1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to retirement; public pension plan actuarial 1.3 reporting; various public retirement plans; volunteer 1.4 firefighter relief associations; Minneapolis 1.5 firefighters relief association; modifying actuarial 1.6 cost allocation by the legislative commission on 1.7 pensions and retirement; changing the actuarial value 1.8 of assets, actuarial assumptions, and funding surplus 1.9 recognition method; revising reemployed annuitant 1.10 earnings limitations; adding certain prior 1.11 correctional positions to correctional plan coverage; 1.12 clarifying various former police and fire 1.13 consolidation account merger provisions; authorizing 1.14 certain optional annuity form elections by former 1.15 consolidation account members; revising local 1.16 correctional retirement plan membership eligibility; 1.17 increasing local correctional retirement plan member 1.18 and employer contribution rates; authorizing the 1.19 purchase of nonprofit community-based corporation 1.20 teaching service; expanding investment options for 1.21 employer matching contribution tax sheltered 1.22 annuities; modifying various volunteer firefighter 1.23 relief association benefit and administration 1.24 provisions; modifying judicial pension provision; 1.25 modifying the marriage duration requirement for 1.26 certain Minneapolis firefighter relief association 1.27 survivor benefits; creating additional Minneapolis 1.28 police and firefighter relief association 1.29 postretirement adjustment mechanisms; resolving 1.30 various individual and small group pension problems; 1.31 amending Minnesota Statutes 1998, sections 16A.055, 1.32 subdivision 5; 69.773, subdivision 1; 122A.46, 1.33 subdivision 1, and by adding a subdivision; 136F.45, 1.34 subdivision 1a; 352.115, subdivision 10; 352.15, 1.35 subdivision 1a; 352B.01, subdivision 3, and by adding 1.36 a subdivision; 352D.02, subdivision 1; 352D.05, 1.37 subdivision 3; 352D.06; 352D.09, subdivision 5a; 1.38 353.01, subdivisions 2, 6, 11a, 28, 32, and by adding 1.39 a subdivision; 353.15, subdivision 2; 353.27, 1.40 subdivisions 4 and 12; 353.33, subdivisions 2 and 6; 1.41 353.34, subdivision 1; 353.37, by adding a 1.42 subdivision; 353.64, subdivisions 2, 3, 4, and by 1.43 adding a subdivision; 353.656, subdivisions 1 and 3; 1.44 353.71, subdivision 2; 353B.11, subdivision 3; 354.05, 1.45 subdivisions 2 and 35; 354.091; 354.092, subdivision 1.46 2; 354.093; 354.094, subdivision 1; 354.10, 2.1 subdivision 2; 354.35; 354.44, subdivision 5; 354.46, 2.2 subdivision 2a; 354.47, subdivision 1; 354.48, 2.3 subdivision 6; 354.49, subdivision 1; 354.52, 2.4 subdivisions 3, 4, 4a, and 4b; 354.63, subdivision 2; 2.5 354A.31, subdivisions 3 and 3a; 354B.23, subdivision 2.6 5a; 354C.12, subdivision 1a; 354C.165; 356.215, 2.7 subdivisions 1, 2, and 4d; 356.30, subdivision 1; 2.8 356A.01, subdivision 8; 356A.02; 356A.06, by adding a 2.9 subdivision; 423B.01; 424A.001, subdivision 9; 2.10 424A.02, subdivisions 3, 7, 9, 13, and by adding a 2.11 subdivision; 424A.04, subdivision 1; and 424A.05, 2.12 subdivision 3; Minnesota Statutes 1999 Supplement, 2.13 sections 3.85, subdivision 12; 69.021, subdivision 7; 2.14 136F.48; 352.1155, subdivisions 1 and 4; 353.01, 2.15 subdivision 10; 353.64, subdivision 1; 353E.02; 2.16 353E.03; 353F.02, subdivision 5; 354.445; 354.536, 2.17 subdivision 1; 354A.101, subdivision 1; 356.215, 2.18 subdivision 4g; 356.24, subdivisions 1, and 1b; and 2.19 423A.02, subdivisions 1b, 4, and 5; proposing coding 2.20 for new law in Minnesota Statutes, chapters 69; 352; 2.21 353; 354; 354A; 356; 423B; 424B; repealing Minnesota 2.22 Statutes 1998, sections 353.024; 354.52, subdivision 2.23 2; 354A.31, subdivision 3a; and 424A.02, subdivision 2.24 11; Minnesota Statutes 1999 Supplement, sections 2.25 136F.48; 352.1155, subdivisions 1 and 4; 354.445; 2.26 356.24, subdivision 1a; and 356.61. 2.27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.28 ARTICLE 1 2.29 ACTUARIAL ASSET VALUE CHANGE, 2.30 ACTUARIAL ASSUMPTION CHANGES, 2.31 ACTUARIAL METHOD CHANGES, AND 2.32 ACTUARIAL REPORTING COST ALLOCATION CHANGES 2.33 Section 1. Minnesota Statutes 1999 Supplement, section 2.34 3.85, subdivision 12, is amended to read: 2.35 Subd. 12. [ALLOCATION OF ACTUARIAL COST.] (a) The 2.36 commission shall assess each retirement plan specified in 2.37 subdivision 11, paragraph (b), its appropriate portion of the 2.38 compensation paid to the actuary retained by the commission for 2.39 the actuarial valuation calculations, quadrennial projection 2.40 valuations, and quadrennial experience studies. The total 2.41 assessment is 100 percent of the amount of contract compensation 2.42 for the actuarial consulting firm retained by the commission for 2.43 actuarial valuation calculations, includingtheany public 2.44 employees police and fire plan consolidation accounts of the 2.45 public employees retirement association established before March 2.46 2, 1999, for which the municipality declined merger under 2.47 section 353.665, subdivision 1, or established after March 1, 2.48 1999, annual experience data collection and processing, and 3.1 quadrennial experience studies and quadrennial projection 3.2 valuations. 3.3 The portion of the total assessment payable by each 3.4 retirement system or pension plan must be determinedas follows:3.5(1) Each pension plan specified in subdivision 11,3.6paragraph (b), clauses (1) to (14), must pay the following3.7indexed amount based on its total active, deferred, inactive,3.8and benefit recipient membership:3.9up to 2,000 members, inclusive$2.55 per member3.102,001 through 10,000 members$1.13 per member3.11over 10,000 members$0.11 per member3.12The amount specified is applicable for the assessment of3.13the July 1, 1991, to June 30, 1992, fiscal year actuarial3.14compensation amounts. For the July 1, 1992, to June 30, 1993,3.15fiscal year and subsequent fiscal year actuarial compensation3.16amounts, the amount specified must be increased at the same3.17percentage increase rate as the implicit price deflator for3.18state and local government purchases of goods and services for3.19the 12-month period ending with the first quarter of the3.20calendar year following the completion date for the actuarial3.21valuation calculations, as published by the federal Department3.22of Commerce, and rounded upward to the nearest full cent.3.23(2) The total per-member portion of the allocation must be3.24determined, and that total per-member amount must be subtracted3.25from the total amount for allocation. Of the remainder dollar3.26amount, the following per-retirement system and per-pension plan3.27charges must be determined and the charges must be paid by the3.28system or plan:3.29(i) 37.87 percent is the total additional per-retirement3.30system charge, of which one-seventh must be paid by each3.31retirement system specified in subdivision 11, paragraph (b),3.32clauses (1), (2), (6), (7), (9), (10), and (11).3.33(ii) 62.13 percent is the total additional per-pension plan3.34charge, of which one-fourteenth must be paid by each pension3.35plan specified in subdivision 11, paragraph (b), clauses (1) to3.36(14)based on each plan's proportion of the actuarial services 4.1 required, as determined by the commission's retained actuary, to 4.2 complete the actuarial valuation calculations, annual experience 4.3 data collection and processing, and quadrennial experience 4.4 studies for all plans. 4.5 (b) The assessment must be made within 30 days following 4.6 the completion of the actuarial valuation calculations andthe4.7 applicable experience analysis and must be reported to the 4.8 executive director of the legislative commission on pensions and 4.9 retirement and to the chief administrative officers of the 4.10 applicable retirement plans. The amount of the assessment is 4.11 appropriated from the retirement fund applicable to the 4.12 retirement plan. Receipts from assessments must be transmitted 4.13 to the executive director of the legislative commission on 4.14 pensions and retirement and must be deposited in the state 4.15 treasury and credited to the general fund. 4.16 Sec. 2. Minnesota Statutes 1998, section 16A.055, 4.17 subdivision 5, is amended to read: 4.18 Subd. 5. [RETIREMENT FUND REPORTING.] (a) The commissioner 4.19 may not require a public retirement fund to use financial or 4.20 actuarial reporting practices or procedures different from those 4.21 required by section 356.20 or 356.215. 4.22 (b) The commissioner may contract with the consulting 4.23 actuary retained by the legislative commission on pensions and 4.24 retirement for the preparation of quadrennial projection 4.25 valuations as required under section 356.215, subdivisions 2 and 4.26 2a. The initial projection valuation under this paragraph, if 4.27 any, is due on May 1, 2003, and subsequent projection valuations 4.28 are due on May 1 each fourth year thereafter. The commissioner 4.29 of finance shall assess the applicable statewide and major local 4.30 retirement plan or plans the cost of the quadrennial projection 4.31 valuation. 4.32 Sec. 3. Minnesota Statutes 1998, section 356.215, 4.33 subdivision 1, is amended to read: 4.34 Subdivision 1. [DEFINITIONS.] (a) For the purposes of 4.35 sections 3.85 and 356.20 to 356.23, each of thefollowingterms 4.36 in the following paragraphs have the meaning given:. 5.1(1)(b) "Actuarial valuation" means a set of calculations 5.2 prepared by the actuary retained by the legislative commission 5.3 on pensions and retirement if so required under section 3.85, or 5.4 otherwise, by an approved actuary, to determine the normal cost 5.5 and the accrued actuarial liabilities of a benefit plan, 5.6 according to the entry age actuarial cost method and based upon 5.7 stated assumptions including, but not limited to rates of 5.8 interest, mortality, salary increase, disability, withdrawal, 5.9 and retirement and to determine the payment necessary to 5.10 amortize over a stated period any unfunded accrued actuarial 5.11 liability disclosed as a result of the actuarial valuation of 5.12 the benefit plan. 5.13(2)(c) "Approved actuary" means a person who is regularly 5.14 engaged in the business of providing actuarial services and who 5.15 has at least 15 years of service to major public employee 5.16 pension or retirement funds or who is a fellow in the society of 5.17 actuaries. 5.18(3)(d) "Entry age actuarial cost method" means an 5.19 actuarial cost method under which the actuarial present value of 5.20 the projected benefits of each individual currently covered by 5.21 the benefit plan and included in the actuarial valuation is 5.22 allocated on a level basis over the service of the individual if 5.23 the benefit plan is governed by section 69.773 or over the 5.24 earnings of the individual if the benefit plan is governed by 5.25 any other law between the entry age and the assumed exit age, 5.26 with the portion of this actuarial present value which is 5.27 allocated to the valuation year to be the normal cost and the 5.28 portion of this actuarial present value not provided for at the 5.29 valuation date by the actuarial present value of future normal 5.30 costs to be the actuarial accrued liability, with aggregation in 5.31 the calculation process to be the sum of the calculated result 5.32 for each covered individual and with recognition given to any 5.33 different benefit formulas which may apply to various periods of 5.34 service. 5.35(4)(e) "Experience study" means a report providing 5.36 experience data and an actuarial analysis of the adequacy of the 6.1 actuarial assumptions on which actuarial valuations are based. 6.2(5)(f) "Current assets" means: 6.3 (1) for the July 1, 1999, actuarial valuation, the value of 6.4 all assets at cost, including realized capital gains or losses, 6.5 plus one-third of any unrealized capital gains or losses.; 6.6 (2) for the July 1, 2000, actuarial valuation, the market 6.7 value of all assets as of June 30, 2000, reduced by: 6.8 (i) 60 percent of the difference between the market value 6.9 of all assets as of June 30, 1999, and the actuarial value of 6.10 assets used in the July 1, 1999, actuarial valuation, and 6.11 (ii) 80 percent of the difference between the actual net 6.12 change in the market value of assets between June 30, 1999, and 6.13 June 30, 2000, and the computed increase in the market value of 6.14 assets between June 30, 1999, and June 30, 2000, if the assets 6.15 had increased at the percentage preretirement interest rate 6.16 assumption used in the July 1, 1999, actuarial valuation; 6.17 (3) for the July 1, 2001, actuarial valuation, the market 6.18 value of all assets as of June 30, 2001, reduced by: 6.19 (i) 30 percent of the difference between the market value 6.20 of all assets as of June 30, 1999, and the actuarial value of 6.21 assets used in the July 1, 1999, actuarial valuation; 6.22 (ii) 60 percent of the difference between the actual net 6.23 change in the market value of assets between June 30, 1999, and 6.24 June 30, 2000, and the computed increase in the market value of 6.25 assets between June 30, 1999, and June 30, 2000, if the assets 6.26 had increased at the percentage preretirement interest rate 6.27 assumption used in the July 1, 1999, actuarial valuation; and 6.28 (iii) 80 percent of the difference between the actual net 6.29 change in the market value of assets between June 30, 2000, and 6.30 June 30, 2001, and the computed increase in the market value of 6.31 assets between June 30, 2000, and June 30, 2001, if the assets 6.32 had increased at the percentage preretirement interest rate 6.33 assumption used in the July 1, 2000, actuarial valuation; 6.34 (4) for the July 1, 2002, actuarial valuation, the market 6.35 value of all assets as of June 30, 2002, reduced by: 6.36 (i) ten percent of the difference between the market value 7.1 of all assets as of June 30, 1999, and the actuarial value of 7.2 assets used in the July 1, 1999, actuarial valuation; 7.3 (ii) 40 percent of the difference between the actual net 7.4 change in the market value of assets between June 30, 1999, and 7.5 June 30, 2000, and the computed increase in the market value of 7.6 assets between June 30, 1999, and June 30, 2000, if the assets 7.7 had increased at the percentage preretirement interest rate 7.8 assumption used in the July 1, 1999, actuarial valuation; 7.9 (iii) 60 percent of the difference between the actual net 7.10 change in the market value of assets between June 30, 2000, and 7.11 June 30, 2001, and the computed increase in the market value of 7.12 assets between June 30, 2000, and June 30, 2001, if the assets 7.13 had increased at the percentage preretirement interest rate 7.14 assumption used in the July 1, 2000, actuarial valuation; and 7.15 (iv) 80 percent of the difference between the actual net 7.16 change in the market value of assets between June 30, 2001, and 7.17 June 30, 2002, and the computed increase in the market value of 7.18 assets between June 30, 2001, and June 30, 2002, if the assets 7.19 had increased at the percentage preretirement interest rate 7.20 assumption used in the July 1, 2001, actuarial valuation; or 7.21 (5) for any actuarial valuation after July 1, 2002, the 7.22 market value of all assets as of the preceding June 30, reduced 7.23 by: 7.24 (i) 20 percent of the difference between the actual net 7.25 change in the market value of assets between the June 30 that 7.26 occurred three years earlier and the June 30 that occurred four 7.27 years earlier and the computed increase in the market value of 7.28 assets over that fiscal year period if the assets had increased 7.29 at the percentage preretirement interest rate assumption used in 7.30 the actuarial valuation for the July 1 that occurred four years 7.31 earlier; 7.32 (ii) 40 percent of the difference between the actual net 7.33 change in the market value of assets between the June 30 that 7.34 occurred two years earlier and the June 30 that occurred three 7.35 years earlier and the computed increase in the market value of 7.36 assets over that fiscal year period if the assets had increased 8.1 at the percentage preretirement interest rate assumption used in 8.2 the actuarial valuation for the July 1 that occurred three years 8.3 earlier; 8.4 (iii) 60 percent of the difference between the actual net 8.5 change in the market value of assets between the June 30 that 8.6 occurred one year earlier and the June 30 that occurred two 8.7 years earlier and the computed increase in the market value of 8.8 assets over that fiscal year period if the assets had increased 8.9 at the percentage preretirement interest rate assumption used in 8.10 the actuarial valuation for the July 1 that occurred two years 8.11 earlier; and 8.12 (iv) 80 percent of the difference between the actual net 8.13 change in the market value of assets between the immediately 8.14 prior June 30 and the June 30 that occurred one year earlier and 8.15 the computed increase in the market value of assets over that 8.16 fiscal year period if the assets had increased at the percentage 8.17 preretirement interest rate assumption used in the actuarial 8.18 valuation for the July 1 that occurred one year earlier. 8.19(6)(g) "Unfunded actuarial accrued liability" means the 8.20 total current and expected future benefit obligations, reduced 8.21 by the sum of current assets and the present value of future 8.22 normal costs. 8.23(7)(h) "Pension benefit obligation" means the actuarial 8.24 present value of credited projected benefits, determined as the 8.25 actuarial present value of benefits estimated to be payable in 8.26 the future as a result of employee service attributing an equal 8.27 benefit amount, including the effect of projected salary 8.28 increases and any step rate benefit accrual rate differences, to 8.29 each year of credited and expected future employee service. 8.30 Sec. 4. Minnesota Statutes 1998, section 356.215, 8.31 subdivision 2, is amended to read: 8.32 Subd. 2. [REQUIREMENTS.] (a) It is the policy of the 8.33 legislature that it is necessary and appropriate to determine 8.34 annually the financial status of tax supported retirement and 8.35 pension plans for public employees. To achieve this goal,: 8.36 (1) the legislative commission on pensions and retirement 9.1 shall have prepared by the actuary retained by the commission 9.2 annual actuarial valuations of the retirement plans enumerated 9.3 in section 3.85, subdivision 11, paragraph (b), and quadrennial 9.4 experience studies of the retirement plans enumerated in section 9.5 3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7),; 9.6 and 9.7 (2) the commissioner of finance may have prepared by the 9.8 actuary retained by the commission, two years after each set of 9.9 quadrennial experience studies, quadrennial projection 9.10 valuations of at least one of the retirement plans enumerated in 9.11 section 3.85, subdivision 11, paragraph (b), for whichitthe 9.12 commissioner determines that the analysis may be beneficial. 9.13 (b) The governing or managing board or administrative 9.14 officials of each public pension and retirement fund or plan 9.15 enumerated in section 356.20, subdivision 2, clauses (9), (10), 9.16 and (12), shall have prepared by an approved actuary annual 9.17 actuarial valuations of their respective funds as provided in 9.18 this section. This requirement also applies to any fund that is 9.19 the successor to any organization enumerated in section 356.20, 9.20 subdivision 2, or to the governing or managing board or 9.21 administrative officials of any newly formed retirement fund or 9.22 association operating under the control or supervision of any 9.23 public employee group, governmental unit, or institution 9.24 receiving a portion of its support through legislative 9.25 appropriations, and any local police or fire fund coming within 9.26 the provisions of section 356.216. 9.27(b)Subd. 2a. [PROJECTION VALUATION REQUIREMENTS.] A 9.28 quadrennial projection valuation required underparagraph9.29(a)subdivision 2 is intended to serve as an additional 9.30 analytical tool with which policy makers may assess the future 9.31 funding status of public plans through forecasting and testing 9.32 various potential outcomes over time if certain plan assumptions 9.33 or valuation methods were to be modified. In consultation with 9.34the executive director of the legislative commission on pensions9.35and retirement,the retirement fund directors, the state 9.36 economist, the state demographer, the commissioner of finance, 10.1 and the commissioner of employee relations, the actuary retained 10.2 by the legislative commission on pensions and retirement shall 10.3 perform the quadrennial projection valuations on behalf of the 10.4 commissioner of finance, testing future implications for plan 10.5 funding by modifying assumptions and methods currently in 10.6 place. The commission-retained actuary shall provide advice to 10.7 thecommissioncommissioner as to the periods over which such 10.8 projections should be made, the nature and scope of the 10.9 scenarios to be analyzed, and the measures of funding status to 10.10 be employed, and shall report the results of these analyses in 10.11 the same manner as for quadrennial experience studies. 10.12 Sec. 5. Minnesota Statutes 1998, section 356.215, 10.13 subdivision 4d, is amended to read: 10.14 Subd. 4d. [INTEREST AND SALARY ASSUMPTIONS.] (a) The 10.15 actuarial valuation must use the applicable following 10.16 preretirement interest assumption and the applicable following 10.17 postretirement interest assumption: 10.18 preretirement postretirement 10.19 interest rate interest rate 10.20 plan assumption assumption 10.21 general state employees 10.22 retirement plan 8.5%5.06.0% 10.23 correctional state employees 10.24 retirement plan 8.55.06.0 10.25 state patrol retirement plan 8.55.06.0 10.26 legislators retirement plan 8.55.06.0 10.27 elective state officers 10.28 retirement plan 8.55.06.0 10.29 judges retirement plan 8.55.06.0 10.30 general public employees 10.31 retirement plan 8.55.06.0 10.32 public employees police and fire 10.33 retirement plan 8.55.06.0 10.34 local government correctional 10.35 service retirement plan 8.55.06.0 10.36 teachers retirement plan 8.55.06.0 10.37 Minneapolis employees 10.38 retirement plan 6.0 5.0 10.39 Duluth teachers retirement plan 8.5 8.5 10.40 Minneapolis teachers retirement 10.41 plan 8.5 8.5 10.42 St. Paul teachers retirement 10.43 plan 8.5 7.5 10.44 Minneapolis police relief 10.45 association 6.0 6.0 10.46 other local police relief 10.47 associations 5.0 5.0 10.48 Minneapolis fire department 10.49 relief association 6.0 6.0 10.50 other local salaried firefighter 10.51 relief associations 5.0 5.0 10.52 local monthly benefit volunteer 10.53 firefighter relief associations 5.0 5.0 11.1 (b) The actuarial valuation must use the applicable 11.2 following single rate future salary increase assumption or the 11.3 applicable following graded rate future salary increase 11.4 assumption: 11.5 (1) single rate future salary increase assumption 11.6 future salary 11.7 plan increase assumption 11.8 legislators retirement plan 5.0% 11.9 elective state officers retirement 11.10 plan 5.0 11.11 judges retirement plan 5.0 11.12Minneapolis employees retirement plan4.011.13 Minneapolis police relief association 4.0 11.14 other local police relief associations 3.5 11.15 Minneapolis fire department relief 11.16 association 4.0 11.17 other local salaried firefighter relief 11.18 associations 3.5 11.19 (2) modified single rate future salary increase assumption 11.20 future salary 11.21 plan increase assumption 11.22 Minneapolis employees prior calendar year amount 11.23 retirement plan increased by 1.0198 percent 11.24 to prior fiscal year date 11.25 and by 4.0 percent annually 11.26 for each future year 11.27 (3) select and ultimate future salary increase assumption 11.28 or graded rate future salary increase assumption 11.29 future salary 11.30 plan increase assumption 11.31 general state employees select calculation and 11.32 retirement plan assumption A 11.33 correctional state employees 11.34 retirement plan assumptionAH 11.35 state patrol retirement plan assumptionAH 11.36 general public employees select calculation and 11.37 retirement plan assumption B 11.38 public employees police and fire 11.39 fund retirement plan assumption C 11.40 local government correctional service 11.41 retirement plan assumptionCH 11.42 teachers retirement plan assumption D 11.43 Duluth teachers retirement plan assumption E 11.44 Minneapolis teachers retirement plan assumption F 11.45 St. Paul teachers retirement plan assumption G 11.46 11.47 select calculation: 11.48 during the ten-year select period, 0.2 percent is 11.49 multiplied by the result of ten minus T, where T is 11.50 the number of completed years of service, and is added 11.51 to the applicable future salary increase assumption. 11.52 11.53 future salary increase assumption: 11.54 11.55 age A B C D E F G H 11.56 167.2500%8.71% 11.50%7.25%8.00% 7.50% 7.25% 11.57 6.95 6.95 8.20 7.7500 11.58 177.25008.7111.507.258.00 7.50 7.25 11.59 6.90 6.90 8.15 7.7500 11.60 187.25008.7011.507.258.00 7.50 7.25 11.61 6.85 6.85 8.10 7.7500 12.1 197.25008.7011.507.258.00 7.50 7.25 12.2 6.80 6.80 8.05 7.7500 12.3 207.25007.7011.507.258.00 7.50 7.25 12.4 6.75 6.75 8.00 7.7500 12.5 217.14547.7011.507.258.00 7.50 7.25 12.6 6.70 6.70 7.95 7.1454 12.7 227.10947.7011.007.258.00 7.50 7.25 12.8 6.65 6.65 7.90 7.0725 12.9 247.03637.7010.007.157.80 7.30 7.20 12.10 6.66 6.55 7.80 7.0363 12.11 257.00007.609.507.107.70 7.20 7.15 12.12 6.50 6.50 7.75 7.0000 12.13 267.00007.519.207.057.60 7.10 7.10 12.14 6.45 6.45 7.70 7.0000 12.15 277.00007.398.907.007.50 7.00 7.05 12.16 6.40 6.40 7.65 7.0000 12.17 287.00007.308.607.007.40 6.90 7.00 12.18 6.35 6.35 7.60 7.0000 12.19 297.00007.208.307.007.30 6.80 6.95 12.20 6.30 6.30 7.55 7.0000 12.21 307.00007.208.007.007.20 6.70 6.90 12.22 6.25 6.30 7.50 7.0000 12.23 317.00007.107.807.007.10 6.60 6.85 12.24 6.20 6.25 7.45 7.0000 12.25 327.00007.107.607.007.00 6.50 6.80 12.26 6.15 6.21 7.40 7.0000 12.27 337.00007.007.407.006.90 6.40 6.75 12.28 6.10 6.17 7.30 7.0000 12.29 347.00007.007.207.006.80 6.30 6.70 12.30 6.05 6.09 7.10 7.0000 12.31 357.00006.907.00 7.00 6.70 6.20 6.65 12.32 6.00 6.05 7.0000 12.33 366.90196.806.807.006.60 6.10 6.60 12.34 6.95 6.01 6.85 6.9019 12.35 376.80746.706.607.006.50 6.00 6.55 12.36 5.90 5.97 6.70 6.8074 12.37 386.71256.606.406.906.40 5.90 6.50 12.38 5.85 5.93 6.55 6.7125 12.39 396.60546.506.206.806.30 5.80 6.40 12.40 5.80 5.89 6.40 6.6054 12.41 406.50006.406.006.706.20 5.70 6.30 12.42 5.75 5.85 6.25 6.5000 12.43 416.35406.305.906.606.10 5.60 6.20 12.44 5.70 5.81 6.10 6.3540 12.45 426.20876.305.806.506.00 5.50 6.10 12.46 5.65 5.77 5.95 6.2087 12.47 436.06226.305.706.355.90 5.45 6.00 12.48 5.60 5.73 5.80 6.0622 12.49 445.90486.205.606.205.80 5.40 5.90 12.50 5.55 5.69 5.65 5.9048 12.51 455.75006.205.506.055.70 5.35 5.80 12.52 5.50 5.65 5.50 5.7500 12.53 465.69406.095.455.905.60 5.30 5.70 12.54 5.45 5.62 5.45 5.6940 12.55 475.63756.005.405.755.50 5.25 5.65 12.56 5.40 5.59 5.40 5.6375 12.57 485.58225.905.355.705.45 5.20 5.60 12.58 5.35 5.56 5.35 5.5822 12.59 495.54055.805.305.655.40 5.15 5.55 12.60 5.30 5.53 5.30 5.5404 12.61 505.50005.705.255.605.35 5.10 5.50 12.62 5.25 5.50 5.25 5.5000 12.63 515.43845.705.255.555.30 5.05 5.45 12.64 5.20 5.45 5.20 5.4384 12.65 525.37765.705.255.505.25 5.00 5.40 12.66 5.15 5.40 5.15 5.3776 12.67 535.31675.705.255.455.25 5.00 5.35 12.68 5.10 5.35 5.10 5.3167 12.69 545.28265.705.255.405.25 5.00 5.30 12.70 5.05 5.30 5.05 5.2826 12.71 555.25005.705.255.355.25 5.00 5.25 13.1 5.00 5.25 5.00 5.2500 13.2 565.25005.705.255.305.25 5.00 5.25 13.3 5.00 5.20 5.00 5.2500 13.4 575.25005.705.255.255.25 5.00 5.25 13.5 5.00 5.15 5.00 5.2500 13.6 585.25005.705.255.255.25 5.00 5.25 13.7 5.00 5.10 5.00 5.2500 13.8 595.25005.705.255.255.25 5.00 5.25 13.9 5.00 5.05 5.00 5.2500 13.10 605.25005.00 5.255.255.25 5.00 5.25 13.11 5.00 5.00 5.2500 13.12 615.25005.00 5.255.255.25 5.00 5.25 13.13 5.00 5.00 5.2500 13.14 625.25005.00 5.255.255.25 5.00 5.25 13.15 5.00 5.00 5.2500 13.16 635.25005.00 5.255.255.25 5.00 5.25 13.17 5.00 5.00 5.2500 13.18 645.25005.00 5.255.255.25 5.00 5.25 13.19 5.00 5.00 5.2500 13.20 655.25005.00 5.255.255.25 5.00 5.25 13.21 5.00 5.00 5.2500 13.22 665.25005.00 5.255.255.25 5.00 5.25 13.23 5.00 5.00 5.2500 13.24 675.25005.00 5.255.255.25 5.00 5.25 13.25 5.00 5.00 5.2500 13.26 685.25005.00 5.255.255.25 5.00 5.25 13.27 5.00 5.00 5.2500 13.28 695.25005.00 5.255.255.25 5.00 5.25 13.29 5.00 5.00 5.2500 13.30 705.25005.00 5.255.255.25 5.00 5.25 13.31 5.00 5.00 5.2500 13.32 71 5.00 5.00 5.00 13.33 (c) The actuarial valuation must use the applicable 13.34 following payroll growth assumption for calculating the 13.35 amortization requirement for the unfunded actuarial accrued 13.36 liability where the amortization retirement is calculated as a 13.37 level percentage of an increasing payroll: 13.38 payroll growth 13.39 plan assumption 13.40 general state employees retirement plan 5.00% 13.41 correctional state employees retirement plan 5.00 13.42 state patrol retirement plan 5.00 13.43 legislators retirement plan 5.00 13.44 elective state officers retirement plan 5.00 13.45 judges retirement plan 5.00 13.46 general public employees retirement plan 6.00 13.47 public employees police and fire 13.48 retirement plan 6.00 13.49 local government correctional service 13.50 retirement plan 6.00 13.51 teachers retirement plan 5.00 13.52 Duluth teachers retirement plan 5.00 13.53 Minneapolis teachers retirement plan 5.00 13.54 St. Paul teachers retirement plan 5.00 13.55 Sec. 6. Minnesota Statutes 1999 Supplement, section 13.56 356.215, subdivision 4g, is amended to read: 13.57 Subd. 4g. [AMORTIZATION CONTRIBUTIONS.] (a) In addition to 13.58 the exhibit indicating the level normal cost, the actuarial 13.59 valuation must contain an exhibit indicating the additional 14.1 annual contribution sufficient to amortize the unfunded 14.2 actuarial accrued liability. For funds governed by chapters 3A, 14.3 352, 352B, 352C, 353, 354, 354A, and 490, the additional 14.4 contribution must be calculated on a level percentage of covered 14.5 payroll basis by the established date for full funding in effect 14.6 when the valuation is prepared. For funds governed by chapter 14.7 3A, sections 352.90 through 352.951, chapters 352B, 352C, 14.8 sections 353.63 through 353.68, and chapters 353C, 354A, and 14.9 490, the level percent additional contribution must be 14.10 calculated assuming annual payroll growth of 6.5 percent. For 14.11 funds governed by sections 352.01 through 352.86 and chapter 14.12 354, the level percent additional contribution must be 14.13 calculated assuming an annual payroll growth of five percent. 14.14 For the fund governed by sections 353.01 through 353.46, the 14.15 level percent additional contribution must be calculated 14.16 assuming an annual payroll growth of six percent. For all other 14.17 funds, the additional annual contribution must be calculated on 14.18 a level annual dollar amount basis. 14.19 (b) For any fund other than the Minneapolis employees 14.20 retirement fund, after the first actuarial valuation date 14.21 occurring after June 1, 1989, if there has not been a change in 14.22 the actuarial assumptions used for calculating the actuarial 14.23 accrued liability of the fund, a change in the benefit plan 14.24 governing annuities and benefits payable from the fund, a change 14.25 in the actuarial cost method used in calculating the actuarial 14.26 accrued liability of all or a portion of the fund, or a 14.27 combination of the three, which change or changes by themselves 14.28 without inclusion of any other items of increase or decrease 14.29 produce a net increase in the unfunded actuarial accrued 14.30 liability of the fund, the established date for full funding for 14.31 the first actuarial valuation made after June 1, 1989, and each 14.32 successive actuarial valuation is the first actuarial valuation 14.33 date occurring after June 1, 2020. 14.34 (c) For any fund or plan other than the Minneapolis 14.35 employees retirement fund, after the first actuarial valuation 14.36 date occurring after June 1, 1989, if there has been a change in 15.1 any or all of the actuarial assumptions used for calculating the 15.2 actuarial accrued liability of the fund, a change in the benefit 15.3 plan governing annuities and benefits payable from the fund, a 15.4 change in the actuarial cost method used in calculating the 15.5 actuarial accrued liability of all or a portion of the fund, or 15.6 a combination of the three, and the change or changes, by 15.7 themselves and without inclusion of any other items of increase 15.8 or decrease, produce a net increase in the unfunded actuarial 15.9 accrued liability in the fund, the established date for full 15.10 funding must be determined using the following procedure: 15.11 (i) the unfunded actuarial accrued liability of the fund 15.12 must be determined in accordance with the plan provisions 15.13 governing annuities and retirement benefits and the actuarial 15.14 assumptions in effect before an applicable change; 15.15 (ii) the level annual dollar contribution or level 15.16 percentage, whichever is applicable, needed to amortize the 15.17 unfunded actuarial accrued liability amount determined under 15.18 item (i) by the established date for full funding in effect 15.19 before the change must be calculated using the interest 15.20 assumption specified in subdivision 4d in effect before the 15.21 change; 15.22 (iii) the unfunded actuarial accrued liability of the fund 15.23 must be determined in accordance with any new plan provisions 15.24 governing annuities and benefits payable from the fund and any 15.25 new actuarial assumptions and the remaining plan provisions 15.26 governing annuities and benefits payable from the fund and 15.27 actuarial assumptions in effect before the change; 15.28 (iv) the level annual dollar contribution or level 15.29 percentage, whichever is applicable, needed to amortize the 15.30 difference between the unfunded actuarial accrued liability 15.31 amount calculated under item (i) and the unfunded actuarial 15.32 accrued liability amount calculated under item (iii) over a 15.33 period of 30 years from the end of the plan year in which the 15.34 applicable change is effective must be calculated using the 15.35 applicable interest assumption specified in subdivision 4d in 15.36 effect after any applicable change; 16.1 (v) the level annual dollar or level percentage 16.2 amortization contribution under item (iv) must be added to the 16.3 level annual dollar amortization contribution or level 16.4 percentage calculated under item (ii); 16.5 (vi) the period in which the unfunded actuarial accrued 16.6 liability amount determined in item (iii) is amortized by the 16.7 total level annual dollar or level percentage amortization 16.8 contribution computed under item (v) must be calculated using 16.9 the interest assumption specified in subdivision 4d in effect 16.10 after any applicable change, rounded to the nearest integral 16.11 number of years, but not to exceed 30 years from the end of the 16.12 plan year in which the determination of the established date for 16.13 full funding using the procedure set forth in this clause is 16.14 made and not to be less than the period of years beginning in 16.15 the plan year in which the determination of the established date 16.16 for full funding using the procedure set forth in this clause is 16.17 made and ending by the date for full funding in effect before 16.18 the change; and 16.19 (vii) the period determined under item (vi) must be added 16.20 to the date as of which the actuarial valuation was prepared and 16.21 the date obtained is the new established date for full funding. 16.22 (d) For the Minneapolis employees retirement fund, the 16.23 established date for full funding is June 30, 2020. 16.24 (e) For thefollowingretirement plans for which the annual 16.25 actuarial valuation indicates an excess of valuation assets over 16.26 the actuarial accrued liability, the valuation assets in excess 16.27 of the actuarial accrued liability must be recognizedin the16.28following manner:16.29(1) the public employees retirement association police and16.30fire plan, the valuation assets in excess of the actuarial16.31accrued liability serve to reduceas a reduction in the current 16.32 contribution requirements by an amount equal to the amortization 16.33 of the excess expressed as a level percentage of pay over a 16.34 30-year period beginning anew with each annual actuarial 16.35 valuation of the plan; and16.36(2) the correctional employees retirement plan of the17.1Minnesota state retirement system, and the state patrol17.2retirement plan, an excess of valuation assets over actuarial17.3accrued liability must be amortized in the same manner over the17.4same period as an unfunded actuarial accrued liability but must17.5serve to reduce the required contribution instead of increasing17.6it. 17.7 Sec. 7. [EFFECTIVE DATE.] 17.8 (a) Section 1 is effective for actuarial valuation costs 17.9 incurred on or after July 1, 2000. 17.10 (b) Sections 2 to 6 are effective on June 30, 2000, for 17.11 actuarial valuations on or after that date. 17.12 ARTICLE 2 17.13 REEMPLOYED ANNUITANT EARNINGS LIMITATION 17.14 REVISIONS 17.15 Section 1. Minnesota Statutes 1999 Supplement, section 17.16 136F.48, is amended to read: 17.17 136F.48 [EMPLOYER-PAID HEALTH INSURANCE.] 17.18 (a) This section applies to a person who: 17.19 (1) retires from the Minnesota state colleges and 17.20 universities system with at least ten years of combined service 17.21 credit in a system under the jurisdiction of the board of 17.22 trustees of the Minnesota state colleges and universities; 17.23 (2) was employed on a full-time basis immediately preceding 17.24 retirement as a faculty member or as an unclassified 17.25 administrator in the Minnesota state colleges and universities 17.26 system; 17.27 (3) begins drawing a retirement benefit from the individual 17.28 retirement account plan or an annuity from the teachers 17.29 retirement association, from the general state employees 17.30 retirement plan or the unclassified state employees retirement 17.31 program of the Minnesota state retirement system, or from a 17.32 first class city teacher retirement plan; and 17.33 (4) returns to work on not less than a one-third time basis 17.34 and not more than a two-thirds time basis in the system from 17.35 which the person retired under an agreementin which the person17.36may not earn a salary of more than $35,000 in a calendar year18.1from employment after retirement in the system from which the18.2person retired. 18.3 (b) Initial participation, the amount of time worked, and 18.4 the duration of participation under this section must be 18.5 mutually agreed upon by the president of the institution where 18.6 the person returns to work and the employee. The president may 18.7 require up to one-year notice of intent to participate in the 18.8 program as a condition of participation under this section. The 18.9 president shall determine the time of year the employee shall 18.10 work. The employer or the president may not require a person to 18.11 waive any rights under a collective bargaining agreement as a 18.12 condition of participation under this section. 