HF 2091

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; legislators retirement plan;
recodifying plan provisions; amending Minnesota
Statutes 2004, sections 3A.01, subdivisions 1, 2, 6,
8, by adding subdivisions; 3A.011; 3A.02, subdivisions
1, 1b, 3, 4, 5; 3A.03, subdivisions 1, 2; 3A.04,
subdivisions 1, 2, 3, 4, by adding a subdivision;
3A.05; 3A.07; 3A.10, subdivision 1; 3A.12; 3A.13;
repealing Minnesota Statutes 2004, sections 3A.01,
subdivisions 3, 4, 6a, 7; 3A.02, subdivision 2; 3A.04,
subdivision 1; 3A.09.

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

Section 1.

Minnesota Statutes 2004, section 3A.01,
subdivision 1, is amended to read:

Subdivision 1.

Purposes.

new text begin Each of new text end the terms defined in
this section new text begin , new text end for the purposes of this chapter deleted text begin shall be
given deleted text end new text begin has new text end the deleted text begin meanings deleted text end new text begin meaning new text end ascribed deleted text begin to them deleted text end .

Sec. 2.

Minnesota Statutes 2004, section 3A.01, is amended
by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Actuarial equivalent. new text end

new text begin "Actuarial equivalent"
means the condition of one allowance or benefit having an equal
actuarial present value to another allowance or benefit,
determined by the actuary retained under section 356.214 as of a
given date at a specified age with each actuarial present value
based on the mortality table applicable for the plan and
approved under section 356.215, subdivision 18, and using the
applicable preretirement or postretirement interest rate
assumption specified in section 356.215, subdivision 8.
new text end

Sec. 3.

Minnesota Statutes 2004, section 3A.01, is amended
by adding a subdivision to read:

new text begin Subd. 1b. new text end

new text begin Average monthly salary. new text end

new text begin "Average monthly
salary" means the average of the member's highest five
successive years of salary that was received as a member of the
legislature and upon which the member has made contributions
under section 3A.03, subdivision 1, or for which the member of
the legislature has made payments for past service under section
3A.02, subdivision 2, or has made, before July 1, 1994, payments
in lieu of contributions under Minnesota Statutes 1992, section
3A.031.
new text end

Sec. 4.

Minnesota Statutes 2004, section 3A.01, is amended
by adding a subdivision to read:

new text begin Subd. 1c. new text end

new text begin Constitutional officer. new text end

new text begin "Constitutional
officer" means a person who was duly elected, qualifies for, and
serves as the governor, the lieutenant governor, the attorney
general, the secretary of state, or the state auditor of the
state of Minnesota.
new text end

Sec. 5.

Minnesota Statutes 2004, section 3A.01,
subdivision 2, is amended to read:

Subd. 2.

Dependent child.

new text begin (a) new text end "Dependent child" means
any natural or adopted child of a deceased member of the
legislature or new text begin a new text end former legislator who is under the age of 18,
or who is under the age of 22 and is a full-time student, and
who new text begin , new text end in either case new text begin , new text end is unmarried and was actually dependent for
more than one-half of support upon deleted text begin such deleted text end new text begin the new text end legislator for a
period new text begin of new text end at least 90 days immediately deleted text begin prior to deleted text end new text begin before new text end the
legislator's death. deleted text begin It
deleted text end

new text begin (b) The term new text end also includes any child of the member of the
legislature or former legislator new text begin who was new text end conceived during the
lifetime of, and new text begin who was new text end born after the death of, the member or
former legislator. deleted text begin This subdivision shall be retroactive as to
any dependent child under the age of 22 years as of April 1,
1975.
deleted text end

Sec. 6.

Minnesota Statutes 2004, section 3A.01,
subdivision 6, is amended to read:

Subd. 6.

Director.

"Director" means the executive
director of the Minnesota State Retirement System new text begin who was
appointed under section 352.03, subdivision 5 new text end .

Sec. 7.

