HF 1647

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 05/18/2011 04:56pm

A bill for an act
relating to retirement; including pre-May 1, 2011, hires of the Red Wing Port
Authority in the general employees retirement plan of the Public Employees
Retirement Association; providing an optional procedure for the correction of
erroneous member deductions and employer contributions for the city of Duluth
and the Duluth Airport Authority; revising postretirement adjustments, reducing
the refund interest rate, eliminating interest on reemployed annuitant earnings
limitation deferral amounts, and lowering the deferred annuity augmentation rate
for the St. Paul Teachers Retirement Fund Association; increasing various vesting
requirements for the Duluth Teachers Retirement Fund Association; revising the
default retirement plan coverage determination for Minnesota State Colleges
and Universities System employees; revising statutory salary scale and payroll
growth actuarial assumptions; extending a financial report reporting deadline
date for the 2010 fire state aid allocation; authorizing the use of special actuarial
work in determining the 2009 and 2010 special fund financial requirements and
minimum municipal obligations for the White Bear Lake Fire Department Relief
Association; authorizing a purchase of allowable service credit or salary credit
for public employees and teachers; authorizing an additional employer-funded
survivor benefit for a Minnesota Department of Transportation employee killed
while engaged in emergency response to Minnesota River flooding; amending
Minnesota Statutes 2010, sections 353.01, subdivisions 2a, 6; 354A.011, by
adding a subdivision; 354A.094, subdivision 3; 354A.29, by adding subdivisions;
354A.31, subdivisions 1, 5, 6; 354A.35, subdivision 2; 354A.36, subdivision
1; 354A.37; 354B.21, subdivisions 1, 2, 3, 3a, 5, 6, by adding subdivisions;
356.215, subdivision 8; 356.47, subdivision 3; repealing Minnesota Statutes
2010, sections 354A.29, subdivision 3; 354B.21, subdivision 3c; 354B.32.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

PUBLIC EMPLOYEES RETIREMENT ASSOCIATION

Section 1.

Minnesota Statutes 2010, section 353.01, subdivision 2a, is amended to read:

Subd. 2a.

Included employees; mandatory membership.

(a) Public employees
whose salary exceeds $425 in any month and who are not specifically excluded under
subdivision 2b or who have not been provided an option to participate under subdivision
2d, whether individually or by action of the governmental subdivision, must participate as
members of the association with retirement coverage by the general employees retirement
plan under this chapter, the public employees police and fire retirement plan under this
chapter, or the local government correctional employees retirement plan under chapter
353E, whichever applies. Membership commences as a condition of their employment on
the first day of their employment or on the first day that the eligibility criteria are met,
whichever is later. Public employees include but are not limited to:

(1) persons whose salary meets the threshold in this paragraph from employment in
one or more positions within one governmental subdivision;

(2) elected county sheriffs;

(3) persons who are appointed, employed, or contracted to perform governmental
functions that by law or local ordinance are required of a public officer, including, but
not limited to:

(i) town and city clerk or treasurer;

(ii) county auditor, treasurer, or recorder;

(iii) city manager as defined in section 353.028 who does not exercise the option
provided under subdivision 2d; or

(iv) emergency management director, as provided under section 12.25;

(4) physicians under section 353D.01, subdivision 2, who do not elect public
employees defined contribution plan coverage under section 353D.02, subdivision 2;

(5) full-time employees of the Dakota County Agricultural Society; deleted text begin and
deleted text end

(6) employees of the Minneapolis Firefighters Relief Association or Minneapolis
Police Relief Association who are not excluded employees under subdivision 2b due
to coverage by the relief association pension plan and who elected general employee
retirement plan coverage before August 20, 2009 new text begin ; and
new text end

new text begin (7) employees of the Red Wing Port Authority who were first employed by the
Red Wing Port Authority before May 1, 2011, and who are not excluded employees
under subdivision 2b new text end .

(b) A public employee or elected official who was a member of the association on
June 30, 2002, based on employment that qualified for membership coverage by the public
employees retirement plan or the public employees police and fire plan under this chapter,
or the local government correctional employees retirement plan under chapter 353E as of
June 30, 2002, retains that membership for the duration of the person's employment in that
position or incumbency in elected office. Except as provided in subdivision 28, the person
shall participate as a member until the employee or elected official terminates public
employment under subdivision 11a or terminates membership under subdivision 11b.

(c) If the salary of an included public employee is less than $425 in any subsequent
month, the member retains membership eligibility.

(d) For the purpose of participation in the MERF division of the general employees
retirement plan, public employees include employees who were members of the former
Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as
members of the MERF division of the association.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2010, section 353.01, subdivision 6, is amended to read:

Subd. 6.

Governmental subdivision.

(a) "Governmental subdivision" means a
county, city, town, school district within this state, or a department, unit or instrumentality
of state or local government, or any public body established under state or local
authority that has a governmental purpose, is under public control, is responsible for the
employment and payment of the salaries of employees of the entity, and receives a major
portion of its revenues from taxation, fees, assessments or from other public sources.

(b) Governmental subdivision also means the Public Employees Retirement
Association, the League of Minnesota Cities, the Association of Metropolitan
Municipalities, charter schools formed under section 124D.10, service cooperatives
exercising retirement plan participation under section 123A.21, subdivision 5, joint powers
boards organized under section 471.59, subdivision 11, paragraph (a), family service
collaboratives and children's mental health collaboratives organized under section 471.59,
subdivision 11, paragraph (b) or (c), provided that the entities creating the collaboratives
are governmental units that otherwise qualify for retirement plan membership, public
hospitals owned or operated by, or an integral part of, a governmental subdivision or
governmental subdivisions, the Association of Minnesota Counties, the Minnesota
Inter-county Association, the Minnesota Municipal Utilities Association, the Metropolitan
Airports Commission, the University of Minnesota with respect to police officers covered
by the public employees police and fire retirement plan, the Minneapolis Employees
Retirement Fund for employment initially commenced after June 30, 1979, the Range
Association of Municipalities and Schools, soil and water conservation districts, economic
development authorities created or operating under sections 469.090 to 469.108, the Port
Authority of the city of St. Paul, new text begin the Red Wing Port Authority, new text end the Spring Lake Park Fire
Department, incorporated, the Lake Johanna Volunteer Fire Department, incorporated,
the Red Wing Environmental Learning Center, the Dakota County Agricultural Society,
Hennepin Healthcare System, Inc., and the Minneapolis Firefighters Relief Association
and Minneapolis Police Relief Association with respect to staff covered by the Public
Employees Retirement Association general plan.

(c) Governmental subdivision does not mean any municipal housing and
redevelopment authority organized under the provisions of sections 469.001 to 469.047;
or any port authority organized under sections 469.048 to 469.089 other than the Port
Authority of the city of St. Paul deleted text begin ; deleted text end new text begin and other than the Red Wing Port Authority; new text end or any
hospital district organized or reorganized prior to July 1, 1975, under sections 447.31 to
447.37 or the successor of the district; or the board of a family service collaborative or
children's mental health collaborative organized under sections 124D.23, 245.491 to
245.495, or 471.59, if that board is not controlled by representatives of governmental units.

(d) A nonprofit corporation governed by chapter 317A or organized under Internal
Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a
governmental subdivision unless the entity has obtained a written advisory opinion from
the United States Department of Labor or a ruling from the Internal Revenue Service
declaring the entity to be an instrumentality of the state so as to provide that any future
contributions by the entity on behalf of its employees are contributions to a governmental
plan within the meaning of Internal Revenue Code, section 414(d).

(e) A public body created by state or local authority may request membership on
behalf of its employees by providing sufficient evidence that it meets the requirements in
paragraph (a).

(f) An entity determined to be a governmental subdivision is subject to the reporting
requirements of this chapter upon receipt of a written notice of eligibility from the
association.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text begin VALIDATION OF PAST RETIREMENT COVERAGE AND
CONTRIBUTIONS FOR RED WING PORT AUTHORITY EMPLOYEES.
new text end

new text begin (a) Retirement coverage by the general employees retirement plan of the Public
Employees Retirement Association, allowable service credit, and salary credit for
employees of the Red Wing Port Authority who were so employed after December 31,
1984, and were first so employed before May 1, 2011, who had monthly salary in any
month of at least $325 until June 30, 1988, and who had monthly salary in any month of
at least $425 after June 30, 1988, who were not otherwise excluded under the applicable
edition of Minnesota Statutes, section 353.01, subdivision 2b, and who had member
deductions taken and transferred in a timely manner to the general employees retirement
fund before the effective date of this section are hereby validated.
new text end

new text begin (b) Notwithstanding any provision of Minnesota Statutes, chapter 353, to the
contrary, employee contributions deducted from employees of the Red Wing Port
Authority described in paragraph (a) before the effective date of this section and associated
employer contributions are valid assets of the general employees retirement fund and are
not subject to refund or adjustment for erroneous receipt except as provided in Minnesota
Statutes, section 353.32, subdivision 1 or 2; or 353.34, subdivisions 1 and 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4. new text begin CITY OF DULUTH AND DULUTH AIRPORT AUTHORITY;
CORRECTING ERRONEOUS EMPLOYEE DEDUCTIONS, EMPLOYER
CONTRIBUTIONS, AND ADJUSTING OVERPAID BENEFITS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin Notwithstanding any provisions of Minnesota Statutes,
section 353.27, subdivisions 7 and 7b, or Minnesota Statutes 2010, chapters 353 and 356,
to the contrary, this section establishes the procedures by which the executive director of
the Public Employees Retirement Association shall adjust erroneous employee deductions
and employer contributions paid on behalf of active employees and former members
by the city of Duluth and by the Duluth Airport Authority on amounts determined by
the executive director to be invalid salary under Minnesota Statutes, section 353.01,
subdivision 10, reported between January 1, 1997, and October 23, 2008, and for
adjusting benefits that were paid to former members and their beneficiaries based upon
invalid salary amounts.
new text end