18.13 (c) For a person eligible under paragraphs (a) and (b), the 18.14 employing board shall make the same employer contribution for 18.15 hospital, medical, and dental benefits as would be made if the 18.16 person were employed full time. 18.17 (d) For work under paragraph (a), a person must receive a 18.18 percentage of the person's salary at the time of retirement that 18.19 is equal to the percentage of time the person works compared to 18.20 full-time work. 18.21 (e) If a collective bargaining agreement covering a person 18.22 provides for an early retirement incentive that is based on age, 18.23 the incentive provided to the person must be based on the 18.24 person's age at the time employment under this section ends. 18.25 However, the salary used to determine the amount of the 18.26 incentive must be the salary that would have been paid if the 18.27 person had been employed full time for the year immediately 18.28 preceding the time employment under this section ends. 18.29 (f) A person who returns to work under this section is a 18.30 member of the appropriate bargaining unit and is covered by the 18.31 appropriate collective bargaining contract. Except as provided 18.32 in this section, the person's coverage is subject to any part of 18.33 the contract limiting rights of part-time employees. 18.34 Sec. 2. Minnesota Statutes 1998, section 352.115, 18.35 subdivision 10, is amended to read: 18.36 Subd. 10. [REEMPLOYMENT OF ANNUITANT.] (a) If any retired 19.1 employee again becomes entitled to receive salary or wages from 19.2 the state, or any employer who employs state employees as that 19.3 term is defined in section 352.01, subdivision 2, other than 19.4 salary or wages received as a temporary employee of the 19.5 legislature during a legislative session, the annuity or 19.6 retirement allowance shall cease when the retired employee has 19.7 earned an amount equal to the annual maximum earnings allowable 19.8 for that age for the continued receipt of full benefit amounts 19.9 monthly under the federal old age, survivors, and disability 19.10 insurance program as set by the secretary of health and human 19.11 services under United States Code, title 42, section 403, in any 19.12 calendar year. If the retired employee has not yet reached the 19.13 minimum age for the receipt of social security benefits, the 19.14 maximum earnings for the retired employee shall be equal to the 19.15 annual maximum earnings allowable for the minimum age for the 19.16 receipt of social security benefits. 19.17 (b) The balance of the annual retirement annuity after 19.18 cessation must be handled or disposed of as provided in section 19.19 356.58. 19.20 (c) The annuity must be resumed when state service ends, 19.21 or, if the retired employee is still employed at the beginning 19.22 of the next calendar year, at the beginning of that calendar 19.23 year, and payment must again end when the retired employee has 19.24 earned the applicable reemployment earnings maximum specified in 19.25 this subdivision.No payroll deductions for the retirement fund19.26shall be made from the earnings of a reemployed retired19.27employee.If the retired employee is granted a sick leave 19.28 without pay, but not otherwise, the annuity or retirement 19.29 allowance must be resumed during the period of sick leave. 19.30 (d) No payroll deductions for the retirement fund may be 19.31 made from the earnings of a reemployed retired employee. 19.32 (e) No change shall be made in the monthly amount of an 19.33 annuity or retirement allowance because of the reemployment of 19.34 an annuitant. 19.35 Sec. 3. Minnesota Statutes 1999 Supplement, section 19.36 352.1155, subdivision 1, is amended to read: 20.1 Subdivision 1. [ELIGIBILITY.] Except as indicated in 20.2 subdivision 4, the annuity reduction provisions of section 20.3 352.115, subdivision 10, do not apply to a person who: 20.4 (1) retires from the Minnesota state colleges and 20.5 universities system with at least ten years of combined service 20.6 credit in a system under the jurisdiction of the board of 20.7 trustees of the Minnesota state colleges and universities; 20.8 (2) was employed on a full-time basis immediately preceding 20.9 retirement as a faculty member or as an unclassified 20.10 administrator in that system; 20.11 (3) begins drawing an annuity from the general state 20.12 employees retirement plan of the Minnesota state retirement 20.13 system; and 20.14 (4) returns to work on not less than a one-third time basis 20.15 and not more than a two-thirds time basis in the system from 20.16 which the person retired under an agreement in which the person 20.17 may not earn a salary of more than$35,000$46,000 in a calendar 20.18 year from employment after retirement in the system from which 20.19 the person retired. 20.20 Sec. 4. Minnesota Statutes 1999 Supplement, section 20.21 352.1155, subdivision 4, is amended to read: 20.22 Subd. 4. [EXEMPTION LIMIT.] For a person eligible under 20.23 this section who earns more than$35,000$46,000 in a calendar 20.24 year from reemployment in the Minnesota state colleges and 20.25 universities system following retirement, the annuity reduction 20.26 provisions of section 352.115, subdivision 10, apply only to 20.27 income over$35,000$46,000. 20.28 Sec. 5. Minnesota Statutes 1998, section 353.37, is 20.29 amended by adding a subdivision to read: 20.30 Subd. 3a. [DISPOSITION OF SUSPENSION OR REDUCTION AMOUNT.] 20.31 The balance of the annual retirement annuity after suspension or 20.32 the amount of the retirement annuity reduction must be handled 20.33 or disposed of as provided in section 356.58. 20.34 Sec. 6. Minnesota Statutes 1998, section 354.44, 20.35 subdivision 5, is amended to read: 20.36 Subd. 5. [RESUMPTION OF TEACHING SERVICE AFTER 21.1 RETIREMENT.] (a) Any person who retired under the provisions of 21.2 this chapter and has thereafter resumed teaching in any employer 21.3 unit to which this chapter applies is eligible to continue to 21.4 receive payments in accordance with the annuity except that 21.5 annuity payments must be reduced during the calendar year 21.6 immediately following any calendar year in which the person's 21.7 income from the teaching service is in an amount greater than 21.8 the annual maximum earnings allowable for that age for the 21.9 continued receipt of full benefit amounts monthly under the 21.10 federal old age, survivors and disability insurance program as 21.11 set by the secretary of health and human services under United 21.12 States Code, title 42, section 403. The amount of the reduction 21.13 must be one-half of the amount in excess of the applicable 21.14 reemployment income maximum specified in this subdivision and 21.15 must be deducted from the annuity payable for the calendar year 21.16 immediately following the calendar year in which the excess 21.17 amount was earned. If the person has not yet reached the 21.18 minimum age for the receipt of social security benefits, the 21.19 maximum earnings for the person must be equal to the annual 21.20 maximum earnings allowable for the minimum age for the receipt 21.21 of social security benefits. 21.22 (b) If the person is retired for only a fractional part of 21.23 the calendar year during the initial year of retirement, the 21.24 maximum reemployment income specified in this subdivision must 21.25 be prorated for that calendar year. 21.26 (c) After a person has reached the age of 70, no 21.27 reemployment income maximum is applicable regardless of the 21.28 amount of income. 21.29 (d) The amount of the retirement annuity reduction must be 21.30 handled or disposed of as provided in section 356.58. 21.31 (e) For the purpose of this subdivision, income from 21.32 teaching service includes, but is not limited to: 21.33(a)(1) all income for services performed as a consultant 21.34 or an independent contractor for an employer unit covered by the 21.35 provisions of this chapter; and 21.36(b)(2) the greater of either the income received or an 22.1 amount based on the rate paid with respect to an administrative 22.2 position, consultant, or independent contractor in an employer 22.3 unit with approximately the same number of pupils and at the 22.4 same level as the position occupied by the person who resumes 22.5 teaching service. 22.6 Sec. 7. Minnesota Statutes 1999 Supplement, section 22.7 354.445, is amended to read: 22.8 354.445 [NO ANNUITY REDUCTION.] 22.9 (a) The annuity reduction provisions of section 354.44, 22.10 subdivision 5, do not apply to a person who: 22.11 (1) retires from the Minnesota state colleges and 22.12 universities system with at least ten years of combined service 22.13 credit in a system under the jurisdiction of the board of 22.14 trustees of the Minnesota state colleges and universities; 22.15 (2) was employed on a full-time basis immediately preceding 22.16 retirement as a faculty member or as an unclassified 22.17 administrator in that system; 22.18 (3) begins drawing an annuity from the teachers retirement 22.19 association; and 22.20 (4) returns to work on not less than a one-third time basis 22.21 and not more than a two-thirds time basis in the system from 22.22 which the person retired under an agreement in which the person 22.23 may not earn a salary of more than$35,000$46,000 in a calendar 22.24 year from employment after retirement in the system from which 22.25 the person retired. 22.26 (b) Initial participation, the amount of time worked, and 22.27 the duration of participation under this section must be 22.28 mutually agreed upon by the president of the institution where 22.29 the person returns to work and the employee. The president may 22.30 require up to one-year notice of intent to participate in the 22.31 program as a condition of participation under this section. The 22.32 president shall determine the time of year the employee shall 22.33 work. The employer or the president may not require a person to 22.34 waive any rights under a collective bargaining agreement as a 22.35 condition of participation under this section. 22.36 (c) Notwithstanding any law to the contrary, a person 23.1 eligible under paragraphs (a) and (b) may not, based on 23.2 employment to which the waiver in this section applies, earn 23.3 further service credit in a Minnesota public defined benefit 23.4 plan and is not eligible to participate in a Minnesota public 23.5 defined contribution plan, other than a volunteer fire plan 23.6 governed by chapter 424A. No employer or employee contribution 23.7 to any of these plans may be made on behalf of such a person. 23.8 (d) For a person eligible under paragraphs (a) and (b) who 23.9 earns more than$35,000$46,000 in a calendar year from 23.10 employment after retirement due to employment by the Minnesota 23.11 state colleges and universities system, the annuity reduction 23.12 provisions of section 354.44, subdivision 5, apply only to 23.13 income over$35,000$46,000. 23.14 (e) A person who returns to work under this section is a 23.15 member of the appropriate bargaining unit and is covered by the 23.16 appropriate collective bargaining contract. Except as provided 23.17 in this section, the person's coverage is subject to any part of 23.18 the contract limiting rights of part-time employees. 23.19 Sec. 8. Minnesota Statutes 1998, section 354A.31, 23.20 subdivision 3, is amended to read: 23.21 Subd. 3. [RESUMPTION OF TEACHING AFTER COMMENCEMENT OF A 23.22 RETIREMENT ANNUITY.] (a) Any person who retired and is receiving 23.23 a coordinated program retirement annuity under the provisions of 23.24 sections 354A.31 to 354A.41 or any person receiving a basic 23.25 program retirement annuity under the governing sections in the 23.26 articles of incorporation or bylaws and who has resumed teaching 23.27 service for the school district in which the teachers retirement 23.28 fund association exists is entitled to continue to receive 23.29 retirement annuity payments, except that annuity payments must 23.30 be reduced during the calendar year immediately following the 23.31 calendar year in which the person's income from the teaching 23.32 service is in an amount greater than the annual maximum earnings 23.33 allowable for that age for the continued receipt of full benefit 23.34 amounts monthly under the federal old age, survivors, and 23.35 disability insurance program as set by the secretary of health 23.36 and human services under United States Code, title 42, section 24.1 403. The amount of the reduction must be one-third the amount 24.2 in excess of the applicable reemployment income maximum 24.3 specified in this subdivision and must be deducted from the 24.4 annuity payable for the calendar year immediately following the 24.5 calendar year in which the excess amount was earned. If the 24.6 person has not yet reached the minimum age for the receipt of 24.7 social security benefits, the maximum earnings for the person 24.8 must be equal to the annual maximum earnings allowable for the 24.9 minimum age for the receipt of social security benefits. 24.10 (b) If the person is retired for only a fractional part of 24.11 the calendar year during the initial year of retirement, the 24.12 maximum reemployment income specified in this subdivision must 24.13 be prorated for that calendar year. 24.14 (c) After a person has reached the age of 70, no 24.15 reemployment income maximum is applicable regardless of the 24.16 amount of any compensation received for teaching service for the 24.17 school district in which the teachers retirement fund 24.18 association exists. 24.19 (d) The amount of the retirement annuity reduction must be 24.20 handled or disposed of as provided in section 356.58. 24.21 (e) For the purpose of this subdivision, income from 24.22 teaching service includes: (i) all income for services 24.23 performed as a consultant or independent contractor; or income 24.24 resulting from working with the school district in any capacity; 24.25 and (ii) the greater of either the income received or an amount 24.26 based on the rate paid with respect to an administrative 24.27 position, consultant, or independent contractor in the school 24.28 district in which the teachers retirement fund association 24.29 exists and at the same level as the position occupied by the 24.30 person who resumes teaching service. 24.31 Sec. 9. Minnesota Statutes 1998, section 354A.31, 24.32 subdivision 3a, is amended to read: 24.33 Subd. 3a. [NO ANNUITY REDUCTION.] (a) The annuity 24.34 reduction provisions of subdivision 3 do not apply to a person 24.35 who: 24.36 (1) retires from the technical college system with at least 25.1 ten years of service credit in the system from which the person 25.2 retires; 25.3 (2) was employed on a full-time basis immediately preceding 25.4 retirement as a technical college faculty member; 25.5 (3) begins drawing an annuity from a first class city 25.6 teachers retirement association; and 25.7 (4) returns to work on not less than a one-third time basis 25.8 and not more than a two-thirds time basis in the technical 25.9 college system under an agreement in which the person may not 25.10 earn a salary of more than$35,000$46,000 in a calendar year 25.11 from the technical college system. 25.12 (b) Initial participation, the amount of time worked, and 25.13 the duration of participation under this section must be 25.14 mutually agreed upon by the employer and the employee. The 25.15 employer may require up to a one-year notice of intent to 25.16 participate in the program as a condition of participation under 25.17 this section. The employer shall determine the time of year the 25.18 employee shall work. 25.19 (c) Notwithstanding any law to the contrary, a person 25.20 eligible under paragraphs (a) and (b) may not earn further 25.21 service credit in a first class city teachers retirement 25.22 association and is not eligible to participate in the individual 25.23 retirement account plan or the supplemental retirement plan 25.24 established in chapter 354B as a result of service under this 25.25 section. No employer or employee contribution to any of these 25.26 plans may be made on behalf of such a person. 25.27 Sec. 10. [356.58] [DISPOSITION OF AMOUNT IN EXCESS OF 25.28 REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.] 25.29 Subdivision 1. [APPLICATION.] This section applies to the 25.30 balance of annual retirement annuities on the amount of 25.31 retirement annuity reductions after reemployed annuitant 25.32 earnings limitations for retirement plans governed by section 25.33 352.115, subdivision 10; 353.37; 354.44, subdivision 5; or 25.34 354A.31, subdivision 3. 25.35 Subd. 2. [RECORDKEEPING; REPORTING.] The chief 25.36 administrative officer of each retirement plan will keep records 26.1 for each reemployed annuitant of the amount of the annuity 26.2 reduction. This amount will be reported to each member at least 26.3 once each year. 26.4 Subd. 3. [PAYMENT.] Upon the retired member attaining the 26.5 age of 65 years or upon the first day of the month next 26.6 following the month occurring one year after termination of the 26.7 reemployment that gave rise to the limitation, whichever is 26.8 later, and the filing of an application for the payment by the 26.9 person, or upon the death of the retired member and the filing 26.10 of an application for the payment by the deceased person's 26.11 surviving spouse, or if none, by the deceased person's 26.12 designated beneficiary, or if none, by the deceased person's 26.13 estate, the chief administrative officer of the applicable 26.14 retirement plan shall pay in a lump sum of the value of the 26.15 person's amount under subdivision 2, plus six percent interest 26.16 compounded annually. 26.17 Sec. 11. [SUNSET; REPEALER.] 26.18 (a) Minnesota Statutes 1998, section 354A.31, subdivision 26.19 3a, is repealed, effective July 1, 2003. 26.20 (b) Minnesota Statutes 1999 Supplement, sections 136F.48; 26.21 352.1155, subdivisions 1 and 4; and 354.445, are repealed, 26.22 effective July 1, 2003. 26.23 (c) Agreements for a phased retirement under Minnesota 26.24 Statutes, sections 136F.48; 352.1155; 354.445; and 354A.31, 26.25 subdivision 3a, made before the date of enactment may continue 26.26 for the duration of their specified effective period even if the 26.27 period extends beyond July 1, 2003. 26.28 Sec. 12. [REPORT.] 26.29 The Minnesota state colleges and universities board shall 26.30 report to the legislative commission on pensions and retirement 26.31 by November 15, 2000, on the utilization of the annuitant 26.32 employment program authorized by Minnesota Statutes, sections 26.33 136F.48; 352.1155, subdivisions 1 and 4; and 354.445. The 26.34 report shall include an evaluation by institutions that have 26.35 used the program regarding its effectiveness as a human resource 26.36 management tool. 27.1 Sec. 13. [EFFECTIVE DATE.] 27.2 Sections 1 to 11 are effective on July 1, 2000. 27.3 ARTICLE 3 27.4 ADMINISTRATIVE PROVISIONS 27.5 Section 1. Minnesota Statutes 1998, section 352.15, 27.6 subdivision 1a, is amended to read: 27.7 Subd. 1a. [AUTOMATIC DEPOSITS.] The executive director may 27.8pay anremit, through an automatic deposit system, annuity, 27.9 benefit, or refund payments only to abankingfinancial 27.10 institution, qualified under chapter 48,associated with the 27.11 National Automated Clearinghouse Association or a comparable 27.12 successor organization that is trustee for a person eligible to 27.13 receive the annuity, benefit, or refund. Upon the request ofa27.14retired, disabled,the retiree, disabilitant, survivor, or 27.15 former employee, the executive director maya banking institution,27.17savings association, or credit unionthe applicable financial 27.18 institution for deposittoin theemployee'sperson's account 27.19 or joint account. The board of directors may prescribe the 27.20 conditions under which payments will be made. 27.21 Sec. 2. Minnesota Statutes 1998, section 352B.01, 27.22 subdivision 3, is amended to read: 27.23 Subd. 3. [ALLOWABLESERVICESSERVICE.] (a) "Allowable 27.24 service" means: 27.25(a)(1) for members defined in subdivision 2, clause (a), 27.26 monthly service is granted for any month for which payments have 27.27 been made to the state patrol retirement fund, and 27.28(b)(2) for members defined in subdivision 2, clauses (b) 27.29 and (c), service for which payments have been made to the state 27.30 patrol retirement fund, service for which payments were made to 27.31 the state police officers retirement fund after June 30, 1961, 27.32 and all prior service which was credited to a member for service 27.33 on or before June 30, 1961. 27.34 (b) Allowable service also includes any period of absence 27.35 from duty by a member who, by reason of injury incurred in the 27.36 performance of duty, is temporarily disabled and for which 28.1 disability the state is liable under the workers' compensation 28.2 law, until the date authorized by the executive director for 28.3 commencement of payment of a disability benefit or return to 28.4 employment. 28.5 Sec. 3. Minnesota Statutes 1998, section 352D.02, 28.6 subdivision 1, is amended to read: 28.7 Subdivision 1. [COVERAGE.] (a) Employees enumerated in 28.8 paragraph (c), clauses (2), (3), (4), and (6) to (15), if they 28.9 are in the unclassified service of the state or metropolitan 28.10 council and are eligible for coverage under the general state 28.11 employees retirement plan under chapter 352, are participants in 28.12 the unclassifiedprogramplan under this chapter unless the 28.13 employee gives notice to the executive director of the Minnesota 28.14 state retirement system within one year following the 28.15 commencement of employment in the unclassified service that the 28.16 employee desires coverage under the general state employees 28.17 retirement plan. For the purposes of this chapter, an employee 28.18 who does not file notice with the executive director is deemed 28.19 to have exercised the option to participate in the unclassified 28.20 plan. 28.21 (b) Persons referenced in paragraph (c), clauses (1) and 28.22 (5), are participants in the unclassified program under this 28.23 chapter unless the person is eligible to elect different 28.24 coverage under section 3A.07 or 352C.011 and, after July 1, 28.25 1998, elects retirement coverage by the applicable alternative 28.26 retirement plan. 28.27 (c) Enumerated employees and referenced persons are: 28.28 (1) the governor, the lieutenant governor, the secretary of 28.29 state, the state auditor, the state treasurer, and the attorney 28.30 general; 28.31 (2) an employee in the office of the governor, lieutenant 28.32 governor, secretary of state, state auditor, state treasurer, 28.33 attorney general; 28.34 (3) an employee of the state board of investment; 28.35 (4) the head of a department, division, or agency created 28.36 by statute in the unclassified service, an acting department 29.1 head subsequently appointed to the position, or an employee 29.2 enumerated in section 15A.0815 or 15A.083, subdivision 4; 29.3 (5) a member of the legislature; 29.4 (6) a permanent, full-time unclassified employee of the 29.5 legislature or a commission or agency of the legislature or a 29.6 temporary legislative employee having shares in the supplemental 29.7 retirement fund as a result of former employment covered by this 29.8 chapter, whether or not eligible for coverage under the 29.9 Minnesota state retirement system; 29.10 (7) a person who is employed in a position established 29.11 under section 43A.08, subdivision 1, clause (3), or in a 29.12 position authorized under a statute creating or establishing a 29.13 department or agency of the state, which is at the deputy or 29.14 assistant head of department or agency or director level; 29.15 (8) the regional administrator, or executive director of 29.16 the metropolitan council, general counsel, division directors, 29.17 operations managers, and other positions as designated by the 29.18 council, all of which may not exceed 27 positions at the council 29.19 and the chair, provided that upon initial designation of all29.20positions provided for in this clause, no further designations29.21or redesignations may be made without approval of the board of29.22directors of the Minnesota state retirement system; 29.23 (9) the executive director, associate executive director, 29.24 and not to exceed nine positions of the higher education 29.25 services office in the unclassified service, as designated by 29.26 the higher education services office before January 1, 1992, or 29.27 subsequently redesignated with the approval of the board of 29.28 directors of the Minnesota state retirement system, unless the 29.29 person has elected coverage by the individual retirement account 29.30 plan under chapter 354B; 29.31 (10) the clerk of the appellate courts appointed under 29.32 article VI, section 2, of the Constitution of the state of 29.33 Minnesota; 29.34 (11) the chief executive officers of correctional 29.35 facilities operated by the department of corrections and of 29.36 hospitals and nursing homes operated by the department of human 30.1 services; 30.2 (12) an employee whose principal employment is at the state 30.3 ceremonial house; 30.4 (13) an employee of the Minnesota educational computing 30.5 corporation; 30.6 (14) an employee of the world trade center board; and 30.7 (15) an employee of the state lottery board who is covered 30.8 by the managerial plan established under section 43A.18, 30.9 subdivision 3. 30.10 Sec. 4. Minnesota Statutes 1998, section 352D.05, 30.11 subdivision 3, is amended to read: 30.12 Subd. 3. [FULL OR PARTIAL WITHDRAWAL.] After termination 30.13 of covered employment or at any time thereafter, a participant 30.14 is entitled, upon application, to withdraw the cash value of the 30.15 participant's total shares or leave such shares on deposit with 30.16 the supplemental retirement fund. The account is valued at the 30.17 end of the month in which application for withdrawal is made. 30.18 Shares not withdrawn remain on deposit with the supplemental 30.19 retirement fund until the former participant becomes at least 55 30.20 years old, and applies for an annuity under section 352D.06, 30.21 subdivision 1. 30.22 Sec. 5. Minnesota Statutes 1998, section 352D.06, is 30.23 amended to read: 30.24 352D.06 [ANNUITIES.] 30.25 Subdivision 1. [ANNUITY; RESERVES.] When a participant 30.26 attains at least age 55,is retiredterminates from covered 30.27 service, and applies for a retirement annuity, the cash value of 30.28 the participant's shares shall be transferred to the Minnesota 30.29 postretirement investment fund and used to provide an annuity 30.30 for the retired employee based upon the participant's age when 30.31 the benefit begins to accrue according to the reserve basis used 30.32 by the general state employees retirementfundplan in 30.33 determining pensions and reserves. 30.34 Subd. 2. [PARTIAL VALUE ANNUITY.] A participant has the 30.35 option in an application for an annuity to apply for and receive 30.36thea partial value ofone-half ofthe total shares and 31.1 thereafter receive an annuity, as provided in subdivision 1, 31.2 based on the remaining value ofone-half ofthe total shares. 31.3 Subd. 3. [ACCRUAL DATE.] An annuityherein shall begin to31.4accrueunder this section accrues the first day of the first 31.5 full month after an application is received or after termination 31.6 of state service, whichever is later. Upon the former 31.7 employee's request, the annuity may begin to accrue up to six 31.8 months before redemption of shares, but not prior to the 31.9 termination date from covered service, and must be based on the 31.10 account value at redemption and upon the age of the former 31.11 employee at the date annuity accrual starts. The account must 31.12 be valued and redeemed on the later of the end of the month of 31.13 termination of covered employment, or the end of the month of 31.14 receipt of the annuity application for the purpose of computing 31.15 the annuity. 31.16 Sec. 6. Minnesota Statutes 1998, section 352D.09, 31.17 subdivision 5a, is amended to read: 31.18 Subd. 5a. [SMALL BALANCE ACCOUNTS.] If a former 31.19 participant who contributed less than$100$500 in employee 31.20 contributions cannot be contacted by the system for five or more 31.21 years, the value of the shares shall be appropriated to the 31.22 general employees retirement fund, but upon subsequent contact 31.23 by the former employee the account shall be reinstated to the 31.24 amount that would have been payable had the money been left in 31.25 the unclassified plan. 31.26 Sec. 7. Minnesota Statutes 1998, section 353.01, 31.27 subdivision 2, is amended to read: 31.28 Subd. 2. [PUBLIC EMPLOYEE.] "Public employee" means an 31.29 employee performing personal services for a governmental 31.30 subdivision under subdivision 6, whose salary is paid, in whole 31.31 or in part, from revenue derived from taxation, fees, 31.32 assessments, or from other sources. The term also includes 31.33 special classes of persons listed in subdivision 2a, but 31.34 excludes special classes of persons listed in subdivision 2b for 31.35 purposes of membership in the association. Public employee does 31.36 not include independent contractors and their employees. A 32.1 reemployed annuitant under section 353.37 must not be considered 32.2 to be a public employee for purposes of that reemployment. 32.3 Sec. 8. Minnesota Statutes 1998, section 353.01, 32.4 subdivision 6, is amended to read: 32.5 Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 32.6 subdivision" means a county, city, town, school district within 32.7 this state, or a department or unit of state government, or any 32.8 public body whose revenues are derived from taxation, fees, 32.9 assessments or from other sources. 32.10 (b) Governmental subdivision also means the public 32.11 employees retirement association, the league of Minnesota 32.12 cities, the association of metropolitan municipalities, public 32.13 hospitals owned or operated by, or an integral part of, a 32.14 governmental subdivision or governmental subdivisions, the 32.15 association of Minnesota counties, the metropolitan intercounty 32.16 association, the Minnesota municipal utilities association, the 32.17 metropolitan airports commission,andthe Minneapolis employees 32.18 retirement fund for employment initially commenced after June 32.19 30, 1979, the range association of municipalities and schools, 32.20 soil and water conservation districts, and economic development 32.21 authorities created or operating under sections 469.090 to 32.22 469.108. 32.23 (c) Governmental subdivision does not mean any municipal 32.24 housing and redevelopment authority organized under the 32.25 provisions of sections 469.001 to 469.047; or any port authority 32.26 organized under sections 469.048 to469.068469.089; or any 32.27 hospital district organized or reorganized prior to July 1, 32.28 1975, under sections 447.31 to 447.37 or the successor of the 32.29 district, nor the Minneapolis community development agency. 32.30 Sec. 9. Minnesota Statutes 1999 Supplement, section 32.31 353.01, subdivision 10, is amended to read: 32.32 Subd. 10. [SALARY.] (a) "Salary" means: 32.33 (1) periodic compensation of a public employee, before 32.34 deductions for deferred compensation, supplemental retirement 32.35 plans, or other voluntary salary reduction programs, and also 32.36 means "wages" and includes net income from fees; and 33.1 (2) for a public employee who has prior service covered by 33.2 a local police or firefighters' relief association that has 33.3 consolidated with the public employees retirement association or 33.4 to which section 353.665 applies and who has elected coverage 33.5 either under the public employees police and fire fund benefit 33.6 plan under section 353A.08 following the consolidation or under 33.7 section 353.665, subdivision 4, "salary" means the rate of 33.8 salary upon which member contributions to the special fund of 33.9 the relief association were made prior to the effective date of 33.10 the consolidation as specified by law and by bylaw provisions 33.11 governing the relief association on the date of the initiation 33.12 of the consolidation procedure and the actual periodic 33.13 compensation of the public employee after the effective date of 33.14 consolidation. 33.15 (b) Salary does not mean: 33.16 (1) fees paid to district court reporters, unused 33.17 annual vacation or sick leave payments, in lump-sum or periodic 33.18 payments, severance payments, reimbursement of expenses, 33.19 lump-sum settlements not attached to a specific earnings period, 33.20 or workers' compensation payments; 33.21 (2) employer-paid amounts used by an employee toward the 33.22 cost of insurance coverage, employer-paid fringe benefits, 33.23 flexible spending accounts, cafeteria plans, health care expense 33.24 accounts, day care expenses, or any payments in lieu of any 33.25 employer-paid group insurance coverage, including the difference 33.26 between single and family rates that may be paid to a member 33.27 with single coverage and certain amounts determined by the 33.28 executive director to be ineligible; 33.29 (3) the amount equal to that which the employing 33.30 governmental subdivision would otherwise pay toward single or 33.31 family insurance coverage for a covered employee when, through a 33.32 contract or agreement with some but not all employees, the 33.33 employer: 33.34 (i) discontinues, or for new hires does not provide, 33.35 payment toward the cost of the employee's selected insurance 33.36 coverages under a group plan offered by the employer; 34.1 (ii) makes the employee solely responsible for all 34.2 contributions toward the cost of the employee's selected 34.3 insurance coverages under a group plan offered by the employer, 34.4 including any amount the employer makes toward other employees' 34.5 selected insurance coverages under a group plan offered by the 34.6 employer; and 34.7 (iii) provides increased salary rates for employees who do 34.8 not have any employer-paid group insurance coverages; and 34.9 (4) except as provided in section 353.86 or 353.87, 34.10 compensation of any kind paid to volunteer ambulance service 34.11 personnel or volunteer firefighters, as defined insubdivisions34.12 subdivision 35andor 36. 34.13 Sec. 10. Minnesota Statutes 1998, section 353.01, 34.14 subdivision 11a, is amended to read: 34.15 Subd. 11a. [TERMINATION OF PUBLIC SERVICE.] 34.16 (a) "Termination of public service" occurs when a member resigns 34.17 or is dismissed from public service by the employing 34.18 governmental subdivision, as evidenced by appropriate written34.19record transmitted to the association,or when a position ends 34.20 and the member who held the position is not considered by the 34.21 governmental subdivision to be on a temporary layoff, and the 34.22 employee does not, within 30 days ofresignation or dismissal34.23 the date the employment relationship ended, return toa34.24nontemporaryan employment position in the same governmental 34.25 subdivision. 34.26 (b) The termination of public service must be recorded in 34.27 the association records upon receipt of an appropriate notice 34.28 from the governmental subdivision. 34.29 Sec. 11. Minnesota Statutes 1998, section 353.01, 34.30 subdivision 28, is amended to read: 34.31 Subd. 28. [RETIREMENT.] (a) "Retirement" means the 34.32 commencement of payment of an annuity based on a date designated 34.33 by the board of trustees. This date determines the rights under 34.34 this chapter which occur either before or after retirement. A 34.35 right to retirement is subject to termination of public service 34.36 under subdivision 11aor termination of membership under35.1subdivision 11b, the earlier of which will determine the date35.2membership and coverage cease. A right to retirementmust not35.3accrue withoutrequires a complete and continuous separation for 35.4 30 days from employment as a public employeeunder subdivision 235.5 and from the provision of paid services to that employer. 35.6 (b) An individual who separates from employment as a public 35.7 employee and who, within 30 days of separation, returns to 35.8 provide service to a governmental subdivision as an independent 35.9 contractor or as an employee of an independent contractor, has 35.10 not satisfied separation requirements under paragraph (a). 35.11 (c) A former member of the basic or police and fire fund 35.12 who becomes a coordinated member upon returning to eligible, 35.13 nontemporary public service, terminates employment before 35.14 obtaining six months' allowable service under subdivision 16, 35.15 paragraph (a), in the coordinated fund, and is eligible to 35.16 receive an annuity the first day of the month after the most 35.17 recent termination date shall not accrue a right to a retirement 35.18 annuity under the coordinated fund. An annuity otherwise 35.19 payable to the former member must be based on the laws in effect 35.20 on the date of termination of the most recent service under the 35.21 basic or police and fire fund and shall be retroactive to the 35.22 first day of the month following that termination date or one 35.23 year preceding the filing of an application for retirement 35.24 annuity as provided by section 353.29, subdivision 7, whichever 35.25 is later. The annuity payment must be suspendedor reduced35.26 under the provisions of section 353.37, if earned compensation 35.27 for the reemployment equals or exceeds the amounts indicated 35.28 under that section. The association will refund the employee 35.29 deductions made to the coordinated fund, with interest under 35.30 section 353.34, subdivision 2, return the accompanying employer 35.31 contributions, and remove the allowable service credits covering 35.32 the deductions refunded. 35.33(b)(d) Notwithstanding the 30-day separation requirement 35.34 under paragraph (a), a member of the defined benefit plan under 35.35 this chapter, who also participates in the public employees 35.36 defined contribution plan under chapter 353D for other public 36.1 service, may be paid, if eligible, a retirement annuity from the 36.2 defined benefit plan while participating in the defined 36.3 contribution plan. 36.4 Sec. 12. Minnesota Statutes 1998, section 353.01, 36.5 subdivision 32, is amended to read: 36.6 Subd. 32. [COORDINATED MEMBER.] "Coordinated member" means 36.7 any public employee, including any public hospital employee, 36.8 covered by any agreement or modification made between the state 36.9 and the Secretary of Health, Education and Welfare, making the 36.10 provisions of the federal Old Age, Survivors and Disability 36.11 Insurance Act applicable to the member if membership eligibility 36.12 criteria are met under this chapter. A coordinated member also 36.13meansis a former basic member whoterminates public service36.14under subdivision 11a,has a complete and continuous separation 36.15 for at least 30 days from employment as a public employee 36.16 meeting requirements specified in subdivision 28, paragraphs (a) 36.17 and (b), and who reenters public servicein a nontemporary36.18position,as a public employee and meets the membership 36.19 eligibility criteria under this chapter. 