5th Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to retirement; various Minnesota public 1.3 pension plans; making various benefit and coverage 1.4 modifications; redirecting various state pension aids 1.5 to certain first class city teachers retirement fund 1.6 associations; requiring certain school district 1.7 employer contribution increases; making various 1.8 administrative modifications; establishing a special 1.9 task force to evaluate potential modifications in 1.10 various investment performance reporting programs; 1.11 amending Minnesota Statutes 1994, sections 3A.04, 1.12 subdivision 4; 16A.06, by adding a subdivision; 1.13 69.021, subdivision 7; 124.916, subdivision 3; 1.14 144C.06; 352.04, subdivision 8; 352.95, subdivision 2; 1.15 352B.10, subdivision 2; 352B.11, subdivision 1; 1.16 352C.09, by adding a subdivision; 353D.01, subdivision 1.17 2; 353D.02; 353D.03; 353D.04; 354.44, subdivisions 3 1.18 and 4; 354A.12, subdivisions 2 and 3c; 356A.06, 1.19 subdivisions 4 and 7; 423A.02, subdivision 1, and by 1.20 adding a subdivision; 423B.01, subdivision 9; 423B.15, 1.21 subdivision 3; 424A.001, by adding subdivisions; 1.22 424A.01, by adding a subdivision; 424A.02, subdivision 1.23 1; and 490.124, by adding a subdivision; Minnesota 1.24 Statutes 1995 Supplement, sections 144C.07, 1.25 subdivision 2; 144C.08; 354D.02, subdivision 2; 1.26 354D.03; 354D.04; 354D.06; and 356.219, subdivision 2; 1.27 Laws 1989, chapter 319, article 19, section 7, 1.28 subdivisions 1, as amended, and 4, as amended; and 1.29 Laws 1995, chapter 252, article 1, section 16; 1.30 proposing coding for new law in Minnesota Statutes, 1.31 chapters 354A; and 354D; repealing Minnesota Statutes 1.32 1994, section 353D.11; Laws 1990, chapter 570, article 1.33 13, section 1, subdivision 5. 1.34 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.35 ARTICLE 1 1.36 DESIGNATION OF BENEFICIARY FOR REFUND UPON DEATH 1.37 Section 1. Minnesota Statutes 1994, section 3A.04, 1.38 subdivision 4, is amended to read: 1.39 Subd. 4. [DEATH REFUNDS
TO ESTATE.] Upon the death of a 2.1 member of the legislature or former legislator who was not 2.2 receiving a retirement allowance, without either a surviving 2.3 spouse and without anyor dependent children, regardless of when2.4 the death occurred,the last designated beneficiary named on a 2.5 form filed with the director before the death of the legislator, 2.6 or if no designation is filed, the estate of the member or 2.7 former legislator, upon application of the representative of the2.8 estate, shall be entitled to a refund of contributions of the2.9 deceased member of the legislature or former legislatorplus 2.10 interest as provided in section 3A.03, subdivision 2, clause (2). 2.11 Sec. 2. Minnesota Statutes 1994, section 352B.11, 2.12 subdivision 1, is amended to read: 2.13 Subdivision 1. [REFUND OF PAYMENTS.] A member who has not 2.14 received other benefits under this chapter is entitled to a 2.15 refund of payments made by salary deduction, plus interest, if 2.16 the member is separated, either voluntarily or involuntarily, 2.17 from state service that entitled the member to membership. In 2.18 the event of the member's death, if there are no survivor 2.19 benefits payable under this chapter, a refund is payable to the 2.20 last designated beneficiary on a form filed with the director 2.21 before death, or if no designation is filed, the refund is 2.22 payable to the member's estate is entitled to the refund. 2.23 Interest must be computed at the rate of six percent a year, 2.24 compounded annually. To receive a refund, the member must apply2.25 application must be made on a form prescribed by the executive 2.26 director. 2.27 Sec. 3. Minnesota Statutes 1994, section 352C.09, is 2.28 amended by adding a subdivision to read: 2.29 Subd. 3. [DEATH REFUND.] If a constitutional officer who 2.30 has not received other benefits under this chapter dies and 2.31 there are no survivor benefits payable under this chapter, a 2.32 refund plus interest as provided in section 352C.09, subdivision 2.33 2, clause (1), is payable to the last designated beneficiary 2.34 named on a form filed with the director before the death of the 2.35 constitutional officer, or if no designation is on file, the 2.36 refund is payable to the estate of the deceased constitutional 3.1 officer. 3.2 Sec. 4. Minnesota Statutes 1994, section 490.124, is 3.3 amended by adding a subdivision to read: 3.4 Subd. 13. [DEATH REFUND.] If a judge who has not received 3.5 other benefits under this chapter dies and there are no survivor 3.6 benefits payable under this chapter, a refund plus interest as 3.7 provided in section 490.124, subdivision 12, is payable to the 3.8 last designated beneficiary named on a form filed with the 3.9 director before the death of the judge, or if no designation is 3.10 on file, the refund is payable to the estate of the deceased 3.11 judge. 3.12 Sec. 5. [EFFECTIVE DATE.] 3.13 Sections 1 to 4 are effective July 1, 1996. 3.14 ARTICLE 2 3.15 ADMINISTRATIVE PROVISIONS RELATING TO THE 3.16 MINNESOTA STATE RETIREMENT SYSTEM 3.17 Section 1. Minnesota Statutes 1994, section 352.04, 3.18 subdivision 8, is amended to read: 3.19 Subd. 8. [DEPARTMENT REQUIRED TO PAY OMITTED SALARY 3.20 DEDUCTIONS.] (a) If a department fails to take deductions past 3.21 due for a period of 60 days or less from an employee's salary as 3.22 provided in this section, those deductions must be taken on 3.23 later payroll abstracts. 3.24 (b) If a department fails to take deductions past due for a 3.25 period in excess of 60 days from an employee's salary as 3.26 provided in this section, the department, and not the employee, 3.27 shallmust pay on later payroll abstracts the employee and 3.28 employer contributions and an amount equivalent to 8.5 percent 3.29 of the total amount due in lieu of interest, or if the delay in 3.30 payment exceeds one year, 8.5 percent compound annual interest. 3.31 (c) If a department fails to take deductions past due for a 3.32 period of 60 days or less and the employee is no longer in state 3.33 service so that the required deductions cannot be taken from the 3.34 salary of the employee, the department shallmust nevertheless 3.35 pay the required employer contributions. If any department 3.36 fails to take deductions past due for a period in excess of 60 4.1 days and the employee is no longer in state service, the omitted 4.2 contributions shallmust be recovered under paragraph (b). 4.3 (d) If an employee from whose salary required deductions 4.4 were past due for a period of 60 days or less leaves state 4.5 service before the payment of the omitted deductions and 4.6 subsequently returns to state service, the unpaid amount is 4.7 considered the equivalent of a refund. The employee accrues no 4.8 right by reason of the unpaid amount, except that the employee 4.9 may pay the amount of omitted deductions as provided in section 4.10 352.23. 4.11 Sec. 2. Minnesota Statutes 1994, section 352.95, 4.12 subdivision 2, is amended to read: 4.13 Subd. 2. [NON-JOB-RELATED DISABILITY.] Any covered 4.14 correctional employee who, after at least one year of covered 4.15 correctional service, becomes disabled and physically or 4.16 mentally unfit to perform the duties of the position because of 4.17 sickness or injury occurring while not engaged in covered 4.18 employment, is entitled to a disability benefit based on covered 4.19 correctional service only. The disability benefit must be 4.20 computed as provided in section 352.93, subdivisions 1 and 2, 4.21 and computed as though the employee had at least 15 years of 4.22 covered correctional service. 4.23 Sec. 3. Minnesota Statutes 1994, section 352B.10, 4.24 subdivision 2, is amended to read: 4.25 Subd. 2. [DISABLED WHILE NOT ON DUTY.] If a member 4.26 terminates employment after at least one year of service because 4.27 of sickness or injury occurring while not on duty and not 4.28 engaged in state work entitling the member to membership, and 4.29 the termination is necessary because the member cannot perform4.30 duties, the member is entitled to receive a disability4.31 benefitmember becomes disabled and physically or mentally unfit 4.32 to perform the duties of the position because of sickness or 4.33 injury occurring while not engaged in covered employment, the 4.34 member is entitled to disability benefits. The benefit must be 4.35 in the same amount and computed in the same way as if the member 4.36 were 55 years old at the date of disability and the annuity were 5.1 paid under section 352B.08. If disability under this clause 5.2 occurs after one but before 15 years service, the disability 5.3 benefit must be computed as though the member had 15 years 5.4 service. 5.5 Sec. 4. [EFFECTIVE DATE.] 5.6 Sections 1 to 3 are effective July 1, 1996. 5.7 ARTICLE 3 5.8 ADMINISTRATIVE PROVISIONS RELATING TO 5.9 THE TEACHERS RETIREMENT ASSOCIATION 5.10 Section 1. Minnesota Statutes 1994, section 354.44, 5.11 subdivision 3, is amended to read: 5.12 Subd. 3. [APPLICATION FOR RETIREMENT.] Application for5.13 retirement must be made by the member or by someone authorized5.14 to act in the member's behalf.A member or a person authorized 5.15 to act on behalf of the member may make application for 5.16 retirement provided the age and service requirements under 5.17 subdivision 1 are satisfied on or before the member's retirement 5.18 annuity accrual date under subdivision 4. The application may 5.19 be made no earlier than 120 days before the termination of 5.20 teaching service. The application must be made on a form 5.21 prescribed by the executive director and is not complete until 5.22 all necessary supporting documents are received by the executive 5.23 director. 5.24 Sec. 2. Minnesota Statutes 1994, section 354.44, 5.25 subdivision 4, is amended to read: 5.26 Subd. 4. [ TIME AND MANNER OF PAYMENTSRETIREMENT ANNUITY 5.27 ACCRUAL DATE.] A member may make application to the board for a5.28 retirement annuity any time after the member has satisfied the5.29 age and service requirements of this chapter for retirement5.30 except that an application for retirement must not be made more5.31 than 60 days before termination of teaching service. The(a) An 5.32 annuity payment begins to accrue, providing that the age and 5.33 service requirements under subdivision 1 are satisfied, after 5.34 the termination of teaching service, or after the application 5.35 for retirement has been filed with the board, whichever is 5.36 later, as follows: 6.1 (a)(1) on the 16th day of the month of termination or 6.2 filing if the termination or filing occurs on or before the 15th 6.3 day of the month ,; 6.4 (b)(2) on the first day of the month following the month 6.5 of termination or filing if the termination or filing occurs on 6.6 or after the 16th day of the month , or; 6.7 (c)(3) on July 1 for all school principals and other 6.8 administrators who receive a full annual contract salary during 6.9 the fiscal year for performance of a full year's contract 6.10 duties; or 6.11 (4) a later date to be the first or 16th day of a month 6.12 within the six-month period immediately following the 6.13 termination of teaching service as specified under paragraph (b) 6.14 by the member. 6.15 (b) If an application for retirement is filed with the 6.16 board during the six-month period immediately following the 6.17 termination of teaching service, the annuity may begin to accrue 6.18 as if the application for retirement had been filed with the 6.19 board on the date teaching service terminated or a later date 6.20 occurring within the six-month period as specified by the member6.21 under paragraph (a), clause (4). An annuity must not begin to 6.22 accrue more than one month before the date of final salary 6.23 receipt. 6.24 Sec. 3. [EFFECTIVE DATE.] 6.25 Sections 1 and 2 are effective the day following final 6.26 enactment. 6.27 ARTICLE 4 6.28 INCREASED FUNDING FOR THE MINNEAPOLIS AND 6.29 ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATIONS 6.30 Section 1. Minnesota Statutes 1994, section 16A.06, is 6.31 amended by adding a subdivision to read: 6.32 Subd. 9. [FIRST CLASS CITY TEACHER RETIREMENT FUNDS AIDS 6.33 REPORTING.] Each year, on or before April 15, the commissioner 6.34 of finance shall report to the chairs of the senate finance 6.35 committee and the house ways and means committee on expenditures 6.36 for state aids to the Minneapolis and Saint Paul teacher 7.1 retirement fund associations under sections 354A.12 and 423A.02, 7.2 subdivision 3. This report shall include the amounts expended 7.3 in the most recent fiscal year and estimates of expected 7.4 expenditures for the current and next fiscal year. 7.5 Sec. 2. Minnesota Statutes 1994, section 69.021, 7.6 subdivision 7, is amended to read: 7.7 Subd. 7. [APPORTIONMENT OF FIRE STATE AID TO 7.8 MUNICIPALITIES AND RELIEF ASSOCIATIONS.] (1)(a) The 7.9 commissioner shall apportion the fire state aid relative to the 7.10 premiums reported on the Minnesota Firetown Premium Reports 7.11 filed under this chapter to each municipality and/or 7.12 firefighters' relief association ,. 7.13 (b) The commissioner shall calculate an initial fire state 7.14 aid allocation amount for each municipality or fire department 7.15 under paragraph (c) and a minimum fire state aid allocation 7.16 amount for each municipality or fire department under paragraph 7.17 (d). The municipality or fire department must receive the 7.18 larger fire state aid amount. 