Minnesota Statutes 2004, section 3A.01, is amended
by adding a subdivision to read:

new text begin Subd. 6b. new text end

new text begin Former legislator. new text end

new text begin "Former legislator" means a
legislator who has ceased to be a member of the legislature for
any reason, including, but not limited to, the expiration of the
term for which a member of the legislature was elected or the
death of the member.
new text end

Sec. 8.

Minnesota Statutes 2004, section 3A.01, is amended
by adding a subdivision to read:

new text begin Subd. 6c. new text end

new text begin Member of the legislature. new text end

new text begin "Member of the
legislature" means a person who was a member of the House of
Representatives or of the Senate of the state of Minnesota who
has subscribed to the oath of office after July 1, 1965, and who
was first elected to a legislative office before July 1, 1997,
and retained coverage by the plan under Laws 1997, chapter 233,
article 2, section 15.
new text end

Sec. 9.

Minnesota Statutes 2004, section 3A.01,
subdivision 8, is amended to read:

Subd. 8.

Normal retirement age.

"Normal retirement age"
means the age of deleted text begin 60 years with regard to any member of the
legislature whose service terminates prior to the beginning of
the 1981 legislative session, and the age of deleted text end 62 years deleted text begin with
regard to any member of the legislature whose service terminates
after the beginning of the 1981 session deleted text end .

Sec. 10.

Minnesota Statutes 2004, section 3A.01, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Retirement. new text end

new text begin "Retirement" means the period of
time after which a former legislator is entitled to a retirement
allowance.
new text end

Sec. 11.

Minnesota Statutes 2004, section 3A.01, is
amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Salary. new text end

new text begin (a) "Salary" means the regular
compensation payable under law to a member of the legislature
and paid to the person for service as a legislator.
new text end

new text begin (b) The term includes the monthly compensation paid to the
member of the legislature and the per diem payments paid during
a regular or special session to the member of the legislature.
new text end

new text begin (c) The term does not include per diem payments paid to a
member of the legislature other than during the regular or
special session; additional compensation attributable to a
leadership position under section 3.099, subdivision 3; living
expense payments under section 3.101; and special session living
expense payments under section 3.103.
new text end

Sec. 12.

Minnesota Statutes 2004, section 3A.011, is
amended to read:

3A.011 ADMINISTRATION OF PLAN.

The new text begin executive director and the board of directors of the
new text end Minnesota State Retirement System shall administer the
legislators retirement plan in accordance with new text begin this chapter and
new text end chapter 356A.

Sec. 13.

Minnesota Statutes 2004, section 3A.02,
subdivision 1, is amended to read:

Subdivision 1.

Qualifications.

(a) A former legislator
is entitled, upon written application to the director, to
receive a retirement allowance monthly, if the person:

(1) has new text begin either new text end served at least six full years, without
regard to the application of section 3A.10, subdivision 2, or
has served during all or part of four regular sessions as a
member of the legislature, which service need not be continuous;

(2) has attained the normal retirement age;

(3) has retired as a member of the legislature; and

(4) has made all contributions provided for in section
3A.03, has made payments for past service under subdivision 2,
or has made payments in lieu of contributions under Minnesota
Statutes 1992, section 3A.031, deleted text begin prior to deleted text end new text begin before new text end July 1, 1994.

(b) deleted text begin This paragraph applies to members of the legislature
who terminate service as a legislator before July 1, 1997. For
service rendered before the beginning of the 1979 legislative
session, but not to exceed eight years of service, the
retirement allowance is an amount equal to five percent per year
of service of that member's average monthly salary. For service
in excess of eight years rendered before the beginning of the
1979 legislative session, and for service rendered after the
beginning of the 1979 legislative session, deleted text end new text begin Unless the former
legislator has legislative service before January 1, 1979, new text end the
retirement allowance is an amount equal to 2-1/2 percent per
year of service of that member's average monthly salary deleted text begin .
deleted text end