36.20 Sec. 13. Minnesota Statutes 1998, section 353.15, 36.21 subdivision 2, is amended to read: 36.22 Subd. 2. [AUTOMATIC DEPOSITS.] The association maypay an36.23 remit, through an automatic deposit system, annuity, benefit, or 36.24 refund payments only to atrust company, qualified under chapter36.2548,financial institution associated with the National Automated 36.26 Clearinghouse Association or a comparable successor organization 36.27 that is trustee for a person eligible to receivesuchthe 36.28 annuity, benefit, or refund. Upon the request ofa retired,36.29disabledthe retiree, disabilitant, survivor, or former member, 36.30 the association may mail or send by electronic transfer the 36.31 annuity, benefit or refund check toa banking institution,36.32savings association or credit unionthe applicable financial 36.33 institution for depositto suchin the person's account or joint 36.34 account with a spouse. The association may prescribe the 36.35 conditions under which such payment will be made. 36.36 Sec. 14. Minnesota Statutes 1998, section 353.27, 37.1 subdivision 4, is amended to read: 37.2 Subd. 4. [EMPLOYERSREPORTING REQUIREMENTS; CONTRIBUTIONS; 37.3 MEMBER STATUS.] (a) A representative authorized by the head of 37.4 each department shall deduct employee contributions from the 37.5 salary of eachmemberemployee who qualifies for membership 37.6 under this chapter andissue or approve one warrantremit 37.7 payment in a manner prescribed by the executive director for the 37.8 aggregate amount of the employee contributions, the employer 37.9 contributions and the additional employer contributionsto be37.10receivedwithin2014 calendar daysin the office of the37.11association. The head of each department or designee shall,for 37.12 each pay periodin which employee contributions are deducted,37.13 submit to the association a salary deduction report,in theform37.14 format prescribed by the executive director, showing. Data to 37.15 be submitted as part of salary deduction reporting must include, 37.16 but are not limited to: 37.17(a)(1) the legal names andthe association membership37.18numbers, listed in alphabetical order,social security numbers 37.19 of employees who are members; 37.20(b)(2)the legal names of all new public employees and the37.21effective dates of appointment; (c)the amount of each 37.22 employee's salary deduction;(d)37.23 (3) the amount of salary from which each deduction was 37.24 made;(e) effective dates of member terminations of public37.25service accompanied by the applicable status code as set by the37.26association for those terminations caused by death or37.27retirement; (f) effective dates of all temporary layoffs and37.28leaves of absence accompanied by the applicable status code as37.29set by the association; and (g)37.30 (4) the beginning and ending dates of the payroll period 37.31 covered and the date of actual payment; and 37.32 (5) adjustments or corrections covering past pay periods. 37.33Reports of contributions must be accompanied by a37.34membership enrollment form37.35 (b) Employers must furnish the data required for enrollment 37.36 for each new employee who qualifies for membership in theform38.1 format prescribed by the executive director. The required 38.2 enrollmentforms fromdata on new employees must becollected by38.3the employer andsubmitted to the associationwithin 30 days38.4following the date of employmentprior to or concurrent with the 38.5 submission of the initial employee salary deduction. The 38.6 employer shall also report to the association all member 38.7 employment status changes, such as leaves of absence, 38.8 terminations, and death, and the effective dates of those 38.9 changes, on an ongoing basis for the payroll cycle in which they 38.10 occur. The employer shall furnishsuch additionaldata, forms, 38.11 and reportson magnetic media on other formsas may berequested38.12 required by the executive director for proper administration of 38.13 the retirement system. Before implementing new or different 38.14 computerized reporting requirements, the executive director 38.15 shall give appropriate advance notice to governmental 38.16 subdivisions to allow time for system modifications. 38.17(b)(c) Notwithstanding paragraph (a), the association may 38.18 provide for less frequent reporting and payments for small 38.19 employers. 38.20 Sec. 15. Minnesota Statutes 1998, section 353.27, 38.21 subdivision 12, is amended to read: 38.22 Subd. 12. [OMITTED SALARY DEDUCTIONS; OBLIGATIONS.] (a) In 38.23 the case of omission of required deductions from the salary of 38.24 an employee, the department head or designee shall immediately, 38.25 upon discovery, report the employee for membership and deduct 38.26 the employee deductions under subdivision 4. Upon receipt of38.27billing from the association,during the current pay period or 38.28 during the pay period immediately following the discovery of the 38.29 omission. Payment for the omitted obligations shall be made in 38.30 accordance with reporting procedures and methods established by 38.31 the executive director. 38.32 (b) When the entire omission period of an employee does not 38.33 exceed 60 days, the governmental subdivision may report and 38.34 submit payment of the omitted employee deductions and the 38.35 omitted employer contributions through the reporting processes 38.36 under subdivision 4. 39.1 (c) When the omission period of an employee exceeds 60 39.2 days, the governmental subdivision shall furnish to the 39.3 association sufficient data and documentation upon which the 39.4 obligation for omitted employee and employer contributions can 39.5 be calculated. The omitted employee deductions must be deducted 39.6 from the employee'snextsubsequent salary payment or payments 39.7 and remitted to the association. The employee shall pay omitted 39.8 employee deductions due for the 60 days prior to the end of the 39.9 last pay period in the omission period during which salary was 39.10 earned. The employer shall pay any remaining omitted employee 39.11 deductions and any omitted employer contributions, plus 39.12 cumulative interest at an annual rate of 8.5 percent compounded 39.13 annually, from the date or dates each omitted employee 39.14 contribution was first payable. 39.15(b)(d) An employer shall not hold an employee liable for 39.16 omitted employee deductions beyond the pay period dates under 39.17 paragraph(a)(c), nor attempt to recover from the employee 39.18 those employee deductions paid by the employer on behalf of the 39.19 employee. Omitted deductions due under paragraph(a)(c) which 39.20 are not paid by the employee constitute a liability of the 39.21 employer that failed to deduct the omitted deductions from the 39.22 employee's salary. The employer shall make payment with 39.23 interest at an annual rate of 8.5 percent compounded annually. 39.24 Omitted employee deductions are no longer due if an employee 39.25 terminates public service before making payment of omitted 39.26 employee deductions to the association, but the employer remains 39.27 liable to pay omitted employer contributions plus interest at an 39.28 annual rate of 8.5 percent compounded annually from the date the 39.29 contributions were first payable. 39.30(c)(e) The association may not commence action for the 39.31 recovery of omitted employee deductions and employer 39.32 contributions after the expiration of three calendar years after 39.33 the calendar year in which the contributions and deductions were 39.34 omitted. Except as provided under paragraph (b), no payment may 39.35 be made or accepted unless the association has already commenced 39.36 action for recovery of omitted deductions. An action for 40.1 recovery commences on the date of the mailing of any written 40.2 correspondence from the association requesting information from 40.3 the governmental subdivision upon which to determine whether or 40.4 not omitted deductions occurred. 40.5 Sec. 16. Minnesota Statutes 1998, section 353.33, 40.6 subdivision 2, is amended to read: 40.7 Subd. 2. [APPLICATIONS; ACCRUAL OF BENEFITS.] Every claim 40.8 or demand for a total and permanent disability benefit must be 40.9 initiated by written application in the manner and form 40.10 prescribed by the executive director showing compliance with the 40.11 statutory conditions qualifying the applicant for a total and 40.12 permanent disability benefit and filed with the executive 40.13 director. A member or former member who became totally and 40.14 permanently disabled during a period of membership shall file 40.15 application for total and permanent disability benefits within 40.16 three years next following termination of public service. This 40.17 benefit begins to accrue the day following the commencement of 40.18 disability, 90 days preceding the filing of the application, or, 40.19 if annual or sick leave is paid for more than the 90-day period, 40.20 from the date salary ceased, whichever is later. No member is 40.21 entitled to receive a disability benefit payment when there 40.22 remains to the member's credit any unused annual leave or sick 40.23 leave or under any other circumstances when, during the period 40.24 of disability, there has been no impairment of the person's 40.25 salary. Payment must not accrue beyond the end of the month in 40.26 which entitlement has terminated. If the disabilitant dies 40.27 prior to negotiating the check for the month in which death 40.28 occurs, payment is made to the surviving spouse, or if none, to 40.29 the designated beneficiary, or if none, to the estate. An 40.30 applicant for total and permanent disability benefits may file a 40.31 retirement annuity application under section 353.29, subdivision 40.32 4, simultaneously with an application for total and permanent 40.33 disability benefits. The retirement annuity application is void 40.34 upon the determination of the entitlement for disability 40.35 benefits by the executive director. If disability benefits are 40.36 denied, the retirement annuity application must be initiated and 41.1 processed. 41.2 Sec. 17. Minnesota Statutes 1998, section 353.33, 41.3 subdivision 6, is amended to read: 41.4 Subd. 6. [CONTINUING ELIGIBILITY FOR BENEFITS.] The 41.5 association shall determine eligibility for continuation of 41.6 disability benefits and require periodic examinations and 41.7 evaluations of disabled members as frequently as deemed 41.8 necessary. The association shall require the disabled member to 41.9 provide and authorize release of medical evidence, including all 41.10 medical records and information from any source, relating to an 41.11 application for continuation of disability benefits. Disability 41.12 benefits are contingent upon a disabled person's participation 41.13 in a vocational rehabilitation program if the executive director 41.14 determines that the disabled person may be able to return to a 41.15 gainful occupation. If a member is found to be no longer 41.16 totally and permanently disabledand is reinstated to the41.17payroll, payments must cease the first of the month following 41.18 thereinstatement to the payrollexpiration of a 30-day period 41.19 after the member receives a certified letter notifying the 41.20 member that payments will cease. 41.21 Sec. 18. Minnesota Statutes 1998, section 353.34, 41.22 subdivision 1, is amended to read: 41.23 Subdivision 1. [REFUND OR DEFERRED ANNUITY.] (a) A former 41.24 member is entitled to a refund of accumulated employee 41.25 deductions under subdivision 2, or to a deferred annuity under 41.26 subdivision 3.An active member of a fund enumerated in section41.27356.30, subdivision 3, clause (7), (8), or (14), who terminates41.28public service in any of those funds and becomes a member of41.29another fund enumerated in those clauses may receive a refund of41.30employee contributions plus six percent interest compounded41.31annually from the fund in which the member terminated service.41.32 Application for a refund may not be made prior to the date of 41.33 termination of public service or the termination of membership, 41.34 whichever is sooner. Except as specified in paragraph (b), a 41.35 refund must be paid within 120 days following receipt of the 41.36 application unless the applicant has again become a public 42.1 employee required to be covered by the association. 42.2 (b) If an individual was granted an authorized temporary 42.3 layoff, a refund is not payable before termination of membership 42.4 under section 353.01, subdivision 11b, clause (3). 42.5 (c) An individual who terminates public service covered by 42.6 the public employees retirement association general plan, the 42.7 public employees retirement association police and fire plan, or 42.8 the public employees local government corrections service 42.9 retirement plan, and who becomes an active member covered by one 42.10 of the other two plans, may receive a refund of employee 42.11 contributions plus six percent interest compounded annually from 42.12 the plan in which the member terminated service. 42.13 Sec. 19. Minnesota Statutes 1999 Supplement, section 42.14 353.64, subdivision 1, is amended to read: 42.15 Subdivision 1. [POLICE AND FIREFUNDPLAN MEMBERSHIP; 42.16 MANDATORY.] A governmental subdivision must report a public 42.17 employee for membership in the police and fire plan if the 42.18 employee is employed full-time as specified in clause (1), (2), 42.19 or (3): 42.20 (1) a full-time police officer or a person in charge of a 42.21 designated police or sheriff's department, who by virtue of that 42.22 employment is required by the employing governmental subdivision 42.23 to be and is licensed by the Minnesota peace officer standards 42.24 and training board under sections 626.84 to 626.863, who is 42.25 charged with the prevention and detection of crime, who has the 42.26 full power of arrest, who is assigned to a designated police or 42.27 sheriff's department, and whose primary job is the enforcement 42.28 of the general criminal laws of the state; 42.29 (2) a full-time firefighter or a person in charge of a 42.30 designated fire company or companies who is engaged in the 42.31 hazards of fire fighting; or 42.32 (3) a full-time police officer or firefighter meeting all 42.33 requirements of clause (1) or (2), as applicable, who as part of 42.34 the employment position is periodically assigned to employment 42.35 duties in the same department that are not within the scope of 42.36 this subdivision. 43.1 An individual to which clause (3) applies must contribute 43.2 as a member of the police and fire plan for both the primary and 43.3 secondary services that are provided to the employing 43.4 governmental subdivision. 43.5 Subd. 1a. [POLICE AND FIRE PLAN; OTHER MEMBERS.] (a) A 43.6 person who prior to July 1, 1961, was a member of the police and 43.7 firefundplan, by virtue of being a police officer or 43.8 firefighter, shall, as long as the person remains in either 43.9 position, continue membership in thefundplan. 43.10 (b) A person who was employed by a governmental subdivision 43.11 as a police officer and was a member of the police and firefund43.12 plan on July 1, 1978, by virtue of being a police officer as 43.13 defined by this section on that date, and if employed by the 43.14 same governmental subdivision in a position in the same 43.15 department in which the person was employed on that date, 43.16 continues to be a member of thefundplan, whether or not that 43.17 person has the power of arrest by warrant and is licensed by the 43.18 peace officers standards and training board after that date. 43.19 (c) A person who was employed as a correctional officer by 43.20 Rice county before July 1, 1998, for the duration of employment 43.21 in the correctional position held on July 1, 1998, continues to 43.22 be a member of the public employees police and fire plan, 43.23 whether or not the person has the power of arrest by warrant and 43.24 is licensed by the peace officers standards and training board 43.25 after that date. 43.26(c)(d) A person who was employed by a governmental 43.27 subdivision as a police officer or a firefighter, whichever 43.28 applies, was an active member of the local police or salaried 43.29 firefighters relief association located in that governmental 43.30 subdivision by virtue of that employment as of the effective 43.31 date of the consolidation as authorized by sections 353A.01 to 43.32 353A.10, and has elected coverage by the public employees police 43.33 and firefund benefitplan, shall become a member of the police 43.34 and firefundplan after that date if employed by the same 43.35 governmental subdivision in a position in the same department in 43.36 which the person was employed on that date. 44.1(d) Any other employee serving on a full-time basis as a44.2police officer as defined in subdivision 2 or as a firefighter44.3as defined in subdivision 3 on or after July 1, 1961, shall44.4become a member of the public employees police and fire fund.44.5(e) An employee serving on less than a full-time basis as a44.6police officer shall become a member of the public employees44.7police and fire fund only after a resolution stating that the44.8employee should be covered by the police and fire fund is44.9adopted by the governing body of the governmental subdivision44.10employing the person declaring that the position which the44.11person holds is that of a police officer.44.12(f) An employee serving on less than a full-time basis as a44.13firefighter shall become a member of the public employees police44.14and fire fund only after a resolution stating that the employee44.15should be covered by the police and fire fund is adopted by the44.16governing body of the governmental subdivision employing the44.17person declaring that the position which the person holds is44.18that of a firefighter.44.19(g) A police officer or firefighter employed by a44.20governmental subdivision who by virtue of that employment is44.21required by law to be a member of and to contribute to any44.22police or firefighter relief association governed by section44.2369.77 which has not consolidated with the public employees44.24police and fire fund,(e) Any police officer or firefighter of a 44.25 relief association that has consolidated with the association 44.26 for which the employee has not elected coverage by the public 44.27 employees police and firefund benefitplan as provided in 44.28 sections 353A.01 to 353A.10, or any police officer or 44.29 firefighter to whom section 353.665 applies who has not elected 44.30 coverage by the public employees police and firefund benefit44.31 plan as provided in section 353.665, subdivision 4,shallmust 44.32notbecome a member of the public employees police and firefund44.33 plan, but is not subject to the provisions of sections 353.651 44.34 to 353.659 unless an election for such coverage is made under 44.35 section 353.665, subdivision 4. 44.36 Sec. 20. Minnesota Statutes 1998, section 353.64, 45.1 subdivision 2, is amended to read: 45.2 Subd. 2. [POLICE AND FIRE FUND MEMBERSHIP; PART-TIME 45.3 EMPLOYMENT COVERAGE OPTION.]Before a(a) The governing body of 45.4 a governmental subdivision may adopt a resolution, subject to 45.5 requirements specified in paragraph (b), declaring that a public 45.6 employee employed in a position on a part-time basis by that 45.7 governmental subdivision is covered by the police and fire plan 45.8 for that employment. 45.9 (b) If the public employee's position is related to police 45.10 service, the resolution is valid if the conditions specified in 45.11 paragraph (c) are met. If the public employee's position is 45.12 related to fire service, the resolution is valid if the 45.13 conditions specified in paragraph (d) are met. If the public 45.14 employee in the applicable position is periodically assigned to 45.15 employment duties not within the scope of this subdivision, the 45.16 resolution is considered valid if the governing body of the 45.17 governmental subdivision declares that the public employee's 45.18 position, for primary services provided, satisfies all of the 45.19 requirements of subdivision 1, clause (3), other than the 45.20 requirement of full-time employment. 45.21 (c) For the governing bodymayof the governmental 45.22 subdivision to declare a position to be that of a police 45.23 officer, the duties and qualifications of the person so employed 45.24 must,asat a minimum,include employment as an officer of a45.25designated police department or sheriff's office or person in45.26charge of a designated police department or sheriff's office45.27whose primary job it is to enforce the law, who is licensed by45.28the Minnesota board of peace officer standards and training45.29under sections 626.84 to 626.863, who is engaged in the hazards45.30of protecting the safety and property of others, and who has the45.31power to arrest by warrant.45.32A police officer who is periodically assigned to employment45.33duties not within the scope of this subdivision may contribute45.34to the public employees police and fire fund for all service, if45.35a resolution declaring that the primary position held by the45.36person is that of a police officer, is adopted by the governing46.1body of the department, and is promptly submitted to the46.2executive director.satisfy all of the requirements of 46.3 subdivision 1, clause (1), other than the requirement of 46.4 full-time employment. 46.5 (d) For the governing body of a governmental subdivision to 46.6 declare a position to be that of a firefighter, the duties and 46.7 qualifications of the person so employed must, at a minimum, 46.8 satisfy all of the requirements of subdivision 1, clause (2), 46.9 other than the requirement of full-time employment. 46.10 Sec. 21. Minnesota Statutes 1998, section 353.64, 46.11 subdivision 3, is amended to read: 46.12 Subd. 3. [POLICE AND FIRE FUND MEMBERSHIP; EXCLUSION.] 46.13Before a governing body may declare a position to be that of a46.14firefighter, the duties of the person so employed must, as a46.15minimum, include services as an employee of a designated fire46.16company or person in charge of a designated fire company or46.17companies who is engaged in the hazards of fire fighting. A46.18firefighter who is periodically assigned to employment duties46.19outside the scope of firefighting may contribute to the public46.20employees police and fire fund for all service, if a resolution46.21declaring that the primary position held by the person is that46.22of a firefighter, is adopted by the governing body of the46.23company or companies, and is promptly submitted to the executive46.24director.A police officer or firefighter employed by a 46.25 governmental subdivision who by virtue of that employment is 46.26 required by law to be a member of and to contribute to any 46.27 police or firefighter relief association governed by section 46.28 69.77 which has not consolidated with the public employees 46.29 police and fire plan is not eligible to become a member of the 46.30 public employees police and fire plan. 46.31 Sec. 22. Minnesota Statutes 1998, section 353.64, 46.32 subdivision 4, is amended to read: 46.33 Subd. 4. [RESOLUTION FILING.] (a) A copy of the resolution 46.34 of the governing body declaring a position to be that of police 46.35 officer or firefighter shall be promptly filed with the board of 46.36 trustees and shall be irrevocable. 47.1 (b) Following the receipt of adequate notice from the 47.2 association, if a valid resolution is not filed with the public 47.3 employees retirement association within six months following the 47.4 date of that notice, any contributions or deductions made to the 47.5 police and fire fund for the applicable employment are deemed to 47.6 be contributions or deductions transmitted in error under 47.7 section 353.27, subdivision 7a. 47.8 Sec. 23. Minnesota Statutes 1998, section 353.656, 47.9 subdivision 1, is amended to read: 47.10 Subdivision 1. [IN LINE OF DUTY; COMPUTATION OF BENEFITS.] 47.11 A member of the police and firefundplan who becomes disabled 47.12 and physically unfit to perform duties as a police officeror, 47.13 firefightersubsequent to June 30, 1973, or paramedic as defined 47.14 under section 353.64, subdivision 10, as a direct result of an 47.15 injury, sickness, or other disability incurred in or arising out 47.16 of any act of duty, which has or is expected to render the 47.17 member physically or mentally unable to perform the duties as a 47.18 police officeror, firefighter, or paramedic as defined under 47.19 section 353.64, subdivision 10, for a period of at least one 47.20 year, shall receive disability benefits during the period of 47.21 such disability. The benefits must be in an amount equal to 60 47.22 percent of the "average salary"underas defined in section 47.23 353.651, subdivision32, plus an additional percent specified 47.24 in section 356.19, subdivision 6, ofsaidthat average salary 47.25 for each year of service in excess of 20 years.ShouldIf the 47.26 disability under this subdivisionoccuroccurs before the member 47.27 has at least five years of allowable service credit in the 47.28 police and firefundplan, the disability benefit must be 47.29 computed on the "average salary" from which deductions were made 47.30 for contribution to the police and fire fund. 47.31 Sec. 24. Minnesota Statutes 1998, section 353.656, 47.32 subdivision 3, is amended to read: 47.33 Subd. 3. [NONDUTY DISABILITY BENEFIT.] Any member of the 47.34 police and fire plan who becomes disabled after not less than 47.35 one year of allowable service because of sickness or injury 47.36 occurring while not on duty as a police officeror, firefighter, 48.1 or paramedic as defined under section 353.64, subdivision 10, 48.2 and by reason of that sickness or injury the member has been or 48.3 is expected to be unable to perform the duties as a police 48.4 officeror, firefighter, or paramedic as defined under section 48.5 353.64, subdivision 10, for a period of at least one year, is 48.6 entitled to receive a disability benefit. The benefit must be 48.7 paid in the same manner as if the benefit were paid under 48.8 section 353.651. If a disability under this subdivision occurs 48.9 after one but in less than 15 years of allowable service, the 48.10 disability benefit must be the same as though the member had at 48.11 least 15 years service. For a member who is employed as a 48.12 full-time firefighter by the department of military affairs of 48.13 the state of Minnesota, allowable service as a full-time state 48.14 military affairs department firefighter credited by the 48.15 Minnesota state retirement system may be used in meeting the 48.16 minimum allowable service requirement of this subdivision. 48.17 Sec. 25. Minnesota Statutes 1998, section 353.71, 48.18 subdivision 2, is amended to read: 48.19 Subd. 2. [DEFERRED ANNUITY COMPUTATION; AUGMENTATION.] (a) 48.20 The deferred annuity, if any,accruing under subdivision 1, or 48.21 under sections 353.34, subdivision 3, and 353.68, subdivision 4, 48.22 must be computedin the manner provided in said sections,on the 48.23 basis of allowable service prior to the termination of public 48.24 service and augmented as providedhereinin this paragraph. The 48.25 required reserves applicable to a deferred annuity,or to an48.26annuity for which a former member was eligible but had not48.27applied,or to any deferred segment of an annuityshallmust be 48.28 determined as ofthe date the annuity begins to accrue and shall48.29be augmented fromthe first day of the month following the month 48.30 in which the former member ceased to be a public employee, or 48.31 July 1, 1971, whichever is later, to the first day of the month48.32in which the annuity begins to accrue,. These required reserves 48.33 must be augmented at the rate of five percentper annumannually 48.34 compounded annually until January 1, 1981, and at the rate of 48.35 three percent thereafter until January 1 of the year following 48.36 the year in which the former member attains age 55. From that 49.1 date to the effective date of retirement, the rate is five 49.2 percentper annumcompounded annually. If a person has more 49.3 than one period of uninterrupted service, the required reserves 49.4 related to each periodshallmust be augmentedby interest49.5pursuant to this subdivisionas specified in this paragraph. 49.6 The sum of the augmented required reservesso determined shall49.7beis the present value of the annuity. Uninterrupted service 49.8 for the purpose of this subdivisionshall meanmeans periods of 49.9 covered employment during which the employee has not been 49.10 separated from public service for more than two years. If a 49.11 person repays a refund, the restored servicerestored thereby49.12shallmust be considered as continuous with the next period of 49.13 service for which the employee has credit with this association. 49.14The formula percentages used for each period of uninterrupted49.15service shall be those as would be applicable to a new employee.49.16 This sectionshallmust not reduce the annuity otherwise payable 49.17 under this chapter. Thissubdivisionparagraphshall apply49.18 applies to individuals who become deferred annuitantsof record49.19 on or after July 1, 1971, and to employees who thereafter become49.20deferred annuitants; it shall also apply. For a member who 49.21 became a deferred annuitant before July 1, 1971, the paragraph 49.22 applies from July 1, 1971,toif the formermembers who make49.23applicationactive member applies for an annuity after July 1, 49.24 1973. 49.25 (b) The retirement annuity or disability benefit of, or the 49.26 survivor benefit payable on behalf of, a former member who 49.27 terminated service before July 1, 1997, or the survivor benefit 49.28 payable on behalf of a basic or police and fire member who was 49.29 receiving disability benefits before July 1, 1997, which isnot49.30 first payableuntilafter June 30, 1997, must be increased on an 49.31 actuarial equivalent basis to reflect the change in the 49.32 postretirement interest rate actuarial assumption under section 49.33 356.215, subdivision 4d, from five percent to six percent under 49.34 a calculation procedure and tables adopted by the board and 49.35 approved by the actuary retained by the legislative commission 49.36 on pensions and retirement. 50.1 Sec. 26. Minnesota Statutes 1998, section 353B.11, 50.2 subdivision 3, is amended to read: 50.3 Subd. 3. [AMOUNT; SURVIVING SPOUSE BENEFIT.] (a) The 50.4 surviving spouse benefit shall be 30 percent of the salary base 50.5 for the former members of the following consolidating relief 50.6 associations: 50.7 (1) Albert Lea firefighters relief association; 50.8 (2) Albert Lea police relief association; 50.9 (3) Anoka police relief association; 50.10 (4) Austin police relief association; 50.11 (5) Brainerd police benefit association; 50.12 (6) Crookston police relief association; 50.13 (7) Faribault fire department relief association; and 50.14 (8) West St. Paul firefighters relief association. 50.15 (b) The surviving spouse benefit shall be 25 percent of the 50.16 salary base for the former members of the following 50.17 consolidating relief associations: 50.18 (1) Chisholm police relief association; 50.19 (2) Duluth firefighters relief association; 50.20 (3) Duluth police pension association; 50.21 (4) Fairmont police benefit association; 50.22 (5) Red Wing fire department relief association; 50.23 (6) South St. Paul police relief association; and 50.24 (7) West St. Paul police relief association. 50.25 (c) The surviving spouse benefit shall be 24 percent of the 50.26 salary base for the former members of the following 50.27 consolidating relief associations: 50.28 (1) Fridley police pension association; 50.29 (2) Richfield police relief association; 50.30 (3) Rochester fire department relief association; 50.31 (4) Rochester police relief association; 50.32 (5) Winona fire department relief association; and 50.33 (6) Winona police relief association. 50.34 (d) The surviving spouse benefit shall be 40 percent of the 50.35 salary base for the former members of the following 50.36 consolidating relief associations: 51.1 (1) Columbia Heights fire department relief association, 51.2 paid division; and 51.3 (2) New Ulm police relief association. 51.4 (e) The surviving spouse benefit shall be$250 per month30 51.5 percent of the salary base for the former members of the 51.6 following consolidating relief associations: 51.7 (1) Hibbing firefighters relief association; and 51.8 (2) Hibbing police relief association. 51.9 (f) The surviving spouse benefit shall be 23.75 percent of 51.10 the salary base for the former members of the following 51.11 consolidating relief associations: 51.12 (1) Crystal police relief associations; and 51.13 (2) Minneapolis police relief association. 51.14 (g) The surviving spouse benefit shall be 32 percent of the 51.15 salary base for the former members of the following 51.16 consolidating relief associations: 51.17 (1) St. Cloud fire department relief association; and 51.18 (2) St. Cloud police relief association. 51.19 (h) The surviving spouse benefit shall be one-half of the 51.20 service pension or disability benefit which the deceased member 51.21 was receiving as of the date of death, or of the service pension 51.22 which the deferred member would have been receiving if the 51.23 service pension had commenced as of the date of death or of the 51.24 service pension which the active member would have received 51.25 based on the greater of the allowable service credit of the 51.26 person as of the date of death or 20 years of allowable service 51.27 credit if the person would have been eligible as of the date of 51.28 death, for the former members of the following consolidating 51.29 relief associations: 51.30 (1) Virginia fire department relief association; and 51.31 (2) Virginia police relief association. 51.32 (i) The surviving spouse benefit shall be the following for 51.33 the former members of the consolidating relief associations as 51.34 indicated: 51.35 (1) 30 percent of the salary base, reduced by any amount 51.36 awarded or payable from the service pension or disability 52.1 benefit of the deceased former firefighter to a former spouse of 52.2 the member by virtue of the legal dissolution of the member's 52.3 marriage to the former spouse if the surviving spouse married 52.4 the member after the time of separation from active service, 52.5 Austin firefighters relief association; 52.6 (2) 27.333 percent of the salary base, or one-half of the 52.7 service pension payable to or accrued by the deceased former 52.8 member, whichever is greater, Bloomington police relief 52.9 association; 52.10 (3) 72.25 percent of the salary base, Buhl police relief 52.11 association; 52.12 (4) 50 percent of the service pension which the active 52.13 member would have received based on allowable service credit to 52.14 the date of death and prospective service from the date of death 52.15 until the date on which the person would have attained the 52.16 normal retirement age, 50 percent of the service pension which 52.17 the deferred member would have been receiving if the service 52.18 pension had commenced as of the date of death or $175 per month 52.19 if the deceased member was receiving a service pension or 52.20 disability benefit as of the date of death, Chisholm 52.21 firefighters relief association; 52.22 (5) two-thirds of the service pension or disability benefit 52.23 which the deceased member was receiving as of the date of death, 52.24 or of the service pension which the deferred member would have 52.25 been receiving if the service pension had commenced as of the 52.26 date of death or of the service pension which the active member 52.27 would have received based on the greater of the allowable 52.28 service credit of the person as of the date of death or 20 years 52.29 of allowable service credit if the person would have been 52.30 eligible as of the date of death, Columbia Heights police relief 52.31 association; 52.32 (6) the greater of $300 per month or one-half of the 52.33 service pension or disability benefit which the deceased member 52.34 was receiving as of the date of death, or of the service pension 52.35 which the deferred member would have been receiving if the 52.36 service pension had commenced as of the date of death or of the 53.1 service pension which the active member would have received 53.2 based on the allowable service credit of the person as of the 53.3 date of death if the person would have been eligible as of the 53.4 date of death, Crookston fire department relief association; 53.5 (7) $100 per month, Faribault police benefit association; 53.6 (8) 60 percent of the service pension or disability benefit 53.7 which the deceased member was receiving as of the date of death, 53.8 or of the service pension which the deferred member would have 53.9 been receiving if the service pension had commenced as of the 53.10 date of death or of the service pension which the active member 53.11 would have received based on the allowable service credit of the 53.12 person as of the date of death if the person would have been 53.13 eligible as of the date of death, Mankato fire department relief 53.14 association; 53.15 (9) $175 per month, Mankato police benefit association; 53.16 (10) 26.25 percent of the salary base, Minneapolis fire 53.17 department relief association; 53.18 (11) equal to the service pension or disability benefit 53.19 which the deceased member was receiving as of the date of death, 53.20 or of the service pension which the deferred member would have 53.21 been receiving if the service pension had commenced as of the 53.22 date of death or of the service pension which the active member 53.23 would have received based on the allowable service credit of the 53.24 person as of the date of death if the person would have been 53.25 eligible as of the date of death, Red Wing police relief 53.26 association; 53.27 (12) 78.545 percent of the benefit amount payable prior to 53.28 the death of the deceased active, disabled, deferred, or retired 53.29 firefighter if that firefighter's benefit was 55 percent of 53.30 salary or would have been 55 percent of salary if the 53.31 firefighter had survived to begin benefit receipt; or 80 percent 53.32 of the benefit amount payable prior to the death of the deceased 53.33 active, disabled, deferred, or retired firefighter if that 53.34 firefighter's benefit was 54 percent of salary or would have 53.35 been 54 percent of salary if the firefighter had survived to 53.36 begin benefit receipt, Richfield fire department relief 54.1 association; 54.2 (13) 40 percent of the salary base for a surviving spouse 54.3 of a deceased active member, disabled member, or retired or 54.4 deferred member with at least 20 years of allowable service, or 54.5 the prorated portion of 40 percent of the salary base that bears 54.6 the same relationship to 40 percent that the deceased member's 54.7 years of allowable service bear to 20 years of allowable service 54.8 for the surviving spouse of a deceased retired or deferred 54.9 member with at least ten but less than 20 years of allowable 54.10 service, St. Louis Park fire department relief association; 54.11 (14) 26.6667 percent of the salary base, St. Louis Park 54.12 police relief association; 54.13 (15) 27.5 percent of the salary base, St. Paul fire 54.14 department relief association; 54.15 (16)2027.5 percent of the salary base, St. Paul police 54.16 relief association; and 54.17 (17) 27 percent of the salary base, South St. Paul 54.18 firefighters relief association. 