7.19 (c) The initial fire state aid allocation amount is the 7.20 amount available for apportionment as fire state aid under 7.21 subdivision 5, without inclusion of any additional funding 7.22 amount to support a minimum fire state aid amount under section 7.23 423A.02, subdivision 3, allocated one-half in proportion to the 7.24 population as shown in the last official statewide federal 7.25 census for each fire town and one-half in proportion to the 7.26 market value of each fire town, including the market value of 7.27 tax exempt property, but excluding the market value of 7.28 minerals. In the case of incorporated or municipal fire 7.29 departments furnishing fire protection to other cities, towns, 7.30 or townships as evidenced by valid fire service contracts filed 7.31 with the commissioner, the distribution shallmust be adjusted 7.32 proportionately to take into consideration the crossover fire 7.33 protection service. Necessary adjustments shall be made to 7.34 subsequent apportionments. In the case of municipalities or 7.35 independent fire departments qualifying for the aid, the 7.36 commissioner shall calculate the state aid for the municipality 8.1 or relief association on the basis of the population and the 8.2 market value of the area furnished fire protection service by 8.3 the fire department as evidenced by duly executed and valid fire 8.4 service agreements filed with the commissioner. If one or more 8.5 fire departments are furnishing contracted fire service to a 8.6 city, town, or township, only the population and market value of 8.7 the area served by each fire department shallmay be considered 8.8 in calculating the state aid and the fire departments furnishing 8.9 service shall enter into an agreement apportioning among 8.10 themselves the percent of the population and the market value of 8.11 each service area. The agreement shallmust be in writing and 8.12 must be filed with the commissioner. 8.13 (d) The minimum fire state aid allocation amount is the 8.14 amount in addition to the initial fire state allocation amount 8.15 that is derived from any additional funding amount to support a 8.16 minimum fire state aid amount under section 423A.02, subdivision 8.17 3, and allocated to municipalities with volunteer firefighter 8.18 relief associations based on the number of active volunteer 8.19 firefighters who are members of the relief association as 8.20 reported in the annual financial reporting for the calendar year 8.21 1993 to the office of the state auditor, but not to exceed 30 8.22 active volunteer firefighters, so that all municipalities or 8.23 fire departments with volunteer firefighter relief associations 8.24 receive in total at least a minimum fire state aid amount per 8.25 1993 active volunteer firefighter to a maximum of 30 8.26 firefighters. 8.27 (e) The fire state aid shallmust be paid to the treasurer 8.28 of the municipality where the fire department is located and the 8.29 treasurer of the municipality shall, within 30 days of receipt 8.30 of the fire state aid, transmit the aid to the relief 8.31 association if the relief association has filed a financial 8.32 report with the treasurer of the municipality and has met all 8.33 other statutory provisions pertaining to the aid apportionment. 8.34 (f) The commissioner may make rules to permit the 8.35 administration of the provisions of this section. Any 8.36 adjustments needed to correct prior misallocations must be made 9.1 to subsequent apportionments. 9.2 (2)Subd. 7a. [APPORTIONMENT OF POLICE STATE AID.] (a) The 9.3 commissioner shall apportion the state peace officer aid to each 9.4 municipality and to the county in the following manner: 9.5 (a)(1) For all municipalities maintaining police 9.6 departments and the county, the state aid shallmust be 9.7 distributed in proportion to the total number of peace officers, 9.8 as determined under section 69.011, subdivision 1, clause (g), 9.9 and subdivision 2, clause (b), employed by each municipality and 9.10 by the county for 12 calendar months and the proportional or 9.11 fractional number who were employed less than 12 months; 9.12 (b)(2) For each municipality which contracts with the 9.13 county for police service, a proportionate amount of the state 9.14 aid distributed to the county based on the full-time equivalent 9.15 number of peace officers providing contract service shallmust 9.16 be credited against the municipality's contract obligation; and 9.17 (c)(3) For each municipality which contracts with another 9.18 municipality for police service, a proportionate amount of the 9.19 state aid distributed to the municipality providing contract 9.20 service based on the full-time equivalent number of peace 9.21 officers providing contract service on a full-time equivalent 9.22 basis shallmust be credited against the contract obligation of 9.23 the municipality receiving contract service ;. 9.24 (d)(b) No municipality entitled to receive state peace 9.25 officer aid shallmay be apportioned less state peace officer 9.26 aid for any year under Laws 1976, chapter 315, than the amount 9.27 which was apportioned to it for calendar year 1975 based on 9.28 premiums reported to the commissioner for calendar year 1974; 9.29 provided, the amount of state peace officer aid to other 9.30 municipalities within the county and to the county shallmust be 9.31 adjusted in proportion to the total number of peace officers in 9.32 the municipalities and the county, so that the amount of state 9.33 peace officer aid apportioned shalldoes not exceed the amount 9.34 of state peace officer aid available for apportionment. 9.35 Sec. 3. Minnesota Statutes 1994, section 124.916, 9.36 subdivision 3, is amended to read: 10.1 Subd. 3. [RETIREMENT LEVIES.] (1) In addition to the 10.2 excess levy authorized in 1976 any district within a city of the 10.3 first class which was authorized in 1975 to make a retirement 10.4 levy under Minnesota Statutes 1974, section 275.127 and chapter 10.5 422A may levy an amount per pupil unit which is equal to the 10.6 amount levied in 1975 payable 1976, under Minnesota Statutes 10.7 1974, section 275.127 and chapter 422A, divided by the number of 10.8 pupil units in the district in 1976-1977. 10.9 (2) In 1979 and each year thereafter, any district which 10.10 qualified in 1976 for an extra levy under clause (1) shall be 10.11 allowed to levy the same amount as levied for retirement in 1978 10.12 under this clause reduced each year by ten percent of the 10.13 difference between the amount levied for retirement in 1971 10.14 under Minnesota Statutes 1971, sections 275.127 and 422.01 to 10.15 422.54 and the amount levied for retirement in 1975 under 10.16 Minnesota Statutes 1974, section 275.127 and chapter 422A. 10.17 (3) In 1991 and each year thereafter, a district to which 10.18 this subdivision applies may levy an additional amount required 10.19 for contributions to the Minneapolis employees retirement fund 10.20 as a result of the maximum dollar amount limitation on state 10.21 contributions to the fund imposed under section 422A.101, 10.22 subdivision 3. The additional levy shall not exceed the most 10.23 recent amount certified by the board of the Minneapolis 10.24 employees retirement fund as the district's share of the 10.25 contribution requirement in excess of the maximum state 10.26 contribution under section 422A.101, subdivision 3. 10.27 (4) For taxes payable in 1994 and thereafter, special 10.28 school district No. 1, Minneapolis, and independent school 10.29 district No. 625, St. Paul, may levy for the increase in the 10.30 employer retirement fund contributions, under Laws 1992, chapter 10.31 598, article 5, section 1. Notwithstanding section 121.904, the 10.32 entire amount of this levy may be recognized as revenue for the 10.33 fiscal year in which the levy is certified. This levy shall not 10.34 be considered in computing the aid reduction under section 10.35 124.155. 10.36 (5) If the employer retirement fund contributions under 11.1 section 354A.12, subdivision 2a, are increased for fiscal year 11.2 1994 or later fiscal years, special school district No. 1, 11.3 Minneapolis, and independent school district No. 625, St. Paul, 11.4 may levy in payable 1994 or later an amount equal to the amount 11.5 derived by applying the net increase in the employer retirement 11.6 fund contribution rate of the respective teacher retirement fund 11.7 association between fiscal year 1993 and the fiscal year 11.8 beginning in the year after the levy is certified to the total 11.9 covered payroll of the applicable teacher retirement fund 11.10 association. Notwithstanding section 121.904, the entire amount 11.11 of this levy may be recognized as revenue for the fiscal year in 11.12 which the levy is certified. This levy shall not be considered 11.13 in computing the aid reduction under section 124.155. If an 11.14 applicable school district levies under this paragraph, they may 11.15 not levy under paragraph (4). 11.16 (6) In addition to the levy authorized under paragraph (5), 11.17 special school district No. 1, Minneapolis, may also levy 11.18 payable in 1997 or later an amount equal to the contributions 11.19 under section 423A.02, subdivision 3, and may also levy in 11.20 payable 1994 or later an amount equal to the state aid 11.21 contribution under section 354A.12, subdivision 3b. Independent 11.22 school district No. 625, St. Paul, may levy payable in 1997 or 11.23 later an amount equal to the supplemental contributions under 11.24 section 423A.02, subdivision 3. Notwithstanding section 11.25 121.904, the entire amount of this levythese levies may be 11.26 recognized as revenue for the fiscal year in which the levy is 11.27 certified. This levyThese levies shall not be considered in 11.28 computing the aid reduction under section 124.155. 11.29 Sec. 4. [354A.105] [MINNEAPOLIS TEACHERS RETIREMENT FUND 11.30 ASSOCIATION; PURCHASE OF ALLOWABLE SERVICE CREDIT FOR TEACHING 11.31 SERVICE OUTSIDE MINNESOTA.] 11.32 (a) Notwithstanding any law, article of incorporation, or 11.33 bylaw provision of the Minneapolis teachers retirement fund 11.34 association to the contrary, an active member who has engaged in 11.35 other elementary or secondary public school teaching employment 11.36 either outside the state of Minnesota, but rendered in the 12.1 United States, or for the federal government before first 12.2 becoming a member of the association and who has met the 12.3 qualifications of paragraph (b) may elect to purchase and 12.4 receive allowable service credit in the applicable program of 12.5 the association for qualified prior service in other elementary 12.6 or secondary public school teaching employment that satisfies 12.7 the requirements of paragraph (c) by making the required payment 12.8 under paragraph (d). 12.9 (b) A member may elect to purchase allowable service credit 12.10 for other elementary or secondary public school teaching 12.11 employment under this subdivision if: 12.12 (1) the member has at least three years of allowable 12.13 service credit in the applicable program of the association; and 12.14 (2) the member did not and could not receive accrued 12.15 benefits by leaving the person's accumulated member 12.16 contributions with any other retirement system under the 12.17 applicable law in effect at the termination of the other public 12.18 employment. 12.19 (c) Service in other elementary or secondary public school 12.20 teaching employment rendered in the United States qualifies for 12.21 purchase under this subdivision if the service to be credited: 12.22 (1) does not exceed the lesser of ten years or the member's 12.23 total years of allowable teaching service in the Minneapolis 12.24 public schools at the time of the purchase; 12.25 (2) is equivalent to full-time allowable service as 12.26 determined in accordance with the statutes and rules applicable 12.27 to the association at the time of the purchase; 12.28 (3) is purchased in full year increments; 12.29 (4) is not for a period of service that has been used by 12.30 the member to qualify for an annuity from any other public 12.31 school retirement fund or system, as certified by the chief 12.32 administrative officer of the applicable retirement system; and 12.33 (5) is not available to be used for the purpose of 12.34 qualifying the member for a disability benefit from the 12.35 association. 12.36 (d) For a person eligible to purchase credit for qualifying 13.1 service under this subdivision, there must be paid to the 13.2 association an amount equal to the present value, on the date of 13.3 payment, of the amount of the additional retirement annuity that 13.4 would be obtained by virtue of the purchase of the additional 13.5 service credit, using the applicable preretirement interest rate 13.6 specified in section 356.215, subdivision 4d, and the mortality 13.7 table adopted for the retirement fund association and assuming 13.8 continuous future service in the retirement fund association 13.9 until the age at which the minimum requirements are met for 13.10 normal retirement with an annuity unreduced for retirement 13.11 before the normal retirement age, including the provisions of 13.12 section 356.30, and also assuming a future salary history that 13.13 includes increases at the applicable rate assumed under section 13.14 356.215, subdivision 4d. 13.15 (e) Payments under this section must be made only by the 13.16 member. The employer unit may not make any payment to or on 13.17 behalf of any member for the purpose of purchasing service 13.18 credit under this section. 13.19 (f) This section is repealed effective July 1, 2005. On or 13.20 before January 1, 2006, special school district No. 1 and the 13.21 Minneapolis teachers retirement fund association shall jointly 13.22 report to the legislature and the governor on the effects of the 13.23 provisions under this section on the district, fund, and 13.24 members. The report shall include information on use of the 13.25 service credit purchase provisions, the usefulness of this 13.26 section in promoting the recruitment and retention objectives of 13.27 the district, and the portability of pension benefits for 13.28 teachers and school administrative personnel. 