Engrossments
Introduction		Posted on 02/09/2012

ARTICLE 2

CONFORMING CHANGES RELATED TO INTEREST RATE
ASSUMPTION CHANGE

Section 1.

Minnesota Statutes 2010, section 3A.03, subdivision 2, is amended to read:

Subd. 2.

Refundnew text begin ; refund repaymentnew text end .

(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 from the general fund 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 is a member of the
unclassified employees retirement program of the Minnesota State Retirement System.

(d) However, the member may reinstate the rights and credit for service previously
forfeited under this chapter if the member repays all refunds taken, plus interest at deleted text begin andeleted text end
new text begin the applicable new text end annual rate deleted text begin of 8.5 percentdeleted text end compounded annually from the date on which
the refund was taken to the date on which the refund is repaid.new text begin The applicable rate is 8.5
percent for the period before July 1, 2012, and the period after June 30, 2021, and is 8.0
percent for the period from July 1, 2012, through June 30, 2021.
new text end

(e) No person may be required to apply for or to accept a refund.

Sec. 2.

Minnesota Statutes 2010, section 352.01, subdivision 13a, is amended to read:

Subd. 13a.

Reduced salary during period of workers' compensation.

An
employee on leave of absence receiving temporary workers' compensation payments and a
reduced salary or no salary from the employer who is entitled to allowable service credit
for the period of absence, may make payment to the fund for the difference between salary
received, if any, and the salary the employee would normally receive if not on leave of
absence during the period. The employee shall pay an amount equal to the employee and
employer contribution rate under section 352.04, subdivisions 2 and 3, on the differential
salary amount for the period of the leave of absence.

The employing department, at its option, may pay the employer amount on behalf
of its employees. Payment made under this subdivision must include interest at the
new text begin applicable new text end rate deleted text begin of 8.5 percentdeleted text end per year, and must be completed within one year of the
return from leave of absence.new text begin The applicable rate is 8.5 percent for the period before July
1, 2012, and the period after June 30, 2021, and is 8.0 percent for the period from July
1, 2012, through June 30, 2021.
new text end

Sec. 3.

Minnesota Statutes 2010, section 352.017, subdivision 2, is amended to read:

Subd. 2.

Purchase procedure.

(a) An employee covered by a plan specified in
this chapter may purchase credit for allowable service in that plan for a period specified
in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c),
whichever applies. The employing unit, at its option, may pay the employer portion of the
amount specified in paragraph (b) on behalf of its employees.

(b) If payment is received by the executive director within one year from the date the
employee returned to work following the authorized leave, the payment amount is equal to
the employee and employer contribution rates specified in law for the applicable plan at
the end of the leave period multiplied by the employee's hourly rate of salary on the date
of return from the leave of absence and by the days and months of the leave of absence for
which the employee is eligible for allowable service credit. The payment must include
compound interest at deleted text begin adeleted text end new text begin the applicable new text end monthly rate deleted text begin of 0.71 percentdeleted text end from the last day of the
leave period until the last day of the month in which payment is received. new text begin The applicable
rate is 0.71 percent before July 1, 2012, and the period after June 30, 2021, and is 0.667
percent for the period from July 1, 2012, through June 30, 2021. new text end If payment is received
by the executive director after one year, the payment amount is the amount determined
under section 356.551. Payment under this paragraph must be made before the date of
termination from public employment covered under this chapter.

(c) If the employee terminates employment covered by this chapter during the leave
or following the leave rather than returning to covered employment, payment must be
received by the executive director within 30 days after the termination date. The payment
amount is equal to the employee and employer contribution rates specified in law for the
applicable plan on the day prior to the termination date, multiplied by the employee's
hourly rate of salary on that date and by the days and months of the leave of absence
prior to termination.

Sec. 4.

Minnesota Statutes 2010, section 352.04, subdivision 8, is amended to read:

Subd. 8.

Department required to pay omitted salary deductions.

(a) If a
department fails to take deductions past due for a period of 60 days or less from an
employee's salary as provided in this section, those deductions must be taken on later
payroll abstracts.

(b) If a department fails to take deductions past due for a period in excess of 60
days from an employee's salary as provided in this section, the department, and not the
employee, must pay on later payroll abstracts the employee and employer contributions
and an amount equivalent to deleted text begin 8.5deleted text end new text begin the applicable new text end percent of the total amount due in lieu of
interest, or if the delay in payment exceeds one year, deleted text begin 8.5 percentdeleted text end new text begin the applicable rate of
new text end compound annual interest.new text begin The applicable percent or rate is 8.5 percent for the period
before July 1, 2012, and the period after June 30, 2021, and is 8.0 percent for the period
from July 1, 2012, through June 30, 2021.
new text end

(c) If a department fails to take deductions past due for a period of 60 days or less
and the employee is no longer in state service so that the required deductions cannot be
taken from the salary of the employee, the department must nevertheless pay the required
employer contributions. If any department fails to take deductions past due for a period in
excess of 60 days and the employee is no longer in state service, the omitted contributions
must be recovered under paragraph (b).

(d) If an employee from whose salary required deductions were past due for a period
of 60 days or less leaves state service before the payment of the omitted deductions and
subsequently returns to state service, the unpaid amount is considered the equivalent of a
refund. The employee accrues no right by reason of the unpaid amount, except that the
employee may pay the amount of omitted deductions as provided in section 352.23.

Sec. 5.

Minnesota Statutes 2010, section 352.04, subdivision 9, is amended to read:

Subd. 9.

Erroneous deductions, canceled warrants.

(a) Deductions taken from
the salary of an employee for the retirement fund in excess of required amounts must,
upon discovery and verification by the department making the deduction, be refunded to
the employee.

(b) If a deduction for the retirement fund is taken from a salary warrant or check,
and the check is canceled or the amount of the warrant or check returned to the funds of
the department making the payment, the sum deducted, or the part of it required to adjust
the deductions, must be refunded to the department or institution if the department applies
for the refund on a form furnished by the director. The department's payments must
likewise be refunded to the department.

(c) If erroneous employee deductions and employer contributions are caused by an
error in plan coverage involving the plan and any other plans specified in section 356.99,
that section applies. If the employee should have been covered by the plan governed by
chapter 352D, 353D, 354B, or 354D, the employee deductions and employer contributions
taken in error must be directly transferred to the applicable employee's account in the
correct retirement plan, with interest at the new text begin applicable monthly new text end rate deleted text begin of 0.71 percent per
monthdeleted text end , compounded annually, from the first day of the month following the month in
which coverage should have commenced in the correct defined contribution plan until
the end of the month in which the transfer occurs.new text begin The applicable rate is 0.71 percent per
month before July 1, 2012, and the period after June 30, 2021, and is 0.667 percent per
month for the period from July 1, 2012, through June 30, 2021.
new text end

Sec. 6.

Minnesota Statutes 2010, section 352.23, is amended to read:

352.23 TERMINATION OF RIGHTS.

When any employee accepts a refund as provided in section 352.22, all existing
service credits and all rights and benefits to which the employee was entitled before
accepting the refund terminate. They must not again be restored until the former employee
acquires at least six months of allowable service credit after taking the last refund. In that
event, the employee may repay all refunds previously taken from the retirement fund.
Repayment of refunds entitles the employee only to credit for service covered by (1)
salary deductions; (2) payments made in lieu of salary deductions; (3) payments made
to obtain credit for service as permitted by laws in effect when payment was made; and
(4) allowable service once credited while receiving temporary workers' compensation as
provided in section 352.01, subdivision 11, clause (5). Payments under this section for
repayment of refunds are to be paid with interest at deleted text begin andeleted text end new text begin the applicable new text end annual rate deleted text begin of 8.5
percentdeleted text end compounded annually. new text begin The applicable rate is 0.71 percent before July 1, 2012,
and the period after June 30, 2021, and is 0.667 percent for the period from July 1, 2012,
through June 30, 2021. new text end They may be paid in a lump sum or by payroll deduction in the
manner provided in section 352.04. Payment may be made in a lump sum up to six months
after termination from service.

Sec. 7.

Minnesota Statutes 2010, section 352.27, is amended to read:

352.27 CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED
SERVICE.

(a) An employee who is absent from employment by reason of service in the
uniformed services, as defined in United States Code, title 38, section 4303(13), and who
returns to state service upon discharge from service in the uniformed service within the
time frames required in United States Code, title 38, section 4312(e), may obtain service
credit for the period of the uniformed service as further specified in this section, provided
that the employee did not separate from uniformed service with a dishonorable or bad
conduct discharge or under other than honorable conditions.

(b) The employee may obtain credit by paying into the fund an equivalent employee
contribution based upon the contribution rate or rates in effect at the time that the
uniformed service was performed multiplied by the full and fractional years being
purchased and applied to the annual salary rate. The annual salary rate is the average
annual salary during the purchase period that the employee would have received if the
employee had continued to be employed in covered employment rather than to provide
uniformed service, or, if the determination of that rate is not reasonably certain, the annual
salary rate is the employee's average salary rate during the 12-month period of covered
employment rendered immediately preceding the period of the uniformed service.

(c) The equivalent employer contribution and, if applicable, the equivalent additional
employer contribution provided in this chapter must be paid by the department employing
the employee from funds available to the department at the time and in the manner
provided in this chapter, using the employer and additional employer contribution rate or
rates in effect at the time that the uniformed service was performed, applied to the same
annual salary rate or rates used to compute the equivalent employee contribution.

(d) If the employee equivalent contributions provided in this section are not paid in
full, the employee's allowable service credit must be prorated by multiplying the full and
fractional number of years of uniformed service eligible for purchase by the ratio obtained
by dividing the total employee contribution received by the total employee contribution
otherwise required under this section.

(e) To receive service credit under this section, the contributions specified in this
section must be transmitted to the Minnesota State Retirement System during the period
which begins with the date on which the individual returns to state service and which has a
duration of three times the length of the uniformed service period, but not to exceed five
years. If the determined payment period is less than one year, the contributions required
under this section to receive service credit may be made within one year of the discharge
date.

(f) The amount of service credit obtainable under this section may not exceed five
years unless a longer purchase period is required under United States Code, title 38,
section 4312.

(g) The employing unit shall pay interest on all equivalent employee and employer
contribution amounts payable under this section. Interest must be computed at deleted text begin adeleted text end new text begin the
applicable new text end rate deleted text begin of 8.5 percentdeleted text end compounded annually from the end of each fiscal year of the
leave or the break in service to the end of the month in which the payment is received.new text begin The
applicable rate is 8.5 percent for the period before July 1, 2012, and the period after June
30, 2021, and is 8.0 percent for the period from July 1, 2012, through June 30, 2021.
new text end

Sec. 8.

Minnesota Statutes 2010, section 352.271, is amended to read:

352.271 METROPOLITAN TRANSIT COMMISSION-TRANSIT
OPERATING DIVISION EMPLOYEES; CREDIT FOR MILITARY SERVICE.

Any employee of the Metropolitan Transit Commission Operating Division who
was on a leave of absence to enter military service on July 1, 1978, who has not taken a
refund of employee contributions as authorized by article 12 of the Metropolitan Transit
Commission-Transit Operating Division employees retirement fund document or section
352.22, subdivision 2a, and who returns to service as an employee of the Metropolitan
Transit Commission-Transit Operating Division upon discharge from military service
as provided in section 192.262 is entitled to allowable service credit for the period of
military service. If an employee has taken a refund of employee contributions, and would
otherwise be entitled to allowable service credit under this section, the employee is
entitled to allowable service credit for the period of military service upon repayment to the
executive director of the system of the amount refunded plus interest at deleted text begin andeleted text end new text begin the applicable
new text end annual rate deleted text begin of 8.5 percentdeleted text end compounded annually from the date on which the refund was
taken to the date of repayment. No employee is entitled to allowable service credit for any
voluntary extensions of military service at the instance of the employee beyond any initial
period of enlistment, induction, or call to active duty.new text begin The applicable rate is 8.5 percent
for the period before July 1, 2012, and the period after June 30, 2021, and is 8.0 percent
for the period from July 1, 2012, through June 30, 2021.
new text end

Sec. 9.

Minnesota Statutes 2010, section 352.955, subdivision 2, is amended to read:

Subd. 2.