new text begin Subd. 2. new text end

new text begin Refunds of employee deductions. new text end

new text begin (a) The executive director shall refund
to active employees or former members who are not receiving retirement annuities or
benefits all erroneous employee deductions identified by the city of Duluth or by the
Duluth Airport Authority as deductions taken from amounts determined to be invalid
salary. The refunds must include interest at the rate specified in Minnesota Statutes,
section 353.34, subdivision 2, from the date each invalid employee deduction was received
through the date each refund is paid.
new text end

new text begin (b) The refund payment for active employees must be sent to the applicable members
who are employees of the city of Duluth or who are employees of the Duluth Airport
Authority, whichever is applicable.
new text end

new text begin (c) Refunds to former members must be mailed by the executive director of the
Public Employees Retirement Association to the former member's last known address.
new text end

new text begin Subd. 3. new text end

new text begin Benefit adjustments. new text end

new text begin (a) For a former member who is receiving a
retirement annuity or disability benefit, or for a person receiving an optional annuity or
survivor benefit, the executive director must:
new text end

new text begin (1) adjust the annuity or benefit payment to the correct monthly benefit amount
payable by reducing the average salary under Minnesota Statutes, section 353.01,
subdivision 17a, by the invalid salary amounts;
new text end

new text begin (2) determine the amount of the overpaid benefits paid from the effective date of the
annuity or benefit payment to July 1, 2009;
new text end

new text begin (3) calculate the amount of employee deductions taken in error on invalid salary,
including interest at the rate specified in Minnesota Statutes, section 353.34, subdivision
2, from the date each invalid employee deduction was received through the first day of the
month in which the refund under paragraph (b), or action to recover net overpayments
under subdivision 4, occurs; and
new text end

new text begin (4) determine the net amount of overpaid benefits by reducing the amount of the
overpaid annuity or benefit as determined in clause (2) by the amount of the erroneous
employee deductions with interest determined in clause (3).
new text end

new text begin (b) If a former member's erroneous employee deductions plus interest determined
under this section exceeds the amount of the person's overpaid benefits, the balance must
be refunded to the person to whom the annuity or benefit is being paid.
new text end

new text begin (c) The executive director shall recover the net amount of all overpaid annuities or
benefits as provided under subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Employer credits and obligations. new text end

new text begin (a) The executive director shall
provide a credit without interest to the city of Duluth and to the Duluth Airport Authority
for the amount of that governmental subdivision's erroneous employer contributions. The
credit must first be used to offset the net amount of the overpaid retirement annuities and
the disability and survivor benefits that remain after applying the amount of erroneous
employee deductions with interest as provided under subdivision 3, paragraph (a),
clause (4). The remaining erroneous employer contributions, if any, must be credited
against future employer contributions required to be paid by the applicable governmental
subdivision. If the overpaid benefits exceed the employer contribution credit, the balance
of the overpaid benefits is the obligation of the city of Duluth or the Duluth Airport
Authority, whichever is applicable.
new text end

new text begin (b) The Public Employees Retirement Association board of trustees shall determine
the period of time and manner for the collection of overpaid retirement annuities and
benefits, if any, from the city of Duluth and the Duluth Airport Authority.
new text end

new text begin Subd. 5. new text end

new text begin Treatment of invalid salary amounts in process. new text end

new text begin (a) The governing body
of the city of Duluth or the Duluth Airport Authority, as applicable, may elect to limit the
period of adjustment for amounts determined to be invalid salary to apply to the fiscal
year in which the error was reported to, and the salary determined to be invalid by, the
Public Employees Retirement Association, and the immediate two preceding fiscal years,
by a resolution of the applicable governing body transmitted to the Public Employees
Retirement Association executive director within 30 days following the effective date
of this section.
new text end

new text begin (b) If the governing body of the applicable governmental subdivision declines the
treatment permitted under paragraph (a) or fails to submit a resolution in a timely manner,
the statute of limitations specified in paragraph (a) does not apply.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) This section is effective for the city of Duluth the day after
the Duluth city council and the chief clerical officer of the city of Duluth timely complete
their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for
members who are, and former members who were, employees of the city of Duluth.
new text end

new text begin (b) This section is effective for the Duluth Airport Authority the day after the Duluth
Airport Authority board of directors and the chief clerical officer of the Duluth Airport
Authority timely complete their compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3, for members who are, and former members who were, employees
of the Duluth Airport Authority.
new text end

ARTICLE 2

TEACHER RETIREMENT COVERAGE

Section 1.

Minnesota Statutes 2010, section 354A.011, is amended by adding a
subdivision to read:

new text begin Subd. 29. new text end

new text begin Vesting; vested. new text end

new text begin (a) "Vesting" or "vested" means having entitlement to a
nonforfeitable annuity or benefit from a coordinated member program administered by a
teachers retirement fund association by having credit for sufficient allowable service under
paragraph (b) or (c), whichever applies.
new text end

new text begin (b) For purposes of qualifying for an annuity or a benefit as a coordinated plan
member of the St. Paul Teachers Retirement Fund Association, the teacher is vested when
the teacher has accrued credit for at least three years of service.
new text end

new text begin (c) For purposes of qualifying for an annuity or a benefit as a coordinated plan
member of the Duluth Teachers Retirement Fund Association:
new text end

new text begin (1) a teacher who first became a member of the plan before July 1, 2010, is vested
when the teacher has accrued at least three years of service; and
new text end

new text begin (2) a teacher who first became a member of the plan after June 30, 2010, is vested
when the teacher has accrued at least five years of service.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2010, section 354A.094, subdivision 3, is amended to read:

Subd. 3.

Qualified part-time teacher program participation requirements.

(a)
A teacher in the public schools of a city of the first class who deleted text begin has three years or more
allowable service in the applicable retirement fund association deleted text end new text begin is vested, new text end or deleted text begin three deleted text end new text begin who has
combined new text end years deleted text begin or more deleted text end of full-time teaching service in Minnesota public elementary
schools, Minnesota secondary schools, and Minnesota State Colleges and Universities
system new text begin at least equal to the number of years specified for vesting in the applicable first
class city teacher plan, new text end may, by agreement with the board of the employing district, be
assigned to teaching service within the district in a part-time teaching position. The
agreement must be executed before October 1 of the year for which the teacher requests to
make retirement contributions under subdivision 4. A copy of the executed agreement
must be filed with the executive director of the retirement fund association. If the copy
of the executed agreement is filed with the association after October 1 of the year for
which the teacher requests to make retirement contributions under subdivision 4, the
employing school district shall pay a fine of $5 for each calendar day that elapsed since
the October 1 due date. The association may not accept an executed agreement that is
received by the association more than 15 months late. The association may not waive
the fine required by this section.

(b) Notwithstanding paragraph (a), if the teacher is also a legislator:

(1) the agreement in paragraph (a) must be executed before March 1 of the school
year for which the teacher requests to make retirement contributions under subdivision
4; and

(2) the fines specified in paragraph (a) apply if the employing unit does not file the
executed agreement with the executive director of the applicable Teachers Retirement
Fund Association by March 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2010, section 354A.29, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Eligibility for payment of postretirement adjustments. new text end

new text begin (a) Annually,
after June 30, the board of trustees of the St. Paul Teachers Retirement Fund Association
must determine the amount of any postretirement adjustment using the procedures in this
subdivision and subdivision 8 or 9, whichever is applicable.
new text end

new text begin (b) On January 1, each eligible person who has been receiving an annuity or benefit
under the articles of incorporation, the bylaws, or this chapter for at least three calendar
months as of the end of the last day of the previous calendar year is eligible to receive a
postretirement increase as specified in subdivision 8 or 9.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 4.

Minnesota Statutes 2010, section 354A.29, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Calculation of postretirement adjustments; transitional provision. new text end

new text begin (a)
For purposes of computing postretirement adjustments for eligible benefit recipients of the
St. Paul Teachers Retirement Fund Association, the accrued liability funding ratio based
on the actuarial value of assets of the plan as determined by the most recent actuarial
valuation prepared under sections 356.214 and 356.215 determines the postretirement
increase, as follows:
new text end

		new text begin Funding ratio new text end		new text begin Postretirement increase new text end
		new text begin Less than 80 percent new text end		new text begin 1 percent new text end
		new text begin At least 80 percent but less than 90 percent new text end		new text begin 2 percent new text end

new text begin (b) The amount determined under paragraph (a) is the full postretirement increase
to be applied as a permanent increase to the regular payment of each eligible member
on January 1 of the next calendar year. For any eligible member whose effective date
of benefit commencement occurred during the calendar year before the postretirement
increase is applied, the full increase amount must be prorated on the basis of whole
calendar quarters in benefit payment status in the calendar year prior to the January 1 on
which the postretirement increase is applied, calculated to the third decimal place.
new text end

new text begin (c) If the accrued liability funding ratio based on the actuarial value of assets is at
least 90 percent, this subdivision expires and subsequent postretirement increases must be
paid as specified in subdivision 9.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 5.

