Minnesota Legislature
HF 3127
2nd Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to retirement; various retirement plans; 1.3 clarifying the laws applicable to the remaining local 1.4 police and paid firefighter pension plans; repealing 1.5 obsolete local police and paid firefighter pension 1.6 plan laws; providing public employee pension coverage 1.7 for certain foreign citizens; clarifying membership 1.8 eligibility and allowable service credit for the 1.9 public employees retirement association; requiring 1.10 membership for charter school teachers in the teachers 1.11 retirement association; providing for the payment of 1.12 unpaid closed charter school retirement contributions 1.13 from charter school lease aid; eliminating 1.14 contribution rate increases in the local government 1.15 correctional service retirement plan; establishing 1.16 provisions relating to employees of the Kanabec 1.17 hospital if the hospital is privatized; extending the 1.18 expiration date for certain prior service credit 1.19 purchase authorizations; recodifying social security 1.20 coverage provisions; implementing recommended changes 1.21 in salary actuarial assumptions; clarifying the 1.22 restrictions on supplemental and local pension plans 1.23 for plans funded from accumulated sick and vacation 1.24 leave; reorganizing the revising various general 1.25 retirement provisions; instructing the revisor of 1.26 statutes; authorizing the commissioner of 1.27 administration to lease pension fund facilities to 1.28 deferred compensation service providers; authorizing 1.29 certain volunteer firefighters to receive service 1.30 pensions or disability benefits without terminating 1.31 active service; creating the coordinated program of 1.32 the legislators retirement plan; providing a second 1.33 social security referendum for legislators; modifying 1.34 Minneapolis police optional annuity provision; 1.35 amending Minnesota Statutes 2000, sections 69.77; 1.36 69.80; 353.01, by adding a subdivision; 353.64, 1.37 subdivision 7a; 353A.08, subdivision 6a; 353E.02, 1.38 subdivision 1, by adding a subdivision; 353E.03; 1.39 353F.02, subdivision 4; 354A.011, subdivision 27; 1.40 355.01, subdivisions 1, 3, 6, 8, by adding 1.41 subdivisions; 355.02; 355.03; 355.05; 355.07; 355.08; 1.42 356.001; 356.20, subdivisions 1, 2, 3, 4, 4a; 356.215, 1.43 as amended; 356.216; 356.217; 356.219; 356.22; 356.23; 1.44 356.24, subdivisions 1b, 1c, 2; 356.245; 356.25; 1.45 356.30; 356.302; 356.303; 356.32; 356.40; 356.41; 1.46 356.50; 356.55, as amended; 356.551; 356.611; 356.65, 2.1 subdivision 2; 356.87; 356.89, subdivision 3; 423A.17; 2.2 423A.171; 423B.09, subdivision 6; 424A.02, subdivision 2.3 1; 424A.09; Minnesota Statutes 2001 Supplement, 2.4 sections 353.01, subdivisions 2a, 2b, 11b, 16; 353.27, 2.5 subdivisions 4, 11; 354.05, subdivision 2; 356.24, 2.6 subdivision 1; 356.555; 356.62; 356.65, subdivision 1; 2.7 356.866; Laws 1999, chapter 222, article 16, section 2.8 16; Laws 2000, chapter 461, article 10, section 3, as 2.9 amended; Laws 2000, chapter 461, article 12, section 2.10 20; Laws 2001, First Special Session chapter 10, 2.11 article 6, section 21; proposing coding for new law in 2.12 Minnesota Statutes, chapters 3A; 355; 356; proposing 2.13 coding for new law as Minnesota Statutes, chapter 2.14 356B; repealing Minnesota Statutes 2000, sections 2.15 69.25; 69.26; 69.27; 69.28; 69.29; 69.30; 69.32; 2.16 69.361; 69.37; 69.38; 69.39; 69.40; 69.41; 69.42; 2.17 69.43; 69.44; 69.45; 69.46; 69.47; 69.48; 69.49; 2.18 69.50; 69.51; 69.52; 69.53; 69.62; 69.78; 297I.10, 2.19 subdivision 2; 355.01, subdivisions 2, 4, 5, 9, 10; 2.20 355.11; 355.12; 355.13; 355.14; 355.15; 355.16; 2.21 355.17; 355.201; 355.202; 355.203; 355.204; 355.205; 2.22 355.206; 355.207; 355.208; 355.209; 355.21; 355.22; 2.23 355.23; 355.24; 355.25; 355.26; 355.27; 355.28; 2.24 355.281; 355.282; 355.283; 355.284; 355.285; 355.286; 2.25 355.287; 355.288; 355.29; 355.291; 355.292; 355.293; 2.26 355.294; 355.295; 355.296; 355.297; 355.298; 355.299; 2.27 355.30; 355.311; 355.391; 355.392; 355.393; 355.41; 2.28 355.42; 355.43; 355.44; 355.45; 355.46; 355.48; 2.29 355.49; 355.50; 355.51; 355.52; 355.54; 355.55; 2.30 355.56; 355.57; 355.58; 355.59; 355.60; 355.61; 2.31 355.621; 355.622; 355.623; 355.624; 355.625; 355.626; 2.32 355.627; 355.628; 355.71; 355.72; 355.73; 355.74; 2.33 355.75; 355.76; 355.77; 355.78; 355.79; 355.80; 2.34 355.81; 355.90; 356.19; 356.305; 356.306; 356.31; 2.35 356.325; 356.35; 356.36; 356.37; 356.371, subdivisions 2.36 2, 3; 356.372; 356.38; 356.39; 356.45; 356.451; 2.37 356.452; 356.453; 356.454; 356.455; 356.615; 356.71; 2.38 356.80; 356.81; 356.86; 356.865; 356.88; 356.89; 2.39 423.37; 423.371; 423.372; 423.373; 423.374; 423.375; 2.40 423.377; 423.378; 423.379; 423.38; 423.381; 423.382; 2.41 423.383; 423.384; 423.385; 423.386; 423.387; 423.388; 2.42 423.389; 423.39; 423.391; 423.392; 423.801; 423.802; 2.43 423.803; 423.804; 423.805; 423.806; 423.808; 423.809; 2.44 423.810; 423.812; 423.813; 423.814; 423.90; 423A.03; 2.45 424.01; 424.02; 424.03; 424.04; 424.05; 424.06; 2.46 424.08; 424.14; 424.15; 424.16; 424.165; 424.17; 2.47 424.18; 424.19; 424.20; 424.21; 424.22; 424.23; 2.48 424.24; 424.25; 424.27; 424.28; 424.29; Minnesota 2.49 Statutes 2001 Supplement, sections 353.01, subdivision 2.50 39; 356.371, subdivision 1; 356.866; Special Session 2.51 Laws 1889, chapter 425; Special Session Laws 1891, 2.52 chapter 11; Laws 1897, chapters 389; 390; Laws 1915, 2.53 chapter 68; Laws 1917, chapter 196; Laws 1919, 2.54 chapters 68, 515; Laws 1921, chapter 118; Laws 1923, 2.55 chapter 54; Laws 1925, chapter 197; Laws 1931, chapter 2.56 48; Laws 1933, chapter 122; Laws 1935, chapters 92; 2.57 192; 208; 259; Laws 1937, chapters 132; 197; 253; Laws 2.58 1939, chapters 124; 304; Laws 1941, chapters 74; 182; 2.59 196; Laws 1943, chapters 170; 267; 397; 413; 432; Laws 2.60 1945, chapters 74; 182; 277; 300; Laws 1947, chapters 2.61 40; 43; 101; 274; 329; Laws 1949, chapters 87; 144; 2.62 153; 154; 164; 191; 235; 281; 378; Laws 1951, chapters 2.63 43; 45; 48; 144; 233; 243; 420; 435; 499; Laws 1953, 2.64 chapters 37; 44; 91; 235; 253; 348; 391; 401; 406; 2.65 Laws 1955, chapters 42; 49; 75; 151; 187; 188; 293; 2.66 294; 348; 375; 827; Laws 1957, chapters 10; 16; 36; 2.67 127; 144; 164; 256; 257; 455; 630; 793; Laws 1959, 2.68 chapters 108; 131; 191; 207; 208; 211; 437; Laws 1961, 2.69 chapters 186; 290; 295; 300; 343; 376; 399; 434; 435, 2.70 section 2; 443; 620; 631; 747; Extra Session Laws 2.71 1961, chapters 28; 80; Laws 1963, chapters 36; 208; 3.1 221; 271; 443; 453; 454; 464; 619; 636; 643; 670; 715; 3.2 Laws 1965, chapters 174; 179; 190; 418; 457; 458; 465; 3.3 498; 536; 540; 594; 604; 605; 636; 790; Laws 1967, 3.4 chapters 644; 678; 702; 708; 730; 732; 736; 751; 775; 3.5 783; 798; 807; 816; 848; Laws 1969, chapters 138; 442; 3.6 443; 552; 576; 594; 614; 641; 668; 669; 670; 671; 672; 3.7 686; 694; 716; 849; 1087; Laws 1971, chapters 51; 178; 3.8 407; 549; 614; 807; 809; 810; Extra Session Laws 1971, 3.9 chapter 41; Laws 1973, chapters 286; 287; 346; 359; 3.10 432; 433; 587; Laws 1974, chapters 251; 382; Laws 3.11 1975, chapters 120; 121; 127; 254, sections 1, 2, 3, 3.12 4, 5, 6; 368, section 54; 389; 408; 423; 424; 425; 3.13 Laws 1976, chapters 36; 78; 85; 99; 247; Laws 1977, 3.14 chapters 83; 164, sections 1, 3; 169; 270; 275; 374, 3.15 sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 3.16 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 3.17 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 3.18 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 3.19 53, 54, 55, 56, 57, 58, 59, 60; 429, section 62; Laws 3.20 1978, chapters 563, sections 12, 13, 14, 16, 17, 18, 3.21 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30; 579; 3.22 648; 690, sections 9, 10; 793, section 96; Laws 1979, 3.23 chapters 131, section 3; 216, sections 27, 28, 29, 30, 3.24 31, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44; Laws 3.25 1980, chapters 341, sections 2, 3, 4, 5, 6, 9, 10; 3.26 600, sections 11, 12, 13, 14, 15, 16, 17, 18, 22; 607, 3.27 article XV, section 23; Laws 1981, chapter 68, 3.28 sections 31, 32, 33, 34, 35, 36, 37, 41, 42, 43; Laws 3.29 1981, chapter 224, sections 236, 237, 239, 240, 243, 3.30 244, 247, 248, 252, 253, 258, 259, 260, 261, 263, 264, 3.31 265, 266, 267, 268, 270, 272, 273; Laws 1981, chapter 3.32 297, sections 1, 2; Laws 1982, chapters 402; 443; 574, 3.33 sections 3, 4, 5, 6, 8; 578, article II, section 1, 3.34 subdivision 8, article III, section 18; 610, sections 3.35 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20; Laws 3.36 1983, chapters 47; 74; 84, section 1; 291, sections 8, 3.37 9, 10, 11, 12, 13, 14, 15, 16, 17; Laws 1984, chapter 3.38 574, sections 18, 19, 20, 22, 23, 24, 25, 26, 33; Laws 3.39 1985, chapters 259, sections 5, 6; 261, sections 14, 3.40 15, 16, 18, 20, 32, 33, 34, 35, 36; Laws 1985, First 3.41 Special Session chapter 16, article 2, section 6; Laws 3.42 1986, chapters 359, sections 22, 23, 24, 25; 458, 3.43 sections 23, 34; Laws 1987, chapter 372, article 2, 3.44 sections 7, 8, 9, 10, 12; Laws 1988, chapter 709, 3.45 articles 8, section 5; 9, section 5; Laws 1989, 3.46 chapter 319, article 11, sections 2, 3, 4, 12; Laws 3.47 1990, chapter 589, article 1, section 7; Laws 1991, 3.48 chapters 96; 269, article 2, sections 12, 13; Laws 3.49 1992, chapters 392, section 1; 393, section 1; 422; 3.50 431, section 1; 448; 455; 563, sections 3, 4, 5; 586, 3.51 section 1; Laws 1993, chapters 72; 110; 112, section 3.52 2; 126; 202, article 1; Laws 1994, chapters 409; 410; 3.53 474; 490; 541, section 3; Laws 1995, chapter 262, 3.54 article 10, section 4; Laws 1996, chapter 448, article 3.55 2, section 1; Laws 1997, chapter 233, article 1, 3.56 section 58; Laws 1997, chapter 241, article 2, 3.57 sections 2, 3, 4, 5, 6, 9, 10, 11, 13, 14, 15, 20; 3.58 Laws 1999, chapter 222, article 3, section 6; Laws 3.59 2000, chapter 461, article 10, section 2. 3.60 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 3.61 ARTICLE 1 3.62 LOCAL POLICE AND PAID 3.63 FIRE RELIEF ASSOCIATION 3.64 GOVERNING LAW CLARIFICATION 3.65 Section 1. Minnesota Statutes 2000, section 69.77, is 4.1 amended to read: 4.2 69.77 [POLICE AND FIREFIGHTERS' RELIEF ASSOCIATION 4.3 GUIDELINES ACT.] 4.4 Subdivision 1. [AUTHORIZEDCONDITIONED EMPLOYER SUPPORT 4.5 FOR A RELIEF ASSOCIATION.] (a) Notwithstanding any law to the 4.6 contrary, only if the municipality and the relief association 4.7 comply with the provisions of this section, a municipality may 4.8 contribute public funds, including any applicable police or fire 4.9 state aid, or levy property taxes for the support of a police or 4.10 firefighters' relief association, enumerated in subdivision 1a, 4.11 however organized, which provides retirement coverage or pays a 4.12 service pension to a retired police officer or firefighter or a 4.13 retirement benefit to a surviving dependent of either an active 4.14 or retired police officer or firefighter, for the operation and 4.15 maintenance of the relief associationonly if the municipality4.16and the relief association comply with the provisions of this4.17section. 4.18 (b) The commissioner shall not include in the apportionment 4.19 of police or fire state aid to the county auditorpursuant to4.20 under section 69.021, subdivision 6, any municipality in which 4.21 there exists a local police or salaried firefighters' relief 4.22 association as enumerated in subdivision 1a which does not 4.23 comply with the provisions of this section or the provisions of 4.24 any applicable special law relating to the funding or financing 4.25 of the association and that municipalityshallmay not qualify 4.26 initially to receive, or be entitled subsequently to retain, 4.27 state aidpursuant tounder sections 69.011 to 69.051 until the 4.28 reason for the disqualification is remedied, whereupon the 4.29 municipality, if otherwise qualified,shall beis entitled to 4.30 again receive state aid for the year occurring immediately 4.31 subsequent to the year in which the disqualification is remedied. 