54.19 Sec. 27. Minnesota Statutes 1998, section 354.05, 54.20 subdivision 2, is amended to read: 54.21 Subd. 2. [TEACHER.] (a) "Teacher" means: 54.22 (1) a person who renders service as a teacher, supervisor, 54.23 principal, superintendent, librarian, nurse, counselor, social 54.24 worker, therapist, or psychologist in the public schools of the 54.25 state located outside of the corporate limits of the cities of 54.26 the first classas those cities were so classified on January 1,54.271979,or in the Minnesota state colleges and universities 54.28 system, or in any charitable, penal, or correctional 54.29 institutions of a governmental subdivision, or who is engaged in 54.30 educational administration in connection with the state public 54.31 school system, including the Minnesota state colleges and 54.32universityuniversities system, but excluding the University of 54.33 Minnesota, whether the position be a public office or an 54.34 employment, not including members or officers of any general 54.35 governing or managing board or body; 54.36 (2) an employee of the teachers retirement association 55.1 unless the employee is covered by the Minnesota state retirement 55.2 systemby virtue ofdue to prior employment bythe association55.3 that system; 55.4 (3) a person who renders teaching service on a part-time 55.5 basis and who also renders other services for a single employing 55.6 unit.In such cases, the executive director shall determine55.7whether all or none of the combined service is covered by the55.8association, howeverA person whose teaching service comprises 55.9 at least 50 percent of the combined employment salary is a 55.10 member of the association for all services with the single 55.11 employing unit. If the person's teaching service comprises less 55.12 than 50 percent of the combined employment salary, the executive 55.13 director must determine whether all or none of the combined 55.14 service is covered by the association. 55.15 (b)The termTeacher does not mean: 55.16 (1)an employee described in section 352D.02, subdivision55.171a, who is hired after the effective date of Laws 1986, chapter55.18458;55.19(2)a person who works for a school or institution as an 55.20 independent contractor as defined by the Internal Revenue 55.21 Service; 55.22(3)(2) a person employed in subsidized on-the-job 55.23 training, work experience or public service employment as an 55.24 enrollee under the federal Comprehensive Employment and Training 55.25 Act from and after March 30, 1978, unless the person has, as of 55.26 the later of March 30, 1978, or the date of employment, 55.27 sufficient service credit in the retirement association to meet 55.28 the minimum vesting requirements for a deferred retirement 55.29 annuity, or the employer agrees in writing on forms prescribed 55.30 by the executive director to make the required employer 55.31 contributions, including any employer additional contributions, 55.32 on account of that person from revenue sources other than funds 55.33 provided under the federal Comprehensive Training and Employment 55.34 Act, or the person agrees in writing on forms prescribed by the 55.35 executive director to make the required employer contribution in 55.36 addition to the required employee contribution; 56.1(4)(3) a person holding a part-time adult supplementary 56.2 technical college license who renders part-time teaching service 56.3 or a customized trainer as defined by the Minnesota state 56.4 colleges and universities system in a technical college if (i) 56.5 the service is incidental to the regular nonteaching occupation 56.6 of the person; and (ii) the applicable technical college 56.7 stipulates annually in advance that the part-time teaching 56.8 service or customized training service will not exceed 300 hours 56.9 in a fiscal year and retains the stipulation in its records; and 56.10 (iii) the part-time teaching service or customized training 56.11 service actually does not exceed 300 hours in a fiscal year; or 56.12(5)(4) a person exempt from licensurepursuant tounder 56.13 section 122A.30. 56.14 Sec. 28. Minnesota Statutes 1998, section 354.05, 56.15 subdivision 35, is amended to read: 56.16 Subd. 35. [SALARY.] (a) "Salary" means the periodic 56.17 compensation, upon which member contributions are requiredand56.18made, that is paid to a teacher before employee-paid fringe56.19benefits, tax sheltered annuities, deferred compensation, or any56.20combination of these employee-paid items are deductedbefore 56.21 deductions for deferred compensation, supplemental retirement 56.22 plans, or other voluntary salary reduction programs. 56.23 (b) "Salary" does not mean: 56.24 (1) lump sum annual leave payments; 56.25 (2) lump sum wellness and sick leave payments; 56.26 (3)payments in lieu of any employer-paid group insurance56.27coverage;56.28(4) payments for the difference between single and family56.29premium rates that may be paid to a member with single coverage;56.30(5) employer-paid fringe benefits including, but not56.31limited to, flexible spending accounts, cafeteria plans, health56.32care expense accounts, day care expenses, or automobile56.33allowances and expenses;employer-paid amounts used by an 56.34 employee toward the cost of insurance coverage, employer-paid 56.35 fringe benefits, flexible spending accounts, cafeteria plans, 56.36 health care expense accounts, day care expenses, or any payments 57.1 in lieu of any employer-paid group insurance coverage, including 57.2 the difference between single and family rates that may be paid 57.3 to a member with single coverage and certain amounts determined 57.4 by the executive director to be ineligible; 57.5(6)(4) any form of payment made in lieu of any other 57.6 employer-paid fringe benefit or expense; 57.7(7)(5) any form of severance payments; 57.8(8)(6) workers' compensation payments; 57.9(9)(7) disability insurance payments including 57.10 self-insured disability payments; 57.11(10)(8) payments to school principals and all other 57.12 administrators for services in addition to the normal work year 57.13 contract if these additional services are performed on an 57.14 extended duty day, Saturday, Sunday, holiday, annual leave day, 57.15 sick leave day, or any other nonduty day; 57.16(11)(9) payments under section 356.24, subdivision 1, 57.17 clause (4); and 57.18(12)(10) payments made under section 122A.40, subdivision 57.19 12, except for payments for sick leave accumulated under the 57.20 provisions of a uniform school district policy that applies 57.21 equally to all similarly situated persons in the district. 57.22 Sec. 29. Minnesota Statutes 1998, section 354.091, is 57.23 amended to read: 57.24 354.091 [SERVICE CREDIT.] 57.25 (a) In computingthe time of service of a teacher, the57.26length of a legal school year in the district or institution57.27where such service was rendered must constitute a year under57.28sections 354.05 to 354.10, provided the year is not less than57.29the legal minimum school year of this state.service credit, 57.30 nopersonteacher shall receive credit for more than one year of 57.31 teaching service for any fiscal year. Commencing July 1, 1961,: 57.32 (1) if a teacher teachesonly a fractional part of a day,57.33credit must be given for a day of teaching service for eachless 57.34 than five hourstaught, andin a day, service credit must be 57.35 given for the fractional part of the day as the term of service 57.36 performed bears to five hours; 58.1 (2) if a teacher teaches five or more hours in a day, 58.2 service credit must be given for only one day; 58.3 (3) if a teacher teaches at least 170 full days in any 58.4 fiscal year, service credit must be given for a full year of 58.5 teaching service,; and 58.6(3)(4) if a teacher teaches for only a fractional part of 58.7 the year, service credit must be given for such fractional part 58.8 of the year as thetermperiod of servicerenderedperformed 58.9 bears to 170 days. 58.10 (b) Aperson who teaches in the state colleges and58.11university systemteacher shall receive a full year of service 58.12 credit based on the number of days in thesystem'semployer's 58.13 full school year if it is less than 170 days. Teaching service 58.14 performedprior tobefore July 1, 1961, must be computed under 58.15 the law in effect at the time it wasrenderedperformed. 58.16 (c) A teachershalldoes not lose or gain retirement 58.17 service credit as a result of the employer converting to 58.18 afour-day work weekflexible or alternate work schedule. If 58.19 the employerdoes convertconverts to afour-day work week58.20 flexible or alternate work schedule, the forms for reporting and 58.21 the procedures for determining service creditshallmust be 58.22 determined by the executive director with the approval of the 58.23 board of trustees. 58.24 Sec. 30. Minnesota Statutes 1998, section 354.092, 58.25 subdivision 2, is amended to read: 58.26 Subd. 2. [PAY RATE; CERTIFICATION.] A sabbatical leave 58.27 must be compensated by a minimum of one-third of the salary that 58.28 the member received for a comparable period during the prior 58.29 fiscal year.Before the end of the fiscal year during which any58.30sabbatical leave is grantedUpon granting a sabbatical leave, 58.31 the employing unit granting the leave must certify the leave to 58.32 the association on a form specified by the executive director. 58.33 Sec. 31. Minnesota Statutes 1998, section 354.093, is 58.34 amended to read: 58.35 354.093 [PARENTALOR MATERNITYLEAVE.] 58.36Before the end of the fiscal year during which any parental59.1or maternity leave is grantedUpon granting a parental leave for 59.2 the birth or adoption of a child, the employing unit granting 59.3 the leave must certify the leave to the association on a form 59.4 specified by the executive director. A member of the 59.5 association granted parentalor maternityleave of absence by 59.6 the employing unit is entitled to service credit not to exceed 59.7 one year for the period of leave upon payment to the association 59.8 by the end of the fiscal year following the fiscal year in which 59.9 the leave of absence terminated. This payment mustinclude59.10 equal the total required employee,and employer contributions, 59.11 and amortization contributions, if any, for the period of leave 59.12 prescribed in section 354.42. The payment must be based on the 59.13 member's average full-time monthly salary rate on the date the 59.14 leave of absence commenced, and must be without interest. 59.15 Notwithstanding the provisions of any agreements to the 59.16 contrary,employee and employerthe contributions specified in 59.17 this section may not be made to receive allowable service credit 59.18 under this section if the member does not retain the right to 59.19 full reinstatement at the end of the leave. 59.20 Sec. 32. Minnesota Statutes 1998, section 354.094, 59.21 subdivision 1, is amended to read: 59.22 Subdivision 1. [SERVICE CREDIT CONTRIBUTIONS.]Before the59.23end of the fiscal year during whichUpon granting any extended 59.24 leave of absenceis granted pursuant tounder section 122A.46 or 59.25 136F.43, the employing unit granting the leave must certify the 59.26 leave to the association on a form specified by the executive 59.27 director. A member granted an extended leave of absence 59.28pursuant tounder section 122A.46 or 136F.43 may pay employee 59.29 contributions and receive allowable service credit toward 59.30 annuities and other benefits under this chapter, for each year 59.31 of the leave, provided that the member and the employing board 59.32 make the required employer contribution in any proportion they 59.33 may agree upon, during the period of the leave.which shallThe 59.34 leave period must not exceed five years. A member may not 59.35 receive more than five years of allowable service credit under 59.36 this section. The employee and employer contributions must be 60.1 based upon the rates of contribution prescribed by section 60.2 354.42 for the salary received during the year immediately 60.3 preceding the extended leave. Payments for the years for which 60.4 a member is receiving service credit while on extended leave 60.5 must be made on or before the later of June 30 of each fiscal 60.6 year for which service credit is received or within 30 days 60.7 after first notification of the amount due, if requested by the 60.8 member, is given by the association. No payment is permitted 60.9 after the following September 30. Payments received after June 60.10 30 must include interest at an annual rate of 8.5 percent from 60.11 June 30 through the end of the month in which payment is 60.12 received. Notwithstanding the provisions of any agreements to 60.13 the contrary, employee and employer contributions may not be 60.14 made to receive allowable service credit if the member does not 60.15 have full reinstatement rights as provided in section 122A.46 or 60.16 136F.43, both during and at the end of the extended leave. 60.17 Sec. 33. Minnesota Statutes 1998, section 354.10, 60.18 subdivision 2, is amended to read: 60.19 Subd. 2. [AUTOMATIC DEPOSITS.] Upon receipt of the 60.20 properly completed forms as provided by the executive director, 60.21 the annuityor, benefit or refund amount may be electronically 60.22 transferred or the annuity or benefit check may be mailed toa60.23banking institution, savings association, or credit unionany 60.24 financial institution associated with the National Automated 60.25 Clearinghouse Association or a comparable successor organization 60.26 for deposit to the recipient's individual account or joint 60.27 account with the recipient's spouse or any other person 60.28 designated by the recipient. An overpayment to a joint account 60.29 after the death of the annuity or benefit recipient must be 60.30 repaid to the fund by the joint tenant if the overpayment is not 60.31 repaid to the fund by thebanking institution, savings60.32association, or credit unionfinancial institution associated 60.33 with the National Automated Clearinghouse Association or its 60.34 successor. The board may prescribe the conditions which govern 60.35 these procedures. 60.36 Sec. 34. Minnesota Statutes 1998, section 354.35, is 61.1 amended to read: 61.2 354.35 [OPTIONAL ACCELERATED RETIREMENT ANNUITY BEFOREAGE61.365NORMAL RETIREMENT AGE.] 61.4 Any coordinated member who retires before normal retirement 61.5 age65may elect to receive an optional accelerated retirement 61.6 annuity from the association which provides for different 61.7 annuity amounts over different periods of retirement.The61.8election of this optional accelerated retirement annuity is61.9exercised by making an application to the board on a form61.10provided by the executive director.The optional accelerated 61.11 retirement annuity must take the form of an annuity payable for 61.12 the period before the member attains normal retirement age65in 61.13 a greater amount than the amount of the annuity calculated under 61.14 section 354.44 on the basis of the age of the member at 61.15 retirement, but the optional accelerated retirement annuity must 61.16 be the actuarial equivalent of the member's annuity computed on 61.17 the basis of the member's age at retirement. The greater amount 61.18 must be paid until the retiree reaches normal retirement age6561.19 and at that time the payment from the association must be 61.20 reduced. For each year the retiree is under normal retirement 61.21 age65, up to five percent of the total life annuity required 61.22 reserves may be used to accelerate the optional retirement 61.23 annuity under this section. At retirement, members who retire 61.24 before age 62 may elect to have the age specified in this 61.25 section be 62 instead of65the normal retirement age.This61.26election is irrevocable and may be made only once on the61.27application form provided by the executive director.The method 61.28 of computing the optional accelerated retirement annuity 61.29 provided in this section is established by the board of 61.30 trustees. In establishing the method of computing the optional 61.31 accelerated retirement annuity, the board of trustees must 61.32 obtain the written approval of the commission-retained actuary. 61.33 The written approval must be a part of the permanent records of 61.34 the board of trustees. The election of an optional accelerated 61.35 retirement annuity is exercised by making an application on a 61.36 form provided by the executive director. 62.1 Sec. 35. Minnesota Statutes 1998, section 354.46, 62.2 subdivision 2a, is amended to read: 62.3 Subd. 2a. [SURVIVOR COVERAGE TERM CERTAIN.] In lieu of the 62.4 100 percent optional annuity under subdivision 2, or a refund 62.5 under section 354.47, subdivision 1, the surviving spouse of a 62.6 deceased member may elect to receive survivor coverage in a term 62.7 certain of five, ten, 15, or 20 years, but monthly payments must 62.8 not exceed 75 percent of the average high-five monthly salary of 62.9 the deceased member. The monthly term certain annuity must be 62.10 actuarially equivalent to the 100 percent optional annuity under 62.11 subdivision 2. 62.12 If a surviving spouse elects a term certain payment and 62.13 dies before the expiration of the specified term certain period, 62.14 the commuted value of the remaining annuity payments must be 62.15 paid in a lump sum to thesurvivor'ssurviving spouse's estate. 62.16 Sec. 36. Minnesota Statutes 1998, section 354.47, 62.17 subdivision 1, is amended to read: 62.18 Subdivision 1. [DEATH BEFORE RETIREMENT.](1)(a) If a 62.19 member dies before retirement and is covered under section 62.20 354.44, subdivision 2, and neither an optional annuity, nor a 62.21 reversionary annuity, nor a benefit under section 354.46, 62.22 subdivision 1, is payable to the survivors if the member was a 62.23 basic member, then the surviving spouse, or if there is no 62.24 surviving spouse, the designated beneficiary is entitled to an 62.25 amount equal to the member's accumulated deductions with 62.26 interest credited to the account of the member to the date of 62.27 death of the member. If the designated beneficiary is a minor, 62.28 interest must be credited to the date the beneficiary reaches 62.29 legal age, or the date of receipt, whichever is earlier. 62.30(2)(b) If a member dies before retirement and is covered 62.31 under section 354.44, subdivision 6, and neither an optional 62.32 annuity, nor reversionary annuity, nor the benefit described in 62.33 section 354.46, subdivision 1, is payable to the survivors if 62.34 the member was a basic member, then the surviving spouse, or if 62.35 there is no surviving spouse, the designated beneficiary is 62.36 entitled to an amount equal to the member's accumulated 63.1 deductions credited to the account of the member as of June 30, 63.2 1957, and from July 1, 1957, to the date of death of the member, 63.3 the member's accumulated deductions plus six percent interestat63.4the rate of six percent per annumcompounded annually. 63.5 (c) If the designated beneficiary under paragraph (b) is a 63.6 minor, any interest credited under that paragraph must be 63.7 credited to the date the beneficiary reaches legal age, or the 63.8 date of receipt, whichever is earlier. 63.9 Sec. 37. Minnesota Statutes 1998, section 354.48, 63.10 subdivision 6, is amended to read: 63.11 Subd. 6. [REGULAR PHYSICAL EXAMINATIONS.] At least once 63.12 each year during the first five years following the allowance of 63.13 a disability benefit to any member, and at least once in every 63.14 three-year period thereafter, the executive director shall 63.15 require the disability beneficiary to undergo a medical 63.16 examinationto be made at the place of residence of such person,63.17or at any other place mutually agreed upon,by a physician or 63.18 physicians engaged by the executive director. If any 63.19 examination indicates that the member is no longer permanently 63.20 and totally disabled or that the member is engaged or is able to 63.21 engage in a substantial gainful occupation, payments of the 63.22 disability benefit by the association shall be discontinued. 63.23 The payments shall discontinue as soon as the member is 63.24 reinstated to the payroll following sick leave, but payment may 63.25 not be made for more than 60 days after physicians engaged by 63.26 the executive director find that the person is no longer 63.27 permanently and totally disabled. 63.28 Sec. 38. Minnesota Statutes 1998, section 354.49, 63.29 subdivision 1, is amended to read: 63.30 Subdivision 1. [ENTITLEMENT, APPLICATION.] A person who 63.31 ceases to render teaching service in any school or institution 63.32 to which the provisions of this chapter apply is entitled to a 63.33 refund provided in subdivision 2, or a deferred retirement 63.34 annuity under section 354.55, subdivision 11. An application 63.35 for a refund must not be made sooner than 30 days after 63.36 termination of teaching service if the applicant has not again 64.1 become a teacher. This payment must be made within9045 days 64.2 after the receipt of an application for a refund or upon 64.3completion of processing the report made pursuant to section64.4354.52, subdivision 2the receipt of member reporting data under 64.5 section 354.52, subdivision 4a, and payroll cycle data under 64.6 section 354.52, subdivision 4b, whichever is later. 64.7 Sec. 39. Minnesota Statutes 1998, section 354.52, 64.8 subdivision 3, is amended to read: 64.9 Subd. 3. [DUTY OF FINANCE OFFICIALSDEDUCTION 64.10 REQUIREMENTS.]It is the duty of each person, officer, school64.11board, or managing body required by law to draw the warrants or64.12orders for payment of salaries to teachers toEvery pay period, 64.13 each employer shall deduct and withhold fromallthe salarypaid64.14each pay period toof every teacher who is a member of the fund 64.15 the amountwhich the teacher is required to pay into the fund64.16and,required under section 354.42. At the time of each 64.17 deduction,tothe employer shall also furnish to each teacher a 64.18 statement showing the amount of the deduction. 64.19 Sec. 40. Minnesota Statutes 1998, section 354.52, 64.20 subdivision 4, is amended to read: 64.21 Subd. 4. [REPORTING AND REMITTANCE REQUIREMENTS.]At least64.22once each month, a representative authorized byAnemploying64.23unitemployer shalltransmitremit all amounts due to the 64.24 association and furnish asignedstatement indicating the amount 64.25 due and transmitted with any other information required by the 64.26 executive director.Signing the statement has the force and64.27effect of an oath as to the correctness of the amount due and64.28transmitted.If an amount dueandis nottransmitted64.29 remitted to the association within seven calendar days of the 64.30 payroll warrant, the amount accrues interest at an annual rate 64.31 of 8.5 percent compounded annuallycommencing 15 days afterfrom 64.32 the due datefirst dueuntil the amount istransmitted and must64.33be paid by the employing unit. These paymentsreceived by the 64.34 association. All amounts due and otheremploying unitemployer 64.35 obligations not remitted within 60 days of notification by the 64.36 association must be certified to the commissioner of finance who 65.1 shall deduct the amount from any state aid or appropriation 65.2 amount applicable to the employing unit. 65.3 Sec. 41. Minnesota Statutes 1998, section 354.52, 65.4 subdivision 4a, is amended to read: 65.5 Subd. 4a. [MEMBER DATA REPORTING REQUIREMENTS.] (a) An 65.6 employing unitshallmust initially provide thefollowingmember 65.7 data specified in paragraph (b) or any of that data not 65.8 previously provided to the association for payroll warrants 65.9 dated after June 30, 1995, in a format prescribed by the 65.10 executive director. Data changes and the dates of those changes 65.11 under this subdivision must be reported to the association on an 65.12 ongoing basisforwithin 14 calendar days after the date of the 65.13 end of the payroll cycle in which they occur. These data 65.14 changes must be reported with the payroll cycle data under 65.15 subdivision 4b. 65.16 (b) Data on the member includes: 65.17 (1) legal name, address, date of birth, association member 65.18 number, employer-assigned employee number, and social security 65.19 number; 65.20 (2) association status, including, but not limited to, 65.21 basic, coordinated, exempt annuitant, exempt technical college 65.22 teacher, and exempt independent contractor or consultant; 65.23 (3) employment status, including, but not limited to, full 65.24 time, part time, intermittent, substitute, or part-time 65.25 mobility; 65.26 (4) employment position, including, but not limited to, 65.27 teacher, superintendent, principal, administrator, or other; 65.28 (5) employment activity, including, but not limited to, 65.29 hire, termination, resumption of employment, disability, or 65.30 death; 65.31 (6) leaves of absence; 65.32 (7) county district number assigned by the association for 65.33 the employing unit; 65.34 (8) data center identification number, if applicable; and 65.35 (9) other information as may be required by the executive 65.36 director. 66.1 Sec. 42. Minnesota Statutes 1998, section 354.52, 66.2 subdivision 4b, is amended to read: 66.3 Subd. 4b. [PAYROLL CYCLE REPORTING REQUIREMENTS.] An 66.4 employing unit shall provide the following data to the 66.5 association for payroll warrantsdated after June 30, 1995, for66.6eachon an ongoing basis within 14 calendar days after the date 66.7 of the payrollcyclewarrant in a format prescribed by the 66.8 executive director: 66.9 (1) association member number; 66.10 (2) employer-assigned employee number; 66.11 (3) social security number; 66.12 (4) amount of each salary deduction; 66.13 (5) amount of salary as defined in section 354.05, 66.14 subdivision 35, from which each deduction was made; 66.15 (6) reason for payment; 66.16 (7) service credit; 66.17 (8) the beginning and ending dates of the payroll period 66.18 covered and the date of actual payment; 66.19 (9) fiscal year of salary earnings; 66.20 (10) total remittance amount including employee, employer, 66.21 and additional employer contributions; and 66.22 (11) other information as may be required by the executive 66.23 director. 66.24 Sec. 43. Minnesota Statutes 1998, section 354.63, 66.25 subdivision 2, is amended to read: 66.26 Subd. 2. [VALUATION OF ASSETS; ADJUSTMENT OF BENEFITS.] 66.27 (1) The required reserves for retirement annuitiesasdetermined 66.28in accordance withunder this chaptershallmust be transferred 66.29 to the Minnesota postretirement investment fundas ofno later 66.30 than the last business day of the month in which the retirement 66.31 annuity begins. The required reserves shall be determined in 66.32 accordance with the appropriate annuity table of mortality 66.33 adopted by the board of trustees as provided in section 354.07, 66.34 subdivision 1, based on the experience of the fund as 66.35 recommended by the commission-retained actuary and using the 66.36 interest assumption specified in section 356.215, subdivision 4d. 67.1 (2) Annuity payments shall be adjusted as provided in 67.2accordance with the provisions ofsection 11A.18. In making 67.3 these adjustments, members who retire effective July 1 shall be 67.4 considered to have retired effective the preceding June 67.5 30.This section applies to persons who retired effective July67.61, 1982, or later.67.7 (3) An increase in annuity paymentspursuant tounder this 67.8 section will be made automatically unless written notice is 67.9 filed by the annuitant with the executive director of the 67.10 teachers retirement association requesting that the increase 67.11shallnot be made. 67.12 Sec. 44. Minnesota Statutes 1998, section 356.30, 67.13 subdivision 1, is amended to read: 67.14 Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] 67.15(1)(a) Notwithstanding any provisionsto the contraryof the 67.16 laws governing thefundsplans enumerated in subdivision 3, a 67.17 person who has met the qualifications ofclause (2)paragraph 67.18 (b) may elect to receive a retirement annuity from eachfund67.19 plan in which the person has at leastsix monthsone-half year 67.20 of allowable service, based on the allowable service in 67.21 eachfundplan, subject to the provisions ofclause67.22(3)paragraph (c). 67.23(2)(b) A person may receive upon retirement a retirement 67.24 annuity from eachfundplan in which the person has at leastsix67.25monthsone-half year of allowable service, and augmentation of a 67.26 deferred annuity calculated under the laws governing each public 67.27 pension plan or fund named in subdivision 3, from the date the 67.28 person terminated all public service if: 67.29(a)(1) the person has allowable service totaling an amount 67.30 that allows the person to receive an annuity in any two or more 67.31 of the enumeratedfundsplans; and 67.32(b)(2) the person has not begun to receive an annuity from 67.33 any enumeratedfundplan or the person has made application for 67.34 benefits fromall fundseach applicable plan and the effective 67.35 dates of the retirement annuity with eachfundplan under which 67.36 the person chooses to receive an annuity are within a one-year 68.1 period. 68.2(3)(c) The retirement annuity from eachfundplan must be 68.3 based upon the allowable service, accrual rates, and average 68.4 salary ineach fund, except thatthe applicable plan as further 68.5 specified or modified in the following clauses: 68.6(a)(1) the laws governing annuities must be the law in 68.7 effect on the date of termination from the last period of public 68.8 service under a coveredfundplan with which the person earned a 68.9 minimum of one-half year of allowable service credit during that 68.10 employment.; 68.11(b)(2) the "average salary" on which the annuity from each 68.12 coveredfundplan in which the employee has credit in a formula 68.13 plan shall be based on the employee's highest five successive 68.14 years of covered salary during the entire service in 68.15 coveredfunds.plans; 68.16(c)(3)The formula percentagesaccrual rates to be used by 68.17 eachfundplan must be those percentages prescribed by 68.18 eachfund'splan's formula as continued for the respective years 68.19 of allowable service from onefundplan to the next, recognizing 68.20 all previous allowable service with the other 68.21 coveredfunds.plans; 68.22(d)(4) allowable service in all thefundsplans must be 68.23 combined in determining eligibility for and the application of 68.24 eachfund'splan's provisions in respect toactuarialreduction 68.25 in the annuity amount for retirement prior to normal retirement.68.26 age; and 68.27(e)(5) the annuity amount payable for any allowable 68.28 service under a nonformula plan of a coveredfundplan must not 68.29 be affected but such service and covered salary must be used in 68.30 the above calculation. 68.31(f)(d) This sectionshalldoes not apply to any person 68.32 whose final termination from the last public service under a 68.33 coveredfundplan is prior to May 1, 1975. 68.34(g)(e) For the purpose of computing annuities under this 68.35 section theformula percentagesaccrual rates used by any 68.36 coveredfundplan, except the public employees police and 69.1 firefundplan and the state patrol retirementfundplan, must 69.2 not exceed the percent specified in section 356.19, subdivision 69.3 4, per year of service for any year of service or fraction 69.4 thereof. Theformula percentageaccrual rate used by the public 69.5 employees police and firefundplan and the state patrol 69.6 retirementfundplan must not exceed the percent specified in 69.7 section 356.19, subdivision 6, per year of service for any year 69.8 of service or fraction thereof. Theformula percentageaccrual 69.9 rate or rates used by the legislators retirement plan and the 69.10 elective state officers retirement plan must not exceed 2.5 69.11 percent, but this limit does not apply to the adjustment 69.12 provided under section 3A.02, subdivision 1, paragraph (c), or 69.13 352C.031, paragraph (b). 69.14(h)(f) Any period of time for which a person has credit in 69.15 more than one of the coveredfundsplans must be used only once 69.16 for the purpose of determining total allowable service. 69.17(i)(g) If the period of duplicated service credit is more 69.18 thansix monthsone-half year, or the person has credit for more 69.19 thansix monthsone-half year, with each of thefundsplans, 69.20 eachfund shallplan must apply its formula to a prorated 69.21 service credit for the period of duplicated service based on a 69.22 fraction of the salary on which deductions were paid to that 69.23 fund for the period divided by the total salary on which 69.24 deductions were paid to allfundsplans for the period. 69.25(j)(h) If the period of duplicated service credit is less 69.26 thansix monthsone-half year, or when added to other service 69.27 credit with thatfundplan is less thansix monthsone-half 69.28 year, the service credit must be ignored and a refund of 69.29 contributions made to the person in accord with thatfund's69.30 plan's refund provisions. 69.31 Sec. 45. [356.90] [COMBINED PAYMENT.] 69.32 (a) The public employees retirement association and the 69.33 Minnesota state retirement system are permitted to combine 69.34 payments to retirees and the total payment must be equal to what 69.35 is payable if payments are kept separate. The retiree must 69.36 agree, in writing, to have the payment combined. 70.1 (b) Each fund must calculate benefits under the laws 70.2 governing the plan and the required reserves and future 70.3 mortality losses or gains will be paid or accrued to the fund 70.4 from which the service was earned. Each fund must account for 70.5 their portion of the payment separately, and there may be no 70.6 additional liabilities realized by either fund. 70.7 (c) The fund making payment would be responsible for 70.8 issuing one payment, making address changes, tax withholding 70.9 changes, and other administrative functions needed to process 70.10 the payment. 70.11 Sec. 46. [INSTRUCTION TO REVISOR.] 70.12 The revisor of statutes shall change the term "six months" 70.13 to "one-half year" wherever it appears in Minnesota Statutes, 70.14 sections 356.302 and 356.303. 70.15 Sec. 47. [REPEALER.] 70.16 Minnesota Statutes 1998, sections 353.024; and 354.52, 70.17 subdivision 2, are repealed. 70.18 Sec. 48. [EFFECTIVE DATE.] 70.19 (a) Sections 1 to 47 are effective on July 1, 2000. 70.20 (b) Section 26 is not intended to increase or decrease any 70.21 surviving spouse benefit compared to the surviving spouse 70.22 benefit payable immediately prior to July 1, 2000. 70.23 ARTICLE 4 70.24 MILITARY SERVICE CREDIT 70.25 PURCHASE AUTHORIZATION 70.26 Section 1. [352.275] [UNCREDITED MILITARY SERVICE CREDIT 70.27 PURCHASE.] 70.28 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A 70.29 state employee who has at least three years of allowable service 70.30 with the Minnesota state retirement system and who performed 70.31 service in the United States armed forces before becoming a 70.32 state employee, or who failed to obtain service credit for a 70.33 military leave of absence under section 352.27, is entitled to 70.34 purchase allowable service credit for the initial period of 70.35 enlistment, induction, or call to active duty without any 70.36 voluntary extension by making payment under section 356.55 71.1 provided the employee is not entitled to receive a current or 71.2 deferred retirement annuity from a United States armed forces 71.3 pension plan and has not purchased service credit from any other 71.4 defined benefit public employee pension plan for the same period 71.5 of service. 71.6 Subd. 2. [APPLICATION AND DOCUMENTATION.] An employee who 71.7 desires to purchase service credit under subdivision 1 must 71.8 apply with the executive director to make the purchase. The 71.9 application must include all necessary documentation of the 71.10 employee's qualifications to make the purchase, signed written 71.11 permission to allow the executive director to request and 71.12 receive necessary verification of applicable facts and 71.13 eligibility requirements, and any other relevant information 71.14 that the executive director may require. 71.15 Subd. 3. [SERVICE CREDIT GRANT.] Allowable service credit 71.16 for the purchase period must be granted by the Minnesota state 71.17 retirement system to the purchasing employee upon receipt of the 71.18 purchase payment amount. Payment must be made before the 71.19 employee's effective date of retirement. 71.20 Sec. 2. Minnesota Statutes 1998, section 352B.01, is 71.21 amended by adding a subdivision to read: 71.22 Subd. 3a. [UNCREDITED MILITARY SERVICE CREDIT 71.23 PURCHASE.] (a) A member who has at least three years of 71.24 allowable service with the state patrol retirement plan under 71.25 subdivision 3 and who performed service in the United States 71.26 armed forces before becoming a member is entitled to purchase 71.27 allowable service credit for the initial period of enlistment, 71.28 induction, or call to active duty without any voluntary 71.29 extension by making payment under section 356.55, provided the 71.30 employee is not entitled to receive a current or deferred 71.31 retirement annuity from a United States armed forces pension 71.32 plan and has not purchased service credit from any other defined 71.33 benefit public employee pension plan for the same period of 71.34 service. 71.35 (b) A member who desires to purchase service credit under 71.36 paragraph (a) must apply with the executive director to make the 72.1 purchase. The application must include all necessary 72.2 documentation of the member's qualifications to make the 72.3 purchase, signed written permission to allow the executive 72.4 director to request and receive necessary verification of 72.5 applicable facts and eligibility requirements, and any other 72.6 relevant information that the executive director may require. 72.7 (c) Allowable service credit for the purchase period must 72.8 be granted by the state patrol retirement plan to the purchasing 72.9 employee upon receipt of the purchase payment amount. Payment 72.10 must be made before the effective date of retirement of the 72.11 member. 72.12 Sec. 3. Minnesota Statutes 1998, section 353.01, is 72.13 amended by adding a subdivision to read: 72.14 Subd. 16a. [UNCREDITED MILITARY SERVICE CREDIT PURCHASE.] 