and compliance 
 19.22  with Minnesota Statutes, section 645.021. 
 19.23     (d) Sections 2 and 6 are effective for plumbers employed by 
 19.24  the metropolitan airports commission on the day following 
 19.25  approval by majority vote of the metropolitan airports 
 19.26  commission and compliance with Minnesota Statutes, section 
 19.27  645.021. 
 19.28                             ARTICLE 6
 19.29                GENERALIZED SERVICE CREDIT PURCHASES
 19.30     Section 1.  Minnesota Statutes 2000, section 352.01, 
 19.31  subdivision 11, is amended to read: 
 19.32     Subd. 11.  [ALLOWABLE SERVICE.] "Allowable service" means:  
 19.33     (1) Service by an employee for which on or before July 1, 
 19.34  1957, the employee was entitled to allowable service credit on 
 19.35  the records of the system by reason of employee contributions in 
 19.36  the form of salary deductions, payments in lieu of salary 
 20.1   deductions, or in any other manner authorized by Minnesota 
 20.2   Statutes 1953, chapter 352, as amended by Laws 1955, chapter 239.
 20.3      (2) Service by an employee for which on or before July 1, 
 20.4   1961, the employee chose to obtain credit for service by making 
 20.5   payments to the fund under Minnesota Statutes 1961, section 
 20.6   352.24. 
 20.7      (3) Except as provided in clauses (8) and (9), service by 
 20.8   an employee after July 1, 1957, for any calendar month in which 
 20.9   the employee is paid salary from which deductions are made, 
 20.10  deposited, and credited in the fund, including deductions made, 
 20.11  deposited, and credited as provided in section 352.041. 
 20.12     (4) Except as provided in clauses (8) and (9), service by 
 20.13  an employee after July 1, 1957, for any calendar month for which 
 20.14  payments in lieu of salary deductions are made, deposited, and 
 20.15  credited in the fund, as provided in section 352.27 and 
 20.16  Minnesota Statutes 1957, section 352.021, subdivision 4. 
 20.17     For purposes of clauses (3) and (4), except as provided in 
 20.18  clauses (8) and (9), any salary paid for a fractional part of 
 20.19  any calendar month, including the month of separation from state 
 20.20  service, is deemed the compensation for the entire calendar 
 20.21  month. 
 20.22     (5) The period of absence from their duties by employees 
 20.23  who are temporarily disabled because of injuries incurred in the 
 20.24  performance of duties and for which disability the state is 
 20.25  liable under the workers' compensation law until the date 
 20.26  authorized by the director for the commencement of payments of a 
 20.27  total and permanent disability benefit from the retirement fund. 
 20.28     (6) Service covered by a refund repaid as provided in 
 20.29  section 352.23 or 352D.05, subdivision 4, except service 
 20.30  rendered as an employee of the adjutant general for which the 
 20.31  person has credit with the federal civil service retirement 
 20.32  system. 
 20.33     (7) Service before July 1, 1978, by an employee of the 
 20.34  transit operating division of the metropolitan transit 
 20.35  commission or by an employee on an authorized leave of absence 
 20.36  from the transit operating division of the metropolitan transit 
 21.1   commission who is employed by the labor organization which is 
 21.2   the exclusive bargaining agent representing employees of the 
 21.3   transit operating division, which was credited by the 
 21.4   metropolitan transit commission-transit operating division 
 21.5   employees retirement fund or any of its predecessor plans or 
 21.6   funds as past, intermediate, future, continuous, or allowable 
 21.7   service as defined in the metropolitan transit 
 21.8   commission-transit operating division employees retirement fund 
 21.9   plan document in effect on December 31, 1977. 
 21.10     (8) Service after July 1, 1983, by an employee who is 
 21.11  employed on a part-time basis for less than 50 percent of full 
 21.12  time, for which the employee is paid salary from which 
 21.13  deductions are made, deposited, and credited in the fund, 
 21.14  including deductions made, deposited, and credited as provided 
 21.15  in section 352.041 or for which payments in lieu of salary 
 21.16  deductions are made, deposited, and credited in the fund as 
 21.17  provided in section 352.27 shall be credited on a fractional 
 21.18  basis either by pay period, monthly, or annually based on the 
 21.19  relationship that the percentage of salary earned bears to a 
 21.20  full-time salary, with any salary paid for the fractional 
 21.21  service credited on the basis of the rate of salary applicable 
 21.22  for a full-time pay period, month, or a full-time year.  For 
 21.23  periods of part-time service that is duplicated service credit, 
 21.24  section 356.30, subdivision 1, clauses (i) and (j), govern. 
 21.25     Allowable service determined and credited on a fractional 
 21.26  basis shall be used in calculating the amount of benefits 
 21.27  payable, but service as determined on a fractional basis must 
 21.28  not be used in determining the length of service required for 
 21.29  eligibility for benefits.  
 21.30     (9) Any period of authorized leave of absence without pay 
 21.31  that does not exceed one year and for which the employee 
 21.32  obtained credit by payment to the fund in lieu of salary 
 21.33  deductions.  To obtain credit, the employee shall pay an amount 
 21.34  equal to the employee and employer contribution rate in section 
 21.35  352.04, subdivisions 2 and 3, multiplied by the employee's 
 21.36  hourly rate of salary on the date of return from leave of 
 22.1   absence and by the days and months of the leave of absence 
 22.2   without pay for which the employee wants allowable service 
 22.3   credit.  The employing department, at its option, may pay the 
 22.4   employer amount on behalf of its employees.  Payments made under 
 22.5   this clause must include interest at an annual rate of 8.5 
 22.6   percent compounded annually from the date of termination of the 
 22.7   leave of absence to the date payment is made unless payment is 
 22.8   completed within one year of the return from leave of absence. 
 22.9      (10) A period purchased under section 356.555. 
 22.10     Sec. 2.  Minnesota Statutes 2000, section 352B.01, 
 22.11  subdivision 3, is amended to read: 
 22.12     Subd. 3.  [ALLOWABLE SERVICE.] (a) "Allowable service" 
 22.13  means:  
 22.14     (1) for members defined in subdivision 2, clause (a), 
 22.15  monthly service is granted for any month for which payments have 
 22.16  been made to the state patrol retirement fund, and 
 22.17     (2) for members defined in subdivision 2, clauses (b) and 
 22.18  (c), service for which payments have been made to the state 
 22.19  patrol retirement fund, service for which payments were made to 
 22.20  the state police officers retirement fund after June 30, 1961, 
 22.21  and all prior service which was credited to a member for service 
 22.22  on or before June 30, 1961.  
 22.23     (b) Allowable service also includes any period of absence 
 22.24  from duty by a member who, by reason of injury incurred in the 
 22.25  performance of duty, is temporarily disabled and for which 
 22.26  disability the state is liable under the workers' compensation 
 22.27  law, until the date authorized by the executive director for 
 22.28  commencement of payment of a disability benefit or return to 
 22.29  employment.  
 22.30     (c) Allowable service also includes a period purchased 
 22.31  under section 356.555. 
 22.32     Sec. 3.  Minnesota Statutes 2000, section 353.01, 
 22.33  subdivision 16, is amended to read: 
 22.34     Subd. 16.  [ALLOWABLE SERVICE.] (a) "Allowable service" 
 22.35  means service during years of actual membership in the course of 
 22.36  which employee contributions were made, periods covered by 
 23.1   payments in lieu of salary deductions under section 353.35, and 
 23.2   service in years during which the public employee was not a 
 23.3   member but for which the member later elected, while a member, 
 23.4   to obtain credit by making payments to the fund as permitted by 
 23.5   any law then in effect. 
 23.6      (b) "Allowable service" also means a period of authorized 
 23.7   leave of absence with pay from which deductions for employee 
 23.8   contributions are made, deposited, and credited to the fund.  
 23.9      (c) "Allowable service" also means a period of authorized 
 23.10  leave of absence without pay that does not exceed one year, and 
 23.11  during or for which a member obtained credit by payments to the 
 23.12  fund made in place of salary deductions, provided that the 
 23.13  payments are made in an amount or amounts based on the member's 
 23.14  average salary on which deductions were paid for the last six 
 23.15  months of public service, or for that portion of the last six 
 23.16  months while the member was in public service, to apply to the 
 23.17  period in either case immediately preceding commencement of the 
 23.18  leave of absence.  If the employee elects to pay employee 
 23.19  contributions for the period of any leave of absence without 
 23.20  pay, or for any portion of the leave, the employee shall also, 
 23.21  as a condition to the exercise of the election, pay to the fund 
 23.22  an amount equivalent to both the required employer and 
 23.23  additional employer contributions for the employee.  The payment 
 23.24  must be made within one year from the expiration of the leave of 
 23.25  absence or within 20 days after termination of public service 
 23.26  under subdivision 11a.  The employer by appropriate action of 
 23.27  its governing body, made a part of its official records, before 
 23.28  the date of the first payment of the employee contribution, may 
 23.29  certify to the association in writing its commitment to pay the 
 23.30  employer and additional employer contributions from the proceeds 
 23.31  of a tax levy made under section 353.28.  Payments under this 
 23.32  paragraph must include interest at an annual rate of 8.5 percent 
 23.33  compounded annually from the date of the termination of the 
 23.34  leave of absence to the date payment is made.  An employee shall 
 23.35  return to public service and receive a minimum of three months 
 23.36  of allowable service to be eligible to pay employee and employer 
 24.1   contributions for a subsequent authorized leave of absence 
 24.2   without pay. 