4.32 (c) The state auditor and the commissioner shall determine 4.33 if a municipality with a local police or salaried firefighters' 4.34 relief association fails to comply with the provisions of this 4.35 section or the funding or financing provisions of any applicable 4.36 special law. 5.1 Subd. 1a. [COVERED RETIREMENT PLANS.] The provisions of 5.2 this sectionshallapply to the following local retirementfunds5.3 plans: 5.4 (1)any police pension fund or relief association which is5.5established pursuant to chapter 423the Bloomington firefighters 5.6 relief association; 5.7 (2)any salaried firefighters' pension fund or relief5.8association which is established pursuant to chapter 424the 5.9 Fairmont police relief association; 5.10 (3)any pension fund or relief association which is5.11established pursuant to this chapter which has five or more5.12members who receive compensation for services rendered in the5.13employment covered by the pension fund or relief association and5.14which provides for retirement coverage or a service pension5.15based on the compensation paid to members for that servicethe 5.16 Minneapolis firefighters relief association; 5.17 (4)any pension fund or relief association which is5.18established and operates in whole or in part pursuant to special5.19legislation and which provides for retirement coverage or a5.20service pension based on the compensation paid to members for5.21service as police officers or firefighters or which provides for5.22retirement coverage or a service pension to volunteer5.23firefighters based on the compensation paid to or the service5.24pension provided by a pension fund or relief association located5.25in the same municipality for police officers employed by the5.26municipality but not covered by clause (1), (2) or (3)the 5.27 Minneapolis police relief association; and 5.28 (5)any governmental subdivision retirement fund5.29established pursuant to any law providing for retirement5.30coverage to police officers or salaried firefighters or a5.31retirement benefit to their dependents and not otherwise5.32described in this subdivisionthe Virginia fire department 5.33 relief association. 5.34 Subd. 2. [INAPPLICABLE PENALTY.] The penalty provided for 5.35 in subdivision 1shalldoes not apply to a relief association 5.36 enumerated in subdivision 1a if the requirements of subdivisions 6.12a3 to2h10 are met. 6.2 Subd.2a3. [MINIMUM MEMBER CONTRIBUTION.] Each active 6.3 member of the relief associationshallmust pay into the special 6.4 fund of the association during a year of covered service, a 6.5 contribution for retirement coverage, including survivorship 6.6 benefits, of not less than eight percent of the maximum rate of 6.7 salary upon which retirement coverage is credited and service 6.8 pension and retirement benefit amounts are determined. The 6.9 member contributionsshallmust be made by payroll deduction 6.10 from the salary of the member by the municipality, and 6.11shallmust be transmitted by the municipality to the relief 6.12 association as soon as practical. The relief association shall 6.13 deposit the member contribution to the credit of the special 6.14 fund of the relief association. The member contribution 6.15 requirement specified in this subdivisionshalldoes not apply 6.16 to any members who are volunteer firefighters. 6.17 Subd.2b4. [RELIEF ASSOCIATION FINANCIAL REQUIREMENTS; 6.18 MINIMUM MUNICIPAL OBLIGATION.] (a) The officers of the relief 6.19 association shall determine the financial requirements of the 6.20 relief association and minimum obligation of the municipality 6.21 for the following calendar year in accordance with the 6.22 requirements of this subdivision. The financial requirements of 6.23 the relief association and the minimum obligation of the 6.24 municipalityshallmust be determined on or before the 6.25 submission date established by the municipalitypursuant to6.26 under subdivision2c5. 6.27 (b) The financial requirements of the relief association 6.28 for the following calendar yearshallmust be based on the most 6.29 recent actuarial valuation or survey of the special fund of the 6.30 association if more than one fund is maintained by the 6.31 association, or of the association, if only one fund is 6.32 maintained, prepared in accordance with sections 356.215, 6.33 subdivisions 4 to 4k and 356.216, as requiredpursuant tounder 6.34 subdivision2h10. If an actuarial estimate is prepared by the 6.35 actuary of the relief association as part of obtaining a 6.36 modification of the benefit plan of the relief association and 7.1 the modification is implemented, the actuarial estimateshall7.2 must be used in calculating the subsequent financial 7.3 requirements of the relief association. 7.4 (c) If the relief association has an unfunded actuarial 7.5 accrued liability as reported in the most recent actuarial 7.6 valuation or survey, the total of the amounts 7.7 calculatedpursuant tounder clauses(a), (b), and (c)7.8shall(1), (2), and (3) constitute the financial requirements of 7.9 the relief association for the following year. If the relief 7.10 association does not have an unfunded actuarial accrued 7.11 liability as reported in the most recent actuarial valuation or 7.12 survey, the amount calculatedpursuant tounder clauses(a) and7.13(b) shall(1) and (2) constitute the financial requirements of 7.14 the relief association for the following year. The financial 7.15 requirement elements are: 7.16(a)(1) the normal level cost requirement for the following 7.17 year, expressed as a dollar amount, whichshallmust be 7.18 determined by applying the normal level cost of the relief 7.19 association as reported in the actuarial valuation or survey and 7.20 expressed as a percentage of covered payroll to the estimated 7.21 covered payroll of the active membership of the relief 7.22 association, including any projectedincreasechange in the 7.23 active membership, for the following year.; 7.24(b)(2) for the Bloomington fire department relief 7.25 association, the Fairmont police relief association, and the 7.26 Virginia fire department relief association, to the dollar 7.27 amount of normal costthusdeterminedshallunder clause (1) 7.28 must be added an amount equal to the dollar amount of the 7.29 administrative expenses of the special fund of the association 7.30 if more than one fund is maintained by the association, or of 7.31 the association if only one fund is maintained, for the most 7.32 recent year, multiplied by the factor of 1.035.For a relief7.33association in a municipality,The administrative expenses are 7.34 those authorized under section 69.80. No amount of 7.35 administrative expenses under this clauseshallare to be 7.36 included in the financial requirements ofathe Minneapolis 8.1 firefighters relief associationin a city of the first class8.2with a population of more than 300,000.or the Minneapolis 8.3 police relief association; and 8.4(c)(3) to the dollar amount of normal cost and expenses 8.5 determined under clauses(a) and (b) shall(1) and (2) must be 8.6 added an amount equal to the level annual dollar amount which is 8.7 sufficient to amortize the unfunded actuarial accrued liability 8.8 by December 31, 2010, as determined from the actuarial valuation 8.9 or survey of the fund, using an interest assumption set at the 8.10 applicable rate specified in section 356.215, subdivision 4d. 8.11 The amortization date specified in this clauseshall apply8.12 applies to all local police or salaried firefighters' relief 8.13 associations andshall supersedethat date supersedes any 8.14 amortization date specified in any applicable special law. 8.15 (d) The minimum obligation of the municipalityshall beis 8.16 an amount equal to the financial requirements of the relief 8.17 association reduced by the estimated amount of member 8.18 contributions from covered salary anticipated for the following 8.19 calendar year and the estimated amounts anticipated for the 8.20 following calendar year from the applicable state aid program 8.21 establishedpursuant tounder sections 69.011 to 69.051 8.22 receivable by the relief association after any allocation 8.23 madepursuant tounder section 69.031, subdivision 5,clause8.24(2), subclause (c)paragraph (b), clause (2), or 423A.01, 8.25 subdivision 2, clause (6), from the local police and salaried 8.26 firefighters' relief association amortization aid program 8.27 establishedpursuant tounder section 423A.02and, subdivision 8.28 1, from the supplementary amortization state-aid program 8.29 established underLaws 1984, chapter 564, section 48, and Laws8.301985, chapter 261, section 17section 423A.02, subdivision 1a, 8.31 and from the additional amortization state aid under section 8.32 423A.02, subdivision 1b. 8.33 Subd.2c5. [DETERMINATION SUBMISSION.] The officers of 8.34 the relief association shall submit the determination of the 8.35 financial requirements of the relief association and of the 8.36 minimum obligation of the municipality to the governing body on 9.1 or before the date established by the municipality, whichshall9.2 may not be earlier than August 1 andshallmay not be later than 9.3 September 1 of each year. The governing body of the 9.4 municipalityshallmust ascertain whether or not the 9.5 determinations were prepared in accordance with law. 9.6 Subd.2d6. [MUNICIPAL PAYMENT.] (a) The municipality 9.7 shall provide for and shall pay, each year, at least the amount 9.8 of the minimum obligation of the municipality to the relief 9.9 association. 9.10 (b) If there is any deficiency in the municipal payment to 9.11 meet the minimum obligation of the municipality as of the end of 9.12 any calendar year, the amount of the deficiencyshallmust be 9.13 added to the minimum obligation of the municipality for the 9.14 following year calculatedpursuant tounder subdivision2b4 and 9.15shallmust include interest at the compound rate of six percent 9.16 per annumcompoundedfrom the date that the municipality was 9.17 required to make paymentpursuant tounder this subdivision 9.18 until the date that the municipality actually makes the required 9.19 payment. 9.20 Subd.2e7. [BUDGET INCLUSION.] (a) The municipality shall 9.21 provide in the annual municipal budget for at least the minimum 9.22 obligation of the municipality calculatedpursuant tounder 9.23 subdivision2b4. 9.24 (b) The municipality may levy taxes for the payment of the 9.25 minimum obligation of the municipality without any limitation as 9.26 to rate or amount and irrespective of limitations imposed by 9.27 other provisions of law upon the rate or amount of taxation when 9.28 the balance of the special fund or any fund of the relief 9.29 association has attained a specified minimum asset level. In 9.30 addition, any taxes leviedpursuant tounder this sectionshall9.31 may not cause the amount or rate of other taxes levied in that 9.32 year or to be levied in a subsequent year by the municipality 9.33 which are subject to a limitation as to rate or amount to be 9.34 reduced. 9.35 (c) If the municipality does not include the full amount of 9.36 the minimum obligation of the municipality in the levy that the 10.1 municipality certified to the county auditor in any year, the 10.2 officers of the relief association shall certify the amount of 10.3 any deficiency to the county auditor. Upon verifying the 10.4 existence of any deficiency in the levy certified by the 10.5 municipality, the county auditor shall spread a levy over the 10.6 taxable property of the municipality in the amount of the 10.7 deficiency certified to by the officers of the relief 10.8 association. 10.9 Subd.2f8. [ACCELERATED AMORTIZATION.] Any sums of money 10.10 paid by the municipality to the relief association in excess of 10.11 the minimum obligation of the municipality in any yearshall10.12 must be used to amortize any unfunded actuarial accrued 10.13 liabilities of the relief association. 10.14 Subd.2g9. [LOCAL POLICE AND PAID FIRE RELIEF ASSOCIATION 10.15 INVESTMENT AUTHORITY.] (a) The funds of the association must be 10.16 invested in securities that are authorized investments under 10.17 section 356A.06, subdivision 6 or 7, whichever 10.18 applies.Notwithstanding the foregoing,Up to 75 percent of the 10.19 market value of the assets of the fund may be invested in 10.20 open-end investment companies registered under the federal 10.21 Investment Company Act of 1940, if the portfolio investments of 10.22 the investment companies comply with the type of securities 10.23 authorized for investment under section 356A.06, subdivision 7. 10.24 Securities held by the association before June 2, 1989, that do 10.25 not meet the requirements of this subdivision may be retained 10.26 after that date if they were proper investments for the 10.27 association on that date. 10.28 (b) The governing board of the association may select and 10.29 appoint investment agencies to act for and in its behalf or may 10.30 certify special fund assets for investment by the state board of 10.31 investment under section 11A.17. The governing board of the 10.32 association may certify general fund assets of the relief 10.33 association for investment by the state board of investment in 10.34 fixed income pools or in a separately managed account at the 10.35 discretion of the state board of investment as provided in 10.36 section 11A.14. The governing board of the association may 11.1 select and appoint a qualified private firm to measure 11.2 management performance and return on investment, and the firm 11.3 shall use the formula or formulas developed by the state board 11.4 under section 11A.04, clause (11). 