as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 03/11/1999 |
1.1 A bill for an act 1.2 relating to retirement; public employees police and 1.3 fire plan and local police and fire consolidation 1.4 accounts; providing for the merger of local 1.5 consolidation accounts into the public employees 1.6 police and fire plan and fund; revising member and 1.7 employer contribution rates; transferring certain 1.8 assets to certain municipalities; authorizing new 1.9 benefit plan coverage elections; revising actuarial 1.10 valuation calculations; limiting certain state aid 1.11 amounts; amending Minnesota Statutes 1998, sections 1.12 3.85, subdivision 12; 69.021, subdivision 10; 69.031, 1.13 subdivision 5; 353.01, subdivisions 2b, 10, and 16; 1.14 353.64, subdivision 1; 353.65, subdivisions 2, 3, and 1.15 3a; 356.215, subdivision 4g; and 423A.02, by adding a 1.16 subdivision; proposing coding for new law in Minnesota 1.17 Statutes, chapter 353. 1.18 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.19 Section 1. Minnesota Statutes 1998, section 3.85, 1.20 subdivision 12, is amended to read: 1.21 Subd. 12. [ALLOCATION OF ACTUARIAL COST.] (a) The 1.22 commission shall assess each retirement plan specified in 1.23 subdivision 11, paragraph (b), the compensation paid to the 1.24 actuary retained by the commission for the actuarial valuation 1.25 calculations, quadrennial projection valuations, and quadrennial 1.26 experience studies. The assessment is 100 percent of the amount 1.27 of contract compensation for the actuarial consulting firm 1.28 retained by the commission for actuarial valuation calculations, 1.29 including the public employees police and fire plan 1.30 consolidation accounts of the public employees retirement 1.31 association established after March 1, 1999, annual experience 2.1 data collection and processing, and quadrennial experience 2.2 studies and quadrennial projection valuations. 2.3 The portion of the total assessment payable by each 2.4 retirement system or pension plan must be determined as follows: 2.5 (1) Each pension plan specified in subdivision 11, 2.6 paragraph (b), clauses (1) to (13), must pay the following 2.7 indexed amount based on its total active, deferred, inactive, 2.8 and benefit recipient membership: 2.9 up to 2,000 members, inclusive $2.55 per member 2.10 2,001 through 10,000 members $1.13 per member 2.11 over 10,000 members $0.11 per member 2.12 The amount specified is applicable for the assessment of 2.13 the July 1, 1991, to June 30, 1992, fiscal year actuarial 2.14 compensation amounts. For the July 1, 1992, to June 30, 1993, 2.15 fiscal year and subsequent fiscal year actuarial compensation 2.16 amounts, the amount specified must be increased at the same 2.17 percentage increase rate as the implicit price deflator for 2.18 state and local government purchases of goods and services for 2.19 the 12-month period ending with the first quarter of the 2.20 calendar year following the completion date for the actuarial 2.21 valuation calculations, as published by the federal Department 2.22 of Commerce, and rounded upward to the nearest full cent. 2.23 (2) The total per-member portion of the allocation must be 2.24 determined, and that total per-member amount must be subtracted 2.25 from the total amount for allocation. Of the remainder dollar 2.26 amount, the following per-retirement system and per-pension plan 2.27 charges must be determined and the charges must be paid by the 2.28 system or plan: 2.29 (i) 37.87 percent is the total additional per-retirement 2.30 system charge, of which one-seventh must be paid by each 2.31 retirement system specified in subdivision 11, paragraph (b), 2.32 clauses (1), (2), (6), (7), (9), (10), and (11). 2.33 (ii) 62.13 percent is the total additional per-pension plan 2.34 charge, of which one-thirteenth must be paid by each pension 2.35 plan specified in subdivision 11, paragraph (b), clauses (1) to 2.36 (13). 3.1 (b) The assessment must be made following the completion of 3.2 the actuarial valuation calculations and the experience 3.3 analysis. The amount of the assessment is appropriated from the 3.4 retirement fund applicable to the retirement plan. Receipts 3.5 from assessments must be deposited in the state treasury and 3.6 credited to the general fund. 3.7 Sec. 2. Minnesota Statutes 1998, section 69.021, 3.8 subdivision 10, is amended to read: 3.9 Subd. 10. [REDUCTION IN POLICE STATE AID APPORTIONMENT.] 3.10 (a) The commissioner of revenue shall reduce the apportionment 3.11 of police state aid under subdivisions 5, paragraph (b), 6, and 3.12 7a, for eligible employer units by any excess police state aid. 3.13 (b) "Excess police state aid" is: 3.14 (1) for counties and for municipalities in which police 3.15 retirement coverage is provided wholly by the public employees 3.16 police and fire fund and all police officers are members of the 3.17 plan governed by sections 353.63 to 353.657, the amount in 3.18 excess of the employer's total prior calendar year obligation as 3.19 defined in paragraph (c), as certified by the executive director 3.20 of the public employees retirement association; 3.21 (2) for municipalities in which police retirement coverage 3.22 is provided in part by the public employees police and fire fund 3.23 governed by sections 353.63 to 353.657 and in part by a local 3.24 police consolidation account governed by chapter 353A, and 3.25 established after March 1, 1999, the amount in excess of the 3.26 employer's total prior calendar year obligation as defined in 3.27 paragraph (c), plus the amount of the employer's total prior 3.28 calendar year obligation under section 353A.09, subdivision 5, 3.29 paragraphs (a) and (b), as certified by the executive director 3.30 of the public employees retirement association; 3.31 (3) for municipalities in which police retirement coverage 3.32 is provided by the public employees police and fire plan 3.33 governed by sections 353.63 to 353.657, in which police 3.34 retirement coverage was provided by a police consolidation 3.35 account under chapter 353A before July 1, 1999, and for which 3.36 the municipality has an additional municipal contribution under 4.1 section 353.665, subdivision 8, paragraph (b), the amount in 4.2 excess of the employer's total prior calendar year obligation as 4.3 defined in paragraph (c), plus the amount of any additional 4.4 municipal contribution under section 353.665, subdivision 8, 4.5 paragraph (b), until the year 2010, as certified by the 4.6 executive director of the public employees retirement 4.7 association; 4.8 (4) for municipalities in which police retirement coverage 4.9 is provided in part by the public employees police and fire fund 4.10 governed by sections 353.63 to 353.657 and in part by a local 4.11 police relief association governed by sections 69.77 and 4.12 423A.01, the amount in excess of the employer's total prior 4.13 calendar year obligation as defined in paragraph (c), as 4.14 certified by the executive director of the public employees 4.15 retirement association, plus the amount of the financial 4.16 requirements of the relief association certified to the 4.17 applicable municipality during the prior calendar year under 4.18 section 69.77, subdivisions 2b and 2c, reduced by the amount of 4.19 member contributions deducted from the covered salary of the 4.20 relief association during the prior calendar year under section 4.21 69.77, subdivision 2a, as certified by the chief administrative 4.22 officer of the applicable municipality; 4.23(4)(5) for the metropolitan airports commission, if there 4.24 are police officers hired before July 1, 1978, with retirement 4.25 coverage by the Minneapolis employees retirement fund remaining, 4.26 the amount in excess of the commission's total prior calendar 4.27 year obligation as defined in paragraph (c), as certified by the 4.28 executive director of the public employees retirement 4.29 association, plus the amount determined by expressing the 4.30 commission's total prior calendar year contribution to the 4.31 Minneapolis employees retirement fund under section 422A.101, 4.32 subdivisions 2 and 2a, as a percentage of the commission's total 4.33 prior calendar year covered payroll for commission employees 4.34 covered by the Minneapolis employees retirement fund and 4.35 applying that percentage to the commission's total prior 4.36 calendar year covered payroll for commission police officers 5.1 covered by the Minneapolis employees retirement fund, as 5.2 certified by the chief administrative officer of the 5.3 metropolitan airports commission; and 5.4(5)(6) for the department of natural resources and for the 5.5 department of public safety, the amount in excess of the 5.6 employer's total prior calendar year obligation under section 5.7 352B.02, subdivision 1c, for plan members who are peace officers 5.8 under section 69.011, subdivision 1, clause (g), as certified by 5.9 the executive director of the Minnesota state retirement system. 