Minnesota Statutes 2010, section 354A.29, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Calculation of postretirement adjustments. new text end

new text begin (a) This subdivision applies
if subdivision 8 has expired.
new text end

new text begin (b) A percentage adjustment must be computed and paid under this subdivision to
eligible persons under subdivision 7. This adjustment is determined by reference to the
Consumer Price Index for urban wage earners and clerical workers all items index as
reported by the Bureau of Labor Statistics within the United States Department of Labor
each year as part of the determination of annual cost-of-living adjustments to recipients of
federal old-age, survivors, and disability insurance. For calculations of postretirement
adjustments under paragraph (c), "average third quarter Consumer Price Index value"
means the sum of the monthly index values as initially reported by the Bureau of Labor
Statistics for the months of July, August, and September, divided by three.
new text end

new text begin (c) Before January 1 of each year, the executive director must calculate the amount
of the postretirement adjustment by dividing the most recent average third quarter index
value by the same average third quarter index value from the previous year, subtract one
from the resulting quotient, and express the result as a percentage amount, which must be
rounded to the nearest one-tenth of one percent.
new text end

new text begin (d) The amount calculated under paragraph (c) is the full postretirement adjustment
to be applied as a permanent increase to the regular payment of each eligible member
on January 1 of the next calendar year. For any eligible member whose effective date
of benefit commencement occurred during the calendar year before the postretirement
adjustment is applied, the full increase amount must be prorated on the basis of whole
calendar quarters in benefit payment status in the calendar year prior to the January 1 on
which the postretirement adjustment is applied, calculated to the third decimal place.
new text end

new text begin (e) The adjustment must not be less than zero nor greater than five percent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 6.

Minnesota Statutes 2010, section 354A.31, subdivision 1, is amended to read:

Subdivision 1.

Age and service requirements.

Any coordinated member or former
coordinated member of the new text begin Duluth Teachers Retirement Fund Association or of the new text end St.
Paul Teachers Retirement Fund Association who has ceased to render teaching service for
the school district in which the teachers retirement fund association exists new text begin , who is vested new text end
and who has either attained the age of at least 55 years deleted text begin with not less than three years of
allowable service credit deleted text end or received credit for not less than 30 years of allowable service
regardless of age, shall be entitled upon written application to a retirement annuity. deleted text begin Any
coordinated member or former coordinated member of the Duluth Teachers Retirement
Fund Association who has ceased to render teaching service for the school district in
which the teacher retirement fund association exists and who has either attained the age of
at least 55 years with not less than three years of allowable service credit if the member
became an employee before July 1, 2010, or not less than five years of allowable service
credit if the member became an employee after June 30, 2010, or received service credit
for not less than 30 years of allowable service regardless of age, shall be entitled upon
written application to a retirement annuity.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2010, section 354A.31, subdivision 5, is amended to read:

Subd. 5.

Unreduced normal retirement annuity.

Upon retirement at normal
retirement age deleted text begin with at least three years of service credit deleted text end , a new text begin vested new text end coordinated member is
entitled to a normal retirement annuity calculated under subdivision 4 or 4a, whichever
applies.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2010, section 354A.31, subdivision 6, is amended to read:

Subd. 6.

Reduced retirement annuity.

This subdivision applies only to a person
who first became a coordinated member or a member of a pension fund listed in section
356.30, subdivision 3, before July 1, 1989, and whose annuity is higher when calculated
using the retirement annuity formula percentage in subdivision 4, paragraph (c), or
subdivision 4a, paragraph (c), in conjunction with this subdivision than when calculated
under subdivision 4, paragraph (d), or subdivision 4a, paragraph (d), in conjunction with
subdivision 7.

(a) Upon retirement at an age before normal retirement age deleted text begin with three years
of service credit deleted text end or prior to age 62 with at least 30 years of service credit, a new text begin vested
new text end coordinated member shall be entitled to a retirement annuity in an amount equal to the
normal retirement annuity calculated using the retirement annuity formula percentage in
subdivision 4, paragraph (c), or subdivision 4a, paragraph (c), reduced by one-quarter of
one percent for each month that the coordinated member is under normal retirement age if
the coordinated member has less than 30 years of service credit or is under the age of 62 if
the coordinated member has at least 30 years of service credit.

(b) Any coordinated member whose attained age plus credited allowable service
totals 90 years is entitled, upon application, to a retirement annuity in an amount equal to
the normal retirement annuity calculated using the retirement annuity formula percentage
in subdivision 4, paragraph (c), or subdivision 4a, paragraph (c), without any reduction by
reason of early retirement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2010, section 354A.35, subdivision 2, is amended to read:

Subd. 2.

Death while eligible to retire; surviving spouse optional annuity.

(a)
The surviving spouse of a new text begin vested new text end coordinated member who deleted text begin has credit for at least three
years of service and deleted text end dies prior to retirement may elect to receive, instead of a refund with
interest under subdivision 1, an annuity equal to the 100 percent joint and survivor annuity
the member could have qualified for had the member terminated service on the date of
death. The surviving spouse eligible for a surviving spouse benefit under this paragraph
may apply for the annuity at any time after the date on which the deceased employee
would have attained the required age for retirement based on the employee's allowable
service. A surviving spouse eligible for surviving spouse benefits under paragraph (b)
or (c) may apply for an annuity at any time after the member's death. The member's
surviving spouse shall be paid a joint and survivor annuity under section 354A.32 and
computed under section 354A.31.

(b) If the member was under age 55 and has credit for at least 30 years of allowable
service on the date of death, the surviving spouse may elect to receive a 100 percent joint
and survivor annuity based on the age of the member and surviving spouse on the date
of death. The annuity is payable using the full early retirement reduction under section
354A.31, subdivision 6, paragraph (a), to age 55 and one-half of the early retirement
reduction from age 55 to the age payment begins.

(c) If deleted text begin the deleted text end new text begin a vested new text end member was under age 55 deleted text begin and has credit for at least three years of
allowable service deleted text end on the date of death but did not yet qualify for retirement, the surviving
spouse may elect to receive the 100 percent joint and survivor annuity based on the age
of the member and the survivor at the time of death. The annuity is payable using the
full early retirement reduction under section 354A.31, subdivision 6 or 7, to age 55 and
one-half of the early retirement reduction from age 55 to the date payment begins.

new text begin (d) new text end Sections 354A.37, subdivision 2, and 354A.39 apply to a deferred annuity or
surviving spouse benefit payable under this section. The benefits are payable for the life
of the surviving spouse, or upon expiration of the term certain benefit payment under
subdivision 2b.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2010, section 354A.36, subdivision 1, is amended to read:

Subdivision 1.

Minimum age, service, and salary requirements.

Any coordinated
member who deleted text begin has at least three years of allowable service credit deleted text end new text begin is vested new text end , new text begin who new text end has an
average salary of at least $75 per month, and new text begin who new text end has become totally and permanently
disabled shall be entitled to a disability benefit. If the disabled coordinated member's
allowable service credit has not been continuous, at least two years of the required
allowable service shall be required to have been rendered subsequent to the last
interruption in service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2010, section 354A.37, is amended to read:

354A.37 REFUNDS new text begin ; DEFERRED ANNUITY new text end .

Subdivision 1.

Eligibility for refund.

Any coordinated member who ceases to
render teaching service for the school district in which the teachers retirement fund
association is located shall be entitled to a refund in lieu of any other annuity or benefit
from the teachers retirement fund association new text begin , new text end other than an annuity from a tax shelter
annuity program and fund as authorized deleted text begin pursuant to deleted text end new text begin under new text end section 354A.021, subdivision
5. The amount of the refund deleted text begin shall deleted text end new text begin must new text end be calculated deleted text begin pursuant to deleted text end new text begin under new text end subdivision 3. The
application for the refund deleted text begin shall deleted text end new text begin must new text end not be made prior to 30 days after the cessation of
teaching services if the coordinated member has not resumed active teaching services for
the district. Payment of the refund deleted text begin shall deleted text end new text begin must new text end be made within 90 days after receipt of the
refund application by the board.

Subd. 2.

Eligibility for deferred retirement annuity.

(a) Any coordinated member
who ceases to render teaching services for the school district in which the teachers
retirement fund association is located, with sufficient allowable service credit to meet
the minimum service requirements specified in section 354A.31, subdivision 1, shall be
entitled to a deferred retirement annuity in lieu of a refund deleted text begin pursuant to deleted text end new text begin under new text end subdivision
1. The deferred retirement annuity deleted text begin shall deleted text end new text begin must new text end be computed deleted text begin pursuant to deleted text end new text begin under new text end section
354A.31 and shall be augmented as provided in this subdivision. The deferred annuity
deleted text begin shall commence deleted text end new text begin commences new text end upon application after the person on deferred status attains at
least the minimum age specified in section 354A.31, subdivision 1.

(b) The monthly annuity amount that had accrued when the member ceased to
render teaching service must be augmented from the first day of the month following the
month during which the member ceased to render teaching service to the effective date
of retirement. There is no augmentation if this period is less than three months. deleted text begin For a
member of the St. Paul Teachers Retirement Fund Association, the rate of augmentation
is three percent compounded annually until January 1 of the year following the year in
which the former member attains age 55, and five percent compounded annually after that
date to the effective date of retirement if the employee became an employee before July
1, 2006, and at 2.5 percent compounded annually if the employee becomes an employee
after June 30, 2006. For a member of the Duluth Teachers Retirement Fund Association, deleted text end
The rate of augmentation is three percent compounded annually until January 1 of the year
following the year in which the former member attains age 55, five percent compounded
annually after that date to July 1, 2012, and two percent compounded annually after
that date to the effective date of retirement if the employee became an employee before
July 1, 2006, and at 2.5 percent compounded annually to July 1, 2012, and two percent
compounded annually after that date to the effective date of retirement if the employee
deleted text begin becomes deleted text end new text begin became new text end an employee after June 30, 2006. If a person has more than one period of
uninterrupted service, a separate average salary determined under section 354A.31 must
be used for each period, and the monthly annuity amount related to each period must be
augmented as provided in this subdivision. The sum of the augmented monthly annuity
amounts determines the total deferred annuity payable. If a person repays a refund, the
service restored by the repayment must be considered as continuous with the next period
of service for which the person has credit with the fund. If a person does not render
teaching services in any one fiscal year or more consecutive fiscal years and then resumes
teaching service, the formula percentages used from the date of resumption of teaching
service are those applicable to new members. The mortality table and interest assumption
used to compute the annuity are the table established by the fund to compute other
annuities, and the interest assumption under section 356.215 in effect when the member
retires. A period of uninterrupted service for the purpose of this subdivision means a
period of covered teaching service during which the member has not been separated from
active service for more than one fiscal year.