Payment of additional equivalent contributions; pre-July 1, 2007,
coverage transfers.

(a) An eligible employee who was transferred to plan coverage
before July 1, 2007, and who elects to transfer past service credit under this section must
pay an additional member contribution for that prior service period. The additional
member contribution is the difference between the member contribution rate or rates for
the general state employees retirement plan of the Minnesota State Retirement System
for the period of employment covered by the service credit to be transferred and the
member contribution rate or rates for the correctional state employees retirement plan for
the period of employment covered by the service credit to be transferred, plus annual
compound interest at the rate of 8.5 percent.

(b) The additional equivalent member contribution under this subdivision must be
paid in a lump sum. Payment must accompany the election to transfer the prior service
credit. No transfer election or additional equivalent member contribution payment may be
made by a person or accepted by the executive director after January 1, 2008, or the date
on which the eligible employee terminates state employment, whichever is earlier.

(c) If an eligible employee elects to transfer past service credit under this section
and pays the additional equivalent member contribution amount under paragraphs (a) and
(b), the applicable department shall pay an additional equivalent employer contribution
amount. The additional employer contribution is the difference between the employer
contribution rate or rates for the general state employees retirement plan for the period of
employment covered by the service credit to be transferred and the employer contribution
rate or rates for the correctional state employees retirement plan for the period of
employment covered by the service credit to be transferred, plus annual compound interest
at the new text begin applicable new text end rate deleted text begin of 8.5 percentdeleted text end .new text begin The applicable rate is 8.5 percent for the period
before July 1, 2012, and the period after June 30, 2021, and is 8.0 percent for the period
from July 1, 2012, through June 30, 2021.
new text end

(d) The additional equivalent employer contribution under this subdivision must be
paid in a lump sum and must be paid within 30 days of the date on which the executive
director of the Minnesota State Retirement System certifies to the applicable department
that the employee paid the additional equivalent member contribution.

Sec. 10.

Minnesota Statutes 2010, section 352.955, subdivision 3, is amended to read:

Subd. 3.

Payment of additional equivalent contributions; post-June 30, 2007,
coverage transfers.

(a) An eligible employee who is transferred to plan coverage after
June 30, 2007, and who elects to transfer past service credit under this section must pay
an additional member contribution for that prior service period. The additional member
contribution is the amount computed under paragraph (b), plus the greater of the amount
computed under paragraph (c), or 40 percent of the unfunded actuarial accrued liability
attributable to the past service credit transfer.

(b) The executive director shall compute, for the most recent 12 months of service
credit eligible for transfer, or for the entire period eligible for transfer if less than 12
months, the difference between the employee contribution rate or rates for the general state
employees retirement plan and the employee contribution rate or rates for the correctional
state employees retirement plan applied to the eligible employee's salary during that
transfer period, plus compound interest at a monthly rate of 0.71 percent.

(c) The executive director shall compute, for any service credit being transferred
on behalf of the eligible employee and not included under paragraph (b), the difference
between the employee contribution rate or rates for the general state employees retirement
plan and the employee contribution rate or rates for the correctional state employees
retirement plan applied to the eligible employee's salary during that transfer period, plus
compound interest at deleted text begin adeleted text end new text begin the applicable new text end monthly rate deleted text begin of 0.71 percentdeleted text end .new text begin The applicable rate is
0.71 percent before July 1, 2012, and the period after June 30, 2021, and is 0.667 percent
for the period from July 1, 2012, through June 30, 2021.
new text end

(d) The executive director shall compute an amount using the process specified in
paragraph (b), but based on differences in employer contribution rates between the general
state employees retirement plan and the correctional state employees retirement plan
rather than employee contribution rates.

(e) The executive director shall compute an amount using the process specified in
paragraph (c), but based on differences in employer contribution rates between the general
state employees retirement plan and the correctional state employees retirement plan
rather than employee contribution rates.

(f) The additional equivalent member contribution under this subdivision must be
paid in a lump sum. Payment must accompany the election to transfer the prior service
credit. No transfer election or additional equivalent member contribution payment may be
made by a person or accepted by the executive director after the one year anniversary date
of the effective date of the retirement coverage transfer, or the date on which the eligible
employee terminates state employment, whichever is earlier.

(g) If an eligible employee elects to transfer past service credit under this section
and pays the additional equivalent member contribution amount under paragraph (a), the
applicable department shall pay an additional equivalent employer contribution amount.
The additional employer contribution is the amount computed under paragraph (d), plus
the greater of the amount computed under paragraph (e), or 60 percent of the unfunded
actuarial accrued liability attributable to the past service credit transfer.

(h) The unfunded actuarial accrued liability attributable to the past service credit
transfer is the present value of the benefit obtained by the transfer of the service credit
to the correctional state employees retirement plan reduced by the amount of the asset
transfer under subdivision 4, by the amount of the member contribution equivalent
payment computed under paragraph (b), and by the amount of the employer contribution
equivalent payment computed under paragraph (d).

(i) The additional equivalent employer contribution under this subdivision must be
paid in a lump sum and must be paid within 30 days of the date on which the executive
director of the Minnesota State Retirement System certifies to the applicable department
that the employee paid the additional equivalent member contribution.

Sec. 11.

Minnesota Statutes 2010, section 352B.013, subdivision 2, is amended to read:

Subd. 2.

Purchase procedure.

(a) An employee covered by the plan specified in
this chapter may purchase credit for allowable service in the plan for a period specified
in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c),
whichever applies. The employing unit, at its option, may pay the employer portion of the
amount specified in paragraph (b) on behalf of its employees.

(b) If payment is received by the executive director within one year from the date
the employee returned to work following the authorized leave, the payment amount is
equal to the employee and employer contribution rates specified in section 352B.02 at the
end of the leave period multiplied by the employee's hourly rate of salary on the date of
return from the leave of absence and by the days and months of the leave of absence for
which the employee is eligible for allowable service credit. The payment must include
compound interest at deleted text begin adeleted text end new text begin the applicable new text end monthly rate deleted text begin of 0.71 percentdeleted text end from the last day
of the leave period until the last day of the month in which payment is received. new text begin The
applicable rate is 0.71 percent before July 1, 2012, and the period after June 30, 2021,
and is 0.667 percent for the period from July 1, 2012, through June 30, 2021. new text end If payment
is received by the executive director after one year from the date the employee returned
to work following the authorized leave, the payment amount is the amount determined
under section 356.551. Payment under this paragraph must be made before the date of
termination from public employment covered under this chapter.

(c) If the employee terminates employment covered by this chapter during the leave
or following the leave rather than returning to covered employment, payment must
be received by the executive director within 30 days after the termination date. The
payment amount is equal to the employee and employer contribution rates specified in
section 352B.02 on the day prior to the termination date, multiplied by the employee's
hourly rate of salary on that date and by the days and months of the leave of absence
prior to termination.

Sec. 12.

Minnesota Statutes 2010, section 352B.085, is amended to read:

352B.085 SERVICE CREDIT FOR CERTAIN DISABILITY LEAVES OF
ABSENCE.

A member on leave of absence receiving temporary workers' compensation payments
and a reduced salary or no salary from the employer who is entitled to allowable service
credit for the period of absence under section 352B.011, subdivision 3, paragraph (b), may
make payment to the fund for the difference between salary received, if any, and the salary
that the member would normally receive if the member was not on leave of absence
during the period. The member shall pay an amount equal to the member and employer
contribution rate under section 352B.02, subdivisions 1b and 1c, on the differential
salary amount for the period of the leave of absence. The employing department, at its
option, may pay the employer amount on behalf of the member. Payment made under
this subdivision must include interest at the new text begin applicable new text end rate deleted text begin of 8.5 percent per yeardeleted text end , and
must be completed within one year of the member's return from the leave of absence.new text begin The
applicable rate is 8.5 percent for the period before July 1, 2012, and the period after June
30, 2021, and is 8.0 percent for the period from July 1, 2012, through June 30, 2021.
new text end

Sec. 13.

Minnesota Statutes 2010, section 352B.086, is amended to read:

352B.086 SERVICE CREDIT FOR UNIFORMED SERVICE.

(a) A member who is absent from employment by reason of service in the uniformed
services, as defined in United States Code, title 38, section 4303(13), and who returns to
state employment in a position covered by the plan upon discharge from service in the
uniformed services within the time frame required in United States Code, title 38, section
4312(e), may obtain service credit for the period of the uniformed service, provided that
the member did not separate from uniformed service with a dishonorable or bad conduct
discharge or under other than honorable conditions.

(b) The member may obtain credit by paying into the fund an equivalent member
contribution based on the member contribution rate or rates in effect at the time that
the uniformed service was performed multiplied by the full and fractional years being
purchased and applied to the annual salary rate. The annual salary rate is the average
annual salary during the purchase period that the member would have received if the
member had continued to provide employment services to the state rather than to provide
uniformed service, or if the determination of that rate is not reasonably certain, the annual
salary rate is the member's average salary rate during the 12-month period of covered
employment rendered immediately preceding the purchase period.

(c) The equivalent employer contribution and, if applicable, the equivalent employer
additional contribution, must be paid by the employing unit, using the employer and
employer additional contribution rate or rates in effect at the time that the uniformed
service was performed, applied to the same annual salary rate or rates used to compute the
equivalent member contribution.

(d) If the member equivalent contributions provided for in this section are not paid
in full, the member's allowable service credit must be prorated by multiplying the full and
fractional number of years of uniformed service eligible for purchase by the ratio obtained
by dividing the total member contributions received by the total member contributions
otherwise required under this section.

(e) To receive allowable service credit under this section, the contributions specified
in this section must be transmitted to the fund during the period which begins with the
date on which the individual returns to state employment covered by the plan and which
has a duration of three times the length of the uniformed service period, but not to exceed
five years. If the determined payment period is calculated to be less than one year, the
contributions required under this section to receive service credit must be transmitted to
the fund within one year from the discharge date.

(f) The amount of allowable service credit obtainable under this section may not
exceed five years, unless a longer purchase period is required under United States Code,
title 38, section 4312.

(g) The employing unit shall pay interest on all equivalent member and employer
contribution amounts payable under this section. Interest must be computed at deleted text begin adeleted text end new text begin the
applicable new text end rate deleted text begin of 8.5 percentdeleted text end compounded annually from the end of each fiscal year of
the leave or break in service to the end of the month in which payment is received.new text begin The
applicable rate is 8.5 percent for the period before July 1, 2012, and the period after June
30, 2021, and is 8.0 percent for the period from July 1, 2012, through June 30, 2021.
new text end

Sec. 14.

Minnesota Statutes 2010, section 352B.11, subdivision 4, is amended to read:

Subd. 4.

Reentry into state service.

When a former member, who has become
separated from state service that entitled the member to membership and has received a
refund of retirement payments, reenters the state service in a position that entitles the
member to membership, that member shall receive credit for the period of prior allowable
state service if the member repays into the fund the amount of the refund, plus interest on
it at deleted text begin andeleted text end new text begin the applicable new text end annual rate deleted text begin of 8.5 percentdeleted text end compounded annually, at any time before
subsequent retirement. new text begin The applicable rate is 8.5 percent for the period before July 1,
2012, and the period after June 30, 2021, and is 8.0 percent for the period from July 1,
2012, through June 30, 2021. new text end Repayment may be made in installments or in a lump sum.

Sec. 15.

Minnesota Statutes 2010, section 352D.05, subdivision 4, is amended to read:

Subd. 4.

Repayment of refund.

(a) A participant in the unclassified program may
repay regular refunds taken under section 352.22, as provided in section 352.23.

(b) A participant in the unclassified program or an employee covered by the general
employees retirement plan who has withdrawn the value of the total shares may repay
the refund taken and thereupon restore the service credit, rights and benefits forfeited by
paying into the fund the amount refunded plus interest at deleted text begin andeleted text end new text begin the applicable new text end annual rate
deleted text begin of 8.5 percentdeleted text end compounded annually from the date that the refund was taken until the date
that the refund is repaid. new text begin The applicable rate is 8.5 percent for the period before July 1,
2012, and the period after June 30, 2021, and is 8.0 percent for the period from July 1,
2012, through June 30, 2021. new text end If the participant had withdrawn only the employee shares
as permitted under prior laws, repayment must be pro rata.

Sec. 16.