5.10 (c) The employer's total prior calendar year obligation 5.11 with respect to the public employees police and fire plan is the 5.12 total prior calendar year obligation under section 353.65, 5.13 subdivision 3, for police officers as defined in section 353.64, 5.14 subdivision 2, and the actual total prior calendar year 5.15 obligation under section 353.65, subdivision 3, for 5.16 firefighters, as defined in section 353.64, subdivision 3, but 5.17 not to exceed for those firefighters the applicable following 5.18 amounts: 5.19 Municipality Maximum Amount 5.20 Albert Lea $54,157.01 5.21 Anoka 10,399.31 5.22 Apple Valley 5,442.44 5.23 Austin 49,864.73 5.24 Bemidji 27,671.38 5.25 Brooklyn Center 6,605.92 5.26 Brooklyn Park 24,002.26 5.27 Burnsville 15,956.00 5.28 Cloquet 4,260.49 5.29 Coon Rapids 39,920.00 5.30 Cottage Grove 8,588.48 5.31 Crystal 5,855.00 5.32 East Grand Forks 51,009.88 5.33 Edina 32,251.00 5.34 Elk River 5,216.55 5.35 Ely 13,584.16 5.36 Eveleth 16,288.27 6.1 Fergus Falls 6,742.00 6.2 Fridley 33,420.64 6.3 Golden Valley 11,744.61 6.4 Hastings 16,561.00 6.5 Hopkins 4,324.23 6.6 International Falls 14,400.69 6.7 Lakeville 782.35 6.8 Lino Lakes 5,324.00 6.9 Little Falls 7,889.41 6.10 Maple Grove 6,707.54 6.11 Maplewood 8,476.69 6.12 Minnetonka 10,403.00 6.13 Montevideo 1,307.66 6.14 Moorhead 68,069.26 6.15 New Hope 6,739.72 6.16 North St. Paul 4,241.14 6.17 Northfield 770.63 6.18 Owatonna 37,292.67 6.19 Plymouth 6,754.71 6.20 Red Wing 3,504.01 6.21 Richfield 53,757.96 6.22 Rosemount 1,712.55 6.23 Roseville 9,854.51 6.24 St. Anthony 33,055.00 6.25 St. Louis Park 53,643.11 6.26 Thief River Falls 28,365.04 6.27 Virginia 31,164.46 6.28 Waseca 11,135.17 6.29 West St. Paul 15,707.20 6.30 White Bear Lake 6,521.04 6.31 Woodbury 3,613.00 6.32 any other municipality 0.00 6.33 (d) The total amount of excess police state aid must be 6.34 deposited in the excess police state-aid account in the general 6.35 fund, administered and distributed as provided in subdivision 11. 6.36 Sec. 3. Minnesota Statutes 1998, section 69.031, 7.1 subdivision 5, is amended to read: 7.2 Subd. 5. [DEPOSIT OF STATE AID.] (a) The municipal 7.3 treasurer shall, within 30 days after receipt, transmit the fire 7.4 state aid to the treasurer of the duly incorporated 7.5 firefighters' relief association if there is one organized and 7.6 the association has filed a financial report with the 7.7 municipality. If the relief association has not filed a 7.8 financial report with the municipality, the municipal treasurer 7.9 shall delay transmission of the fire state aid to the relief 7.10 association until the complete financial report is filed. If 7.11 there is no relief association organized, or if the association 7.12 has dissolved, or has been removed as trustees of state aid, 7.13 then the treasurer of the municipality shall deposit the money 7.14 in the municipal treasury as provided for in section 424A.08 and 7.15 the money may be disbursed only for the purposes and in the 7.16 manner set forth in that section. 7.17 (b) The municipal treasurer, upon receipt of the police 7.18 state aid, shall disburse the police state aid in the following 7.19 manner: 7.20 (1) For a municipality in which a local police relief 7.21 association exists and all peace officers are members of the 7.22 association, the total state aid must be transmitted to the 7.23 treasurer of the relief association within 30 days of the date 7.24 of receipt, and the treasurer of the relief association shall 7.25 immediately deposit the total state aid in the special fund of 7.26 the relief association; 7.27 (2) For a municipality in which police retirement coverage 7.28 is provided by the public employees police and fire fund and all 7.29 peace officers are members of the fund, including municipalities 7.30 covered by section 353.665, the total state aid must be applied 7.31 toward the municipality's employer contribution to the public 7.32 employees police and fire fund undersectionsections 353.65, 7.33 subdivision 3 and 353.665, subdivision 8, paragraph (b), if 7.34 applicable; or 7.35 (3) For a municipality other than a city of the first class 7.36 with a population of more than 300,000 in which both a police 8.1 relief association exists and police retirement coverage is 8.2 provided in part by the public employees police and fire fund, 8.3 the municipality may elect at its option to transmit the total 8.4 state aid to the treasurer of the relief association as provided 8.5 in clause (1), to use the total state aid to apply toward the 8.6 municipality's employer contribution to the public employees 8.7 police and fire fund subject to all the provisions set forth in 8.8 clause (2), or to allot the total state aid proportionately to 8.9 be transmitted to the police relief association as provided in 8.10 this subdivision and to apply toward the municipality's employer 8.11 contribution to the public employees police and fire fund 8.12 subject to the provisions of clause (2) on the basis of the 8.13 respective number of active full-time peace officers, as defined 8.14 in section 69.011, subdivision 1, clause (g). 8.15 For a city of the first class with a population of more 8.16 than 300,000, in addition, the city may elect to allot the 8.17 appropriate portion of the total police state aid to apply 8.18 toward the employer contribution of the city to the public 8.19 employees police and fire fund based on the covered salary of 8.20 police officers covered by the fund each payroll period and to 8.21 transmit the balance to the police relief association; or 8.22 (4) For a municipality in which police retirement coverage 8.23 is provided in part by the public employees police and fire fund 8.24 and in part by a local police consolidation account governed by 8.25 chapter 353A and established after March 1, 1999, the total 8.26 police state aid must be applied towards the municipality's 8.27 total employer contribution to the public employees police and 8.28 fire fund and to the local police consolidation account under 8.29 sections 353.65, subdivision 3, and 353A.09, subdivision 5. 8.30 (c) The county treasurer, upon receipt of the police state 8.31 aid for the county, shall apply the total state aid toward the 8.32 county's employer contribution to the public employees police 8.33 and fire fund under section 353.65, subdivision 3. 8.34 (d) The designated metropolitan airports commission 8.35 official, upon receipt of the police state aid for the 8.36 metropolitan airports commission, shall apply the total police 9.1 state aid first toward the commission's employer contribution 9.2 for police officers to the Minneapolis employees retirement fund 9.3 under section 422A.101, subdivision 2a, and, if there is any 9.4 amount of police state aid remaining, shall apply that remainder 9.5 toward the commission's employer contribution for police 9.6 officers to the public employees police and fire plan under 9.7 section 353.65, subdivision 3. 