(c) The augmentation provided by this subdivision applies to the benefit provided
in section 354A.35, subdivision 2. The augmentation provided by this subdivision does
not apply to any period in which a person is on an approved leave of absence from an
employer unit.

Subd. 3.

Computation of refund amount.

A former coordinated member deleted text begin of the St.
Paul Teachers Retirement Fund Association who qualifies for a refund under subdivision 1
shall receive a refund equal to the amount of the former coordinated member's accumulated
employee contributions with interest at the rate of six percent per annum compounded
annually. A former coordinated member of the Duluth Teachers Retirement Fund
Association deleted text end who qualifies for a refund under subdivision 1 shall receive a refund equal
to the amount of the former coordinated member's accumulated employee contributions
with interest at the rate of six percent per annum compounded annually to July 1, 2010,
new text begin if the person is a former member of the Duluth Teachers Retirement Fund Association, or
to July 1, 2011, if the person is a former member of the St. Paul Teachers Retirement Fund
Association, new text end and four percent per annum compounded annually thereafter.

Subd. 4.

Certain refunds at normal retirement age.

Any coordinated member
who has attained the normal retirement age with less than ten years of allowable service
credit and has terminated active teaching service shall be entitled to a refund in lieu of a
proportionate annuity deleted text begin pursuant to deleted text end new text begin under new text end section 356.32. The refund deleted text begin for a member of the
St. Paul Teachers Retirement Fund Association shall be equal to the coordinated member's
accumulated employee contributions plus interest at the rate of six percent compounded
annually. The refund for a member of the Duluth Teachers Retirement Fund Association
shall deleted text end new text begin must new text end be equal to the coordinated member's accumulated employee contributions plus
interest at the rate of six percent compounded annually to July 1, 2010, new text begin if the person is a
former member of the Duluth Teachers Retirement Fund Association, or to July 1, 2011, if
the person is a former member of the St. Paul Teachers Retirement Fund Association, new text end and
four percent per annum compounded annually thereafter.

Subd. 5.

Unclaimed minimal refund amounts; disposition.

If a coordinated
member ceases to render teaching services for the school district in which the teachers
retirement fund association is located but does not apply for a refund deleted text begin pursuant to deleted text end new text begin under
new text end subdivision 1 within five years after the end of the plan year next following the cessation
of teaching services and if the amount of the refund that the former coordinated member
would have been entitled to deleted text begin pursuant to deleted text end new text begin under new text end subdivision 3 is $500 or less, then the
amount of the refund and any accumulated interest deleted text begin shall deleted text end new text begin must new text end be credited to and become
a part of the retirement fund. If the former coordinated member subsequently renders
teaching services for the school district in which the teachers retirement fund association
is located and the amount of the refund that the former coordinated member would have
previously been entitled to deleted text begin pursuant to deleted text end new text begin under new text end subdivision 3 is at least $5, then the amount
of the refund and any accumulated interest deleted text begin shall be deleted text end new text begin must be new text end restored to the member's
individual account. If the amount of the refund that the former coordinated member
would have previously been entitled to deleted text begin pursuant to deleted text end new text begin under new text end subdivision 3 is at least $5 and
the former coordinated member applies for a refund deleted text begin pursuant to deleted text end new text begin under new text end subdivision 1 or
for an annuity deleted text begin pursuant to deleted text end new text begin under new text end sections 354A.31 and 354A.32 or section 356.30, the
amount of the refund and any accumulated interest deleted text begin shall deleted text end new text begin must new text end be restored to the member's
individual account.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 12.

Minnesota Statutes 2010, section 354B.21, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

The following persons are eligible to have coverage by
the individual retirement account plan deleted text begin and to be participants in the deleted text end new text begin or coverage by another
new text end plan new text begin as further specified in this section new text end :

(1) employees of the board who are employed as faculty in an employment
classification included in the state university instructional unit or the state college
instructional unit under section 179A.10, subdivision 2;

(2) the chancellor and employees of the board in eligible unclassified administrative
positions;

(3) the employees in eligible unclassified administrative positions in the state
universities;

(4) the employees in eligible unclassified administrative positions in the technical
colleges; and

(5) the employees in eligible unclassified administrative positions of the Minnesota
Office of Higher Education or of the community colleges.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 13.

Minnesota Statutes 2010, section 354B.21, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Required notice; counseling. new text end

new text begin (a) No later than 90 days before the end of
any applicable election period specified in this section, the employer must provide to a
person beginning work in a position subject to this section for which an option to elect
alternative retirement plan coverage is authorized the following information:
new text end

new text begin (1) the default retirement coverage;
new text end

new text begin (2) election procedures, if applicable, for electing coverage other than the default
coverage; and
new text end

new text begin (3) the Web site and the telephone number for the plan providing default coverage
and comparable information for the plan that the person is eligible to elect.
new text end

new text begin (b) The election of coverage forms must include a certification statement that the
employee has received and reviewed materials on the optional coverage and the default
coverage prior to making the election.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 14.

Minnesota Statutes 2010, section 354B.21, subdivision 2, is amended to read:

Subd. 2.

Coverage; election.

(a) new text begin An new text end eligible deleted text begin persons who were employed by the
Minnesota State Colleges and Universities System on or after June 30, 2009, unless
otherwise deleted text end new text begin person employed by the board has the default coverage specified in subdivision
3, or other subdivisions of this section, whichever is applicable, and retains that coverage
for the period of covered employment unless a timely election to change that coverage
is made as new text end specified in this section deleted text begin , are deleted text end new text begin .
new text end

new text begin (b) An eligible person under subdivision 3, paragraph (b) or (c), is new text end authorized to elect
prospective Teachers Retirement Association plan coverage deleted text begin rather than deleted text end new text begin .
new text end

new text begin (c) An eligible person under subdivision 3, paragraph (d), is authorized to elect
prospective new text end coverage by the plan established by this chapter.

new text begin (d) new text end The election deleted text begin of prospective Teachers Retirement Association plan coverage deleted text end
new text begin under paragraph (a) new text end must be made within one year of commencing eligible Minnesota
State Colleges and Universities system employment. If an election is not made within the
specified election period due to a termination of Minnesota State Colleges and Universities
system employment, an election may be made within 90 days of returning to eligible
Minnesota State Colleges and Universities system employment. new text begin Except as specified in
paragraph (f), new text end all elections are irrevocable. deleted text begin Before making an election, the eligible person
is covered by the plan indicated as default coverage under subdivision 3.
deleted text end

deleted text begin (b) deleted text end new text begin (e) new text end Except as provided in paragraph deleted text begin (c) deleted text end new text begin (f) new text end , a purchase of service credit in the
Teachers Retirement Association plan for any period or periods of Minnesota State
Colleges and Universities system employment occurring before the election under
deleted text begin paragraph (a) deleted text end new text begin this section new text end is prohibited.

deleted text begin (c) deleted text end new text begin (f) new text end Notwithstanding new text begin other new text end paragraphs deleted text begin (a) and (b) deleted text end new text begin in this subdivision new text end , a faculty
member who is a member of the individual retirement account plan deleted text begin who first achieves
tenure or its equivalent at a Minnesota state college or university after June 30, 2009, deleted text end may
elect to transfer retirement coverage deleted text begin under deleted text end new text begin to new text end the teachers retirement plan within one year
of the faculty member new text begin first new text end achieving tenure or its equivalent at a Minnesota state college
or university. The faculty member electing Teachers Retirement Association coverage
under this paragraph must purchase service credit in the Teachers Retirement Association
for the entire period of time covered under the individual retirement account plan and the
purchase payment amount must be determined under section 356.551. The Teachers
Retirement Association may charge a faculty member transferring coverage a reasonable
fee to cover the costs associated with computing the actuarial cost of purchasing service
credit and making the transfer. A faculty member transferring from the individual
retirement account plan to the Teachers Retirement Association may use any balances to
the credit of the faculty member in the individual retirement account plan, any balances
to the credit of the faculty member in the higher education supplemental retirement plan
established under chapter 354C, or any source specified in section 356.441, subdivision 1,
to purchase the service credit in the Teachers Retirement Association. If the total amount
of payments under this paragraph are less than the total purchase payment amount under
section 356.551, the payment amounts must be refunded to the applicable source. The
retirement coverage transfer and service credit purchase authority under this paragraph
expires with respect to any Minnesota State Colleges and Universities System faculty
initially hired after June 30, 2014.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 15.

Minnesota Statutes 2010, section 354B.21, subdivision 3, is amended to read:

Subd. 3.

Default coverage.