72.15 (a) A public employee who has at least three years of allowable 72.16 service with the public employees retirement association or the 72.17 public employees police and fire plan and who performed service 72.18 in the United States armed forces before becoming a public 72.19 employee, or who failed to obtain service credit for a military 72.20 leave of absence under subdivision 16, paragraph (h), is 72.21 entitled to purchase allowable service credit for the initial 72.22 period of enlistment, induction, or call to active duty without 72.23 any voluntary extension by making payment under section 356.55 72.24 provided the public employee is not entitled to receive a 72.25 current or deferred retirement annuity from a United States 72.26 armed forces pension plan and has not purchased service credit 72.27 from any other defined benefit public employee pension plan for 72.28 the same period of service. 72.29 (b) A public employee who desires to purchase service 72.30 credit under paragraph (a) must apply with the executive 72.31 director to make the purchase. The application must include all 72.32 necessary documentation of the public employee's qualifications 72.33 to make the purchase, signed written permission to allow the 72.34 executive director to request and receive necessary verification 72.35 of applicable facts and eligibility requirements, and any other 72.36 relevant information that the executive director may require. 73.1 (c) Allowable service credit for the purchase period must 73.2 be granted by the public employees association or the public 73.3 employees police and fire plan, whichever applies, to the 73.4 purchasing public employee upon receipt of the purchase payment 73.5 amount. Payment must be made before the effective date of 73.6 retirement of the public employee. 73.7 Sec. 4. [EFFECTIVE DATE; SUNSET REPEALER.] 73.8 (a) Sections 1, 2, and 3 are effective on the day following 73.9 final enactment. 73.10 (b) Sections 1, 2, and 3 are repealed on May 16, 2003. 73.11 ARTICLE 5 73.12 RETIREMENT HEALTH CARE PROVISIONS 73.13 Section 1. [POSTRETIREMENT HEALTH CARE TASK FORCE.] 73.14 (a) The director of the legislative commission on pensions 73.15 and retirement shall convene a task force on postretirement 73.16 health care. The task force shall identify strategies for 73.17 providing postretirement health care coverage for public 73.18 employees and make recommendations regarding the most 73.19 appropriate and efficient manner for providing postretirement 73.20 health care. 73.21 (b) The task force shall include, but not be limited to, 73.22 the following: 73.23 (1) a representative of the department of employee 73.24 relations; 73.25 (2) a representative of the Minnesota state retirement 73.26 system; 73.27 (3) a representative of the teachers retirement 73.28 association; 73.29 (4) a representative of the public employees retirement 73.30 association; 73.31 (5) a representative of the first class city teacher 73.32 retirement fund associations; 73.33 (6) a representative of the first class city police and 73.34 fire department relief associations; 73.35 (7) a representative of the Minneapolis employees 73.36 retirement fund; 74.1 (8) a representative of the legislative coordinating 74.2 commission subcommittee on employee relations; 74.3 (9) representatives of public employees exclusive 74.4 representatives; and 74.5 (10) representatives of major public employers. 74.6 (c) The task force shall report its findings and 74.7 recommendations to the legislative commission on pensions and 74.8 retirement by November 15, 2000. The report shall address: 74.9 (1) alternative methods of providing and paying for 74.10 postretirement health care; 74.11 (2) the estimated cost of providing postretirement health 74.12 care under various alternatives; and 74.13 (3) the most efficient administrative structure for 74.14 providing for postretirement health care. 74.15 Sec. 2. [EFFECTIVE DATE.] 74.16 Section 1 is effective on the day following final enactment. 74.17 ARTICLE 6 74.18 PERA AND PERA-P&F MEMBERSHIP INCLUSIONS 74.19 Section 1. Minnesota Statutes 1998, section 353.64, is 74.20 amended by adding a subdivision to read: 74.21 Subd. 11. [PENSION COVERAGE FOR CERTAIN TRIBAL POLICE 74.22 OFFICERS EXERCISING STATE ARREST POWERS.] (a) The governing body 74.23 of a tribal police department which is exercising state arrest 74.24 powers under section 626.90, 626.91, 626.92, or 626.93 may 74.25 request by resolution to the executive director that its police 74.26 officers be considered public employees under section 353.01, 74.27 subdivision 2, and become members of the public employees police 74.28 and fire retirement plan and that the tribal police department 74.29 be considered a governmental subdivision under section 353.01, 74.30 subdivision 6. 74.31 (b) The executive director of the association must approve 74.32 the request by a tribal police department under paragraph (a) if 74.33 a ruling made by the federal Internal Revenue Service provides 74.34 that: 74.35 (1) the tribal police department is an agency or 74.36 instrumentality of the state of Minnesota for purposes of 75.1 enforcing state law; and 75.2 (2) that contributions made by the tribal police department 75.3 to a retirement plan on behalf of employees of the tribal police 75.4 department are contributions to a governmental plan within the 75.5 meaning of section 414(d) of the federal Internal Revenue Code. 75.6 (c) Following the approval of the request by the executive 75.7 director, the head of the police department or designee must 75.8 immediately report for membership in the police and fire fund a 75.9 person who is employed as a full-time or part-time police 75.10 officer in a position that meets the conditions in sections 75.11 353.01, subdivision 2a, and 353.64, subdivisions 1 and 2. The 75.12 police department head or designee must deduct the employee 75.13 contributions from the salary of each eligible police officer as 75.14 required by section 353.65, subdivision 2, and make the employer 75.15 contributions required by section 353.65, subdivision 3. The 75.16 head of the police department must meet the reporting 75.17 requirements in section 353.65, subdivision 4. 75.18 Sec. 2. [353.666] [PAST SERVICE CREDIT FOR CERTAIN MEMBERS 75.19 EXTENDED COVERAGE.] 75.20 (a) A member to whom public employees police and fire 75.21 retirement plan membership was extended under section 353.64, 75.22 subdivision 11, may receive retroactive service credit in the 75.23 public employees police and fire retirement plan for service as 75.24 a tribal police officer rendered before the effective date of 75.25 membership of the tribal police department employee in the 75.26 police and fire fund, provided that the employee and the police 75.27 department did not make contributions into a qualified 75.28 tax-deferred retirement plan for that employment period. 75.29 (b) The request for retroactive coverage must be in writing 75.30 and must be filed with the association within 60 days of when 75.31 police and fire fund membership commenced. The prior service 75.32 credit purchase payment is governed by section 356.55, except 75.33 that the member must pay an amount equal to the employee salary 75.34 deductions. The employee salary deductions for the retroactive 75.35 period must be based on the police and fire pension plan rates 75.36 in effect when the service was rendered and applied to the 76.1 salary amount that was earned and paid to the police officer. 76.2 The employer must pay the balance of the prior service credit 76.3 purchase payment amount. 76.4 Sec. 3. [PERA GENERAL AND PERA P&F; PRIOR SERVICE CREDIT 76.5 PURCHASE.] 76.6 Subdivision 1. [ELIGIBILITY.] (a) Except as restricted 76.7 under subdivision 4, an eligible person described in paragraph 76.8 (b) is entitled to purchase allowable service credit for the 76.9 period or periods specified in paragraph (d) in the public 76.10 employees retirement association general plan. Except as 76.11 restricted under subdivision 4, an eligible person described in 76.12 paragraph (c) is entitled to purchase allowable service credit 76.13 for the period or periods specified in paragraph (d) in the 76.14 public employees retirement association police and fire plan. 76.15 (b) An eligible person is a person who: 76.16 (1) is a full-time salaried employee or permanent part-time 76.17 salaried employee of the Spring Lake Park Fire Department, 76.18 Incorporated; 76.19 (2) became a member of the public employees retirement 76.20 association general plan due to that employment on June 1, 1999; 76.21 and 76.22 (3) was employed by the Spring Lake Park Fire Department, 76.23 Incorporated, during all or part of the period from January 1, 76.24 1996, to June 1, 1999. 76.25 (c) An eligible person is a person who meets requirements 76.26 specified in paragraph (b), clauses (1) and (3), and who became 76.27 a member of the public employees retirement association police 76.28 and fire plan or the public employees retirement association 76.29 general plan, whichever applies, due to applicable employment 76.30 with the Spring Lake Park Fire Department, Incorporated, on June 76.31 1, 1999. 76.32 (d) The period or periods eligible for service credit 76.33 purchase in the public employees retirement association general 76.34 plan or public employees retirement association police and fire 76.35 plan, as applicable, is the period or periods from January 1, 76.36 1996, to June 1, 1999, during which an eligible individual 77.1 described in paragraph (b) or (c), as applicable, provided 77.2 service to the Spring Lake Park Fire Department, Incorporated, 77.3 which would have been eligible service for coverage by the 77.4 applicable public employees retirement association plan if that 77.5 service had been provided on or after June 1, 1999, rather than 77.6 before. 77.7 Subd. 2. [PAYMENT REQUIREMENTS.] Minnesota Statutes, 77.8 section 356.55, applies to service credit purchases authorized 77.9 under this section. 77.10 Subd. 3. [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An 77.11 eligible person described in subdivision 1, paragraph (b) or 77.12 (c), must provide any documentation related to eligibility to 77.13 make this service credit purchase required by the executive 77.14 director of the public employees retirement association. 77.15 (b) Allowable service credit for the purchase period or 77.16 periods must be granted in the applicable public employees 77.17 retirement association plan on behalf of the eligible person 77.18 upon receipt of the prior service credit purchase payment amount. 77.19 Subd. 4. [RESTRICTIONS.] (a) An eligible person as 77.20 specified in subdivision 1, paragraph (c), is not authorized to 77.21 purchase service credit in the public employees retirement 77.22 association police and fire plan under this section if the 77.23 eligible person, or the eligible person and the Spring Lake Park 77.24 Fire Department, Incorporated, made contributions on that 77.25 person's behalf to the social security old age insurance program 77.26 during all or part of the period from January 1, 1996, to June 77.27 1, 1999, and coverage under that program for the applicable 77.28 period remains in effect. 77.29 (b) If paragraph (a) applies to the eligible person, that 77.30 eligible person may purchase service credit under this section 77.31 in the public employees retirement association general plan. 77.32 (c) If contributions are made by an eligible person 77.33 specified in paragraph (a) or by that eligible person and the 77.34 Spring Lake Park Fire Department, Incorporated, or a successor 77.35 organization, to the social security old age insurance program 77.36 after June 1, 1999, due to employment for which coverage in the 78.1 public employees retirement association police and fire plan 78.2 commenced on June 1, 1999, coverage by the public employees 78.3 retirement association police and fire plan terminates and 78.4 coverage by the public employees retirement association general 78.5 plan commences, if the employment otherwise meets requirements 78.6 in law for that coverage. If public employees retirement 78.7 association police and fire plan contributions have been 78.8 received on or after June 1, 1999, for any periods where 78.9 contributions were also made to the social security old age 78.10 insurance program as specified in this paragraph, the 78.11 contributions to the public employees retirement association 78.12 police and fire plan for the applicable period or periods on or 78.13 after June 1, 1999, must be treated as contributions made in 78.14 error under Minnesota Statutes, section 353.27, subdivision 7a. 78.15 Sec. 4. [EFFECTIVE DATE.] 78.16 (a) Sections 1 and 2 are effective on July 1, 2000. 78.17 (b) Section 3 is effective on the day following final 78.18 enactment. 78.19 ARTICLE 7 78.20 PENSION COVERAGE UPON 78.21 EMPLOYMENT PRIVATIZATION 78.22 Section 1. Minnesota Statutes 1999 Supplement, section 78.23 353F.02, subdivision 5, is amended to read: 78.24 Subd. 5. [OTHER PUBLIC EMPLOYING UNIT.] "Other public 78.25 employing unit" means: 78.26 (1) Metro II, a joint powers organization formed under 78.27 section 471.59; and 78.28 (2) the St. Paul civic center authority. 78.29 Sec. 2. [EFFECTIVE DATE.] 78.30 Section 1 is effective on the first day of the month next 78.31 following certification by the executive director of the public 78.32 employees retirement association that the actuarial accrued 78.33 liability of the special benefit coverage proposed for extension 78.34 to the privatized St. Paul civic center authority employees 78.35 under this article does not exceed the actuarial gain otherwise 78.36 to be accrued by the public employees retirement association, as 79.1 calculated by the consulting actuary retained by the legislative 79.2 commission on pensions and retirement. The cost of the 79.3 actuarial calculations must be borne by the St. Paul civic 79.4 center authority. 79.5 ARTICLE 8 79.6 FORMER LOCAL POLICE AND FIRE CONSOLIDATION ACCOUNT 79.7 MODIFICATIONS AND CORRECTIONS 79.8 Section 1. Minnesota Statutes 1999 Supplement, section 79.9 423A.02, subdivision 1b, is amended to read: 79.10 Subd. 1b. [ADDITIONAL AMORTIZATION STATE AID.] (a) 79.11 Annually, on October 1, the commissioner of revenue shall 79.12 allocate the additional amortization state aid transferred under 79.13 section 69.021, subdivision 11, to: 79.14 (1) all police or salaried firefighter relief associations 79.15 governed by and in full compliance with the requirements of 79.16 section 69.77, that had an unfunded actuarial accrued liability 79.17 in the actuarial valuation prepared under sections 356.215 and 79.18 356.216 as of the preceding December 31; 79.19 (2) all local police or salaried firefighter consolidation 79.20 accounts governed by chapter 353A that are certified by the 79.21 executive director of the public employees retirement 79.22 association as having for the current fiscal year an additional 79.23 municipal contribution amount under section 353A.09, subdivision 79.24 5, paragraph (b), and that have implemented section 353A.083, 79.25 subdivision 1, if the effective date of the consolidation 79.26 preceded May 24, 1993, and that have implemented section 79.27 353A.083, subdivision 2, if the effective date of the 79.28 consolidation preceded June 1, 1995; and 79.29 (3) thepublic employees police and fire fund on behalf of79.30 municipalities thatreceived amortization aid in 1999 andare 79.31 required to make an additional municipal contribution under 79.32 section 353.665, subdivision 8, for the duration of the required 79.33 additional contribution. 79.34 (b) The commissioner shall allocate the state aid on the 79.35 basis of the proportional share of the relief association or 79.36 consolidation account of the total unfunded actuarial accrued 80.1 liability of all recipient relief associations and consolidation 80.2 accounts as of December 31, 1993, for relief associations, and 80.3 as of June 30, 1994, for consolidation accounts. 80.4 (c) Beginning October 1, 2000, and annually thereafter, the 80.5 commissioner shall allocate the state aid, including any state 80.6 aid in excess of the limitation in subdivision 4, on the 80.7 following basisof: 80.8 (1) 64.5 percent to thepublic employees police and fire80.9fund or local consolidation account, whichever applies, on80.10behalf ofmunicipalities to which section 353.665, subdivision 80.11 8, paragraph (b), or 353A.09, subdivision 5, paragraph (b), 80.12 apply for distribution in accordance with paragraph (b) and 80.13 subject to the limitation in subdivision 4,; 80.14 (2) 34.2 percent to the city of Minneapolis to fund any 80.15 unfunded actuarial accrued liability in the actuarial valuation 80.16 prepared under sections 356.215 and 356.216 as of the preceding 80.17 December 31 for the Minneapolis police relief association or the 80.18 Minneapolis fire department relief association,; and 80.19 (3) 1.3 percent to the city of Virginia to fund any 80.20 unfunded actuarial accrued liability in the actuarial valuation 80.21 prepared under sections 356.215 and 356.216 as of the preceding 80.22 December 31 for the Virginia fire department relief association. 80.23In the event thatIf there is no unfunded actuarial accrued 80.24 liability in both the Minneapolis police relief association and 80.25 the Minneapolis fire department relief association as disclosed 80.26 in the most recent actuarial valuations for the relief 80.27 associations prepared under sections 356.215 and 356.216, the 80.28 commissioner shall allocate that 34.2 percent of the aid as 80.29 follows: 49 percent to the Minneapolis teachers retirement fund 80.30 association,provided that,21 percent to the St. Paul teachers 80.31 retirement fund association, and 30 percent as additional 80.32 funding to support minimum fire state aid for volunteer 80.33 firefighter relief associations. If there is no unfunded 80.34 actuarial accrued liability in the Virginia fire department 80.35 relief association as disclosed in the most recent actuarial 80.36 valuation for the relief association prepared under sections 81.1 356.215 and 356.216, the commissioner shall allocate that 1.3 81.2 percent of the aid as follows: 49 percent to the Minneapolis 81.3 teachers retirement fund association, 21 percent to the St. Paul 81.4 teachers retirement fund association, and 30 percent as 81.5 additional funding to support minimum fire state aid for 81.6 volunteer firefighter relief associations. The allocation must 81.7 be made by the commissioner at the same time and under the same 81.8 procedures as specified in subdivision 3. With respect to the 81.9 Minneapolis teachers retirement fund association or the St. Paul 81.10 teachers retirement fund association, annually, beginning on 81.11 July 1, 2005, ifathe applicable teacher's association 81.12 five-year average time-weighted rate of investment return does 81.13 not equal or exceed the performance of a composite portfolio 81.14 assumed passively managed (indexed) invested ten percent in cash 81.15 equivalents, 60 percent in bonds and similar debt securities, 81.16 and 30 percent in domestic stock calculated using the formula 81.17 under section 11A.04, clause (11), the aid allocation to that 81.18 retirement fund under this section ceases until the five-year 81.19 annual rate of investment return equals or exceeds the 81.20 performance ofathat composite portfolio., 21 percent to the81.21St. Paul teachers retirement fund association, provided that,81.22annually, beginning on July 1, 2005, if a teacher's association81.23five-year average time-weighted rate of investment return does81.24not equal or exceed the performance of a composite portfolio81.25assumed passively managed (indexed) invested ten percent in cash81.26equivalents, 60 percent bonds and similar debt securities, and81.2730 percent in domestic stock calculated using the formula under81.28section 11A.04, clause (11), the aid under this section ceases81.29until the five-year annual rate of return equals or exceeds the81.30performance of a composite portfolio, and 30 percent as81.31additional funding to support minimum fire state aid for81.32volunteer firefighter relief associations, with the allocation81.33made at the same time and under the same procedures in81.34subdivision 3. In the event there is no actuarial accrued81.35unfunded liability in the Virginia fire department relief81.36association, the commissioner shall allocate that 1.3 percent of82.1the aid as follows: 49 percent to the Minneapolis teachers82.2retirement fund association, provided that, annually, beginning82.3on July 1, 2005, if a teacher's association five-year average82.4time-weighted rate of investment return does not equal or exceed82.5the performance of a composite portfolio assumed passively82.6managed (indexed) invested ten percent in cash equivalents, 6082.7percent bonds and similar debt securities, and 30 percent in82.8domestic stock calculated using the formula under section82.911A.04, clause (11), the aid under this section ceases until the82.10five-year annual rate of return equals or exceeds the82.11performance of a composite portfolio, 21 percent to the St. Paul82.12teachers retirement fund association, provided that, annually,82.13beginning on July 1, 2005, if a teacher's association five-year82.14average time-weighted rate of investment return does not equal82.15or exceed the performance of a composite portfolio assumed82.16passively managed (indexed) invested ten percent in cash82.17equivalents, 60 percent bonds and similar debt securities, and82.1830 percent in domestic stock calculated using the formula under82.19section 11A.04, clause (11), the aid under this section ceases82.20until the five-year annual rate of return equals or exceeds the82.21performance of a composite portfolio, and 30 percent as82.22additional funding to support minimum fire state aid for82.23volunteer firefighter relief associations, with the allocation82.24made at the same time and under the same procedures in82.25subdivision 3.82.26 (d)Additional amortization state aid payable to the public82.27employees retirement association on behalf of a municipality82.28must be credited by the executive director of the public82.29employees retirement association against any additional82.30municipal contribution to which the applicable municipality is82.31obligated to make under section 353A.09, subdivision 5, or under82.32section 353.665, subdivision 8.82.33(e)The amounts required under this subdivision are 82.34 annually appropriated to the commissioner of revenue. 82.35 Sec. 2. Minnesota Statutes 1999 Supplement, section 82.36 423A.02, subdivision 4, is amended to read: 83.1 Subd. 4. [LIMIT ON CERTAIN TOTAL AID AMOUNTS.] (a) The 83.2 total of amortization aid, supplemental amortization aid, and 83.3 additional amortization aid under this section payable tothe83.4executive director of the public employees retirement83.5association on behalf ofa municipality to which section 83.6 353.665, subdivision 8, paragraph (b), applies, may not exceed 83.7 the amount of the additional municipal contribution payable by 83.8 an individual municipality under section 353.665, subdivision 8, 83.9 paragraph (b). 83.10 (b) Any aid amount in excess of the limit under this 83.11 subdivision for an individual municipality must be redistributed 83.12 to the other municipalities to which section 353.665, 83.13 subdivision 8, paragraph (b), applies. The excess aid must be 83.14 distributed in proportion to each municipality's additional 83.15 municipal contribution under section 353.665, subdivision 8, 83.16 paragraph (b). 83.17 (c) When the total aid for each municipality under this 83.18 section equals the limit under paragraph (a), any aid in excess 83.19 of the limit must be redistributed undersubdivisions 1, 1a, and83.20 subdivision 1b. 83.21 Sec. 3. Minnesota Statutes 1999 Supplement, section 83.22 423A.02, subdivision 5, is amended to read: 83.23 Subd. 5. [TERMINATION OF STATE AID PROGRAMS.] The 83.24 amortization state aid, supplemental amortization state aid, and 83.25 additional amortization state aid programs terminate as of the 83.26 December 31, next following the date of the actuarial valuation 83.27 when the assets of the Minneapolis teachers retirement fund 83.28 association equal the actuarial accrued liability of that plan 83.29 and when the assets of the St. Paul teachers retirement fund 83.30 association equal the actuarial accrued liability of that 83.31 plan or December 31, 2009, whichever is later. 83.32 Sec. 4. [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; ONE-TIME 83.33 SPECIAL OPTIONAL ANNUITY ELECTION FOR CERTAIN FORMER 83.34 CONSOLIDATION ACCOUNT RETIREES.] 83.35 Subdivision 1. [ELIGIBILITY.] An individual who was a 83.36 deferred annuitant, a service pension annuitant, or who was 84.1 receiving disability benefits from the relief association on the 84.2 effective date of the consolidation of the applicable local 84.3 police or paid firefighter relief association, and who chose 84.4 annual adjustments applicable to the public employees retirement 84.5 association police and fire plan in elections provided under 84.6 Minnesota Statutes, section 353.615, subdivisions 5 and 6 or 84.7 353A.08, subdivision 1 or 2, may elect an optional annuity form 84.8 under subdivision 2 to provide additional payments to a 84.9 surviving spouse. 84.10 Subd. 2. [OPTIONAL ANNUITIES.] The optional annuity form 84.11 may be either a 15 percent or a 25 percent joint and survivor 84.12 annuity and is without reinstatement in the event of the 84.13 surviving spouse predeceasing the member. The optional annuity 84.14 forms must be actuarially equivalent to the service pension 84.15 currently paid to the retired consolidated member without 84.16 consideration of the value of survivor benefits payable under 84.17 Minnesota Statutes, section 353B.11, and must be based upon the 84.18 age of the member and the age of the spouse of the member as of 84.19 October 1, 2000. 84.20 Subd. 3. [ADDITIONAL SURVIVOR BENEFIT.] An optional 84.21 annuity under subdivision 2 is payable in addition to any 84.22 applicable survivor benefit payable under Minnesota Statutes, 84.23 section 353.11. An optional annuity under subdivision 2 when 84.24 combined with applicable survivor benefits under Minnesota 84.25 Statutes, section 353.11, must not exceed the benefit payable to 84.26 the deceased service or disability pensioner immediately prior 84.27 to death. 84.28 Subd. 4. [ELECTION.] (a) To be valid, an optional annuity 84.29 form under subdivision 2 must be elected in writing on a form 84.30 prescribed by the executive director of the public employees 84.31 retirement association and signed by the eligible service 84.32 pensioner or disabilitant before October 1, 2000. Once 84.33 selected, the optional annuity is irrevocable. 84.34 (b) The executive director of the public employees 84.35 retirement association shall provide counseling to members 84.36 regarding the election of an optional annuity form under this 85.1 section, including the impact on current benefit levels payable 85.2 if an option annuity form is elected. 85.3 Sec. 5. [EFFECTIVE DATE.] 85.4 Sections 1 to 4 are effective on the day following final 85.5 enactment. 85.6 ARTICLE 9 85.7 PERA LOCAL CORRECTIONAL RETIREMENT 85.8 PLAN MODIFICATIONS 85.9 Section 1. Minnesota Statutes 1999 Supplement, section 85.10 353E.02, is amended to read: 85.11 353E.02 [CORRECTIONAL SERVICEEMPLOYEESRETIREMENT PLAN 85.12 MEMBERSHIP.] 85.13 Subdivision 1. [RETIREMENT COVERAGE.] Local government 85.14 correctional service employees are members of the local 85.15 government correctional service retirement plan established by 85.16 this chapter. 85.17 Subd. 2. [LOCAL GOVERNMENT CORRECTIONAL SERVICE 85.18 EMPLOYEE.] (a) A local government correctional service employee, 85.19 for purposes of subdivision 1, is a personwhowhom the employer 85.20 certifies: 85.21 (1) is employed in acounty-administered jail or85.22correctional facility or in a regional correctional facility85.23administered by multiple countiescounty correctional 85.24 institution as a correctional guard or officer, a joint 85.25 jailer/dispatcher, or as a supervisor of correctional guards or 85.26 officers or of joint jailers/dispatchers; 85.27 (2)spends at least 95 percent of the employee's working85.28time in direct contact with persons confined in the jail or85.29facility, as certified in writing, in advance, by the employer85.30to the executive director of the associationis directly 85.31 responsible for the direct security, custody, and control of the 85.32 county correctional institution and its inmates; 85.33 (3) is expected to respond to incidents within the county 85.34 correctional institution as part of the person's regular 85.35 employment duties and is trained to do so; and 85.36(3)(4) is a "public employee" as defined in section 86.1 353.01, but is not a member of the public employees police and 86.2 fire fund. 86.3 (b) The certification required under paragraph (a) must be 86.4 made in writing on a form prescribed by the executive director 86.5 of the public employees retirement association. 86.6 (c) A person who was a member of the local government 86.7 correctional service retirement plan on the day before the 86.8 effective date of this section remains a member of the plan 86.9 after the effective date of this section for the duration of the 86.10 person's employment in that county correctional institution 86.11 position, even if the person's subsequent service in this 86.12 position does not meet the requirements set forth in paragraph 86.13 (a). 86.14 Subd. 3. [COUNTY CORRECTIONAL INSTITUTION.] A county 86.15 correctional institution is: 86.16 (1) a jail administered by a county; 86.17 (2) a correctional facility administered by a county; or 86.18 (3) a regional correctional facility administered by or on 86.19 behalf of multiple counties. 86.20 Sec. 2. Minnesota Statutes 1999 Supplement, section 86.21 353E.03, is amended to read: 86.22 353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.] 86.23 Subdivision 1. [MEMBER CONTRIBUTIONS.] A local government 86.24 correctional service employee shall make an employee 86.25 contribution in an amount equal to5.836.01 percent of salary. 86.26 Subd. 2. [EMPLOYER CONTRIBUTIONS.] The employer shall 86.27 contribute for a local government correctional service employee 86.28 an amount equal to8.759.02 percent of salary. 86.29 Sec. 3. [EFFECTIVE DATE.] 86.30 Section 1 is effective on the day following final enactment. 86.31 Section 2 is effective on the first day of the first full pay 86.32 period beginning after January 1, 2002. 86.33 ARTICLE 10 86.34 TEACHER RETIREMENT AND 86.35 RELATED CHANGES 86.36 Section 1. Minnesota Statutes 1998, section 122A.46, 87.1 subdivision 1, is amended to read: 87.2 Subdivision 1. [TEACHERS DEFINED.] As used in this 87.3 section, the term "teachers" shall have the meaning given it in 87.4 section 122A.15, subdivision 1. The term "teachers" shall also 87.5 include any teacher in the classifications included in the 87.6 professional state residential instructional unit, pursuant to 87.7 section 179A.10, subdivision 2, clause (16). 87.8 Sec. 2. Minnesota Statutes 1998, section 122A.46, is 87.9 amended by adding a subdivision to read: 87.10 Subd. 1a. [APPOINTING AUTHORITY.] For purposes of teachers 87.11 included in the professional state residential instructional 87.12 unit, the term "school board" shall include the appointing 87.13 authority as defined in section 43A.02, subdivision 5. 87.14 Sec. 3. Minnesota Statutes 1999 Supplement, section 87.15 354.536, subdivision 1, is amended to read: 87.16 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A 87.17 teacher who has at least three years of allowable service credit 87.18 with the teachers retirement association is entitled to purchase 87.19 up to ten years of allowable and formula service credit for 87.20 nonprofit community-based corporation, private, or parochial 87.21 school teaching service by making payment under section 356.55, 87.22 provided that the teacher is not entitled to receive a current 87.23 or deferred age and service retirement annuity or disability 87.24 benefit from the applicable employer-sponsored pension plan and 87.25 has not purchased service credit from the applicable defined 87.26 benefit employer-sponsored pension plan for that service. 87.27 Sec. 4. [354A.051] [MTRFA COVERAGE FOR UNION BUSINESS 87.28 AGENTS.] 87.29 Subdivision 1. [AUTHORIZATION.] A member of the 87.30 Minneapolis teachers retirement fund association on a leave of 87.31 absence from a teaching position with special school district 87.32 No. 1, and who is employed by an employee organization 87.33 representing Minneapolis teachers retirement fund association 87.34 active members, may elect under subdivision 2 to be a member of 87.35 the coordinated program of the association for service with that 87.36 employee organization, subject to the limitations specified in 88.1 subdivisions 3, 4, and 5. 88.2 Subd. 2. [ELECTION.] Except as indicated in subdivision 3, 88.3 a person described in subdivision 1 must be covered by the 88.4 Minneapolis teachers retirement fund association coordinated 88.5 program for employment with the employer organization if the 88.6 person files a written election to be covered with the executive 88.7 director of the teachers retirement fund association within 90 88.8 days of first being employed by the employee organization, or 88.9 within 90 days of the start of the first leave of absence due to 88.10 service as an employee organization business agent, whichever is 88.11 later. 88.12 Subd. 3. [WAIVER OF LEAVE COVERAGE.] Coverage under this 88.13 section does not apply to any leave period or portion of a leave 88.14 period for which a person has received service credit or is 88.15 eligible to receive service credit for the leave period under 88.16 any leave of absence provision in chapter 354A, any other 88.17 applicable law, or bylaws or articles of incorporation of the 88.18 association. The person may waive eligibility to receive 88.19 service credit under a leave of absence provision and be covered 88.20 by this section for the applicable period by filing a waiver 88.21 with the executive director within 90 days of the start of the 88.22 leave. 88.23 Subd. 4. [COVERED SALARY LIMITATION.] (a) The covered 88.24 salary for an employee of the employee organization covered by 88.25 the coordinated program of the Minneapolis teachers retirement 88.26 fund association under this section is limited to the lesser of: 88.27 (1) the person's actual salary from the employee 88.28 organization as defined in section 354A.011, subdivision 24; or 88.29 (2) 75 percent of the salary of the governor as set under 88.30 section 15A.082. 88.31 (b) The limited covered salary determined under this 88.32 paragraph must be used in determining member, employer, and 88.33 employer additional contributions under section 354A.12, and in 88.34 determining annuities and other benefits under sections 354A.30 88.35 to 354A.41 and chapter 356. 88.36 Subd. 5. [ANNUITY RECEIPT REQUIREMENTS.] A retirement 89.1 annuity is only payable from the coordinated program of the 89.2 Minneapolis teachers retirement fund association to a person 89.3 described in subdivision 1 if the person has met all applicable 89.4 requirements, including the termination by the person from 89.5 employment by the employee organization and by the school 89.6 district. The reemployed annuitant earnings limitation in 89.7 section 354A.31, subdivision 3, applies if the person retires 89.8 and is subsequently reemployed while an annuitant by the 89.9 employee organization or by any other entity employing persons 89.10 who are members of the applicable teachers retirement fund 89.11 association by virtue of that employment. 89.12 Subd. 6. [CONTRIBUTION REQUIREMENTS.] The member, 89.13 employer, and employer additional contributions required by 89.14 section 354A.12 are the obligation of the person who elects 89.15 coverage by the coordinated program of the Minneapolis teachers 89.16 retirement fund association, but the employee organization may 89.17 pay the employer and employer additional contributions. 89.18 Contributions made by the person must be made by salary 89.19 deduction. Contributions made by the employee organization must 89.20 be made as provided in section 354A.12. 89.21 Subd. 7. [BOARD INELIGIBILITY.] A person employed by an 89.22 employee organization who retains active membership in the 89.23 teachers retirement fund association under this section is not 89.24 eligible for election to the board of trustees of the teachers 89.25 retirement fund association. 89.26 Sec. 5. Minnesota Statutes 1999 Supplement, section 89.27 354A.101, subdivision 1, is amended to read: 89.28 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A 89.29 teacher who has at least three years of allowable service credit 89.30 with the teachers retirement fund association is entitled to 89.31 purchase up to ten years of allowable service credit 89.32 for nonprofit community-based corporation, private, or parochial 89.33 school teaching service by making payment under section 356.55, 89.34 provided that the teacher is not entitled to receive a current 89.35 or deferred age and service retirement annuity or disability 89.36 benefit from the applicable employer-sponsored pension plan and 90.1 has not purchased service credit from the applicable defined 90.2 benefit employer-sponsored pension plan for that service. 90.3 Sec. 6. [ELECTION OF COVERAGE BY EMPLOYEE OF EMPLOYEE 90.4 ORGANIZATION REPRESENTING MINNEAPOLIS TEACHERS RETIREMENT FUND 90.5 ASSOCIATION ACTIVE MEMBERS.] 90.6 Subdivision 1. [ELIGIBILITY ELECTION.] Notwithstanding 90.7 election date requirements in section 354A.051, subdivision 2, a 90.8 person who is currently employed as a business agent by an 90.9 employee organization representing Minneapolis teachers 90.10 retirement fund association active members and who has been on a 90.11 mobility leave or leaves from special school district No. 1 90.12 since March 23, 1998, may make a written election to be covered 90.13 under section 354A.051. To be valid, that written election must 90.14 be on a form specified by the executive director of the 90.15 Minneapolis teachers retirement fund association and be filed 90.16 with the executive director within 90 days following the 90.17 effective date of this section. 90.18 Subd. 2. [PAYMENT REQUIREMENTS.] If a valid election is 90.19 made under subdivision 1, an eligible individual under 90.20 subdivision 1 is required to pay, in a lump sum within 90 days 90.21 of the effective date of this section, any additional employee, 90.22 employer, and employer additional contributions based on the 90.23 eligible individual's salary and employment with the employee 90.24 organization, as required by the election, compared to amounts 90.25 previously paid or payable. These amounts are in addition to 90.26 any amounts previously payable. The additional contribution 90.27 requirements are to be computed from March 23, 1998, to the date 90.28 payroll deductions are first made on the high contribution 90.29 requirements. The lump sum payment under this subdivision must 90.30 include 8.5 percent annual interest. The amounts required under 90.31 this subdivision are the obligation of the eligible individual, 90.32 but the employee organization may pay the additional employer 90.33 and employer additional amounts with applicable interest. 