deleted text begin (c) This paragraph applies to members of the legislature
who terminate service as a legislator after June 30, 1997. The
retirement allowance is an amount equal to the applicable rate
or rates under paragraph (b) per year of service of the member's
average monthly salary deleted text end new text begin and new text end adjusted for that person on an
actuarial equivalent basis to reflect the change in the
postretirement interest rate actuarial assumption under section
356.215, subdivision 8, from five percent to six percent. The
adjustment must be calculated by or, alternatively, the
adjustment procedure must be specified by, the actuary retained
deleted text begin by the Legislative Commission on Pensions and Retirement deleted text end new text begin under
section 356.214 new text end . The purpose of this adjustment is to ensure
that the total amount of benefits that the actuary predicts an
individual member will receive over the member's lifetime under
this paragraph will be the same as the total amount of benefits
the actuary predicts the individual member would receive over
the member's lifetime under the law in effect before enactment
of this paragraph. new text begin If the former legislator has legislative
service before January 1, 1979, the person's benefit must
include the additional benefit amount in effect on January 1,
1979, and adjusted as otherwise provided in this paragraph.
new text end

deleted text begin (d) deleted text end new text begin (c) new text end The retirement allowance accrues beginning with the
first day of the month of receipt of the application, but not
before age 60, and for the remainder of the former legislator's
life, if the former legislator is not serving as a member of the
legislature or as a constitutional officer deleted text begin or commissioner deleted text end as
defined in deleted text begin section 352C.021, subdivisions 2 and 3 deleted text end new text begin subdivision 1b new text end .
The annuity does not begin to accrue deleted text begin prior to deleted text end new text begin before the
person's new text end retirement as a legislator. No annuity payment may be
made retroactive for more than 180 days before the date new text begin that new text end the
annuity application is filed with the director.

deleted text begin (e) deleted text end new text begin (d) new text end Any member who has served during all or part of
four regular sessions is considered to have served eight years
as a member of the legislature.

deleted text begin (f) deleted text end new text begin (e) new text end The retirement allowance ceases with the last
payment that accrued to the retired legislator during the
retired legislator's lifetime, except that the surviving spouse,
if any, is entitled to new text begin receive new text end the retirement allowance new text begin of the
retired legislator new text end for the calendar month in which the retired
legislator died.

Sec. 14.

Minnesota Statutes 2004, section 3A.02,
subdivision 1b, is amended to read:

Subd. 1b.

Reduced retirement allowance.

(a) Upon
separation from service after the beginning of the 1981
legislative session, a former member of the legislature who has
attained the age set by the board of directors of the Minnesota
State Retirement System and who is otherwise qualified deleted text begin in
accordance with deleted text end new text begin under new text end subdivision 1 is entitled new text begin , new text end upon making
written application on deleted text begin forms supplied deleted text end new text begin a form prescribed new text end by the
director new text begin , new text end to a new text begin reduced new text end retirement allowance deleted text begin in deleted text end new text begin . The reduced
retirement allowance is new text end an amount equal to the retirement
allowance specified in subdivision 1 new text begin , paragraph (b), that is
new text end reduced so that the reduced deleted text begin annuity deleted text end new text begin allowance new text end is the actuarial
equivalent of the deleted text begin annuity deleted text end new text begin allowance new text end that would be payable if the
former member of the legislature deferred receipt of the deleted text begin annuity
deleted text end new text begin allowance new text end and the deleted text begin annuity deleted text end new text begin allowance new text end amount deleted text begin were deleted text end new text begin was new text end augmented
at an annual rate of three percent compounded annually from the
date the deleted text begin annuity deleted text end new text begin allowance new text end begins to accrue until age 62.

(b) The age set by the board of directors under paragraph
(a) cannot be deleted text begin less deleted text end new text begin an earlier age new text end than the early retirement age
under section 352.116, subdivision 1a.

(c) If there is an actuarial cost to the plan of resetting
the early retirement age under paragraph (a), the retired
legislator is required to pay an additional amount to cover the
full actuarial value. The additional amount must be paid in a
lump sum within 30 days of the certification of the amount by
the executive director.

(d) The executive director of the Minnesota State
Retirement System shall report to the Legislative Commission on
Pensions and Retirement on the utilization of this
provision new text begin annually new text end on or before September 1 deleted text begin , 2000 deleted text end .