 24.3      (d) "Allowable service" also means a periodic, repetitive 
 24.4   leave that is offered to all employees of a governmental 
 24.5   subdivision.  The leave program may not exceed 208 hours per 
 24.6   annual normal work cycle as certified to the association by the 
 24.7   employer.  A participating member obtains service credit by 
 24.8   making employee contributions in an amount or amounts based on 
 24.9   the member's average salary that would have been paid if the 
 24.10  leave had not been taken.  The employer shall pay the employer 
 24.11  and additional employer contributions on behalf of the 
 24.12  participating member.  The employee and the employer are 
 24.13  responsible to pay interest on their respective shares at the 
 24.14  rate of 8.5 percent a year, compounded annually, from the end of 
 24.15  the normal cycle until full payment is made.  An employer shall 
 24.16  also make the employer and additional employer contributions, 
 24.17  plus 8.5 percent interest, compounded annually, on behalf of an 
 24.18  employee who makes employee contributions but terminates public 
 24.19  service.  The employee contributions must be made within one 
 24.20  year after the end of the annual normal working cycle or within 
 24.21  20 days after termination of public service, whichever is 
 24.22  sooner.  The association shall prescribe the manner and forms to 
 24.23  be used by a governmental subdivision in administering a 
 24.24  periodic, repetitive leave. 
 24.25     (e) "Allowable service" also means a period during which a 
 24.26  member is on an authorized sick leave of absence, without pay, 
 24.27  limited to one year.  An employee who has received one year of 
 24.28  allowable service shall return to public service and receive a 
 24.29  minimum of three months of allowable service to receive 
 24.30  allowable service for a subsequent authorized sick leave of 
 24.31  absence. 
 24.32     (f) "Allowable service" also means an authorized temporary 
 24.33  layoff under subdivision 12, limited to three months allowable 
 24.34  service per authorized temporary layoff in one calendar year.  
 24.35  An employee who has received the maximum service allowed for an 
 24.36  authorized temporary layoff shall return to public service and 
 25.1   receive a minimum of three months of allowable service to 
 25.2   receive allowable service for a subsequent authorized temporary 
 25.3   layoff. 
 25.4      (g) Notwithstanding any law to the contrary, "allowable 
 25.5   service" also means a parental leave.  The association shall 
 25.6   grant a maximum of two months service credit for a parental 
 25.7   leave, within six months after the birth or adoption, upon 
 25.8   documentation from the member's governmental subdivision or 
 25.9   presentation of a birth certificate or other evidence of birth 
 25.10  or adoption to the association. 
 25.11     (h) "Allowable service" also means a period during which a 
 25.12  member is on an authorized leave of absence to enter military 
 25.13  service, provided that the member returns to public service upon 
 25.14  discharge from military service under section 192.262 and pays 
 25.15  into the fund employee contributions based upon the employee's 
 25.16  salary at the date of return from military service.  Payment 
 25.17  must be made within five years of the date of discharge from the 
 25.18  military service.  The amount of these contributions must be in 
 25.19  accord with the contribution rates and salary limitations, if 
 25.20  any, in effect during the leave, plus interest at an annual rate 
 25.21  of 8.5 percent compounded annually from the date of return to 
 25.22  public service to the date payment is made.  The matching 
 25.23  employer contribution and additional employer contribution under 
 25.24  section 353.27, subdivisions 3 and 3a, must be paid by the 
 25.25  governmental subdivision employing the member upon return to 
 25.26  public service if the member makes the employee contributions.  
 25.27  The governmental subdivision involved may appropriate money for 
 25.28  those payments.  A member may not receive credit for a voluntary 
 25.29  extension of military service at the instance of the member 
 25.30  beyond the initial period of enlistment, induction, or call to 
 25.31  active duty. 
 25.32     (i) For calculating benefits under sections 353.30, 353.31, 
 25.33  353.32, and 353.33 for state officers and employees displaced by 
 25.34  the Community Corrections Act, chapter 401, and transferred into 
 25.35  county service under section 401.04, "allowable service" means 
 25.36  combined years of allowable service as defined in paragraphs (a) 
 26.1   to (i) and section 352.01, subdivision 11.  
 26.2      (j) For a public employee who has prior service covered by 
 26.3   a local police or firefighters relief association that has 
 26.4   consolidated with the public employees retirement association or 
 26.5   to which section 353.665 applies, and who has elected the type 
 26.6   of benefit coverage provided by the public employees police and 
 26.7   fire fund either under section 353A.08 following the 
 26.8   consolidation or under section 353.665, subdivision 4, 
 26.9   "applicable service" is a period of service credited by the 
 26.10  local police or firefighters relief association as of the 
 26.11  effective date of the consolidation based on law and on bylaw 
 26.12  provisions governing the relief association on the date of the 
 26.13  initiation of the consolidation procedure. 
 26.14     (k) "Allowable service" also means a period purchased under 
 26.15  section 356.555. 
 26.16     Sec. 4.  Minnesota Statutes 2000, section 354.534, 
 26.17  subdivision 1, is amended to read: 
 26.18     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) A 
 26.19  teacher who has at least three years of allowable service credit 
 26.20  with the teachers retirement association is entitled to purchase 
 26.21  up to ten years of allowable and formula service credit for 
 26.22  out-of-state teaching service by making payment under section 
 26.23  356.55, provided the out-of-state teaching service was performed 
 26.24  for an educational institution established and operated by 
 26.25  another state, governmental subdivision of another state, or the 
 26.26  federal government governmental jurisdiction and the teacher is 
 26.27  not entitled to receive a current or deferred age and service 
 26.28  retirement annuity or disability benefit and has not purchased 
 26.29  service credit from another defined benefit public employee 
 26.30  pension plan for that out-of-state teaching service. 
 26.31     (b) For purposes of paragraph (a), "another governmental 
 26.32  jurisdiction" means:  
 26.33     (1) another state of the United States; 
 26.34     (2) a governmental subdivision of another state of the 
 26.35  United States; 
 26.36     (3) the federal government; 
 27.1      (4) a federally recognized American Indian tribe; or 
 27.2      (5) a country other than the United States. 
 27.3      Sec. 5.  Minnesota Statutes 2000, section 354.536, 
 27.4   subdivision 1, is amended to read: 
 27.5      Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 27.6   teacher who has at least three years of allowable service credit 
 27.7   with the teachers retirement association is entitled to purchase 
 27.8   up to ten years of allowable and formula service credit for 
 27.9   developmental achievement center, nonprofit community-based 
 27.10  corporation, private, or parochial school teaching service by 
 27.11  making payment under section 356.55, provided that the teacher 
 27.12  is not entitled to receive a current or deferred age and service 
 27.13  retirement annuity or disability benefit from the applicable 
 27.14  employer-sponsored pension plan and has not purchased service 
 27.15  credit from the applicable defined benefit employer-sponsored 
 27.16  pension plan for that service. 
 27.17     Sec. 6.  Minnesota Statutes 2000, section 354.539, is 
 27.18  amended to read: 
 27.19     354.539 [USE OF COLLEGE SUPPLEMENTAL RETIREMENT FUNDS TO 
 27.20  PURCHASE SERVICE CREDIT.] 
 27.21     (a) Unless prohibited by or subject to a penalty under 
 27.22  federal law, a teacher who is a participant in the college 
 27.23  supplemental retirement plan established under chapter 354C may 
 27.24  utilize the teacher's supplemental plan account to purchase 
 27.25  service credit under sections 354.53, 354.533, 354.534, 354.535, 
 27.26  354.536, 354.537, and 354.538, 354.541, and 354.542 or to repay 
 27.27  a refund under section 354.50. 
 27.28     (b) At the request of a member, if determined by the 
 27.29  executive director to be eligible to purchase service credit, 
 27.30  the executive director shall notify the board of the Minnesota 
 27.31  state colleges and universities system of the cost of the 
 27.32  purchase and shall request the transfer of funds from the 
 27.33  member's college supplemental retirement account to the teachers 
 27.34  retirement association.  Upon receipt of the full prior service 
 27.35  credit purchase payment amount, the teachers retirement 
 27.36  association shall grant the requested allowable and formula 
 28.1   service credit. 