(a) Prior to making an election under subdivision 2,
or if an eligible person fails to elect coverage by the plan under subdivision 2 or if the
person fails to make a timely election, the deleted text begin following retirement deleted text end coverage new text begin specified in
this subdivision new text end applies deleted text begin : deleted text end new text begin .
new text end

deleted text begin (1) for employees of the board who are employed in faculty positions in the technical
colleges, in the state universities or in the community colleges, the retirement coverage
is by the plan established by this chapter;
deleted text end

deleted text begin (2) for employees of the board who are employed in faculty positions in the technical
colleges, the retirement coverage is by the plan established by this chapter unless on June
30, 1997, the employee was a member of the Teachers Retirement Association established
under chapter 354 and then the retirement coverage is by the Teachers Retirement
Association, or, unless the employee was a member of a first class city teacher retirement
fund established under chapter 354A on June 30, 1995, and then the retirement coverage
is by the Duluth Teachers Retirement Fund Association if the person was a member of
that plan on June 30, 1995, or the Teachers Retirement Association if the person was a
member of the former Minneapolis Teachers Retirement Fund Association on June 30,
1995, or the St. Paul Teachers Retirement Fund Association if the person was a member
of that plan on June 30, 1995; and
deleted text end

deleted text begin (3) for employees of the board who are employed in eligible unclassified
administrative positions, the retirement coverage is by the plan established by this chapter.
deleted text end

deleted text begin (b) If an employee fails to correctly certify prior membership in the Teachers
Retirement Association to the Minnesota State colleges and Universities system, the
system shall not pay interest on employee contributions, employer contributions, and
additional employer contributions to the Teachers Retirement Association under section
354.52, subdivision 4.
deleted text end

new text begin (b) If an eligible person is employed by the board before July 1, 2011, in an eligible
unclassified administrative position or in a faculty position in a technical college,
community college, or state university, the retirement coverage is by the plan established
by this chapter, unless otherwise specified in this section.
new text end

new text begin (c) An eligible person described in paragraph (b), except that first employment by
the board is on or after July 1, 2011, has retirement coverage by the plan established by
this chapter if the eligible person has no:
new text end

new text begin (1) allowable service credit in any plan listed in section 356.30, subdivision 3; or
new text end

new text begin (2) prior employment covered by the state unclassified employees retirement
program under chapter 352D.
new text end

new text begin (d) An eligible person described in paragraph (c) has retirement coverage by the
Teachers Retirement Association if the person has:
new text end

new text begin (1) prior employment covered by the state unclassified employees retirement
program under chapter 352D and has not withdrawn or transferred assets from that
account; or
new text end

new text begin (2) allowable service credit in a plan listed in section 356.30, subdivision 3.
new text end

new text begin (e) To ensure that coverage is provided by the proper plan, the employee must
certify to the board the existence of any service credit in any plan listed in section 356.30,
subdivision 3, or whether the person retains a state unclassified employees retirement
program account. If an employee fails to correctly certify prior membership in a plan
or the existence of an unclassified program account, the Minnesota State Colleges and
Universities system and its board shall be held harmless, and notwithstanding any law to
the contrary, any resulting cost or financial liability becomes the employee's responsibility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 16.

Minnesota Statutes 2010, section 354B.21, subdivision 3a, is amended to read:

Subd. 3a.

deleted text begin Continuation of deleted text end Plan coverage deleted text begin in deleted text end new text begin and election; new text end certain deleted text begin instances deleted text end new text begin past
service technical college faculty new text end .

deleted text begin For a person with retirement coverage by a first class
city teacher retirement fund association instead of the individual retirement account plan
under subdivision 3, clause (2), coverage by the applicable retirement fund association
continues deleted text end new text begin (a) Notwithstanding subdivision 3, if an employee of the board was employed in
a faculty position in a technical college on June 30, 1997, with coverage by the Teachers
Retirement Association, the employee retains that coverage. If the employee was a
technical college faculty member on June 30, 1995, covered by a first class city teacher
retirement fund established under chapter 354A, the retirement coverage continues with
the Duluth Teachers Retirement Fund Association or the St. Paul Teachers Retirement
Fund Association, whichever is applicable. If the person was a technical college faculty
member on June 30, 1995, covered by the former Minneapolis Teachers Retirement Fund
Association, the Teachers Retirement Association shall provide coverage.
new text end

new text begin (b) An employee under paragraph (a) who has coverage by a first class city teacher
fund association retains that coverage new text end for the duration of the person's employment by
the board deleted text begin of Trustees of the Minnesota State Colleges and Universities deleted text end unless, within
deleted text begin 90 days deleted text end new text begin one year new text end of a change in employment within the Minnesota State Colleges and
Universities system, the person elects the individual retirement account plan for all future
employment by the board deleted text begin of Trustees of the Minnesota State Colleges and Universities deleted text end . new text begin
The election is irrevocable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 17.

Minnesota Statutes 2010, section 354B.21, subdivision 5, is amended to read:

Subd. 5.

Payment for certain prior uncovered service.

(a) A person employed in a
faculty position new text begin or in an eligible unclassified administrative position new text end by the board who was
initially excluded from participation in the individual retirement account plan coverage,
who was not covered by any other Minnesota public pension plan for that service, and
who is subsequently eligible to participate in the individual retirement account plan may
make member contributions for that period of prior uncovered teaching employment or
eligible unclassified administrative employment with the board.

(b) The member contributions for prior uncovered board service are the amount
that the person would have paid if the prior service had been covered employment. The
payment must be made to the individual retirement account plan administrator and may be
made only by payroll deduction. The payment must be made by the later of:

(1) 45 days of the start of covered employment; or

(2) the end of the fiscal year in which covered employment began.

(c) The board must contribute an amount to match any contribution made by a plan
participant under this subdivision.

(d) Payments of contributions for prior uncovered board service under this
subdivision must be invested in the same manner as the regular contributions made by or
on behalf of the plan participant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 18.

Minnesota Statutes 2010, section 354B.21, subdivision 6, is amended to read:

Subd. 6.

Continuation of coverage.

new text begin Except as otherwise specified in this section,
new text end once a person is employed in a position that qualifies for participation in the individual
retirement account plan and elects to participate in the plan, all subsequent service by the
person as a faculty member new text begin or in an eligible unclassified administrative position new text end employed
by the board or other employing unit is covered by the individual retirement account plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 19.

Minnesota Statutes 2010, section 354B.21, is amended by adding a
subdivision to read:

new text begin Subd. 7. new text end

new text begin Coverage; certain part-time employees. new text end

new text begin A person employed in a
part-time faculty position or in a part-time eligible unclassified administrative position
who does not meet the definition of covered employment under section 354B.20,
subdivision 4, because the employment does not meet the threshold required under that
provision, must certify prior membership in the Teachers Retirement Association to the
Minnesota State Colleges and Universities system. If the certification is incorrect, the
employee, and not the employer, is required to pay interest on the employee and employer
contributions, and, if applicable, on the employer additional contributions to the Teachers
Retirement Association under section 354.52, subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 20.

Minnesota Statutes 2010, section 356.47, subdivision 3, is amended to read:

Subd. 3.

Payment.

(a) Beginning one year after the reemployment withholding
period ends relating to the reemployment that gave rise to the limitation, and the filing of a
written application, the retired member is entitled to the payment, in a lump sum, of the
value of the person's amount under subdivision 2, plus annual compound interest. For the
general state employees retirement plan, the correctional state employees retirement plan,
the general employees retirement plan of the Public Employees Retirement Association,
the public employees police and fire retirement plan, the local government correctional
employees retirement plan, and the teachers retirement plan, the annual interest rate is six
percent from the date on which the amount was deducted from the retirement annuity to
the date of payment or until January 1, 2011, whichever is earlier, and no interest after
January 1, 2011. For the Duluth Teachers Retirement Fund Association, the annual interest
is six percent from the date on which the amount was deducted from the retirement annuity
to the date of payment or until June 30, 2010, whichever is earlier, and new text begin with new text end no interest
new text begin accrual new text end after June 30, 2010. For the St. Paul Teachers Retirement Fund Association, the
annual interest is the rate of six percent from the date that the amount was deducted from
the retirement annuity to the date of payment new text begin or June 30, 2011, whichever is earlier, and
with no interest accrual after June 30, 2011 new text end .

(b) The written application must be on a form prescribed by the chief administrative
officer of the applicable retirement plan.

(c) If the retired member dies before the payment provided for in paragraph (a) is
made, the amount is payable, upon written application, to the deceased person's surviving
spouse, or if none, to the deceased person's designated beneficiary, or if none, to the
deceased person's estate.

(d) In lieu of the direct payment of the person's amount under subdivision 2, on
or after the payment date under paragraph (a), if the federal Internal Revenue Code so
permits, the retired member may elect to have all or any portion of the payment amount
under this section paid in the form of a direct rollover to an eligible retirement plan as
defined in section 402(c) of the federal Internal Revenue Code that is specified by the
retired member. If the retired member dies with a balance remaining payable under this
section, the surviving spouse of the retired member, or if none, the deceased person's
designated beneficiary, or if none, the administrator of the deceased person's estate may
elect a direct rollover under this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 21. new text begin BYLAW AUTHORIZATION.
new text end

new text begin Consistent with the requirements of Minnesota Statutes, section 354A.12,
subdivision 4, the board of the St. Paul Teachers Retirement Fund Association is
authorized to revise the bylaws and articles of incorporation so that the requirements of
this act, where applicable, apply to the basic program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 22. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2010, section 354A.29, subdivision 3, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2010, sections 354B.21, subdivision 3c; and 354B.32, new text end new text begin are
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

ARTICLE 3

ACTUARIAL ASSUMPTION UPDATE

Section 1.

Minnesota Statutes 2010, section 356.215, subdivision 8, is amended to read:

Subd. 8.

Interest and salary assumptions.