13.29 Sec. 5. Minnesota Statutes 1994, section 354A.12, 13.30 subdivision 2, is amended to read: 13.31 Subd. 2. [RETIREMENT CONTRIBUTION LEVY DISALLOWED.] Except 13.32 as provided in subdivision 3b , paragraph (d)and in section 13.33 423A.02, subdivision 3, with respect to the city of Minneapolis 13.34 and special school district No. 1 and in section 423A.02, 13.35 subdivision 3, with respect to independent school district No. 13.36 625, notwithstanding any law to the contrary, levies for 14.1 teachers retirement fund associations in cities of the first 14.2 class, including levies for any employer social security taxes 14.3 for teachers covered by the Duluth teachers retirement fund 14.4 association or the Minneapolis teachers retirement fund 14.5 association or the St. Paul teachers retirement fund 14.6 association, are disallowed. 14.7 Sec. 6. Minnesota Statutes 1994, section 354A.12, 14.8 subdivision 3c, is amended to read: 14.9 Subd. 3c. [TERMINATION OF SUPPLEMENTAL CONTRIBUTIONS AND 14.10 DIRECT STATEMATCHING AND STATE AID.] (a) The supplemental 14.11 contributions payable to the Minneapolis teachers retirement 14.12 fund association by special school district No. 1 and the city 14.13 of Minneapolis under section 423A.02, subdivision 3, or to the 14.14 St. Paul teachers retirement fund association by independent 14.15 school district No. 625 under section 423A.02, subdivision 3, 14.16 the direct state aid under subdivision 3a to the St. Paul 14.17 teachers retirement association, and the direct matching and 14.18 state aid under subdivision 3b to the Minneapolis teachers 14.19 retirement fund association terminates for the respective fund 14.20 at the end of the fiscal year in which the accrued liability 14.21 funding ratio for that fund, as determined in the most recent 14.22 actuarial report for that fund by the actuary retained by the 14.23 legislative commission on pensions and retirement, equals or 14.24 exceeds the accrued liability funding ratio for the teachers 14.25 retirement association, as determined in the most recent 14.26 actuarial report for the teachers retirement association by the 14.27 actuary retained by the legislative commission on pensions and 14.28 retirement. 14.29 (b) If the direct matching, supplemental, or state aid is 14.30 terminated for the St. Paul teachers retirement fund association 14.31 or the Minneapolis teachers retirement fund association under 14.32 paragraph (a), it may not again be received by that fund. 14.33 (c) If either the Minneapolis teachers retirement fund 14.34 association or the St. Paul teachers retirement fund association 14.35 remain funded at less than the funding ratio applicable to the 14.36 teachers retirement association when the provisions of paragraph 15.1 (b) become effective, then any state aid not distributed to that 15.2 association must be immediately transferred to the other 15.3 association. 15.4 Sec. 7. Minnesota Statutes 1994, section 356A.06, 15.5 subdivision 7, is amended to read: 15.6 Subd. 7. [EXPANDED LIST OF AUTHORIZED INVESTMENT 15.7 SECURITIES.] (a) [AUTHORITY.] Except to the extent otherwise 15.8 authorized by law or bylaws, a covered pension plan not 15.9 described by subdivision 6, paragraph (a), may invest its assets 15.10 only in accordance with this subdivision. 15.11 (b) [SECURITIES GENERALLY.] The covered pension plan has 15.12 the authority to purchase, sell, lend, or exchange the 15.13 securities specified in paragraphs (c) to (g), including puts 15.14 and call options and future contracts traded on a contract 15.15 market regulated by a governmental agency or by a financial 15.16 institution regulated by a governmental agency. These 15.17 securities may be owned as units in commingled trusts that own 15.18 the securities described in paragraphs (c) to (g). 15.19 (c) [GOVERNMENT OBLIGATIONS.] The covered pension plan may 15.20 invest funds in governmental bonds, notes, bills, mortgages, and 15.21 other evidences of indebtedness provided the issue is backed by 15.22 the full faith and credit of the issuer or the issue is rated 15.23 among the top four quality rating categories by a nationally 15.24 recognized rating agency. The obligations in which funds may be 15.25 invested under this paragraph include guaranteed or insured 15.26 issues of (1) the United States, its agencies, its 15.27 instrumentalities, or organizations created and regulated by an 15.28 act of Congress; (2) Canada and its provinces, provided the 15.29 principal and interest is payable in United States dollars; (3) 15.30 the states and their municipalities, political subdivisions, 15.31 agencies, or instrumentalities; (4) the International Bank for 15.32 Reconstruction and Development, the Inter-American Development 15.33 Bank, the Asian Development Bank, the African Development Bank, 15.34 or any other United States government sponsored organization of 15.35 which the United States is a member, provided the principal and 15.36 interest is payable in United States dollars. 16.1 (d) [CORPORATE OBLIGATIONS.] The covered pension plan may 16.2 invest funds in bonds, notes, debentures, transportation 16.3 equipment obligations, or any other longer term evidences of 16.4 indebtedness issued or guaranteed by a corporation organized 16.5 under the laws of the United States or any state thereof, or the 16.6 Dominion of Canada or any province thereof if they conform to 16.7 the following provisions: 16.8 (1) the principal and interest of obligations of 16.9 corporations incorporated or organized under the laws of the 16.10 Dominion of Canada or any province thereof must be payable in 16.11 United States dollars; and 16.12 (2) obligations must be rated among the top four quality 16.13 categories by a nationally recognized rating agency. 16.14 (e) [OTHER OBLIGATIONS.] (1) The covered pension plan may 16.15 invest funds in bankers acceptances, certificates of deposit, 16.16 deposit notes, commercial paper, mortgage participation 16.17 certificates and pools, asset backed securities, repurchase 16.18 agreements and reverse repurchase agreements, guaranteed 16.19 investment contracts, savings accounts, and guaranty fund 16.20 certificates, surplus notes, or debentures of domestic mutual 16.21 insurance companies if they conform to the following provisions: 16.22 (i) bankers acceptances and deposit notes of United States 16.23 banks are limited to those issued by banks rated in the highest 16.24 four quality categories by a nationally recognized rating 16.25 agency; 16.26 (ii) certificates of deposit are limited to those issued by 16.27 (A) United States banks and savings institutions that are rated 16.28 in the highest four quality categories by a nationally 16.29 recognized rating agency or whose certificates of deposit are 16.30 fully insured by federal agencies; or (B) credit unions in 16.31 amounts up to the limit of insurance coverage provided by the 16.32 National Credit Union Administration; 16.33 (iii) commercial paper is limited to those issued by United 16.34 States corporations or their Canadian subsidiaries and rated in 16.35 the highest two quality categories by a nationally recognized 16.36 rating agency; 17.1 (iv) mortgage participation or pass through certificates 17.2 evidencing interests in pools of first mortgages or trust deeds 17.3 on improved real estate located in the United States where the 17.4 loan to value ratio for each loan as calculated in accordance 17.5 with section 61A.28, subdivision 3, does not exceed 80 percent 17.6 for fully amortizable residential properties and in all other 17.7 respects meets the requirements of section 61A.28, subdivision 17.8 3; 17.9 (v) collateral for repurchase agreements and reverse 17.10 repurchase agreements is limited to letters of credit and 17.11 securities authorized in this section; 17.12 (vi) guaranteed investment contracts are limited to those 17.13 issued by insurance companies or banks rated in the top four 17.14 quality categories by a nationally recognized rating agency or 17.15 to alternative guaranteed investment contracts where the 17.16 underlying assets comply with the requirements of this 17.17 subdivision; and17.18 (vii) savings accounts are limited to those fully insured 17.19 by federal agencies; and 17.20 (viii) asset backed securities must be rated in the top 17.21 four quality categories by a nationally recognized rating agency. 17.22 (2) Sections 16A.58 and 16B.06 do not apply to certificates 17.23 of deposit and collateralization agreements executed by the 17.24 covered pension plan under clause (1), item (ii). 17.25 (3) In addition to investments authorized by clause (1), 17.26 item (iv), the covered pension plan may purchase from the 17.27 Minnesota housing finance agency all or any part of a pool of 17.28 residential mortgages, not in default, that has previously been 17.29 financed by the issuance of bonds or notes of the agency. The 17.30 covered pension plan may also enter into a commitment with the 17.31 agency, at the time of any issue of bonds or notes, to purchase 17.32 at a specified future date, not exceeding 12 years from the date 17.33 of the issue, the amount of mortgage loans then outstanding and 17.34 not in default that have been made or purchased from the 17.35 proceeds of the bonds or notes. The covered pension plan may 17.36 charge reasonable fees for any such commitment and may agree to 18.1 purchase the mortgage loans at a price sufficient to produce a 18.2 yield to the covered pension plan comparable, in its judgment, 18.3 to the yield available on similar mortgage loans at the date of 18.4 the bonds or notes. The covered pension plan may also enter 18.5 into agreements with the agency for the investment of any 18.6 portion of the funds of the agency. The agreement must cover 18.7 the period of the investment, withdrawal privileges, and any 18.8 guaranteed rate of return. 18.9 (f) [CORPORATE STOCKS.] The covered pension plan may 18.10 invest funds in stocks or convertible issues of any corporation 18.11 organized under the laws of the United States or the states 18.12 thereof, the Dominion of Canada or its provinces, or any 18.13 corporation listed on the New York Stock Exchange or the 18.14 American Stock Exchange, if they conform to the following 18.15 provisions: 18.16 (1) The aggregate value of corporate stock investments, as 18.17 adjusted for realized profits and losses, must not exceed 85 18.18 percent of the market or book value, whichever is less, of a 18.19 fund, less the aggregate value of investments according to 18.20 subdivision 6; 18.21 (2) Investments must not exceed five percent of the total 18.22 outstanding shares of any one corporation. 18.23 (g) [OTHER INVESTMENTS.] (1) In addition to the 18.24 investments authorized in paragraphs (b) to (f), and subject to 18.25 the provisions in clause (2), the covered pension plan may 18.26 invest funds in: 18.27 (i) venture capital investment businesses through 18.28 participation in limited partnerships and corporations; 18.29 (ii) real estate ownership interests or loans secured by 18.30 mortgages or deeds of trust through investment in limited 18.31 partnerships, bank sponsored collective funds, trusts, and 18.32 insurance company commingled accounts, including separate 18.33 accounts; 18.34 (iii) regional and mutual funds through bank sponsored 18.35 collective funds and open-end investment companies registered 18.36 under the Federal Investment Company Act of 1940; 19.1 (iv) resource investments through limited partnerships, 19.2 private placements, and corporations; and 19.3 (v) international securities. 19.4 (2) The investments authorized in clause (1) must conform 19.5 to the following provisions: 19.6 (i) the aggregate value of all investments made according 19.7 to clause (1) may not exceed 35 percent of the market value of 19.8 the fund for which the covered pension plan is investing; 19.9 (ii) there must be at least four unrelated owners of the 19.10 investment other than the state board for investments made under 19.11 clause (1), item (i), (ii), (iii), or (iv); 19.12 (iii) covered pension plan participation in an investment 19.13 vehicle is limited to 20 percent thereof for investments made 19.14 under clause (1), item (i), (ii), (iii), or (iv); and 19.15 (iv) covered pension plan participation in a limited 19.16 partnership does not include a general partnership interest or 19.17 other interest involving general liability. The covered pension 19.18 plan may not engage in any activity as a limited partner which 19.19 creates general liability. 19.20 Sec. 8. Minnesota Statutes 1994, section 423A.02, 19.21 subdivision 1, is amended to read: 19.22 Subdivision 1. [AMORTIZATION STATE AID.] (a) A 19.23 municipality in which is located a local police or salaried 19.24 firefighters' relief association to which the provisions of 19.25 section 69.77, apply, that had an unfunded actuarial accrued 19.26 liability in the most recent relief association actuarial 19.27 valuation, is entitled, upon application as required by the 19.28 commissioner of revenue, to receive local police and salaried 19.29 firefighters' relief association amortization state aid if the 19.30 municipality and the appropriate relief association both comply 19.31 with the applicable provisions of sections 69.031, subdivision 19.32 5, 69.051, subdivisions 1 and 3, and 69.77. If a municipality 19.33 loses entitlement for amortization state aid in any year because 19.34 its local relief association no longer has an unfunded actuarial 19.35 accrued liability, the municipality is not entitled to 19.36 amortization state aid in any subsequent year. 20.1 (b) The total amount of amortization state aid to all 20.2 entitled municipalities must not exceed $5,055,000. 