 28.2      Sec. 7.  [354.541] [PRIOR UNIVERSITY OF MINNESOTA TEACHING 
 28.3   SERVICE CREDIT PURCHASE.] 
 28.4      Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 28.5   teacher who has at least three years of allowable service credit 
 28.6   with the teachers retirement association is entitled to purchase 
 28.7   up to ten years of allowable and formula service credit for 
 28.8   University of Minnesota teaching service by making payment under 
 28.9   section 356.55, provided the teacher is not entitled to receive 
 28.10  a current or deferred age and service retirement annuity or 
 28.11  disability benefit and has not purchased service credit from 
 28.12  another defined benefit public employee pension plan for that 
 28.13  University of Minnesota teaching service.  
 28.14     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 28.15  desires to purchase service credit under subdivision 1 must 
 28.16  apply with the executive director to make the purchase.  The 
 28.17  application must include all necessary documentation of the 
 28.18  teacher's qualifications to make the purchase, signed written 
 28.19  permission to allow the executive director to request and 
 28.20  receive necessary verification of applicable facts and 
 28.21  eligibility requirements, and any other relevant information 
 28.22  that the executive director may require.  Payment must be made 
 28.23  before the teacher's effective date of retirement. 
 28.24     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
 28.25  service credit for the purchase period must be granted by the 
 28.26  teachers retirement association to the purchasing teacher on 
 28.27  receipt of the purchase payment amount. 
 28.28     Sec. 8.  [354.542] [PRIOR TEACHING SERVICE CREDIT PURCHASE 
 28.29  BY IRAP MEMBERS WITH DEFERRED TEACHERS RETIREMENT ASSOCIATION 
 28.30  CREDIT.] 
 28.31     A person in covered employment under section 354B.20, 
 28.32  subdivision 4, who is a participant in the individual retirement 
 28.33  account plan authorized by chapter 354B and who has at least 
 28.34  three years of allowable service credit with the teachers 
 28.35  retirement association may purchase service credit as provided 
 28.36  in sections 354.533 to 354.538 and 354.541. 
 29.1      Sec. 9.  Minnesota Statutes 2000, section 354A.098, 
 29.2   subdivision 1, is amended to read: 
 29.3      Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) A 
 29.4   teacher who has at least three years of allowable service credit 
 29.5   with one of the retirement fund associations under this chapter 
 29.6   and who rendered out-of-state teaching service for an 
 29.7   educational institution established and operated by another 
 29.8   state, governmental subdivision of another state, or the federal 
 29.9   government governmental entity specified in paragraph (b) is 
 29.10  entitled to purchase up to ten years of allowable service credit 
 29.11  for that out-of-state service by making payment under section 
 29.12  356.55, provided the teacher is not entitled to receive a 
 29.13  current or deferred age and service retirement annuity or 
 29.14  disability benefit and has not purchased service credit from 
 29.15  another defined benefit public employee pension plan for that 
 29.16  out-of-state teaching service.  Payment must be made before the 
 29.17  teacher's effective date of retirement.  
 29.18     (b) An eligible governmental entity for purposes of 
 29.19  paragraph (a) is: 
 29.20     (1) another state of the United States; 
 29.21     (2) a governmental subdivision of another state of the 
 29.22  United States; 
 29.23     (3) the federal government; 
 29.24     (4) a federally recognized American Indian tribe; or 
 29.25     (5) a public education institution in a foreign country. 
 29.26     Sec. 10.  Minnesota Statutes 2000, section 354A.101, 
 29.27  subdivision 1, is amended to read: 
 29.28     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 29.29  teacher who has at least three years of allowable service credit 
 29.30  with the teachers retirement fund association is entitled to 
 29.31  purchase up to ten years of allowable service credit 
 29.32  for developmental achievement center, nonprofit community-based 
 29.33  corporation, private, or parochial school teaching service by 
 29.34  making payment under section 356.55, provided that the teacher 
 29.35  is not entitled to receive a current or deferred age and service 
 29.36  retirement annuity or disability benefit from the applicable 
 30.1   employer-sponsored pension plan and has not purchased service 
 30.2   credit from the applicable defined benefit employer-sponsored 
 30.3   pension plan for that service. 
 30.4      Sec. 11.  Minnesota Statutes 2000, section 354A.106, is 
 30.5   amended to read: 
 30.6      354A.106 [USE OF COLLEGE SUPPLEMENTAL RETIREMENT FUNDS TO 
 30.7   PURCHASE SERVICE CREDIT.] 
 30.8      (a) Unless prohibited by or subject to a penalty under 
 30.9   federal law, a teacher who is a participant in the college 
 30.10  supplemental retirement plan established under chapter 354C may 
 30.11  utilize the teacher's supplemental plan account to purchase 
 30.12  service credit under sections 354A.097, 354A.098, 354A.099, 
 30.13  354A.101, 354A.102, 354A.103, and 354A.104, 354A.107, and 
 30.14  354A.108, or to repay a refund under section 354A.38. 
 30.15     (b) At the request of a member, if determined by the 
 30.16  executive director of the applicable teachers retirement fund 
 30.17  association to be eligible to purchase service credit, the 
 30.18  executive director shall notify the board of the Minnesota state 
 30.19  colleges and universities system of the cost of the purchase and 
 30.20  shall request the transfer of funds from the member's college 
 30.21  supplemental retirement account to the applicable teachers 
 30.22  retirement fund association.  Upon receipt of the full prior 
 30.23  service credit purchase payment amount, the applicable teachers 
 30.24  retirement fund association shall grant the requested allowable 
 30.25  and formula service credit. 
 30.26     Sec. 12.  [354A.107] [PRIOR UNIVERSITY OF MINNESOTA 
 30.27  TEACHING SERVICE CREDIT PURCHASE.] 
 30.28     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 30.29  teacher who has at least three years of allowable service credit 
 30.30  with the teachers retirement fund association is entitled to 
 30.31  purchase up to ten years of allowable service credit for 
 30.32  University of Minnesota teaching service by making payment under 
 30.33  section 356.55, provided the teacher is not entitled to receive 
 30.34  a current or deferred age and service retirement annuity or 
 30.35  disability benefit and has not purchased service credit from 
 30.36  another defined benefit public employee pension plan for that 
 31.1   University of Minnesota teaching service.  
 31.2      Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 31.3   desires to purchase service credit under subdivision 1 must 
 31.4   apply with the executive director to make the purchase.  The 
 31.5   application must include all necessary documentation of the 
 31.6   teacher's qualifications to make the purchase, signed written 
 31.7   permission to allow the executive director to request and 
 31.8   receive necessary verification of applicable facts and 
 31.9   eligibility requirements, and any other relevant information 
 31.10  that the executive director may require.  Payment must be made 
 31.11  before the teacher's effective date of retirement. 
 31.12     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 31.13  for the purchase period must be granted by the teachers 
 31.14  retirement association to the purchasing teacher on receipt of 
 31.15  the purchase payment amount. 
 31.16     Sec. 13.  [354A.108] [PRIOR TEACHING SERVICE CREDIT 
 31.17  PURCHASE BY IRAP MEMBERS WITH DEFERRED TEACHERS RETIREMENT 
 31.18  ASSOCIATION CREDIT.] 
 31.19     A teacher who is a participant in the individual retirement 
 31.20  account plan authorized by chapter 354B and who has at least 
 31.21  three years of allowable service credit with a teachers 
 31.22  retirement fund association may purchase service credit as 
 31.23  provided in sections 354A.091 to 354A.099 and 354A.101 to 
 31.24  354A.107. 
 31.25     Sec. 14.  Minnesota Statutes 2000, section 356.55, 
 31.26  subdivision 7, is amended to read: 
 31.27     Subd. 7.  [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 
 31.28  PROCEDURE.] (a) This section expires and is repealed on July 
 31.29  1, 2001 2003. 
 31.30     (b) Authority for any public pension plan to accept a prior 
 31.31  service credit payment calculated in a timely fashion under this 
 31.32  section expires on October 1, 2001 2003. 
 31.33     Sec. 15.  [356.555] [PARENTAL OR FAMILY LEAVE SERVICE 
 31.34  CREDIT PURCHASE.] 
 31.35     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZATION.] (a)
 31.36  Notwithstanding any provision to the contrary of the laws 
 32.1   governing a plan enumerated in subdivision 4, a member of the 
 32.2   pension plan who has at least three years of allowable service 
 32.3   covered by the applicable pension plan and who was granted by 
 32.4   the employer a parental leave of absence as defined in paragraph 
 32.5   (b), or who was granted by the employer a family leave of 
 32.6   absence as defined in paragraph (c), or who had a parental- or 
 32.7   family-related break in employment, as defined in paragraph (d), 
 32.8   for which the person did not previously receive service credit 
 32.9   or for which the person did not receive or purchase service 
 32.10  credit from another defined benefit public employee pension 
 32.11  plan, is entitled to purchase the actual period of the leave or 
 32.12  of the break in service, up to five years, of allowable service 
 32.13  credit in the applicable retirement plan.  The purchase payment 
 32.14  amount is governed by section 356.55. 
 32.15     (b) For purposes of this section, a parental leave of 
 32.16  absence is a temporary period of interruption or of separation 
 32.17  from active employment for the purposes of handling maternity or 
 32.18  paternity duties that has been approved by the employing unit 
 32.19  and that includes the right of reinstatement to employment. 
 32.20     (c) For purposes of this section, a family leave of absence 
 32.21  is a family leave under United States Code, title 42, section 
 32.22  12631, as amended. 