Minnesota Statutes 2010, section 352D.11, subdivision 2, is amended to read:

Subd. 2.

Payments by employee.

An employee entitled to purchase service credit
may make the purchase by paying to the state retirement system an amount equal to
the current employee contribution rate in effect for the state retirement system applied
to the current or final salary rate multiplied by the months and days of prior temporary,
intermittent, or contract legislative service. Payment shall be made in one lump sum
unless the executive director of the state retirement system agrees to accept payment in
installments over a period of not more than three years from the date of the agreement.
Installment payments shall be charged interest at deleted text begin andeleted text end new text begin the applicable new text end annual rate deleted text begin of 8.5
percentdeleted text end compounded annually.new text begin The applicable rate is 8.5 percent for the period before July
1, 2012, and the period after June 30, 2021, and is 8.0 percent for the period from July
1, 2012, through June 30, 2021.
new text end

Sec. 17.

Minnesota Statutes 2010, section 352D.12, is amended to read:

352D.12 TRANSFER OF PRIOR SERVICE CONTRIBUTIONS.

(a) An employee who is a participant in the unclassified program and who has prior
service credit in a covered plan under chapter 352, 353, 354, 354A, or 422A may, within
the time limits specified in this section, elect to transfer to the unclassified program prior
service contributions to one or more of those plans.

(b) For participants with prior service credit in a plan governed by chapter 352, 353,
354, 354A, or 422A, "prior service contributions" means the accumulated employee and
equal employer contributions with interest at deleted text begin andeleted text end new text begin the applicable new text end annual rate deleted text begin of 8.5 percentdeleted text end
compounded annually, based on fiscal year balances.

(c) If a participant has taken a refund from a retirement plan listed in this section,
the participant may repay the refund to that plan, notwithstanding any restrictions on
repayment to that plan, plus 8.5 percent interest compounded annually and have the
accumulated employee and equal employer contributions transferred to the unclassified
program with interest at deleted text begin andeleted text end new text begin the applicable new text end annual rate deleted text begin of 8.5 percentdeleted text end compounded annually
based on fiscal year balances. If a person repays a refund and subsequently elects to have
the money transferred to the unclassified program, the repayment amount, including
interest, is added to the fiscal year balance in the year which the repayment was made.

(d) A participant electing to transfer prior service contributions credited to a
retirement plan governed by chapter 352, 353, 354, 354A, or 422A as provided under this
section must complete a written application for the transfer and repay any refund within
one year of the commencement of the employee's participation in the unclassified program.

new text begin (e) The applicable rate is 8.5 percent for the period before July 1, 2012, and the
period after June 30, 2021, and is 8.0 percent for the period from July 1, 2012, through
June 30, 2021.
new text end

Sec. 18.

Minnesota Statutes 2011 Supplement, section 353.01, subdivision 16, is
amended to read:

Subd. 16.

Allowable service; limits and computation.

(a) "Allowable service"
means:

(1) service during years of actual membership in the course of which employee
deductions were withheld from salary and contributions were made at the applicable rates
under section 353.27, 353.65, or 353E.03;

(2) periods of service covered by payments in lieu of salary deductions under
sections 353.27, subdivision 12, and 353.35;

(3) service in years during which the public employee was not a member but for
which the member later elected, while a member, to obtain credit by making payments to
the fund as permitted by any law then in effect;

(4) a period of authorized leave of absence with pay from which deductions for
employee contributions are made, deposited, and credited to the fund;

(5) a period of authorized personal, parental, or medical leave of absence without
pay, including a leave of absence covered under the federal Family Medical Leave Act,
that does not exceed one year, and for which a member obtained service credit for each
month in the leave period by payment under section 353.0161 to the fund made in place of
salary deductions. An employee must return to public service and render a minimum of
three months of allowable service in order to be eligible to make payment under section
353.0161 for a subsequent authorized leave of absence without pay. Upon payment, the
employee must be granted allowable service credit for the purchased period;

(6) a periodic, repetitive leave that is offered to all employees of a governmental
subdivision. The leave program may not exceed 208 hours per annual normal work cycle
as certified to the association by the employer. A participating member obtains service
credit by making employee contributions in an amount or amounts based on the member's
average salary, excluding overtime pay, that would have been paid if the leave had not
been taken. The employer shall pay the employer and additional employer contributions
on behalf of the participating member. The employee and the employer are responsible
to pay interest on their respective shares at the new text begin applicable new text end rate deleted text begin of 8.5 percent a yeardeleted text end ,
compounded annually, from the end of the normal cycle until full payment is made. An
employer shall also make the employer and additional employer contributions, plus deleted text begin 8.5
percentdeleted text end new text begin the applicable rate of new text end interest, compounded annually, on behalf of an employee
who makes employee contributions but terminates public service. new text begin The applicable rate is
8.5 percent for the period before July 1, 2012, and the period after June 30, 2021, and
is 8.0 percent for the period from July 1, 2012, through June 30, 2021. new text end The employee
contributions must be made within one year after the end of the annual normal working
cycle or within 30 days after termination of public service, whichever is sooner. The
executive director shall prescribe the manner and forms to be used by a governmental
subdivision in administering a periodic, repetitive leave. Upon payment, the member must
be granted allowable service credit for the purchased period;

(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
months allowable service per authorized temporary or seasonal layoff in one calendar year.
An employee who has received the maximum service credit allowed for an authorized
temporary or seasonal layoff must return to public service and must obtain a minimum of
three months of allowable service subsequent to the layoff in order to receive allowable
service for a subsequent authorized temporary or seasonal layoff;

(8) a period during which a member is absent from employment by a governmental
subdivision by reason of service in the uniformed services, as defined in United States
Code, title 38, section 4303(13), if the member returns to public service with the same
governmental subdivision upon discharge from service in the uniformed service within the
time frames required under United States Code, title 38, section 4312(e), provided that
the member did not separate from uniformed service with a dishonorable or bad conduct
discharge or under other than honorable conditions. The service must be credited if the
member pays into the fund equivalent employee contributions based upon the contribution
rate or rates in effect at the time that the uniformed service was performed multiplied by
the full and fractional years being purchased and applied to the annual salary rate. The
annual salary rate is the average annual salary, excluding overtime pay, during the purchase
period that the member would have received if the member had continued to be employed
in covered employment rather than to provide uniformed service, or, if the determination
of that rate is not reasonably certain, the annual salary rate is the member's average salary
rate, excluding overtime pay, during the 12-month period of covered employment rendered
immediately preceding the period of the uniformed service. Payment of the member
equivalent contributions must be made during a period that begins with the date on which
the individual returns to public employment and that is three times the length of the
military leave period, or within five years of the date of discharge from the military service,
whichever is less. If the determined payment period is less than one year, the contributions
required under this clause to receive service credit may be made within one year of the
discharge date. Payment may not be accepted following 30 days after termination of
public service under subdivision 11a. If the member equivalent contributions provided for
in this clause are not paid in full, the member's allowable service credit must be prorated
by multiplying the full and fractional number of years of uniformed service eligible for
purchase by the ratio obtained by dividing the total member contributions received by the
total member contributions otherwise required under this clause. The equivalent employer
contribution, and, if applicable, the equivalent additional employer contribution must be
paid by the governmental subdivision employing the member if the member makes the
equivalent employee contributions. The employer payments must be made from funds
available to the employing unit, using the employer and additional employer contribution
rate or rates in effect at the time that the uniformed service was performed, applied to the
same annual salary rate or rates used to compute the equivalent member contribution. The
governmental subdivision involved may appropriate money for those payments. The
amount of service credit obtainable under this section may not exceed five years unless a
longer purchase period is required under United States Code, title 38, section 4312. The
employing unit shall pay interest on all equivalent member and employer contribution
amounts payable under this clause. Interest must be computed at deleted text begin adeleted text end new text begin the applicable new text end rate deleted text begin of
8.5 percentdeleted text end compounded annually from the end of each fiscal year of the leave or the break
in service to the end of the month in which the payment is received. new text begin The applicable rate is
8.5 percent for the period before July 1, 2012, and the period after June 30, 2021, and is
8.0 percent for the period from July 1, 2012, through June 30, 2021. new text end Upon payment, the
employee must be granted allowable service credit for the purchased period; or

(9) a period specified under subdivision 40.

(b) For calculating benefits under sections 353.30, 353.31, 353.32, and 353.33 for
state officers and employees displaced by the Community Corrections Act, chapter 401,
and transferred into county service under section 401.04, "allowable service" means the
combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
section 352.01, subdivision 11.

(c) For a public employee who has prior service covered by a local police or
firefighters relief association that has consolidated with the Public Employees Retirement
Association under chapter 353A or to which section 353.665 applies, and who has
elected the type of benefit coverage provided by the public employees police and fire
fund either under section 353A.08 following the consolidation or under section 353.665,
subdivision 4, "allowable service" is a period of service credited by the local police or
firefighters relief association as of the effective date of the consolidation based on law
and on bylaw provisions governing the relief association on the date of the initiation
of the consolidation procedure.

(d) No member may receive more than 12 months of allowable service credit in a
year either for vesting purposes or for benefit calculation purposes. For an active member
who was an active member of the former Minneapolis Firefighters Relief Association on
the day prior to the effective date of consolidation under Laws 2011, First Special Session
chapter 8, article 6, section 19, "allowable service" is the period of service credited by
the Minneapolis Firefighters Relief Association as reflected in the transferred records of
the association up to the effective date of consolidation under Laws 2011, First Special
Session chapter 8, article 6, section 19, and the period of service credited under paragraph
(a), clause (1), after the effective date of consolidation under Laws 2011, First Special
Session chapter 8, article 6, section 19. For an active member who was an active member
of the former Minneapolis Police Relief Association on the day prior to the effective date
of consolidation under Laws 2011, First Special Session chapter 8, article 7, section 19,
"allowable service" is the period of service credited by the Minneapolis Police Relief
Association as reflected in the transferred records of the association up to the effective date
of consolidation under Laws 2011, First Special Session chapter 8, article 7, section 19,
and the period of service credited under paragraph (a), clause (1), after the effective date
of consolidation under Laws 2011, First Special Session chapter 8, article 7, section 19.

(e) MS 2002 [Expired]

Sec. 19.

Minnesota Statutes 2010, section 353.0161, subdivision 2, is amended to read:

Subd. 2.

Purchase procedure.

(a) An employee covered by a plan specified in
subdivision 1 may purchase credit for allowable service in that plan for a period specified
in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c),
whichever applies. The employing unit, at its option, may pay the employer portion of the
amount specified in paragraph (b) on behalf of its employees.

(b) If payment is received by the executive director within one year from the date the
member returned to work following the authorized leave, or within 30 days after the date
of termination of public service if the member did not return to work, the payment amount
is equal to the employee and employer contribution rates specified in law for the applicable
plan at the end of the leave period, or at termination of public service, whichever is earlier,
multiplied by the employee's average monthly salary, excluding overtime, upon which
deductions were paid during the six months, or portion thereof, before the commencement
of the leave of absence and by the number of months of the leave of absence for which
the employee wants allowable service credit. Payments made under this paragraph must
include compound interest at deleted text begin adeleted text end new text begin the applicable new text end monthly rate deleted text begin of 0.71 percentdeleted text end from the last
day of the leave period until the last day of the month in which payment is received.new text begin The
applicable rate is 0.71 percent before July 1, 2012, and the period after June 30, 2021, and
is 0.667 percent for the period from July 1, 2012, through June 30, 2021.
new text end

(c) If payment is received by the executive director after one year, the payment
amount is the amount determined under section 356.551. Payment under this paragraph
must be made before the date the person terminates public service under section 353.01,
subdivision 11a.

Sec. 20.

Minnesota Statutes 2010, section 353.0162, is amended to read:

353.0162 REDUCED SALARY PERIODS SALARY CREDIT PURCHASE.

(a) A member may purchase additional salary credit for a period specified in this
section.

(b) The applicable period is a period during which the member is receiving a reduced
salary from the employer while the member is:

(1) receiving temporary workers' compensation payments related to the member's
service to the public employer;

(2) on an authorized medical leave of absence; or

(3) on an authorized partial paid leave of absence as a result of a budgetary or salary
savings program offered or mandated by a governmental subdivision.