Sec. 15.

Minnesota Statutes 2004, section 3A.02,
subdivision 3, is amended to read:

Subd. 3.

Appropriation.

The amounts required for payment
of retirement allowances provided by this section are
appropriated annually to the director from the participation new text begin of
the legislators retirement plan new text end in the Minnesota postretirement
investment fund deleted text begin and shall deleted text end new text begin . The retirement allowance must new text end be
paid monthly to the recipients entitled deleted text begin thereto deleted text end new text begin to those
retirement allowances new text end .

Sec. 16.

Minnesota Statutes 2004, section 3A.02,
subdivision 4, is amended to read:

Subd. 4.

Deferred annuities augmentation.

(a) The
deferred deleted text begin annuity deleted text end new text begin retirement allowance new text end of any former legislator
must be augmented as provided herein.

new text begin (b) new text end The required reserves applicable to the
deferred deleted text begin annuity deleted text end new text begin retirement allowance new text end , determined as of the date
the benefit begins to accrue using an appropriate mortality
table and an interest assumption of six percent, must be
augmented from the first of the month following new text begin the new text end termination
of new text begin active new text end service, or July 1, 1973, whichever is later, to the
first day of the month in which the deleted text begin annuity deleted text end new text begin allowance new text end begins to
accrue, at the new text begin following annually compounded new text end rate deleted text begin of deleted text end new text begin or rates:
new text end

deleted text begin five percent per annum compounded annually until January 1,
1981, and thereafter at the rate of three percent per annum
compounded annually until January 1 of the year in which the
former legislator attains age 55. From that date to the
effective date of retirement, the rate is five percent
compounded annually.
deleted text end

new text begin rate new text end new text begin period
(1) five percent new text end new text begin until January 1, 1981
new text end

new text begin (2) three percent new text end new text begin from January 1, 1981, or from the
first day of the month following
the termination of active service,
whichever is later, until January 1
of the year in which the former
legislator attains age 55
(3) five percent new text end new text begin from the period end date under
clause (2) to the effective date
of retirement.
new text end

deleted text begin (b) The retirement allowance of, or the survivor benefit
payable on behalf of, a former member of the legislature who
terminated service before July 1, 1997, which is not first
payable until after June 30, 1997, must be increased on an
actuarial equivalent basis to reflect the change in the
postretirement interest rate actuarial assumption under section
356.215, subdivision 8, from five percent to six percent under a
calculation procedure and tables adopted by the board of
directors of the Minnesota State Retirement System and approved
by the actuary retained by the Legislative Commission on
Pensions and Retirement.
deleted text end

Sec. 17.

Minnesota Statutes 2004, section 3A.02,
subdivision 5, is amended to read:

Subd. 5.

Optional annuities.

(a) The board of directors
shall establish an optional retirement annuity in the form of a
joint and survivor annuity and an optional retirement annuity in
the form of a period certain and life thereafter. Except as
provided in paragraph (b), these optional annuity forms must be
actuarially equivalent to the normal deleted text begin annuity deleted text end new text begin allowance new text end computed
under this section, plus the actuarial value of any surviving
spouse benefit otherwise potentially payable at the time of
retirement under section 3A.04, subdivision 1. An individual
selecting an optional annuity under this subdivision deleted text begin waives deleted text end new text begin and
the person's spouse waive new text end any rights to surviving spouse
benefits under section 3A.04, subdivision 1.

(b) If a retired legislator selects the joint and survivor
annuity option, the retired legislator must receive a normal
single-life deleted text begin annuity deleted text end new text begin allowance new text end if the designated optional annuity
beneficiary dies before the retired legislator and no reduction
may be made in the annuity to provide for restoration of the
normal single-life deleted text begin annuity deleted text end new text begin allowance new text end in the event of the death
of the designated optional annuity beneficiary.

(c) The surviving spouse of a legislator who has attained
at least age 60 and who dies while a member of the legislature
may elect an optional joint and survivor annuity under paragraph
(a), in lieu of surviving spouse benefits under section 3A.04,
subdivision 1.

