1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to retirement; various statewide and local 1.3 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;and2.11 (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;and2.18 (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 coveredstatewidepension plan or of a 2.34 committee of the governing board of thestatewidecovered 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" meansany: 3.14 (1) a home rule charter or statutory city,; 3.15 (2) an organized townor; 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;or8.29 (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;and12.9 (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 planunder a collective bargaining15.27agreementwho 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;and15.30 (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 planunder a collective bargaining agreement16.1 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,andeconomic 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 anotherstate, governmental subdivision of another state, or the26.26federal governmentgovernmental 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,and354.538, 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 29.8state, governmental subdivision of another state, or the federal29.9governmentgovernmental 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,and354A.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 1,20012003. 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 1,20012003. 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 bythe35.12Minnesota federation of teachers or its affiliated branches35.13within the state, the Minnesota education association, the35.14Minnesota association of school principals, the Minnesota35.15association of secondary school principals or the Minnesotaa 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;or37.30 (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.