 32.23     (d) For purposes of this section, a parental- or 
 32.24  family-related break in employment is a period following a 
 32.25  termination of active employment primarily for the purpose of 
 32.26  the birth of a child, the adoption of a child, or the provision 
 32.27  of care to a near relative or in-law, after which the person 
 32.28  returned to the prior employing unit or an employing unit 
 32.29  covered by the same pension plan that provided retirement 
 32.30  coverage immediately prior to the termination of employment. 
 32.31     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A person who 
 32.32  desires to purchase service credit under subdivision 1 must 
 32.33  apply for the service credit purchase with the chief 
 32.34  administrative officer of the enumerated pension plan.  The 
 32.35  application must include all necessary documentation of the 
 32.36  qualifications of the person to make the purchase, signed 
 33.1   written permission to allow the chief administrative officer to 
 33.2   request and receive necessary verification of all applicable 
 33.3   facts and eligibility requirements, and any other relevant 
 33.4   information that the chief administrative officer may require. 
 33.5      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 33.6   in the applicable enumerated pension plan for the purchase 
 33.7   period must be granted to the purchaser upon receipt of the 
 33.8   purchase payment amount calculated under section 356.55.  
 33.9   Payment of the purchase price must be made before the person 
 33.10  retires. 
 33.11     Subd. 4.  [COVERED PENSION PLANS.] This section applies to 
 33.12  the following pension plans: 
 33.13     (1) general state employees retirement plan governed by 
 33.14  chapter 352; 
 33.15     (2) correctional state employees retirement plan governed 
 33.16  by chapter 352; 
 33.17     (3) general public employees retirement plan governed by 
 33.18  chapter 353; 
 33.19     (4) public employees police and fire plan governed by 
 33.20  chapter 353; 
 33.21     (5) Minneapolis employees retirement plan governed by 
 33.22  chapter 422A; 
 33.23     (6) Minneapolis police relief association governed by 
 33.24  chapter 423B; and 
 33.25     (7) Minneapolis fire department relief association governed 
 33.26  by sections 69.25 to 69.53 and augmented by Laws 1959, chapters 
 33.27  213, 491, and 568, and other special local legislation. 
 33.28     Sec. 16.  Minnesota Statutes 2000, section 422A.155, is 
 33.29  amended to read: 
 33.30     422A.155 [DETERMINATION OF SERVICE CREDIT.] 
 33.31     (a) Notwithstanding the provisions of section 422A.15, 
 33.32  subdivision 1, no employee of the contributing class of the 
 33.33  Minneapolis employees retirement fund shall be entitled to 
 33.34  receive a year of service credit during the employee's final 
 33.35  year of service unless the employee is employed and has received 
 33.36  compensation from the city of Minneapolis or other applicable 
 34.1   employing unit during each of the calendar months making up the 
 34.2   year for which the employee would usually be employed.  Any 
 34.3   employee of the contributing class who is employed and receives 
 34.4   compensation in fewer than the usual number of calendar months 
 34.5   during the final year of service shall receive credit for that 
 34.6   portion of a year that the employee's completed months of 
 34.7   employment and receipt of compensation bears to the usual number 
 34.8   of months which the employee would usually be employed.  
 34.9      (b) Notwithstanding any provision of this chapter to the 
 34.10  contrary, service credit also means a period purchased under 
 34.11  section 356.555. 
 34.12     Sec. 17.  Minnesota Statutes 2000, section 423B.01, is 
 34.13  amended by adding a subdivision to read: 
 34.14     Subd. 3a.  [ALLOWABLE SERVICE CREDIT.] "Allowable service 
 34.15  credit" means: 
 34.16     (1) service rendered as an active member; 
 34.17     (2) service as an elected public official under section 
 34.18  423B.03; 
 34.19     (3) military service credited under section 423B.09, 
 34.20  subdivision 3; and 
 34.21     (4) a period of service purchased under section 356.555. 
 34.22     Sec. 18.  [MINNEAPOLIS FIRE DEPARTMENT RELIEF ASSOCIATION; 
 34.23  PARENTAL LEAVE PURCHASE.] 
 34.24     Notwithstanding any provision of Minnesota Statutes, 
 34.25  sections 69.25 to 69.53; Laws 1959, chapters 213, 491, and 568; 
 34.26  or any other special local law governing the Minneapolis fire 
 34.27  department relief association to the contrary, service credit 
 34.28  for the purposes of calculating service pensions, disability 
 34.29  benefits, or survivor benefits includes a period purchased under 
 34.30  Minnesota Statutes, section 356.555. 
 34.31     Sec. 19.  [EXPIRATION DATE.] 
 34.32     (a) The amendments in sections 1, 2, 3, 14, 15, 16, 17, and 
 34.33  18 expire May 16, 2003. 
 34.34     (b) Sections 8 and 13 expire May 16, 2002. 
 34.35     Sec. 20.  [EFFECTIVE DATE.] 
 34.36     (a) Sections 5 and 9 are effective the day following final 
 35.1   enactment. 
 35.2      (b) Sections 1 to 4, 6 to 8, and 10 to 19 are effective 
 35.3   July 1, 2001. 
 35.4                              ARTICLE 7
 35.5                     MINNESOTA STATE COLLEGES AND
 35.6              UNIVERSITIES SYSTEM RETIREMENT PROVISIONS
 35.7      Section 1.  Minnesota Statutes 2000, section 354.41, 
 35.8   subdivision 4, is amended to read: 
 35.9      Subd. 4.  [MEMBERSHIP ELIGIBILITY FOR LABOR ORGANIZATION 
 35.10  EMPLOYEES.] (a) A person who is a member on an authorized leave 
 35.11  of absence and is employed as an employee or officer by the 
 35.12  Minnesota federation of teachers or its affiliated branches 
 35.13  within the state, the Minnesota education association, the 
 35.14  Minnesota association of school principals, the Minnesota 
 35.15  association of secondary school principals or the Minnesota a 
 35.16  labor organization that is the exclusive bargaining agent 
 35.17  representing teachers covered by this chapter or by an 
 35.18  association of school administrators may elect to be a 
 35.19  coordinated member of the association based on that employment, 
 35.20  subject to the limitations set forth in subdivisions 4a and 4b.  
 35.21  However, no person is entitled to membership under this section 
 35.22  if the person also is a member of a teachers retirement 
 35.23  association in a city of the first class organized under chapter 
 35.24  354A for the same period of service.  
 35.25     (b) The election must be made within 90 days of commencing 
 35.26  employment by the labor organization. 
 35.27     Sec. 2.  [354B.32] [TRANSFER OF FUNDS TO IRAP.] 
 35.28     A participant in the individual retirement account plan 
 35.29  established in this chapter who has less than ten years of 
 35.30  allowable service under the teachers retirement association or 
 35.31  the teachers retirement fund association may elect to transfer 
 35.32  an amount equal to the participant's accumulated member 
 35.33  contributions to the teachers retirement association or the 
 35.34  teachers retirement fund association, plus compound interest at 
 35.35  the rate of six percent per annum, to the individual retirement 
 35.36  account plan.  The transfers are irrevocable fund to fund 
 36.1   transfers, and in no event may the participant receive direct 
 36.2   payment of the money transferred prior to retirement.  If a 
 36.3   participant elects the contribution transfer, all of the 
 36.4   participant's allowable and formula service credit in the 
 36.5   teachers retirement association or the teachers retirement fund 
 36.6   association associated with the transferred amount is forfeited. 
 36.7      The executive director of the teachers retirement 
 36.8   association and the chief administrative officers of the 
 36.9   teachers retirement fund associations, in cooperation with the 
 36.10  chancellor of the Minnesota state colleges and universities, 
 36.11  shall notify participants who are eligible to transfer of their 
 36.12  right to transfer and the amount that they are eligible to 
 36.13  transfer, and shall, upon request, provide forms to implement 
 36.14  the transfer.  The chancellor of the Minnesota state colleges 
 36.15  and universities shall assist the teachers retirement 
 36.16  association and the teachers retirement fund associations in 
 36.17  developing transfer forms and in implementing the transfers.  
 36.18     Authority to elect a transfer under this section expires on 
 36.19  July 1, 2004. 
 36.20     Sec. 3.  [REPEALER.] 
 36.21     Minnesota Statutes 2000, section 354.41, subdivision 9, is 
 36.22  repealed. 
 36.23     Sec. 4.  [EFFECTIVE DATE.] 
 36.24     (a) Sections 1 to 3 are effective the day following final 
 36.25  enactment. 
 36.26     (b) Coverage under section 1 applies to employment as an 
 36.27  officer of the interfaculty organization on or after July 1, 
 36.28  1996. 