Sec. 18.

Minnesota Statutes 2004, section 3A.03,
subdivision 1, is amended to read:

Subdivision 1.

Percentage.

new text begin (a) new text end Every member of the
legislature shall contribute nine percent of total salary deleted text begin , deleted text end new text begin .
new text end

new text begin (b) The contribution must be made new text end by payroll deduction deleted text begin ,
to deleted text end new text begin and must new text end be paid into the state treasury and deposited in the
general fund. deleted text begin It shall be the duty of
deleted text end

new text begin (c) new text end The director deleted text begin to deleted text end new text begin must new text end record the periodic contributions
of each member of the legislature and new text begin must new text end credit deleted text begin such deleted text end new text begin each
new text end contribution to the member's account.

Sec. 19.

Minnesota Statutes 2004, section 3A.03,
subdivision 2, is amended to read:

Subd. 2.

Refund.

(a) A former member who has made
contributions under subdivision 1 and who is no longer a member
of the legislature is entitled to receive, upon written
application to the executive director on a form prescribed by
the executive director, a refund new text begin from the general fund new text end of all
contributions credited to the member's account with interest
computed as provided in section 352.22, subdivision 2.

(b) The refund of contributions as provided in paragraph (a)
terminates all rights of a former member of the legislature and
the survivors of the former member under this chapter.

(c) If the former member of the legislature again becomes a
member of the legislature after having taken a refund as
provided in paragraph (a), the member deleted text begin must be considered deleted text end new text begin is new text end a
deleted text begin new deleted text end member of deleted text begin this plan deleted text end new text begin the unclassified employees retirement
program of the Minnesota State Retirement System new text end .

new text begin (d) new text end However, the member may reinstate the rights and credit
for service previously forfeited new text begin under this chapter new text end if the
member repays all refunds taken new text begin , new text end plus interest at an annual rate
of 8.5 percent compounded annually from the date on which the
refund was taken to the date on which the refund is repaid.

deleted text begin (d) deleted text end new text begin (e) new text end No person may be required to apply for or to accept
a refund.

Sec. 20.

Minnesota Statutes 2004, section 3A.04,
subdivision 1, is amended to read:

Subdivision 1.

Surviving spouse.

new text begin (a) new text end Upon the death of a
member of the legislature while serving as deleted text begin such deleted text end new text begin a new text end member deleted text begin after
June 30, 1973 deleted text end , or upon the death of a former member of the
legislature with at least deleted text begin the number of deleted text end new text begin six full new text end years of
service deleted text begin as required by section 3A.02, subdivision 1, clause
(1) deleted text end new text begin or service in all or part of four regular legislative
sessions new text end , the surviving spouse deleted text begin shall be paid deleted text end new text begin is entitled to new text end a
survivor benefit deleted text begin in the amount of deleted text end new text begin .
new text end

new text begin (b) The surviving spouse benefit is new text end one-half of the
retirement allowance of the member of the legislature computed
as though the member were at least normal retirement age on the
date of death and based upon new text begin the member's new text end allowable service
or new text begin upon new text end eight years new text begin , new text end whichever is greater. The augmentation
provided in section 3A.02, subdivision 4, if applicable, deleted text begin shall
deleted text end new text begin must new text end be applied new text begin for the period up new text end to new text begin , and including, new text end the month
of death.

new text begin (c) new text end Upon the death of a former legislator receiving a
retirement allowance, the surviving spouse deleted text begin shall be deleted text end new text begin is new text end entitled
to one-half of the amount of the new text begin retirement new text end allowance being paid
to the legislator. deleted text begin Such
deleted text end

new text begin (d) The surviving spouse new text end benefit deleted text begin shall be paid during deleted text end new text begin is
payable for new text end the lifetime of the surviving spouse.

Sec. 21.

Minnesota Statutes 2004, section 3A.04,
subdivision 2, is amended to read:

Subd. 2.