11.5 Subd.2h10. [ACTUARIAL VALUATION REQUIRED.] The 11.6 association shall obtain an actuarial valuation showing the 11.7 condition of the special fund of the relief associationpursuant11.8tounder sections 356.215 and 356.216 and any applicable 11.9 standards for actuarial work established by the legislative 11.10 commission on pensions and retirement. The actuarial valuation 11.11 must be made as of December 31 of every year. A copy of the 11.12 actuarial valuationshallmust be filed with the director of the 11.13 legislative reference library, the governing body of the 11.14 municipality in which the association is organized, the 11.15 executive director of the legislative commission on pensions and 11.16 retirement, and the state auditor, not later than July 1 of the 11.17 following year. 11.18 Subd.2i11. [MUNICIPAL APPROVAL OF BENEFIT CHANGES 11.19 REQUIRED.] Any amendment to the bylaws or articles of 11.20 incorporation of a relief association which increases or 11.21 otherwise affects the retirement coverage provided by or the 11.22 service pensions or retirement benefits payable from any police 11.23 or firefighters' relief association enumerated in subdivision 1a 11.24shallis notbeeffective until it is ratified by the 11.25 municipality in which the relief association is located. The 11.26 officers of the relief association shall not seek municipal 11.27 ratificationprior tobefore obtaining either an updated 11.28 actuarial valuation including the proposed amendment or an 11.29 estimate of the expected actuarial impact of the proposed 11.30 amendment prepared by the actuary of the relief association and 11.31 submitting that actuarial valuation or estimate to the clerk of 11.32 the municipality. 11.33 Subd. 12. [APPLICATION OF OTHER LAWS TO CONTRIBUTION 11.34 RATE.] In the absence of any specific provision to the contrary, 11.35 no general or special law may be construed as reducing the 11.36 amount or rate of contribution to a police or firefighters 12.1 relief association to which subdivision 1a applies, by a 12.2 municipality or member of the association, which is required as 12.3 a condition for the use of public funds or the levy of taxes for 12.4 the support of the association. Each association, the 12.5 municipality in which it is organized, and the officers of each, 12.6 are authorized to do all things required by this section as a 12.7 condition for the use of public funds or the levy of taxes for 12.8 the support of the association. 12.9 Subd.313. [CITATION.] This section may be cited as the 12.10 "Police and Firefighters' Relief Associations Guidelines Act of 12.11 1969." 12.12 Sec. 2. Minnesota Statutes 2000, section 69.80, is amended 12.13 to read: 12.14 69.80 [AUTHORIZED ADMINISTRATIVE EXPENSES.] 12.15 (a) Notwithstanding any provision of law to the contrary, 12.16 the payment of the following necessary, reasonable and direct 12.17 expenses of maintaining, protecting and administering the 12.18 special fund, when provided for in the bylaws of the association 12.19 and approved by the board of trustees,shall constitute12.20 constitutes authorized administrative expenses of a police, 12.21 salaried firefighters', or volunteer firefighters' relief 12.22 association organized under any law of this state: 12.23(a)(1) office expense, including, but not limited to, 12.24 rent, utilities, equipment, supplies, postage, periodical 12.25 subscriptions, furniture, fixtures, and salaries of 12.26 administrative personnel; 12.27(b)(2) salaries of the president, secretary, and treasurer 12.28 of the association, or their designees, and any other official 12.29 of the relief association to whom a salary is payable under 12.30 bylaws or articles of incorporation in effect on January 1, 12.31 1986, and their itemized expenses incurred as a result of 12.32 fulfilling their responsibilities as administrators of the 12.33 special fund; 12.34(c)(3) tuition, registration fees, organizational dues, 12.35 and other authorized expenses of the officers or members of the 12.36 board of trustees incurred in attending educational conferences, 13.1 seminars, or classes relating to the administration of the 13.2 relief association; 13.3(d)(4) audit, actuarial, medical, legal, and investment 13.4 and performance evaluation expenses; 13.5(e)(5) reimbursement to the officers and members of the 13.6 board of trustees, or their designees, for reasonable and 13.7 necessary expenses actually paid and incurred in the performance 13.8 of their duties as officers or members of the board; and 13.9(f)(6) premiums on fiduciary liability insurance and 13.10 official bonds for the officers, members of the board of 13.11 trustees, and employees of the relief association. 13.12 (b) Any other expenses of the relief associationshallmust 13.13 be paid from the general fund of the association, if one 13.14 exists. If a relief association has only one fund, that 13.15 fundshall be deemed to beis the special fund for purposes of 13.16 this section. If a relief association has a special fund and a 13.17 general fund, and any expense of the relief association that is 13.18 directly related to the purposes for which both funds were 13.19 established, the payment of that expenseshallmust be 13.20 apportioned between the two funds on the basis of the benefits 13.21 derived by each fund. 13.22 Sec. 3. Minnesota Statutes 2000, section 353A.08, 13.23 subdivision 6a, is amended to read: 13.24 Subd. 6a. [MILITARY SERVICE CONTRIBUTION AND REFUND.] A 13.25 person who was an active member of a local police or 13.26 firefighters relief association upon its consolidation with the 13.27 public employees retirement association, and who was otherwise 13.28 eligible for automatic service credit for military service under 13.29sectionsMinnesota Statutes 2000, section 423.57and 424.23, and 13.30 who has not elected the type of benefit coverage provided by the 13.31 public employees police and fire fund at the time of 13.32 consolidation, must make employee contributions under section 13.33 353.01, subdivision 16, paragraph (h), to receive allowable 13.34 service credit from the association for a military service leave 13.35 after the effective date of the consolidation. A person who 13.36 later elects, under subdivision 3, to retain benefit coverage 14.1 under the bylaws of the local relief association is eligible for 14.2 a refund from the association at the time of retirement. The 14.3 association shall refund the employee contributions plus 14.4 interest at the rate of six percent, compounded quarterly, from 14.5 the date on which contributions were made until the first day of 14.6 the month in which the refund is paid. The employer shall 14.7 receive a refund of the employer contributions. The association 14.8 shall not pay a refund to a person who later elects, under 14.9 subdivision 3, the type of benefit coverage provided by the 14.10 public employees police and fire fund or to the person's 14.11 employer. 14.12 Sec. 4. Minnesota Statutes 2000, section 423A.17, is 14.13 amended to read: 14.14 423A.17 [CONTINUATION OF SURVIVING SPOUSE BENEFITS UPON 14.15 REMARRIAGE.] 14.16 (a) Notwithstanding a provision ofsection 69.48; 423.387,14.17subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1; or14.18424.24, subdivision 1, or otherlaw, article of incorporation, 14.19 or bylaw governing a local police or salaried firefighters 14.20 relief association to the contrary, the governing body of a 14.21 municipality may mandate the applicable local police or salaried 14.22 firefighters relief association to provide that a surviving 14.23 spouse benefit is payable for the life of the surviving spouse 14.24 and remains payable even in the event of the remarriage of the 14.25 surviving spouse. 14.26 (b) If the surviving spouse benefit change described in 14.27 paragraph (a) is made, the change applies to a surviving spouse 14.28 benefit payable on the effective date of the change and to the 14.29 potential surviving spouses of all active, deferred, or retired 14.30 members of the relief association who have that status on the 14.31 effective date of the change. 14.32 (c) In addition, if the surviving spouse benefit change 14.33 described in paragraph (a) is made a person who formerly was 14.34 receiving surviving spouse benefits from the relief association 14.35 and who had those benefits discontinued by virtue of the 14.36 remarriage is entitled, upon application, to a resumption of the 15.1 surviving spouse benefit, beginning with the last day of the 15.2 month following receipt of the application by the secretary of 15.3 the relief association. Nothing in this section authorizes the 15.4 payment of a benefit amount to an estate. 15.5 (d) The change must be made by a municipal resolution 15.6 adopted by a majority vote of the municipality. The resolution 15.7 must be filed by the secretary of the relief association with 15.8 the executive director of the legislative commission on pensions 15.9 and retirement, the state auditor, and the secretary of state. 15.10 Sec. 5. Minnesota Statutes 2000, section 423A.171, is 15.11 amended to read: 15.12 423A.171 [BYLAW AMENDMENTS.] 15.13 (a) Notwithstanding a provision ofsection 69.48; 423.387,15.14subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1;15.15423B.10; or 424.24, subdivision 1, or otherlaw governing a 15.16 local police or salaried firefighters' relief association to the 15.17 contrary, the board of trustees of a local relief association 15.18 governed by section 69.77 or its successor board under chapter 15.19 353A or 353B, with municipal approval as provided in section 15.20 69.77, subdivision2i11, may amend the bylaws of the relief 15.21 association to provide that a surviving spouse benefit is 15.22 payable to a surviving spouse who married a deferred or retired 15.23 member after the member's retirement, provided the marriage 15.24 occurred at least five years before the death of the member. 15.25 (b) If the surviving spouse benefit change described in 15.26 paragraph (a) is made, the change applies to a surviving spouse 15.27 benefit payable on the effective date of the change and to the 15.28 potential surviving spouses of all deferred or retired members 15.29 of the relief association who have that status on the effective 15.30 date of the change. 15.31 (c) The bylaw amendment is not effective until a certified 15.32 copy of the amendment and the municipal approval has been filed 15.33 by the municipal clerk with the executive director of the 15.34 legislative commission on pensions and retirement, the state 15.35 auditor, and the secretary of state. 15.36 (d) Notwithstanding the provisions of section 353B.11, a 16.1 surviving spouse benefit change made under this section for a 16.2 relief association that has consolidated with the public 16.3 employees retirement association is effective upon approval by 16.4 the public employees retirement association and the municipality 16.5pursuant tounder paragraph (c). 16.6 Sec. 6. Minnesota Statutes 2000, section 424A.09, is 16.7 amended to read: 16.8 424A.09 [APPLICATION TO CERTAIN RELIEF ASSOCIATIONS.] 16.9 This chaptershall supersedesupersedes any special law 16.10 applicable to any municipal volunteer firefighters' relief 16.11 association or independent nonprofit firefighting corporation 16.12 specifically authorizing the relief association or nonprofit 16.13 firefighting corporation to exceed the service pension 16.14 limitations contained in Minnesota Statutes 1978, sections 69.06 16.15 and 69.691. Any relief association which amended its bylaws to 16.16 provide for a full pro rata service pension amount at the 16.17 specified retirement age with 15 years service credit or 75 16.18 percent of the pro rata service pension amount at the specified 16.19 retirement age with ten years of servicepursuant tounder 16.20 Minnesota Statutes 1978, section 69.06, may continue to provide 16.21 the specified service pension amounts at the applicable years of 16.22 credited service to any member who has credit for at least ten 16.23 or 15 years, whichever is the applicable minimum service period 16.24 specified in the bylaws governing the relief association, on or 16.25 before December 31, 1979notwithstanding section 424A.02. 16.26 Sec. 7. [APPLICATION; BLOOMINGTON FIREFIGHTERS RELIEF 16.27 ASSOCIATION.] 16.28 To the extent that Minnesota Statutes 2000, chapter 424, 16.29 applied to the Bloomington firefighters relief association on 16.30 the day before the effective date of section 5, Minnesota 16.31 Statutes 2000, chapter 424, continues to apply to the 16.32 Bloomington firefighters relief association after that date. 16.33 Sec. 8. [REVISOR INSTRUCTIONS.] 