20.3 (c) Subject to the adjustment for the city of Minneapolis 20.4 provided in this paragraph, the amount of amortization state aid 20.5 to which a municipality is entitled annually is an amount equal 20.6 to the level annual dollar amount required to amortize, by 20.7 December 31, 2010, the unfunded actuarial accrued liability of 20.8 the special fund of the appropriate relief association as 20.9 reported in the December 31, 1978, actuarial valuation of the 20.10 relief association prepared under sections 356.215 and 356.216, 20.11 reduced by the dollar amount required to pay the interest on the 20.12 unfunded actuarial accrued liability of the special fund of the 20.13 relief association for calendar year 1981 set at the rate 20.14 specified in Minnesota Statutes 1978, section 356.215, 20.15 subdivision 4, clause (4). For the city of Minneapolis, the 20.16 amortization state aid amount thus determined must be reduced by 20.17 $747,232 on account of the Minneapolis police relief association 20.18 and by $772,768 on account of the Minneapolis fire department 20.19 relief association. If the amortization state aid amounts 20.20 determined under this paragraph exceed the amount appropriated 20.21 for this purpose, the amortization state aid for actual 20.22 allocation must be reduced pro rata. 20.23 (d) Payment of amortization state aid to municipalities 20.24 must be made directly to the municipalities involved in four20.25 three equal installments on March 15,July 15, September 15, and 20.26 November 15 annually. Upon receipt of amortization state aid, 20.27 the municipal treasurer shall transmit the aid amount to the 20.28 treasurer of the local relief association for immediate deposit 20.29 in the special fund of the relief association. 20.30 (e) The commissioner of revenue shall prescribe and 20.31 periodically revise the form for and content of the application 20.32 for the amortization state aid. 20.33 Sec. 9. Minnesota Statutes 1994, section 423A.02, is 20.34 amended by adding a subdivision to read: 20.35 Subd. 3. [REALLOCATION OF AMORTIZATION OR SUPPLEMENTARY 20.36 AMORTIZATION STATE AID.] (a) Seventy percent of the difference 21.1 between $5,720,000 and the current year amortization aid or 21.2 supplemental amortization aid distributed under subdivisions 1 21.3 and 1a that is not distributed for any reason to a municipality 21.4 for use by a local police or salaried fire relief association 21.5 must be distributed by the commissioner of revenue according to 21.6 this paragraph. The commissioner shall distribute 70 percent of 21.7 the amounts derived under this paragraph to the Minneapolis 21.8 teachers retirement fund association and 30 percent to the St. 21.9 Paul teachers retirement fund association to fund the unfunded 21.10 actuarial accrued liabilities of the respective funds. These 21.11 payments shall be made on or before June 30 each fiscal year. 21.12 The amount required under this paragraph is appropriated 21.13 annually from the general fund to the commissioner of revenue. 21.14 If either the Minneapolis teachers retirement fund association 21.15 or the St. Paul teachers retirement fund association becomes 21.16 funded at the funding ratio applicable to the teachers 21.17 retirement association based on the actuarial reports prepared 21.18 by the actuary for the legislative commission on pensions and 21.19 retirement, then the commissioner shall distribute that fund's 21.20 share under this paragraph to the other fund. The appropriation 21.21 under this paragraph terminates when both funds become fully 21.22 funded. Amounts remaining in the undistributed balance account 21.23 at the end of the biennium cancel to the general fund. 21.24 (b) In order to receive amortization and supplementary 21.25 amortization aid under paragraph (a), independent school 21.26 district No. 625, St. Paul, must make contributions to the St. 21.27 Paul teachers retirement fund association in accordance with the 21.28 following schedule: 21.29 Fiscal Year Amount 21.30 1996 $0 21.31 1997 $0 21.32 1998 $200,000 21.33 1999 $400,000 21.34 2000 $600,000 21.35 2001 and thereafter $800,000 21.36 (c) In order to receive amortization and supplementary 22.1 amortization aid under paragraph (a), special school district No. 22.2 1, Minneapolis, and the city of Minneapolis must each make 22.3 contributions to the Minneapolis teachers retirement fund 22.4 association in accordance with the following schedule: 22.5 Fiscal Year City School district 22.6 amount amount 22.7 1996 $0 $0 22.8 1997 $0 $0 22.9 1998 $250,000 $250,000 22.10 1999 $400,000 $400,000 22.11 2000 $550,000 $550,000 22.12 2001 $700,000 $700,000 22.13 2002 $850,000 $850,000 22.14 2003 and $1,000,000 $1,000,000 22.15 thereafter 22.16 (d) Money contributed under paragraph (a) and either 22.17 paragraph (b) or (c), as applicable, must be credited to a 22.18 separate account in the applicable teachers retirement fund and 22.19 may not be used in determining any benefit increases. The 22.20 separate account terminates for a fund when the aid payments to 22.21 the fund under paragraph (a) cease. 22.22 (e) Thirty percent of the difference between $5,720,000 and 22.23 the current year amortization aid or supplemental amortization 22.24 aid under subdivisions 1 and 1a that is not distributed for any 22.25 reason to a municipality for use by a local police or salaried 22.26 firefighter relief association must be distributed under section 22.27 69.021, subdivision 7, paragraph (d), as additional funding to 22.28 support a minimum fire state aid amount for volunteer 22.29 firefighter relief associations. The amount required under this 22.30 paragraph is appropriated annually to the commissioner of 22.31 revenue. 22.32 Sec. 10. Minnesota Statutes 1994, section 423B.01, 22.33 subdivision 9, is amended to read: 22.34 Subd. 9. [EXCESS INVESTMENT INCOME.] "Excess investment 22.35 income" means the amount, if any, by which the average time 22.36 weighted total rate of return earned by the fund in the most 23.1 recent prior five fiscal yearyears has exceeded the actual 23.2 average percentage increase in the current monthly salary of a 23.3 first grade patrol officer in the most recent prior five fiscal 23.4 yearyears plus two percent, and must be expressed as a dollar 23.5 amount and may not exceed one percent of the total assets of the 23.6 fund and does not exist unless the yearly average percentage23.7 increase of the time weighted total rate of return of the fund23.8 for the previous five years exceeds by two percent the yearly23.9 average percentage increase in monthly salary of a first grade23.10 patrol officer during the previous five calendar years. 23.11 Sec. 11. Minnesota Statutes 1994, section 423B.15, 23.12 subdivision 3, is amended to read: 23.13 Subd. 3. [AMOUNT OF ANNUAL POSTRETIREMENT PAYMENT.] The 23.14 amount determined under subdivision 2 must be applied in 23.15 accordance with this subdivision. The relief association shall 23.16 apply the first one-half of excess investment income to the 23.17 payment of an annual postretirement payment as specified in this 23.18 subdivision. The second one-half of excess investment income 23.19 must be applied to reduce the state amortization state aid or 23.20 supplementary amortization state aid payments otherwise due to 23.21 the relief association under section 423A.02 for the current 23.22 calendar year. The relief association shall pay an annual 23.23 postretirement payment to all eligible members in an amount not 23.24 to exceed one-half of one percent of the assets of the fund. 23.25 Payment of the annual postretirement payment must be in a lump 23.26 sum amount on June 1 following the determination date in any 23.27 year. Payment of the annual postretirement payment may be made 23.28 only if the average time weighted total rate of return for the 23.29 most recent prior five years exceeds by two percent the actual 23.30 average percentage increase in the current monthly salary of a 23.31 top grade patrol officer in the most recent prior five fiscal 23.32 year and the yearly average percentage increase of the time23.33 weighted total rate of return of the fund for the previous five23.34 years exceeds by two percent the yearly average percentage23.35 increase in monthly salary of a top grade patrol officer of the23.36 previous fiveyears. The total amount of all payments to 24.1 members may not exceed the amount determined under this 24.2 subdivision. Payment to each eligible member must be calculated 24.3 by dividing the total number of pension units to which eligible 24.4 members are entitled into the excess investment income available 24.5 for distribution to members, and then multiplying that result by 24.6 the number of units to which each eligible member is entitled to 24.7 determine each eligible member's annual postretirement payment. 24.8 Payment to each eligible member may not exceed an amount equal 24.9 to the total monthly benefit that the eligible member was 24.10 entitled to in the prior year under the terms of the benefit 24.11 plan of the relief association or each eligible member's 24.12 proportionate share of the excess investment income, whichever 24.13 is less. 24.14 A person who received a pension or benefit for the entire 24.15 12 months before the determination date is eligible for a full 24.16 annual postretirement payment. A person who received a pension 24.17 or benefit for less than 12 months before the determination date 24.18 is eligible for a prorated annual postretirement payment. 24.19 Sec. 12. Laws 1989, chapter 319, article 19, section 7, 24.20 subdivision 1, as amended by Laws 1992, chapter 471, article 2, 24.21 section 5, is amended to read: 24.22 Subdivision 1. [MINNEAPOLIS FIRE DEPARTMENT RELIEF 24.23 ASSOCIATION; DEFINITIONS.] For the purposes of this section, 24.24 each of the terms in this subdivision have the meanings given 24.25 them in paragraphs (a) to (h). 24.26 (a) "Annual postretirement payment" means the payment of a 24.27 lump sum postretirement benefit to an eligible member on June 1 24.28 following the determination date in any year. 24.29 (b) "City" means the city of Minneapolis. 24.30 (c) "Determination date" means December 31 of each year. 24.31 (d) "Eligible member" means a person, including a service 24.32 pensioner, a disability pensioner, a survivor, or dependent of a 24.33 deceased active member, service pensioner, or disability 24.34 pensioner, who received a pension or benefit from the relief 24.35 association during the 12 months before the determination date. 24.36 A person who received a pension or benefit for the entire 12 25.1 months before the determination date is eligible for a full 25.2 annual postretirement payment. A person who received a pension 25.3 or benefit for less than 12 months before the determination date 25.4 is eligible for a prorated annual postretirement payment. 25.5 (e) "Excess investment income" means the amount by which 25.6 the average time weighted total rate of return earned by the 25.7 fund in the most recent prior five fiscal yearyears has 25.8 exceeded the actual average percentage increase in the current 25.9 monthly salary of a top grade firefighter in the most 25.10 recent prior five fiscal yearyears plus two percent. The 25.11 excess investment income must be expressed as a dollar amount 25.12 and may not exceed one percent of the total assets of the 25.13 fund and does not exist unless the yearly average percentage25.14 increase of the time weighted total rate of return of the fund25.15 for the previous five years exceeds by two percent the yearly25.16 average percentage increase in monthly salary of a top grade25.17 firefighter during the previous five calendar years. 25.18 (f) "Fund" means the Minneapolis fire department relief 25.19 association. 25.20 (g) "Relief association" means the Minneapolis fire 25.21 department relief association. 25.22 (h) "Time weighted total rate of return" means the 25.23 percentage amount determined by using the formula or formulas 25.24 established by the state board of investment under Minnesota 25.25 Statutes, section 11A.04, clause (11), and in effect on January 25.26 1, 1987. 25.27 Sec. 13. Laws 1989, chapter 319, article 19, section 7, 25.28 subdivision 4, as amended by Laws 1990, chapter 570, article 12, 25.29 section 63, and Laws 1992, chapter 471, article 2, section 6, is 25.30 amended to read: 25.31 Subd. 4. [AMOUNT OF ANNUAL POSTRETIREMENT PAYMENT.] The 25.32 amount determined under subdivision 3 must be applied in 25.33 accordance with this subdivision. The relief association shall 25.34 apply the first one-half of one percent of assets which 25.35 constitute excess investment income to the payment of an annual 25.36 postretirement payment as specified in this subdivision. The 26.1 second one-half of one percent of assets which constitute excess 26.2 investment income shall be applied to reduce the state 26.3 amortization state aid or supplementary amortization state aid 26.4 payments otherwise due to the relief association under section 26.5 423A.02 for the current calendar year. The relief association 26.6 shall pay an annual postretirement payment to all eligible 26.7 members in an amount not to exceed one-half of one percent of 26.8 the assets of the fund. Payment of the annual postretirement 26.9 payment must be in a lump sum amount on June 1 following the 26.10 determination date in any year. Payment of the annual 26.11 postretirement payment may be made only if the average time 26.12 weighted total rate of return in the most recent prior five 26.13 fiscal years exceeds by two percent the actual average 26.14 percentage increase in the current monthly salary of a top grade 26.15 firefighter in the most recent prior five fiscal year and the26.16 yearly average percentage increase of the time weighted total26.17 rate of return of the fund for the previous five years exceeds26.18 by two percent the yearly average percentage increase in monthly26.19 salary of a top grade firefighter of the previous fiveyears. 