90.34 Subd. 3. [SALARY CREDIT GRANT.] The additional salary 90.35 credit is to be granted to the account of the eligible 90.36 individual upon payment of amounts required under this section. 91.1 Sec. 7. [EFFECTIVE DATE.] 91.2 Sections 1 to 6 are effective on the day following final 91.3 enactment. 91.4 ARTICLE 11 91.5 MNSCU PENSION COVERAGE 91.6 AND RELATED CHANGES 91.7 Section 1. Minnesota Statutes 1998, section 136F.45, 91.8 subdivision 1a, is amended to read: 91.9 Subd. 1a. [SUBSEQUENT VENDOR CONTRACTS.] (a) The board may 91.10 limit the number of vendors under subdivision 1. 91.11 (b) In addition to any other tax-sheltered annuity program 91.12 investment options, the board may offer as an investment option 91.13 the Minnesota supplemental investment fund administered by the 91.14 state board of investment under section 11A.17. 91.15 (c) For the tax-sheltered annuity program vendor contracts 91.16to beexecutedfor the period beginningafter July 1, 2000, the 91.17 board shall actively solicit participation of and shall include 91.18 as vendors lower expense and "no-load" mutual funds or 91.19 equivalent investment products as those terms are defined by the 91.20 federal securities and exchange commission. To the extent 91.21 possible, in addition to a range of insurance annuity contract 91.22 providers and other mutual fund provider arrangements, the board 91.23 must assure that no less than five insurance annuity providers 91.24 and no less than one nor more than three lower expense and 91.25 "no-load" mutual funds or equivalent investment products will be 91.26 made available for direct-access by employee participants. To 91.27 the extent that offering a lower expense "no-load" product 91.28 increases the total necessary and reasonable expenses of the 91.29 program and if the board is unable to negotiate a rebate of fees 91.30 from the mutual fund or equivalent investment product providers, 91.31 the board may charge the participants utilizing the lower 91.32 expense "no-load" mutual fund products a fee to cover those 91.33 expenses. The participant fee may not exceed one percent of the 91.34 participant's annual contributions or $20 per participant per 91.35 year, whichever is greater. Any excess fee revenue generated 91.36 under this subdivision must be reimbursed to participant 92.1 accounts in the manner provided in subdivision 3a. 92.2 Sec. 2. [354.539] [USE OF COLLEGE SUPPLEMENTAL RETIREMENT 92.3 FUNDS TO PURCHASE SERVICE CREDIT.] 92.4 (a) Unless prohibited by or subject to a penalty under 92.5 federal law, a teacher who is a participant in the college 92.6 supplemental retirement plan established under chapter 354C may 92.7 utilize the teacher's supplemental plan account to purchase 92.8 service credit under sections 354.53, 354.533, 354.534, 354.535, 92.9 354.536, 354.537, and 354.538. 92.10 (b) At the request of a member, if determined by the 92.11 executive director to be eligible to purchase service credit, 92.12 the executive director shall notify the board of the Minnesota 92.13 state colleges and universities system of the cost of the 92.14 purchase and shall request the transfer of funds from the 92.15 member's college supplemental retirement account to the teachers 92.16 retirement association. Upon receipt of the full prior service 92.17 credit purchase payment amount, the teachers retirement 92.18 association shall grant the requested allowable and formula 92.19 service credit. 92.20 Sec. 3. [354A.106] [USE OF COLLEGE SUPPLEMENTAL RETIREMENT 92.21 FUNDS TO PURCHASE SERVICE CREDIT.] 92.22 (a) Unless prohibited by or subject to a penalty under 92.23 federal law, a teacher who is a participant in the college 92.24 supplemental retirement plan established under chapter 354C may 92.25 utilize the teacher's supplemental plan account to purchase 92.26 service credit under sections 354A.097, 354A.098, 354A.099, 92.27 354A.101, 354A.102, 354A.103, and 354A.104. 92.28 (b) At the request of a member, if determined by the 92.29 executive director of the applicable teachers retirement fund 92.30 association to be eligible to purchase service credit, the 92.31 executive director shall notify the board of the Minnesota state 92.32 colleges and universities system of the cost of the purchase and 92.33 shall request the transfer of funds from the member's college 92.34 supplemental retirement account to the applicable teachers 92.35 retirement fund association. Upon receipt of the full prior 92.36 service credit purchase payment amount, the applicable teachers 93.1 retirement fund association shall grant the requested allowable 93.2 and formula service credit. 93.3 Sec. 4. Minnesota Statutes 1998, section 354B.23, 93.4 subdivision 5a, is amended to read: 93.5 Subd. 5a. [EXCESS CONTRIBUTIONS.](a)When contributions 93.6 to the plan exceed limits imposed by federal law or 93.7 regulationand it is necessary to return contributions to comply93.8with the federal limits, the excess employee contributions must 93.9 be returned to the employee andtothe excess employerin the93.10same proportions as the contributions were madecontributions 93.11 must be reallocated in accordance with section 415 of the 93.12 federal Internal Revenue Code, as amended, and the applicable 93.13 federal regulations and revenue rulings. 93.14(b) When an employer contribution required under section93.15354B.24 due to a sabbatical leave is made after completion of93.16the leave or an employer contribution is made due to omitted93.17deductions under subdivision 5, and these employer contributions93.18cause or would cause total contributions to the plan to exceed93.19limits imposed by federal law or regulation, the employer must93.20make that portion of the contribution that would exceed the93.21federal limit during the next calendar year.93.22 Sec. 5. Minnesota Statutes 1998, section 354C.12, 93.23 subdivision 1a, is amended to read: 93.24 Subd. 1a. [EXCESS CONTRIBUTIONS.](a)When contributions 93.25 to the plan exceed limits imposed by federal law or 93.26 regulationand it is necessary to return contributions to comply93.27with the federal limits, one-half of the excess contributions93.28must be returned to, the excess employee contributions must be 93.29 returned to the employee andone-half tothe excess employer 93.30 contributions must be reallocated in accordance with section 415 93.31 of the federal Internal Revenue Code, as amended, and the 93.32 applicable federal regulations and revenue rulings. 93.33(b) When an employer contribution is made due to omitted93.34deductions under subdivision 2, and these employer contributions93.35cause or would cause total contributions to the plan to exceed93.36limits imposed by federal law or regulation, the employer must94.1make that portion of the contribution that would exceed the94.2federal limit during the next calendar year.94.3 Sec. 6. Minnesota Statutes 1998, section 354C.165, is 94.4 amended to read: 94.5 354C.165 [PROHIBITION ON LOANS OR PRETERMINATION 94.6 DISTRIBUTIONS.] 94.7 (a) Except as provided in paragraph (c) or (d), no 94.8 participant may obtain a loanfrom the planorobtainany 94.9 distribution from the planat a timebefore the participant 94.10 terminates the employment that gave rise to plan coverage. 94.11 (b) No amounts to the credit of the plan are assignable 94.12 either in law or in equity, are subject to state estate tax, or 94.13 are subject to execution, levy, attachment, garnishment, or 94.14 other legal process, except as provided in section 518.58, 94.15 518.581, or 518.6111. 94.16 (c) Unless prohibited by or subject to a penalty under 94.17 federal law, a teacher who is a participant in the supplemental 94.18 retirement plan may request, in writing, a transfer of all or a 94.19 portion of the funds accumulated in the person's supplemental 94.20 plan account to the teachers retirement association to purchase 94.21 service credit under sections 354.53, 354.533, 354.534, 354.535, 94.22 354.536, 354.537, and 354.538 or to the teachers retirement fund 94.23 association to purchase service credit under sections 354A.097, 94.24 354A.098, 354A.099, 354A.101, 354A.102, 354A.103, and 354A.104. 94.25 Upon receipt of a valid request, the board shall execute the 94.26 transfer. The transfer must be a fund-to-fund transfer, and in 94.27 no event shall the participant directly receive any of the funds 94.28 while still employed by the board. In no event may the board 94.29 transfer more than the participant's account balance. The 94.30 board, in cooperation with the executive director of the 94.31 teachers retirement association, shall develop the forms for 94.32 requesting a transfer and the procedures for executing the 94.33 requested transfers. 94.34 Sec. 7. Minnesota Statutes 1999 Supplement, section 94.35 356.24, subdivision 1, is amended to read: 94.36 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 95.1 for a school district or other governmental subdivision or state 95.2 agency to levy taxes for, or contribute public funds to a 95.3 supplemental pension or deferred compensation plan that is 95.4 established, maintained, and operated in addition to a primary 95.5 pension program for the benefit of the governmental subdivision 95.6 employees other than: 95.7 (1) to a supplemental pension plan that was established, 95.8 maintained, and operated before May 6, 1971; 95.9 (2) to a plan that provides solely for group health, 95.10 hospital, disability, or death benefits; 95.11 (3) to the individual retirement account plan established 95.12 by chapter 354B; 95.13 (4) to a plan that provides solely for severance pay under 95.14 section 465.72 to a retiring or terminating employee; 95.15 (5) for employees other than personnel employed by the 95.16 state university board or the community college board and 95.17 covered by the board of trustees of the Minnesota state colleges 95.18 and universities supplemental retirement plan under chapter 95.19 354C, if provided for in a personnel policy of the public 95.20 employer or in the collective bargaining agreement between the 95.21 public employer and the exclusive representative of public 95.22 employees in an appropriate unit, in an amount matching employee 95.23 contributions on a dollar for dollar basis, but not to exceed an 95.24 employer contribution of $2,000 a year per employee; 95.25 (i) to the state of Minnesota deferred compensation plan 95.26 under section 352.96; or 95.27 (ii) in payment of the applicable portion of the premium on 95.28 a tax-sheltered annuity contract qualified under section 403(b) 95.29 of the Internal Revenue Code, if purchased from a qualified 95.30 insurance company, or to a qualified investment entity, as 95.31 defined in subdivision 1a, and, in either case, if the employing 95.32 unit has complied with any applicable pension plan provisions of 95.33 the Internal Revenue Code with respect to the tax-sheltered 95.34 annuity program during the preceding calendar year; or 95.35 (6) for personnel employed by the state university board or 95.36 the community college board and not covered by clause (5), to 96.1 the supplemental retirement plan under chapter 354C, if provided 96.2 for in a personnel policy or in the collective bargaining 96.3 agreement of the public employer with the exclusive 96.4 representative of the covered employees in an appropriate unit, 96.5 in an amount matching employee contributions on a dollar for 96.6 dollar basis, but not to exceed an employer contribution of 96.7$2,000$2,700 a year for each employee. 96.8 Sec. 8. Minnesota Statutes 1998, section 356A.01, 96.9 subdivision 8, is amended to read: 96.10 Subd. 8. [COVERED PENSION PLAN.] "Covered pension plan" 96.11 means a pension plan or fund listed in section 356.20, 96.12 subdivision 2, or 356.30, subdivision 3, or a plan established 96.13 under chapter 353D, 354B, 354C, or 354D. 96.14 Sec. 9. Minnesota Statutes 1998, section 356A.02, is 96.15 amended to read: 96.16 356A.02 [FIDUCIARY STATUS AND ACTIVITIES.] 96.17 Subdivision 1. [FIDUCIARY STATUS.] For purposes of this 96.18 chapter, the following persons are fiduciaries: 96.19 (1) any member of the governing board of a covered pension 96.20 plan; 96.21 (2) the chief administrative officer of a covered pension 96.22 plan or of the state board of investment; 96.23 (3) any member of the state board of investment;and96.24 (4) any member of the investment advisory council; and 96.25 (5) any member of the advisory committee established under 96.26 section 354B.25. 96.27 Subd. 2. [FIDUCIARY ACTIVITY.] The activities of a 96.28 fiduciary identified in subdivision 1 that must be carried out 96.29 in accordance with the requirements of section 356A.04 include, 96.30 but are not limited to: 96.31 (1) the investment and reinvestment of plan assets; 96.32 (2) the determination of benefits; 96.33 (3) the determination of eligibility for membership or 96.34 benefits; 96.35 (4) the determination of the amount or duration of 96.36 benefits; 97.1 (5) the determination of funding requirements or the 97.2 amounts of contributions; 97.3 (6) the maintenance of membership or financial records;and97.4 (7) the expenditure of plan assets; and 97.5 (8) the selection of financial institutions and investment 97.6 products. 97.7 Sec. 10. Minnesota Statutes 1998, section 356A.06, is 97.8 amended by adding a subdivision to read: 97.9 Subd. 10. [DEFINED CONTRIBUTION PLANS; APPLICATION.] (a) 97.10 To the extent that a plan governed by chapter 352D, 353D, 354B, 97.11 354C, or 354D permits a participant or beneficiary to select 97.12 among investment products for the person's account and the 97.13 participant or beneficiary exercises that investment 97.14 self-direction, no fiduciary is liable for any loss which may 97.15 result from the participant's or beneficiary's exercise of that 97.16 investment self-direction. 97.17 (b) Subdivisions 1, 2, 6, 8, and 8a do not apply to plans 97.18 governed by chapter 354B or 354C. 97.19 Sec. 11. [VENDOR CONTRACT EXTENSION OPTION.] 97.20 Notwithstanding Minnesota Statutes, section 136F.45, 97.21 subdivision 1a, paragraph (c), the board of trustees of the 97.22 Minnesota state colleges and universities may, with the 97.23 agreement of the parties involved, extend the vendor contracts 97.24 in effect immediately before July 1, 2000, with any revisions 97.25 that are mutually agreeable to the parties, for up to an 97.26 additional two years duration. 97.27 Sec. 12. [EFFECTIVE DATE.] 97.28 (a) Sections 1 to 11 are effective on the day following 97.29 final enactment. 97.30 (b) Sections 2, 3, and 6, paragraph (c), expire on May 16, 97.31 2002. 97.32 ARTICLE 12 97.33 EMPLOYER MATCHING CONTRIBUTION 97.34 TAX SHELTERED ANNUITY CHANGES 97.35 Section 1. Minnesota Statutes 1999 Supplement, section 97.36 356.24, subdivision 1, is amended to read: 98.1 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 98.2 for a school district or other governmental subdivision or state 98.3 agency to levy taxes for, or contribute public funds to a 98.4 supplemental pension or deferred compensation plan that is 98.5 established, maintained, and operated in addition to a primary 98.6 pension program for the benefit of the governmental subdivision 98.7 employees other than: 98.8 (1) to a supplemental pension plan that was established, 98.9 maintained, and operated before May 6, 1971; 98.10 (2) to a plan that provides solely for group health, 98.11 hospital, disability, or death benefits; 98.12 (3) to the individual retirement account plan established 98.13 by chapter 354B; 98.14 (4) to a plan that provides solely for severance pay under 98.15 section 465.72 to a retiring or terminating employee; 98.16 (5) for employees other than personnel employed by the 98.17 state university board or the community college board and 98.18 covered by the board of trustees of the Minnesota state colleges 98.19 and universities supplemental retirement plan under chapter 98.20 354C, if provided for in a personnel policy of the public 98.21 employer or in the collective bargaining agreement between the 98.22 public employer and the exclusive representative of public 98.23 employees in an appropriate unit, in an amount matching employee 98.24 contributions on a dollar for dollar basis, but not to exceed an 98.25 employer contribution of $2,000 a year per employee; 98.26 (i) to the state of Minnesota deferred compensation plan 98.27 under section 352.96; or 98.28 (ii) in payment of the applicable portion of thepremium on98.29a tax-sheltered annuity contract qualifiedcontribution made to 98.30 any investment eligible under section 403(b) of the Internal 98.31 Revenue Code, ifpurchased from a qualified insurance company,98.32or to a qualified investment entity, as defined in subdivision98.331a, and, in either case, ifthe employing unit has complied with 98.34 any applicable pension plan provisions of the Internal Revenue 98.35 Code with respect to the tax-sheltered annuity program during 98.36 the preceding calendar year; or 99.1 (6) for personnel employed by the state university board or 99.2 the community college board and not covered by clause (5), to 99.3 the supplemental retirement plan under chapter 354C, if provided 99.4 for in a personnel policy or in the collective bargaining 99.5 agreement of the public employer with the exclusive 99.6 representative of the covered employees in an appropriate unit, 99.7 in an amount matching employee contributions on a dollar for 99.8 dollar basis, but not to exceed an employer contribution of 99.9 $2,000 a year for each employee. 99.10 Sec. 2. Minnesota Statutes 1999 Supplement, section 99.11 356.24, subdivision 1b, is amended to read: 99.12 Subd. 1b. [VENDOR RESTRICTIONS.]A personnel policy for99.13unrepresented employees or a collective bargaining agreementA 99.14 school board may establish limits on the number of vendorsunder99.15subdivision 1that it will utilize and conditions under which 99.16 the vendors may contact employees both during working hours and 99.17 after working hours. 99.18 Sec. 3. [REPEALER.] 99.19 Minnesota Statutes 1999 Supplement, section 356.24, 99.20 subdivision 1a, is repealed. 99.21 Sec. 4. [EFFECTIVE DATE.] 99.22 Sections 1 to 3 are effective on the day following final 99.23 enactment. 99.24 ARTICLE 13 99.25 RETIREMENT GENERALLY 99.26 Section 1. [REPEALER.] 99.27 Minnesota Statutes 1999 Supplement, section 356.61, is 99.28 repealed. 99.29 Sec. 2. [EFFECTIVE DATE.] 99.30 Section 1 is effective retroactively to July 1, 1999. 99.31 ARTICLE 14 99.32 VOLUNTEER FIREFIGHTER RELIEF 99.33 ASSOCIATION CHANGES 99.34 Section 1. Minnesota Statutes 1999 Supplement, section 99.35 69.021, subdivision 7, is amended to read: 99.36 Subd. 7. [APPORTIONMENT OF FIRE STATE AID TO 100.1 MUNICIPALITIES AND RELIEF ASSOCIATIONS.] (a) The commissioner 100.2 shall apportion the fire state aid relative to the premiums 100.3 reported on the Minnesota Firetown Premium Reports filed under 100.4 this chapter to each municipality and/or firefighters' relief 100.5 association. 100.6 (b) The commissioner shall calculate an initial fire state 100.7 aid allocation amount for each municipality or fire department 100.8 under paragraph (c) and a minimum fire state aid allocation 100.9 amount for each municipality or fire department under paragraph 100.10 (d). The municipality or fire department must receive the 100.11 larger fire state aid amount. 100.12 (c) The initial fire state aid allocation amount is the 100.13 amount available for apportionment as fire state aid under 100.14 subdivision 5, without inclusion of any additional funding 100.15 amount to support a minimum fire state aid amount under section 100.16 423A.02, subdivision 3, allocated one-half in proportion to the 100.17 population as shown in the last official statewide federal 100.18 census for each fire town and one-half in proportion to the 100.19 market value of each fire town, including (1) the market value 100.20 of tax exempt property and (2) the market value of natural 100.21 resources lands receiving in lieu payments under sections 100.22 477A.11 to 477A.14, but excluding the market value of minerals. 100.23 In the case of incorporated or municipal fire departments 100.24 furnishing fire protection to other cities, towns, or townships 100.25 as evidenced by valid fire service contracts filed with the 100.26 commissioner, the distribution must be adjusted proportionately 100.27 to take into consideration the crossover fire protection 100.28 service. Necessary adjustments shall be made to subsequent 100.29 apportionments. In the case of municipalities or independent 100.30 fire departments qualifying for the aid, the commissioner shall 100.31 calculate the state aid for the municipality or relief 100.32 association on the basis of the population and the market value 100.33 of the area furnished fire protection service by the fire 100.34 department as evidenced by duly executed and valid fire service 100.35 agreements filed with the commissioner. If one or more fire 100.36 departments are furnishing contracted fire service to a city, 101.1 town, or township, only the population and market value of the 101.2 area served by each fire department may be considered in 101.3 calculating the state aid and the fire departments furnishing 101.4 service shall enter into an agreement apportioning among 101.5 themselves the percent of the population and the market value of 101.6 each service area. The agreement must be in writing and must be 101.7 filed with the commissioner. 101.8 (d) The minimum fire state aid allocation amount is the 101.9 amount in addition to the initial fire state allocation amount 101.10 that is derived from any additional funding amount to support a 101.11 minimum fire state aid amount under section 423A.02, subdivision 101.12 3, and allocated to municipalities with volunteer firefighter 101.13 relief associations based on the number of active volunteer 101.14 firefighters who are members of the relief association as 101.15 reported in the annual financial reporting for the calendar year 101.16 1993 to the office of the state auditor, but not to exceed 30 101.17 active volunteer firefighters, so that all municipalities or 101.18 fire departments with volunteer firefighter relief associations 101.19 receive in total at least a minimum fire state aid amount per 101.20 1993 active volunteer firefighter to a maximum of 30 101.21 firefighters. If a relief associationdid not exist inis 101.22 established after calendar year 1993 and before calendar year 101.23 2000, the number of active volunteer firefighters who are 101.24 members of the relief association as reported in the annual 101.25 financial reporting for calendar year 1998 to the office of the 101.26 state auditor, but not to exceed 30 active volunteer 101.27 firefighters, shall be used in this determination. If a relief 101.28 association is established after calendar year 1999, the number 101.29 of active volunteer firefighters who are members of the relief 101.30 association as reported in the first annual financial reporting 101.31 submitted to the office of the state auditor, but not to exceed 101.32 20 active volunteer firefighters, must be used in this 101.33 determination. 101.34 (e) The fire state aid must be paid to the treasurer of the 101.35 municipality where the fire department is located and the 101.36 treasurer of the municipality shall, within 30 days of receipt 102.1 of the fire state aid, transmit the aid to the relief 102.2 association if the relief association has filed a financial 102.3 report with the treasurer of the municipality and has met all 102.4 other statutory provisions pertaining to the aid apportionment. 102.5 (f) The commissioner may make rules to permit the 102.6 administration of the provisions of this section. 102.7 (g) Any adjustments needed to correct prior misallocations 102.8 must be made to subsequent apportionments. 102.9 Sec. 2. [69.041] [SHORTFALL FROM GENERAL FUND.] 102.10 (a) If the annual funding requirements of fire or police 102.11 relief associations or consolidation accounts under section 102.12 69.77, sections 69.771 to 69.775, or section 353A.09, exceed all 102.13 applicable revenue sources of a given year, including the 102.14 insurance premium taxes funding the applicable fire or police 102.15 state aid as set under section 60A.15, subdivision 1, paragraph 102.16 (e), clauses (1) to (3), the shortfall in the annual funding 102.17 requirements must be paid from the general fund to the extent 102.18 appropriated by the legislature. 102.19 (b) Nothing in this section may be deemed to relieve any 102.20 municipality from its obligation to a relief association or 102.21 consolidation account under law. 102.22 Sec. 3. Minnesota Statutes 1998, section 69.773, 102.23 subdivision 1, is amended to read: 102.24 Subdivision 1. [APPLICATION.] (a) This sectionshall apply102.25 applies to any firefighters' relief association specified in 102.26 section 69.771, subdivision 1, which pays or allows for an 102.27 option of a monthly service pension to a retiring firefighter 102.28 when at least the minimum requirements for entitlement to a 102.29 service pension specified in section 424A.02, any applicable 102.30 special legislation and the articles of incorporation or bylaws 102.31 of the relief association have been met. Each firefighters' 102.32 relief association to which this section applies shall determine 102.33 the actuarial condition and funding costs of the special fund of 102.34 the relief association in accordance with subdivisions 2 and 3, 102.35 the financial requirements of the special fund of the relief 102.36 association in accordance with subdivision 4 and the minimum 103.1 obligation of the municipality with respect to the special fund 103.2 of the relief association in accordance with subdivision 5. 103.3 (b) If a firefighters relief association that previously 103.4 provided a monthly benefit service pension discontinues that 103.5 practice and either replaces the monthly benefit amount with a 103.6 lump sum benefit amount consistent with section 424A.02, 103.7 subdivision 3, or purchases an annuity in the same amount as the 103.8 monthly benefit from an insurance company licensed to do 103.9 business in this state, the actuarial condition and funding 103.10 costs, financial, and minimum municipal obligation requirements 103.11 of section 69.772 apply rather than this section. 103.12 Sec. 4. Minnesota Statutes 1998, section 424A.001, 103.13 subdivision 9, is amended to read: 103.14 Subd. 9. [SEPARATE FROM ACTIVE SERVICE.] "Separate from 103.15 active service" means to permanently cease to perform fire 103.16 suppression duties with a particular volunteer fire department, 103.17 to permanently cease to perform fire prevention duties, 103.18 to permanently cease to supervise fire suppression duties, and 103.19 to permanently cease to supervise fire prevention duties. 103.20 Sec. 5. Minnesota Statutes 1998, section 424A.02, 103.21 subdivision 3, is amended to read: 103.22 Subd. 3. [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) On or 103.23 before August 1 of each year as part of the certification of the 103.24 financial requirements and minimum municipal obligation made 103.25 pursuant to section 69.772, subdivision 4, or 69.773, 103.26 subdivision 5, the secretary or some other official of the 103.27 relief association designated in the bylaws of each relief 103.28 association shall calculate and certify to the governing body of 103.29 the applicable qualified municipality the average amount of 103.30 available financing per active covered firefighter for the most 103.31 recent three-year period. The amount of available financing 103.32 shall include any amounts of fire state aid received or 103.33 receivable by the relief association, any amounts of municipal 103.34 contributions to the relief association raised from levies on 103.35 real estate or from other available revenue sources exclusive of 103.36 fire state aid, and one-tenth of the amount of assets in excess 104.1 of the accrued liabilities of the relief association calculated 104.2 pursuant to sections 69.772, subdivision 2; 69.773, subdivisions 104.3 2 and 4; or 69.774, subdivision 2, if any. 104.4 (b) The maximum service pension which the relief 104.5 association has authority to provide for in its bylaws for 104.6 payment to a member retiring after the calculation date when the 104.7 minimum age and service requirements specified in subdivision 1 104.8 are met must be determined using the table in paragraph (c) or 104.9 (d), whichever applies. 104.10 (c) For a relief association where the governing bylaws 104.11 provide for a monthly service pension to a retiring member, the 104.12 maximum monthly service pension amount per month for each year 104.13 of service credited that may be provided for in the bylaws is 104.14 the maximum service pension figure corresponding to the average 104.15 amount of available financing per active covered firefighter: 104.16 Minimum Average Amount of Maximum Service Pension 104.17 Available Financing per Amount Payable per Month 104.18 Firefighter for Each Year of Service 104.19 $... $ .25 104.20 42 .50 104.21 84 1.00 104.22 126 1.50 104.23 168 2.00 104.24 209 2.50 104.25 252 3.00 104.26 294 3.50 104.27 335 4.00 104.28 378 4.50 104.29 420 5.00 104.30 503 6.00 104.31 587 7.00 104.32 672 8.00 104.33 755 9.00 104.34 839 10.00 104.35 923 11.00 104.36 1007 12.00 105.1 1090 13.00 105.2 1175 14.00 105.3 1259 15.00 105.4 1342 16.00 105.5 1427 17.00 105.6 1510 18.00 105.7 1594 19.00 105.8 1677 20.00 105.9 1762 21.00 105.10 1845 22.00 105.11 1888 22.50 105.12 1929 23.00 105.13 2014 24.00 105.14 2098 25.00 105.15 2183 26.00 105.16 2267 27.00 105.17 2351 28.00 105.18 2436 29.00 105.19 2520 30.00 105.20 2604 31.00 105.21 2689 32.00 105.22 2773 33.00 105.23 2857 34.00 105.24 2942 35.00 105.25 3026 36.00 105.26 3110 37.00 105.27 3963 38.00 105.28 4047 39.00 105.29 4137 40.00 105.30any amount more than 413740.00105.31 Effective beginning December 31, 2000: 105.32 4227 41.00 105.33 4317 42.00 105.34 4407 43.00 105.35 4497 44.00 105.36 Effective beginning December 31, 2001: 106.1 4587 45.00 106.2 4677 46.00 106.3 4767 47.00 106.4 4857 48.00 106.5 Effective beginning December 31, 2002: 106.6 4947 49.00 106.7 5037 50.00 106.8 5127 51.00 106.9 5217 52.00 106.10 Effective beginning December 31, 2003: 106.11 5307 53.00 106.12 5397 54.00 106.13 5487 55.00 106.14 5577 56.00 106.15 (d) For a relief association in which the governing bylaws 106.16 provide for a lump sum service pension to a retiring member, the 106.17 maximum lump sum service pension amount for each year of service 106.18 credited that may be provided for in the bylaws is the maximum 106.19 service pension figure corresponding to the average amount of 106.20 available financing per active covered firefighter for the 106.21 applicable specified period: 106.22 Minimum Average Amount Maximum Lump Sum Service 106.23 of Available Financing Pension Amount Payable 106.24 per Firefighter for Each Year of Service 106.25 $.. $10 106.26 11 20 106.27 16 30 106.28 23 40 106.29 27 50 106.30 32 60 106.31 43 80 106.32 54 100 106.33 65 120 106.34 77 140 106.35 86 160 106.36 97 180 107.1 108 200 107.2 131 240 107.3 151 280 107.4 173 320 107.5 194 360 107.6 216 400 107.7 239 440 107.8 259 480 107.9 281 520 107.10 302 560 107.11 324 600 107.12 347 640 107.13 367 680 107.14 389 720 107.15 410 760 107.16 432 800 107.17 486 900 107.18 540 1000 107.19 594 1100 107.20 648 1200 107.21 702 1300 107.22 756 1400 107.23 810 1500 107.24 864 1600 107.25 918 1700 107.26 972 1800 107.27 1026 1900 107.28 1080 2000 107.29 1134 2100 107.30 1188 2200 107.31 1242 2300 107.32 1296 2400 107.33 1350 2500 107.34 1404 2600 107.35 1458 2700 107.36 1512 2800 108.1 1566 2900 108.2 1620 3000 108.3 1672 3100 108.4 1726 3200 108.5 1753 3250 108.6 1780 3300 108.7 1820 3375 108.8 1834 3400 108.9 1888 3500 108.10 1942 3600 108.11 1996 3700 108.12 2023 3750 108.13 2050 3800 108.14 2104 3900 108.15 2158 4000 108.16 2212 4100 108.17 2265 4200 108.18 2319 4300 108.19 2373 4400 108.20 2427 4500 108.21 2481 4600 108.22 2535 4700 108.23 2589 4800 108.24 2643 4900 108.25 2697 5000 108.26 2751 5100 108.27 2805 5200 108.28 2859 5300 108.29 2913 5400 108.30 2967 5500 108.31any amount more than 29675500108.32 Effective beginning December 31, 2000: 108.33 3021 5600 108.34 3075 5700 108.35 3129 5800 108.36 3183 5900 109.1 3237 6000 109.2 Effective beginning December 31, 2001: 109.3 3291 6100 109.4 3345 6200 109.5 3399 6300 109.6 3453 6400 109.7 3507 6500 109.8 Effective beginning December 31, 2002: 109.9 3561 6600 109.10 3615 6700 109.11 3669 6800 109.12 3723 6900 109.13 3777 7000 109.14 Effective beginning December 31, 2003: 109.15 3831 7100 109.16 3885 7200 109.17 3939 7300 109.18 3993 7400 109.19 4047 7500 109.20 (e) For a relief association in which the governing bylaws 109.21 provide for a monthly benefit service pension as an alternative 109.22 form of service pension payment to a lump sum service pension, 109.23 the maximum service pension amount for each pension payment type 109.24 must be determined using the applicable table contained in this 109.25 subdivision. 109.26 (f) If a relief association establishes a service pension 109.27 in compliance with the applicable maximum contained in paragraph 109.28 (c) or (d) and the minimum average amount of available financing 109.29 per active covered firefighter is subsequently reduced because 109.30 of a reduction in fire state aid or because of an increase in 109.31 the number of active firefighters, the relief association may 109.32 continue to provide the prior service pension amount specified 109.33 in its bylaws, but may not increase the service pension amount 109.34 until the minimum average amount of available financing per 109.35 firefighter under the table in paragraph (c) or (d), whichever 109.36 applies, permits. 110.1 (g)No relief association is authorized to provide a110.2service pension in an amount greater than $40 per month per year110.3of service credit or in an amount greater than $5,500 lump sum110.4per year of service credit even if the minimum average amount of110.5available financing per firefighter for a relief association110.6providing a monthly benefit service pension is greater than110.7$4,137, or, for a relief association providing a lump sum110.8service pension, is greater than $2,967.No relief association 110.9 is authorized to provide a service pension in an amount greater 110.10 than the largest applicable flexible service pension maximum 110.11 amount even if the amount of available financing per firefighter 110.12 is greater than the financing amount associated with the largest 110.13 applicable flexible service pension maximum. 110.14 Sec. 6. Minnesota Statutes 1998, section 424A.02, 110.15 subdivision 7, is amended to read: 110.16 Subd. 7. [DEFERRED SERVICE PENSIONS.] (a) A member of a 110.17 relief association to which this section applies is entitled to 110.18 a deferred service pension if the member: 110.19 (1) has completed the lesser of the minimum period of 110.20 active service with the fire department specified in the bylaws 110.21 or 20 years of active service with the fire department; 110.22 (2) has completed at least five years of active membership 110.23 in the relief association; and 110.24 (3) separates from active service and membership before 110.25 reaching age 50 or the minimum age for retirement and 110.26 commencement of a service pension specified in the bylaws 110.27 governing the relief association if that age is greater than age 110.28 50. 110.29 (b) The deferred service pension starts when the former 110.30 member reaches age 50 or the minimum age specified in the bylaws 110.31 governing the relief association if that age is greater than age 110.32 50 and when the former member makes a valid written application. 110.33 (c) A relief association that provides a lump sum service 110.34 pension may, when its governing bylaws so provide, pay interest 110.35 on the deferred lump sum service pension during the period of 110.36 deferral. If provided for in the bylaws, interest must be paid 111.1 at the rate actually earned on that portion of the assets if the 111.2 deferred benefit amount is invested by the relief association,111.3but not to exceed the interest rate specified in section111.4356.215, subdivision 4d, and must bein a separate account 111.5 established and maintained by the relief association or in a 111.6 separate investment vehicle held by the relief association or, 111.7 if not, at the interest rate of five percent, compounded 111.8 annuallybased on calendar year balances. 111.9 (d) For a deferred service pension that is transferred to a 111.10 separate account established and maintained by the relief 111.11 association or separate investment vehicle held by the relief 111.12 association, the deferred member bears the full investment risk 111.13 subsequent to transfer and in calculating the accrued liability 111.14 of the volunteer firefighter relief association that pays a lump 111.15 sum service pension, the accrued liability for deferred service 111.16 pensions is equal to the separate relief association account 111.17 balance or the fair market value of the separate investment 111.18 vehicle held by the relief association. 111.19 (e) The deferred service pension is governed by and must be 111.20 calculated under the general statute, special law, relief 111.21 association articles of incorporation,orand relief association 111.22 bylaw provisions applicable on the date on which the member 111.23 separated from active service with the fire department and 111.24 active membership in the relief association. 111.25 Sec. 7. Minnesota Statutes 1998, section 424A.02, 111.26 subdivision 9, is amended to read: 111.27 Subd. 9. [LIMITATION ON ANCILLARY BENEFITS.] Any relief 111.28 association, including any volunteer firefighters relief 111.29 association governed by section 69.77 or any volunteer 111.30 firefighters division of a relief association governed by 111.31 chapter 424, may only pay ancillary benefits which would 111.32 constitute an authorized disbursement as specified in section 111.33 424A.05 subject to the following requirements or limitations: 111.34(a)(1) With respect to a relief association in which 111.35 governing bylaws provide for a lump sum service pension to a 111.36 retiring member, no ancillary benefit may be paid to any former 112.1 member or paid to any person on behalf of any former member 112.2 after the former member(1)(i) terminates active service with 112.3 the fire department and active membership in the relief 112.4 association; and(2)(ii) commences receipt of a service pension 112.5 as authorizedpursuant tounder this section; and 112.6(b)(2) With respect to any relief association, no 112.7 ancillary benefit paid or payable to any member, to any former 112.8 member, or to any person on behalf of any member or former 112.9 member, may exceed in amount the total earned service pension of 112.10 the member or former member. The total earned service 112.11 pensionshallmust be calculated using the service pension 112.12 amount specified in the bylaws of the relief association and the 112.13 years of service credited to the member or former member. The 112.14 years of serviceshallmust be determined as of(1)(i) the date 112.15 the member or former member became entitled to the ancillary 112.16 benefit; or(2)(ii) the date the member or former member died 112.17 entitling a survivor or the estate of the member or former 112.18 member to an ancillary benefit. The ancillary benefitshall112.19 must be calculated(1)(i) without regard to whether the member 112.20 or former member had attained the minimum amount of service and 112.21 membership credit specified in the governing bylaws; 112.22 and(2)(ii) without regard to the percentage amounts specified 112.23 in subdivision 2; except that the bylaws of any relief 112.24 association may provide for the payment of a survivor benefit in 112.25 an amount not to exceed five times the yearly service pension 112.26 amount specified in the bylaws on behalf of any member who dies 112.27 before having performed five years of active service in the fire 112.28 department with which the relief association is affiliated. 