(c) The differential salary amount is the difference between the average monthly
salary received by the member during the period of reduced salary under this section and
the average monthly salary of the member, excluding overtime, on which contributions
to the applicable plan were made during the period of the last six months of covered
employment occurring immediately before the period of reduced salary, applied to the
member's normal employment period, measured in hours or otherwise, as applicable.

(d) To receive eligible salary credit, the member shall pay an amount equal to:

(1) the applicable employee contribution rate under section 353.27, subdivision
2; 353.65, subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the
differential salary amount;

(2) plus an employer equivalent payment equal to the applicable employer
contribution rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03,
subdivision 2, as applicable, multiplied by the differential salary amount;

(3) plus, if applicable, an equivalent employer additional amount equal to the
additional employer contribution rate in section 353.27, subdivision 3a, multiplied by the
differential salary amount.

(e) The employer, by appropriate action of its governing body and documented in its
official records, may pay the employer equivalent contributions and, as applicable, the
equivalent employer additional contributions on behalf of the member.

(f) Payment under this section must include interest on the contribution amount or
amounts, whichever applies, at deleted text begin an 8.5 percentdeleted text end new text begin the applicable new text end annual rate, prorated for
applicable months from the date on which the period of reduced salary specified under
this section terminates to the date on which the payment or payments are received by the
executive director. new text begin The applicable rate is 8.5 percent for the period before July 1, 2012,
and the period after June 30, 2021, and is 8.0 percent for the period from July 1, 2012,
through June 30, 2021. new text end Payment under this section must be completed within the earlier
of 30 days from termination of public service by the employee under section 353.01,
subdivision 11a, or one year after the termination of the period specified in paragraph
(b), as further restricted under this section.

(g) The period for which additional allowable salary credit may be purchased is
limited to the period during which the person receives temporary workers' compensation
payments or for those business years in which the governmental subdivision offers or
mandates a budget or salary savings program, as certified to the executive director by a
resolution of the governing body of the governmental subdivision. For an authorized
medical leave of absence, the period for which allowable salary credit may be purchased
may not exceed 12 consecutive months of authorized medical leave.

(h) To purchase salary credit for a subsequent period of temporary workers'
compensation benefits or subsequent authorized medical leave of absence, the member
must return to public service and render a minimum of three months of allowable service.

Sec. 21.

Minnesota Statutes 2010, section 353.27, subdivision 7a, is amended to read:

Subd. 7a.

Deductions or contributions transmitted by error.

(a) If employee
deductions and employer contributions under this section, section 353.50, 353.65, or
353E.03 were erroneously transmitted to the association, but should have been transmitted
to a plan covered by chapter 352D, 353D, 354B, or 354D, the executive director shall
transfer the erroneous employee deductions and employer contributions to the appropriate
retirement fund or individual account, as applicable. The time limitations specified in
subdivisions 7 and 12 do not apply. The transfer to the applicable defined contribution
plan account must include interest at the new text begin applicable new text end rate deleted text begin of 0.71 percentdeleted text end per month,
compounded annually, from the first day of the month following the month in which
coverage should have commenced in the defined contribution plan until the end of the
month in which the transfer occurs.new text begin The applicable rate is 0.71 percent before July 1,
2012, and the period after June 30, 2021, and is 0.667 percent for the period from July
1, 2012, through June 30, 2021.
new text end

(b) A potential transfer under paragraph (a) that is reasonably determined to cause
the plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue
Code, as amended, must not be made by the executive director of the association. Within
30 days after being notified by the Public Employees Retirement Association of an
unmade potential transfer under this paragraph, the employer of the affected person
must transmit an amount representing the applicable salary deductions and employer
contributions, without interest, to the retirement fund of the appropriate Minnesota public
pension plan, or to the applicable individual account if the proper coverage is by a defined
contribution plan. The association must provide the employing unit a credit for the amount
of the erroneous salary deductions and employer contributions against future contributions
from the employer. If the employing unit receives a credit under this paragraph, the
employing unit is responsible for refunding to the applicable employee any amount that
had been erroneously deducted from the person's salary.

(c) If erroneous employee deductions and employer contributions reflect a plan
coverage error involving any Public Employees Retirement Association plan specified in
section 356.99 and any other plan specified in that section, section 356.99 applies.

Sec. 22.

Minnesota Statutes 2010, section 353.27, subdivision 12, is amended to read:

Subd. 12.

Omitted salary deductions; obligations.

(a) In the case of omission
of required deductions for the general employees retirement plan, the public employees
police and fire retirement plan, or the local government correctional employees retirement
plan from the salary of an employee, the department head or designee shall immediately,
upon discovery, report the employee for membership and deduct the employee deductions
under subdivision 4 during the current pay period or during the pay period immediately
following the discovery of the omission. Payment for the omitted obligations may only be
made in accordance with reporting procedures and methods established by the executive
director.

(b) When the entire omission period of an employee does not exceed 60 days, the
governmental subdivision may report and submit payment of the omitted employee
deductions and the omitted employer contributions through the reporting processes under
subdivision 4.

(c) When the omission period of an employee exceeds 60 days, the governmental
subdivision shall furnish to the association sufficient data and documentation upon which
the obligation for omitted employee and employer contributions can be calculated.
The omitted employee deductions must be deducted from the employee's subsequent
salary payment or payments and remitted to the association for deposit in the applicable
retirement fund. The employee shall pay omitted employee deductions due for the 60
days prior to the end of the last pay period in the omission period during which salary
was earned. The employer shall pay any remaining omitted employee deductions and any
omitted employer contributions, plus cumulative interest at deleted text begin andeleted text end new text begin the applicable new text end annual
rate deleted text begin of 8.5 percentdeleted text end compounded annually, from the date or dates each omitted employee
contribution was first payable.

(d) An employer shall not hold an employee liable for omitted employee deductions
beyond the pay period dates under paragraph (c), nor attempt to recover from the employee
those employee deductions paid by the employer on behalf of the employee. Omitted
deductions due under paragraph (c) which are not paid by the employee constitute a
liability of the employer that failed to deduct the omitted deductions from the employee's
salary. The employer shall make payment with interest at deleted text begin andeleted text end new text begin the applicable new text end annual rate
deleted text begin of 8.5 percentdeleted text end compounded annually. Omitted employee deductions are no longer due
if an employee terminates public service before making payment of omitted employee
deductions to the association, but the employer remains liable to pay omitted employer
contributions plus interest at an annual rate of 8.5 percent compounded annually from the
date the contributions were first payable.

(e) The association may not commence action for the recovery of omitted employee
deductions and employer contributions after the expiration of three calendar years after
the calendar year in which the contributions and deductions were omitted. Except as
provided under paragraph (b), no payment may be made or accepted unless the association
has already commenced action for recovery of omitted deductions. An action for recovery
commences on the date of the mailing of any written correspondence from the association
requesting information from the governmental subdivision upon which to determine
whether or not omitted deductions occurred.

new text begin (f) The applicable rate is 8.5 percent for the period before July 1, 2012, and the
period after June 30, 2021, and is 8.0 percent for the period from July 1, 2012, through
June 30, 2021.
new text end

Sec. 23.

Minnesota Statutes 2010, section 353.27, subdivision 12a, is amended to read:

Subd. 12a.

Terminated employees: omitted deductions.

A terminated employee
who was a member of the general employees retirement plan of the Public Employees
Retirement Association, the public employees police and fire retirement plan, or the local
government correctional employees retirement plan and who has a period of employment
in which previously omitted employer contributions were made under subdivision 12
but for whom no, or only partial, omitted employee contributions have been made, or a
member who had prior coverage in the association for which previously omitted employer
contributions were made under subdivision 12 but who terminated service before required
omitted employee deductions could be withheld from salary, may pay the omitted
employee deductions for the period on which omitted employer contributions were
previously paid plus interest at deleted text begin andeleted text end new text begin the applicable new text end annual rate deleted text begin of 8.5 percentdeleted text end compounded
annually.new text begin The applicable rate is 8.5 percent for the period before July 1, 2012, and the
period after June 30, 2021, and is 8.0 percent for the period from July 1, 2012, through
June 30, 2021.new text end A terminated employee may pay the omitted employee deductions plus
interest within six months of an initial notification from the association of eligibility
to pay those omitted deductions. If a terminated employee is reemployed in a position
covered under a public pension fund under section 356.30, subdivision 3, and elects to
pay omitted employee deductions, payment must be made no later than six months after a
subsequent termination of public service.

Sec. 24.

Minnesota Statutes 2010, section 353.28, subdivision 5, is amended to read:

Subd. 5.

Interest chargeable on amounts due.

Any amount due under this section
or section 353.27, subdivision 4, is payable with interest at deleted text begin andeleted text end new text begin the applicable new text end annual
compound rate deleted text begin of 8.5 percentdeleted text end from the date due until the date payment is received by the
association, with a minimum interest charge of $10.new text begin The applicable rate is 8.5 percent
for the period before July 1, 2012, and the period after June 30, 2021, and is 8.0 percent
for the period from July 1, 2012, through June 30, 2021.
new text end

Sec. 25.

Minnesota Statutes 2010, section 353.35, subdivision 1, is amended to read:

Subdivision 1.

Refund rights.

When any former member accepts a refund, all
existing service credits and all rights and benefits to which the person was entitled prior
to the acceptance of the refund must terminate. The rights and benefits of a former
member must not be restored until the person returns to active service and acquires at
least six months of allowable service credit after taking the last refund and repays the
refund or refunds taken and interest received under section 353.34, subdivisions 1 and 2,
plus interest at deleted text begin andeleted text end new text begin the applicable new text end annual rate deleted text begin of 8.5 percentdeleted text end compounded annually. new text begin The
applicable rate is 8.5 percent for the period before July 1, 2012, and the period after June
30, 2021, and is 8.0 percent for the period from July 1, 2012, through June 30, 2021. new text end If the
person elects to restore service credit in a particular fund from which the person has taken
more than one refund, the person must repay all refunds to that fund. All refunds must be
repaid within six months of the last date of termination of public service.

Sec. 26.

Minnesota Statutes 2010, section 353.665, subdivision 8, is amended to read:

Subd. 8.

Member and employer contributions.

(a) Effective on the first day
of the first full pay period following June 30, 1999, the employee contribution rate for
merging former consolidation account active members is the rate specified in section
353.65, subdivision 2, and the regular municipal contribution rate on behalf of former
consolidation account active members is the rate specified in section 353.65, subdivision 3.

(b) The municipality associated with a merging former local consolidation account
that had a positive value amortizable base calculation under subdivision 7, paragraph (d),
after the preliminary calculation or the second calculation, whichever applies, must make
an additional municipal contribution to the public employees police and fire plan for
the period from January 1, 2000, to December 31, 2009. The amount of the additional
municipal contribution is the amount calculated by the actuary retained under section
356.214 and certified by the executive director of the Public Employees Retirement
Association by which the amortizable base amount would be amortized on a level dollar
annual end-of-the-year contribution basis, using deleted text begin an 8.5 percentdeleted text end new text begin the applicable new text end interest
ratedeleted text begin assumptiondeleted text end . new text begin The applicable rate is 8.5 percent for the period before July 1, 2012,
and the period after June 30, 2021, and is 8.0 percent for the period from July 1, 2012,
through June 30, 2021. new text end The additional municipal contribution is payable during the
month of January, is without any interest, or if made after January 31, but before the next
following December 31, is payable with interest for the period since January 1 at a rate
which is equal to the preretirement interest rate assumption specified in section 356.215,
subdivision 8, applicable to the public employees police and fire fund expressed as a
monthly rate and compounded on a monthly basis or if made after December 31 of the
year in which the additional municipal contribution is due is payable with interest at a
rate which is four percent greater than the highest interest rate assumption specified in
section 356.215, subdivision 8, expressed as a monthly rate and compounded monthly
from January 1 of the year in which the additional municipal contribution is due until the
date on which payment is made.

Sec. 27.

Minnesota Statutes 2010, section 354.42, subdivision 7, is amended to read:

Subd. 7.

Erroneous salary deductions or direct payments.

(a) Any deductions
taken from the salary of an employee for the retirement fund in excess of amounts required
must be refunded to the employee upon the discovery of the error and after the verification
of the error by the employing unit making the deduction. The corresponding excess
employer contribution and excess additional employer contribution amounts attributable
to the erroneous salary deduction must be refunded to the employing unit.