26.20 The total amount of all payments to members may not exceed the 26.21 amount determined under subdivision 3. Payment to each eligible 26.22 member must be calculated by dividing the total number of 26.23 pension units to which eligible members are entitled into the 26.24 excess investment income available for distribution to members, 26.25 and then multiplying that result by the number of units to which 26.26 each eligible member is entitled to determine each eligible 26.27 member's annual postretirement payment. Payment to each 26.28 eligible member may not exceed an amount equal to the total 26.29 monthly benefit that the eligible member was entitled to in the 26.30 prior year under the terms of the benefit plan of the relief 26.31 association or each eligible member's proportionate share of the 26.32 excess investment income, whichever is less. 26.33 Sec. 14. [EFFECTIVE DATE.] 26.34 Sections 1 to 13 are effective the day following final 26.35 enactment and apply to aid payments beginning in calendar year 26.36 1996. 27.1 ARTICLE 5 27.2 ADMINISTRATIVE PROVISIONS RELATING TO THE 27.3 AMBULANCE SERVICE PERSONNEL LONGEVITY 27.4 AWARD PROGRAM 27.5 Section 1. Minnesota Statutes 1994, section 144C.06, is 27.6 amended to read: 27.7 144C.06 [TRUST ACCOUNT INVESTMENT.] 27.8 The trust account must be invested by the state board of 27.9 investment in nonretirement funds established under the 27.10 provisions of section 11A.14. The trust account must be 27.11 invested in investment accounts so that the asset allocation is 27.12 similar to the asset allocation of the income share account of 27.13 the Minnesota supplemental investment fund, as provided in27.14 governed by section 11A.2011A.17. 27.15 Sec. 2. Minnesota Statutes 1995 Supplement, section 27.16 144C.07, subdivision 2, is amended to read: 27.17 Subd. 2. [POTENTIAL ALLOCATIONS.] (a) On September27.18 November 1, annually, the board or the board's designee under 27.19 section 144C.01, subdivision 2, shall determine the amount of 27.20 the allocation of the prior year's accumulation to each 27.21 qualified ambulance service person. The prior year's net 27.22 investment gain or loss under paragraph (b) must be allocated 27.23 and that year's general fund appropriation, plus any transfer 27.24 from the suspense account under section 144C.03, subdivision 2, 27.25 and after deduction of administrative expenses, also must be 27.26 allocated. 27.27 (b) The difference in the market value of the assets of the 27.28 ambulance service personnel longevity award and incentive trust 27.29 account as of the immediately previous June 30 and the June 30 27.30 occurring 12 months earlier must be reported on or before August 27.31 15 by the state board of investment. The market value gain or 27.32 loss must be expressed as a percentage of the total potential 27.33 award accumulations as of the immediately previous June 30, and 27.34 that positive or negative percentage must be applied to increase 27.35 or decrease the recorded potential award accumulation of each 27.36 qualified ambulance service person. 28.1 (c) The appropriation for this purpose, after deduction of 28.2 administrative expenses, must be divided by the total number of 28.3 additional ambulance service personnel years of service 28.4 recognized since the last allocation or 1,000 years of service, 28.5 whichever is greater. If the allocation is based on the 1,000 28.6 years of service, any allocation not made for a qualified 28.7 ambulance service person must be credited to the suspense 28.8 account under section 144C.03, subdivision 2. A qualified 28.9 ambulance service person must be credited with a year of service 28.10 if the person is certified by the chief administrative officer 28.11 of the ambulance service as having rendered active ambulance 28.12 service during the 12 months ending as of the immediately 28.13 previous June 30. If the person has rendered prior active 28.14 ambulance service, the person must be additionally credited with 28.15 one-fifth of a year of service for each year of active ambulance 28.16 service rendered before June 30, 1993, but not to exceed in any 28.17 year one additional year of service or to exceed in total five 28.18 years of prior service. Prior active ambulance service means 28.19 employment by or the provision of service to a licensed 28.20 ambulance service before June 30, 1993, as determined by the 28.21 person's current ambulance service based on records provided by 28.22 the person that were contemporaneous to the service. The prior 28.23 ambulance service must be reported on or before August 151 to 28.24 the board in an affidavit from the chief administrative officer 28.25 of the ambulance service. 28.26 Sec. 3. Minnesota Statutes 1995 Supplement, section 28.27 144C.08, is amended to read: 28.28 144C.08 [AMBULANCE SERVICE PERSONNEL LONGEVITY AWARD.] 28.29 (a) A qualified ambulance service person who has terminated 28.30 active ambulance service, who has at least five years of 28.31 credited ambulance service, who is at least 50 years old, and 28.32 who is among the 400 persons with the greatest amount of 28.33 credited ambulance service applying for a longevity award during 28.34 that year, is entitled, upon application, to an ambulance 28.35 service personnel longevity award. An applicant whose 28.36 application is not approved because of the limit on the number 29.1 of annual awards may apply in a subsequent year. 29.2 (b) If a qualified ambulance service person who meets the 29.3 age and service requirements specified in paragraph (a) dies 29.4 before applying for a longevity award, the estate of the 29.5 decedent is entitled, upon application, to the decedent's 29.6 ambulance service personnel longevity award, without reference 29.7 to the limit on the number of annual awards. 29.8 (c) An ambulance service personnel longevity award is the 29.9 total amount of the person's accumulations indicated in the 29.10 person's separate record under section 144C.07 as of the August29.11 15 preceding the applicationNovember 1 in the calendar year in 29.12 which application is made. The amount is payable only in a lump 29.13 sum. 29.14 (d) Applications for an ambulance service personnel 29.15 longevity award must be received by the board or the board's 29.16 designee under section 144C.01, subdivision 2, by August 1529.17 October 1, annually. Ambulance service personnel longevity 29.18 awards are payable only as of the last business day in October29.19 December annually. 29.20 Sec. 4. [EFFECTIVE DATE.] 29.21 (a) Sections 1 to 3 are effective July 1, 1996. 29.22 (b) Any investments of the ambulance service personnel 29.23 longevity award and incentive trust account made before July 1, 29.24 1996, may be retained in the trust account after June 30, 1996, 29.25 until, in its judgment, the state board of investment determines 29.26 that it is appropriate to liquidate those prior holdings. 29.27 ARTICLE 6 29.28 PUBLIC EMPLOYEES DEFINED CONTRIBUTION PLAN 29.29 COVERAGE OPTION FOR LOCAL GOVERNMENT PHYSICIANS 29.30 Section 1. Minnesota Statutes 1994, section 353D.01, 29.31 subdivision 2, is amended to read: 29.32 Subd. 2. [ELIGIBILITY.] Except as provided in section29.33 353D.11,(a) Eligibility to participate in the defined 29.34 contribution plan is openavailable to an: 29.35 (1) elected local government officialofficials of a 29.36 governmental subdivision who electselect to participate in the 30.1 plan under section 353D.02, subdivision 1, and who, for the 30.2 elected service rendered to a governmental subdivision, isare 30.3 not a membermembers of the public employees retirement 30.4 association within the meaning of section 353.01, subdivision 30.5 7 ,; 30.6 (2) physicians who, if they did not elect to participate in 30.7 the plan under section 353D.02, subdivision 2, would meet the 30.8 definition of member under section 353.01, subdivision 7; and to30.9 (3) basic and advanced life support emergency medical 30.10 service personnel employed by or providing services for any 30.11 public ambulance service or privately operated ambulance service 30.12 that receives an operating subsidy from a governmental entity 30.13 that elects to participate under section 353D.02, subdivision 3. 30.14 (b) For purposes of this chapter, an elected local 30.15 government official includes a person appointed to fill a 30.16 vacancy in an elective office. Service as an elected local 30.17 government official only includes service for the governmental 30.18 subdivision for which the official was elected by the 30.19 public-at-large. Service as an elected local government 30.20 official ceases and eligibility to participate terminates when 30.21 the person ceases to be an elected official. An elected local 30.22 government official does not include an elected county sheriff. 30.23 Except as provided in section 353D.11,(c) Elected local 30.24 government officials, physicians, and first response personnel 30.25 and emergency medical service personnel who are currently 30.26 covered by a public or private pension plan because of their 30.27 employment or provision of services are not eligible to 30.28 participate in the public employees defined contribution plan. 30.29 (d) A former participant is a person who has ceased to be30.30 an elected local government official or an emergency medical30.31 service employee and whoterminated eligible employment or 30.32 service and has not withdrawn the value of anthe person's 30.33 individual account. 30.34 Sec. 2. Minnesota Statutes 1994, section 353D.02, is 30.35 amended to read: 30.36 353D.02 [ELECTION OF COVERAGE.] 31.1 Subdivision 1. [ELECTED LOCAL GOVERNMENT OFFICIALS.] 31.2 Eligible elected local government officials may elect to 31.3 participate in the defined contribution plan after being elected 31.4 or appointed to elective public office by filing a membership 31.5 application on a form prescribed by the executive director of 31.6 the association authorizing contributions to be deducted from 31.7 the elected official's salary. Participation begins on the 31.8 first day of the pay period for which the contributions were 31.9 deducted or, if pay period coverage dates are not provided, the 31.10 date on which the membership application or contributions are 31.11 received in the office of the association, whichever is received 31.12 first, provided further that the membership application is 31.13 received by the association within 60 days of the receipt of the 31.14 contributions. An election to participate in the plan is 31.15 revocable during incumbency. 31.16 Subd. 2. [ELIGIBLE PHYSICIAN.] Eligible physicians may 31.17 elect to participate in the defined contribution plan within 90 31.18 days of commencing employment with a government subdivision 31.19 under section 353.01, subdivision 6, by filing a membership 31.20 application on a form prescribed by the executive director of 31.21 the association authorizing contributions to be deducted from 31.22 the physician's salary. Participation begins on the first day 31.23 of the pay period for which the contributions were deducted. An 31.24 election to participate in the defined contribution plan is 31.25 irrevocable. 31.26 Subd. 3. [ELIGIBLE AMBULANCE SERVICE PERSONNEL.] Each 31.27 public ambulance service or privately operated ambulance service 31.28 with eligible personnel that receives an operating subsidy from 31.29 a governmental entity may elect to participate in the plan. If 31.30 a service elects to participate, its eligible personnel may 31.31 elect to participate or to decline to participate. An 31.32 individual's election must be made within 30 days of the 31.33 service's election to participate or 30 days of the date on 31.34 which the individual was employed by the service or began to 31.35 provide service for it, whichever date is later. An election by 31.36 a service or an individual is revocable. 32.1 Sec. 3. Minnesota Statutes 1994, section 353D.03, is 32.2 amended to read: 32.3 353D.03 [FUNDING OF PLAN.] 32.4 (a)Subdivision 1. [LOCAL GOVERNMENT OFFICIAL 32.5 CONTRIBUTION.] An eligible elected local government official who 32.6 elects to participate in the public employees defined 32.7 contribution plan shall contribute an amount equal to five 32.8 percent of salary as defined in section 353.01, subdivision 10. 32.9 A participating elected local government official's governmental 32.10 subdivision shall contribute a matching amount. 32.11 (b)Subd. 2. [PHYSICIAN CONTRIBUTION.] An eligible 32.12 physician who elects to participate in the plan shall contribute 32.13 an amount equal to five percent of salary as defined in section 32.14 353.01, subdivision 10. The employer shall contribute a 32.15 matching amount. 32.16 Subd. 3. [AMBULANCE SERVICE PERSONNEL CONTRIBUTION.] A 32.17 public ambulance service or privately operated ambulance service 32.18 that receives an operating subsidy from a governmental entity 32.19 that elects to participate in the plan shall fund benefits for 32.20 its qualified personnel who individually elect to participate. 32.21 Personnel who are paid for their services may elect to make 32.22 member contributions in an amount not to exceed the service's 32.23 contribution on their behalf. Ambulance service contributions 32.24 on behalf of salaried employees must be a fixed percentage of 32.25 salary. An ambulance service making contributions for volunteer 32.26 or largely uncompensated personnel may assign a unit value for 32.27 each call or each period of alert duty for the purpose of 32.28 calculating ambulance service contributions. 32.29 (c)Subd. 4. [PAYMENTS BY FORMER ELIGIBLE ELECTED 32.30 OFFICIALS.] Former participantseligible elected local 32.31 government officials in the defined contribution plan under this 32.32 chapter shall not contribute to the plan except under section 32.33 353D.12. 32.34 Sec. 4. Minnesota Statutes 1994, section 353D.04, is 32.35 amended to read: 32.36 353D.04 [CONTRIBUTIONS AND DEDUCTIONS IN ERROR.] 