 36.29                             ARTICLE 8
 36.30                SUPPLEMENTAL PENSION PLAN PROVISIONS
 36.31     Section 1.  Minnesota Statutes 2000, section 356.24, 
 36.32  subdivision 1, is amended to read: 
 36.33     Subdivision 1.  [RESTRICTION; EXCEPTIONS.] It is unlawful 
 36.34  for a school district or other governmental subdivision or state 
 36.35  agency to levy taxes for, or contribute public funds to a 
 36.36  supplemental pension or deferred compensation plan that is 
 37.1   established, maintained, and operated in addition to a primary 
 37.2   pension program for the benefit of the governmental subdivision 
 37.3   employees other than: 
 37.4      (1) to a supplemental pension plan that was established, 
 37.5   maintained, and operated before May 6, 1971; 
 37.6      (2) to a plan that provides solely for group health, 
 37.7   hospital, disability, or death benefits; 
 37.8      (3) to the individual retirement account plan established 
 37.9   by chapter 354B; 
 37.10     (4) to a plan that provides solely for severance pay under 
 37.11  section 465.72 to a retiring or terminating employee; 
 37.12     (5) for employees other than personnel employed by the 
 37.13  state university board or the community college board and 
 37.14  covered by the board of trustees of the Minnesota state colleges 
 37.15  and universities supplemental retirement plan under chapter 
 37.16  354C, if provided for in a personnel policy of the public 
 37.17  employer or in the collective bargaining agreement between the 
 37.18  public employer and the exclusive representative of public 
 37.19  employees in an appropriate unit, in an amount matching employee 
 37.20  contributions on a dollar for dollar basis, but not to exceed an 
 37.21  employer contribution of $2,000 a year per employee; 
 37.22     (i) to the state of Minnesota deferred compensation plan 
 37.23  under section 352.96; or 
 37.24     (ii) in payment of the applicable portion of the 
 37.25  contribution made to any investment eligible under section 
 37.26  403(b) of the Internal Revenue Code, if the employing unit has 
 37.27  complied with any applicable pension plan provisions of the 
 37.28  Internal Revenue Code with respect to the tax-sheltered annuity 
 37.29  program during the preceding calendar year; or 
 37.30     (6) for personnel employed by the state university board or 
 37.31  the community college board and not covered by clause (5), to 
 37.32  the supplemental retirement plan under chapter 354C, if provided 
 37.33  for in a personnel policy or in the collective bargaining 
 37.34  agreement of the public employer with the exclusive 
 37.35  representative of the covered employees in an appropriate unit, 
 37.36  in an amount matching employee contributions on a dollar for 
 38.1   dollar basis, but not to exceed an employer contribution of 
 38.2   $2,700 a year for each employee; or 
 38.3      (7) to the laborer's national industrial pension fund for 
 38.4   the employees of a governmental subdivision who are covered by a 
 38.5   collective bargaining agreement that provides for coverage by 
 38.6   that fund and that sets forth a fund contribution rate, but not 
 38.7   to exceed an employer contribution of $2,000 per year per 
 38.8   employee. 
 38.9                              ARTICLE 9
 38.10               MINNEAPOLIS POLICE RELIEF ASSOCIATION
 38.11               MAIL-IN BALLOTING OR VOTING PROVISIONS
 38.12     Section 1.  Minnesota Statutes 2000, section 423B.05, is 
 38.13  amended by adding a subdivision to read: 
 38.14     Subd. 4.  [RIGHT TO PARTICIPATE BY MAIL-IN BALLOT.] Active 
 38.15  members, retired members, and surviving spouse members of the 
 38.16  relief association have the right to participate in the election 
 38.17  of board members of the association by mail-in ballot. 
 38.18     Sec. 2.  Minnesota Statutes 2000, section 423B.05, is 
 38.19  amended by adding a subdivision to read: 
 38.20     Subd. 5.  [MAIL-IN REFERENDUM ON VOTING BY MAIL.] (a) The 
 38.21  board of the association is authorized to submit the following 
 38.22  question in a binding member referendum to be conducted by mail: 
 38.23          "Shall the bylaws of the Minneapolis police relief
 38.24          association be amended to allow future proposed
 38.25          amendments to the bylaws of the relief association
 38.26          to be approved by a vote of relief association members
 38.27          by mail? 
 38.28                                     Yes .......
 38.29                                     No ........"
 38.30     (b) The board of the relief association shall conduct the 
 38.31  referendum by mailing a printed copy of the referendum question 
 38.32  and of the ballot to all active members, retired members, and 
 38.33  surviving spouse members in accordance with the voting 
 38.34  procedures that the board of the relief association used in the 
 38.35  most recent board election prior to March 1, 2001. 
 38.36     (c) Before submitting the referendum question to a vote by 
 39.1   the relief association membership, the relief association board 
 39.2   shall solicit the opinions of relief association members for the 
 39.3   question and against the question.  The solicitation for member 
 39.4   comments must be included in the next regular relief association 
 39.5   communication to relief association members following the 
 39.6   proposal of the bylaw amendment and on the Internet Web site of 
 39.7   the relief association.  The comment period continues for 30 
 39.8   days.  The executive director of the relief association shall 
 39.9   prepare a summary of the comments of relief association members 
 39.10  for and against the question in a fair and impartial manner.  A 
 39.11  draft of the summary document must be placed on the Internet Web 
 39.12  site of the relief association for five days.  If a relief 
 39.13  association board member challenges the objectivity of the draft 
 39.14  summary, the draft summary must be reviewed by a neutral third 
 39.15  party.  The neutral third party must be an accredited 
 39.16  professional mediator.  The relief association executive 
 39.17  director shall include the recommendations of the neutral third 
 39.18  party in the final summary document.  The written summary 
 39.19  prepared by the relief association executive director must be 
 39.20  included with the question and the ballot mailed to relief 
 39.21  association members. 
 39.22     (d) Balloting procedures must be designed to maintain 
 39.23  secrecy as to the identity of voting members.  The receipt of 
 39.24  returned ballots and the counting of those ballots must be 
 39.25  conducted by an accounting firm designated by the relief 
 39.26  association board to perform those functions. 
 39.27     (e) For adoption, the question must receive favorable votes 
 39.28  from two-thirds of the relief association members who return 
 39.29  ballots on the question. 
 39.30     (f) If the question in paragraph (a) is approved in the 
 39.31  referendum, future bylaw amendments must be conducted in the 
 39.32  same manner as provided in this subdivision. 
 39.33     Sec. 3.  [EFFECTIVE DATE.] 
 39.34     (a) Sections 1 and 2 are effective the day following final 
 39.35  enactment. 
 39.36     (b) If the referendum question in section 2 is approved, no 
 40.1   proposed bylaw amendment may be submitted for approval by mail 
 40.2   until January 1, 2002. 
 40.3                              ARTICLE 10
 40.4           VOLUNTEER FIRE RELIEF ASSOCIATION ADMINISTRATION
 40.5      Section 1.  Minnesota Statutes 2000, section 424A.04, is 
 40.6   amended by adding a subdivision to read:  
 40.7      Subd. 3.  [CONDITIONS ON RELIEF ASSOCIATION 
 40.8   CONSULTANTS.] (a) As a condition of performing consultant 
 40.9   services for a volunteer firefighter relief association, any 
 40.10  consultant must: 
 40.11     (1) post a bond in an amount equal to the potential adverse 
 40.12  financial impact applicable to the activities of the consultant 
 40.13  in the event of error, malfeasance, misfeasance, or nonfeasance; 
 40.14  or 
 40.15     (2) provide evidence of errors and omissions or 
 40.16  professional liability insurance in force in an amount equal to 
 40.17  the potential adverse financial impact applicable to the 
 40.18  activities of the consultant in the event of error, malfeasance, 
 40.19  misfeasance, or nonfeasance, from an insurance company licensed 
 40.20  to do business in this state. 
 40.21     (b) A consultant is any person who is or who represents to 
 40.22  the volunteer fire relief association that the person is: 
 40.23     (1) an actuary; 
 40.24     (2) a licensed public accountant or a certified public 
 40.25  accountant; 
 40.26     (3) an attorney; 
 40.27     (4) an investment advisor or manager, or an investment 
 40.28  counselor; 
 40.29     (5) an investment advisor or manager selection consultant; 
 40.30     (6) a pension benefit design advisor or consultant; or 
 40.31     (7) any other financial consultant. 
 40.32     (c) The bond must be posted with or the evidence of 
 40.33  insurance must be filed with the clerk of the municipality in 
 40.34  which the volunteer firefighter relief association is located. 
 40.35  If the volunteer firefighter relief association is associated 
 40.36  with or subsidiary to an independent nonprofit firefighter 
 41.1   corporation, the bond must be posted with or the evidence of 
 41.2   insurance must be filed with the clerk of the largest 
 41.3   municipality, by population, contracting with the independent 
 41.4   firefighting corporation. 
 41.5      Sec. 2.  [EFFECTIVE DATE.] 
 41.6      Section 1 is effective July 1, 2001. 
 41.7                              ARTICLE 11
 41.8               LOCAL POLICE AND PAID FIRE PENSION PLANS
 41.9      Section 1.  [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 
 41.10  HOC POSTRETIREMENT ADJUSTMENT.] 
 41.11     In addition to the current pensions and other retirement 
 41.12  benefits payable, the pensions and retirement benefits payable 
 41.13  to retired police officers and firefighters and their surviving 
 41.14  spouses by the Eveleth police and fire trust fund are increased 
 41.15  by $100 per month.  Increases are retroactive to January 1, 2001.