9.8 (e) The police state aid apportioned to the departments of 9.9 public safety and natural resources under section 69.021, 9.10 subdivision 7a, is appropriated to the commissioner of finance 9.11 for transfer to the funds and accounts from which the salaries 9.12 of peace officers certified under section 69.011, subdivision 9.13 2a, are paid. The commissioner of revenue shall certify to the 9.14 commissioners of public safety, natural resources, and finance 9.15 the amounts to be transferred from the appropriation for police 9.16 state aid. The commissioners of public safety and natural 9.17 resources shall certify to the commissioner of finance the 9.18 amounts to be credited to each of the funds and accounts from 9.19 which the peace officers employed by their respective 9.20 departments are paid. Each commissioner must allocate the 9.21 police state aid first for employer contributions for employees 9.22 funded from the general fund and then for employer contributions 9.23 for employees funded from other funds. For peace officers whose 9.24 salaries are paid from the general fund, the amounts transferred 9.25 from the appropriation for police state aid must be canceled to 9.26 the general fund. 9.27 Sec. 4. Minnesota Statutes 1998, section 353.01, 9.28 subdivision 2b, is amended to read: 9.29 Subd. 2b. [EXCLUDED EMPLOYEES.] The following public 9.30 employees shall not participate as members of the association 9.31 with retirement coverage by the public employees retirement plan 9.32 or the public employees police and fire retirement plan: 9.33 (1) elected public officers, or persons appointed to fill a 9.34 vacancy in an elective office, who do not elect to participate 9.35 in the association by filing an application for membership; 9.36 (2) election officers; 10.1 (3) patient and inmate personnel who perform services in 10.2 charitable, penal, or correctional institutions of a 10.3 governmental subdivision; 10.4 (4) employees who are hired for a temporary position under 10.5 subdivision 12a, and employees who resign from a nontemporary 10.6 position and accept a temporary position within 30 days in the 10.7 same governmental subdivision, but not those employees who are 10.8 hired for an unlimited period but are serving a probationary 10.9 period. If the period of employment extends beyond six 10.10 consecutive months and the employee earns more than $425 from 10.11 one governmental subdivision in any one calendar month, the 10.12 department head shall report the employee for membership and 10.13 require employee deductions be made on behalf of the employee 10.14 under section 353.27, subdivision 4. 10.15 Membership eligibility of an employee who resigns or is 10.16 dismissed from a temporary position and within 30 days accepts 10.17 another temporary position in the same governmental subdivision 10.18 is determined on the total length of employment rather than on 10.19 each separate position. Membership eligibility of an employee 10.20 who holds concurrent temporary and nontemporary positions in one 10.21 governmental subdivision is determined by the length of 10.22 employment and salary of each separate position; 10.23 (5) employees whose actual salary from one governmental 10.24 subdivision does not exceed $425 per month, or whose annual 10.25 salary from one governmental subdivision does not exceed a 10.26 stipulation prepared in advance, in writing, that the salary 10.27 must not exceed $5,100 per calendar year or per school year for 10.28 school employees for employment expected to be of a full year's 10.29 duration or more than the prorated portion of $5,100 per 10.30 employment period for employment expected to be of less than a 10.31 full year's duration; 10.32 (6) employees who are employed by reason of work emergency 10.33 caused by fire, flood, storm, or similar disaster; 10.34 (7) employees who by virtue of their employment in one 10.35 governmental subdivision are required by law to be a member of 10.36 and to contribute to any of the plans or funds administered by 11.1 the Minnesota state retirement system, the teachers retirement 11.2 association, the Duluth teachers retirement fund association, 11.3 the Minneapolis teachers retirement association, the St. Paul 11.4 teachers retirement fund association, the Minneapolis employees 11.5 retirement fund, or any police or firefighters relief 11.6 association governed by section 69.77 that has not consolidated 11.7 with the public employees retirement association, or any local 11.8 police or firefightersrelief association that has consolidated11.9with the public employees retirement associationconsolidation 11.10 account but whose members have not elected the type of benefit 11.11 coverage provided by the public employees police and fire fund 11.12 under sections 353A.01 to 353A.10, or any persons covered by 11.13 section 353.665, subdivision 4, 5, or 6, who have not elected 11.14 public employee police and fire plan benefit coverage. This 11.15 clause must not be construed to prevent a person from being a 11.16 member of and contributing to the public employees retirement 11.17 association and also belonging to and contributing to another 11.18 public pension fund for other service occurring during the same 11.19 period of time. A person who meets the definition of "public 11.20 employee" in subdivision 2 by virtue of other service occurring 11.21 during the same period of time becomes a member of the 11.22 association unless contributions are made to another public 11.23 retirement fund on the salary based on the other service or to 11.24 the teachers retirement association by a teacher as defined in 11.25 section 354.05, subdivision 2; 11.26 (8) persons who are excluded from coverage under the 11.27 federal Old Age, Survivors, Disability, and Health Insurance 11.28 Program for the performance of service as specified in United 11.29 States Code, title 42, section 410(a)(8)(A), as amended through 11.30 January 1, 1987, if no irrevocable election of coverage has been 11.31 made under section 3121(r) of the Internal Revenue Code of 1954, 11.32 as amended; 11.33 (9) full-time students who are enrolled and are regularly 11.34 attending classes at an accredited school, college, or 11.35 university and who are part-time employees as defined by a 11.36 governmental subdivision; 12.1 (10) resident physicians, medical interns, and pharmacist 12.2 residents and pharmacist interns who are serving in a degree or 12.3 residency program in public hospitals; 12.4 (11) students who are serving in an internship or residency 12.5 program sponsored by an accredited educational institution; 12.6 (12) persons who hold a part-time adult supplementary 12.7 technical college license who render part-time teaching service 12.8 in a technical college; 12.9 (13) foreign citizens working for a governmental 12.10 subdivision with a work permit of less than three years, or an 12.11 H-1b visa valid for less than three years of employment. Upon 12.12 notice to the association that the work permit or visa extends 12.13 beyond the three-year period, the foreign citizens are eligible 12.14 for membership from the date of the extension; 12.15 (14) public hospital employees who elected not to 12.16 participate as members of the association before 1972 and who 12.17 did not elect to participate from July 1, 1988, to October 1, 12.18 1988; 12.19 (15) except as provided in section 353.86, volunteer 12.20 ambulance service personnel, as defined in subdivision 35, but 12.21 persons who serve as volunteer ambulance service personnel may 12.22 still qualify as public employees under subdivision 2 and may be 12.23 members of the public employees retirement association and 12.24 participants in the public employees retirement fund or the 12.25 public employees police and fire fund on the basis of 12.26 compensation received from public employment service other than 12.27 service as volunteer ambulance service personnel; 12.28 (16) except as provided in section 353.87, volunteer 12.29 firefighters, as defined in subdivision 36, engaging in 12.30 activities undertaken as part of volunteer firefighter duties; 12.31 provided that a person who is a volunteer firefighter may still 12.32 qualify as a public employee under subdivision 2 and may be a 12.33 member of the public employees retirement association and a 12.34 participant in the public employees retirement fund or the 12.35 public employees police and fire fund on the basis of 12.36 compensation received from public employment activities other 13.1 than those as a volunteer firefighter; and 13.2 (17) pipefitters and associated trades personnel employed 13.3 by independent school district No. 625, St. Paul, with coverage 13.4 by the pipefitters local 455 pension plan under a collective 13.5 bargaining agreement who were either first employed after May 1, 13.6 1997, or, if first employed before May 2, 1997, elected to be 13.7 excluded under Laws 1997, chapter 241, article 2, section 12. 