(a) The actuarial valuation must use
the applicable following preretirement interest assumption and the applicable following
postretirement interest assumption:

plan		preretirement interest rate assumption	postretirement interest rate assumption
general state employees retirement plan		8.5%	6.0%
correctional state employees retirement plan		8.5	6.0
State Patrol retirement plan		8.5	6.0
legislators retirement plan		8.5	6.0
elective state officers retirement plan		8.5	6.0
judges retirement plan		8.5	6.0
general public employees retirement plan		8.5	6.0
public employees police and fire retirement plan		8.5	6.0
local government correctional service retirement plan		8.5	6.0
teachers retirement plan		8.5	6.0
Duluth teachers retirement plan		8.5	8.5
St. Paul teachers retirement plan		8.5	8.5
Minneapolis Police Relief Association		6.0	6.0
Fairmont Police Relief Association		5.0	5.0
Minneapolis Fire Department Relief Association		6.0	6.0
Virginia Fire Department Relief Association		5.0	5.0
Bloomington Fire Department Relief Association		6.0	6.0
local monthly benefit volunteer firefighters relief associations		5.0	5.0

(b) Before July 1, 2010, the actuarial valuation must use the applicable following
single rate future salary increase assumption, the applicable following modified single
rate future salary increase assumption, or the applicable following graded rate future
salary increase assumption:

(1) single rate future salary increase assumption

plan	future salary increase assumption
legislators retirement plan		5.0%
judges retirement plan		4.0
Minneapolis Police Relief Association		4.0
Fairmont Police Relief Association		3.5
Minneapolis Fire Department Relief Association		4.0
Virginia Fire Department Relief Association		3.5
Bloomington Fire Department Relief Association		4.0

(2) age-related select and ultimate future salary increase assumption or graded rate
future salary increase assumption

plan	future salary increase assumption
deleted text begin general state employees retirement plan deleted text end	deleted text begin select calculation and assumption A deleted text end
correctional state employees retirement plan	assumption deleted text begin G deleted text end new text begin D new text end
State Patrol retirement plan	assumption deleted text begin F deleted text end new text begin C new text end
deleted text begin public employees police and fire fund retirement plan deleted text end	deleted text begin assumption deleted text end deleted text begin B deleted text end
local government correctional service retirement plan	assumption deleted text begin F deleted text end new text begin C new text end
deleted text begin teachers retirement plan deleted text end	deleted text begin assumption C deleted text end
Duluth teachers retirement plan	assumption deleted text begin D deleted text end new text begin A new text end
St. Paul teachers retirement plan	assumption deleted text begin E deleted text end new text begin B new text end

The select calculation is: during the
designated select period, a designated
percentage rate is multiplied by the result of
the designated integer minus T, where T is
the number of completed years of service,
and is added to the applicable future salary
increase assumption. The designated select
period is five years and the designated
integer is five for the general state employees
retirement plan. The designated select period
is ten years and the designated integer is ten
for all other retirement plans covered by
this clause. The designated percentage rate
is: (1) 0.2 percent for the correctional state
employees retirement plan, the State Patrol
retirement plan, deleted text begin the public deleted text end deleted text begin employees police
and fire plan, deleted text end and the local government
correctional service new text begin retirement new text end plan; (2)
0.6 percent for the general state employees
retirement plan; and (3) 0.3 percent for the
teachers retirement plan, the Duluth Teachers
Retirement Fund Association, and the St.
Paul Teachers Retirement Fund Association.
The select calculation for the Duluth Teachers
Retirement Fund Association is 8.00 percent
per year for service years one through seven,
7.25 percent per year for service years seven
and eight, and 6.50 percent per year for
service years eight and nine.

The ultimate future salary increase assumption is:

age	deleted text begin A deleted text end	deleted text begin B deleted text end	deleted text begin C deleted text end	deleted text begin D deleted text end new text begin A new text end	deleted text begin E deleted text end new text begin B new text end	deleted text begin F deleted text end new text begin C new text end	deleted text begin G deleted text end new text begin D new text end
16	deleted text begin 5.95% deleted text end	deleted text begin 11.00% deleted text end	deleted text begin 7.70% deleted text end	8.00%	6.90%	7.7500%	7.2500%
17	deleted text begin 5.90 deleted text end	deleted text begin 11.00 deleted text end	deleted text begin 7.65 deleted text end	8.00	6.90	7.7500	7.2500
18	deleted text begin 5.85 deleted text end	deleted text begin 11.00 deleted text end	deleted text begin 7.60 deleted text end	8.00	6.90	7.7500	7.2500
19	deleted text begin 5.80 deleted text end	deleted text begin 11.00 deleted text end	deleted text begin 7.55 deleted text end	8.00	6.90	7.7500	7.2500
20	deleted text begin 5.75 deleted text end	deleted text begin 11.00 deleted text end	deleted text begin 5.50 deleted text end	6.90	6.90	7.7500	7.2500
21	deleted text begin 5.75 deleted text end	deleted text begin 11.00 deleted text end	deleted text begin 5.50 deleted text end	6.90	6.90	7.1454	6.6454
22	deleted text begin 5.75 deleted text end	deleted text begin 10.50 deleted text end	deleted text begin 5.50 deleted text end	6.90	6.90	7.0725	6.5725
23	deleted text begin 5.75 deleted text end	deleted text begin 10.00 deleted text end	deleted text begin 5.50 deleted text end	6.85	6.85	7.0544	6.5544
24	deleted text begin 5.75 deleted text end	deleted text begin 9.50 deleted text end	deleted text begin 5.50 deleted text end	6.80	6.80	7.0363	6.5363
25	deleted text begin 5.75 deleted text end	deleted text begin 9.00 deleted text end	deleted text begin 5.50 deleted text end	6.75	6.75	7.0000	6.5000
26	deleted text begin 5.75 deleted text end	deleted text begin 8.70 deleted text end	deleted text begin 5.50 deleted text end	6.70	6.70	7.0000	6.5000
27	deleted text begin 5.75 deleted text end	deleted text begin 8.40 deleted text end	deleted text begin 5.50 deleted text end	6.65	6.65	7.0000	6.5000
28	deleted text begin 5.75 deleted text end	deleted text begin 8.10 deleted text end	deleted text begin 5.50 deleted text end	6.60	6.60	7.0000	6.5000
29	deleted text begin 5.75 deleted text end	deleted text begin 7.80 deleted text end	deleted text begin 5.50 deleted text end	6.55	6.55	7.0000	6.5000
30	deleted text begin 5.75 deleted text end	deleted text begin 7.50 deleted text end	deleted text begin 5.50 deleted text end	6.50	6.50	7.0000	6.5000
31	deleted text begin 5.75 deleted text end	deleted text begin 7.30 deleted text end	deleted text begin 5.50 deleted text end	6.45	6.45	7.0000	6.5000
32	deleted text begin 5.75 deleted text end	deleted text begin 7.10 deleted text end	deleted text begin 5.50 deleted text end	6.40	6.40	7.0000	6.5000
33	deleted text begin 5.75 deleted text end	deleted text begin 6.90 deleted text end	deleted text begin 5.50 deleted text end	6.35	6.35	7.0000	6.5000
34	deleted text begin 5.75 deleted text end	deleted text begin 6.70 deleted text end	deleted text begin 5.50 deleted text end	6.30	6.30	7.0000	6.5000
35	deleted text begin 5.75 deleted text end	deleted text begin 6.50 deleted text end	deleted text begin 5.50 deleted text end	6.25	6.25	7.0000	6.5000
36	deleted text begin 5.75 deleted text end	deleted text begin 6.30 deleted text end	deleted text begin 5.50 deleted text end	6.20	6.20	6.9019	6.4019
37	deleted text begin 5.75 deleted text end	deleted text begin 6.10 deleted text end	deleted text begin 5.50 deleted text end	6.15	6.15	6.8074	6.3074
38	deleted text begin 5.75 deleted text end	deleted text begin 5.90 deleted text end	deleted text begin 5.40 deleted text end	6.10	6.10	6.7125	6.2125
39	deleted text begin 5.75 deleted text end	deleted text begin 5.70 deleted text end	deleted text begin 5.30 deleted text end	6.05	6.05	6.6054	6.1054
40	deleted text begin 5.75 deleted text end	deleted text begin 5.50 deleted text end	deleted text begin 5.20 deleted text end	6.00	6.00	6.5000	6.0000
41	deleted text begin 5.75 deleted text end	deleted text begin 5.40 deleted text end	deleted text begin 5.10 deleted text end	5.90	5.95	6.3540	5.8540
42	deleted text begin 5.75 deleted text end	deleted text begin 5.30 deleted text end	deleted text begin 5.00 deleted text end	5.80	5.90	6.2087	5.7087
43	deleted text begin 5.65 deleted text end	deleted text begin 5.20 deleted text end	deleted text begin 4.90 deleted text end	5.70	5.85	6.0622	5.5622
44	deleted text begin 5.55 deleted text end	deleted text begin 5.10 deleted text end	deleted text begin 4.80 deleted text end	5.60	5.80	5.9048	5.4078
45	deleted text begin 5.45 deleted text end	deleted text begin 5.00 deleted text end	deleted text begin 4.70 deleted text end	5.50	5.75	5.7500	5.2500
46	deleted text begin 5.35 deleted text end	deleted text begin 4.95 deleted text end	deleted text begin 4.60 deleted text end	5.40	5.70	5.6940	5.1940
47	deleted text begin 5.25 deleted text end	deleted text begin 4.90 deleted text end	deleted text begin 4.50 deleted text end	5.30	5.65	5.6375	5.1375
48	deleted text begin 5.15 deleted text end	deleted text begin 4.85 deleted text end	deleted text begin 4.50 deleted text end	5.20	5.60	5.5822	5.0822
49	deleted text begin 5.05 deleted text end	deleted text begin 4.80 deleted text end	deleted text begin 4.50 deleted text end	5.10	5.55	5.5404	5.0404
50	deleted text begin 4.95 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 4.50 deleted text end	5.00	5.50	5.5000	5.0000
51	deleted text begin 4.85 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 4.50 deleted text end	4.90	5.45	5.4384	4.9384
52	deleted text begin 4.75 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 4.50 deleted text end	4.80	5.40	5.3776	4.8776
53	deleted text begin 4.65 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 4.50 deleted text end	4.70	5.35	5.3167	4.8167
54	deleted text begin 4.55 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 4.50 deleted text end	4.60	5.30	5.2826	4.7826
55	deleted text begin 4.45 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 4.50 deleted text end	4.50	5.25	5.2500	4.7500
56	deleted text begin 4.35 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 4.50 deleted text end	4.40	5.20	5.2500	4.7500
57	deleted text begin 4.25 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 4.50 deleted text end	4.30	5.15	5.2500	4.7500
58	deleted text begin 4.25 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 4.60 deleted text end	4.20	5.10	5.2500	4.7500
59	deleted text begin 4.25 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 4.70 deleted text end	4.10	5.05	5.2500	4.7500
60	deleted text begin 4.25 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 4.80 deleted text end	4.00	5.00	5.2500	4.7500
61	deleted text begin 4.25 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 4.90 deleted text end	3.90	5.00	5.2500	4.7500
62	deleted text begin 4.25 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 5.00 deleted text end	3.80	5.00	5.2500	4.7500
63	deleted text begin 4.25 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 5.10 deleted text end	3.70	5.00	5.2500	4.7500
64	deleted text begin 4.25 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 5.20 deleted text end	3.60	5.00	5.2500	4.7500
65	deleted text begin 4.25 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 5.20 deleted text end	3.50	5.00	5.2500	4.7500
66	deleted text begin 4.25 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 5.20 deleted text end	3.50	5.00	5.2500	4.7500
67	deleted text begin 4.25 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 5.20 deleted text end	3.50	5.00	5.2500	4.7500
68	deleted text begin 4.25 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 5.20 deleted text end	3.50	5.00	5.2500	4.7500
69	deleted text begin 4.25 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 5.20 deleted text end	3.50	5.00	5.2500	4.7500
70	deleted text begin 4.25 deleted text end	deleted text begin 4.75 deleted text end	deleted text begin 5.20 deleted text end	3.50	5.00	5.2500	4.7500
71	deleted text begin 4.25 deleted text end		deleted text begin 5.20 deleted text end