Dependent children.

new text begin (a) new text end Upon the death of a
member of the legislature while serving as a member, or upon the
death of a former member of the legislature who has rendered at
least deleted text begin the number of deleted text end new text begin six full new text end years of service deleted text begin as required by
section 3A.02, subdivision 1, clause (1) deleted text end new text begin or service in all or
part of four regular legislative sessions new text end and who was not
receiving a retirement allowance, each dependent child of the
member or former legislator deleted text begin shall be deleted text end new text begin is new text end entitled to receive a
survivor benefit in the following amount:

new text begin (1) for the new text end first dependent child, a monthly deleted text begin allowance
which equals deleted text end new text begin benefit equal to new text end 25 percent of the monthly
retirement allowance of the member of the legislature or new text begin the
new text end former legislator computed as though the member or new text begin the new text end former
legislator had attained at least the normal retirement age on
the date of death and based upon the average monthly salary as
of the date of death or as of the date of termination, whichever
deleted text begin is applicable deleted text end new text begin applies new text end , and the new text begin member's new text end allowable service or
eight years new text begin , new text end whichever is greater;

new text begin (2) new text end for each additional dependent child, a monthly
deleted text begin allowance which equals deleted text end new text begin benefit equal to new text end 12-1/2 percent of the
monthly retirement allowance of the member or new text begin the new text end former
legislator computed as new text begin provided new text end in deleted text begin the case of the first child
deleted text end new text begin clause (1) new text end ; deleted text begin but deleted text end new text begin and
new text end

new text begin (3) new text end the total amount paid to the surviving spouse and new text begin to
the new text end dependent new text begin child or new text end children deleted text begin shall deleted text end new text begin may new text end not exceed new text begin , new text end in any
one month new text begin , new text end 100 percent of the monthly retirement allowance of
the member or new text begin of the new text end former legislator computed as new text begin provided new text end in
deleted text begin the case of the first child deleted text end new text begin clause (1) new text end .

new text begin (b) new text end The augmentation provided in section 3A.02, subdivision
4, if applicable, deleted text begin shall be applied deleted text end new text begin applies new text end from the first day of
the month next following the date of new text begin the new text end termination of new text begin the
person from new text end service as a member of the legislature to the month
of new text begin the new text end death new text begin of the person new text end .

new text begin (c) new text end Upon the death of a former legislator who was receiving
a retirement allowance, deleted text begin the deleted text end new text begin a new text end surviving dependent child deleted text begin shall be
deleted text end new text begin is new text end entitled to the applicable percentage specified deleted text begin above deleted text end new text begin in
paragraph (a), clause (1) or (2), whichever applies, new text end of the
amount of the allowance which was paid to the former legislator
for the month immediately deleted text begin prior to deleted text end new text begin before new text end the date of death new text begin of
the former legislator new text end .

new text begin (d) new text end The payments for dependent children deleted text begin shall deleted text end new text begin must new text end be made
to the surviving spouse or new text begin to new text end the guardian of the estate of the
dependent children, if there is one.

Sec. 22.

Minnesota Statutes 2004, section 3A.04,
subdivision 3, is amended to read:

Subd. 3.

Payment.

The surviving deleted text begin spouse's deleted text end new text begin spouse new text end and
dependent deleted text begin children's deleted text end new text begin child or children new text end survivor benefits payable
under this section deleted text begin shall be paid deleted text end new text begin are payable new text end by the director
monthly in the same manner as retirement allowances are
authorized to be paid by this chapter.

Sec. 23.

Minnesota Statutes 2004, section 3A.04,
subdivision 4, is amended to read:

Subd. 4.

Death refunds.

new text begin (a) new text end Upon the death of a member
of the legislature or new text begin of a new text end former legislator who was not
receiving a retirement allowance deleted text begin , deleted text end without new text begin leaving new text end either a
surviving spouse or new text begin a new text end dependent new text begin child or dependent new text end children, the
last designated beneficiary named on a form new text begin that was new text end filed with
the director before the death of the legislator, or if no
designation is filed, the estate of the member or new text begin the new text end former
legislator, upon application, deleted text begin shall be deleted text end new text begin is new text end entitled to a refund new text begin .
new text end

new text begin (b) The refund is the amount of contributions credited to
the person's account new text end plus interest as provided in section 3A.03,
subdivision 2, deleted text begin clause (2) deleted text end new text begin paragraph (a) new text end .