16.34 (a) In the next and subsequent editions of Minnesota 16.35 Statutes, the revisor of statutes shall not print Minnesota 16.36 Statutes, sections 423.41 to 423.62, but shall denote those 17.1 sections as "[LOCAL, CITY OF FAIRMONT, POLICE PENSIONS.]." 17.2 (b) In the next and subsequent editions of Minnesota 17.3 Statutes, the revisor of statutes shall, in each section 17.4 indicated in column A, replace the cross-reference specified in 17.5 column B with the cross-reference set forth in column C: 17.6 Column A Column B Column C 17.7 69.021, subd. 10 69.77, subd. 2a 69.77, subd. 3 17.8 69.021, subd. 10 69.77, subd. 2b 69.77, subd. 4 17.9 69.021, subd. 10 69.77, subd. 2c 69.77, subd. 5 17.10 299A.465, subd. 5 424.03 Minnesota Statutes, 17.11 2000, 424.03 17.12 353A.07, subd. 6 69.77, subd. 2a 69.77, subd. 3 17.13 353A.09, subd. 4 69.77, subd. 2a 69.77, subd. 3 17.14 356.216 69.77, subd. 2b 69.77, subd. 4 17.15 356.219, subd. 2 69.77, subd. 2g 69.77, subd. 9 17.16 423.01, subd. 2 69.77, subd. 2b 69.77, subd. 4 17.17 423A.18 69.77, subd. 2i 69.77, subd. 11 17.18 423A.19, subd. 4 69.77, subd. 2i 69.77, subd. 11 17.19 423B.06, subd. 1 69.77, subd. 2a 69.77, subd. 3 17.20 423B.06, subd. 1 69.77, subd. 2b 69.77, subd. 4 17.21 423B.06, subd. 1 69.77, subd. 2c 69.77, subd. 5 17.22 423B.06, subd. 1 69.77, subd. 2d 69.77, subd. 6 17.23 423B.06, subd. 1 69.77, subd. 2e 69.77, subd. 7 17.24 423B.06, subd. 1 69.77, subd. 2f 69.77, subd. 8 17.25 423B.21, subd. 1 69.77, subd. 2b 69.77, subd. 4 17.26 Sec. 9. [REPEALER; OBSOLETE POLICE AND FIRE PENSION LAWS.] 17.27 Subdivision 1. [FIRST CLASS CITY FIRE; 17.28 REPEALER.] Minnesota Statutes 2000, sections 69.25; 69.26; 17.29 69.27; 69.28; 69.29; 69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 17.30 69.40; 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 69.48; 17.31 69.49; 69.50; 69.51; 69.52; 69.53; and 69.62, are repealed. 17.32 Subd. 2. [THIRD CLASS CITY POLICE; REPEALER.] Minnesota 17.33 Statutes 2000, sections 423.37; 423.371; 423.372; 423.373; 17.34 423.374; 423.375; 423.377; 423.378; 423.379; 423.38; 423.381; 17.35 423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 423.388; 17.36 423.389; 423.39; 423.391; and 423.392, are repealed. 18.1 Subd. 3. [SECOND CLASS CITY POLICE; REPEALER.] Minnesota 18.2 Statutes 2000, sections 423.801; 423.802; 423.803; 423.804; 18.3 423.805; 423.806; 423.808; 423.809; 423.810; 423.812; 423.813; 18.4 423.814; and 423.90, are repealed. 18.5 Subd. 4. [SECOND CLASS CITY FIRE; REPEALER.] Minnesota 18.6 Statutes 2000, sections 424.01; 424.02; 424.03; 424.04; 424.05; 18.7 424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 424.17; 424.18; 18.8 424.19; 424.20; 424.21; 424.22; 424.23; 424.24; 424.25; 424.27; 18.9 424.28; and 424.29, are repealed. 18.10 Subd. 5. [ALBERT LEA FIRE; REPEALER.] Laws 1943, chapters 18.11 170 and 397; Laws 1947, chapter 274; Laws 1949, chapters 87 and 18.12 281; Laws 1951, chapters 233, 420, and 435; Laws 1953, chapters 18.13 44 and 406; Laws 1957, chapter 127; Laws 1959, chapter 207; Laws 18.14 1963, chapter 643; Laws 1984, chapter 574, section 23; Laws 18.15 1985, chapter 261, section 36; and Laws 1993, chapter 72, are 18.16 repealed. 18.17 Subd. 6. [ALBERT LEA POLICE; REPEALER.] Laws 1965, chapter 18.18 174; Laws 1976, chapter 247; and Laws 1985, chapter 261, section 18.19 36, are repealed. 18.20 Subd. 7. [ANOKA POLICE; REPEALER.] Laws 1965, chapter 174; 18.21 Laws 1973, chapter 587; Laws 1978, chapter 563, section 28; and 18.22 Laws 1981, chapter 224, sections 263 and 264, are repealed. 18.23 Subd. 8. [AUSTIN FIRE; REPEALER.] Laws 1943, chapter 170; 18.24 Laws 1949, chapter 87; Laws 1951, chapters 45 and 435; Laws 18.25 1957, chapter 164; Laws 1963, chapter 36; Laws 1965, chapter 18.26 418; Laws 1976, chapter 36; Laws 1978, chapter 579; Laws 1980, 18.27 chapter 341, sections 9 and 10; Laws 1981, chapter 224, sections 18.28 268 and 270; Laws 1992, chapter 455; and Laws 1994, chapter 490, 18.29 are repealed. 18.30 Subd. 9. [AUSTIN POLICE; REPEALER.] Laws 1943, chapter 18.31 432; Laws 1976, chapter 36; Laws 1980, chapter 341, sections 9 18.32 and 10; and Laws 1981, chapter 224, sections 268 and 270, are 18.33 repealed. 18.34 Subd. 10. [BLOOMINGTON POLICE; REPEALER.] Laws 1965, 18.35 chapter 498; Laws 1975, chapter 121; Laws 1978, chapter 563, 18.36 section 17; Laws 1980, chapter 341, section 6; Laws 1981, 19.1 chapter 224, section 240; and Laws 1993, chapter 202, article 1, 19.2 are repealed. 19.3 Subd. 11. [BRAINERD POLICE; REPEALER.] Laws 1959, chapter 19.4 437, is repealed. 19.5 Subd. 12. [BROOKLYN CENTER POLICE; REPEALER.] Laws 1967, 19.6 chapter 736; and Laws 1978, chapter 563, section 18, are 19.7 repealed. 19.8 Subd. 13. [BUHL POLICE; REPEALER.] Laws 1957, chapter 630; 19.9 Laws 1975, chapter 425; Laws 1976, chapter 247; Laws 1981, 19.10 chapter 68, section 43; Laws 1982, chapter 578, article II, 19.11 section 1, subdivision 8; Laws 1984, chapter 574, sections 18 19.12 and 20; Laws 1985, chapter 261, section 18; and Laws 1986, 19.13 chapter 458, section 23, are repealed. 19.14 Subd. 14. [CHISHOLM FIRE; REPEALER.] Laws 1935, chapter 19.15 208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 19.16 Laws 1947, chapter 329; Laws 1951, chapter 144; Laws 1953, 19.17 chapter 391; Laws 1955, chapters 293 and 827; Laws 1961, chapter 19.18 631; Laws 1971, chapter 809; Laws 1973, chapter 433; Laws 1976, 19.19 chapter 78; Laws 1978, chapter 648; Laws 1979, chapter 131, 19.20 section 3; Laws 1981, chapter 68, sections 36 and 37; and Laws 19.21 1991, chapter 269, article 2, section 12, are repealed. 19.22 Subd. 15. [CHISHOLM POLICE; REPEALER.] Laws 1945, chapter 19.23 74; Laws 1949, chapter 164; Laws 1953, chapter 235; Laws 1959, 19.24 chapter 211; Laws 1961, chapter 290; Laws 1971, chapter 810; 19.25 Laws 1973, chapter 433; Laws 1976, chapter 78; Laws 1978, 19.26 chapters 563, section 27, and 648; Laws 1979, chapter 131, 19.27 section 3; Laws 1981, chapters 68, sections 31, 32, and 33; and 19.28 224, section 261; and Laws 1991, chapter 269, article 2, section 19.29 12, are repealed. 19.30 Subd. 16. [CLOQUET FIRE; REPEALER.] Laws 1941, chapter 19.31 196; Laws 1953, chapter 253; Laws 1955, chapter 42; Laws 1961, 19.32 chapter 295; Laws 1965, chapter 594; Laws 1967, chapter 783; and 19.33 Laws 1969, chapter 716, are repealed. 19.34 Subd. 17. [COLUMBIA HEIGHTS FIRE; REPEALER.] Laws 1965, 19.35 chapter 605; Laws 1975, chapter 424; Laws 1977, chapter 374, 19.36 sections 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 20.1 52, 53, 54, 55, 56, 57, 58, 59, and 60; Laws 1978, chapter 563, 20.2 sections 29 and 30; and Laws 1981, chapter 224, section 267, are 20.3 repealed. 20.4 Subd. 18. [COLUMBIA HEIGHTS POLICE; REPEALER.] Laws 1977, 20.5 chapter 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 20.6 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 20.7 30, 31, 32, 33, 34, 35, 36, and 37; and Laws 1993, chapter 126, 20.8 are repealed. 20.9 Subd. 19. [CROOKSTON FIRE; REPEALER.] Laws 1949, chapter 20.10 378; Laws 1957, chapter 144; Laws 1963, chapter 636; Laws 1971, 20.11 chapter 51; Laws 1978, chapter 563, sections 24, 25, and 26; 20.12 Laws 1981, chapter 224, sections 252 and 253; and Laws 1983, 20.13 chapter 291, sections 9, 10, 11, 12, 13, 14, 15, 16, and 17, are 20.14 repealed. 20.15 Subd. 20. [CROOKSTON POLICE; REPEALER.] Laws 1976, chapter 20.16 85; Laws 1977, chapter 275; Laws 1983, chapter 84, section 1; 20.17 and Laws 1984, chapter 574, section 26, are repealed. 20.18 Subd. 21. [CRYSTAL POLICE; REPEALER.] Laws 1963, chapter 20.19 619; Laws 1969, chapter 1087; and Laws 1980, chapter 607, 20.20 article XV, section 23, are repealed. 20.21 Subd. 22. [DULUTH FIRE; REPEALER.] Laws 1917, chapter 196; 20.22 Laws 1919, chapter 515; Laws 1955, chapter 188; Laws 1961, 20.23 chapter 186; Laws 1963, chapter 208; Laws 1965, chapter 179; 20.24 Laws 1967, chapter 732; Laws 1975, chapter 127; Laws 1976, 20.25 chapter 78, section 4; Laws 1977, chapter 164, section 3; Laws 20.26 1992, chapter 448, section 1; and Laws 1994, chapter 474, are 20.27 repealed. 20.28 Subd. 23. [DULUTH POLICE; REPEALER.] Laws 1915, chapter 20.29 68; Laws 1921, chapter 118; Laws 1923, chapter 54; Laws 1925, 20.30 chapter 197; Laws 1943, chapter 267; Laws 1949, chapter 153; 20.31 Laws 1953, chapter 91; Laws 1955, chapter 187; Laws 1959, 20.32 chapter 191; Laws 1975, chapter 408; Laws 1976, chapter 99; Laws 20.33 1980, chapter 600, section 11; and Laws 1992, chapter 448, are 20.34 repealed. 20.35 Subd. 24. [EVELETH FIRE; REPEALER.] Laws 1935, chapter 20.36 208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 21.1 Laws 1941, chapters 74 and 182; Laws 1947, chapter 329; Laws 21.2 1951, chapter 144; Laws 1953, chapter 391; Laws 1955, chapter 21.3 293; Laws 1961, chapter 620; Laws 1963, chapter 670; and Laws 21.4 1969, chapter 552, are repealed. 21.5 Subd. 25. [EVELETH POLICE; REPEALER.] Laws 1965, chapter 21.6 636; and Laws 1969, chapter 670, are repealed. 21.7 Subd. 26. [FARIBAULT FIRE; REPEALER.] Laws 1947, chapter 21.8 43; Laws 1949, chapter 154; Laws 1951, chapter 43; Laws 1957, 21.9 chapter 36; Laws 1961, chapter 443; Laws 1967, chapter 807; Laws 21.10 1969, chapter 614; Laws 1975, chapter 389; Laws 1984, chapter 21.11 574, section 22; Laws 1985, chapter 259, sections 5 and 6; Laws 21.12 1985, First Special Session chapter 16, article 2, section 6; 21.13 and Laws 1993, chapter 112, section 2, are repealed. 21.14 Subd. 27. [FARIBAULT POLICE; REPEALER.] Laws 1985, chapter 21.15 259, sections 5 and 6; Laws 1985, First Special Session chapter 21.16 16, article 2, section 6, are repealed. 21.17 Subd. 28. [FRIDLEY FIRE; REPEALER.] Laws 1969, chapter 21.18 594, is repealed. 21.19 Subd. 29. [FRIDLEY POLICE; REPEALER.] Laws 1977, chapter 21.20 83, is repealed. 21.21 Subd. 30. [HIBBING FIRE; REPEALER.] Laws 1935, chapter 21.22 192; Laws 1943, chapter 413; Laws 1945, chapter 182; Laws 1947, 21.23 chapter 101; Laws 1951, chapter 48; Laws 1955, chapter 294; Laws 21.24 1959, chapter 208; Laws 1967, chapter 816; Laws 1969, chapter 21.25 686; Laws 1971, chapter 614; Laws 1975, chapter 254, sections 5 21.26 and 6; Laws 1977, chapter 169; Laws 1981, chapter 224, section 21.27 260; Laws 1982, chapter 443; Laws 1987, chapter 372, article 2, 21.28 sections 7, 8, and 9; and Laws 1991, chapter 269, article 2, 21.29 sections 12 and 13, are repealed. 21.30 Subd. 31. [HIBBING POLICE; REPEALER.] Laws 1931, chapter 21.31 48; Laws 1933, chapter 122; Laws 1939, chapter 304; Laws 1945, 21.32 chapter 300; Laws 1947, chapter 40; Laws 1949, chapter 191; Laws 21.33 1951, chapter 243; Laws 1953, chapter 401; Laws 1957, chapter 21.34 793; Laws 1965, chapter 536; Laws 1967, chapter 678; Laws 1969, 21.35 chapter 672; Laws 1971, chapter 807; Laws 1983, chapter 74; Laws 21.36 1987, chapter 372, article 2, section 7; and Laws 1991, chapter 22.1 269, article 2, section 12, are repealed. 22.2 Subd. 32. [MANKATO FIRE; REPEALER.] Laws 1949, chapter 22.3 144; Laws 1953, chapter 37; Laws 1957, chapter 16; Laws 1971, 22.4 chapter 407; Extra Session Laws 1971, chapter 41; Laws 1981, 22.5 chapter 224, sections 258 and 259; and Laws 1989, chapter 319, 22.6 article 11, section 3, are repealed. 22.7 Subd. 33. [MANKATO POLICE; REPEALER.] Laws 1971, chapter 22.8 407; Extra Session Laws 1971, chapter 41; Laws 1981, chapter 22.9 224, sections 258 and 259; Laws 1986, chapter 458, section 34; 22.10 and Laws 1987, chapter 372, article 2, section 12, are repealed. 22.11 Subd. 34. [MOORHEAD FIRE; REPEALER.] Laws 1951, chapter 22.12 499; Laws 1955, chapter 75; Laws 1965, chapter 190; Laws 1969, 22.13 chapter 138; Laws 1975, chapter 120; Laws 1978, chapter 563, 22.14 sections 12 and 13; Laws 1979, chapter 216, sections 34, 35, 36, 22.15 37, 38, 39, 40, 41, 42, 43, and 44; Laws 1981, chapter 224, 22.16 section 236; and Laws 1982, chapter 578, article III, section 22.17 18, are repealed. 22.18 Subd. 35. [MOORHEAD POLICE; REPEALER.] Laws 1945, chapter 22.19 277; Laws 1967, chapter 775; Laws 1978, chapter 563, section 19; 22.20 Laws 1979, chapter 216, sections 27, 28, 29, 30, 31, and 44; 22.21 Laws 1980, chapter 600, section 16; Laws 1981, chapter 224, 22.22 section 243; and Laws 1982, chapter 578, article III, section 22.23 18, are repealed. 22.24 Subd. 36. [NEW ULM POLICE; REPEALER.] Laws 1965, chapter 22.25 174; Laws 1974, chapter 251; Laws 1981, chapter 224, sections 22.26 265 and 266; and Laws 1985, chapter 261, section 20, are 22.27 repealed. 22.28 Subd. 37. [RED WING FIRE; REPEALER.] Laws 1953, chapter 22.29 348; Laws 1955, chapter 49; Laws 1957, chapter 10; Laws 1961, 22.30 chapter 300; Laws 1965, chapter 604; Laws 1973, chapter 359; 22.31 Laws 1975, chapter 254, sections 1, 2, 3, and 4; and Laws 1984, 22.32 chapter 574, section 24, are repealed. 