 41.16     Sec. 2.  [EFFECTIVE DATE.] 
 41.17     Section 1 is effective on the day after the date on which 
 41.18  the Eveleth city council and the chief clerical officer of the 
 41.19  city of Eveleth complete in a timely manner their compliance 
 41.20  with Minnesota Statutes, section 645.021, subdivisions 2 and 3. 
 41.21                             ARTICLE 12
 41.22         ONE PERSON OR SMALL GROUP SERVICE CREDIT PURCHASES
 41.23     Section 1.  [TEACHERS RETIREMENT ASSOCIATION; SABBATICAL 
 41.24  LEAVE OF ABSENCE SERVICE CREDIT PURCHASE.] 
 41.25     (a) An eligible person described in paragraph (b) is 
 41.26  entitled to purchase 0.34 of a year of allowable and formula 
 41.27  service credit from the teachers retirement association. 
 41.28     (b) An eligible person is a person who: 
 41.29     (1) was born on August 7, 1942; 
 41.30     (2) was employed by independent school district No. 11, 
 41.31  Anoka-Hennepin, on August 28, 1970; 
 41.32     (3) was on a sabbatical leave of absence from July 1, 1977, 
 41.33  to June 30, 1978; and 
 41.34     (4) due to inadvertent clerical error by independent school 
 41.35  district No. 11, Anoka-Hennepin, did not have full contributions 
 41.36  for the sabbatical leave made in a timely fashion and 0.654 of a 
 42.1   year of service credit was credited rather than one year of 
 42.2   service for the sabbatical leave. 
 42.3      (c) To purchase the service credit under this section, the 
 42.4   eligible person must pay to the teachers retirement association 
 42.5   the amount of the shortage in member contributions for the 
 42.6   sabbatical leave period plus interest from June 30, 1978, to the 
 42.7   date on which payment is made at an annual compound rate of 8.5 
 42.8   percent.  Authority to make this payment expires on July 1, 
 42.9   2002, or the date of termination of service, whichever is 
 42.10  earlier. 
 42.11     (d) If the eligible person makes the payment required in 
 42.12  paragraph (c) in a timely manner, independent school district 
 42.13  No. 11, Anoka-Hennepin, may pay the balance of the full prior 
 42.14  service credit purchase payment amount calculated under 
 42.15  Minnesota Statutes, section 356.55 or 356.551, whichever 
 42.16  applies.  If independent school district No. 11, Anoka-Hennepin, 
 42.17  does not pay the balance within 30 days of notification by the 
 42.18  executive director of the teachers retirement association of the 
 42.19  payment of the member contribution payment by the eligible 
 42.20  person under paragraph (c), the executive director shall notify 
 42.21  the commissioner of finance of that fact and the commissioner 
 42.22  shall deduct from any state aid payable to independent school 
 42.23  district No. 11, Anoka-Hennepin, that amount, plus interest on 
 42.24  that amount of 1.5 percent per month for each month or portion 
 42.25  of a month that has elapsed from the effective date of this 
 42.26  section. 
 42.27     (e) The eligible person shall provide any relevant 
 42.28  documentation related to eligibility to make this service credit 
 42.29  purchase that is required by the executive director of the 
 42.30  teachers retirement association. 
 42.31     Sec. 2.  [TEACHERS RETIREMENT ASSOCIATION; PURCHASE OF 
 42.32  EXTENDED LEAVE OF ABSENCE SERVICE CREDIT.] 
 42.33     (a) An eligible person, as described in paragraph (b), is 
 42.34  entitled to purchase allowable and formula service credit in the 
 42.35  teachers retirement association for the period specified in 
 42.36  paragraph (c) by making the payment specified in Minnesota 
 43.1   Statutes, section 356.55. 
 43.2      (b) An eligible person is a person who: 
 43.3      (1) was born on May 25, 1948; 
 43.4      (2) was employed by the Hutchinson public schools for 26 
 43.5   years; 
 43.6      (3) was granted an extended leave of absence on May 27, 
 43.7   1997; and 
 43.8      (4) due to a clerical error within the person's electrical 
 43.9   business, omitted payment of contributions under Minnesota 
 43.10  Statutes, section 354.094, for the 1997-1998 school year. 
 43.11     (c) The prior service credit purchase period is the 
 43.12  1997-1998, 1998-1999, and 1999-2000 school years. 
 43.13     (d) The service credit purchase authority expires on June 
 43.14  29, 2001, or the date of the person's retirement, whichever is 
 43.15  earlier. 
 43.16     Sec. 3.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PURCHASE 
 43.17  OF PREVIOUSLY UNCREDITED WHITE BEAR LAKE PUBLIC SCHOOL CLERICAL 
 43.18  SERVICE.] 
 43.19     (a) An eligible person described in paragraph (b) is 
 43.20  entitled to receive credit for one year of allowable service 
 43.21  from the public employees retirement association on June 30, 
 43.22  2001. 
 43.23     (b) An eligible person is a person who: 
 43.24     (1) was born on July 24, 1939; 
 43.25     (2) was initially employed by independent school district 
 43.26  No. 624, White Bear Lake, as a casual clerical employee on March 
 43.27  15, 1971; 
 43.28     (3) was subsequently employed as a full-time clerical 
 43.29  employee by independent school district No. 624, White Bear 
 43.30  Lake, from the 1973-1974 school year until the 1990-1991 school 
 43.31  year; 
 43.32     (4) was subsequently employed as a teacher by independent 
 43.33  school district No. 624, White Bear Lake, from August 26, 1991; 
 43.34  and 
 43.35     (5) was not included in coverage by the public employees 
 43.36  retirement association for full-time clerical employment during 
 44.1   the 1973-1974 school year. 
 44.2      (c) The prior service credit purchase payment must be 
 44.3   determined under Minnesota Statutes, section 356.55 or 356.551, 
 44.4   whichever provision is in effect, and must include the impact of 
 44.5   the purchase on the eligible person's prospective retirement 
 44.6   annuity from the teachers retirement association.  
 44.7   Notwithstanding any provision of Minnesota Statutes, section 
 44.8   356.55 or 356.551, to the contrary, independent school district 
 44.9   No. 624, White Bear Lake, is obligated to pay the full required 
 44.10  service credit payment, including any amount attributable to the 
 44.11  teachers retirement association.  If the school district does 
 44.12  not make payment of the service credit purchase amount by June 
 44.13  30, 2001, the executive director of the public employees 
 44.14  retirement association and the executive director of the 
 44.15  teachers retirement association shall notify the commissioner of 
 44.16  finance of the school district's failure.  Following 
 44.17  notification, the commissioner of finance shall deduct the 
 44.18  required amount from any state aid otherwise payable to 
 44.19  independent school district No. 624, White Bear Lake, and shall 
 44.20  transfer the appropriate amounts to the public employees 
 44.21  retirement fund and the teachers retirement fund. 
 44.22     (d) The eligible person must provide the executive director 
 44.23  of the public employees retirement association with necessary 
 44.24  documentation of the applicability of this section and with any 
 44.25  other relevant information that the executive director may 
 44.26  require. 
 44.27     Sec. 4.  [MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION; 
 44.28  SERVICE CREDIT PURCHASE AUTHORIZATION.] 
 44.29     (a) Notwithstanding any provision of law to the contrary, 
 44.30  an eligible person described in paragraph (b) is authorized to 
 44.31  purchase allowable service credit under procedures specified in 
 44.32  Minnesota Statutes, section 356.55 or 356.551, whichever is in 
 44.33  effect, from the Minneapolis teachers retirement fund 
 44.34  association for the period described in paragraph (c). 
 44.35     (b) An eligible person is a person who: 
 44.36     (1) was born on July 21, 1941; 
 45.1      (2) initially was employed as a teacher by independent 
 45.2   school district No. 281, Robbinsdale, in December 1962; 
 45.3      (3) began employment as a teacher in special school 
 45.4   district No. 1, Minneapolis, in August 1985; 
 45.5      (4) currently is a special education teacher at the Webster 
 45.6   open school; and 
 45.7      (5) had no retirement contributions or social security 
 45.8   contributions withheld from compensation by special school 
 45.9   district No. 1, Minneapolis, for the 1985-1986 school year. 
 45.10     (c) The allowable service credit purchase period is the 
 45.11  1985-1986 school year. 
 45.12     (d) The eligible person must provide all relevant 
 45.13  documentation of the applicability of the requirements set forth 
 45.14  in paragraph (b) and any other applicable information that the 
 45.15  executive director of the Minneapolis teachers retirement fund 
 45.16  association may request. 
 45.17     (e) Allowable service credit for the purchase period must 
 45.18  be granted by the Minneapolis teachers retirement fund 
 45.19  association to the eligible person upon receipt of the payment 
 45.20  amounts.  If the service credit purchase created additional 
 45.21  liabilities in the teachers retirement association, the 
 45.22  applicable portion of the full payment amounts shall be 
 45.23  transferred to that association. 