13.8 Sec. 5. Minnesota Statutes 1998, section 353.01, 13.9 subdivision 10, is amended to read: 13.10 Subd. 10. [SALARY.] (a) "Salary" means: 13.11 (1) periodic compensation of a public employee, before 13.12 deductions for deferred compensation, supplemental retirement 13.13 plans, or other voluntary salary reduction programs, and also 13.14 means "wages" and includes net income from fees; and 13.15 (2) for a public employee who has prior service covered by 13.16 a local police or firefighters' relief association that has 13.17 consolidated with the public employees retirement association or 13.18 to which section 353.665 applies and who either has elected 13.19 coverage under the public employees police and fire fund benefit 13.20 plan under section 353A.08 following the consolidation or under 13.21 section 353.665, subdivision 4, "salary" means the rate of 13.22 salary upon which member contributions to the special fund of 13.23 the relief association were made prior to the effective date of 13.24 the consolidation as specified by law and by bylaw provisions 13.25 governing the relief association on the date of the initiation 13.26 of the consolidation procedure and the actual periodic 13.27 compensation of the public employee after the effective date of 13.28 consolidation. 13.29 (b) Salary does not mean: 13.30 (1) fees paid to district court reporters, unused annual or 13.31 sick leave payments, in lump-sum or periodic payments, severance 13.32 payments, reimbursement of expenses, lump-sum settlements not 13.33 attached to a specific earnings period, or workers' compensation 13.34 payments; 13.35 (2) employer-paid amounts used by an employee toward the 13.36 cost of insurance coverage, employer-paid fringe benefits, 14.1 flexible spending accounts, cafeteria plans, health care expense 14.2 accounts, day care expenses, or any payments in lieu of any 14.3 employer-paid group insurance coverage, including the difference 14.4 between single and family rates that may be paid to a member 14.5 with single coverage and certain amounts determined by the 14.6 executive director to be ineligible; 14.7 (3) the amount equal to that which the employing 14.8 governmental subdivision would otherwise pay toward single or 14.9 family insurance coverage for a covered employee when, through a 14.10 contract or agreement with some but not all employees, the 14.11 employer: 14.12 (i) discontinues, or for new hires does not provide, 14.13 payment toward the cost of the employee's selected insurance 14.14 coverages under a group plan offered by the employer; 14.15 (ii) makes the employee solely responsible for all 14.16 contributions toward the cost of the employee's selected 14.17 insurance coverages under a group plan offered by the employer, 14.18 including any amount the employer makes toward other employees' 14.19 selected insurance coverages under a group plan offered by the 14.20 employer; and 14.21 (iii) provides increased salary rates for employees who do 14.22 not have any employer-paid group insurance coverages; and 14.23 (4) except as provided in section 353.86 or 353.87, 14.24 compensation of any kind paid to volunteer ambulance service 14.25 personnel or volunteer firefighters, as defined in subdivisions 14.26 35 and 36. 14.27 Sec. 6. Minnesota Statutes 1998, section 353.01, 14.28 subdivision 16, is amended to read: 14.29 Subd. 16. [ALLOWABLE SERVICE.] (a) "Allowable service" 14.30 means service during years of actual membership in the course of 14.31 which employee contributions were made, periods covered by 14.32 payments in lieu of salary deductions under section 353.35, and 14.33 service in years during which the public employee was not a 14.34 member but for which the member later elected, while a member, 14.35 to obtain credit by making payments to the fund as permitted by 14.36 any law then in effect. 15.1 (b) "Allowable service" also means a period of authorized 15.2 leave of absence with pay from which deductions for employee 15.3 contributions are made, deposited, and credited to the fund. 15.4 (c) "Allowable service" also means a period of authorized 15.5 leave of absence without pay that does not exceed one year, and 15.6 during or for which a member obtained credit by payments to the 15.7 fund made in place of salary deductions, provided that the 15.8 payments are made in an amount or amounts based on the member's 15.9 average salary on which deductions were paid for the last six 15.10 months of public service, or for that portion of the last six 15.11 months while the member was in public service, to apply to the 15.12 period in either case immediately preceding commencement of the 15.13 leave of absence. If the employee elects to pay employee 15.14 contributions for the period of any leave of absence without 15.15 pay, or for any portion of the leave, the employee shall also, 15.16 as a condition to the exercise of the election, pay to the fund 15.17 an amount equivalent to both the required employer and 15.18 additional employer contributions for the employee. The payment 15.19 must be made within one year from the expiration of the leave of 15.20 absence or within 20 days after termination of public service 15.21 under subdivision 11a. The employer by appropriate action of 15.22 its governing body, made a part of its official records, before 15.23 the date of the first payment of the employee contribution, may 15.24 certify to the association in writing its commitment to pay the 15.25 employer and additional employer contributions from the proceeds 15.26 of a tax levy made under section 353.28. Payments under this 15.27 paragraph must include interest at an annual rate of 8.5 percent 15.28 compounded annually from the date of the termination of the 15.29 leave of absence to the date payment is made. An employee shall 15.30 return to public service and receive a minimum of three months 15.31 of allowable service to be eligible to pay employee and employer 15.32 contributions for a subsequent authorized leave of absence 15.33 without pay. 15.34 (d) "Allowable service" also means a periodic, repetitive 15.35 leave that is offered to all employees of a governmental 15.36 subdivision. The leave program may not exceed 208 hours per 16.1 annual normal work cycle as certified to the association by the 16.2 employer. A participating member obtains service credit by 16.3 making employee contributions in an amount or amounts based on 16.4 the member's average salary that would have been paid if the 16.5 leave had not been taken. The employer shall pay the employer 16.6 and additional employer contributions on behalf of the 16.7 participating member. The employee and the employer are 16.8 responsible to pay interest on their respective shares at the 16.9 rate of 8.5 percent a year, compounded annually, from the end of 16.10 the normal cycle until full payment is made. An employer shall 16.11 also make the employer and additional employer contributions, 16.12 plus 8.5 percent interest, compounded annually, on behalf of an 16.13 employee who makes employee contributions but terminates public 16.14 service. The employee contributions must be made within one 16.15 year after the end of the annual normal working cycle or within 16.16 20 days after termination of public service, whichever is 16.17 sooner. The association shall prescribe the manner and forms to 16.18 be used by a governmental subdivision in administering a 16.19 periodic, repetitive leave. 16.20 (e) "Allowable service" also means a period during which a 16.21 member is on an authorized sick leave of absence, without pay, 16.22 limited to one year. An employee who has received one year of 16.23 allowable service shall return to public service and receive a 16.24 minimum of three months of allowable service to receive 16.25 allowable service for a subsequent authorized sick leave of 16.26 absence. 16.27 (f) "Allowable service" also means an authorized temporary 16.28 layoff under subdivision 12, limited to three months allowable 16.29 service per authorized temporary layoff in one calendar year. 16.30 An employee who has received the maximum service allowed for an 16.31 authorized temporary layoff shall return to public service and 16.32 receive a minimum of three months of allowable service to 16.33 receive allowable service for a subsequent authorized temporary 16.34 layoff. 