112.29 Sec. 8. Minnesota Statutes 1998, section 424A.02, is 112.30 amended by adding a subdivision to read: 112.31 Subd. 9b. [REPAYMENT OF SERVICE PENSION IN CERTAIN 112.32 INSTANCES.] If a retired volunteer firefighter does not 112.33 permanently separate from active firefighting service as 112.34 required by subdivision 1, section 424A.001, subdivision 9, and 112.35 by resuming active service as a firefighter in the same 112.36 volunteer fire department or as a person in charge of 113.1 firefighters in the same volunteer fire department, no 113.2 additional service pension amount is payable to the person, no 113.3 additional service is creditable to the person, and the person 113.4 shall repay any previously received service pension. 113.5 Sec. 9. Minnesota Statutes 1998, section 424A.02, 113.6 subdivision 13, is amended to read: 113.7 Subd. 13. [COMBINED SERVICE PENSIONS.] (a) If the articles 113.8 of incorporation or bylaws of the associations so provide, a 113.9 volunteer firefighter with credit for service as an active 113.10 firefighter in more than one volunteer firefighters relief 113.11 association is entitled, when the applicable requirements of 113.12 paragraph (b) are met and when otherwise qualified, to a 113.13 prorated service credit from each relief association. 113.14 (b) A volunteer firefighter receiving a prorated service 113.15 pension under this subdivision must have total service credit of 113.16 ten years or more, if every affected relief association does not 113.17 require only a five-year service vesting requirement, or five 113.18 years or more, if every affected relief association requires 113.19 only a five-year service vesting requirement, as a member of two 113.20 or more relief associationsis entitled, whenotherwise 113.21 qualified, to a prorated service pension from each association113.22in which. The memberhasmust have one year or more of service 113.23 credit in each relief association. The prorated service pension 113.24 must be based on the service pension amount in effect for the 113.25 relief association on the date on which active volunteer 113.26 firefighting services covered by that relief association 113.27 terminate. To receive a service pension under this subdivision, 113.28 the firefighter must become a member of the second or succeeding 113.29 association and must give notice of membership to the prior 113.30 association within two years of the date of termination of 113.31 active service with the prior association. The notice must be 113.32 attested to by the second or subsequent association secretary. 113.33 Sec. 10. Minnesota Statutes 1998, section 424A.04, 113.34 subdivision 1, is amended to read: 113.35 Subdivision 1. [MEMBERSHIP.] (a) Every relief association 113.36 directly associated with a municipal fire department shall be 114.1 managed by a board of trustees consisting of nine members. Six 114.2 trustees shall be elected from the membership of the relief 114.3 association and three trustees shall be drawn from the officials 114.4 of the municipalities served by the fire department to which the 114.5 relief association is directly associated. The bylaws of a 114.6 relief association may provide that one of the six trustees 114.7 elected from the relief association may be a retired member 114.8 receiving a monthly pension who is elected by the membership of 114.9 the relief association. The three ex officio trustees shall be 114.10 the mayor, the clerk, clerk-treasurer or finance director, and 114.11 the chief of the municipal fire department. 114.12 (b) Every relief association that is a subsidiary of an 114.13 independent nonprofit firefighting corporation shall be managed 114.14 by a board of trustees consisting of ten members. Six trustees 114.15 shall be elected from the membership of the relief association, 114.16 three trustees shall be drawn from the officials of the 114.17 municipalities served by the fire department to which the relief 114.18 association is directly associated, and one trustee shall be the 114.19 fire chief. The bylaws of a relief association may provide that 114.20 one of the six trustees elected from the relief association may 114.21 be a retired member receiving a monthly pension who is elected 114.22 by the membership of the relief association. The three ex 114.23 officio trustees who are the elected officials shall be selected 114.24 as follows: 114.25 (1) if only one municipality contracts with the independent 114.26 nonprofit firefighting corporation, the ex officio trustees 114.27 shall be three elected officials of the contracting municipality 114.28 who are designated by the governing body of the municipality; 114.29 (2) if two municipalities contract with the independent 114.30 nonprofit firefighting corporation, the ex officio trustees 114.31 shall be two elected officials of the largest municipality in 114.32 population and one elected official of the next largest 114.33 municipality in population who are designated by the governing 114.34 bodies of the applicable municipalities; or 114.35 (3) if three or more municipalities contract with the 114.36 independent nonprofit corporation, the ex officio trustees shall 115.1 be one elected official of each of the three largest 115.2 municipalities in population who are designated by the governing 115.3 bodies of the applicable municipalities. 115.4 (c) If a relief association lacks the ex officio board 115.5 members provided for in paragraph (a) or (b) because the fire 115.6 department is not located in or associated with an organized 115.7 municipality, the ex officio board members must be appointed 115.8 from the fire department service area by the board of 115.9 commissioners of the applicable county. The term of these 115.10 appointed ex officio board members is three years or until the 115.11 person's successor is qualified, whichever is later. 115.12 (d) An ex officio trustee under paragraph (a), (b), or (c) 115.13 shall have all the rights and duties accorded to any other 115.14 trustee except the right to be an officer of the board of 115.15 trustees. 115.16 (e) A board shall have at least three officers, which shall 115.17 be a president, a secretary and a treasurer. These officers 115.18 shall be elected from among the elected trustees by either the 115.19 full board of trustees or by the membership, as specified in the 115.20 bylaws, and in no event shall any trustee hold more than one 115.21 officer position at any one time. The terms of the elected 115.22 trustees and of the officers of the board shall be specified in 115.23 the bylaws of the relief association, but shall not exceed three 115.24 years. If the term of the elected trustees exceeds one year, 115.25 the election of the various trustees elected from the membership 115.26 shall initially and shall thereafter continue to be staggered on 115.27 as equal a basis as is practicable. 115.28 Sec. 11. Minnesota Statutes 1998, section 424A.05, 115.29 subdivision 3, is amended to read: 115.30 Subd. 3. [AUTHORIZED DISBURSEMENTS FROM THE SPECIAL 115.31 FUND.] (a) Disbursements from the special fundshallare not 115.32 permitted to be made for any purpose other than one of the 115.33 following: 115.34 (1) For the payment of service pensions to retired members 115.35 of the relief association if authorized and paid pursuant to law 115.36 and the bylaws governing the relief association; 116.1 (2) For the payment of temporary or permanent disability 116.2 benefits to disabled members of the relief association if 116.3 authorized and paid pursuant to law and specified in amount in 116.4 the bylaws governing the relief association; 116.5 (3) For the payment of survivor benefits to surviving 116.6 spouses and surviving children, or if none, to designated 116.7 beneficiaries, of deceased members of the relief association if 116.8 authorized by and paid pursuant to law and specified in amount 116.9 in the bylaws governing the relief association; 116.10 (4) For the payment of any funeral benefits to the 116.11 surviving spouse, or if no surviving spouse, the estate, of the 116.12 deceased member of the relief association if authorized by law 116.13 and specified in amount in the bylaws governing the relief 116.14 association; 116.15 (5) For the payment of the fees, dues and assessments to 116.16 the Minnesota state fire department associationand, to the 116.17 Minnesota area relief association coalition, and to the state 116.18 volunteer firefighters' benefit association in order to entitle 116.19 relief association members to membership in and the benefits of 116.20 thesestateassociations or organizations; and 116.21 (6) For the payment of administrative expenses of the 116.22 relief association as authorized pursuant to section 69.80. 116.23 (b) For purposes of this chapter, a designated beneficiary 116.24 must be a natural person. 116.25 Sec. 12. [VOLUNTEER FIREFIGHTERS LUMP SUM SERVICE 116.26 BENEFITS.] 116.27 Subdivision 1. [APPLICATION.] This section applies to a 116.28 surviving spouse of a person who: 116.29 (1) was born on August 18, 1941; 116.30 (2) was employed as a building inspector by the city of St. 116.31 Paul; 116.32 (3) died during the course of his employment duties as a 116.33 building inspector on December 24, 1997; 116.34 (4) began service as a volunteer firefighter for the 116.35 Woodbury fire department in 1980 and continued that service up 116.36 to the time of his death; and 117.1 (5) would have been eligible to retire as a volunteer 117.2 firefighter and receive a lump sum service pension calculated at 117.3 the rate of $4,000 for each year of service on January 1, 1998. 117.4 Subd. 2. [ELIGIBILITY FOR BENEFIT.] Notwithstanding any 117.5 law to the contrary, the eligible person described in 117.6 subdivision 1 is entitled to receive a survivor benefit from the 117.7 Woodbury fire department relief association benefit plan 117.8 calculated at the rate that would have been in effect had the 117.9 person described in subdivision 1 lived until January 1, 1998. 117.10 Subd. 3. [RESTRICTIONS.] This section does not authorize 117.11 payment of more than a single survivor benefit to the eligible 117.12 individual specified in subdivision 1. If a survivor benefit 117.13 has been paid to the eligible individual by the Woodbury fire 117.14 department relief association, this section authorizes payment 117.15 to the eligible individual of the difference between the amount 117.16 previously paid and the amount payable under the Woodbury fire 117.17 department relief association benefit plan in effect on January 117.18 1, 1998, assuming the volunteer firefighter survived and 117.19 provided service to that date. 117.20 Sec. 13. [EFFECTIVE DATE.] 117.21 (a) Sections 1 to 5 and 7 to 11 are effective on the day 117.22 following final enactment. 117.23 (b) Section 6 is effective on the day following final 117.24 enactment and, with the appropriate bylaw amendment and 117.25 municipal approval, applies to deferred service pensions where 117.26 deferral began before the effective date of the municipal 117.27 approval. 117.28 (c) For a deferred service pension under section 6 that is 117.29 invested in a separate account or separate investment vehicle, 117.30 interest is payable up to the date of the transfer consistent 117.31 with the law and bylaw provisions in effect when the firefighter 117.32 terminated active firefighting service and actual investment 117.33 performance thereafter. 117.34 (d) Section 12 is effective on the day after the date on 117.35 which the Woodbury city council and the chief clerical officer 117.36 of the city of Woodbury complete, in a timely manner, their 118.1 compliance with Minnesota Statutes, section 645.021, 118.2 subdivisions 2 and 3. 118.3 ARTICLE 15 118.4 DISSOLUTIONS AND CONSOLIDATIONS 118.5 OF VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS 118.6 Section 1. [424B.01] [DEFINITIONS.] 118.7 Subdivision 1. [GENERALLY.] Unless the context of the 118.8 provision indicates that a different meaning is intended, each 118.9 of the terms in the following subdivisions have the meaning 118.10 indicated. 118.11 Subd. 2. [APPLICABLE MUNICIPALITY.] "Applicable 118.12 municipality" means the municipality or municipalities in which 118.13 a consolidating relief association is located and to which a 118.14 consolidating relief association is associated by virtue of the 118.15 presence of at least one municipal official on the relief 118.16 association board of trustees under section 424A.04. 118.17 Subd. 3. [CONSOLIDATING RELIEF 118.18 ASSOCIATION.] "Consolidating relief association" means a 118.19 volunteer firefighter relief association organized under chapter 118.20 317A and governed by chapter 424A that has initiated or has 118.21 completed the process of consolidating with one or more other 118.22 relief associations under this chapter. 118.23 Subd. 4. [PRIOR RELIEF ASSOCIATIONS.] "Prior relief 118.24 associations" means the two or more volunteer firefighter relief 118.25 associations that have initiated the consolidation process under 118.26 this chapter by action of the board of trustees of the relief 118.27 association. 118.28 Subd. 5. [RELIEF ASSOCIATION MEMBERSHIP.] "Relief 118.29 association membership" means all active members of the 118.30 volunteer firefighter relief association, all deferred retirees 118.31 and other vested inactive members of the volunteer firefighter 118.32 relief association, and any persons regularly receiving a 118.33 service pension or other retirement benefit from the volunteer 118.34 firefighters relief association. 118.35 Subd. 6. [SUBSEQUENT RELIEF ASSOCIATION.] "Subsequent 118.36 relief association" means the volunteer firefighters relief 119.1 association that is designated to be the successor relief 119.2 association in the consolidation initiative resolutions of the 119.3 board of trustees of the prior relief associations or the 119.4 volunteer firefighters relief association organized under 119.5 chapters 317A and 424A for the purpose of operating as the 119.6 successor relief association after consolidation under this 119.7 chapter. 119.8 Sec. 2. [424B.02] [CONSOLIDATION AUTHORIZED.] 119.9 Subdivision 1. [INITIATION.] (a) With the approval of the 119.10 governing body of each applicable municipality, two or more 119.11 relief associations associated with fire departments serving 119.12 contiguous fire districts may initiate the consolidation of the 119.13 relief associations into a subsequent relief association. 119.14 (b) Initiation of a consolidation action must occur through 119.15 the proposal of a consolidation resolution to the board of 119.16 trustees of each volunteer firefighter relief association 119.17 notification of the relief association membership of the 119.18 potential consolidation and after conducting a public meeting on 119.19 the consolidation question. 119.20 Subd. 2. [INITIATIVE PROCESSING; FILING.] (a) After a 119.21 consolidation initiative resolution has been filed with the 119.22 relief association board of trustees by one or more members of 119.23 the board, the relief association secretary shall provide 119.24 written notification of the initiative to the relief association 119.25 membership. After notification of the relief association 119.26 membership, the board of trustees must hold a public hearing on 119.27 the initiative. After the hearing, the board of trustees shall 119.28 act on the consolidation resolution. 119.29 (b) If the consolidation resolution is adopted by majority 119.30 vote of the board of trustees, the secretary shall file a copy 119.31 of the resolution with the other relief association or 119.32 associations also considering consolidation. 119.33 (c) If two or more volunteer firefighter relief 119.34 associations adopt a consolidation resolution, those relief 119.35 associations are consolidated effective the next following 119.36 January 1. 120.1 (d) Within 30 days of the adoption of the consolidation 120.2 resolution by all prior relief associations, the secretaries of 120.3 the applicable prior relief associations shall jointly notify in 120.4 writing the state auditor, the commissioner of revenue, and the 120.5 secretary of state of the consolidation. 120.6 Sec. 3. [424B.03] [SUBSEQUENT RELIEF ASSOCIATION.] 120.7 Subdivision 1. [NEW RELIEF ASSOCIATION.] If the subsequent 120.8 relief association is a new volunteer firefighter relief 120.9 association, the consolidated volunteer firefighters relief 120.10 association must be incorporated under chapter 317A. The 120.11 incorporators of the consolidated relief association must 120.12 include at least one board member of each of the former 120.13 volunteer firefighters relief associations. 120.14 Subd. 2. [SUCCESSOR RELIEF ASSOCIATION.] If the subsequent 120.15 relief association is one of the prior relief associations, the 120.16 articles of incorporation and bylaws must be appropriately 120.17 revised, effective on the consolidation effective date, and a 120.18 revised board of trustees must be elected before the 120.19 consolidation effective date. 120.20 Sec. 4. [424B.04] [GOVERNANCE OF CONSOLIDATED VOLUNTEER 120.21 FIREFIGHTERS RELIEF ASSOCIATION.] 120.22 Subdivision 1. [BOARD OF TRUSTEES.] The consolidated 120.23 volunteer firefighters relief association is governed by a board 120.24 of trustees as provided in section 424A.04, subdivision 1. 120.25 Subd. 2. [COMPOSITION OF BOARD.] The board must have three 120.26 officers, including a president, a secretary, and a treasurer. 120.27 The membership of the consolidated volunteer firefighters relief 120.28 association must elect the three officers from the board 120.29 members. A board of trustees member may not hold more than one 120.30 officer position at the same time. 120.31 Subd. 3. [BOARD ADMINISTRATION.] The board of trustees 120.32 must administer the affairs of the relief association consistent 120.33 with this chapter and the applicable provisions of chapters 69, 120.34 356A, and 424A. 120.35 Sec. 5. [424B.05] [SPECIAL AND GENERAL FUNDS.] 120.36 The consolidated volunteer firefighters relief association 121.1 must establish and maintain a special fund and a general fund. 121.2 The special fund must be established and maintained as provided 121.3 in section 424A.05. The general fund must be established and 121.4 maintained as provided in section 424A.06. 121.5 Sec. 6. [424B.06] [TRANSFERS.] 121.6 Subdivision 1. [GENERALLY.] On the effective date of 121.7 consolidation, the records, assets, and liabilities of the prior 121.8 volunteer firefighter relief associations are transferred to the 121.9 consolidated volunteer firefighters relief association. On the 121.10 effective date of consolidation, the prior volunteer 121.11 firefighters relief associations cease to exist as legal 121.12 entities, except for the purposes of winding up association 121.13 affairs as provided by this chapter. 121.14 Subd. 2. [TRANSFER OF ADMINISTRATION.] On the effective 121.15 date of consolidation, the administration of the prior relief 121.16 associations is transferred to the board of trustees of the 121.17 subsequent volunteer firefighters relief association. 121.18 Subd. 3. [TRANSFER OF RECORDS.] On the effective date of 121.19 consolidation, the secretary and the treasurer of the prior 121.20 volunteer firefighters relief associations shall transfer all 121.21 records and documents relating to the prior relief associations 121.22 to the secretary and treasurer of the subsequent volunteer 121.23 firefighters relief association. 121.24 Subd. 4. [TRANSFER OF SPECIAL FUND ASSETS AND 121.25 LIABILITIES.] (a) On the effective date of consolidation, the 121.26 secretary and the treasurer of a prior volunteer firefighters 121.27 relief association shall transfer the assets of the special fund 121.28 of the applicable relief association to the special fund of the 121.29 subsequent relief association. Unless the appropriate secretary 121.30 and treasurer decide otherwise, the assets may be transferred as 121.31 investment securities rather than cash. The transfer must 121.32 include any accounts receivable. The appropriate secretary must 121.33 settle any accounts payable from the special fund of the relief 121.34 association before the effective date of consolidation. 121.35 (b) Upon the transfer of the assets of the special fund of 121.36 a prior relief association, the pension liabilities of that 122.1 special fund become the obligation of the special fund of the 122.2 subsequent volunteer firefighters relief association. 122.3 (c) Upon the transfer of the prior relief association 122.4 special fund assets, the board of trustees of the subsequent 122.5 volunteer firefighters relief association has legal title to and 122.6 management responsibility for the transferred assets as trustees 122.7 for persons having a beneficial interest in those assets arising 122.8 out of the benefit coverage provided by the prior relief 122.9 association. 122.10 (d) The subsequent volunteer firefighters relief 122.11 association is the successor in interest in all claims for and 122.12 against the special funds of the prior volunteer firefighters 122.13 relief associations or the applicable municipalities with 122.14 respect to the special funds of the prior relief associations. 122.15 The status of successor in interest does not apply to any claim 122.16 against a prior relief association, the municipality in which 122.17 that relief association is located, or any person connected with 122.18 the prior relief association or the municipality, based on any 122.19 act or acts that were not done in good faith and that 122.20 constituted a breach of fiduciary responsibility under common 122.21 law or chapter 356A. 122.22 Sec. 7. [424B.07] [DISSOLUTION OF PRIOR GENERAL FUND 122.23 BALANCES.] 122.24 Before the effective date of consolidation, the secretaries 122.25 of the volunteer firefighters relief associations shall settle 122.26 any accounts payable from the respective general fund or any 122.27 other relief association fund in addition to the relief 122.28 association special fund. Investments held by a fund of the 122.29 prior relief associations in addition to the special fund must 122.30 be liquidated before the effective date of consolidation as the 122.31 bylaws of the relief association provide. Before the effective 122.32 date of consolidation, the respective relief associations must 122.33 pay all applicable general fund expenses from their respective 122.34 general funds. Any balance remaining in the general fund or in 122.35 a fund other than the relief association special fund as of the 122.36 effective date of consolidation must be paid to the new general 123.1 fund of the subsequent volunteer firefighter relief association. 123.2 Sec. 8. [424B.08] [TERMINATION OF PRIOR RELIEF 123.3 ASSOCIATIONS.] 123.4 Following the transfer of administration, records, special 123.5 fund assets, and special fund liabilities from the prior relief 123.6 associations to the subsequent volunteer firefighters relief 123.7 association, the prior volunteer firefighter relief associations 123.8 cease to exist as legal entities for any purpose. The 123.9 subsequent relief association secretary shall notify the 123.10 following governmental officials of the termination of the 123.11 respective volunteer firefighter relief associations and of the 123.12 establishment of the subsequent volunteer firefighters relief 123.13 association: 123.14 (1) Minnesota secretary of state; 123.15 (2) Minnesota state auditor; 123.16 (3) Minnesota commissioner of revenue; and 123.17 (4) commissioner of the federal Internal Revenue Service. 123.18 Sec. 9. [424B.09] [ADMINISTRATIVE EXPENSES.] 123.19 The payment of authorized administrative expenses of the 123.20 subsequent volunteer firefighters relief association must be 123.21 from the special fund of the subsequent volunteer firefighters 123.22 relief association in accordance with section 69.80, and as 123.23 provided for in the bylaws of the subsequent volunteer 123.24 firefighters relief association and approved by the board of 123.25 trustees of the subsequent volunteer firefighters relief 123.26 association. The payment of any other expenses of the 123.27 subsequent volunteer firefighters relief association must be 123.28 from the general fund of the subsequent volunteer firefighters 123.29 relief association in accordance with section 69.80 and as 123.30 provided for in the bylaws of the subsequent volunteer 123.31 firefighters relief association and approved by the board of 123.32 trustees of the subsequent volunteer firefighters relief 123.33 association. 123.34 Sec. 10. [424B.10] [BENEFITS; FUNDING.] 123.35 Subdivision 1. [BENEFITS.] (a) Notwithstanding section 123.36 424A.02, subdivision 3, to the contrary, the service pension of 124.1 the subsequent relief association as of the effective date of 124.2 consolidation is the highest dollar amount service pension 124.3 amount of any prior volunteer firefighters relief association in 124.4 effect immediately before the consolidation initiation if the 124.5 pension amount was implemented consistent with section 424A.02. 124.6 (b) Any increase in the service pension amount beyond the 124.7 amount implemented under paragraph (a) must conform with the 124.8 requirements and limitations of sections 69.771 to 69.775 and 124.9 424A.02. 124.10 Subd. 2. [FUNDING.] (a) Unless the applicable 124.11 municipalities agree in writing to allocate the minimum 124.12 municipal obligation in a different manner, the minimum 124.13 municipal obligation under section 69.772 or 69.773, whichever 124.14 applies, must be allocated between the applicable municipalities 124.15 in proportion to their fire state aid. 124.16 (b) If any applicable municipality fails to meet its 124.17 portion of the minimum municipal obligation to the subsequent 124.18 relief association, all other applicable municipalities are 124.19 jointly obligated to provide the required funding upon 124.20 certification by the relief association secretary. An 124.21 applicable municipality that pays the minimum municipal 124.22 obligation for another applicable municipality, the municipality 124.23 may collect the payment amount, plus a 25 percent surcharge, 124.24 from the responsible applicable municipality by any available 124.25 means, including deduction from any state aid or payment amount 124.26 payable to the responsible municipality upon certification of 124.27 the necessary information to the commissioner of finance. 124.28 Sec. 11. [424B.20] [DISSOLUTION WITHOUT CONSOLIDATION.] 124.29 Subdivision 1. [APPLICABLE DISSOLUTIONS.] This section 124.30 applies if the fire department associated with a volunteer 124.31 firefighter relief association is dissolved or eliminated by 124.32 action of the governing body of the municipality in which the 124.33 fire department was located or by the independent nonprofit 124.34 firefighting corporation, whichever applies, and no 124.35 consolidation with another volunteer firefighter relief 124.36 association under sections 424B.01 to 424B.10 is sought, or if a 125.1 volunteer firefighter relief association is dissolved or 125.2 eliminated with municipal approval, but the fire department 125.3 associated with the volunteer firefighter relief association is 125.4 not dissolved or eliminated, and no consolidation with another 125.5 volunteer firefighter relief association under sections 424B.01 125.6 to 424B.10 is applicable. 125.7 Subd. 2. [PROCEDURES.] As part of the dissolution process, 125.8 all legal obligations of the relief association other than 125.9 service pensions and benefits must be settled under subdivision 125.10 3, a benefit trust must be established under subdivision 4, and 125.11 the affairs of the relief association must be concluded under 125.12 subdivision 5. 125.13 Subd. 3. [SETTLEMENT OF NONBENEFIT LEGAL OBLIGATIONS.] (a) 125.14 Prior to the effective date of the dissolution of the volunteer 125.15 firefighter relief association established by the relief 125.16 association board of trustees, the board shall determine the 125.17 following: 125.18 (1) the fair market value of the assets of the special 125.19 fund; 125.20 (2) the total amount of the accounts payable and other 125.21 legal obligations of the special fund, excluding the accrued 125.22 liability of the special fund for service pensions and other 125.23 benefits; and 125.24 (3) the accrued liability of the special fund for service 125.25 pensions and other benefits payable or accrued under the 125.26 applicable bylaws of the relief association and chapter 424A. 125.27 (b) On or before the effective date of the dissolution of 125.28 the volunteer firefighter relief association, the board shall 125.29 liquidate sufficient special fund assets to pay the legal 125.30 obligations of the special fund and must settle those legal 125.31 obligations. 125.32 (c) On or before the effective date of the dissolution of 125.33 the volunteer firefighter relief association, the board shall 125.34 settle the legal obligations of the general fund of the relief 125.35 association. 125.36 Subd. 4. [BENEFIT TRUST FUND ESTABLISHMENT.] (a) After the 126.1 settlement of nonbenefit legal obligations of the special fund 126.2 of the volunteer firefighter relief association under 126.3 subdivision 3, the board of the relief association shall 126.4 transfer the remaining assets of the special fund, as securities 126.5 or in cash, as applicable, to the chief financial official of 126.6 the municipality in which the associated fire department was 126.7 located if the fire department was a municipal fire department 126.8 or to the chief financial official of the municipality with the 126.9 largest population served by the fire department if the fire 126.10 department was an independent nonprofit firefighting 126.11 corporation. The board shall also compile a schedule of the 126.12 relief association members to whom a service pension is or will 126.13 be owed, any beneficiary to whom a benefit is owed, the amount 126.14 of the service pension or benefit payable based on the 126.15 applicable bylaws and state law and the service rendered to the 126.16 date of the dissolution, and the date on which the pension or 126.17 benefit would first be payable under the bylaws of the relief 126.18 association and state law. 126.19 (b) The municipality in which is located a volunteer 126.20 firefighter relief association that is dissolving under this 126.21 section shall establish a separate account in the municipal 126.22 treasury which must function as a trust fund for members of the 126.23 volunteer firefighter relief association and their beneficiaries 126.24 to whom the volunteer firefighter relief association owes a 126.25 service pension or other benefit under the bylaws of the relief 126.26 association and state law. Upon proper application, on or after 126.27 the initial date on which the service pension or benefit is 126.28 payable, the municipal treasurer shall pay the pension or 126.29 benefit due, based on the schedule prepared under paragraph (a) 126.30 and the other records of the dissolved relief association. The 126.31 trust fund under this section must be invested and managed 126.32 consistent with section 69.775 and chapter 356A. Upon payment 126.33 of the last service pension or benefit due and owing, any 126.34 remaining assets in the trust fund cancel to the general fund of 126.35 the municipality. If the special fund of the volunteer 126.36 firefighter relief association had an unfunded actuarial accrued 127.1 liability upon dissolution, the municipality is liable for that 127.2 unfunded actuarial accrued liability. 127.3 Subd. 5. [RELIEF ASSOCIATION AFFAIRS WIND-UP.] Upon 127.4 dissolution, the board of trustees of the volunteer firefighter 127.5 relief association shall transfer the records of the relief 127.6 association to the chief administrative officer of the 127.7 applicable municipality. The board shall also notify the 127.8 commissioner of revenue, the state auditor, and the secretary of 127.9 state of the dissolution within 30 days of the effective date of 127.10 the dissolution. 127.11 Sec. 12. [424B.21] [ANNUITY PURCHASES UPON DISSOLUTION.] 127.12 The board of trustees of a volunteer firefighter relief 127.13 association that is scheduled for dissolution may purchase 127.14 annuity contracts under section 424A.02, subdivision 8a, instead 127.15 of transferring special fund assets to a municipal trust fund 127.16 under section 424B.20, subdivision 4. Payment of an annuity for 127.17 which a contract is purchased may not commence before the 127.18 retirement age specified in the relief association bylaws and in 127.19 compliance with section 424A.02, subdivision 1. Legal title to 127.20 the annuity contract transfers to the municipal trust fund under 127.21 section 424B.20, subdivision 4. 127.22 Sec. 13. [REPEALER.] 127.23 Minnesota Statutes 1998, section 424A.02, subdivision 11, 127.24 is repealed. 127.25 Sec. 14. [EFFECTIVE DATE.] 127.26 Sections 1 to 13 are effective on July 1, 2000. 127.27 ARTICLE 16 127.28 MINNEAPOLIS POLICE AND FIREFIGHTERS 127.29 RELIEF ASSOCIATION CHANGES 127.30 Section 1. Minnesota Statutes 1998, section 423B.01, is 127.31 amended to read: 127.32 423B.01 [MINNEAPOLIS POLICE RELIEF ASSOCIATION; 127.33 DEFINITIONS.] 127.34 Subdivision 1. [TERMS.] For purposes of sections 423B.01 127.35 to 423B.18, unless the context clearly indicates otherwise, each 127.36 of the terms defined in this section has the indicated meaning. 128.1 Subd. 2. [ACTIVE MEMBER.] "Active member" means a person 128.2 who was hired and duly appointed by the city of Minneapolis 128.3 before May 1, 1959, as a police stenographer, police clerk, 128.4 police telephone operator, police radio operator, or police 128.5 mechanic or before June 15, 1980, as a police officer, police 128.6 matron, or assistant police matron, who is regularly entered on 128.7 the payroll of the police department, and who serves on active 128.8 duty. 128.9 Subd. 3. [ACTIVE MEMBER PERCENTAGE.] The "active member 128.10 percentage" is the total number of units accrued by active 128.11 members of the association divided by the sum of the total 128.12 number of units to which eligible members are entitled and 128.13 active members of the association have accrued. 128.14 Subd. 4. [AGE.] "Age" means a person's age at the person's 128.15 latest birthday. 128.16 Subd.45. [ANNUAL POSTRETIREMENT PAYMENT.] "Annual 128.17 postretirement payment" means the payment of a lump sum 128.18 postretirement benefit under section 423B.15 to an eligible 128.19 member on June 1 following the determination date in any year. 128.20 Subd.56. [ASSOCIATION.] "Association" means the 128.21 Minneapolis police relief association. 128.22 Subd. 7. [CITY.] "City" means the city of Minneapolis. 128.23 Subd. 8. [DETERMINATION DATE.] "Determination date" means 128.24 December 31 of each year. 128.25 Subd.69. [DISABILITY.] "Disability" means a physical or 128.26 mental incapacity of an active member to perform the duties of 128.27 the person's position in the service of the police department. 128.28 Subd.710. [DISCHARGE.] "Discharge" means a complete 128.29 separation from service in the police department. 128.30 Subd.811. [ELIGIBLE MEMBER.] "Eligible member" means a 128.31 person, including a service pensioner, a disability pensioner, a 128.32 survivor, or dependent of a deceased active member, service 128.33 pensioner, or disability pensioner, who received a pension or 128.34 benefit from the relief association during the 12 months before 128.35 the determination date. 128.36 Subd.912. [EXCESS INVESTMENT INCOME.] "Excess investment 129.1 income" means the amount, if any, by which the average time 129.2 weighted total rate of return earned by the fund in the most 129.3 recent prior five fiscal years has exceeded the actual average 129.4 percentage increase in the current monthly salary of a first 129.5 grade patrol officer in the most recent prior five fiscal years 129.6 plus two percent, and must be expressed as a dollar amount. The 129.7 amount may not exceed one percent of the total assets of the 129.8 fund, except when the actuarial value of assets of the fund 129.9 according to the most recent annual actuarial valuation prepared 129.10 in accordance with sections 356.215 and 356.216 is greater than 129.11 102 percent of its actuarial accrued liabilities, in which case 129.12 the amount must not exceed 1-1/2 percent of the total assets of 129.13 the fund, and does not exist unless the yearly average 129.14 percentage increase of the time weighted total rate of return of 129.15 the fund for the previous five years exceeds by two percent the 129.16 yearly average percentage increase in monthly salary of a first 129.17 grade patrol officer during the previous five calendar years. 129.18 Subd.1013. [FUND.] "Fund" means the special fund of the 129.19 relief association. 129.20 Subd. 14. [NET EXCESS ASSET AMOUNT PAYMENT.] "Net excess 129.21 asset amount payment" means the payment of an additional 129.22 postretirement payment under section 2 to an eligible member on 129.23 June 1 following the determination date in the given year. 129.24 Subd. 15. [NET TOTAL EXCESS ASSET AMOUNT.] "Net total 129.25 excess asset amount" is the total excess asset amount stated in 129.26 dollars and multiplied by the quantity one minus the active 129.27 member percentage. 