22.33 Subd. 38. [RED WING POLICE; REPEALER.] Laws 1965, chapter 22.34 174; Laws 1973, chapter 346; Laws 1983, chapter 291, section 8; 22.35 and Laws 1994, chapter 410, are repealed. 22.36 Subd. 39. [RICHFIELD FIRE; REPEALER.] Laws 1955, chapter 23.1 348; Extra Session Laws 1961, chapter 28; Laws 1963, chapter 23.2 464; Laws 1967, chapter 798; Laws 1978, chapter 563, sections 20 23.3 and 21; Laws 1980, chapter 607, article XV, section 23; Laws 23.4 1981, chapter 224, section 244; and Laws 1997, chapter 241, 23.5 article 2, sections 2, 3, 4, 5, 6, 9, 10, 13, 14, and 20, are 23.6 repealed. 23.7 Subd. 40. [RICHFIELD POLICE; REPEALER.] Laws 1957, chapter 23.8 455; Laws 1965, chapter 458; Laws 1978, chapter 563, section 16; 23.9 Laws 1980, chapter 607, article XV, section 23; Laws 1981, 23.10 chapter 224, section 239; and Laws 1991, chapter 96, are 23.11 repealed. 23.12 Subd. 41. [ROCHESTER FIRE; REPEALER.] Laws 1959, chapter 23.13 131; Laws 1969, chapter 694; Laws 1978, chapter 563, section 14; 23.14 Laws 1980, chapter 600, sections 18 and 22; and Laws 1981, 23.15 chapter 224, section 237, are repealed. 23.16 Subd. 42. [ROCHESTER POLICE; REPEALER.] Laws 1969, chapter 23.17 641; Laws 1975, chapter 368, section 54; Laws 1978, chapters 23.18 563, section 23; and 793, section 96; Laws 1980, chapter 600, 23.19 sections 18 and 22; and Laws 1981, chapter 224, section 248, are 23.20 repealed. 23.21 Subd. 43. [ST. CLOUD FIRE; REPEALER.] Laws 1961, chapter 23.22 343; Laws 1963, chapter 453; Laws 1967, chapter 702; Laws 1974, 23.23 chapter 382; Laws 1977, chapter 270; Laws 1978, chapter 690, 23.24 sections 9 and 10; and Laws 1982, chapter 402, are repealed. 23.25 Subd. 44. [ST. CLOUD POLICE; REPEALER.] Laws 1973, chapter 23.26 432; Laws 1980, chapter 341, sections 2, 3, 4, and 5; Laws 1984, 23.27 chapter 574, section 25; and Laws 1999, chapter 222, article 3, 23.28 section 6, are repealed. 23.29 Subd. 45. [ST. LOUIS PARK FIRE; REPEALER.] Laws 1967, 23.30 chapter 730; Laws 1969, chapter 576; Laws 1978, chapter 563, 23.31 section 22; Laws 1981, chapter 224, section 247; and Laws 1985, 23.32 chapter 261, sections 32, 33, 34, and 35, are repealed. 23.33 Subd. 46. [ST. LOUIS PARK POLICE; REPEALER.] Laws 1963, 23.34 chapter 454; Laws 1980, chapter 600, section 17; Laws 1984, 23.35 chapter 574, section 19; and Laws 1990, chapter 589, article 1, 23.36 section 7, are repealed. 24.1 Subd. 47. [ST. PAUL FIRE; REPEALER.] Laws 1917, chapter 24.2 196; Laws 1919, chapter 515; Laws 1955, chapter 375; Laws 1957, 24.3 chapters 256 and 257; Laws 1961, chapter 376; Laws 1963, chapter 24.4 221; Laws 1965, chapter 790; Laws 1967, chapters 644 and 708; 24.5 Laws 1969, chapters 443, 669, and 671; Laws 1973, chapter 287; 24.6 Laws 1975, chapter 423; Laws 1977, chapter 164, section 1; Laws 24.7 1981, chapter 68, section 35; Laws 1989, chapter 319, article 24.8 11, section 12; Laws 1992, chapters 422 and 563, sections 3, 4, 24.9 and 5; Laws 1993, chapter 110; Laws 1996, chapter 448, article 24.10 2, section 1; and Laws 1997, chapter 241, article 2, sections 11 24.11 and 15, are repealed. 24.12 Subd. 48. [ST. PAUL POLICE; REPEALER.] Special Laws 1889, 24.13 chapter 425; Special Laws 1891, chapter 11; Laws 1897, chapters 24.14 389 and 390; Laws 1919, chapter 68; Laws 1921, chapter 118; Laws 24.15 1923, chapter 54; Laws 1925, chapter 197; Laws 1955, chapter 24.16 151; Laws 1961, chapters 434 and 435, section 2; Laws 1963, 24.17 chapter 271; Laws 1965, chapter 465; Laws 1969, chapters 442, 24.18 668, and 671; Laws 1971, chapter 549; Laws 1973, chapter 286; 24.19 Laws 1980, chapter 600, sections 12, 13, 14, and 15; Laws 1981, 24.20 chapter 68, section 34; Laws 1983, chapter 47; Laws 1988, 24.21 chapter 709, article 8, section 5; Laws 1989, chapter 319, 24.22 article 11, sections 2 and 12; Laws 1992, chapters 393, section 24.23 1; 563, section 5; and 586, section 1; Laws 1994, chapter 409; 24.24 Laws 1996, chapter 448, article 2, section 1; and Laws 1997, 24.25 chapter 241, article 2, sections 11 and 15, are repealed. 24.26 Subd. 49. [SOUTH ST. PAUL FIRE; REPEALER] Laws 1943, 24.27 chapter 397; Laws 1947, chapter 274; Laws 1949, chapter 281; 24.28 Laws 1951, chapters 233 and 420; Laws 1953, chapters 44 and 406; 24.29 Laws 1957, chapter 127; Laws 1961, chapter 747; Laws 1963, 24.30 chapter 715; Laws 1965, chapter 457; Laws 1969, chapter 849; and 24.31 Laws 1971, chapter 178, are repealed. 24.32 Subd. 50. [SOUTH ST. PAUL POLICE; REPEALER.] Laws 1994, 24.33 chapter 541, section 3, is repealed. 24.34 Subd. 51. [THIEF RIVER FALLS POLICE; REPEALER.] Laws 1981, 24.35 chapters 68, sections 41 and 42; 224, sections 272 and 273; Laws 24.36 1985, chapter 261, section 14; and Laws 1992, chapter 431, 25.1 section 1, are repealed. 25.2 Subd. 52. [VIRGINIA POLICE; REPEALER.] Laws 1935, chapters 25.3 92 and 259; Laws 1937, chapter 197; Laws 1949, chapter 235; Laws 25.4 1965, chapter 174; Laws 1982, chapter 574, sections 3, 4, 5, 6, 25.5 and 8; Laws 1985, chapter 261, sections 15 and 16; Laws 1989, 25.6 chapter 319, article 11, section 4; and Laws 1992, chapter 392, 25.7 section 1, are repealed. 25.8 Subd. 53. [WEST ST. PAUL FIRE; REPEALER.] Laws 1961, 25.9 chapter 399; Laws 1965, chapter 540; Laws 1982, chapter 610, 25.10 sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 20; 25.11 and Laws 1984, chapter 574, section 33, are repealed. 25.12 Subd. 54. [WEST ST. PAUL POLICE; REPEALER] Laws 1965, 25.13 chapter 174; Laws 1967, chapter 751; Laws 1981, chapter 297, 25.14 sections 1 and 2; Laws 1987, chapter 372, article 2, section 10; 25.15 and Laws 1995, chapter 262, article 10, section 4, are repealed. 25.16 Subd. 55. [WINONA FIRE; REPEALER.] Extra Session Laws 25.17 1961, chapter 80; Laws 1963, chapter 443; and Laws 1967, chapter 25.18 848, are repealed. 25.19 Subd. 56. [WINONA POLICE; REPEALERS.] Laws 1959, chapter 25.20 108; Extra Session Laws 1961, chapter 80; Laws 1977, chapter 25.21 429, section 62; Laws 1986, chapter 359, sections 22, 23, 24, 25.22 and 25; and Laws 1988, chapter 709, article 9, section 5, are 25.23 repealed. 25.24 Subd. 57. [OTHER REPEALER.] Minnesota Statutes 2000, 25.25 sections 69.78; 297I.10, subdivision 2; and 423A.03, are 25.26 repealed. 25.27 Sec. 10. [EFFECTIVE DATE.] 25.28 Sections 1 to 9 are effective on July 1, 2002. 25.29 ARTICLE 2 25.30 PERA MEMBERSHIP ELIGIBILITY 25.31 AND SERVICE CREDIT PRORATION 25.32 Section 1. Minnesota Statutes 2001 Supplement, section 25.33 353.01, subdivision 2a, is amended to read: 25.34 Subd. 2a. [INCLUDED EMPLOYEES.] (a) Public employees whose 25.35 salary from one governmental subdivision exceeds $425 in any 25.36 month shall participate as members of the association. If the 26.1 salary is less than $425 in a subsequent month, the employee 26.2 retains membership eligibility. Eligible public employees shall 26.3 participate as members of the association with retirement 26.4 coverage by the public employees retirement plan or the public 26.5 employees police and fire retirement plan under this chapter, or 26.6 the local government correctional employees retirement plan 26.7 under chapter 353E, whichever applies, as a condition of their 26.8 employment on the first day of employment unless they: 26.9 (1) are specifically excluded under subdivision 2b; 26.10 (2) do not exercise their option to elect retirement 26.11 coverage in the association as provided in subdivision 2d, 26.12 paragraph (a); or 26.13 (3) are employees of the governmental subdivisions listed 26.14 in subdivision 2d, paragraph (b), where the governmental 26.15 subdivision has not elected to participate as a governmental 26.16 subdivision covered by the association. 26.17 (b) A public employee who was a member of the association 26.18 on June 30, 2002, based on employment that qualified for 26.19 membership coverage by the public employees retirement plan or 26.20 the public employees police and fire plan under this chapter, or 26.21 the local government correctional employees retirement plan 26.22 under chapter 353E as of June 30, 2002, retains that membership 26.23 until the employee terminates public employment under 26.24 subdivision 11a or terminates membership under subdivision 11b. 26.25 Sec. 2. Minnesota Statutes 2001 Supplement, section 26.26 353.01, subdivision 2b, is amended to read: 26.27 Subd. 2b. [EXCLUDED EMPLOYEES.] The following public 26.28 employees are not eligible to participate as members of the 26.29 association with retirement coverage by the public employees 26.30 retirement plan, the local government correctional employees 26.31 retirement plan under chapter 353E, or the public employees 26.32 police and fire retirement plan: 26.33 (1) public officers, other than county sheriffs, who are 26.34 elected to a governing body, or persons who are appointed to 26.35 fill a vacancy in an elective office of a governing body, whose 26.36 term of office first commences on or after July 1, 2002, for the 27.1 service to be rendered in that elective position. Elected 27.2 governing body officials who were active members of the 27.3 association's coordinated or basic retirement plans as of June 27.4 30, 2002, continue participation throughout incumbency in office 27.5 until termination of public service occurs as defined in 27.6 subdivision 11a; 27.7 (2) election officers or election judges; 27.8 (3) patient and inmate personnel who perform services for a 27.9 governmental subdivision; 27.10 (4) employees who are hired for a temporary position under 27.11 subdivision 12a, and employees who resign from a nontemporary 27.12 position and accept a temporary position within 30 days in the 27.13 same governmental subdivision. An employer must not apply the 27.14 definition of temporary position so as to exclude employees who 27.15 are hired to fill positions that are permanent or that are for 27.16 an unspecified period but who are serving a probationary period 27.17 at the start of the employment. If the period of employment 27.18 extends beyond six consecutive months and the employee earns 27.19 more than $425 from one governmental subdivision in any calendar 27.20 month, the department head shall report the employee for 27.21 membership and require employee deductions be made on behalf of 27.22 the employee under section 353.27, subdivision 4. 27.23 The membership eligibility of an employee who resigns or is 27.24 dismissed from a temporary position and within 30 days accepts 27.25 another temporary position in the same governmental subdivision 27.26 is determined on the total length of employment rather than on 27.27 each separate position. Membership eligibility of an employee 27.28 who holds concurrent temporary and nontemporary positions in one 27.29 governmental subdivision is determined by the length of 27.30 employment and salary of each separate position; 27.31 (5) employees who are employed by reason of work emergency 27.32 caused by fire, flood, storm, or similar disaster; 27.33 (6) employees who by virtue of their employment in one 27.34 governmental subdivision are required by law to be a member of 27.35 and to contribute to any of the plans or funds administered by 27.36 the Minnesota state retirement system, the teachers retirement 28.1 association, the Duluth teachers retirement fund association, 28.2 the Minneapolis teachers retirement association, the St. Paul 28.3 teachers retirement fund association, the Minneapolis employees 28.4 retirement fund, or any police or firefighters relief 28.5 association governed by section 69.77 that has not consolidated 28.6 with the public employees retirement association, or any local 28.7 police or firefighters consolidation account but who have not 28.8 elected the type of benefit coverage provided by the public 28.9 employees police and fire fund under sections 353A.01 to 28.10 353A.10, or any persons covered by section 353.665, subdivision 28.11 4, 5, or 6, who have not elected public employees police and 28.12 fire plan benefit coverage. This clause must not be construed 28.13 to prevent a person from being a member of and contributing to 28.14 the public employees retirement association and also belonging 28.15 to and contributing to another public pension fund for other 28.16 service occurring during the same period of time. A person who 28.17 meets the definition of "public employee" in subdivision 2 by 28.18 virtue of other service occurring during the same period of time 28.19 becomes a member of the association unless contributions are 28.20 made to another public retirement fund on the salary based on 28.21 the other service or to the teachers retirement association by a 28.22 teacher as defined in section 354.05, subdivision 2; 28.23 (7) persons who are members