 45.24     (f) The prior service credit purchase authority expires on 
 45.25  July 1, 2001, or on the date of the termination of active 
 45.26  teaching service with special school district No. 1, 
 45.27  Minneapolis, by the eligible person, whichever occurs earlier. 
 45.28     Sec. 5.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PAYMENT 
 45.29  OF OMITTED SALARY DEDUCTIONS.] 
 45.30     Subdivision 1.  [APPLICATION.] A person who was born on 
 45.31  February 1, 1961, who was employed by Lac qui Parle county in 
 45.32  March 1989, June 1989, and July 1989, but who first had public 
 45.33  employees retirement association member contributions deducted 
 45.34  in August 1989, is entitled to purchase service credit from the 
 45.35  public employees retirement association for the service in 
 45.36  March, June, and July 1989. 
 46.1      Subd. 2.  [PAYMENT.] (a) The purchase payment amount for 
 46.2   the service credit purchase authorized in subdivision 1 is 
 46.3   governed by Minnesota Statutes, section 356.55 or 356.551, 
 46.4   whichever is applicable. 
 46.5      (b) To purchase the allowable service credit, the eligible 
 46.6   person must pay an amount equal to the employee contribution 
 46.7   rate or rates in effect during the service credit purchase 
 46.8   period applied to the actual salary in effect during that 
 46.9   period, plus 8.5 percent compound annual interest from the date 
 46.10  the contributions should have been made until the date of actual 
 46.11  payment. 
 46.12     (c) Upon receipt of the payment by the eligible person as 
 46.13  specified under paragraph (b), the executive director of the 
 46.14  public employees retirement association shall notify the chief 
 46.15  administrative officer of Lac Qui Parle county of that fact.  
 46.16  Within 30 days of that notification, Lac Qui Parle county shall 
 46.17  pay to the public employees retirement association the balance 
 46.18  of the service credit purchase payment amount under Minnesota 
 46.19  Statutes, section 356.55 or 356.551, whichever is in effect, 
 46.20  that is not paid by the eligible person. 
 46.21     (d) If Lac Qui Parle county does not make the payments 
 46.22  required by paragraph (c) in a timely fashion, the executive 
 46.23  director of the public employees retirement association shall 
 46.24  notify the commissioner of finance, who shall then deduct the 
 46.25  required amounts from any state aid payable to the county, plus 
 46.26  interest at the rate of one percent per month or part of a month 
 46.27  that has elapsed since the date on which the eligible person 
 46.28  made payment under paragraph (b). 
 46.29     Subd. 3.  [APPLICATION; DOCUMENTATION.] A person described 
 46.30  in subdivision 1 must apply to the executive director of the 
 46.31  public employees retirement association to make the purchase.  
 46.32  The application must be on a form provided by the executive 
 46.33  director and must include all necessary documentation of the 
 46.34  applicability of this section and any other relevant information 
 46.35  that the executive director may require. 
 46.36     Subd. 4.  [LIMITATION.] Authority under this section 
 47.1   expires on July 1, 2002, or upon termination of service, 
 47.2   whichever is earlier. 
 47.3      Sec. 6.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PAYMENT 
 47.4   OF OMITTED SALARY DEDUCTION.] 
 47.5      Subdivision 1.  [APPLICATION.] (a) An eligible person 
 47.6   described in paragraph (b) and an eligible person described in 
 47.7   paragraph (c) are authorized to purchase service credit in the 
 47.8   public employees retirement association general plan for the 
 47.9   period specified in paragraph (d). 
 47.10     (b) An eligible person is a person who: 
 47.11     (1) was born on February 11, 1948; 
 47.12     (2) is currently a member of the public employees 
 47.13  retirement association general plan; and 
 47.14     (3) is currently employed by the Minneapolis park board and 
 47.15  was first employed by that board on March 8, 1983. 
 47.16     (c) An eligible person is a person who: 
 47.17     (1) was born on August 12, 1936; 
 47.18     (2) is currently a member of the public employees 
 47.19  retirement association general plan; and 
 47.20     (3) is currently employed by the Minneapolis park board and 
 47.21  was first employed by that board on April 4, 1983. 
 47.22     (d) The service credit purchase period is any period of 
 47.23  previously uncredited service, unless properly excluded under 
 47.24  law, during which the eligible person in paragraph (b) or (c), 
 47.25  as applicable, was employed by the Minneapolis park board 
 47.26  following the date on which, under applicable requirements of 
 47.27  public employees retirement association law, the applicable 
 47.28  eligible person should have been reported for plan membership. 
 47.29     Subd. 2.  [PAYMENT.] The purchase payment for the service 
 47.30  credit purchases authorized in subdivision 1 is governed by 
 47.31  Minnesota Statutes 2000, section 356.55 or 356.551, whichever is 
 47.32  applicable. 
 47.33     Subd. 3.  [DOCUMENTATION.] A person described in 
 47.34  subdivision 1 must apply to the executive director of the public 
 47.35  employees retirement association to make the purchase.  The 
 47.36  application must be in writing and must include all necessary 
 48.1   documentation of the applicability of this section and any other 
 48.2   relevant information required by the executive director.  
 48.3      Subd. 4.  [APPLICATION DATE.] Authority to purchase service 
 48.4   credit under this section terminates on January 1, 2002, or upon 
 48.5   termination of the applicable person from service. 
 48.6      Sec. 7.  [PERA-COORDINATED RETIREMENT PLAN; SERVICE CREDIT 
 48.7   PURCHASE AUTHORIZED.] 
 48.8      (a) Notwithstanding any provision of law to the contrary, 
 48.9   an eligible person described in paragraph (b) is authorized to 
 48.10  purchase allowable service credit from the coordinated plan of 
 48.11  the public employees retirement system for the period described 
 48.12  in paragraph (c) by making a prior service credit purchase 
 48.13  payment required under Minnesota Statutes, section 356.55 or 
 48.14  356.551, whichever is applicable.  Notwithstanding the authority 
 48.15  in these sections, neither the Minneapolis employees retirement 
 48.16  fund nor the city of Minneapolis is authorized to pay any 
 48.17  portion of the purchase payment amount. 
 48.18     (b) An eligible person is a person who: 
 48.19     (1) is a current employee of the Minneapolis employees 
 48.20  retirement fund and is a current member of the coordinated plan 
 48.21  of the public employees retirement association and an inactive 
 48.22  member of the unclassified retirement plan of the Minnesota 
 48.23  state retirement system; 
 48.24     (2) was born on April 26, 1949; 
 48.25     (3) was employed as a full-time instructor temporary 
 48.26  classification on August 15, 1981, by the accounting department, 
 48.27  Carlson school of management, University of Minnesota; and 
 48.28     (4) was subsequently reappointed annually as a full-time 
 48.29  instructor temporary classification for an additional three 
 48.30  years and terminated employment on August 14, 1985. 
 48.31     (c) The allowable service credit purchase period is the 
 48.32  period described in paragraph (b), clauses (3) and (4). 
 48.33     (d) The eligible person must provide all relevant 
 48.34  documentation of the applicability of the requirements in 
 48.35  paragraph (b) and any other applicable information that the 
 48.36  executive director of the public employees retirement 
 49.1   association may request. 
 49.2      (e) Allowable service credit for the purchase period must 
 49.3   be granted by the coordinated plan of the public employees 
 49.4   retirement fund to the eligible person upon receipt of the prior 
 49.5   service credit purchase payment amount. 
 49.6      (f) The prior service credit purchase authority expires on 
 49.7   July 1, 2002, or on the date of termination of active service 
 49.8   covered by the public employees retirement association by the 
 49.9   eligible person, whichever occurs earlier. 
 49.10     Sec. 8.  [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; PURCHASE 
 49.11  OF PRIOR SERVICE CREDIT.] 
 49.12     Subdivision 1.  [AUTHORIZATION.] A member of the public 
 49.13  employees retirement association police and fire plan who was 
 49.14  born on August 2, 1951, who was employed by the city of Brainerd 
 49.15  as a police officer before February 29, 1996, and who has at 
 49.16  least three years of allowable service credit with the public 
 49.17  employees retirement association police and fire fund is 
 49.18  entitled to purchase up to ten years of allowable service credit 
 49.19  for employment by the city of Brainerd as a full-time police 
 49.20  officer in a position that was not covered by the police and 
 49.21  fire fund but was covered by a local relief association governed 
 49.22  by Minnesota Statutes, section 69.77.  This authorization 
 49.23  applies notwithstanding any contrary provision of Minnesota 
 49.24  Statutes, section 353A.10.  To purchase service credit, an 
 49.25  eligible person must make payments required under Minnesota 
 49.26  Statutes, section 356.55 or 356.551, whichever is applicable.  
 49.27  This authorization applies only if the person is not entitled to 
 49.28  receive a current or deferred service pension or retirement 
 49.29  annuity or a current disability benefit from another Minnesota 
 49.30  public pension plan, including a local police relief 
 49.31  association, for that service. 
 49.32     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A person who 
 49.33  desires to purchase service credit under subdivision 1 must 
 49.34  apply in writing with the executive director of the public 
 49.35  employees retirement association to make the purchase.  The 
 49.36  application must include all necessary documentation of the 
 50.1   person's qualifications to make the purchase, signed written 
 50.2   permission to allow the executive director to request and 
 50.3   receive necessary verification of applicable facts and 
 50.4   eligibility requirements, and any other relevant information 
 50.5   that the executive director may require. 