129.28 Subd.1116. [RETIRED MEMBER.] "Retired member" means a 129.29 former active member who has terminated active service in the 129.30 police department and who is entitled to receive a pension or 129.31 benefit under sections 423B.01 to 423B.18, as amended, or any 129.32 predecessor law. 129.33 Subd.1217. [SURVIVING SPOUSE MEMBER.] "Surviving spouse 129.34 member" means the person who was the legally married spouse of 129.35 the member, who was residing with the decedent, and who was 129.36 married while or before the time the decedent was an active 130.1 member and was on the payroll of the police department, and who, 130.2 in case the deceased member was a pensioner or deferred 130.3 pensioner, was legally married to the member at least one year 130.4 before the decedent's termination of active service with the 130.5 police department. The term does not include the surviving 130.6 spouse who has deserted a member or who has not been dependent 130.7 upon the member for support, nor does it include the surviving 130.8 common law spouse of a member. 130.9 Subd.1318. [TIME WEIGHTED TOTAL RATE OF RETURN.] "Time 130.10 weighted total rate of return" means the percentage amount 130.11 determined by using the formula or formulas established by the 130.12 state board of investment under section 11A.04, clause (11), and 130.13 in effect on January 1, 1987. 130.14 Subd. 19. [TOTAL EXCESS ASSET AMOUNT.] (a) "Total excess 130.15 asset amount" means the difference, if positive, expressed in 130.16 dollars, between the fund's market value of assets after any 130.17 deductions required by section 423B.15, subdivision 2, and 110 130.18 percent of the actuarial accrued liabilities based on the 130.19 actuarial valuation indicated in paragraph (b). 130.20 (b) The total excess asset amount in paragraph (a) exists 130.21 if the actuarial liability funding ratio, according to the most 130.22 recent annual actuarial valuation for the fund prepared in 130.23 accordance with sections 69.77, 356.215, and 356.216, with 130.24 adjustments required by section 423B.15, subdivision 2, equals 130.25 or exceeds 110 percent. 130.26 Subd.1420. [UNIT.] "Unit" means one-eightieth of the 130.27 current monthly salary of a first grade patrol officer. 130.28 Subd.1521. [ACTUARIAL EQUIVALENT.] "Actuarial 130.29 equivalent" or "actuarially equivalent" means the condition of 130.30 one annuity or benefit having an equal actuarial present value 130.31 as another annuity or benefit, determined as of a given date at 130.32 a specified age with each actuarial present value based on the 130.33 appropriate mortality table adopted by the board of directors 130.34 based on the experience of the fund and approved by the actuary 130.35 retained by the legislative commission on pensions and 130.36 retirement and using the applicable preretirement or 131.1 postretirement interest rate assumptions specified in section 131.2 356.216. 131.3 Sec. 2. [423B.151] [EXCESS ASSET AMOUNT PAYMENT.] 131.4 Subdivision 1. [DETERMINATION OF NET TOTAL EXCESS AMOUNT.] 131.5 The board of the association shall determine by May 1 of each 131.6 year whether the fund has a total excess asset amount for that 131.7 year. If a total excess asset amount exists for the given year, 131.8 the net total excess asset amount shall be determined. The 131.9 total excess asset amount and net total excess asset amount 131.10 shall be reported to the chief administrative officer of the 131.11 association, the mayor and governing body of the city, the state 131.12 auditor, the commissioner of finance, and the executive director 131.13 of the legislative commission on pensions and retirement. The 131.14 portion of the net excess asset amount which is distributed 131.15 under this section must not be considered as income to or assets 131.16 of the fund for actuarial valuations of the fund for that year 131.17 under sections 69.77, 356.215, 356.216, and this act, except to 131.18 offset the amount distributed. 131.19 Subd. 2. [TOTAL AVAILABLE FOR PAYMENT.] Twenty percent of 131.20 the net total excess asset amount determined under subdivision 1 131.21 is available for excess asset amount payments under subdivision 131.22 3. 131.23 Subd. 3. [NET EXCESS ASSET AMOUNT PAYMENTS.] Except as 131.24 limited under subdivision 4, the net excess asset amount payment 131.25 to an eligible member is equal to the amount determined under 131.26 subdivision 2 multiplied by the units applicable to the eligible 131.27 member and divided by the total units of all eligible members. 131.28 Subd. 4. [ENTITLEMENT; PRIORITY.] A person who is an 131.29 eligible member for the entire 12 months before the 131.30 determination date is eligible for a full excess asset amount 131.31 payment under subdivision 2. A person who is an eligible member 131.32 for less than 12 months before the determination date is 131.33 eligible for a prorated excess asset amount payment. If an 131.34 eligible member dies after the determination date and before the 131.35 excess asset amount payment commences, the association must pay 131.36 the eligible member's excess asset amount payment to the 132.1 eligible member's surviving spouse or, if no surviving spouse, 132.2 to the member's estate. 132.3 Subd. 5. [PAYMENT METHOD.] The excess asset amount 132.4 payments determined under this section commence on June 1 132.5 following the determination date. These amounts may be paid as 132.6 a lump sum, disbursed to the eligible members in 12 equal 132.7 monthly installments, or any other manner which the board shall 132.8 determine. 132.9 Subd. 6. [NO GUARANTEE OF ANNUAL RESIDUAL INVESTMENT 132.10 PAYMENT.] No provision of this act may be interpreted or relied 132.11 upon by any member of the association to guarantee or entitle a 132.12 member to a net excess asset amount payment relating to any year 132.13 in which there is no net total excess asset amount. 132.14 Sec. 3. [423B.19] [CITY OF MINNEAPOLIS; NORMAL COST 132.15 CONTRIBUTION ADJUSTMENT.] 132.16 Notwithstanding section 69.77, 356.215, 356.216, or any 132.17 other law to the contrary, the required city contributions 132.18 toward the association's normal cost, as determined by the 132.19 actuary, are reduced below that otherwise payable by the full 132.20 amount of active member contributions required by law to be 132.21 directed to the association's health insurance escrow account 132.22 rather than to the special fund. 132.23 Sec. 4. [423B.20] [SUSPENSION OF NORMAL COST 132.24 CONTRIBUTIONS.] 132.25 Notwithstanding the provisions of section 69.77 or any 132.26 other law to the contrary, if a total excess asset amount 132.27 exists, as defined in section 423B.01, subdivision 19, the city 132.28 is not required to make a contribution to the fund for the 132.29 normal cost of active members. 132.30 Sec. 5. [423B.21] [CHANGE IN AMORTIZATION PERIOD.] 132.31 Subdivision 1. [AMORTIZATION TREATMENT.] Notwithstanding 132.32 section 69.77, subdivision 2b; 356.215; 356.216; or any other 132.33 law to the contrary, if the actuarial report for the association 132.34 indicates an unfunded actuarial accrued liability after the fund 132.35 has first achieved 100 percent funding, the unfunded obligation 132.36 is to be amortized on a level dollar basis by December 31 of the 133.1 year occurring 15 years later. If subsequent actuarial 133.2 valuations determine a net actuarial experience loss incurred 133.3 during the year which ended as of the day before the most recent 133.4 actuarial valuation date, any unfunded liability due to that 133.5 loss is to be amortized on a level dollar basis by December 31 133.6 of the year occurring 15 years later. 133.7 Subd. 2. [LIMITATION.] Notwithstanding subdivision 1, the 133.8 amortization period may not exceed the average life expectancy 133.9 of the remaining members. 133.10 Sec. 6. [MINNEAPOLIS FIRE RELIEF ASSOCIATION; SURVIVOR 133.11 BENEFIT PAYMENT.] 133.12 Subdivision 1. [SURVIVING SPOUSE BENEFIT ELIGIBILITY.] (a) 133.13 Notwithstanding Laws 1997, chapter 233, article 4, section 12, 133.14 or other law to the contrary, an eligible individual specified 133.15 in paragraph (b) is authorized to receive the benefit specified 133.16 in subdivision 2. 133.17 (b) An eligible individual is an individual born on May 27, 133.18 1927, who married a Minneapolis fire relief association retiree 133.19 on January 16, 1993, and who is a surviving spouse due to the 133.20 death of that retired firefighter on October 2, 1997. 133.21 Subd. 2. [BENEFIT.] (a) An eligible individual under 133.22 subdivision 1, paragraph (b), is entitled to a surviving spouse 133.23 benefit computed under Laws 1997, chapter 233, article 4, 133.24 section 12, clause (f). 133.25 (b) Benefits payable as a result of the benefit authorized 133.26 in paragraph (a) commence on the first of the month following 133.27 the effective date of this section. 133.28 Sec. 7. [DEFINITIONS.] 133.29 Subdivision 1. [DEFINITIONS.] Unless the context clearly 133.30 indicates otherwise, the following terms have the meaning given 133.31 in this section. 133.32 Subd. 2. [ACTIVE MEMBER PERCENTAGE.] The "active member 133.33 percentage" is the total number of units accrued by active 133.34 members of the association divided by the sum of the total 133.35 number of units to which eligible members are entitled and 133.36 active members of the association have accrued. 134.1 Subd. 3. [ASSOCIATION.] "Association" means the 134.2 Minneapolis firefighter's relief association. 134.3 Subd. 4. [CITY.] "City" means the city of Minneapolis. 134.4 Subd. 5. [ELIGIBLE MEMBER.] "Eligible member" is a person 134.5 who receives a service, survivor, or disability pension payable 134.6 from the special fund of the association. 134.7 Subd. 6. [FUND.] "Fund" means the association's special 134.8 fund. 134.9 Subd. 7. [NET EXCESS ASSET AMOUNT PAYMENT.] "Net excess 134.10 asset amount payment" means the payment of an additional 134.11 postretirement payment under section 3 to an eligible member on 134.12 June 1 following the determination date in the given year. 134.13 Subd. 8. [NET TOTAL EXCESS ASSET AMOUNT.] "Net total 134.14 excess asset amount" is the total excess asset amount stated in 134.15 dollars and multiplied by the quantity one minus the active 134.16 member percentage. 134.17 Subd. 9. [TOTAL EXCESS ASSET AMOUNT.] (a) "Total excess 134.18 asset amount" means the difference, if positive, expressed in 134.19 dollars, between the fund's market value of assets after any 134.20 deductions required by Laws 1989, chapter 319, article 19, 134.21 section 7, subdivision 3, as amended, and 110 percent of the 134.22 actuarial accrued liabilities based on the actuarial valuation 134.23 indicated in paragraph (b). 134.24 (b) The total excess asset amount in paragraph (a) exists 134.25 if the actuarial liability funding ratio, according to the most 134.26 recent annual actuarial valuation for the fund prepared in 134.27 accordance with Minnesota Statutes, sections 69.77, 356.215, and 134.28 356.216, with adjustments required by Laws 1989, chapter 319, 134.29 article 19, section 7, subdivision 3, as amended, equals or 134.30 exceeds 110 percent. 134.31 Sec. 8. [DETERMINATION OF NET TOTAL EXCESS ASSET AMOUNT.] 134.32 The board of the association shall determine by May 1 of 134.33 each year whether the fund has a total excess asset amount for 134.34 that year. If a total excess asset amount exists for the given 134.35 year, the net total excess asset amount shall be determined. 134.36 The total excess asset amount and net total excess asset amount 135.1 shall be reported to the chief administrative officer of the 135.2 association, the mayor and governing body of the city, the state 135.3 auditor, the commissioner of finance, and the executive director 135.4 of the legislative commission on pensions and retirement. The 135.5 portion of the net excess asset amount which is distributed 135.6 under section 9 must not be considered as income to or assets of 135.7 the fund for actuarial valuations of the fund for that year 135.8 under Minnesota Statutes, sections 69.77, 356.215, and 356.216, 135.9 and this act, except to offset the amount distributed. 135.10 Sec. 9. [AMOUNT OF NET EXCESS ASSET AMOUNT PAYMENT.] 135.11 Subdivision 1. [TOTAL AVAILABLE FOR PAYMENT.] Twenty 135.12 percent of the net total excess asset amount determined under 135.13 section 8 is available for net excess asset amount payments 135.14 under subdivision 2. 135.15 Subd. 2. [NET EXCESS ASSET AMOUNT PAYMENTS.] Except as 135.16 limited under subdivision 3, the net excess asset amount payment 135.17 to an eligible member is equal to the amount determined under 135.18 subdivision 1 multiplied by the units applicable to the eligible 135.19 member and divided by the total units of all eligible members. 135.20 Subd. 3. [ENTITLEMENT; PRIORITY.] A person who is an 135.21 eligible member for the entire 12 months before the 135.22 determination date is eligible for a full net excess asset 135.23 amount payment under subdivision 2. A person who is an eligible 135.24 member for less than 12 months before the determination date is 135.25 eligible for a prorated net excess asset amount payment. If an 135.26 eligible member dies after the determination date and before the 135.27 excess asset amount payment commences, the association must pay 135.28 that eligible member's net excess asset amount payment to the 135.29 eligible member's estate. 135.30 Subd. 4. [PAYMENT METHOD.] The net excess asset amount 135.31 payments determined under subdivisions 2 and 3 commence on June 135.32 1 following the determination date. These amounts may be paid 135.33 as a lump sum, disbursed to the eligible members in 12 equal 135.34 monthly installments, or any other manner which the board shall 135.35 determine. 135.36 Sec. 10. [CITY NORMAL COST CONTRIBUTION ADJUSTMENT.] 136.1 Notwithstanding Minnesota Statutes, sections 69.77, 136.2 356.215, and 356.216, or other law to the contrary, the required 136.3 city contributions toward the association's normal cost, as 136.4 determined by the actuary, are reduced below that otherwise 136.5 payable by the full amount of active member contributions 136.6 required by law to be directed to the association's health 136.7 insurance escrow account rather than to the special fund. 136.8 Sec. 11. [SUSPENSION OF NORMAL COST CONTRIBUTIONS.] 136.9 Notwithstanding the provisions of Minnesota Statutes, 136.10 section 69.77, or any other law to the contrary, if a total 136.11 excess asset amount exists, as defined in section 7, subdivision 136.12 9, the city is not required to make a contribution to the fund 136.13 for the normal cost of active members. 136.14 Sec. 12. [NO GUARANTEE OF ANNUAL RESIDUAL INVESTMENT 136.15 PAYMENT.] 136.16 No provision of this act may be interpreted or relied upon 136.17 by any member of the association to guarantee or entitle a 136.18 member to a net excess asset amount payment relating to any year 136.19 in which there is no net total excess asset amount. 136.20 Sec. 13. [CHANGE IN AMORTIZATION PERIOD.] 136.21 Subdivision 1. [AMORTIZATION TREATMENT.] Notwithstanding 136.22 Minnesota Statutes, section 69.77, subdivision 2b; 356.215; 136.23 356.216; or any other law to the contrary, if the actuarial 136.24 report for the Minneapolis firefighters relief association 136.25 indicates an unfunded actuarial accrued liability, the unfunded 136.26 obligation is to be amortized on a level dollar basis by 136.27 December 31 of the year occurring 15 years later. If subsequent 136.28 actuarial valuations determine a net actuarial experience loss 136.29 incurred during the year which ended as of the day before the 136.30 most recent actuarial valuation date, any unfunded liability due 136.31 to that loss is to be amortized on a level dollar basis by 136.32 December 31 of the year occurring 15 years later. 136.33 Subd. 2. [LIMITATION.] Notwithstanding subdivision 1, the 136.34 amortization period may not exceed the average life expectancy 136.35 of the remaining members. 136.36 Sec. 14. [EFFECTIVE DATE.] 137.1 (a) Sections 1 to 5 are effective on the day after the date 137.2 on which the Minneapolis city council and the chief clerical 137.3 officer of the city of Minneapolis complete, in a timely manner, 137.4 their compliance with Minnesota Statutes, section 645.021, 137.5 subdivisions 2 and 3. 137.6 (b) Section 6 is effective on the day after the date on 137.7 which the Minneapolis city council and the chief clerical 137.8 officer of the city of Minneapolis complete, in a timely manner, 137.9 their compliance with Minnesota Statutes, section 645.021, 137.10 subdivisions 2 and 3. Section 5, if approved, applies 137.11 retroactively to contributions beginning after July 1, 1990. 137.12 (c) Sections 7 to 13 are effective on the day after the 137.13 date on which the Minneapolis city council and the chief 137.14 clerical officer of the city of Minneapolis complete, in a 137.15 timely manner, their compliance with Minnesota Statutes, section 137.16 645.021, subdivisions 2 and 3. Section 5, if approved, applies 137.17 retroactively to contributions beginning after July 1, 1990. 137.18 ARTICLE 17 137.19 VARIOUS INDIVIDUAL AND SMALL GROUP 137.20 PENSION PROVISIONS 137.21 Section 1. [MSRS-GENERAL; LATE DISABILITY BENEFIT 137.22 APPLICATION AUTHORIZED.] 137.23 (a) Notwithstanding any provision of Minnesota Statutes, 137.24 section 352.113, subdivision 4, to the contrary, a person 137.25 described in paragraph (b) is authorized to apply for a 137.26 disability benefit from the general state employees retirement 137.27 plan of the Minnesota state retirement system under Minnesota 137.28 Statutes, section 352.113. 137.29 (b) An eligible person is a person who: 137.30 (1) was born on October 3, 1952; 137.31 (2) was employed by the department of economic security 137.32 from August 1978 to December 1994; 137.33 (3) is disabled within the meaning of Minnesota Statutes, 137.34 section 352.01, subdivision 17; 137.35 (4) began receiving social security disability insurance 137.36 benefits in January 1995; and 138.1 (5) began part-time employment in January 1998 and 138.2 continues in that employment with the Minnesota state council on 138.3 disability. 138.4 (c) The eligible person under paragraph (b) must provide, 138.5 in conjunction with the disability application, any relevant 138.6 evidence that the executive director of the Minnesota state 138.7 retirement system requires about the existence of a total and 138.8 permanent disability as defined in Minnesota Statutes, section 138.9 352.01, subdivision 17, and about the date on which the 138.10 disability occurred and its relationship to the termination of 138.11 active service in December 1994. 138.12 (d) If the eligible person files a disability benefit 138.13 application and if the eligible person provides sufficient 138.14 evidence of disability and the occurrence of the disability 138.15 under paragraph (c), the disability benefit becomes payable for 138.16 the first month next following the application and applicable 138.17 evidence. The disability benefit must be calculated under the 138.18 laws in effect at the time that the eligible person terminated 138.19 active service in December 1994. The disability benefit must 138.20 include any applicable deferred annuities augmentation under 138.21 Minnesota Statutes, section 352.72, subdivision 2. 138.22 (e) Nothing in this section may be deemed to exempt the 138.23 eligible person from the partial reemployment of a disabilitant 138.24 provision described in Minnesota Statutes, section 352.113, 138.25 subdivision 7. 138.26 Sec. 2. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; SERVICE 138.27 CREDIT PURCHASE FOR UNCREDITED HENNEPIN COUNTY EMPLOYMENT.] 138.28 (a) An eligible person described in paragraph (b) is 138.29 entitled to obtain one year of allowable service credit from the 138.30 general employees retirement plan of the public employees 138.31 retirement association. 138.32 (b) An eligible person is a person who: 138.33 (1) was born April 12, 1936; 138.34 (2) retired from the teachers retirement association on 138.35 July 1, 1997; 138.36 (3) is currently a recipient of a retirement annuity from 139.1 the teachers retirement association and a retirement annuity 139.2 from the general state employees retirement plan of the 139.3 Minnesota state retirement system; and 139.4 (4) was employed during the period September 1966 through 139.5 September 1967 by Hennepin county as a parole officer, when 139.6 member contributions for retirement coverage were deducted, but 139.7 for which no allowable service credit in the general employees 139.8 retirement plan of the public employees retirement association 139.9 was recorded. 139.10 (c) Notwithstanding any provision of Minnesota Statutes, 139.11 sections 353.29, subdivision 7, and 356.30, to the contrary, an 139.12 eligible person may file an application for a retirement annuity 139.13 from the general employees retirement plan of the public 139.14 employees retirement association retroactive to July 1, 1997, 139.15 with benefits paid retroactive to that date, and may have the 139.16 annuity calculated as a combined service annuity. 139.17 (d) The allowable service credit must be granted by the 139.18 public employees retirement association upon the filing of a 139.19 valid retirement application by the eligible person. 139.20 (e) Within 30 days of the receipt of that application by 139.21 the public employees retirement association and notification by 139.22 the public employees retirement association to the county 139.23 administrator, Hennepin county may pay one-half of the prior 139.24 service credit purchase payment amount calculated under 139.25 Minnesota Statutes, section 356.55. If Hennepin county does not 139.26 pay the required amount in a timely fashion, the executive 139.27 director of the public employees retirement association shall 139.28 notify the commissioner of finance of that fact and the 139.29 commissioner shall deduct from any state aid or state 139.30 appropriation payable to Hennepin county that amount, plus 139.31 interest on that amount of 1.5 percent per month for each month 139.32 or portion of a month from the filing of the retirement 139.33 application under paragraph (d) to the date of deduction. 139.34 (f) An amount equal to one-half of the prior service credit 139.35 purchase payment amount calculated under Minnesota Statutes, 139.36 section 356.55, must be charged against the public employees 140.1 retirement association as an administrative expense. 140.2 (g) This allowable service credit provision expires on 140.3 January 1, 2001. 140.4 Sec. 3. [PAYMENT OF OMITTED SALARY DEDUCTIONS.] 140.5 Subdivision 1. [APPLICATION.] A person who was born on 140.6 October 23, 1943, was employed by Dakota county as a part-time 140.7 maintenance employee on October 16, 1985, and first had public 140.8 employees retirement association member contributions deducted 140.9 as of September 15, 1986, is entitled to purchase eight months 140.10 of service credit from the public employees retirement 140.11 association. 140.12 Subd. 2. [PAYMENT.] The purchase payment amount for the 140.13 service credit purchase authorized in subdivision 1 is governed 140.14 by Minnesota Statutes, section 356.55. Notwithstanding any 140.15 provision of Minnesota Statutes, section 356.55, subdivision 5, 140.16 to the contrary, the eligible person must pay, on or before June 140.17 1, 2001, an amount equal to the employee contribution rate 140.18 applied to the person's actual salary rate in effect between 140.19 January 17, 1986, and September 15, 1986, plus annual compound 140.20 interest at the rate of 8.5 percent from the date that the 140.21 employer contributions should have been paid and the date of 140.22 actual payment. Dakota county shall pay the balance of the 140.23 required purchase payment amount within 30 days of the payment 140.24 by the eligible person. If Dakota county fails to pay its 140.25 required amount, the executive director of the public employees 140.26 retirement association may notify the commissioner of finance of 140.27 that fact and the commissioner of finance may order that the 140.28 required amount be deducted from any subsequent state payment to 140.29 Dakota county and transmitted to the public employees retirement 140.30 association. 140.31 Subd. 3. [APPLICATION; DOCUMENTATION.] A person described 140.32 in subdivision 1 must apply with the executive director of the 140.33 public employees retirement association to make the purchase. 140.34 The application must be in writing and must include all 140.35 necessary documentation of the applicability of this section and 140.36 any other relevant information that the executive director may 141.1 require. 141.2 Subd. 4. [LIMITATION.] Authority under this section 141.3 expires on July 1, 2001. 141.4 Sec. 4. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; REDUCED 141.5 SERVICE CREDIT REQUIREMENT FOR DISABILITY BENEFIT APPLICATION.] 141.6 (a) An eligible person described in paragraph (b) is 141.7 entitled to apply for a disability benefit from the general 141.8 employees retirement plan of the public employees retirement 141.9 association with 14 months of service credit subsequent to the 141.10 person's last termination of membership, notwithstanding any 141.11 provision to the contrary of Minnesota Statutes, section 353.33, 141.12 subdivision 1. 141.13 (b) An eligible person is a person who: 141.14 (1) was born on May 30, 1945; 141.15 (2) began public employment with Todd county in November 141.16 1978; 141.17 (3) first terminated public employment in August 1982; 141.18 (4) resumed public employment with Morrison county in 141.19 October 1987; 141.20 (5) subsequently terminated public employment with Meeker 141.21 county in November 1997; 141.22 (6) resumed public employment with Todd county in August 141.23 1998; and 141.24 (7) subsequently terminated public employment October 8, 141.25 1999. 141.26 Sec. 5. [TEACHERS RETIREMENT ASSOCIATION; REFUND OF 141.27 CERTAIN INTEREST CHARGES.] 141.28 (a) Upon filing a written demand for the interest refund, a 141.29 person described in paragraph (b) is entitled to receive a 141.30 refund of interest specified in paragraph (c) for the period 141.31 during which the teachers retirement association was negligent 141.32 in providing accurate information to the eligible person or was 141.33 negligent in making timely reports to other Minnesota public 141.34 pension plans in which the eligible person has service credit. 141.35 (b) An eligible person is a person who: 141.36 (1) retired from the teachers retirement association 142.1 effective September 1, 1999; 142.2 (2) repaid a previously taken refund to the teachers 142.3 retirement association on August 23, 1999, restoring 10.979 142.4 years of allowable service credit; 142.5 (3) began the retirement application and refund repayment 142.6 process in February 1999 and was first able to file retirement 142.7 forms with the teachers retirement association office on August 142.8 27, 1999; and 142.9 (4) was charged interest on the repayment of refund for the 142.10 period during which the teachers retirement association failed 142.11 to provide requested information and failed to contact the 142.12 public employees retirement association and the St. Paul 142.13 teachers retirement fund association. 142.14 (c) The refund interest rate is 0.708 percent per month, 142.15 compounded monthly, on the refund repayment amount that would 142.16 have been payable on April 15, 1999, applied to the period April 142.17 15, 1999, to August 23, 1999, and 8.5 percent per year, 142.18 compounded annually, on that initially determined amount from 142.19 August 23, 1999, until the interest repayment is made. 142.20 (d) The interest refund is payable on the first day of the 142.21 month next following the date on which the eligible person files 142.22 the written demand under paragraph (a). 142.23 Sec. 6. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 142.24 UNCREDITED TEACHING SERVICE PERIODS.] 142.25 (a) An eligible person described in paragraph (b) is 142.26 entitled to purchase allowable service credit from the 142.27 Minneapolis teachers retirement fund association basic program 142.28 for the periods of teaching employment specified in paragraph 142.29 (c) by making the payment required under Minnesota Statutes, 142.30 section 356.55. 142.31 (b) An eligible person is a person who: 142.32 (1) was employed by special school district No. 1 142.33 (Minneapolis) as a long call reserve teacher from October 1972 142.34 to June 1973 and was covered by the Minneapolis employees 142.35 retirement fund; 142.36 (2) was employed by special school district No. 1 143.1 (Minneapolis) as a school social worker at Franklin junior high 143.2 school from August 28, 1973, through June 12, 1974, and from 143.3 August 29, 1974, through June 11, 1975, without retirement 143.4 coverage; 143.5 (3) was employed by special school district No. 1 143.6 (Minneapolis) as a school social worker at North high school 143.7 from August 29, 1975, through December 19, 1975, covered by the 143.8 Minneapolis teachers retirement fund association; 143.9 (4) was retained by special school district No. 1 143.10 (Minneapolis) in the capacity of a school social worker at North 143.11 high school as an hourly wage independent contract social worker 143.12 from August 1976 through June 1983 without retirement coverage; 143.13 and 143.14 (5) is currently employed by Hennepin county covered by the 143.15 public employees retirement association. 143.16 (c) The periods for allowable service credit purchase are 143.17 August 28, 1973, through June 12, 1974; and August 29, 1974, 143.18 through June 11, 1975. 143.19 (d) An eligible person must provide any relevant 143.20 documentation related to eligibility to make this service credit 143.21 purchase required by the executive director of the Minneapolis 143.22 teachers retirement fund association. 143.23 (e) Allowable service credit for the purchase periods must 143.24 be granted by the Minneapolis teachers retirement fund 143.25 association to the account of the eligible person upon receipt 143.26 of the prior service credit purchase payment amount. 143.27 (f) The prior service credit purchase payment amount shall 143.28 be computed by the actuary retained by the legislative 143.29 commission on pensions and retirement. That computation must, 143.30 in applying the process stated in Minnesota Statutes, section 143.31 356.55, give recognition to the liabilities that would be 143.32 created in the Minneapolis teachers retirement fund association 143.33 and other Minnesota public pension funds due to the service 143.34 credit purchase. 143.35 (g) Following receipt of that purchase payment amount, the 143.36 executive director of the Minneapolis teachers retirement fund 144.1 association shall allocate and transmit that amount to the 144.2 applicable pension administrations, as determined under 144.3 paragraph (f). 144.4 Sec. 7. [MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION; 144.5 PRIOR SERVICE CREDIT PURCHASE AUTHORIZATION.] 144.6 (a) Notwithstanding any provision of law to the contrary, a 144.7 person described in paragraph (b) is authorized to purchase 144.8 allowable service credit from the basic program of the 144.9 Minneapolis teachers retirement fund association for the period 144.10 described in paragraph (c) by making the payment specified in 144.11 paragraph (d). 144.12 (b) An eligible person for purposes of paragraph (a) is a 144.13 person who: 144.14 (1) was born on October 1, 1942; 144.15 (2) is currently employed by special school district No. 1 144.16 (Minneapolis) and is currently a member of the Minneapolis 144.17 teachers retirement fund association; 144.18 (3) was initially hired by special school district No. 1 144.19 (Minneapolis) on November 13, 1967, and taught at Sanford junior 144.20 high school until June 1968; 144.21 (4) was reemployed by special school district No. 1 144.22 (Minneapolis) as an adult basic education English and social 144.23 studies teacher on May 25, 1970, and continued to teach in that 144.24 program until December 17, 1984; and 144.25 (5) as a result of binding arbitration of an employment 144.26 dispute, was employed by special school district No. 1 144.27 (Minneapolis) as an English teacher at Franklin junior high 144.28 school on December 17, 1984. 144.29 (c) The service credit purchase period is any period 144.30 between May 25, 1970, to December 17, 1984, that has not 144.31 previously been credited by the Minneapolis teachers retirement 144.32 fund association. 144.33 (d) To purchase the allowable service credit, the eligible 144.34 person must pay to the Minneapolis teachers retirement fund 144.35 association the prior service credit purchase payment calculated 144.36 under Minnesota Statutes, section 356.55. 145.1 (e) The eligible person must provide all relevant 145.2 documentation of the applicability of the requirements set forth 145.3 in paragraph (b) and any other applicable information that the 145.4 executive director of the Minneapolis teachers retirement fund 145.5 association may request. 145.6 (f) This prior service credit purchase authority expires on 145.7 July 1, 2001, or on the date of the eligible person's 145.8 termination of active service with special school district No. 1 145.9 (Minneapolis), whichever is earlier. 145.10 Sec. 8. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 145.11 INDEPENDENT CONTRACT UNCREDITED TEACHING SERVICE PERIOD.] 145.12 (a) An eligible person described in paragraph (b) is 145.13 authorized to purchase allowable service credit from the 145.14 Minneapolis teachers retirement fund association for the period 145.15 of teaching employment specified in paragraph (c) by making the 145.16 payment required under Minnesota Statutes, section 356.55, by 145.17 the last date authorized for receiving payment under that 145.18 section, or the eligible person's effective date of retirement, 145.19 whichever is earlier. 145.20 (b) An eligible person is a person who: 145.21 (1) was born on May 22, 1939; 145.22 (2) was employed by special school district No. 1 145.23 (Minneapolis) and covered as an active member by the Minneapolis 145.24 teachers retirement fund association from July 27, 1962, to June 145.25 11, 1967; and 145.26 (3) was retained by special school district No. 1 145.27 (Minneapolis) at an hourly wage rate as a teacher in the adult 145.28 basic education program from April 23, 1980, to September 28, 145.29 1992. 145.30 (c) The period for allowable service credit purchase is 145.31 from April 23, 1980, to September 28, 1992. 145.32 (d) An eligible person under paragraph (b) must provide any 145.33 relevant documentation related to eligibility to make this 145.34 service credit purchase which is required by the executive 145.35 director of the Minneapolis teachers retirement fund association. 145.36 (e) Allowable service credit for the purchase periods must 146.1 be granted by the Minneapolis teachers retirement fund 146.2 association to the account of the eligible person upon receipt 146.3 of the prior service credit purchase payment amount. 146.4 (f) A service credit purchase is not authorized for any 146.5 portion of the April 23, 1980, to September 28, 1992, period for 146.6 which the eligible individual signed an independent contract 146.7 which waives pension coverage by the Minneapolis teachers 146.8 retirement fund association for the period covered by the 146.9 contract, or for any period for which administrators for special 146.10 school district No. 1 (Minneapolis) or the Minneapolis teachers 146.11 retirement fund association determine that the individual was 146.12 serving as an independent contractor. 146.13 Sec. 9. [MERF; PRIOR SERVICE CREDIT PURCHASE FOR TEMPORARY 146.14 EMPLOYMENT PERIOD.] 146.15 (a) An eligible person described in paragraph (b) is 146.16 entitled to purchase allowable service credit from the 146.17 Minneapolis employees retirement fund for the period of 146.18 temporary employment specified in paragraph (c) by making the 146.19 payment required under Minnesota Statutes, section 356.55. 146.20 (b) An eligible person is a person who: 146.21 (1) was born on August 15, 1951; 146.22 (2) was hired by the city of Minneapolis as a maintenance 146.23 worker/truck driver on June 1, 1976, and was covered by the 146.24 Minneapolis employees retirement fund for that employment; and 146.25 (3) is currently employed by the city of Minneapolis and 146.26 covered by the Minneapolis employees retirement association. 146.27 (c) The period for allowable service credit purchase is a 146.28 period during 1975 during which the eligible person was employed 146.29 by the city of Minneapolis as a temporary employee. 146.30 (d) An eligible person must provide any relevant 146.31 documentation related to eligibility to make this service credit 146.32 purchase required by the executive director of the Minneapolis 146.33 employees retirement fund. 146.34 (e) Allowable service credit for the purchase periods must 146.35 be granted by the Minneapolis employees retirement fund to the 146.36 account of the eligible person upon receipt of the prior service 147.1 credit purchase payment amount. To receive the service credit, 147.2 the service credit purchase must be received by the Minneapolis 147.3 employees retirement fund by October 1, 2001, or prior to 147.4 retirement, whichever is earlier. 147.5 Sec. 10. [MERF; PRIOR SERVICE CREDIT PURCHASE FOR 147.6 TEMPORARY EMPLOYMENT PERIOD.] 147.7 (a) An eligible person described in paragraph (b) is 147.8 entitled to purchase allowable service credit from the 147.9 Minneapolis employees retirement fund for the period or periods 147.10 of temporary employment specified in paragraph (c) by making the 147.11 payment required under Minnesota Statutes, section 356.55. 147.12 (b) An eligible person is a person who: 147.13 (1) was born on December 17, 1953; 147.14 (2) was hired by the city of Minneapolis as a full-time 147.15 maintenance worker on February 2, 1974, and was covered by the 147.16 Minneapolis employees retirement fund for that employment; and 147.17 (3) is currently employed by the city of Minneapolis, 147.18 covered by the Minneapolis employees retirement association. 147.19 (c) The periods for allowable service credit purchase are 147.20 periods during 1974 and 1975 during which the eligible person 147.21 was employed by the city of Minneapolis as a temporary employee. 147.22 (d) An eligible person must provide any relevant 147.23 documentation related to eligibility to make this service credit 147.24 purchase required by the executive director of the Minneapolis 147.25 employees retirement fund. 147.26 (e) Allowable service credit for the purchase periods must 147.27 be granted by the Minneapolis employees retirement fund to the 147.28 account of the eligible person upon receipt of the prior service 147.29 credit purchase payment amount. To receive the service credit, 147.30 the service credit purchase must be received by the Minneapolis 147.31 employees retirement fund by October 1, 2001, or prior to 147.32 retirement, whichever is earlier. 147.33 Sec. 11. [EFFECTIVE DATE.] 147.34 (a) Sections 1, 2, and 4 to 10 are effective on the day 147.35 following final enactment. 147.36 (b) Section 3 is effective on the day after the date on 148.1 which the Dakota county board of commissioners and the chief 148.2 clerical officer of Dakota county complete, in a timely manner, 148.3 their compliance with Minnesota Statutes, section 645.021, 148.4 subdivisions 2 and 3. 148.5 (c) Section 1 expires, if not utilized, on December 31, 148.6 2000.