(b) If salary deductions and employer contributions were erroneously transmitted to
the retirement fund and should have been transmitted to the plan covered by chapter 352D,
353D, 354B, or 354D, the executive director must transfer these salary deductions and
employer contributions to the account of the appropriate person under the applicable plan.
The transfer to the applicable defined contribution plan account must include interest at
the new text begin applicable new text end rate deleted text begin of 0.71 percentdeleted text end per month, compounded annually, from the first day of
the month following the month in which coverage should have commenced in the defined
contribution plan until the end of the month in which the transfer occurs.new text begin The applicable
rate is 0.71 percent before July 1, 2012, and the period after June 30, 2021, and is 0.667
percent for the period from July 1, 2012, through June 30, 2021.
new text end

(c) A potential transfer under paragraph (b) that would cause the plan to fail to
be a qualified plan under section 401(a) of the Internal Revenue Code, as amended,
must not be made by the executive director. Within 30 days after being notified by the
Teachers Retirement Association of an unmade potential transfer under this paragraph,
the employer of the affected person must transmit an amount representing the applicable
salary deductions and employer contributions, without interest, to the account of the
applicable person under the appropriate plan. The retirement association must provide a
credit for the amount of the erroneous salary deductions and employer contributions
against future contributions from the employer.

(d) If a salary warrant or check from which a deduction for the retirement fund was
taken has been canceled or the amount of the warrant or if a check has been returned to
the funds of the employing unit making the payment, a refund of the amount deducted,
or any portion of it that is required to adjust the salary deductions, must be made to the
employing unit.

(e) Erroneous direct payments of member-paid contributions or erroneous salary
deductions that were not refunded during the regular payroll cycle processing must be
refunded to the member, plus interest computed using the rate and method specified in
section 354.49, subdivision 2.

(f) Any refund under this subdivision that would cause the plan to fail to be a
qualified plan under section 401(a) of the Internal Revenue Code, as amended, may not
be refunded and instead must be credited against future contributions payable by the
employer. The employer is responsible for refunding to the applicable employee any
amount that was erroneously deducted from the salary of the employee, with interest as
specified in paragraph (e).

(g) If erroneous employee deductions and employer contributions are caused by an
error in plan coverage involving the plan and any other plan specified in section 356.99,
that section applies.

Sec. 28.

Minnesota Statutes 2010, section 354.50, subdivision 2, is amended to read:

Subd. 2.

Interest charge.

If a member desires to repay the refunds, payment shall
include interest at deleted text begin andeleted text end new text begin the applicable new text end annual rate deleted text begin of 8.5 percentdeleted text end compounded annually from
date of withdrawal to the date payment is made and shall be credited to the fund.new text begin The
applicable rate is 8.5 percent for the period before July 1, 2012, and the period after June
30, 2021, and is 8.0 percent for the period from July 1, 2012, through June 30, 2021.
new text end

Sec. 29.

Minnesota Statutes 2010, section 354.51, subdivision 5, is amended to read:

Subd. 5.

Payment of shortages.

(a) Except as provided in paragraph (b), in the
event that full required member contributions are not deducted from the salary of a
teacher, payment must be made as follows:

(1) Payment of shortages in member deductions on salary earned after June 30,
1957, and before July 1, 1981, may be made any time before retirement. Payment must
include interest at deleted text begin andeleted text end new text begin the applicable new text end annual rate deleted text begin of 8.5 percentdeleted text end compounded annually from
the end of the fiscal year in which the shortage occurred to the end of the month in which
payment is made and the interest must be credited to the fund. If payment of a shortage in
deductions is not made, the formula service credit of the member must be prorated under
section 354.05, subdivision 25, clause (3).

(2) Payment of shortages in member deductions on salary earned after June 30,
1981, are the sole obligation of the employing unit and are payable by the employing unit
upon notification by the executive director of the shortage with interest at deleted text begin andeleted text end new text begin the applicable
new text end annual rate deleted text begin of 8.5 percentdeleted text end compounded annually from the end of the fiscal year in which
the shortage occurred to the end of the month in which payment is made and the interest
must be credited to the fund. Effective July 1, 1986, the employing unit shall also pay
the employer contributions as specified in section 354.42, subdivisions 3 and 5 for the
shortages. If the shortage payment is not paid by the employing unit within 60 days of
notification, the executive director shall certify the amount of the shortage payment to the
applicable county auditor, who shall spread a levy in the amount of the shortage payment
over the taxable property of the taxing district of the employing unit if the employing unit
is supported by property taxes, or to the commissioner of management and budget, who
shall deduct the amount from any state aid or appropriation amount applicable to the
employing unit if the employing unit is not supported by property taxes.

(3) Payment may not be made for shortages in member deductions on salary earned
before July 1, 1957, for shortages in member deductions on salary paid or payable under
paragraph (b), or for shortages in member deductions for persons employed by the
Minnesota State Colleges and Universities system in a faculty position or in an eligible
unclassified administrative position and whose employment was less than 25 percent
of a full academic year, exclusive of the summer session, for the applicable institution
that exceeds the most recent 36 months.

(b) For a person who is employed by the Minnesota State Colleges and Universities
system in a faculty position or in an eligible unclassified administrative position and
whose employment was less than 25 percent of a full academic year, exclusive of the
summer session, for the applicable institution, upon the person's election under section
354B.21 of retirement coverage under this chapter, the shortage in member deductions
on the salary for employment by the Minnesota State Colleges and Universities system
institution of less than 25 percent of a full academic year, exclusive of the summer session,
for the applicable institution for the most recent 36 months and the associated employer
contributions must be paid by the Minnesota State Colleges and Universities system
institution, plus annual compound interest at the new text begin applicable new text end rate deleted text begin of 8.5 percentdeleted text end from the
end of the fiscal year in which the shortage occurred to the end of the month in which the
Teachers Retirement Association coverage election is made. If the shortage payment is not
made by the institution within 60 days of notification, the executive director shall certify
the amount of the shortage payment to the commissioner of management and budget,
who shall deduct the amount from any state appropriation to the system. An individual
electing coverage under this paragraph shall repay the amount of the shortage in member
deductions, plus interest, through deduction from salary or compensation payments within
the first year of employment after the election under section 354B.21, subject to the
limitations in section 16D.16. The Minnesota State Colleges and Universities system may
use any means available to recover amounts which were not recovered through deductions
from salary or compensation payments. No payment of the shortage in member deductions
under this paragraph may be made for a period longer than the most recent 36 months.

new text begin (c) The applicable rate is 8.5 percent for the period before July 1, 2012, and the
period after June 30, 2021, and is 8.0 percent for the period from July 1, 2012, through
June 30, 2021.
new text end

Sec. 30.

Minnesota Statutes 2010, section 354.52, subdivision 4, is amended to read:

Subd. 4.

Reporting and remittance requirements.

An employer shall remit all
amounts due to the association and furnish a statement indicating the amount due and
transmitted with any other information required by the executive director. If an amount
due is not received by the association within 14 calendar days of the payroll warrant,
the amount accrues interest at deleted text begin andeleted text end new text begin the applicable new text end annual rate deleted text begin of 8.5 percentdeleted text end compounded
annually from the due date until the amount is received by the association. new text begin The applicable
rate is 8.5 percent for the period before July 1, 2012, and the period after June 30, 2021,
and is 8.0 percent for the period from July 1, 2012, through June 30, 2021. new text end All amounts
due and other employer obligations not remitted within 60 days of notification by the
association must be certified to the commissioner of management and budget who shall
deduct the amount from any state aid or appropriation amount applicable to the employing
unit.

Sec. 31.

Minnesota Statutes 2010, section 354.72, subdivision 2, is amended to read:

Subd. 2.

Purchase procedure.

(a) A teacher may purchase credit for allowable and
formula service in the plan for a period specified in subdivision 1 if the teacher makes a
payment as specified in paragraph (b), (c), or (d), whichever applies. The employing unit,
at its option, may pay the employer portion of the amount on behalf of its employees.

(b) If payment is received by the executive director by June 30 of the fiscal year of
the strike period or authorized leave included under section 354.093, 354.095, or 354.096,
payment must equal the total employee and employer contribution rates, including
amortization contribution rates if applicable, multiplied by the member's average monthly
salary rate on the date the leave or strike period commenced, or for an extended leave
under section 354.094, on the salary received during the year immediately preceding the
initial year of the leave, multiplied by the months and portions of a month of the leave or
strike period for which the teacher seeks allowable service credit.

(c) If payment is made after June 30 and before the following June 30 for a strike
period or for leaves of absence under section 354.093, 354.095, or 354.096, or for an
extended leave of absence under section 354.094, the payment must include the amount
determined in paragraph (b) plus compound interest at deleted text begin adeleted text end new text begin the applicable new text end monthly rate deleted text begin of
0.71 percentdeleted text end from June 30 until the last day of the month in which payment is received.new text begin
The applicable rate is 0.71 percent before July 1, 2012, and the period after June 30, 2021,
and is 0.667 percent for the period from July 1, 2012, through June 30, 2021.
new text end

(d) If payment is received by the executive director after the applicable last permitted
date under paragraph (c), the payment amount is the amount determined under section
356.551. Notwithstanding payment deadlines specified in section 356.551, payment under
this section may be made anytime before the effective date of retirement.

Sec. 32.

Minnesota Statutes 2010, section 354A.093, subdivision 6, is amended to read:

Subd. 6.

Interest requirements.

The employer shall pay interest on all equivalent
employee and employer contribution amounts payable under this section. Interest must
be computed at deleted text begin adeleted text end new text begin the applicable new text end rate deleted text begin of 8.5 percentdeleted text end compounded annually from the end
of each fiscal year of the leave or break in service to the end of the month in which
payment is received.new text begin The applicable rate is 8.5 percent for the period before July 1, 2012,
and the period after June 30, 2021, and is 8.0 percent for the period from July 1, 2012,
through June 30, 2021.
new text end

Sec. 33.

Minnesota Statutes 2010, section 354A.096, is amended to read:

354A.096 MEDICAL LEAVE.

Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund
Association or the new law coordinated program of the Duluth Teachers Retirement Fund
Association who is on an authorized medical leave of absence and subsequently returns
to teaching service is entitled to receive allowable service credit, not to exceed one year,
for the period of leave, upon making the prescribed payment to the fund. This payment
must include the required employee and employer contributions at the rates specified in
section 354A.12, subdivisions 1 and 2a, as applied to the member's average full-time
monthly salary rate on the date the leave of absence commenced plus annual interest at the
new text begin applicable new text end rate deleted text begin of 8.5 percentdeleted text end per year from the end of the fiscal year during which the
leave terminates to the end of the month during which payment is made. new text begin The applicable
rate is 8.5 percent for the period before July 1, 2012, and the period after June 30, 2021,
and is 8.0 percent for the period from July 1, 2012, through June 30, 2021. new text end The member
must pay the total amount required unless the employing unit, at its option, pays the
employer contributions. The total amount required must be paid by the end of the fiscal
year following the fiscal year in which the leave of absence terminated or before the
member retires, whichever is earlier. Payment must be accompanied by a copy of the
resolution or action of the employing authority granting the leave and the employing
authority, upon granting the leave, must certify the leave to the association in a manner
specified by the executive director. A member may not receive more than one year of
allowable service credit during any fiscal year by making payment under this section. A
member may not receive disability benefits under section 354A.36 and receive allowable
service credit under this section for the same period of time.

Sec. 34.

Minnesota Statutes 2010, section 354A.108, is amended to read:

354A.108 PAYMENT BY TEACHERS COLLECTING WORKERS'
COMPENSATION.

(a) A member of the Duluth Teachers Retirement Fund Association who is receiving
temporary workers' compensation payments related to the member's teaching service
and who either is receiving a reduced salary from the employer or is receiving no salary
from the employer is entitled to receive allowable service credit for the period of time
that the member is receiving the workers' compensation payments upon making the
required payment amount.

(b) The required amount payable by the member must be calculated first by
determining the differential salary amount, which is the difference between the salary
received, if any, during the period of time that the member is collecting workers'
compensation payments, and the salary that the member received for an identical length
period immediately before collecting the workers' compensation payments. The member
shall pay an amount equal to the employee contribution rate under section 354A.12,
subdivision 1, multiplied by the differential salary amount.