 50.6      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 50.7   for the purchase period must be granted by the public employees 
 50.8   retirement association to the purchasing person only upon 
 50.9   receipt of the purchase payment amount.  Payment must be made 
 50.10  before the person's effective date of retirement. 
 50.11     Sec. 9.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PURCHASE 
 50.12  OF SERVICE FOR UNCREDITED SERVICE AS A MEMBER OF THE ST. PAUL 
 50.13  CITY COUNCIL.] 
 50.14     Subdivision 1.  [APPLICABILITY.] This section applies to a 
 50.15  person: 
 50.16     (1) who was born September 10, 1938; 
 50.17     (2) who began service as a member of the St. Paul city 
 50.18  council in 1970; 
 50.19     (3) who was eligible for membership in the public employees 
 50.20  retirement association for the period from July 1, 1974, to 
 50.21  March 31, 1975; 
 50.22     (4) for whom no employer contributions were paid and no 
 50.23  employee contributions deducted by the city of St. Paul for the 
 50.24  period described in clause (3); and 
 50.25     (5) who retired September 1, 2000, and is currently 
 50.26  receiving retirement annuities from the St. Paul teachers 
 50.27  retirement fund association, the public employees retirement 
 50.28  association general plan, and the Minnesota state retirement 
 50.29  system general plan. 
 50.30     Subd. 2.  [PURCHASE OF SERVICE.] (a) A person described in 
 50.31  subdivision 1 may purchase service credit under Minnesota 
 50.32  Statutes, section 356.55, in the public employees retirement 
 50.33  association general plan for the period described in subdivision 
 50.34  1, clause (3). 
 50.35     (b) To purchase the allowable service credit, the eligible 
 50.36  person must pay an amount equal to the employee contribution 
 51.1   rate or rates in effect during the service credit purchase 
 51.2   period applied to the actual salary in effect during that 
 51.3   period, plus 8.5 percent compound annual interest from the date 
 51.4   the contributions should have been made until the date of actual 
 51.5   payment. 
 51.6      (c) Upon receipt of the payment under paragraph (b) by the 
 51.7   eligible person, the executive director of the public employees 
 51.8   retirement association shall notify the chief administrative 
 51.9   officer of the city of St. Paul of that fact.  Within 30 days of 
 51.10  that notification, the city of St. Paul shall pay to the public 
 51.11  employees retirement association the balance of the service 
 51.12  credit purchase payment amount under Minnesota Statutes, section 
 51.13  356.55, that is not paid by the eligible person. 
 51.14     (d) If the city of St. Paul does not make the payments 
 51.15  required by paragraph (c) in a timely fashion, the executive 
 51.16  director of the public employees retirement association shall 
 51.17  notify the commissioner of finance, who shall then deduct the 
 51.18  required amounts from any state aid payable to the city, plus 
 51.19  interest at the rate of one percent per month or part of a month 
 51.20  that has elapsed since the date on which the eligible person 
 51.21  made payment under paragraph (b). 
 51.22     Subd. 3.  [APPLICATION; DOCUMENTATION.] A person described 
 51.23  in subdivision 1 must apply to the executive director of the 
 51.24  public employees retirement association to make the purchase.  
 51.25  The application must be on a form provided by the executive 
 51.26  director and must include all necessary documentation of the 
 51.27  applicability of this section and any other relevant information 
 51.28  that the executive director may require. 
 51.29     Subd. 4.  [LIMITATION.] Authority under this section 
 51.30  expires on July 1, 2001. 
 51.31     Subd. 5.  [BENEFIT REVISION DATE.] The annuity of the 
 51.32  eligible individual under subdivision 1 is to be revised on the 
 51.33  first day of the month following the month in which the full 
 51.34  purchase price determined under subdivision 2 is received by the 
 51.35  public employees retirement association. 
 51.36     Subd. 6.  [LUMP-SUM PAYMENT.] The public employees 
 52.1   retirement association shall also pay the person described in 
 52.2   subdivision 1 a lump-sum amount equal to the difference between 
 52.3   the annuity received from the association from September 1, 
 52.4   2000, to the date of payment for the service credit and the 
 52.5   amount the person would have received with the additional 
 52.6   service credit purchased under this section. 
 52.7      Sec. 10.  [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; PURCHASE 
 52.8   OF SERVICE CREDIT FOR EMPLOYEE ERRONEOUSLY ENROLLED IN 
 52.9   PERA-GENERAL.] 
 52.10     (a) Notwithstanding any provision of law to the contrary, 
 52.11  an eligible person described in paragraph (b) is authorized to 
 52.12  elect to transfer past service credit for the period May 5, 
 52.13  1983, to August 29, 1987, in the general employee retirement 
 52.14  plan of the public employees retirement association to the 
 52.15  public employees police and fire retirement plan.  The transfer 
 52.16  includes the transfer of assets provided for in paragraph (c).  
 52.17  The transfer occurs following the receipt by the executive 
 52.18  director of the public employees retirement association of the 
 52.19  payment amounts specified in paragraphs (d) and (e). 
 52.20     (b) An eligible person is a person who: 
 52.21     (1) was born on October 23, 1956; 
 52.22     (2) was hired as a part-time town constable by White Bear 
 52.23  township from May 5, 1983, to August 29, 1987; and 
 52.24     (3) was covered by the general employees retirement plan of 
 52.25  the public employees retirement association rather than the 
 52.26  public employees police and fire retirement plan for this public 
 52.27  safety employer service.  
 52.28     (c) Assets equal to 86.31 percent of the actuarial accrued 
 52.29  liability of the general employees retirement plan of the public 
 52.30  employees retirement association determined with respect to the 
 52.31  eligible person by the actuary retained by the legislative 
 52.32  commission on pensions and retirement in accordance with 
 52.33  Minnesota Statutes, section 356.215, must be transferred from 
 52.34  the general employees retirement fund to the public employees 
 52.35  police and fire retirement fund.  The expense of the legislative 
 52.36  commission on pensions and retirement related to these 
 53.1   calculations must be reimbursed by the public employees police 
 53.2   and fire fund.  The transfer of assets must be made within 30 
 53.3   days of the date on which the eligible employee elects to 
 53.4   transfer past service credit to the public employees police and 
 53.5   fire retirement plan. 
 53.6      (d) To obtain the service credit transfer under this 
 53.7   section, the eligible person must pay to the public employees 
 53.8   police and fire retirement plan the difference between the 
 53.9   member contribution rate of the general employees retirement 
 53.10  plan of the public employees retirement association and the 
 53.11  member contribution rate of the public employees police and fire 
 53.12  retirement plan for the period May 5, 1983, to August 29, 1987, 
 53.13  applied to the eligible person's average salary for that period, 
 53.14  plus 8.5 percent compound annual interest on the total from July 
 53.15  1, 1985, to the date of payment.  Authority for the eligible 
 53.16  person to make the payment under this paragraph expires on July 
 53.17  1, 2002. 
 53.18     (e) If the eligible person makes the required payment under 
 53.19  paragraph (d) in a timely manner, the executive director of the 
 53.20  public employees retirement association shall notify the 
 53.21  clerk-treasurer of White Bear township of that fact.  Within 30 
 53.22  days of that notification, White Bear township shall pay to the 
 53.23  public employees police and fire fund:  (1) the balance of the 
 53.24  payment amount calculated under Minnesota Statutes, section 
 53.25  356.55 or 356.551, whichever is in effect, that exceeds the 
 53.26  total of the amount transferred under paragraph (c) and the 
 53.27  amount paid by the eligible person under paragraph (d); and (2) 
 53.28  the cost associated with the actuarial calculation under 
 53.29  paragraph (c).  If White Bear township does not make the payment 
 53.30  required by the paragraph in a timely fashion, the executive 
 53.31  director of the public employees retirement association shall 
 53.32  notify the commissioner of finance of that fact, who shall then 
 53.33  deduct the required amount from any subsequent state aid or 
 53.34  other state payments to the township, plus interest at the rate 
 53.35  of one percent per month or a part of a month that has elapsed 
 53.36  since the date on which the eligible person made payment under 
 54.1   paragraph (d). 
 54.2      (f) The eligible person must elect to make the service 
 54.3   credit transfer on a form prescribed by the executive director 
 54.4   of the public employees retirement association.  The eligible 
 54.5   person must supply all necessary documentation of the 
 54.6   applicability of this section and any other relevant information 
 54.7   that the executive director may require. 
 54.8      (g) Authority under this section expires on July 1, 2002, 
 54.9   or upon the retirement of the eligible person from the general 
 54.10  employees retirement plan of the public employees retirement 
 54.11  association or from the public employees police and fire 
 54.12  retirement plan, whichever is earlier. 
 54.13     Sec. 11.  [EFFECTIVE DATE.] 
 54.14     (a) Sections 1 to 10 are effective the day following final 
 54.15  enactment. 
 54.16     (b) Section 8 is repealed effective May 16, 2002.