33.1 (a)Subdivision 1. [CREDITING OF ACCOUNT.] Contributions 33.2 made by or on behalf of a participating elected local government 33.3 official or physician must be remitted to the public employees 33.4 retirement association and credited to the individual account 33.5 established for the participant. (b)Ambulance service 33.6 contributions must be remitted on a regular basis to the 33.7 association together with any member contributions paid or 33.8 withheld. Those contributions must be credited to the 33.9 individual account of each participating member. 33.10 Subd. 2. [AUTHORITY TO ADOPT POLICIES.] The executive 33.11 director may adopt policies and procedures regarding deductions 33.12 taken totally or partially in error by the employer from the 33.13 salary of an elected official. 33.14 Sec. 5. [CURRENT ELIGIBLE PHYSICIANS.] 33.15 Subdivision 1. [EXERCISE OF OPTION.] As of the effective 33.16 date of this section, an eligible physician, who with respect to 33.17 current service is participating in the general employees 33.18 defined benefit plan administered by the public employees 33.19 retirement association, may elect to participate in the public 33.20 employees defined contribution plan and terminate further 33.21 participation in the general employees defined benefit plan. 33.22 The necessary election must be made within six months after the 33.23 effective date of this section. 33.24 Subd. 2. [REFUND OR DEFERRED ANNUITY.] An eligible 33.25 physician, who elects to transfer coverage under subdivision 1, 33.26 is deemed to have terminated public service for purposes of 33.27 Minnesota Statutes, section 353.34. The termination of public 33.28 service is deemed to occur as of the first day of the month 33.29 following the month in which the election is made to participate 33.30 in the public employees defined contribution plan and any refund 33.31 of accumulated employee deductions, with interest, or future 33.32 deferred annuity is governed by the law in effect on that day. 33.33 A refund paid to an eligible physician under this section must 33.34 include employee contributions withheld from salary and omitted 33.35 employee contributions paid by the employee or employer under 33.36 Minnesota Statutes, section 353.27, subdivision 12. 34.1 Sec. 6. [DEFINED CONTRIBUTION AND DEFINED BENEFIT PLAN 34.2 STUDY.] 34.3 The legislative commission on pensions and retirement shall 34.4 report to the legislature by February 15, 1997, on the relative 34.5 advantages and disadvantages, including any federal taxation 34.6 considerations, of defined benefit pension plans and of defined 34.7 contribution pension plans. 34.8 Sec. 7. [REPEALER.] 34.9 Minnesota Statutes 1994, section 353D.11, is repealed. 34.10 Sec. 8. [EFFECTIVE DATE.] 34.11 Sections 1 to 7 are effective the day following final 34.12 enactment. 34.13 ARTICLE 7 34.14 INDIVIDUAL RETIREMENT ACCOUNT PLANS DEFINED 34.15 CONTRIBUTION PLAN COVERAGE FOR HISTORICAL 34.16 SOCIETY EMPLOYEES 34.17 Section 1. Minnesota Statutes 1995 Supplement, section 34.18 354D.02, subdivision 2, is amended to read: 34.19 Subd. 2. [ELIGIBILITY.] Eligible employees are: 34.20 (1) any supervisory or professional employee of the state 34.21 arts board; and34.22 (2) any supervisory or professional employee of the 34.23 Minnesota humanities commission; or 34.24 (3) any employee of the Minnesota historical society. 34.25 Sec. 2. Minnesota Statutes 1995 Supplement, section 34.26 354D.03, is amended to read: 34.27 354D.03 [SOCIAL SECURITY COVERAGE.] 34.28 Plan participants remainare members of the general state 34.29 retirement plan for purposes of social security coverage only 34.30 remain, and are covered by the applicable agreement entered into 34.31 under section 355.02 but are not members of the general state 34.32 retirement plan for any other purpose while employed in covered 34.33 employment. 34.34 Sec. 3. Minnesota Statutes 1995 Supplement, section 34.35 354D.04, is amended to read: 34.36 354D.04 [PLAN COVERAGE.] 35.1 An election made under this section is irrevocable. 35.2 Eligible employees under section 354D.02, subdivision 2, shall 35.3 elect to participate in either the individual retirement account 35.4 plan or their respective retirement plan as follows: 35.5 (1) An eligible employee first employed after the effective35.6 date of Laws 1994, chapter 508, in covered employmentwith no 35.7 prior allowable service as a member of the Minnesota state 35.8 retirement system, the public employees retirement association, 35.9 or the teachers retirement association may elect retirement 35.10 coverage under either their respective state retirement plan or 35.11 the individual retirement account plan within 60 days of the 35.12 start of covered employment. An election made under this35.13 subdivision is irrevocable.35.14 (2) An eligible employee with prior allowable service as a 35.15 member of the Minnesota state retirement system, the public 35.16 employees retirement association, or the teachers retirement 35.17 association may elect prospective coverage by the individual 35.18 retirement account plan. If individual retirement account plan 35.19 coverage is elected, accumulated employer and employee 35.20 contributions and allowable service credit shall remain with the 35.21 applicable retirement association or system. Notwithstanding 35.22 any provision of law to the contrary, an individual who has 35.23 transferred coverage for the same employment to the individual 35.24 retirement account plan is entitled to an augmented deferred 35.25 retirement annuity from the prior plan based on the amount 35.26 representing the employer and employee contributions made on the 35.27 individual's behalf in the retirement association or system in 35.28 which the individual was formerly enrolled without regard to 35.29 whether or not the individual meets the service credit vesting 35.30 requirements of the applicable retirement association or 35.31 system. An election made under this subdivisionclause must be 35.32 made within 120 days and is irrevocablefollowing the date the 35.33 eligible employee first becomes eligible to make the election. 35.34 Sec. 4. Minnesota Statutes 1995 Supplement, section 35.35 354D.06, is amended to read: 35.36 354D.06 [ADMINISTRATION.] 36.1 (a) The Minnesota state university system or its successor 36.2 shall administer the individual retirement account plan for 36.3 eligible employees listed in section 354D.02, subdivision 2, 36.4 clauses (1) and (2), in accordance with sections 354B.01 to 36.5 354B.05. 36.6 (b) The Minnesota historical society or its successor shall 36.7 administer the individual retirement account plan for eligible 36.8 employees listed in section 354D.02, subdivision 2, clause (3), 36.9 in accordance with section 354D.08. 36.10 Sec. 5. [354D.08] [INDIVIDUAL RETIREMENT ACCOUNT PLAN 36.11 ADMINISTRATION; MINNESOTA HISTORICAL SOCIETY.] 36.12 Subdivision 1. [GENERAL GOVERNANCE.] The Minnesota 36.13 historical society is the plan administrator and has the 36.14 administrative responsibility for the individual retirement 36.15 account plan for those eligible employees listed in section 36.16 354D.02, subdivision 2, clause (3). 36.17 Subd. 2. [ANNUITY CONTRACTS AND CUSTODIAL ACCOUNTS.] (a) 36.18 The plan administrator shall arrange for the purchase of fixed 36.19 annuity contracts, variable annuity contracts, a combination of 36.20 fixed and variable annuity contracts, or custodial accounts from 36.21 financial institutions which have been selected by the state 36.22 board of investment and approved by the plan administrator under 36.23 subdivision 3, as the investment vehicle for the retirement 36.24 coverage of plan participants and to provide retirement benefits 36.25 to plan participants. Custodial accounts from financial 36.26 institutions shall include open-end investment companies 36.27 registered under the federal Investment Company Act of 1940, as 36.28 amended. 36.29 (b) The annuity contracts or accounts must be purchased 36.30 with contributions under section 354D.05, or with money or 36.31 assets otherwise provided by law by authority of the Minnesota 36.32 historical society and deemed acceptable by the applicable 36.33 financial institution. 36.34 Subd. 3. [SELECTION OF FINANCIAL INSTITUTIONS.] The plan 36.35 administrator may approve up to two financial institutions 36.36 selected by the state board of investment under section 354B.25, 37.1 subdivision 3, to provide annuity products and custodial 37.2 accounts for those employees listed in section 354D.02, 37.3 subdivision 2, clause (3). Only those financial institutions 37.4 selected by the state board of investment and approved by the 37.5 plan administrator may provide annuity products and custodial 37.6 accounts for those employees listed in section 354D.02, 37.7 subdivision 2, clause (3). 37.8 The state board of investment must periodically review at 37.9 least every three years each financial institution selected. 37.10 The state board of investment may retain consulting services to 37.11 assist in the periodic review, may establish a budget for its 37.12 costs in the periodic review process, and may charge a 37.13 proportional share of those costs to each financial institution 37.14 selected. All contracts must be approved by the state board of 37.15 investment before execution by the Minnesota historical 37.16 society. The state board of investment shall also establish 37.17 policies and procedures under section 11A.04, clause (2), to 37.18 carry out this subdivision. 37.19 Subd. 4. [BENEFIT OWNERSHIP.] The retirement benefits 37.20 provided by the annuity contracts and custodial accounts of the 37.21 individual retirement account plan are held for the benefit of 37.22 plan participants and must be paid according to this chapter and 37.23 the plan document. 37.24 Subd. 5. [INDIVIDUAL RETIREMENT ACCOUNT PLAN 37.25 ADMINISTRATIVE EXPENSES; MINNESOTA HISTORICAL SOCIETY.] (a) The 37.26 reasonable and necessary administrative expenses of the 37.27 individual retirement account plan for those employees 37.28 enumerated in section 354D.02, subdivision 2, clause (3), must 37.29 be paid by plan participants. The plan administrator may charge 37.30 to plan participants purchasing annuity contracts and custodial 37.31 accounts pursuant to subdivision 2, paragraph (a), an 37.32 administrative expenses assessment of a designated amount, not 37.33 to exceed two percent of member and employer contributions, as 37.34 those contributions are made. 37.35 (b) Any administrative expense charge that is not actually 37.36 needed for the administrative expenses of the individual 38.1 retirement account plan must be refunded to member accounts. 38.2 Sec. 6. [EFFECTIVE DATE.] 38.3 Sections 1 to 5 are effective the day following final 38.4 enactment. 38.5 ARTICLE 8 38.6 VOLUNTEER FIREFIGHTER FIRE PREVENTION SERVICE 38.7 Section 1. Minnesota Statutes 1994, section 424A.001, is 38.8 amended by adding a subdivision to read: 38.9 Subd. 8. [FIREFIGHTING SERVICE.] "Firefighting service," 38.10 if the applicable municipality approves for a fire department 38.11 that is a municipal department, or if the contracting 38.12 municipality or municipalities approve for a fire department 38.13 that is an independent nonprofit firefighting corporation, 38.14 includes service rendered by fire prevention personnel. 38.15 Sec. 2. Minnesota Statutes 1994, section 424A.001, is 38.16 amended by adding a subdivision to read: 38.17 Subd. 9. [SEPARATE FROM ACTIVE SERVICE.] "Separate from 38.18 active service" means to cease to perform fire suppression 38.19 duties, to cease to perform fire prevention duties, to cease to 38.20 supervise fire suppression duties, and to cease to supervise 38.21 fire prevention duties. 38.22 Sec. 3. Minnesota Statutes 1994, section 424A.01, is 38.23 amended by adding a subdivision to read: 38.24 Subd. 5. [FIRE PREVENTION PERSONNEL.] (a) If the fire 38.25 department is a municipal department and the applicable 38.26 municipality approves, or if the fire department is an 38.27 independent nonprofit firefighting corporation and the 38.28 contracting municipality or municipalities approve, the fire 38.29 department may employ or otherwise utilize the services of 38.30 persons as volunteer firefighters to perform fire prevention 38.31 duties and to supervise fire prevention activities. 38.32 (b) Personnel serving in fire prevention positions are 38.33 eligible to be members of the applicable volunteer firefighter 38.34 relief association and to qualify for service pension or other 38.35 benefit coverage of the relief association on the same basis as 38.36 fire department personnel who perform fire suppression duties. 39.1 (c) Personnel serving in fire prevention positions also are 39.2 eligible to receive any other benefits under the applicable law 39.3 or practice for services on the same basis as personnel employed 39.4 to perform fire suppression duties. 39.5 Sec. 4. Minnesota Statutes 1994, section 424A.02, 39.6 subdivision 1, is amended to read: 39.7 Subdivision 1. [AUTHORIZATION.] (a) A relief association, 39.8 when its articles of incorporation or bylaws so provide, may pay 39.9 out of the assets of its special fund a service pension to each 39.10 of its members who: (1) separates from active service with the 39.11 fire department; (2) reaches age 50; (3) completes at least five 39.12 years of active service as an active member of the municipal 39.13 fire department to which the relief association is associated; 39.14 (4) completes at least five years of active membership with the 39.15 relief association before separation from active service; and 39.16 (5) complies with any additional conditions as to age, service, 39.17 and membership that are prescribed by the bylaws of the relief 39.18 association. A service pension computed under this section may 39.19 be prorated monthly for fractional years of service, if the 39.20 bylaws or articles of incorporation of the relief association so 39.21 provide. The service pension may be paid whether or not the 39.22 municipality or nonprofit firefighting corporation to which the 39.23 relief association is associated qualifies for fire state aid 39.24 under chapter 69. 