(c) If the member makes the employee payment under this section, the employing
unit shall make an employer payment to the Duluth Teachers Retirement Fund Association
equal to the employer contribution rate under section 354A.12, subdivision 2a, multiplied
by the differential salary amount.

(d) Payments made under this subdivision are payable without interest if paid by
June 30 of the year during which the workers' compensation payments are received by
the member. If paid after June 30, payments made under this subdivision must include
interest at the new text begin applicable new text end rate deleted text begin of 8.5 percentdeleted text end per year. new text begin The applicable rate is 8.5 percent for
the period before July 1, 2012, and the period after June 30, 2021, and is 8.0 percent for
the period from July 1, 2012, through June 30, 2021. new text end Payment under this section must
be completed within one year of the termination of the workers' compensation payments
to the member.

Sec. 35.

Minnesota Statutes 2010, section 354A.38, subdivision 3, is amended to read:

Subd. 3.

Computation of refund repayment amount.

If the coordinated member
elects to repay a refund under subdivision 2, the repayment to the fund must be in an
amount equal to refunds the member has accepted plus interest at the new text begin applicable new text end rate
deleted text begin of 8.5 percentdeleted text end compounded annually from the date that the refund was accepted to the
date that the refund is repaid.new text begin The applicable rate is 8.5 percent for the period before July
1, 2012, and the period after June 30, 2021, and is 8.0 percent for the period from July
1, 2012, through June 30, 2021.
new text end

Sec. 36.

Minnesota Statutes 2010, section 354B.23, subdivision 5, is amended to read:

Subd. 5.

Omitted member deductions.

(a) If the employing unit that employs a
plan participant fails to deduct the member contribution from the participant's salary and
a period of less than 60 days from the date on which the deduction should have been
made has elapsed, the employing unit must obtain the omitted member deduction by an
additional payroll deduction during the pay period next following the discovery of the
omission.

(b) If the employing unit of a plan participant fails to deduct the member contribution
from the participant's salary and that omission continues for at least 60 days from the
date on which the deduction should have been made, the employing unit must pay the
amount representing the omitted member contribution, and the full required employer
contribution, plus compound interest at deleted text begin andeleted text end new text begin the applicable new text end annual rate deleted text begin of 8.5 percentdeleted text end . new text begin The
applicable rate is 8.5 percent for the period before July 1, 2012, and the period after June
30, 2021, and is 8.0 percent for the period from July 1, 2012, through June 30, 2021. new text end The
contributions and any interest must be made within one year of the date on which the
omission was discovered.

Sec. 37.

Minnesota Statutes 2010, section 354C.12, subdivision 2, is amended to read:

Subd. 2.

Omitted deductions.

If the employer of personnel covered by the
supplemental retirement plan as provided in section 354C.11 fails to deduct the member
basic contribution from the covered employee's salary and a period of less than 60 days
from the date on which the deduction should have been made has elapsed, the employer
must obtain the omitted member deduction by an additional payroll deduction during the
pay period next following the discovery of the omission. If the employer fails to deduct the
member basic contribution from the covered employee's salary and that omission continues
for at least 60 days from the date on which the member basic contribution deduction
should have been made, the employer must pay the amount representing the omitted
member basic contribution, and the full required omitted employer basic contribution,
plus compound interest at deleted text begin andeleted text end new text begin the applicable new text end annual rate deleted text begin of 8.5 percentdeleted text end . new text begin The applicable rate
is 8.5 percent for the period before July 1, 2012, and the period after June 30, 2021, and is
8.0 percent for the period from July 1, 2012, through June 30, 2021. new text end The contributions
must be made within one year of the date on which the omission was discovered.

Sec. 38.

Minnesota Statutes 2010, section 356.195, subdivision 2, is amended to read:

Subd. 2.

Purchase procedure for strike periods.

(a) An employee covered by a
plan specified in subdivision 1 may purchase allowable service credit in the applicable
plan for any period of time during which the employee was on a public employee strike
without pay, not to exceed a period of one year, if the employee makes a payment in
lieu of salary deductions as specified in paragraph (b) or (c), whichever applies. The
employing unit, at its option, may pay the employer portion of the amount specified in
paragraph (b) on behalf of its employees.

(b) If payment is received by the applicable pension plan executive director within
one year from the end of the strike, the payment amount is equal to the applicable
employee and employer contribution rates specified in law for the applicable plan during
the strike period, applied to the employee's rate of salary in effect at the conclusion of the
strike for the period of the strike without pay, plus compound interest at deleted text begin adeleted text end new text begin the applicable
new text end monthly rate deleted text begin of 0.71 percentdeleted text end from the last day of the strike period until the date payment is
received.new text begin The applicable rate is 0.71 percent before July 1, 2012, and the period after June
30, 2021, and is 0.667 percent for the period from July 1, 2012, through June 30, 2021.
new text end

(c) If payment is received by the applicable pension fund director after one year and
before five years from the end of the strike, the payment amount is the amount determined
under section 356.551.

(d) Payments may not be made more than five years after the end of the strike.

Sec. 39.

Minnesota Statutes 2010, section 356.215, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of sections 3.85 and 356.20 to
356.23, each of the terms in the following paragraphs has the meaning given.

(b) "Actuarial valuation" means a set of calculations prepared by an actuary retained
under section 356.214 if so required under section 3.85, or otherwise, by an approved
actuary, to determine the normal cost and the accrued actuarial liabilities of a benefit
plan, according to the entry age actuarial cost method and based upon stated assumptions
including, but not limited to rates of interest, mortality, salary increase, disability,
withdrawal, and retirement and to determine the payment necessary to amortize over a
stated period any unfunded accrued actuarial liability disclosed as a result of the actuarial
valuation of the benefit plan.

(c) "Approved actuary" means a person who is regularly engaged in the business of
providing actuarial services and who is a fellow in the Society of Actuaries.

(d) "Entry age actuarial cost method" means an actuarial cost method under which
the actuarial present value of the projected benefits of each individual currently covered
by the benefit plan and included in the actuarial valuation is allocated on a level basis over
the service of the individual, if the benefit plan is governed by section 69.773, or over the
earnings of the individual, if the benefit plan is governed by any other law, between the
entry age and the assumed exit age, with the portion of the actuarial present value which is
allocated to the valuation year to be the normal cost and the portion of the actuarial present
value not provided for at the valuation date by the actuarial present value of future normal
costs to be the actuarial accrued liability, with aggregation in the calculation process to be
the sum of the calculated result for each covered individual and with recognition given to
any different benefit formulas which may apply to various periods of service.

(e) "Experience study" means a report providing experience data and an actuarial
analysis of the adequacy of the actuarial assumptions on which actuarial valuations are
based.

(f) "Actuarial value of assets" means:

deleted text begin (1) For the July 1, 2009, actuarial valuation, the market value of all assets as of
June 30, 2009, reduced by:
deleted text end

deleted text begin (i) 20 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2006,
and June 30, 2005, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2005;
deleted text end

deleted text begin (ii) 40 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2007,
and June 30, 2006, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2006;
deleted text end

deleted text begin (iii) 60 percent of the difference between the actual net change in the market value
of assets other than the Minnesota postretirement investment fund between June 30, 2008,
and June 30, 2007, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2007;
deleted text end

deleted text begin (iv) 80 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2008; and
deleted text end

deleted text begin (v) if applicable, 80 percent of the difference between the actual net change in the
market value of the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets over that fiscal
year period if the assets had increased at 8.5 percent annually.
deleted text end

deleted text begin (2) For the July 1, 2010, actuarial valuation, the market value of all assets as of
June 30, 2010, reduced by:
deleted text end

deleted text begin (i) 20 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2007,
and June 30, 2006, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2006;
deleted text end

deleted text begin (ii) 40 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2008,
and June 30, 2007, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2007;
deleted text end

deleted text begin (iii) 60 percent of the difference between the actual net change in the market value
of assets other than the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2008;
deleted text end

deleted text begin (iv) 80 percent of the difference between the actual net change in the market value of
total assets between June 30, 2010, and June 30, 2009, and the computed increase in the
market value of total assets over that fiscal year period if the assets had earned a rate of
return on assets equal to the annual percentage preretirement interest rate assumption used
in the actuarial valuation for July 1, 2009; and
deleted text end

deleted text begin (v) if applicable, 60 percent of the difference between the actual net change in the
market value of the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets over that fiscal
year period if the assets had increased at 8.5 percent annually.
deleted text end

deleted text begin (3) For the July 1, 2011, actuarial valuation, the market value of all assets as of
June 30, 2011, reduced by:
deleted text end

deleted text begin (i) 20 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2008,
and June 30, 2007, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2007;
deleted text end

deleted text begin (ii) 40 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2008;
deleted text end

deleted text begin (iii) 60 percent of the difference between the actual net change in the market value
of the total assets between June 30, 2010, and June 30, 2009, and the computed increase in
the market value of the total assets over that fiscal year period if the assets had earned
a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2009;
deleted text end

deleted text begin (iv) 80 percent of the difference between the actual net change in the market value of
total assets between June 30, 2011, and June 30, 2010, and the computed increase in the
market value of total assets over that fiscal year period if the assets had earned a rate of
return on assets equal to the annual percentage preretirement interest rate assumption used
in the actuarial valuation for July 1, 2010; and
deleted text end

deleted text begin (v) if applicable, 40 percent of the difference between the actual net change in the
market value of the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets over that fiscal
year period if the assets had increased at 8.5 percent annually.
deleted text end

deleted text begin (4)deleted text end new text begin (1) new text end For the July 1, 2012, actuarial valuation, the market value of all assets as of
June 30, 2012, reduced by:

(i) 20 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2008;

(ii) 40 percent of the difference between the actual net change in the market value of
total assets between June 30, 2010, and June 30, 2009, and the computed increase in the
market value of total assets over that fiscal year period if the assets had earned a rate of
return on assets equal to the annual percentage preretirement interest rate assumption used
in the actuarial valuation for July 1, 2009;

(iii) 60 percent of the difference between the actual net change in the market value
of total assets between June 30, 2011, and June 30, 2010, and the computed increase in the
market value of total assets over that fiscal year period if the assets had earned a rate of
return on assets equal to the annual percentage preretirement interest rate assumption used
in the actuarial valuation for July 1, 2010;

(iv) 80 percent of the difference between the actual net change in the market value of
total assets between June 30, 2012, and June 30, 2011, and the computed increase in the
market value of total assets over that fiscal year period if the assets had earned a rate of
return on assets equal to the annual percentage preretirement interest rate assumption used
in the actuarial valuation for July 1, 2011; and

(v) if applicable, 20 percent of the difference between the actual net change in the
market value of the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets over that fiscal
year period if the assets had increased at 8.5 percent annually.

deleted text begin (5)deleted text end new text begin (2) new text end For the July 1, 2013, and following actuarial valuations, the market value of
all assets as of the preceding June 30, reduced by:

(i) 20 percent of the difference between the actual net change in the market value
of total assets between the June 30 that occurred three years earlier and the June 30 that
occurred four years earlier and the computed increase in the market value of total assets
over that fiscal year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial valuation
for the July 1 that occurred four years earlier;

(ii) 40 percent of the difference between the actual net change in the market value
of total assets between the June 30 that occurred two years earlier and the June 30 that
occurred three years earlier and the computed increase in the market value of total assets
over that fiscal year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial valuation
for the July 1 that occurred three years earlier;

(iii) 60 percent of the difference between the actual net change in the market value
of total assets between the June 30 that occurred one year earlier and the June 30 that
occurred two years earlier and the computed increase in the market value of total assets
over that fiscal year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial valuation
for the July 1 that occurred two years earlier; and

(iv) 80 percent of the difference between the actual net change in the market value
of total assets between the most recent June 30 and the June 30 that occurred one year
earlier and the computed increase in the market value of total assets over that fiscal year
period if the assets had earned a rate of return on assets equal to the annual percentage
preretirement interest rate assumption used in the actuarial valuation for the July 1 that
occurred one year earlier.

(g) "Unfunded actuarial accrued liability" means the total current and expected
future benefit obligations, reduced by the sum of the actuarial value of assets and the
present value of future normal costs.