of a religious order and are 28.24 excluded from coverage under the federal Old Age, Survivors, 28.25 Disability, and Health Insurance Program for the performance of 28.26 service as specified in United States Code, title 42, section 28.27 410(a)(8)(A), as amended through January 1, 1987, if no 28.28 irrevocable election of coverage has been made under section 28.29 3121(r) of the Internal Revenue Code of 1954, as amended; 28.30 (8) employeeswho at the time they are hired by aof a 28.31 governmental subdivision who have not reached the age of 23 and 28.32 are enrolled on a full-time basis to attend or are attending 28.33 classes on a full-time basis at an accredited school, college, 28.34 or university in an undergraduate, graduate, or 28.35 professional-technical program, or a public or charter high 28.36 school, if the employment is predicated on the student status of29.1the individual; 29.2 (9) resident physicians, medical interns, and pharmacist 29.3 residents and pharmacist interns who are serving in a degree or 29.4 residency program in public hospitals; 29.5 (10) students who are serving in an internship or residency 29.6 program sponsored by an accredited educational institution; 29.7 (11) persons who hold a part-time adult supplementary 29.8 technical college license who render part-time teaching service 29.9 in a technical college; 29.10 (12) except for employees of Hennepin county, foreign 29.11 citizens working for a governmental subdivision with a work 29.12 permit of less than three years, or an H-1b visa valid for less 29.13 than three years of employment. Upon notice to the association 29.14 that the work permit or visa extends beyond the three-year 29.15 period, the foreign citizens areeligibleto be reported for 29.16 membership from the date of the extension; 29.17 (13) public hospital employees who elected not to 29.18 participate as members of the association before 1972 and who 29.19 did not elect to participate from July 1, 1988, to October 1, 29.20 1988; 29.21 (14) except as provided in section 353.86, volunteer 29.22 ambulance service personnel, as defined in subdivision 35, but 29.23 persons who serve as volunteer ambulance service personnel may 29.24 still qualify as public employees under subdivision 2 and may be 29.25 members of the public employees retirement association and 29.26 participants in the public employees retirement fund or the 29.27 public employees police and fire fund, whichever applies, on the 29.28 basis of compensation received from public employment service 29.29 other than service as volunteer ambulance service personnel; 29.30 (15) except as provided in section 353.87, volunteer 29.31 firefighters, as defined in subdivision 36, engaging in 29.32 activities undertaken as part of volunteer firefighter duties; 29.33 provided that a person who is a volunteer firefighter may still 29.34 qualify as a public employee under subdivision 2 and may be a 29.35 member of the public employees retirement association and a 29.36 participant in the public employees retirement fund or the 30.1 public employees police and fire fund, whichever applies, on the 30.2 basis of compensation received from public employment activities 30.3 other than those as a volunteer firefighter; 30.4 (16) pipefitters and associated trades personnel employed 30.5 by independent school district No. 625, St. Paul, with coverage 30.6 under a collective bargaining agreement by the pipefitters local 30.7 455 pension plan who were either first employed after May 1, 30.8 1997, or, if first employed before May 2, 1997, elected to be 30.9 excluded under Laws 1997, chapter 241, article 2, section 12; 30.10 (17) electrical workers, plumbers, carpenters, and 30.11 associated trades personnel employed by independent school 30.12 district No. 625, St. Paul, or the city of St. Paul, who have 30.13 retirement coverage under a collective bargaining agreement by 30.14 the electrical workers local 110 pension plan, the united 30.15 association plumbers local 34 pension plan, or the carpenters 30.16 local 87 pension plan who were either first employed after May 30.17 1, 2000, or, if first employed before May 2, 2000, elected to be 30.18 excluded under Laws 2000, chapter 461, article 7, section 5; 30.19 (18) bricklayers, allied craftworkers, cement masons, 30.20 glaziers, glassworkers, painters, allied tradesworkers, and 30.21 plasterers employed by the city of St. Paul or independent 30.22 school district No. 625, St. Paul, with coverage under a 30.23 collective bargaining agreement by the bricklayers and allied 30.24 craftworkers local 1 pension plan, the cement masons local 633 30.25 pension plan, the glaziers and glassworkers local L-1324 pension 30.26 plan, the painters and allied trades local 61 pension plan, or 30.27 the Twin Cities plasterers local 265 pension plan who were 30.28 either first employed after May 1, 2001, or if first employed 30.29 before May 2, 2001, elected to be excluded under Laws 2001, 30.30 First Special Session chapter 10, article 10, section 6; 30.31 (19) plumbers employed by the metropolitan airports 30.32 commission, with coverage under a collective bargaining 30.33 agreement by the plumbers local 34 pension plan, who either were 30.34 first employed after May 1, 2001, or if first employed before 30.35 May 2, 2001, elected to be excluded under Laws 2001, First 30.36 Special Session chapter 10, article 10, section 6; 31.1 (20) employees who are hired after June 30, 2002, to fill 31.2 seasonal positions under subdivision 12b which are limited in 31.3 duration by the employer to 185 consecutive calendar days or 31.4 less in eachbusinessyear of employment with the governmental 31.5 subdivision; 31.6 (21) persons who are provided supported employment or 31.7 work-study positions by a governmental subdivision and who 31.8 participate in an employment or industries program maintained 31.9 for the benefit of these persons where the governmental 31.10 subdivision limits the position's duration to three years or 31.11 less, including persons participating in a federal or state 31.12 subsidized on-the-job training, work experience, senior citizen, 31.13 youth, or unemployment relief program where the training or work 31.14 experience is not provided as a part of, or for, future 31.15 permanent public employment; 31.16 (22) independent contractors and the employees of 31.17 independent contractors; and 31.18 (23) reemployed annuitants of the association during the 31.19 course of that reemployment. 31.20 Sec. 3. Minnesota Statutes 2001 Supplement, section 31.21 353.01, subdivision 11b, is amended to read: 31.22 Subd. 11b. [TERMINATION OF MEMBERSHIP.] (a) "Termination 31.23 of membership" means the conclusion of membership in the 31.24 association and occurs: 31.25 (1) upon termination of public service under subdivision 31.26 11a; 31.27 (2) when a member does not return to work within 30 days of 31.28 the expiration of an authorized temporary layoff under 31.29 subdivision 12 or an authorized leave of absence under 31.30 subdivision 31 as evidenced by the appropriate record filed by 31.31 the governmental subdivision; or 31.32 (3) when a person files a written election to discontinue 31.33 employee deductions under section 353.27, subdivision 7, 31.34 paragraph (a), clause (1). 31.35 (b) The termination of membership must be reported to the 31.36 association by the governmental subdivision. 32.1 (c) If the employee subsequently returns to a position in 32.2 the same governmental subdivision, the employee shall not again 32.3 be required to earn a salary in excess of $425 per month to 32.4 qualify for membership, unless the employee has taken a refund 32.5 of accumulated employee deduction plus interest under section 32.6 353.34, subdivision 1. 32.7 Sec. 4. Minnesota Statutes 2001 Supplement, section 32.8 353.01, subdivision 16, is amended to read: 32.9 Subd. 16. [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 32.10 "Allowable service" means: 32.11 (1) service during years of actual membership in the course 32.12 of which employee contributions were made, periods covered by 32.13 payments in lieu of salary deductions under section 353.35; 32.14 (2) service in years during which the public employee was 32.15 not a member but for which the member later elected, while a 32.16 member, to obtain credit by making payments to the fund as 32.17 permitted by any law then in effect; 32.18 (3) a period of authorized leave of absence with pay from 32.19 which deductions for employee contributions are made, deposited, 32.20 and credited to the fund; 32.21 (4) a period of authorized personal, parental, or medical 32.22 leave of absence without pay, including a leave of absence 32.23 covered under the federal Family Medical Leave Act, that does 32.24 not exceed one year, and during or for which a member obtained 32.25full or fractionalservice credit for each month in the leave 32.26 period by payments to the fund made in place of salary 32.27 deductions. The payments must be made in an amount or amounts 32.28 based on the member's average salary on which deductions were 32.29 paid for the last six months of public service, or for that 32.30 portion of the last six months while the member was in public 32.31 service, to apply to the period in either case that immediately 32.32 precedes the commencement of the leave of absence. If the 32.33 employee elects to pay the employee contributions for the period 32.34 of any authorized personal, parental, or medical leave of 32.35 absence without pay, or for any portion of the leave, the 32.36 employee shall also, as a condition to the exercise of the 33.1 election, pay to the fund an amount equivalent to the required 33.2 employer and the additional employer contributions, if any, for 33.3 the employee. The payment must be made within one year from the 33.4 expiration of the leave of absence or within 20 days after 33.5 termination of public service under subdivision 11a, whichever 33.6 is earlier. The employer,ifby appropriate action of its 33.7 governing body,which is made a part of its official records,33.8 and which is adopted before the date of the first payment of the 33.9 employee contribution, may certify to the association in writing 33.10 its commitment to pay the employer and additional employer 33.11 contributions from the proceeds of a tax levy made under section 33.12 353.28. Payments under this paragraph must include interest at 33.13 an annual rate of 8.5 percent compounded annually from the date 33.14 of the termination of the leave of absence to the date payment 33.15 is made. An employee shall return to public service and render 33.16 a minimum of three months of allowable service in order to be 33.17 eligible to pay employee and employer contributions for a 33.18 subsequent authorized leave of absence without pay. Upon 33.19 payment, the employee must be granted allowable service credit 33.20 forfull calendar months or fractions of a month duringthe 33.21leavepurchased periodas described in paragraph (d), clauses (1)33.22and (2), based on the salary or the compensated hours used in33.23computing the payment amount; 33.24 (5) a periodic, repetitive leave that is offered to all 33.25 employees of a governmental subdivision. The leave program may 33.26 not exceed 208 hours per annual normal work cycle as certified 33.27 to the association by the employer. A participating member 33.28 obtains service credit by making employee contributions in an 33.29 amount or amounts based on the member's average salary that 33.30 would have been paid if the leave had not been taken. The 33.31 employer shall pay the employer and additional employer 33.32 contributions on behalf of the participating member. The 33.33 employee and the employer are responsible to pay interest on 33.34 their respective shares at the rate of 8.5 percent a year, 33.35 compounded annually, from the end of the normal cycle until full 33.36 payment is made. An employer shall also make the employer and 34.1 additional employer contributions, plus 8.5 percent interest, 34.2 compounded annually, on behalf of an employee who makes employee 34.3 contributions but terminates public service. The employee 34.4 contributions must be made within one year after the end of the 34.5 annual normal working cycle or within 20 days after termination 34.6 of public service, whichever is sooner. The association shall 34.7 prescribe the manner and forms to be used by a governmental 34.8 subdivision in administering a periodic, repetitive leave. Upon 34.9 payment, the member must be granted allowable service credit for 34.10full calendar months or fractions of a month duringtheleave34.11 purchased periodas described in paragraph (d), clauses (1) and34.12(2), based on the salary