39.25 (b) In the case of a member who has completed at least five 39.26 years of active service as an active member of the fire 39.27 department to which the relief association is associated on the 39.28 date that the relief association is established and 39.29 incorporated, the requirement that the member complete at least 39.30 five years of active membership with the relief association 39.31 before separation from active service may be waived by the board 39.32 of trustees of the relief association if the member completes at 39.33 least five years of inactive membership with the relief 39.34 association before the payment of the service pension. During 39.35 the period of inactive membership, the member is not entitled to 39.36 receive disability benefit coverage, is not entitled to receive 40.1 additional service credit towards computation of a service 40.2 pension, and is considered to have the status of a person 40.3 entitled to a deferred service pension under subdivision 7. 40.4 (c) No municipality or nonprofit firefighting corporation 40.5 may delegate the power to take final action in setting a service 40.6 pension or ancillary benefit amount or level to the board of 40.7 trustees of the relief association or to approve in advance a 40.8 service pension or ancillary benefit amount or level equal to 40.9 the maximum amount or level that this chapter would allow rather 40.10 than a specific dollar amount or level. 40.11 (d) No relief association as defined in section 424A.001, 40.12 subdivision 4, may pay a service pension or disability benefit 40.13 to a former member of the relief association if that person has 40.14 not separated from active service with the fire department to 40.15 which the relief association is directly associated. 40.16 For the purposes of this chapter, "to separate from active40.17 service" means to cease to perform fire suppression duties and40.18 to cease to supervise fire suppression duties.40.19 Sec. 5. [EFFECTIVE DATE.] 40.20 Sections 1 to 4 are effective the day following final 40.21 enactment. 40.22 ARTICLE 9 40.23 SERVICE CREDIT DEADLINE EXTENSIONS 40.24 AND PURCHASES 40.25 Section 1. Laws 1995, chapter 252, article 1, section 16, 40.26 is amended to read: 40.27 Sec. 16. [RETROACTIVE PROVISIONS.] 40.28 (a) A teacher who had at least three years of allowable 40.29 service credit under Minnesota Statutes, chapter 354 or 354A, on 40.30 July 1, 1994, and who worked part-time between July 1, 1994, and 40.31 June 30, 1995, may be allowed to make contributions to and 40.32 accrue allowable service credit in the applicable retirement 40.33 fund, as if the teacher had been working full time, as provided 40.34 in Minnesota Statutes, sections 354.66, subdivision 4, and 40.35 354A.094, subdivision 4, for service after July 1, 1994, and 40.36 before June 30, 1995. If a teacher described in this paragraph 41.1 wishes to obtain allowable service credit as if the teacher had 41.2 been working full time for the period from July 1, 1994, to June 41.3 30, 1995, the teacher must: 41.4 (1) make a lump sum payment to the applicable pension fund 41.5 within 60 days after the effective date of this sectionbefore 41.6 August 2, 1996, with respect to the St. Paul teachers retirement 41.7 fund association, or before August 2, 1995, with respect to any 41.8 other teacher retirement plan, of the difference between the 41.9 amount of the employer and employee contributions to the pension 41.10 fund that would have been paid if the teacher had been working 41.11 full time, and that amount that was actually paid for part-time 41.12 service during that period; and 41.13 (2) submit to the association a letter or other document 41.14 from the board of the teacher's employing district stating that 41.15 the board would have agreed to the teacher's participation in 41.16 the part-time mobility program during the 1994-1995 school year 41.17 but for the requirement then in effect that the district make 41.18 the full employer contribution to the retirement fund for 41.19 teachers with 20 or more years of service, based on the 41.20 compensation that would have been paid if the teacher had been 41.21 employed on a full-time basis. 41.22 (b) An employer of a teacher covered by paragraph (a) must 41.23 notify the teacher of the option available under paragraph (a) 41.24 in writing within 30 days of the effective date of this41.25 sectionbefore July 3, 1996, with respect to the St. Paul 41.26 teachers retirement fund association, or before July 3, 1995, 41.27 with respect to any other teacher retirement plan. 41.28 (c) With respect to the St. Paul teachers retirement fund 41.29 association, any payment must include compound interest at an 41.30 annual rate of 8.5 percent from August 3, 1995, to the date on 41.31 which payment is made. 41.32 Sec. 2. [STUDY OF REGIONAL TREATMENT CENTER AND RELATED 41.33 GOVERNMENTAL ENTITY EDUCATIONAL BREAKS-IN-SERVICE.] 41.34 The legislative commission on pensions and retirement shall 41.35 study the topic of the appropriate retirement coverage for 41.36 educational breaks-in-service to be accorded to state employees 42.1 who are employed by a regional treatment center, who terminated 42.2 state employment to undertake additional education with a 42.3 documented mutual expectation of rehiring upon completion of the 42.4 educational period, and who received a state stipend during the 42.5 educational period and to other comparably situated public 42.6 employees. The commission shall attempt to identify the 42.7 actuarial accrued liability associated with granting public 42.8 pension plan allowable service credit for these educational 42.9 break-in-service periods and shall determine the appropriate 42.10 manner of funding that liability. The commission shall report 42.11 the results of its study, including any recommendations in the 42.12 form of draft legislation, by March 1, 1997, to the chair of the 42.13 committee on governmental operations of the house of 42.14 representatives, the chair of the committee on governmental 42.15 operations and veterans of the senate, the chair of the 42.16 committee on ways and means of the house of representatives, and 42.17 the chair of the committee on finance of the senate. 42.18 Sec. 3. [INDEPENDENT SCHOOL DISTRICT NO. 553, NEW YORK 42.19 MILLS; PART-TIME TEACHER RETIREMENT COVERAGE PROGRAM DEADLINE 42.20 EXTENSION.] 42.21 (a) Notwithstanding any provision of Minnesota Statutes, 42.22 section 354.66, to the contrary, the teachers retirement 42.23 association must accept the application for full-time retirement 42.24 coverage filed by independent school district No. 553, New York 42.25 Mills, on or about October 13, 1995, for a person who: 42.26 (1) was born on May 16, 1945; 42.27 (2) was initially hired by the school district in 1968; 42.28 (3) served in the military from school years 1969-1970 to 42.29 1972-1973; and 42.30 (4) began work as a part-time computer technology teacher 42.31 on July 1, 1995. 42.32 A person who meets the requirements of clauses (1) to (4) 42.33 is entitled to full-time teacher retirement association coverage 42.34 under Minnesota Statutes, section 354.66, for the 1995-1996 42.35 school year if all other conditions of that section are met 42.36 beyond the failure of the school district to timely file the 43.1 application. 43.2 (b) A person who meets the requirements of paragraph (a), 43.3 clauses (1) to (4), for teaching services shall pay the 43.4 applicable employee contribution under Minnesota Statutes, 43.5 section 354.42, subdivision 2, on the difference between the 43.6 amount of the person's compensation from which employee 43.7 contributions were actually deducted and the amount of the 43.8 person's full-time equivalent salary under Minnesota Statutes, 43.9 section 354.66, subdivision 4. 43.10 (c) Independent school district No. 553, New York Mills, 43.11 shall pay the applicable employer and additional employer 43.12 contributions under Minnesota Statutes, section 354.42, 43.13 subdivisions 3 and 5, on the person's full-time equivalent 43.14 salary, plus interest at the rate of 8.5 percent. The school 43.15 district shall also pay interest at the rate of 8.5 percent on 43.16 the difference between the employee contributions actually 43.17 deducted from compensation and the amount of the person's 43.18 full-time equivalent salary under paragraph (b). 43.19 (d) The payments under paragraphs (b) and (c) must each be 43.20 made in a lump sum to the teachers retirement association before 43.21 June 30, 1996. If payment is made earlier than June 30, 1996, 43.22 interest must be calculated to the end of the month in which 43.23 payment is made. 43.24 Sec. 4. [INDEPENDENT SCHOOL DISTRICT NO. 200, HASTINGS; 43.25 PART-TIME TEACHER RETIREMENT COVERAGE PROGRAM DEADLINE 43.26 EXTENSION.] 43.27 (a) Notwithstanding any provision of Minnesota Statutes, 43.28 section 354.66, to the contrary, the teachers retirement 43.29 association must accept the application or applications for 43.30 full-time retirement coverage filed by independent school 43.31 district No. 200, Hastings, on or about February 5, 1996, for a 43.32 person who: 43.33 (1) was born on January 11, 1940; 43.34 (2) was initially hired by the school district on August 43.35 26, 1968; and 43.36 (3) was initially accepted by the school board for 44.1 participation in the qualified part-time teacher program under 44.2 Minnesota Statutes, section 354.66, on November 5, 1991. 44.3 A person who meets the requirements of clauses (1) to (3) 44.4 is entitled to full-time teacher retirement association coverage 44.5 under Minnesota Statutes, section 354.66, for the 1992-1993 44.6 through 1995-1996 school years if all other conditions of that 44.7 section are met beyond the failure of the school district to 44.8 timely file the applications. 44.9 (b) If full-time equivalent employee contributions have not 44.10 been received by the teachers retirement association, a person 44.11 who meets the requirements of paragraph (a), clauses (1) to (3), 44.12 for teaching services shall pay the applicable employee 44.13 contribution under Minnesota Statutes, section 354.42, 44.14 subdivision 2, on the difference between the amount of the 44.15 person's compensation from which employee contributions were 44.16 actually deducted and the amount of the person's full-time 44.17 equivalent salary under Minnesota Statutes, section 354.66, 44.18 subdivision 4. 44.19 (c) If full-time equivalent employer and additional 44.20 employer contributions have not been received previously by the 44.21 teachers retirement association, independent school district No. 44.22 200, Hastings, shall pay the applicable employer and additional 44.23 employer contributions under Minnesota Statutes, section 354.42, 44.24 subdivisions 3 and 5, on the difference, if any, between the 44.25 person's full-time equivalent salary and the salary upon which 44.26 contributions were made, plus interest at the rate of 8.5 44.27 percent compounded annually. The school district shall also pay 44.28 interest at the rate of 8.5 percent compounded annually on the 44.29 difference, if any, between the employee contributions actually 44.30 deducted from compensation and the employee contributions based 44.31 on the person's full-time equivalent salary under paragraph (b). 44.32 (d) The payments under paragraphs (b) and (c) must each be 44.33 made in a lump sum to the teachers retirement association before 44.34 June 30, 1996, or before the retirement of a person meeting the 44.35 requirements of paragraph (a), clauses (1) to (3), whichever is 44.36 earlier. If payment is made earlier than June 30, 1996, 45.1 interest must be calculated to the end of the month in which 45.2 payment is made. 45.3 Sec. 5. [MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION; 45.4 ELIGIBILITY IN PART-TIME TEACHING PROGRAM FOR CERTAIN PART-TIME 45.5 TEACHERS.] 45.6 Notwithstanding any provision of Minnesota Statutes 1994, 45.7 section 354A.094, to the contrary, teachers in special school 45.8 district No. 1, Minneapolis, who were granted a part-time 45.9 position under Minnesota Statutes, section 354A.094, after June 45.10 30, 1994, but who were compensated in an amount that exceeded 67 45.11 percent of the compensation rate established by the board for a 45.12 full-time teacher with identical education and experience within 45.13 the district and who applied for and were approved by special 45.14 school district No. 1, Minneapolis, for the 1994-1995 school 45.15 year to participate in the qualified part-time teacher program 45.16 must be allowed to make, by June 30, 1996, the full-time 45.17 employee and employer contribution for the 1994-1995 school year 45.18 and receive service credit from the Minneapolis teachers 45.19 retirement fund association in amounts according to those 45.20 prescribed in Minnesota Statutes, sections 354A.094 and 354A.12. 45.21 Sec. 6. [MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION; 45.22 PURCHASE OF PRIOR SERVICE CREDIT.] 45.23 Subdivision 1. [ELIGIBILITY; FORMER MINNEAPOLIS 45.24 TEACHER.] (a) Notwithstanding Laws 1992, chapter 598, article 6, 45.25 section 19, an eligible person who was: 45.26 (1) born on January 4, 1930; 45.27 (2) employed as a typing teacher in the adult education 45.28 program at Bryant junior high school in Minneapolis in September 45.29 1969; 45.30 (3) employed as a reserve teacher in special school 45.31 district No. 1 from January 1, 1970, until May 30, 1970; and 45.32 (4) employed from June 1, 1970, to 1978, as a business 45.33 education teacher at the occupational skills training center in 45.34 Minneapolis; 45.35 may purchase allowable service credit in the basic program of 45.36 the Minneapolis teachers retirement fund association for the 46.1 period described in paragraph (b) by paying the amount specified 46.2 in subdivision 3. 