(h) "Pension benefit obligation" means the actuarial present value of credited
projected benefits, determined as the actuarial present value of benefits estimated to be
payable in the future as a result of employee service attributing an equal benefit amount,
including the effect of projected salary increases and any step rate benefit accrual rate
differences, to each year of credited and expected future employee service.

Sec. 40.

Minnesota Statutes 2010, section 356.44, is amended to read:

356.44 PARTIAL PAYMENT OF PENSION PLAN REFUND.

(a) Notwithstanding any provision of law to the contrary, a member of a pension
plan listed in section 356.30, subdivision 3, with at least two years of forfeited service
taken from a single pension plan, may repay a portion of all refunds. A partial refund
repayment must comply with this section.

(b) The minimum portion of a refund repayment is one-third of the total service
credit period of all refunds taken from a single plan.

(c) The cost of the partial refund repayment is the product of the cost of the total
repayment multiplied by the ratio of the restored service credit to the total forfeited service
credit. The total repayment amount includes interest at the new text begin applicable new text end annual rate deleted text begin of 8.5
percentdeleted text end , compounded annually, from the refund date to the date repayment is received.

new text begin (d) The applicable rate is 8.5 percent for the period before July 1, 2012, and the
period after June 30, 2021, and is 8.0 percent for the period from July 1, 2012, through
June 30, 2021.
new text end

deleted text begin (d)deleted text end new text begin (e) new text end The restored service credit must be allocated based on the relationship the
restored service bears to the total service credit period for all refunds taken from a single
pension plan.

deleted text begin (e)deleted text end new text begin (f) new text end This section does not authorize a public pension plan member to repay a
refund if the law governing the plan does not authorize the repayment of a refund of
member contributions.

Sec. 41.

Minnesota Statutes 2010, section 356.50, subdivision 2, is amended to read:

Subd. 2.

Service credit procedure.

(a) To obtain the public pension plan
allowable service credit, the eligible person under subdivision 1 shall pay the required
member contribution amount. The required member contribution amount is the member
contribution rate or rates in effect for the pension plan during the period of service covered
by the back pay award, applied to the unpaid gross salary amounts of the back pay award
including unemployment insurance, workers' compensation, or wages from other sources
which reduced the back award. No contributions may be made under this clause for
compensation covered by a public pension plan listed in section 356.30, subdivision 3,
for employment during the removal period. The person shall pay the required member
contribution amount within 60 days of the date of receipt of the back pay award or within
60 days of a billing from the retirement fund, whichever is later.

(b) The public employer who wrongfully discharged the public employee must pay
an employer contribution on the back pay award. The employer contribution must be
based on the employer contribution rate or rates in effect for the pension plan during the
period of service covered by the back pay award, applied to the salary amount on which
the member contribution amount was determined under paragraph (a). Interest on both the
required member and employer contribution amount must be paid by the employer at the
new text begin applicable new text end annual compound rate deleted text begin of 8.5 percentdeleted text end per year, expressed monthly, between the
date the contribution amount would have been paid to the date of actual payment. new text begin The
applicable rate is 8.5 percent for the period before July 1, 2012, and the period after June
30, 2021, and is 8.0 percent for the period from July 1, 2012, through June 30, 2021. new text end The
employer payment must be made within 30 days of the payment under paragraph (a).

Sec. 42.

Minnesota Statutes 2010, section 356.551, subdivision 2, is amended to read:

Subd. 2.

Determination.

(a) Unless the minimum purchase amount set forth in
paragraph (c) applies, the prior service credit purchase amount is an amount equal to the
actuarial present value, on the date of payment, as calculated by the chief administrative
officer of the pension plan and reviewed by the actuary retained under section 356.214,
of the amount of the additional retirement annuity obtained by the acquisition of the
additional service credit in this section.

(b) Calculation of this amount must be made using the preretirement interest rate
applicable to the public pension plan specified in section 356.215, subdivision 8, and
the mortality table adopted for the public pension plan. The calculation must assume
continuous future service in the public pension plan until, and retirement at, the age at
which the minimum requirements of the fund for normal retirement or retirement with an
annuity unreduced for retirement at an early age, including section 356.30, are met with
the additional service credit purchased. The calculation must also assume a full-time
equivalent salary, or actual salary, whichever is greater, and a future salary history that
includes annual salary increases at the applicable salary increase rate for the plan specified
in section 356.215, subdivision 4d.

(c) The prior service credit purchase amount may not be less than the amount
determined by applying, for each year or fraction of a year being purchased, the sum
of the employee contribution rate, the employer contribution rate, and the additional
employer contribution rate, if any, applicable during that period, to the person's annual
salary during that period, or fractional portion of a year's salary, if applicable, plus interest
at the new text begin applicable new text end annual rate deleted text begin of 8.5 percentdeleted text end compounded annually from the end of the
year in which contributions would otherwise have been made to the date on which the
payment is received.

(d) Unless otherwise provided by statutes governing a specific plan, payment must
be made in one lump sum within one year of the prior service credit authorization or prior
to the member's effective date of retirement, whichever is earlier. Payment of the amount
calculated under this section must be made by the applicable eligible person.

(e) However, the current employer or the prior employer may, at its discretion, pay
all or any portion of the payment amount that exceeds an amount equal to the employee
contribution rates in effect during the period or periods of prior service applied to the
actual salary rates in effect during the period or periods of prior service, plus interest at
the new text begin applicable new text end rate deleted text begin of 8.5 percent a yeardeleted text end compounded annually from the date on which
the contributions would otherwise have been made to the date on which the payment is
made. If the employer agrees to payments under this subdivision, the purchaser must
make the employee payments required under this subdivision within 90 days of the prior
service credit authorization. If that employee payment is made, the employer payment
under this subdivision must be remitted to the chief administrative officer of the public
pension plan within 60 days of receipt by the chief administrative officer of the employee
payments specified under this subdivision.

Sec. 43.

Minnesota Statutes 2010, section 490.121, subdivision 4, is amended to read:

Subd. 4.

Allowable service.

(a) "Allowable service" means any calendar month,
subject to the service credit limit in subdivision 22, served as a judge at any time, during
which the judge received compensation for that service from the state, municipality,
or county, whichever applies, and for which the judge made any required member
contribution. It also includes any month served as a referee in probate for all referees in
probate who were in office before January 1, 1974.

(b) "Allowable service" also means a period of authorized leave of absence for which
the judge has made a payment in lieu of contributions, not in an amount in excess of the
service credit limit under subdivision 22. To obtain the service credit, the judge shall pay
an amount equal to the normal cost of the judges retirement plan on the date of return from
the leave of absence, as determined in the most recent actuarial report for the plan filed
with the Legislative Commission on Pensions and Retirement, multiplied by the judge's
average monthly salary rate during the authorized leave of absence and multiplied by the
number of months of the authorized leave of absence, plus annual compound interest at
the new text begin applicable new text end rate deleted text begin of 8.5 percentdeleted text end from the date of the termination of the leave to the date
on which payment is made. new text begin The applicable rate is 8.5 percent for the period before July 1,
2012, and the period after June 30, 2021, and is 8.0 percent for the period from July 1,
2012, through June 30, 2021. new text end The payment must be made within one year of the date on
which the authorized leave of absence terminated. Service credit for an authorized leave
of absence is in addition to a uniformed service leave under section 490.1211.

Sec. 44.

Minnesota Statutes 2010, section 490.1211, is amended to read:

490.1211 UNIFORMED SERVICE.

(a) A judge who is absent from employment by reason of service in the uniformed
services, as defined in United States Code, title 38, section 4303(13), and who returns
to state employment as a judge upon discharge from service in the uniformed service
within the time frame required in United States Code, title 38, section 4312(e), may obtain
service credit for the period of the uniformed service, provided that the judge did not
separate from uniformed service with a dishonorable or bad conduct discharge or under
other than honorable conditions.

(b) The judge may obtain credit by paying into the fund equivalent member
contribution based on the contribution rate or rates in effect at the time that the uniformed
service was performed multiplied by the full and fractional years being purchased and
applied to the annual salary rate. The annual salary rate is the average annual salary
during the purchase period that the judge would have received if the judge had continued
to provide employment services to the state rather than to provide uniformed service, or
if the determination of that rate is not reasonably certain, the annual salary rate is the
judge's average salary rate during the 12-month period of judicial employment rendered
immediately preceding the purchase period.

(d) If the member equivalent contributions provided for in this section are not paid
in full, the judge's allowable service credit must be prorated by multiplying the full and
fractional number of years of uniformed service eligible for purchase by the ratio obtained
by dividing the total member contributions received by the total member contributions
otherwise required under this section.

(e) To receive allowable service credit under this section, the contributions specified
in this section and section 490.121 must be transmitted to the fund during the period
which begins with the date on which the individual returns to judicial employment and
which has a duration of three times the length of the uniformed service period, but not
to exceed five years. If the determined payment period is calculated to be less than one
year, the contributions required under this section to receive service credit may be within
one year from the discharge date.

(f) The amount of allowable service credit obtainable under this section and section
490.121 may not exceed five years, unless a longer purchase period is required under
United States Code, title 38, section 4312.

(g) The state court administrator shall pay interest on all equivalent member and
employer contribution amounts payable under this section. Interest must be computed at deleted text begin adeleted text end
new text begin the applicable new text end rate deleted text begin of 8.5 percentdeleted text end compounded annually from the end of each fiscal year of
the leave or break in service to the end of the month in which payment is received.new text begin The
applicable rate is 8.5 percent for the period before July 1, 2012, and the period after June
30, 2021, and is 8.0 percent for the period from July 1, 2012, through June 30, 2021.
new text end

Sec. 45.

Minnesota Statutes 2010, section 490.124, subdivision 12, is amended to read:

Subd. 12.

Refund.

(a) A person who ceases to be a judge is entitled to a refund
in an amount that is equal to all of the member's employee contributions to the judges'
retirement fund plus interest computed under section 352.22, subdivision 2.

(b) A refund of contributions under paragraph (a) terminates all service credits and
all rights and benefits of the judge and the judge's survivors under this chapter.

(c) A person who becomes a judge again after taking a refund under paragraph (a)
may reinstate the previously terminated allowable service credit, rights, and benefits by
repaying the total amount of the previously received refund. The refund repayment must
include interest on the total amount previously received at deleted text begin andeleted text end new text begin the applicable new text end annual ratedeleted text begin of
8.5 percentdeleted text end , compounded annually, from the date on which the refund was received until
the date on which the refund is repaid.new text begin The applicable rate is 8.5 percent for the period
before July 1, 2012, and the period after June 30, 2021, and is 8.0 percent for the period
from July 1, 2012, through June 30, 2021.
new text end

Sec. 46. new text begin TEMPORARY PROVISION; REVISION OF ANNUITY RESERVE,
OPTIONAL ANNUITY FORM, AND EARLY RETIREMENT FACTORS.
new text end

new text begin On or before January 1, 2013, the governing boards of the Minnesota State
Retirement System, the Public Employees Retirement Association, the Teachers
Retirement Association, the Duluth Teachers Retirement Fund Association, and the
St. Paul Teachers Retirement Fund Association shall revise, for the retirement plan
or plans administered, the annuity reserve factors, optional annuity form factors, and
early retirement annuity factors, if the annuity is required to be the actuarial equivalent
of the normal retirement annuity form. The revision shall be undertaken with the
recommendation of the approved actuary retained by the retirement system, which
recommendation must be retained in the permanent records of the governing board. The
revised reserve factors also must be submitted for review by the auditing and reviewing
actuary retained by the Legislative Commission on Pensions and Retirement and the
applicable retirement fund shall reimburse the Legislative Commission on Pensions and
Retirement for the cost of the reserve review.
new text end