(3) service-related ultimate future salary increase assumption

new text begin general state employees retirement plan of the Minnesota State Retirement System new text end	new text begin assumption A new text end
new text begin general employees retirement plan of the Public Employees Retirement Association new text end	new text begin assumption B new text end
new text begin Teachers Retirement Association new text end	new text begin assumption C new text end
new text begin public employees police and fire retirement plan new text end	new text begin assumption D new text end

service length	deleted text begin general employees retirement plan of the Public Employees Retirement Association deleted text end new text begin A new text end	new text begin B new text end	new text begin C new text end	new text begin D new text end
1	deleted text begin 12.03% deleted text end new text begin 10.75% new text end	new text begin 12.25% new text end	new text begin 12.00% new text end	new text begin 13.00% new text end
2	deleted text begin 8.90 deleted text end new text begin 8.35 new text end	new text begin 9.15 new text end	new text begin 9.00 new text end	new text begin 11.00 new text end
3	deleted text begin 7.46 deleted text end new text begin 7.15 new text end	new text begin 7.75 new text end	new text begin 8.00 new text end	new text begin 9.00 new text end
4	deleted text begin 6.58 deleted text end new text begin 6.45 new text end	new text begin 6.85 new text end	new text begin 7.50 new text end	new text begin 8.00 new text end
5	deleted text begin 5.97 deleted text end new text begin 5.95 new text end	new text begin 6.25 new text end	new text begin 7.25 new text end	new text begin 6.50 new text end
6	deleted text begin 5.52 deleted text end new text begin 5.55 new text end	new text begin 5.75 new text end	new text begin 7.00 new text end	new text begin 6.10 new text end
7	deleted text begin 5.16 deleted text end new text begin 5.25 new text end	new text begin 5.45 new text end	new text begin 6.85 new text end	new text begin 5.80 new text end
8	deleted text begin 4.87 deleted text end new text begin 4.95 new text end	new text begin 5.15 new text end	new text begin 6.70 new text end	new text begin 5.60 new text end
9	deleted text begin 4.63 deleted text end new text begin 4.75 new text end	new text begin 4.85 new text end	new text begin 6.55 new text end	new text begin 5.40 new text end
10	deleted text begin 4.42 deleted text end new text begin 4.65 new text end	new text begin 4.65 new text end	new text begin 6.40 new text end	new text begin 5.30 new text end
11	deleted text begin 4.24 deleted text end new text begin 4.45 new text end	new text begin 4.45 new text end	new text begin 6.25 new text end	new text begin 5.20 new text end
12	deleted text begin 4.08 deleted text end new text begin 4.35 new text end	new text begin 4.35 new text end	new text begin 6.00 new text end	new text begin 5.10 new text end
13	deleted text begin 3.94 deleted text end new text begin 4.25 new text end	new text begin 4.15 new text end	new text begin 5.75 new text end	new text begin 5.00 new text end
14	deleted text begin 3.82 deleted text end new text begin 4.05 new text end	new text begin 4.05 new text end	new text begin 5.50 new text end	new text begin 4.90 new text end
15	deleted text begin 3.70 deleted text end new text begin 3.95 new text end	new text begin 3.95 new text end	new text begin 5.25 new text end	new text begin 4.80 new text end
16	deleted text begin 3.60 deleted text end new text begin 3.85 new text end	new text begin 3.85 new text end	new text begin 5.00 new text end	new text begin 4.80 new text end
17	deleted text begin 3.51 deleted text end new text begin 3.75 new text end	new text begin 3.75 new text end	new text begin 4.75 new text end	new text begin 4.80 new text end
18	deleted text begin 3.50 deleted text end new text begin 3.75 new text end	new text begin 3.75 new text end	new text begin 4.50 new text end	new text begin 4.80 new text end
19	deleted text begin 3.50 deleted text end new text begin 3.75 new text end	new text begin 3.75 new text end	new text begin 4.25 new text end	new text begin 4.80 new text end
20	deleted text begin 3.50 deleted text end new text begin 3.75 new text end	new text begin 3.75 new text end	new text begin 4.00 new text end	new text begin 4.80 new text end
21	deleted text begin 3.50 deleted text end new text begin 3.75 new text end	new text begin 3.75 new text end	new text begin 3.90 new text end	new text begin 4.70 new text end
22	deleted text begin 3.50 deleted text end new text begin 3.75 new text end	new text begin 3.75 new text end	new text begin 3.80 new text end	new text begin 4.60 new text end
23	deleted text begin 3.50 deleted text end new text begin 3.75 new text end	new text begin 3.75 new text end	new text begin 3.70 new text end	new text begin 4.50 new text end
24	deleted text begin 3.50 deleted text end new text begin 3.75 new text end	new text begin 3.75 new text end	new text begin 3.60 new text end	new text begin 4.50 new text end
25	deleted text begin 3.50 deleted text end new text begin 3.75 new text end	new text begin 3.75 new text end	new text begin 3.50 new text end	new text begin 4.50 new text end
26	deleted text begin 3.50 deleted text end new text begin 3.75 new text end	new text begin 3.75 new text end	new text begin 3.50 new text end	new text begin 4.50 new text end
27	deleted text begin 3.50 deleted text end new text begin 3.75 new text end	new text begin 3.75 new text end	new text begin 3.50 new text end	new text begin 4.50 new text end
28	deleted text begin 3.50 deleted text end new text begin 3.75 new text end	new text begin 3.75 new text end	new text begin 3.50 new text end	new text begin 4.50 new text end
29	deleted text begin 3.50 deleted text end new text begin 3.75 new text end	new text begin 3.75 new text end	new text begin 3.50 new text end	new text begin 4.50 new text end
30 or more	deleted text begin 3.50 deleted text end new text begin 3.75 new text end	new text begin 3.75 new text end	new text begin 3.50 new text end	new text begin 4.50 new text end

(c) Before July 2, 2010, the actuarial valuation must use the applicable following
payroll growth assumption for calculating the amortization requirement for the unfunded
actuarial accrued liability where the amortization retirement is calculated as a level
percentage of an increasing payroll:

plan	payroll growth assumption
general state employees retirement plan new text begin of the Minnesota State Retirement System new text end		deleted text begin 4.50% deleted text end new text begin 3.75% new text end
correctional state employees retirement plan		4.50
State Patrol retirement plan		4.50
legislators retirement plan		4.50
judges retirement plan		4.00
general employees retirement plan of the Public Employees Retirement Association		deleted text begin 4.00 deleted text end new text begin 3.75 new text end
public employees police and fire retirement plan		deleted text begin 4.50 deleted text end new text begin 3.75 new text end
local government correctional service retirement plan		4.50
teachers retirement plan		deleted text begin 4.50 deleted text end new text begin 3.75 new text end
Duluth teachers retirement plan		4.50
St. Paul teachers retirement plan		5.00

(d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to
apply, unless a different salary assumption or a different payroll increase assumption:

(1) has been proposed by the governing board of the applicable retirement plan;

(2) is accompanied by the concurring recommendation of the actuary retained under
section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the
most recent actuarial valuation report if section 356.214 does not apply; and

(3) has been approved or deemed approved under subdivision 18.

new text begin EFFECTIVE DATE. new text end

new text begin This section as it relates to the general state employees
retirement plan of the Minnesota State Retirement System, the general employees
retirement plan of the Public Employees Retirement Association, and the teachers
retirement plan is effective retroactively from June 30, 2010, and as it relates to the public
employees police and fire retirement plan is effective June 30, 2011.
new text end