16.35 (g) Notwithstanding any law to the contrary, "allowable 16.36 service" also means a parental leave. The association shall 17.1 grant a maximum of two months service credit for a parental 17.2 leave, within six months after the birth or adoption, upon 17.3 documentation from the member's governmental subdivision or 17.4 presentation of a birth certificate or other evidence of birth 17.5 or adoption to the association. 17.6 (h) "Allowable service" also means a period during which a 17.7 member is on an authorized leave of absence to enter military 17.8 service, provided that the member returns to public service upon 17.9 discharge from military service under section 192.262 and pays 17.10 into the fund employee contributions based upon the employee's 17.11 salary at the date of return from military service. Payment 17.12 must be made within five years of the date of discharge from the 17.13 military service. The amount of these contributions must be in 17.14 accord with the contribution rates and salary limitations, if 17.15 any, in effect during the leave, plus interest at an annual rate 17.16 of 8.5 percent compounded annually from the date of return to 17.17 public service to the date payment is made. The matching 17.18 employer contribution and additional employer contribution under 17.19 section 353.27, subdivisions 3 and 3a, must be paid by the 17.20 governmental subdivision employing the member upon return to 17.21 public service if the member makes the employee contributions. 17.22 The governmental subdivision involved may appropriate money for 17.23 those payments. A member may not receive credit for a voluntary 17.24 extension of military service at the instance of the member 17.25 beyond the initial period of enlistment, induction, or call to 17.26 active duty. 17.27 (i) For calculating benefits under sections 353.30, 353.31, 17.28 353.32, and 353.33 for state officers and employees displaced by 17.29 the Community Corrections Act, chapter 401, and transferred into 17.30 county service under section 401.04, "allowable service" means 17.31 combined years of allowable service as defined in paragraphs (a) 17.32 to (i) and section 352.01, subdivision 11. 17.33 (j) For a public employee who has prior service covered by 17.34 a local police or firefighters relief association that has 17.35 consolidated with the public employees retirement association or 17.36 to which section 353.665 applies, and who either has elected the 18.1 type of benefit coverage provided by the public employees police 18.2 and fire fund under section 353A.08 following the 18.3 consolidation or under section 353.665, subdivision 4, 18.4 "applicable service" is a period of service credited by the 18.5 local police or firefighters relief association as of the 18.6 effective date of the consolidation based on law and on bylaw 18.7 provisions governing the relief association on the date of the 18.8 initiation of the consolidation procedure. 18.9 Sec. 7. Minnesota Statutes 1998, section 353.64, 18.10 subdivision 1, is amended to read: 18.11 Subdivision 1. [POLICE AND FIRE FUND MEMBERSHIP.] (a) A 18.12 person who prior to July 1, 1961, was a member of the police and 18.13 fire fund, by virtue of being a police officer or firefighter, 18.14 shall, as long as the person remains in either position, 18.15 continue membership in the fund. 18.16 (b) A person who was employed by a governmental subdivision 18.17 as a police officer and was a member of the police and fire fund 18.18 on July 1, 1978, by virtue of being a police officer as defined 18.19 by this section on that date, and if employed by the same 18.20 governmental subdivision in a position in the same department in 18.21 which the person was employed on that date, shall continue 18.22 membership in the fund whether or not that person has the power 18.23 of arrest by warrant after that date. 18.24 (c) A person who was employed by a governmental subdivision 18.25 as a police officer or a firefighter, whichever applies, was an 18.26 active member of the local police or salaried firefighters 18.27 relief association located in that governmental subdivision by 18.28 virtue of that employment as of the effective date of the 18.29 consolidation as authorized by sections 353A.01 to 353A.10, and 18.30 has elected coverage by the public employees police and fire 18.31 fund benefit plan, shall become a member of the police and fire 18.32 fund after that date if employed by the same governmental 18.33 subdivision in a position in the same department in which the 18.34 person was employed on that date. 18.35 (d) Any other employee serving on a full-time basis as a 18.36 police officer or firefighter on or after July 1, 1961, shall 19.1 become a member of the public employees police and fire fund. 19.2 (e) An employee serving on less than a full-time basis as a 19.3 police officer shall become a member of the public employees 19.4 police and fire fund only after a resolution stating that the 19.5 employee should be covered by the police and fire fund is 19.6 adopted by the governing body of the governmental subdivision 19.7 employing the person declaring that the position which the 19.8 person holds is that of a police officer. 19.9 (f) An employee serving on less than a full-time basis as a 19.10 firefighter shall become a member of the public employees police 19.11 and fire fund only after a resolution stating that the employee 19.12 should be covered by the police and fire fund is adopted by the 19.13 governing body of the governmental subdivision employing the 19.14 person declaring that the position which the person holds is 19.15 that of a firefighter. 19.16 (g) A police officer or firefighter employed by a 19.17 governmental subdivision who by virtue of that employment is 19.18 required by law to be a member of and to contribute to any 19.19 police or firefighter relief association governed by section 19.20 69.77 which has not consolidated with the public employees 19.21 police and fire fundand, any police officer or firefighter of a 19.22 relief association that has consolidated with the association 19.23 for which the employee has not elected coverage by the public 19.24 employees police and fire fund benefit plan as provided in 19.25 sections 353A.01 to 353A.10, or any police officer or 19.26 firefighter to whom section 353.665 applies who has not elected 19.27 coverage by the public employees police and fire fund benefit 19.28 plan as provided in section 353.665, subdivision 4, shall not 19.29 become a member of the public employees police and fire fund. 19.30 Sec. 8. Minnesota Statutes 1998, section 353.65, 19.31 subdivision 2, is amended to read: 19.32 Subd. 2. [EMPLOYEE CONTRIBUTION RATE.] The employee 19.33 contribution is an amount equal to7.66.2 percent of the total 19.34 salary of the member. This contribution must be made by 19.35 deduction from salary in the manner provided in subdivision 4. 19.36 Where any portion of a member's salary is paid from other than 20.1 public funds, the member's employee contribution is based on the 20.2 total salary received from all sources. 20.3 Sec. 9. Minnesota Statutes 1998, section 353.65, 20.4 subdivision 3, is amended to read: 20.5 Subd. 3. [EMPLOYER CONTRIBUTION RATE.] The employer 20.6 contribution shall be an amount equal to11.49.3 percent of the 20.7 total salary of every member. This contribution shall be made 20.8 from funds available to the employing subdivision by the means 20.9 and in the manner provided in section 353.28. 20.10 Sec. 10. Minnesota Statutes 1998, section 353.65, 20.11 subdivision 3a, is amended to read: 20.12 Subd. 3a. [CHANGE IN EMPLOYEE AND EMPLOYER CONTRIBUTIONS 20.13 IN CERTAIN INSTANCES.] (a) If, afterfourtwo consecutive fiscal 20.14 years beginning July 1,19941999, the regular actuarial 20.15 valuation of the public employees police and fire fund under 20.16 section 356.215 indicates that the fund has no unfunded 20.17 actuarial accrued liability and that there is a sufficiency in 20.18 excess of 0.5 percent of covered payroll when the total 20.19 actuarial funding requirements of the fund are compared to the 20.20 total support, the employee and employer contribution rates must 20.21 be decreased as determined under paragraph (c) to a level such 20.22 that the sufficiency equals 0.5 percent of covered payroll based 20.23 on the most recent actuarial valuation. 