Sec. 47. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 46 are effective July 1, 2012.
new text end

plan	new text begin ultimate new text end preretirement interest rate assumption	new text begin ultimate new text end postretirement interest rate assumption
general state employees retirement plan	8.5%	6.0%
correctional state employees retirement plan	8.5	6.0
State Patrol retirement plan	8.5	6.0
legislators retirement plan	8.5	6.0
elective state officers retirement plan	8.5	6.0
judges retirement plan	8.5	6.0
general public employees retirement plan	8.5	6.0
public employees police and fire retirement plan	8.5	6.0
local government correctional service retirement plan	8.5	6.0
teachers retirement plan	8.5	6.0
Duluth teachers retirement plan	8.5	8.5
St. Paul teachers retirement plan	8.5	8.5

new text begin plan new text end	new text begin interest rate assumption new text end
Fairmont Police Relief Association	5.0	deleted text begin 5.0 deleted text end
Virginia Fire Department Relief Association	5.0	deleted text begin 5.0 deleted text end
Bloomington Fire Department Relief Association	6.0	deleted text begin 6.0 deleted text end
local monthly benefit volunteer firefighters relief associations	5.0	deleted text begin 5.0 deleted text end

plan	future salary increase assumption
correctional state employees retirement plan	assumption D
State Patrol retirement plan	assumption C
local government correctional service retirement plan	assumption C
Duluth teachers retirement plan	assumption A
St. Paul teachers retirement plan	assumption B

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

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

service length	A	B	C	D
1	deleted text begin 10.75deleted text end new text begin 10.00new text end %	deleted text begin 12.25deleted text end new text begin 11.50new text end %	deleted text begin 12.00deleted text end new text begin 11.25new text end %	deleted text begin 13.00deleted text end new text begin 12.25new text end %
2	deleted text begin 8.35 deleted text end new text begin 7.60 new text end	deleted text begin 9.15 deleted text end new text begin 8.40 new text end	deleted text begin 9.00 deleted text end new text begin 8.25 new text end	deleted text begin 11.00 deleted text end new text begin 10.25 new text end
3	deleted text begin 7.15 deleted text end new text begin 6.40 new text end	deleted text begin 7.75 deleted text end new text begin 7.00 new text end	deleted text begin 8.00 deleted text end new text begin 7.25 new text end	deleted text begin 9.00 deleted text end new text begin 8.25 new text end
4	deleted text begin 6.45 deleted text end new text begin 5.70 new text end	deleted text begin 6.85 deleted text end new text begin 6.10 new text end	deleted text begin 7.50 deleted text end new text begin 6.75 new text end	deleted text begin 8.00 deleted text end new text begin 7.25 new text end
5	deleted text begin 5.95 deleted text end new text begin 5.20 new text end	deleted text begin 6.25 deleted text end new text begin 5.50 new text end	deleted text begin 7.25 deleted text end new text begin 6.50 new text end	deleted text begin 6.50 deleted text end new text begin 5.75 new text end
6	deleted text begin 5.55 deleted text end new text begin 4.80 new text end	deleted text begin 5.75 deleted text end new text begin 5.00 new text end	deleted text begin 7.00 deleted text end new text begin 6.25 new text end	deleted text begin 6.10 deleted text end new text begin 5.35 new text end
7	deleted text begin 5.25 deleted text end new text begin 4.50 new text end	deleted text begin 5.45 deleted text end new text begin 4.70 new text end	deleted text begin 6.85 deleted text end new text begin 6.10 new text end	deleted text begin 5.80 deleted text end new text begin 5.05 new text end
8	deleted text begin 4.95 deleted text end new text begin 4.20 new text end	deleted text begin 5.15 deleted text end new text begin 4.40 new text end	deleted text begin 6.70 deleted text end new text begin 5.95 new text end	deleted text begin 5.60 deleted text end new text begin 4.85 new text end
9	deleted text begin 4.75 deleted text end new text begin 4.00 new text end	deleted text begin 4.85 deleted text end new text begin 4.10 new text end	deleted text begin 6.55 deleted text end new text begin 5.80 new text end	deleted text begin 5.40 deleted text end new text begin 4.65 new text end
10	deleted text begin 4.65 deleted text end new text begin 3.90 new text end	deleted text begin 4.65 deleted text end new text begin 3.90 new text end	deleted text begin 6.40 deleted text end new text begin 5.65 new text end	deleted text begin 5.30 deleted text end new text begin 4.55 new text end
11	deleted text begin 4.45 deleted text end new text begin 3.70 new text end	deleted text begin 4.45 deleted text end new text begin 3.70 new text end	deleted text begin 6.25 deleted text end new text begin 5.50 new text end	deleted text begin 5.20 deleted text end new text begin 4.45 new text end
12	deleted text begin 4.35 deleted text end new text begin 3.60 new text end	deleted text begin 4.35 deleted text end new text begin 3.60 new text end	deleted text begin 6.00 deleted text end new text begin 5.25 new text end	deleted text begin 5.10 deleted text end new text begin 4.35 new text end
13	deleted text begin 4.25 deleted text end new text begin 3.50 new text end	deleted text begin 4.15 deleted text end new text begin 3.40 new text end	deleted text begin 5.75 deleted text end new text begin 5.00 new text end	deleted text begin 5.00 deleted text end new text begin 4.25 new text end
14	deleted text begin 4.05 deleted text end new text begin 3.30 new text end	deleted text begin 4.05 deleted text end new text begin 3.30 new text end	deleted text begin 5.50 deleted text end new text begin 4.75 new text end	deleted text begin 4.90 deleted text end new text begin 4.15 new text end
15	deleted text begin 3.95 deleted text end new text begin 3.20 new text end	deleted text begin 3.95 deleted text end new text begin 3.20 new text end	deleted text begin 5.25 deleted text end new text begin 4.50 new text end	deleted text begin 4.80 deleted text end new text begin 4.05 new text end
16	deleted text begin 3.85 deleted text end new text begin 3.10 new text end	deleted text begin 3.85 deleted text end new text begin 3.10 new text end	deleted text begin 5.00 deleted text end new text begin 4.00 new text end	deleted text begin 4.80 deleted text end new text begin 4.05 new text end
17	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.75 deleted text end new text begin new text end new text begin 3.00 new text end	deleted text begin 4.75 deleted text end new text begin 3.75 new text end	deleted text begin 4.80 deleted text end new text begin 4.05 new text end
18	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 4.50 deleted text end new text begin 3.50 new text end	deleted text begin 4.80 deleted text end new text begin 4.05 new text end
19	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 4.25 deleted text end new text begin 3.25 new text end	deleted text begin 4.80 deleted text end new text begin 4.05 new text end
20	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 4.00 deleted text end new text begin 3.15 new text end	deleted text begin 4.80 deleted text end new text begin 4.05 new text end
21	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.90 deleted text end new text begin 3.05 new text end	deleted text begin 4.70 deleted text end new text begin 3.95 new text end
22	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.80 deleted text end new text begin 2.95 new text end	deleted text begin 4.60 deleted text end new text begin 3.85 new text end
23	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.70 deleted text end new text begin 2.85 new text end	deleted text begin 4.50 deleted text end new text begin 3.75 new text end
24	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.60 deleted text end new text begin 2.75 new text end	deleted text begin 4.50 deleted text end new text begin 3.75 new text end
25	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.50 deleted text end new text begin 2.75 new text end	deleted text begin 4.50 deleted text end new text begin 3.75 new text end
26	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.50 deleted text end new text begin 2.75 new text end	deleted text begin 4.50 deleted text end new text begin 3.75 new text end
27	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.50 deleted text end new text begin 2.75 new text end	deleted text begin 4.50 deleted text end new text begin 3.75 new text end
28	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.50 deleted text end new text begin 2.75 new text end	deleted text begin 4.50 deleted text end new text begin 3.75 new text end
29	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.50 deleted text end new text begin 2.75 new text end	deleted text begin 4.50 deleted text end new text begin 3.75 new text end
30 or more	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.75 deleted text end new text begin 3.00 new text end	deleted text begin 3.50 deleted text end new text begin 2.75 new text end	deleted text begin 4.50 deleted text end new text begin 3.75 new text end

plan	payroll growth assumption
general state employees retirement plan of the Minnesota State Retirement System	deleted text begin 3.75deleted text end new text begin 3.25new text end %
correctional state employees retirement plan	deleted text begin 4.50 deleted text end new text begin 3.25 new text end
State Patrol retirement plan	deleted text begin 4.50 deleted text end new text begin 3.25 new text end
legislators retirement plan	deleted text begin 4.50 deleted text end new text begin 3.25 new text end
judges retirement plan	deleted text begin 4.00 deleted text end new text begin 3.25 new text end
general employees retirement plan of the Public Employees Retirement Association	deleted text begin 3.75 deleted text end new text begin 3.25 new text end
public employees police and fire retirement plan	deleted text begin 3.75 deleted text end new text begin 3.25 new text end
local government correctional service retirement plan	deleted text begin 4.50 deleted text end new text begin 3.25 new text end
teachers retirement plan	deleted text begin 3.75 deleted text end new text begin 3.25 new text end
Duluth teachers retirement plan	deleted text begin 4.50 deleted text end new text begin 3.25 new text end
St. Paul teachers retirement plan	deleted text begin 5.00 deleted text end new text begin 3.25 new text end

HF 2168

Bill Text Versions

Current Version - as introduced

ARTICLE 1

ECONOMIC ASSUMPTION REVISIONS

Section 1.

Subd. 8.

Interest and salary assumptions.

new text begin EFFECTIVE DATE. new text end

ARTICLE 2

CONFORMING CHANGES RELATED TO INTEREST RATE ASSUMPTION CHANGE

Section 1.

Subd. 2.

Refundnew text begin ; refund repaymentnew text end .

Sec. 2.

Subd. 13a.

Reduced salary during period of workers' compensation.

Sec. 3.

Subd. 2.

Purchase procedure.

Sec. 4.

Subd. 8.

Department required to pay omitted salary deductions.

Sec. 5.

Subd. 9.

Erroneous deductions, canceled warrants.

Sec. 6.

352.23 TERMINATION OF RIGHTS.

Sec. 7.

352.27 CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED SERVICE.

Sec. 8.

352.271 METROPOLITAN TRANSIT COMMISSION-TRANSIT OPERATING DIVISION EMPLOYEES; CREDIT FOR MILITARY SERVICE.

Sec. 9.

Subd. 2.

Payment of additional equivalent contributions; pre-July 1, 2007, coverage transfers.

Sec. 10.

Subd. 3.

Payment of additional equivalent contributions; post-June 30, 2007, coverage transfers.

Sec. 11.

Subd. 2.

Purchase procedure.

Sec. 12.

352B.085 SERVICE CREDIT FOR CERTAIN DISABILITY LEAVES OF ABSENCE.

Sec. 13.

352B.086 SERVICE CREDIT FOR UNIFORMED SERVICE.

Sec. 14.

Subd. 4.

Reentry into state service.

Sec. 15.

Subd. 4.

Repayment of refund.

Sec. 16.

Subd. 2.

Payments by employee.

Sec. 17.

352D.12 TRANSFER OF PRIOR SERVICE CONTRIBUTIONS.

Sec. 18.

Subd. 16.

Allowable service; limits and computation.

Sec. 19.

Subd. 2.

Purchase procedure.

Sec. 20.

353.0162 REDUCED SALARY PERIODS SALARY CREDIT PURCHASE.

Sec. 21.

Subd. 7a.

Deductions or contributions transmitted by error.

Sec. 22.

Subd. 12.

Omitted salary deductions; obligations.

Sec. 23.

Subd. 12a.

Terminated employees: omitted deductions.

Sec. 24.

Subd. 5.

Interest chargeable on amounts due.

Sec. 25.

Subdivision 1.

Refund rights.

Sec. 26.

CONFORMING CHANGES RELATED TO INTEREST RATE
ASSUMPTION CHANGE

352.27 CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED
SERVICE.

352.271 METROPOLITAN TRANSIT COMMISSION-TRANSIT
OPERATING DIVISION EMPLOYEES; CREDIT FOR MILITARY SERVICE.

Payment of additional equivalent contributions; pre-July 1, 2007,
coverage transfers.

Payment of additional equivalent contributions; post-June 30, 2007,
coverage transfers.

352B.085 SERVICE CREDIT FOR CERTAIN DISABILITY LEAVES OF
ABSENCE.

354A.108 PAYMENT BY TEACHERS COLLECTING WORKERS'
COMPENSATION.

Sec. 46. new text begin TEMPORARY PROVISION; REVISION OF ANNUITY RESERVE,
OPTIONAL ANNUITY FORM, AND EARLY RETIREMENT FACTORS.
new text end

Sec. 47. new text begin EFFECTIVE DATE.
new text end