46.3 (b) The service credit purchase is for the period or 46.4 periods of uncovered eligible service from September 1969 until 46.5 the commencement of Minneapolis teachers retirement association 46.6 fund coverage in 1974 for which membership was mandatory, or for 46.7 which coverage was at the employee's option, unless it can be 46.8 demonstrated that the person described in paragraph (a) waived 46.9 that coverage. 46.10 Subd. 2. [PURCHASE PAYMENT AMOUNT.] (a) To purchase credit 46.11 for prior eligible service under subdivision 1, there must be 46.12 paid to the Minneapolis teachers retirement fund association an 46.13 amount equal to the present value of the amount of the 46.14 additional retirement annuity obtained by purchase of the 46.15 additional service credit. 46.16 (b) Calculation of this amount must be made by the 46.17 executive director of the Minneapolis teachers retirement fund 46.18 association using the applicable preretirement interest rate 46.19 specified in Minnesota Statutes, section 356.215, subdivision 46.20 4d, and the mortality table adopted for the retirement 46.21 association. The calculation must assume retirement at the age 46.22 at which the minimum requirements of the retirement association 46.23 for normal retirement, or retirement with an annuity unreduced 46.24 for retirement at an early age, including Minnesota Statutes, 46.25 section 356.30, are met with the additional service credit 46.26 purchased. 46.27 (c) The person making the purchase must establish in the 46.28 records of the association proof of the service for which the 46.29 purchase of prior service is requested. The manner of the proof 46.30 of service must be in accordance with procedures prescribed by 46.31 the executive director of the retirement association. 46.32 (d) Payment of the amount calculated under this subdivision 46.33 is the obligation of the eligible individual in subdivision 1 46.34 and must be made prior to July 1, 1996, in a lump sum. However, 46.35 the current or former employer of the eligible individual may, 46.36 at its discretion, pay all or any portion of the payment amount 47.1 that exceeds an amount equal to the employee contribution rates 47.2 in effect during the period or periods of prior service applied 47.3 to the actual salary rates in effect during the period or 47.4 periods of prior service, plus interest at the rate of 8.5 47.5 percent per year compounded annually from the date on which the 47.6 contributions would otherwise have been made to the date on 47.7 which the payment is made. If the employer agrees to payments 47.8 under this paragraph, the employee must make the employee 47.9 payments required under this paragraph prior to July 1, 1996. 47.10 If that employee payment is made, the employing unit payment 47.11 under this paragraph must be remitted to the executive director 47.12 of the retirement association within 60 days of receipt by the 47.13 executive director of the employee payments specified under this 47.14 paragraph. 47.15 Subd. 3. [SERVICE CREDIT GRANT.] Service credit for the 47.16 purchase period or periods must be granted to the account of the 47.17 eligible person upon receipt of the purchase payment amount 47.18 specified in subdivision 2. 47.19 Sec. 7. [ELECTION OF PUBLIC EMPLOYEE RETIREMENT 47.20 ASSOCIATION COVERAGE.] 47.21 Subdivision 1. Notwithstanding Minnesota Statutes, section 47.22 353.01, subdivision 2b, clause (14), to the contrary, a Kanabec 47.23 hospital employee born on December 6, 1940, employed by the 47.24 hospital from January 4, 1965, to the present, and a Kanabec 47.25 hospital employee born on October 6, 1942, employed by the 47.26 hospital from September, 1964, to August 1, 1966, and from May, 47.27 1967, to the present, is eligible to make the election under 47.28 subdivision 2. 47.29 Subd. 2. [ELECTION OF COVERAGE.] An eligible employee 47.30 under subdivision 1 is entitled to elect retirement coverage by 47.31 the public employees retirement association general plan. 47.32 Service credit will begin to accrue at the beginning of the pay 47.33 period following the election of plan coverage by the eligible 47.34 employee. The election of coverage must be made on a form 47.35 prescribed by the executive director of the association. The 47.36 election must be made within 60 days after the effective date of 48.1 this section. 48.2 Sec. 8. [REPEALER.] 48.3 Laws 1990, chapter 570, article 13, section 1, subdivision 48.4 5, is repealed. 48.5 Sec. 9. [EFFECTIVE DATE.] 48.6 Sections 1 to 6 and 8 are effective the day following final 48.7 enactment. Section 7 is effective upon approval by the Kanabec 48.8 county board and upon compliance with Minnesota Statutes, 48.9 section 645.021. 48.10 ARTICLE 10 48.11 VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION 48.12 INVESTMENT PERFORMANCE REPORTING 48.13 Section 1. Minnesota Statutes 1995 Supplement, section 48.14 356.219, subdivision 2, is amended to read: 48.15 Subd. 2. [CONTENT AND TIMING OF REPORTS.] (a) The 48.16 following information shall be included in the report required 48.17 by subdivision 1: 48.18 (1) the market value of all investments at the close of the 48.19 reporting period; 48.20 (2) regular payroll-based contributions to the fund; 48.21 (3) other contributions and revenue paid into the fund, 48.22 including, but not limited to, state or local non-payroll-based 48.23 contributions, repaid refunds, and buybacks; 48.24 (4) total benefits paid to members; 48.25 (5) fees paid for investment management services; 48.26 (6) salaries and other administrative expenses paid; and 48.27 (7) total return on investment. 48.28 The report must also include a written statement of the 48.29 investment policy in effect on June 30, 1988, and any investment 48.30 policy changes made subsequently and shall include the effective 48.31 date of each policy change. The information required under this 48.32 subdivision must be reported separately for each investment 48.33 account or investment portfolio included in the pension fund. 48.34 (b) For public pension plans other than volunteer 48.35 firefighters' relief associations governed by sections 69.77 or 48.36 69.771 to 69.775, the information specified in paragraph (a) 49.1 must be provided separately for each quarter for the fiscal 49.2 years of the pension fund ending during calendar years 1989 49.3 through 1991 and on a monthly basis thereafter. For volunteer 49.4 firefighters' relief associations governed by sections 69.77 or 49.5 69.771 to 69.775, the information specified in paragraph (a) 49.6 must be provided separately each quarter. 49.7 (c) Firefighters' relief associations that have assets with 49.8 a market value of less than $300,000 must submit a written 49.9 statement of their current investment policy on or before 49.10 October 1, 1996, must report any subsequent investment policy 49.11 changes, including the effective date of the change, within 90 49.12 days of the change, must begin collecting the required 49.13 information under paragraph (a), clauses (1) to (7), on January 49.14 1, 19961997, and must submit the required information to the 49.15 state auditor on or before October 1, 19971998, and 49.16 subsequently within six months of the end of each fiscal year. 49.17 Other associations must submit the required information through 49.18 fiscal year 1993 to the state auditor on or before October 1, 49.19 1994, and subsequently within six months of the end of each 49.20 fiscal year. 49.21 Sec. 2. Minnesota Statutes 1994, section 356A.06, 49.22 subdivision 4, is amended to read: 49.23 Subd. 4. [ECONOMIC INTEREST STATEMENT.] (a) Each member of 49.24 the governing board of a covered pension plan and the chief 49.25 administrative officer of the plan shall file with the plan a 49.26 statement of economic interest. 49.27 (b) For a covered pension plan other than a plan specified 49.28 in paragraph (c), the statement must contain the information 49.29 required by section 10A.09, subdivision 5, and any other 49.30 information that the fiduciary or the governing board of the 49.31 plan determines is necessary to disclose a reasonably 49.32 foreseeable potential or actual conflict of interest. 49.33 (c) For a covered pension plan governed by sections 69.771 49.34 to 69.776 or a covered pension plan governed by section 69.77 49.35 with assets under $8,000,000, the statement must contain the 49.36 following: 50.1 (1) the person's principal occupation and principal place 50.2 of business; 50.3 (2) whether or not the person has an ownership of or 50.4 interest of ten percent or greater in an investment security 50.5 brokerage business, a real estate sales business, an insurance 50.6 agency, a bank, a savings and loan, or another financial 50.7 institution; and 50.8 (3) any relationship or financial arrangement that can 50.9 reasonably be expected to give rise to a conflict of interest. 50.10 (d) The statement must be filed annually with the chief 50.11 administrative officer of the plan and be available for public 50.12 inspection during regular office hours at the office of the 50.13 pension plan. 50.14 (e) A disclosure form meeting the requirements of the 50.15 federal Investment Advisers Act of 1940, United States Code, 50.16 title 15, sections 80b-1 to 80b-21 as amended, and filed with 50.17 the state board of investment or the pension plan meets the 50.18 requirements of this subdivision. 50.19 (f) The chief administrative officer of each covered 50.20 pension plan, by January 15, annually, shall transmit a copy of 50.21 all statements of economic interest received by the plan under 50.22 this subdivision during the preceding 12 months to the ethical 50.23 practices board. 50.24 Sec. 3. [REVIEW OF INVESTMENT PERFORMANCE ATTRIBUTION 50.25 REPORTING FORMS AND REPORTING PROCESS.] 50.26 (a) On or before February 15, 1997, the special task force 50.27 established in paragraph (b) shall report to the legislature on 50.28 its review of the investment performance attribution reporting 50.29 forms and reporting process as provided in paragraph (d). 50.30 (b) The special task force consists of: 50.31 (1) the chair of the legislative commission on pensions and 50.32 retirement or the chair's designee; 50.33 (2) the vice-chair of the legislative commission on 50.34 pensions and retirement or the vice-chair's designee; 50.35 (3) the chair of the committee on governmental operations 50.36 of the house of representatives or the chair's designee; 51.1 (4) the chair of the committee on governmental operations 51.2 and veterans of the senate or the chair's designee; 51.3 (5) the executive director of the state board of investment 51.4 or the director's designee; 51.5 (6) the state auditor or the auditor's designee; 51.6 (7) two persons who are each a volunteer firefighter member 51.7 of the board of trustees of a volunteer firefighter relief 51.8 association deemed representative of its membership and 51.9 designated by the governing board of the Minnesota area relief 51.10 association coalition; 51.11 (8) two persons who are each a volunteer firefighter member 51.12 of the board of trustees of a volunteer firefighter relief 51.13 association deemed representative of its membership and 51.14 designated by the governing board of the Minnesota state fire 51.15 chiefs association; 51.16 (9) two persons who are each a volunteer firefighter member 51.17 of the board of trustees of a volunteer firefighter relief 51.18 association deemed representative of its membership and 51.19 designated by the governing board of the Minnesota state fire 51.20 department association; 51.21 (10) a person who is a municipal representative on a board 51.22 of trustees of a volunteer firefighters relief association with 51.23 assets under $300,000 as designated by the executive director of 51.24 the league of Minnesota cities; 51.25 (11) a representative of a first class city teacher 51.26 retirement fund association as designated by the chair of the 51.27 legislative commission on pensions and retirement; and 51.28 (12) a representative of a local police or salaried 51.29 firefighter relief association governed by Minnesota Statutes, 51.30 section 69.77 as designated by the chair of the legislative 51.31 commission on pensions and retirement. 51.32 (c) The chair of the special task force is the chair of the 51.33 legislative commission on pensions and retirement or the chair's 51.34 designee and the chair shall establish the meeting schedule and 51.35 topic agenda for the special task force. 51.36 (d) The special task force, at a minimum, shall consider 52.1 the following topics and issues: 52.2 (1) the changes required to simplify the investment 52.3 performance attribution reporting under Minnesota Statutes, 52.4 section 356.219, for smaller local person plans; 52.5 (2) the changes required to include the investment 52.6 performance attribution reporting in the annual financial 52.7 reporting under Minnesota Statutes, section 69.051; 52.8 (3) the changes required to combine the investment 52.9 performance reporting under Minnesota Statutes, section 356.218, 52.10 with the investment performance attribution reporting under 52.11 Minnesota Statutes, section 356.219, and the appropriate entity 52.12 to administer any combined reporting program; and 52.13 (4) any other topics relevant to the investment reporting 52.14 programs under Minnesota Statutes, section 356.218 or 356.219. 52.15 Sec. 4. [EFFECTIVE DATE.] 52.16 This article is effective the day following final enactment.