20.24 (b) If, afterfourtwo consecutive fiscal years beginning 20.25 July 1,19941999, the regular actuarial valuation of the public 20.26 employees police and fire fund under section 356.215 indicates 20.27 thatthe fund has an unfunded actuarial accrued liability and20.28thatthere is a deficiency in excess of 0.5 percent of covered 20.29 payroll when the total actuarial funding requirements of the 20.30 fund are compared to the total support, the employee and 20.31 employer contribution rates must be increased as determined 20.32 under paragraph (c) so that no deficiency exists based on the 20.33 most recent actuarial valuation. 20.34 (c) The increase or decrease in employee and employer 20.35 contribution rates required under paragraphs (a) and (b) must 20.36 maintain the current ratio in employer and employee contribution 21.1 rates of 40 percent employee contribution and 60 percent 21.2 employer contribution. 21.3 (d) The contribution rate increase or decrease must be 21.4 determined by the board of trustees and the executive director 21.5 of the public employees retirement association and must be 21.6 presented to the legislative commission on pensions and 21.7 retirement during the first legislative session following the 21.8 receipt of the actuarial valuation that indicates the need for 21.9 the contribution rate change. 21.10 (e) The contribution rate increase or decrease is effective 21.11 on the first full payroll period beginning after June 30 21.12 following receipt by the association of thefourthsecond 21.13 consecutive annual actuarial valuation disclosing the deficiency 21.14 or sufficiency specified in paragraph (a) or (b). 21.15 (f)A contribution rate increase or decrease under21.16paragraph (a) or (b) must not occur prior to receipt by the21.17association of the 1997 regular actuarial valuation of the21.18police and fire fund under section 356.215.A contribution rate 21.19 increase or decrease under paragraph (a) or (b) must not occur 21.20within fourmore frequently than every two yearsof a prior21.21increase or decrease under paragraph (a) or (b). 21.22 Sec. 11. [353.665] [MERGER OF CERTAIN CONSOLIDATION 21.23 ACCOUNTS INTO PERA-P&F.] 21.24 Subdivision 1. [MERGER REQUIRED.] Notwithstanding any 21.25 provision of law to the contrary, every local police and fire 21.26 consolidation account under chapter 353A in existence on March 21.27 1, 1999, becomes a part of the public employees police and fire 21.28 plan and fund governed by sections 353.63 to 353.659 on July 1, 21.29 1999. 21.30 Subd. 2. [TRANSFER OF LIABILITIES.] All liabilities of a 21.31 former local police or fire consolidation account merged under 21.32 subdivision 1 are liabilities of the public employees police and 21.33 fire fund as of July 1, 1999. 21.34 Subd. 3. [TRANSFER OF ASSETS.] All assets of a former 21.35 local police or fire consolidation account merged under 21.36 subdivision 1 are assets of the public employees police and fire 22.1 fund as of July 1, 1999. The participation of a consolidation 22.2 account in the Minnesota postretirement investment fund becomes 22.3 part of the participation of the public employees police and 22.4 fire fund in the Minnesota postretirement investment fund. The 22.5 remaining assets, excluding the amounts for distribution under 22.6 subdivision 7, paragraph (f), become an asset of the public 22.7 employees police and fire fund. The public employees police and 22.8 fire fund also must be calculated with the amount of receivable 22.9 assets under subdivision 7, paragraph (e). 22.10 Subd. 4. [BENEFIT COVERAGE FOR ACTIVE MEMBERS.] (a) A 22.11 person who is a police officer or a firefighter who, as such, is 22.12 an active member of a local police or fire consolidation account 22.13 on June 30, 1999, and who has not previously elected benefit 22.14 coverage under the relevant provisions of the public employees 22.15 police and fire fund benefit plan under section 353A.08, 22.16 subdivision 3, may elect benefit coverage under the relevant 22.17 provisions of the public employees police and fire fund benefit 22.18 plan or retention of benefit coverage provided by the relief 22.19 association benefit plan in effect on the effective date of the 22.20 consolidation of the local police or fire consolidation account 22.21 under chapter 353A. This election must be in writing and must 22.22 be made before September 1, 1999. 22.23 (b) If an eligible person makes no affirmative election of 22.24 benefit coverage, the person retains the benefit coverage 22.25 provided by the relief association benefit plan in effect on the 22.26 effective date of the consolidation of the local police or fire 22.27 consolidation account as reflected in the applicable provisions 22.28 of chapter 353B. The election or default election is 22.29 irrevocable. 22.30 (c) Notwithstanding any provision of section 353A.083 and 22.31 any municipal action under authority of that statute to the 22.32 contrary, the provisions of the public employees police and fire 22.33 fund benefit plan applicable to active members of the local 22.34 police or fire consolidation accounts who elect public employees 22.35 police and fire fund benefit plan under section 353A.08, 22.36 subdivision 3, or paragraph (a), are the applicable provisions 23.1 of sections 353.63 to 353.659. 23.2 Subd. 5. [BENEFIT COVERAGE FOR RETIREES AND BENEFIT 23.3 RECIPIENTS.] (a) A person who received a service pension, a 23.4 disability pension or benefit, or a survivor benefit from a 23.5 local police or fire consolidation account for the month of June 23.6 1999, and who has not previously elected participation in the 23.7 Minnesota postretirement investment fund for any future 23.8 postretirement adjustments rather than the postretirement 23.9 adjustment mechanism or mechanisms of the relief association 23.10 benefit plan under section 353A.08, subdivision 1, may elect 23.11 participation in the Minnesota postretirement investment fund 23.12 for any future postretirement adjustments or retention of the 23.13 postretirement adjustment mechanism or mechanisms of the relief 23.14 association benefit plan in effect on the effective date of the 23.15 consolidation of the local police or fire consolidation account 23.16 as reflected in the applicable provisions of chapter 353B. This 23.17 election must be in writing and must be made before September 1, 23.18 1999. 23.19 (b) If an eligible person is a minor, the election must be 23.20 made by the person's parent or legal guardian. If the eligible 23.21 person makes no affirmative election under this subdivision, the 23.22 person retains the postretirement adjustment mechanism or 23.23 mechanisms of the relief association benefit plan in effect on 23.24 the effective date of the consolidation of the local police or 23.25 fire consolidation account as reflected in the applicable 23.26 provisions of chapter 353B. 23.27 (c) The survivor benefit payable on behalf of any service 23.28 pension or disability benefit recipient who elects participation 23.29 in the Minnesota postretirement investment fund must be 23.30 calculated under the relief association benefit plan in effect 23.31 on the effective date of consolidation under chapter 353A as 23.32 reflected in the applicable provisions of chapter 353B. 23.33 Subd. 6. [BENEFIT COVERAGE FOR DEFERRED MEMBERS.] A person 23.34 who terminated active employment as a police officer or a 23.35 firefighter that gave rise to membership in a local relief 23.36 association that consolidated with the public employees police 24.1 and fire plan under chapter 353A before July 1, 1999, and had 24.2 sufficient service credit to entitle the person to an eventual 24.3 service pension retains the benefit plan in effect for the 24.4 applicable local police or paid fire relief association in 24.5 effect on the effective date of consolidation under chapter 353A 24.6 as reflected in the applicable provisions of chapter 353B, 24.7 except that the deferred member may elect before September 1, 24.8 1999, to participate, upon retirement, in the Minnesota 24.9 postretirement investment fund. Any election to participate in 24.10 the Minnesota postretirement investment fund is applicable to 24.11 any survivor benefit attributable to a deferred member covered 24.12 by this subdivision. 