or the compensated hours used in34.13computing the payment amount; 34.14 (6) an authorized temporary layoff under subdivision 12.34.15For temporary layoffs that begin before January 1, 2002,34.16allowable service credit is, limited to three months allowable 34.17 service per authorized temporary layoff in one calendar year. 34.18For temporary layoffs that begin on or after January 1, 2002,34.19allowable service credit for the calendar month in which the34.20member does not receive salary due to the layoff must be34.21determined using the following formula:34.22(i) members who earned one month of allowable service34.23credit for each of the nine calendar months of compensated34.24employment with the governmental subdivision authorizing the34.25layoff that immediately preceded the layoff shall receive one34.26month of allowable service credit, limited to three months of34.27allowable service credit per year, for each month of the34.28temporary layoff; or34.29(ii) members who earned less than nine months of allowable34.30service credit in the year of compensated employment with the34.31governmental subdivision authorizing the layoff that immediately34.32preceded the layoff shall receive allowable service credit on a34.33fractional basis for each month of the authorized layoff,34.34limited to three months of allowable service credit, determined34.35by dividing the total number of months of service credit earned34.36for the compensated employment by nine and multiplying the35.1resulting number by the total number of months in the layoff35.2period that are not compensatedAn employee who has received the 35.3 maximum service credit allowed for an authorized temporary 35.4 layoff must return to public service and must receive a minimum 35.5 of three months of allowable service subsequent to the layoff in 35.6 order to receive allowable service for a subsequent authorized 35.7 temporary layoff; or 35.8 (7) a period during which a member is on an authorized 35.9 leave of absence to enter military service in the armed forces 35.10 of the United States, provided thatif the member returns to 35.11 public service upon discharge from military service under 35.12 section 192.262 and pays into the fund employee contributions 35.13 based upon the employee's salary at the date of return from 35.14 military service. Payment must be made within a period that is 35.15 three times the length of the military leave period, or within 35.16 five years of the date of discharge from the military service, 35.17 whichever is less. Payment cannot be accepted following 20 days 35.18 after termination of public service under subdivision 11a. The 35.19 amount of these contributions must be in accord with the 35.20 contribution rates and salary limitations, if any, in effect 35.21 during the leave, plus interest at an annual rate of 8.5 percent 35.22 compounded annually from the date of return to public service to 35.23 the date payment is made. Thematchingcorresponding employer 35.24 contribution, and additional employer contributionunder section35.25353.27, subdivisions 3 and 3a, if applicable, must be paid by 35.26 the governmental subdivision employing the member upon the 35.27 person's return to public service if the member makes the 35.28 employee contributions. The governmental subdivision involved 35.29 may appropriate money for those payments. A member may not 35.30 receive credit for a voluntary extension of military service at 35.31 the instance of the member beyond the initial period of 35.32 enlistment, induction, or call to active duty. Upon payment, 35.33 the employee must be granted allowable service credit forfull35.34calendar months or fractions of a month duringtheleave35.35 purchased periodas described in paragraph (d), clauses (1) and35.36(2), based on the salary or compensated hours used in computing36.1the payment amount. 36.2 (b) For calculating benefits under sections 353.30, 353.31, 36.3 353.32, and 353.33 for state officers and employees displaced by 36.4 the Community Corrections Act, chapter 401, and transferred into 36.5 county service under section 401.04, "allowable service" 36.6 means the combined years of allowable service as defined in 36.7 paragraph (a), clauses (1) to (6), and section 352.01, 36.8 subdivision 11. 36.9 (c) For a public employee who has prior service covered by 36.10 a local police or firefighters relief association that has 36.11 consolidated with the public employees retirement association or 36.12 to which section 353.665 applies, and who has elected the type 36.13 of benefit coverage provided by the public employees police and 36.14 fire fund either under section 353A.08 following the 36.15 consolidation or under section 353.665, subdivision 4, 36.16 "applicable service" is a period of service credited by the 36.17 local police or firefighters relief association as of the 36.18 effective date of the consolidation based on law and on bylaw 36.19 provisions governing the relief association on the date of the 36.20 initiation of the consolidation procedure. 36.21 (d)For persons who, after January 1, 2002, either first36.22become members or terminated membership under subdivision 11b,36.23and again become members, of the public employees retirement36.24plan, the public employees police and fire plan under this36.25chapter, or the local government correctional employee36.26retirement plan under chapter 353E, whichever applies,36.27"allowable service" means credit for compensated hours from36.28which deductions are made, or for which payments are made in36.29lieu of salary deductions as provided under this subdivision,36.30and which are deposited and credited in the fund as provided in36.31section 353.27, determined as follows:36.32(1) one month of allowable service credit for each month36.33during which the employee has received salary for 80 or more36.34compensated hours; or36.35(2) a fraction of one month of allowable service for each36.36month for which the employee has received salary for less than37.180 compensated hours equal to the percentage relationship that37.2the number of compensated hours bear to 80 hours.37.3(e) Elected officials and other public employees who are37.4compensated solely on an annual basis shall be granted a full37.5year of credit for each year for which compensation is earned.37.6(f) Allowable service that is determined and credited on a37.7fractional basis must be used only in calculating the amount of37.8benefits payable. In determining the length of service required37.9for vesting, a member shall be granted a month of service credit37.10for each month in which the member received compensation from37.11which employee contributions were deducted. For periods of37.12part-time service that are duplicated service credit, section37.13356.30, subdivision 1, paragraphs (g) and (h), govern.37.14(g)No member shall receive more than 12 months of 37.15 allowable service credit in a year either for vesting purposes 37.16 or for benefit calculation purposes. 37.17(h)(e) "Allowable service" also means a period purchased 37.18 under section 356.555. 37.19 Sec. 5. Minnesota Statutes 2000, section 353.01, is 37.20 amended by adding a subdivision to read: 37.21 Subd. 40. [REDUCED SALARY DURING PERIOD OF WORKERS' 37.22 COMPENSATION.] (a) A member who is receiving temporary workers' 37.23 compensation payments related to the member's service to the 37.24 public employer and who either is receiving a reduced salary 37.25 from the employer during that period or is receiving no salary 37.26 from the employer during that period is entitled to receive 37.27 allowable service and salary credit for the period of time that 37.28 the member is receiving the workers' compensation payments upon 37.29 making the payments specified in this subdivision. 37.30 (b) The differential salary amount is the difference 37.31 between the average rate of salary received by the member, if 37.32 any, during the period of time that the member is collecting 37.33 temporary workers' compensation payments and the average rate of 37.34 salary of the member on which contributions to the applicable 37.35 plan were made during the period of the last six months of 37.36 covered employment occurring immediately before beginning to 38.1 collect the temporary workers' compensation payments, applied to 38.2 the member's normal employment period, measured in hours or 38.3 otherwise, as applicable. 38.4 (c) To receive eligible service credit, the member shall 38.5 pay an amount equal to the applicable employee contribution rate 38.6 under section 353.27, subdivision 2; 353.65, subdivision 2; or 38.7 353E.03, subdivision 1, as applicable, multiplied by the 38.8 differential salary amount; plus an employer equivalent payment 38.9 equal to the applicable employer contribution rate in section 38.10 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, 38.11 subdivision 2, as applicable, multiplied by the differential 38.12 salary amount; plus, if applicable, an equivalent employer 38.13 additional amount equal to the additional employer contribution 38.14 rate in section 353.27, subdivision 3a, multiplied by the 38.15 differential salary amount. 38.16 (d) The employer may, by appropriate action of its 38.17 governing body and documented in its official records, pay the 38.18 employer equivalent contributions and, as applicable, the 38.19 equivalent employer additional contributions on behalf of the 38.20 member. 38.21 (e) Payment under this subdivision must include interest on 38.22 the contribution amount or amounts, whichever applies at an 8.5 38.23 percent annual rate prorated for applicable months from the date 38.24 on which the temporary workers' compensation payments terminate 38.25 to the date on which the payment or payments are received by the 38.26 executive director. Payment under this subdivision must be 38.27 completed within one year after the termination of the temporary 38.28 workers' compensation payments to the member, or within 20 days 38.29 after termination of public service under subdivision 11a, 38.30 whichever is earlier. 38.31 Sec. 6. Minnesota Statutes 2001 Supplement, section 38.32 353.27, subdivision 4, is amended to read: 38.33 Subd. 4. [EMPLOYER REPORTING REQUIREMENTS; CONTRIBUTIONS; 38.34 MEMBER STATUS.] (a) A representative authorized by the head of 38.35 each department shall deduct employee contributions from the 38.36 salary of each employee who qualifies for membership under this 39.1 chapter and remit payment in a manner prescribed by the 39.2 executive director for the aggregate amount of the employee 39.3 contributions, the employer contributions and the additional 39.4 employer contributions to be received within 14 calendar days. 39.5 The head of each department or the person's designee shall for 39.6 each pay period submit to the association a salary deduction 39.7 report in the format prescribed by the executive director. Data 39.8 required to be submitted as part of salary deduction reporting 39.9 must include, but are not limited to: 39.10 (1) the legal names and social security numbers of 39.11 employees who are members; 39.12 (2) the amount of each employee's salary deduction; 39.13 (3) the amount of salary from which each deduction was 39.14 made; 39.15 (4) the beginning and ending dates of the payroll period 39.16 covered and the date of actual payment; and 39.17 (5) adjustments or corrections covering past pay periods;39.18and39.19(6) the number of compensated hours of each employee during39.20the payroll period. 39.21 (b) Employers must furnish the data required for enrollment 39.22 for each new employee who qualifies for membership in the format 39.23 prescribed by the executive director. The required enrollment 39.24 data on new employees must be submitted to the association prior 39.25 to or concurrent with the submission of the initial employee 39.26 salary deduction. The employer shall also report to the 39.27 association all member employment status changes, such as leaves 39.28 of absence, terminations, and death, and shall report the 39.29 effective dates of those changes, on an ongoing basis for the 39.30 payroll cycle in which they occur. The employer shall furnish 39.31 data, forms, and reports as may be required by the executive 39.32 director for proper administration of the retirement system. 39.33 Before implementing new or different computerized reporting 39.34 requirements, the executive director shall give appropriate 39.35 advance notice to governmental subdivisions to allow time for 39.36 system modifications. 40.1 (c) Notwithstanding paragraph (a), the association may 40.2 provide for less frequent reporting and payments for small 40.3 employers. 