Sec. 24.

Minnesota Statutes 2004, section 3A.04, is
amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin The survivor benefits and the
death refunds authorized by this section are appropriated to the
director from the general fund when they are due and payable.
new text end

Sec. 25.

Minnesota Statutes 2004, section 3A.05, is
amended to read:

3A.05 APPLICATION FOR SURVIVOR BENEFIT.

new text begin (a) new text end Applications for survivor benefits deleted text begin pursuant to deleted text end new text begin under
new text end section 3A.04 deleted text begin shall deleted text end new text begin must new text end be filed with the director by the
surviving spouse and dependent new text begin child or new text end children entitled to
benefits deleted text begin pursuant to deleted text end new text begin under new text end section 3A.04, or by the guardian of
the estate, if there is one, of the dependent new text begin child or new text end children.

new text begin (b) new text end Survivor benefits deleted text begin shall deleted text end accrue as of the first day of
the month following the death of the member of the legislature
or former legislator and payments deleted text begin shall deleted text end commence as of the first
of the month next following the filing of the application,
and deleted text begin shall be deleted text end new text begin are new text end retroactive to the date the benefit accrues deleted text begin ;
provided, however, that no payment shall be retroactive for more
than deleted text end new text begin or the first of the month occurring new text end 12 months deleted text begin prior
to deleted text end new text begin before new text end the month new text begin in which new text end the application is filed with the
director new text begin , whichever is earlier new text end .

Sec. 26.

Minnesota Statutes 2004, section 3A.07, is
amended to read:

3A.07 APPLICATION.

(a) Except as provided in paragraph (b), this chapter
applies to members of the legislature in service after July 1,
1965, who otherwise meet the requirements of this chapter.

(b) Members of the legislature who were elected for the
first time after June 30, 1997, or members of the legislature
who were elected before July 1, 1997, and who, after July 1,
1998, elect not to be members of the plan established by this
chapter are covered by the unclassified employees retirement
program governed by chapter 352D.

(c) The post-July 1, 1998, coverage election under
paragraph (b) is irrevocable and must be made on a form
prescribed by the director. new text begin The second chance referendum
election under Laws 2002, chapter 392, article 15, also is
irrevocable.
new text end

Sec. 27.

Minnesota Statutes 2004, section 3A.10,
subdivision 1, is amended to read:

Subdivision 1.

Service credit for legislative term.

new text begin (a)
new text end In the case of a member of the house of representatives new text begin , new text end one
full term of office deleted text begin shall deleted text end new text begin must new text end be considered two full years new text begin of
new text end service new text begin , new text end notwithstanding the fact that the oath of office deleted text begin may be
deleted text end new text begin was new text end taken on different days each biennium.

new text begin (b) new text end In the case of a member of the senate, one full term of
office deleted text begin shall deleted text end new text begin must new text end be considered four full years new text begin of new text end service new text begin ,
new text end notwithstanding the fact that the oath of office deleted text begin may be deleted text end new text begin was
new text end taken on different days at the start of each term.

new text begin (c) new text end For purposes of this chapter, a legislative term deleted text begin shall
deleted text end new text begin must new text end be deemed to commence on January deleted text begin 1st deleted text end new text begin 1 new text end and to end on
December deleted text begin 31st deleted text end new text begin 31 new text end .

Sec. 28.

Minnesota Statutes 2004, section 3A.12, is
amended to read:

3A.12 COVERAGE BY MORE THAN ONE RETIREMENT SYSTEM OR
ASSOCIATION.

Subdivision 1.