24.13 Subd. 7. [CALCULATION OF FINAL FUNDED STATUS.] (a) As of 24.14 June 30, 1999, the actuary retained by the legislative 24.15 commission on pensions and retirement shall determine the final 24.16 funded status of local police and fire consolidation accounts 24.17 under chapter 353A as provided in this subdivision. 24.18 (b) The final funded status calculation must be made using 24.19 the benefit plan provisions applicable to the consolidation 24.20 account and the actuarial assumptions used for the June 30, 24.21 1998, actuarial valuation of the account. 24.22 (c) The actuary must calculate the total actuarial accrued 24.23 liability of the consolidation account, which is the sum of the 24.24 actuarial accrued liability for all consolidation account 24.25 members who are not included in the participation of the account 24.26 in the Minnesota postretirement investment fund calculated by 24.27 the entry age normal actuarial cost method. The actuary also 24.28 must calculate any account unfunded accrued liability or any 24.29 account funding surplus. An account unfunded accrued liability 24.30 is the actuarial accrued liability reduced by the amount of the 24.31 current value of assets, if the resulting number is positive. 24.32 An account funding surplus is the actuarial accrued liability 24.33 reduced by the amount of the current value of assets, if the 24.34 resulting number is negative. 24.35 (d) The actuary also must calculate the amortizable base 24.36 for every consolidation account. The amortizable base is the 25.1 present value of future benefits for all account members who are 25.2 not included in the participation of the account in the 25.3 Minnesota postretirement investment fund reduced by the present 25.4 value of 19 percent of future covered salary and further reduced 25.5 by the current value of account assets other than its 25.6 participation in the Minnesota postretirement investment fund, 25.7 after adjustment for fiscal year 1999 net mortality gains and 25.8 losses and for the net actuarial affect of the election of 25.9 postretirement adjustment coverage under subdivision 5. 25.10 (e) If the amortizable base under paragraph (d) is a 25.11 positive number, the receivable assets are an amount equal to 25.12 the amortizable base number. 25.13 (f) If the amortizable base under paragraph (d) is a 25.14 negative number, the actuary must calculate the residual asset 25.15 amount. The residual asset amount is: 25.16 (1) one-half of the amount by which the current assets of 25.17 the account exceed 100 percent of the total actuarial accrued 25.18 liability up to that percentage of the total actuarial accrued 25.19 liability that equals the public employees police and fire fund 25.20 funded ratio on June 30, 1999; and 25.21 (2) the amount by which the current assets of the account 25.22 exceed that percentage of the total actuarial accrued liability 25.23 that equals the public employees police and fire fund funded 25.24 ratio on June 30, 1999. Following the calculation of the 25.25 residual asset amount for each applicable municipality and the 25.26 verification of the amount by the legislative auditor, the 25.27 executive director of the public employees retirement 25.28 association shall pay the applicable residual asset amount to 25.29 each qualifying municipality. The residual asset amount must be 25.30 used by the municipality to defray fire department expenditure 25.31 items if the residual asset amount was derived from a fire 25.32 consolidation account or to defray police department expenditure 25.33 items if the residual asset amount was derived from a police 25.34 consolidation account. 25.35 Subd. 8. [MEMBER AND EMPLOYER CONTRIBUTIONS.] (a) 25.36 Effective for the first pay period following July 1, 1999, the 26.1 employee contribution rate for former consolidation account 26.2 active members is the rate specified in section 353.65, 26.3 subdivision 2, and the regular municipal contribution rate on 26.4 behalf of former consolidation account active members is the 26.5 rate specified in section 353.65, subdivision 3. 26.6 (b) The municipality associated with a former local 26.7 consolidation account that had a positive value amortizable base 26.8 calculation under subdivision 7, paragraph (d), must make an 26.9 additional municipal contribution to the public employees police 26.10 and fire plan for the period from January 1, 2000, to December 26.11 31, 2009. The amount of the additional municipal contribution 26.12 is the amount calculated by the actuary retained by the 26.13 legislative commission on pensions and retirement and certified 26.14 by the executive director of the public employees retirement 26.15 association by which the amortizable base amount would be 26.16 amortized on a level dollar annual end-of-the-year contribution 26.17 basis, using an 8.5 percent interest rate assumption. 26.18 Subd. 9. [BENEFIT PLAN COVERAGE.] Unless modified by an 26.19 election authorized under subdivision 4, 5, or 6, the benefit 26.20 plan election by any person or on behalf of any person under 26.21 section 353A.08 remains binding. Former consolidation account 26.22 members who elected the entirety of the public employees police 26.23 and fire benefit plan are entitled to an applicable annuity or 26.24 benefit under the provisions of sections 353.63 to 353.68 in 26.25 effect on the day that the former consolidation account member 26.26 terminated active service as a police officer or firefighter, 26.27 whichever applies. 26.28 Subd. 10. [CONSOLIDATION ACCOUNT DISSOLUTION.] Upon the 26.29 payment of all residual asset amounts under subdivision 7 and 26.30 the transfer of all liabilities and remaining assets under 26.31 subdivisions 2 and 3, the local consolidation accounts under 26.32 chapter 353A in existence on March 1, 1999, dissolve. 26.33 Sec. 12. Minnesota Statutes 1998, section 356.215, 26.34 subdivision 4g, is amended to read: 26.35 Subd. 4g. [AMORTIZATION CONTRIBUTIONS.] (a) In addition to 26.36 the exhibit indicating the level normal cost, the actuarial 27.1 valuation must contain an exhibit indicating the additional 27.2 annual contribution sufficient to amortize the unfunded 27.3 actuarial accrued liability. For funds governed by chapters 3A, 27.4 352, 352B, 352C, 353, 354, 354A, and 490, the additional 27.5 contribution must be calculated on a level percentage of covered 27.6 payroll basis by the established date for full funding in effect 27.7 when the valuation is prepared. For funds governed by chapter 27.8 3A, sections 352.90 through 352.951, chapters 352B, 352C, 27.9 sections 353.63 through 353.68, and chapters 353C, 354A, and 27.10 490, the level percent additional contribution must be 27.11 calculated assuming annual payroll growth of 6.5 percent. For 27.12 funds governed by sections 352.01 through 352.86 and chapter 27.13 354, the level percent additional contribution must be 27.14 calculated assuming an annual payroll growth of five percent. 27.15 For the fund governed by sections 353.01 through 353.46, the 27.16 level percent additional contribution must be calculated 27.17 assuming an annual payroll growth of six percent. For all other 27.18 funds, the additional annual contribution must be calculated on 27.19 a level annual dollar amount basis. 27.20 (b) For any fund other than the Minneapolis employees 27.21 retirement fund, after the first actuarial valuation date 27.22 occurring after June 1, 1989, if there has not been a change in 27.23 the actuarial assumptions used for calculating the actuarial 27.24 accrued liability of the fund, a change in the benefit plan 27.25 governing annuities and benefits payable from the fund, a change 27.26 in the actuarial cost method used in calculating the actuarial 27.27 accrued liability of all or a portion of the fund, or a 27.28 combination of the three, which change or changes by themselves 27.29 without inclusion of any other items of increase or decrease 27.30 produce a net increase in the unfunded actuarial accrued 27.31 liability of the fund, the established date for full funding for 27.32 the first actuarial valuation made after June 1, 1989, and each 27.33 successive actuarial valuation is the first actuarial valuation 27.34 date occurring after June 1, 2020. 