ARTICLE 4

VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS

Section 1. new text begin DEADLINE FOR REPORTS EXTENDED.
new text end

new text begin Notwithstanding Minnesota Statutes, section 69.051, subdivision 1b, the deadline
for reports submitted under Minnesota Statutes, section 69.051, subdivisions 1 and 1a,
for 2009 is extended to April 30, 2011. A municipality or relief association does not
forfeit its 2010 state aid or any future state aid if 2009 reports are received by the state
auditor on or before April 30, 2011.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin WHITE BEAR LAKE; SPECIAL ACTUARIAL WORK
AUTHORIZATION.
new text end

new text begin Notwithstanding any provision to the contrary of Minnesota Statutes, sections
69.771, subdivision 3; 69.773, subdivisions 2, 4, and 5; 356.215; and 356.216, a document
styled as an interim valuation at October 19, 2009, of the White Bear Lake Volunteer
Fire Department Relief Association prepared by the actuarial consulting firm of Gabriel,
Roeder, Smith & Company, as confirmed as to its funded status results by an actuarial
valuation as of January 1, 2011, of the White Bear Lake Volunteer Fire Department Relief
Association pension plan prepared by the actuarial consulting firm of Gabriel, Roeder,
Smith & Company may be considered by the relief association officers, the city of White
Bear Lake, and the Office of the State Auditor to be a qualifying actuarial valuation of
the special fund of the relief association for the determination of the actuarial condition
of the relief association and the financial requirements of the relief association amounts
and the minimum municipal obligation amounts calculated by relief association officers
certified to the city of White Bear Lake on or before August 1, 2009, and on or before
August 1, 2010, may be considered by the City of White Bear Lake and by the Office of
the State Auditor to be properly determined.
new text end

new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end

new text begin This section is effective retroactively
from July 31, 2009, if the White Bear Lake city council and the White Bear Lake chief
clerical officer timely complete their compliance with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

ARTICLE 5

SMALL GROUP RETIREMENT PROVISIONS

Section 1. new text begin PERA-GENERAL; BABBITT AND BUHL SERVICE AND SALARY
CREDIT PURCHASE AUTHORIZATION IN CERTAIN CASES.
new text end

new text begin (a) An eligible person described in paragraph (b) is eligible to purchase from the
general employees retirement plan of the Public Employees Retirement Association
allowable service credit and salary credit for the period of uncredited prior employment
and salary specified in paragraph (c) by making the payment required under paragraph (d).
new text end

new text begin (b) An eligible person is a person who:
new text end

new text begin (1) was born on November 10, 1957;
new text end

new text begin (2) was employed as a part-time police officer by the city of Buhl from July 1988
until November 1996;
new text end

new text begin (3) was employed as a part-time police officer by Embarrass Township from March
1992 until August 1997;
new text end

new text begin (4) was employed as a part-time police officer by the City of Babbitt from April
1992 until September 1992; and
new text end

new text begin (5) was employed as a full-time police officer by the city of Babbitt since October 4,
1992, and as such is a member of the public employees police and fire retirement plan.
new text end

new text begin (c) The periods of unreported employment and salary that qualified for coverage by
the general employees retirement plan of the Public Employees Retirement Association
and eligible for purchase are employment by the city of Buhl from October 1989 until
November 1996 and employment by the city of Babbitt as a part-time police officer from
April 1992 until September 1992.
new text end

new text begin (d) The allowable service and salary credit purchase payment amount must be
calculated under Minnesota Statutes, section 356.551. Of the total payment amount,
the eligible person is obligated to pay the amount of member contributions that the
eligible person would have paid by deduction to the coordinated program of the general
employees retirement plan of the Public Employees Retirement Association if made in
a timely fashion, plus annual compound interest at the rate of 8.5 percent from the date
that the contribution should have been made until the date that the contribution equivalent
payment is made. The balance of the total payment amount must be allocated between
the city of Buhl and the city of Babbitt on the basis of the additional retirement benefit
associated with the applicable period of past unreported eligible employment. The city
of Buhl and the city of Babbitt shall make their payments within 30 days of the date on
which the executive director of the Public Employees Retirement Association certifies that
the eligible person has paid the equivalent member contribution payment and interest. If a
city fails to make a timely payment, the executive director shall collect the unpaid amount
under Minnesota Statutes, section 353.28.
new text end

new text begin (e) The eligible person shall provide the executive director of the Public Employees
Retirement Association with any necessary documentation of the applicability of this
section that the executive director requests.
new text end

new text begin (f) The authority of the eligible person to make the equivalent member contribution
and interest payment under this section expires on the earlier of July 1, 2012, or the date
on which the eligible person finally terminates public employment covered by Minnesota
Statutes, chapter 353.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin INDEPENDENT SCHOOL DISTRICT NO. 270, HOPKINS; SALARY
CREDIT PURCHASE FOR PART-TIME TEACHING PROGRAM SERVICE
AUTHORIZED.
new text end

new text begin (a) An eligible person described in paragraph (b) is entitled, upon application to the
executive director of the Teachers Retirement Association, to purchase salary credit from
the Teachers Retirement Association for the period of part-time teaching service specified
in paragraph (c) if the purchase payment required under paragraph (d) is paid on or before
July 1, 2012, or the date of the person's retirement, whichever is earlier.
new text end

new text begin (b) An eligible person is a person who:
new text end

new text begin (1) was born on January 20, 1951;
new text end

new text begin (2) was hired by Independent School District No. 270, Hopkins, as a teacher;
new text end

new text begin (3) first participated in the qualified part-time teacher association membership
program with a properly submitted teacher-school district agreement for the 2007-2008
school year;
new text end

new text begin (4) was employed part-time as a teacher by Independent School District No. 270,
Hopkins, during the 2008-2009 school year, but the Minnesota Statutes, section 354.66,
agreement was not filed with the Teachers Retirement Association until September 20,
2010; and
new text end

new text begin (5) was employed by Independent School District No. 270, Hopkins, as a part-time
teacher under Minnesota Statutes, section 354.66, for the 2009-2010 school year and
for the 2010-2011 school year.
new text end

new text begin (c) The period of part-time teaching service is the period during the 2008-2009
school year during which the eligible person was paid 80 percent of the eligible person's
full-time service salary rate for part-time teaching service rendered for Independent
School District No. 270, Hopkins.
new text end

new text begin (d) The total purchase payment amount for the increase in the annual salary credit
for the 2008-2009 school year of $11,090.60 in the employ of Independent School
District No. 270, Hopkins, is the service credit purchase payment amount required
under Minnesota Statutes, section 356.551. The eligible person shall pay $609.98 plus
compound interest at the annual rate of 8.5 percent from January 31, 2009, until the date
of payment. Independent School District No. 270, Hopkins, must pay the balance of
the purchase payment amount under Minnesota Statutes, section 356.551, in excess of
the eligible person's payment amount. The school district payment is due 30 days after
notification by the executive director of the Teachers Retirement Association that the
eligible person's payment amount has been received by the association. If the school
district fails to make the required payment in a timely manner, the executive director of
the Teachers Retirement Association shall notify the commissioner of management and
budget and the commissioner of education of that failure, and those commissioners shall
subtract the unpaid amount from state aid otherwise payable to the school district.
new text end

new text begin (e) Upon receipt by the Teachers Retirement Association of the total amount required
under paragraph (d), the eligible person shall receive annual salary credit for an additional
$11,090.60 for the 2008-2009 school year.
new text end

new text begin (f) The salary credit purchase payment authorization under this section expires
August 1, 2012.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text begin INCREASED ANNUITY FOR SURVIVING SPOUSE OF EMPLOYEE
KILLED WHILE ENGAGED IN EMERGENCY RESPONSE TO FLOODING.
new text end

new text begin (a) Notwithstanding Minnesota Statutes 2010, section 352.12, a surviving spouse
of an eligible person specified in paragraph (b) is entitled, upon application filed with
the executive director of the Minnesota State Retirement System, to the additional
surviving spouse benefit, payable for the lifetime of the surviving spouse, from the general
state employees retirement fund of the Minnesota State Retirement System specified in
paragraph (c).
new text end

new text begin (b) An eligible person is a person who is a state employee who suffered a violent
death while performing assigned duties responding to a flood emergency and:
new text end

new text begin (1) was born on November 7, 1971;
new text end

new text begin (2) began working for the state on September 25, 2002; and
new text end

new text begin (3) was killed on March 22, 2011, while working as an employee of the Department
of Transportation engaged in emergency response to flooding by using a backhoe to clear
debris from a culvert that drains into the Minnesota River between St. Peter and Mankato.
new text end

new text begin (c) The monthly annuity payable to the surviving spouse of an eligible person
specified in paragraph (b) is 34 percent of the average monthly salary of the eligible
person, and accrues as of the first day of the first week after the surviving spouse ceases to
receive workers' compensation payments attributable to the death of the eligible person
specified in paragraph (b).
new text end

new text begin (d) "Average salary" has the meaning given in Minnesota Statutes 2010, section
352.01, subdivision 14a.
new text end

new text begin (e) The actuarial present value of the projected special additional survivor benefit
under this section must be calculated, within 30 days of the date of final enactment, by
the consulting actuary retained by the Minnesota State Retirement System under section
356.214 using the applicable actuarial assumptions set forth in Minnesota Statutes, section
356.215, subdivision 8, or approved by the Legislative Commission on Pensions and
Retirement under Minnesota Statutes, section 356.215, subdivision 18. A summary of the
actuarial present value calculations prepared by the consulting actuary must be certified
by the executive director of the Minnesota State Retirement System to the executive
director of the Legislative Commission on Pensions and Retirement, to the commissioner
of transportation, to the commissioner of management and budget, and to the legislative
auditor. The payment amount must be charged against the fund or funds from which
the March 2011 compensation of the eligible person was paid. The commissioner of
transportation shall pay, within 30 days of the receipt of the certification of the actuarial
present value of the special additional survivor benefit by the executive director of the
Minnesota State Retirement System, the certified amount to the General State Employees
Retirement Fund of the Minnesota State Retirement System.
new text end

new text begin (f) The benefit under this section is eligible for postretirement adjustments under
Minnesota Statutes, section 356.415, subdivision 1a. The initial payment of the additional
survivor benefit must include the postretirement adjustments under Minnesota Statutes,
section 356.415, that would have been paid on and after January 1, 2012, if the additional
survivor benefit were paid since April 1, 2011, and the adjusted additional survivor benefit
is subject to regular postretirement adjustments on each January 1 thereafter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from March 22, 2011.
new text end