Entitlement to annuity.

new text begin (a) new text end Any
legislator who has been deleted text begin an employee covered by deleted text end new text begin a member of a
retirement plan listed in paragraph (b) is entitled, when
otherwise qualified, to a retirement allowance or annuity from
each plan if the total allowable service in all plans or in any
two of these plans totals ten or more years.
new text end

new text begin (b) This section applies to any retirement plan or program
administered by new text end the Minnesota State Retirement System, or deleted text begin a
member of deleted text end new text begin any retirement plan administered by new text end the Public
Employees Retirement Association new text begin , new text end including the Public Employees
Retirement Association police and fire fund, or the Teachers
Retirement Association, or the Minneapolis employees
retirement deleted text begin Fund deleted text end new text begin plan new text end , or the State Patrol retirement deleted text begin fund deleted text end new text begin plan new text end ,
or any other public employee retirement system in the state of
Minnesota having a like provision deleted text begin but excluding all deleted text end new text begin .
new text end

new text begin (c) This section does not apply to new text end other deleted text begin funds deleted text end new text begin retirement
plans new text end providing benefits for police or firefighters deleted text begin , shall be
entitled when qualified to an annuity from each fund if the
total allowable service for which the legislator has credit in
all funds or in any two of these funds totals ten or more years,
provided deleted text end new text begin .
new text end

new text begin (d) new text end No portion of the allowable service upon which the
retirement annuity from one deleted text begin fund deleted text end new text begin plan new text end is based is again used in
the computation for benefits from another deleted text begin fund deleted text end new text begin plan new text end . The
annuity from each deleted text begin fund shall deleted text end new text begin plan must new text end be determined by the
appropriate provisions of the law new text begin , new text end except that the requirement
that a person must have deleted text begin at least ten deleted text end new text begin a minimum number of new text end years
new text begin of new text end allowable service in the respective system or
association deleted text begin shall deleted text end new text begin does new text end not apply for the purposes of this
section deleted text begin provided deleted text end new text begin if new text end the combined service in two or more of these
deleted text begin funds deleted text end new text begin plans new text end equals ten or more years. The augmentation of
deferred annuities provided in section 3A.02, subdivision
4, deleted text begin shall apply deleted text end new text begin applies new text end to the annuities accruing deleted text begin hereunder deleted text end new text begin under
this section new text end .

Subd. 2.

Refund repayment.

deleted text begin Any deleted text end new text begin A new text end former legislator who
has received a refund as provided in section 3A.03, subdivision
2, who is a currently contributing member of a retirement deleted text begin fund
deleted text end new text begin plan new text end specified in subdivision 1 new text begin , paragraph (b) new text end , may repay the
refund as provided in section 3A.03, subdivision 2. deleted text begin Any deleted text end new text begin A
new text end member of the legislature who has received a refund from any of
the deleted text begin funds deleted text end new text begin retirement plans new text end specified in subdivision 1 deleted text begin , deleted text end may repay
the refund to the respective deleted text begin fund deleted text end new text begin plan new text end under such terms and
conditions consistent with the law governing deleted text begin such fund deleted text end new text begin the
retirement plan new text end if the law governing deleted text begin such fund deleted text end new text begin the plan new text end permits
the repayment of refunds. If the total amount to be repaid,
including principal and interest exceeds $2,000, repayment may
be made in three equal installments over a period of 18 months,
with new text begin the new text end interest accrued during the period of new text begin the new text end repayment
added to the final installment.

Sec. 29.

Minnesota Statutes 2004, section 3A.13, is
amended to read:

3A.13 EXEMPTION FROM PROCESS AND TAXATION; HEALTH PREMIUM
DEDUCTION.

new text begin (a) new text end The provisions of section 352.15 deleted text begin shall deleted text end apply to the
legislators retirement plan, chapter 3A.

new text begin (b) new text end The executive director of the Minnesota State
Retirement System must, at the request of a retired legislator
who is enrolled in a health insurance plan covering state
employees, deduct the person's health insurance premiums from
the person's annuity and transfer the amount of the premium to a
health insurance carrier covering state employees.

Sec. 30. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 3A.01, subdivisions 3, 4,
6a, and 7; 3A.02, subdivision 2; 3A.04, subdivision 1; and
3A.09, are repealed.
new text end

Sec. 31. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 30 are effective on July 1, 2005.
new text end