27.35 (c) For any fund or plan other than the Minneapolis 27.36 employees retirement fund, after the first actuarial valuation 28.1 date occurring after June 1, 1989, if there has been a change in 28.2 any or all of the actuarial assumptions used for calculating the 28.3 actuarial accrued liability of the fund, a change in the benefit 28.4 plan governing annuities and benefits payable from the fund, a 28.5 change in the actuarial cost method used in calculating the 28.6 actuarial accrued liability of all or a portion of the fund, or 28.7 a combination of the three, and the change or changes, by 28.8 themselves and without inclusion of any other items of increase 28.9 or decrease, produce a net increase in the unfunded actuarial 28.10 accrued liability in the fund, the established date for full 28.11 funding must be determined using the following procedure: 28.12 (i) the unfunded actuarial accrued liability of the fund 28.13 must be determined in accordance with the plan provisions 28.14 governing annuities and retirement benefits and the actuarial 28.15 assumptions in effect before an applicable change; 28.16 (ii) the level annual dollar contribution or level 28.17 percentage, whichever is applicable, needed to amortize the 28.18 unfunded actuarial accrued liability amount determined under 28.19 item (i) by the established date for full funding in effect 28.20 before the change must be calculated using the interest 28.21 assumption specified in subdivision 4d in effect before the 28.22 change; 28.23 (iii) the unfunded actuarial accrued liability of the fund 28.24 must be determined in accordance with any new plan provisions 28.25 governing annuities and benefits payable from the fund and any 28.26 new actuarial assumptions and the remaining plan provisions 28.27 governing annuities and benefits payable from the fund and 28.28 actuarial assumptions in effect before the change; 28.29 (iv) the level annual dollar contribution or level 28.30 percentage, whichever is applicable, needed to amortize the 28.31 difference between the unfunded actuarial accrued liability 28.32 amount calculated under item (i) and the unfunded actuarial 28.33 accrued liability amount calculated under item (iii) over a 28.34 period of 30 years from the end of the plan year in which the 28.35 applicable change is effective must be calculated using the 28.36 applicable interest assumption specified in subdivision 4d in 29.1 effect after any applicable change; 29.2 (v) the level annual dollar or level percentage 29.3 amortization contribution under item (iv) must be added to the 29.4 level annual dollar amortization contribution or level 29.5 percentage calculated under item (ii); 29.6 (vi) the period in which the unfunded actuarial accrued 29.7 liability amount determined in item (iii) is amortized by the 29.8 total level annual dollar or level percentage amortization 29.9 contribution computed under item (v) must be calculated using 29.10 the interest assumption specified in subdivision 4d in effect 29.11 after any applicable change, rounded to the nearest integral 29.12 number of years, but not to exceed 30 years from the end of the 29.13 plan year in which the determination of the established date for 29.14 full funding using the procedure set forth in this clause is 29.15 made and not to be less than the period of years beginning in 29.16 the plan year in which the determination of the established date 29.17 for full funding using the procedure set forth in this clause is 29.18 made and ending by the date for full funding in effect before 29.19 the change; and 29.20 (vii) the period determined under item (vi) must be added 29.21 to the date as of which the actuarial valuation was prepared and 29.22 the date obtained is the new established date for full funding. 29.23 (d) For the Minneapolis employees retirement fund, the 29.24 established date for full funding is June 30, 2020. 29.25 (e) For the following plans for which the annual actuarial 29.26 valuation indicates an excess of valuation assets over the 29.27 actuarial accrued liability, the valuation assets in excess of 29.28 the actuarial accrued liability must be recognized in the 29.29 following manner: 29.30 (1) the public employees retirement association police and 29.31 fire plan, the valuation assets in excess of the actuarial 29.32 accrued liability serve to reduce the current contribution 29.33 requirements by an amount equal to the amortization of the 29.34 excess expressed as a level percentage of pay over a 30-year 29.35 period beginning anew with each annual actuarial valuation of 29.36 the plan; and 30.1 (2) the correctional employees retirement plan of the 30.2 Minnesota state retirement system, and the state patrol 30.3 retirement plan, an excess of valuation assets over actuarial 30.4 accrued liability must be amortized in the same manner over the 30.5 same period as an unfunded actuarial accrued liability but must 30.6 serve to reduce the required contribution instead of increasing 30.7 it. 30.8 Sec. 13. Minnesota Statutes 1998, section 423A.02, is 30.9 amended by adding a subdivision to read: 30.10 Subd. 4. [LIMIT ON CERTAIN TOTAL AID AMOUNTS.] (a) The 30.11 total of amortization aid, supplemental amortization aid, and 30.12 additional amortization aid under this section to a municipality 30.13 to which section 353.665, subdivision 8, paragraph (b), applies, 30.14 may not exceed the amount of the additional municipal 30.15 contribution under section 353.665, subdivision 8, paragraph (b). 30.16 (b) Any aid amount in excess of the limit under this 30.17 subdivision shall be redistributed to the municipalities to 30.18 which section 353.665, subdivision 8, paragraph (b), applies. 30.19 The excess aid shall be distributed in proportion to each 30.20 municipality's additional municipal contribution under section 30.21 353.665, subdivision 8, paragraph (b). 30.22 (c) The sum of any aid to a municipality listed under 30.23 paragraph (a) and aid distributed to a municipality under 30.24 paragraph (b) in excess of the limit provided by this 30.25 subdivision shall be distributed as provided in paragraph (b). 30.26 (d) When the total aid for each municipality under this 30.27 subdivision equals the limit under paragraph (a), any aid in 30.28 excess of the limit cancels to the general fund. 30.29 Sec. 14. [1999 PERA-P&F ACTUARIAL VALUATION.] 30.30 (a) As of July 1, 1999, no actuarial valuations of the 30.31 local police and fire consolidation accounts in existence before 30.32 March 1, 1999, are required. 30.33 (b) The actuary retained by the legislative commission on 30.34 pensions and retirement shall prepare all calculations required 30.35 under Minnesota Statutes, section 353.655, and shall present 30.36 them to the commission in a separate report. 31.1 (c) The calculated actuarial accrued liability of the 31.2 public employees police and fire plan for July 1, 1999, must 31.3 contain all liabilities associated with the former local police 31.4 and fire consolidation accounts affected by Minnesota Statutes, 31.5 section 353.655. 31.6 (d) The asset value of the public employees police and fire 31.7 plan for July 1, 1999, is the sum of the following: 31.8 (1) the current assets of the public employees police and 31.9 fire plan as of June 30, 1999, without reference to any local 31.10 consolidation accounts in existence on March 1, 1999; 31.11 (2) the amount of assets transferred from the Minnesota 31.12 postretirement investment fund with respect to local 31.13 consolidation accounts under Minnesota Statutes, section 31.14 353.655, subdivision 3; 31.15 (3) that portion of the market value of assets of the local 31.16 consolidation accounts after subtracting the amount in clause (2) 31.17 determined by multiplying the total by the ratio that the 31.18 current asset value of public employee police and fire fund 31.19 assets other than the participation in the Minnesota 31.20 postretirement investment fund as of June 30, 1999, without 31.21 reference to any local consolidation accounts in existence on 31.22 March 1, 1999, bears to the market value of the same assets; and 31.23 (4) a receivable amount equal to the present value of the 31.24 future additional municipal contributions required under 31.25 Minnesota Statutes, section 353.655, subdivision 8, paragraph 31.26 (b). 31.27 Sec. 15. [EFFECTIVE DATE.] 31.28 Sections 1 to 14 are effective on the day following final 31.29 enactment.