40.4 Sec. 7. Minnesota Statutes 2001 Supplement, section 40.5 353.27, subdivision 11, is amended to read: 40.6 Subd. 11. [EMPLOYERS; REQUIRED TO FURNISH REQUESTED 40.7 INFORMATION.] All governmental subdivisions shall furnish 40.8 promptly such other information relative to the employment 40.9 status of all employees or former employees, including but not 40.10 limited to payroll abstracts pertaining to all past and present 40.11 employees, as may be requested by the association or its 40.12 executive director, including schedules of salaries applicable 40.13 to various categories of employment, and the number of actual or40.14estimated compensated hours for employees. In the event payroll 40.15 abstract records have been lost or destroyed, for whatever 40.16 reason or in whatever manner, so that such schedules of salaries 40.17 cannot be furnished therefrom, the employing governmental 40.18 subdivision, in lieu thereof, shall furnish to the association 40.19 an estimate of the earnings of any employee or former employee 40.20 for any period as may be requested by the association or its 40.21 executive director. Should the association receive such 40.22 schedules of estimated earnings, the executive director is 40.23 hereby authorized to use the same as a basis for making whatever 40.24 computations might be necessary for determining obligations of 40.25 the employee and employer to the retirement fund. If estimates 40.26 are not furnished by the employer pursuant to the request of the 40.27 association or its executive director, the association may 40.28 estimate the obligations of the employee and employer to the 40.29 retirement fund based upon such records as are in its 40.30 possession. Where payroll abstracts have been lost or 40.31 destroyed, the governmental agency need not furnish any 40.32 information pertaining to employment prior to July 1, 1963. The 40.33 association shall make no estimate of any obligation of any 40.34 employee, former employee, or employer covering employment prior 40.35 to July 1, 1963. 40.36 Sec. 8. Minnesota Statutes 2000, section 353.64, 41.1 subdivision 7a, is amended to read: 41.2 Subd. 7a. [PENSION COVERAGE FOR CERTAIN METROPOLITAN 41.3 TRANSIT POLICE OFFICERS.] A person who is employed as a 41.4full-timepolice officer on or after the first day of the first 41.5 payroll period after July 1, 1993, by the metropolitan council 41.6 and who is not eligible for coverage under the agreement with 41.7 the Secretary of the federal Department of Health and Human 41.8 Services making the provisions of the federal Old Age, 41.9 Survivors, and Disability Insurance Act because the person's 41.10 position is excluded from application under United States Code, 41.11 sections 418(d)(5)(A) and 418(d)(8)(D), and under section 41.12 355.07, is a member of the public employees police and fire fund 41.13 and is considered to be a police officer within the meaning of 41.14 this section. The metropolitan council shall deduct the 41.15 employee contribution from the salary of eachfull-timepolice 41.16 officer as required by section 353.65, subdivision 2, shall make 41.17 the employer contribution for eachfull-timepolice officer as 41.18 required by section 353.65, subdivision 3, and shall meet the 41.19 employer recording and reporting requirements in section 353.65, 41.20 subdivision 4. 41.21 Sec. 9. [REPEALER.] 41.22 Minnesota Statutes 2001 Supplement, section 353.01, 41.23 subdivision 39, is repealed. 41.24 Sec. 10. [APPLICATION.] 41.25 Section 8 applies in the counties of Anoka, Carver, Dakota, 41.26 Hennepin, Ramsey, Scott, and Washington. 41.27 Sec. 11. [EFFECTIVE DATE.] 41.28 (a) Except as provided in paragraph (b), sections 1, 3, 4, 41.29 6, 7, and 9 are effective retroactively from January 1, 2002. 41.30 (b) The amendment to Minnesota Statutes, section 353.01, 41.31 subdivision 2b, clause (12), in section 2, is effective on the 41.32 day after the date on which the governing body of Hennepin 41.33 county and the chief clerical officer of the county complete in 41.34 a timely manner their compliance with Minnesota Statutes, 41.35 section 645.021, subdivisions 2 and 3. 41.36 (c) Section 5 is effective on the day following final 42.1 enactment. 42.2 (d) Section 8 is effective July 1, 2002, and applies to 42.3 salaries earned by part-time metropolitan transit police 42.4 officers after June 30, 2002. 42.5 ARTICLE 3 42.6 PERA LOCAL GOVERNMENT CORRECTIONAL 42.7 RETIREMENT PLAN MODIFICATIONS 42.8 Section 1. Minnesota Statutes 2000, section 353E.02, 42.9 subdivision 1, is amended to read: 42.10 Subdivision 1. [RETIREMENT COVERAGE.]Local government42.11correctional service employees areThe members of the local 42.12 government correctional service retirement plan established by 42.13 this chapter are: 42.14 (1) local government correctional service employees as 42.15 defined in subdivision 2; and 42.16 (2) medical center protection officers as defined in 42.17 subdivision 2a. 42.18 Sec. 2. Minnesota Statutes 2000, section 353E.02, is 42.19 amended by adding a subdivision to read: 42.20 Subd. 2a. [MEDICAL CENTER PROTECTION OFFICER.] (a) A 42.21 medical center protection officer, for purposes of subdivision 42.22 1, is a person whom the employer certifies: 42.23 (1) is employed by the Hennepin county medical center as a 42.24 protection officer; 42.25 (2) is directly responsible for the direct security of the 42.26 medical center; 42.27 (3) is expected to respond to any incidents within the 42.28 medical center as part of the person's regular employment duties 42.29 and is trained to do so; and 42.30 (4) is a "public employee" as defined in section 353.01, 42.31 but is not a member of the public employees police and fire plan. 42.32 (b) The certification required under paragraph (a) must be 42.33 made in writing on a form prescribed by the executive director 42.34 of the public employees retirement association. 42.35 Sec. 3. Minnesota Statutes 2000, section 353E.03, is 42.36 amended to read: 43.1 353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.] 43.2 Subdivision 1. [MEMBER CONTRIBUTIONS.] A member of the 43.3 local government correctional serviceemployeeretirement plan 43.4 shall make an employee contribution in an amount equal to 6.01 43.5 percent of salary. 43.6 Subd. 2. [EMPLOYER CONTRIBUTIONS.] The employer shall 43.7 contribute for a member of the local government correctional 43.8 serviceemployeeretirement plan an amount equal to 9.02 percent 43.9 of salary. 43.10 Sec. 4. Laws 2000, chapter 461, article 10, section 3, as 43.11 amended by Laws 2001, First Special Session chapter 10, article 43.12 3, section 28, is amended to read: 43.13 Sec. 3. [EFFECTIVE DATE.] 43.14 Section 1 is effective on the day following final enactment. 43.15Section 2 is effective on the first day of the first full pay43.16period beginning after January 1, 2003.43.17 Sec. 5. [REPEALER.] 43.18 Laws 2000, chapter 461, article 10, section 2, is repealed. 43.19 Sec. 6. [EFFECTIVE DATE.] 43.20 (a) Sections 1, 2, and 3 are effective on July 1, 2002. 43.21 (b) Section 4 is effective on the day following final 43.22 enactment. 43.23 (c) Section 5 is effective on August 1, 2002. 43.24 ARTICLE 4 43.25 PENSION COVERAGE FOR 43.26 PRIVATIZED PUBLIC HOSPITALS 43.27 Section 1. Minnesota Statutes 2000, section 353F.02, 43.28 subdivision 4, is amended to read: 43.29 Subd. 4. [MEDICAL FACILITY.] "Medical facility" means: 43.30 (1) the Glencoe area health center; 43.31 (2) the Luverne public hospital;and43.32 (3) the Waconia-Ridgeview medical center.; and 43.33 (4) the Kanabec hospital. 43.34 Sec. 2. [EFFECTIVE DATE.] 43.35 Section 1 is effective upon the latter of: 43.36 (1) the day after the governing body of Kanabec county and 44.1 its chief clerical officer timely complete their compliance with 44.2 Minnesota Statutes, section 645.021, subdivisions 2 and 3; and 44.3 (2) the first day of the month next following certification 44.4 by the executive director of the public employees retirement 44.5 association that the actuarial accrued liability of the special 44.6 benefit coverage proposed for extension to the privatized 44.7 Kanabec hospital employees under section 1 does not exceed the 44.8 actuarial gain otherwise to be accrued by the public employees 44.9 retirement association, as calculated by the consulting actuary 44.10 retained by the legislative commission on pensions and 44.11 retirement. The cost of the actuarial calculations must be 44.12 borne by the Kanabec hospital. 44.13 ARTICLE 5 44.14 CLOSED CHARTER SCHOOL 44.15 UNPAID RETIREMENT CONTRIBUTIONS 44.16 Section 1. Minnesota Statutes 2001 Supplement, section 44.17 354.05, subdivision 2, is amended to read: 44.18 Subd. 2. [TEACHER.] (a) "Teacher" means: 44.19 (1) a person who renders service as a teacher, supervisor, 44.20 principal, superintendent, librarian, nurse, counselor, social 44.21 worker, therapist, or psychologist inthea publicschools44.22 school of the state located outside of the corporate limits of 44.23the citiesa city of the first class, or in any charter school, 44.24 irrespective of the location of the school, or in any 44.25 charitable, penal, or correctional institutions of a 44.26 governmental subdivision, or who is engaged in educational 44.27 administration in connection with the state public school 44.28 system, but excluding the University of Minnesota, whether the 44.29 position be a public office or an employment, not including 44.30 members or officers of any general governing or managing board 44.31 or body; 44.32 (2) an employee of the teachers retirement association; 44.33 (3) a person who renders teaching service on a part-time 44.34 basis and who also renders other services for a single employing 44.35 unit. A person whose teaching service comprises at least 50 44.36 percent of the combined employment salary is a member of the 45.1 association for all services with the single employing unit. If 45.2 the person's teaching service comprises less than 50 percent of 45.3 the combined employment salary, the executive director must 45.4 determine whether all or none of the combined service is covered 45.5 by the association; or 45.6 (4) a person who is not covered by the plans established 45.7 under chapter 352D, 354A, or 354B and who is employed by the 45.8 board of trustees of the Minnesota state colleges and 45.9 universities system in an unclassified position as: 45.10 (i) a president, vice-president, or dean; 45.11 (ii) a manager or a professional in an academic or an 45.12 academic support program other than specified in item (i); 45.13 (iii) an administrative or a service support faculty 45.14 position; or 45.15 (iv) a teacher or a research assistant. 45.16 (b)Teacher"Teacher" does not mean: 45.17 (1) a person who works for a school or institution as an 45.18 independent contractor as defined by the Internal Revenue 45.19 Service; 45.20 (2) a person employed in subsidized on-the-job training, 45.21 work experience or public service employment as an enrollee 45.22 under the federal Comprehensive Employment and Training Act from 45.23 and after March 30, 1978, unless the person has, as of the later 45.24 of March 30, 1978, or the date of employment, sufficient service 45.25 credit in the retirement association to meet the minimum vesting 45.26 requirements for a deferred retirement annuity, or the employer 45.27 agrees in writing on forms prescribed by the executive director 45.28 to make the required employer contributions, including any 45.29 employer additional contributions, on account of that person 45.30 from revenue sources other than funds provided under the federal 45.31 Comprehensive Training and Employment Act, or the person agrees 45.32 in writing on forms prescribed by the executive director to make 45.33 the required employer contribution in addition to the required 45.34 employee contribution; 45.35 (3) a person holding a part-time adult supplementary 45.36 technical college license who renders part-time teaching service 46.1 or a customized trainer as defined by the Minnesota state 46.2 colleges and universities system in a technical college if (i) 46.3 the service is incidental to the regular nonteaching occupation 46.4 of the person; and (ii) the applicable technical college 46.5 stipulates annually in advance that the part-time teaching 46.6 service or customized training service will not exceed 300 hours 46.7 in a fiscal year and retains the stipulation in its records; and 46.8 (iii) the part-time teaching service or customized training 46.9 service actually does not exceed 300 hours in a fiscal year; or 46.10 (4) a person exempt from licensure under section 122A.30. 46.11 Sec. 2. Minnesota Statutes 2000, section 354A.011, 46.12 subdivision 27, is amended to read: 46.13 Subd. 27. [TEACHER.] (a) "Teacher" means any person who 46.14 renders serviceinfor a public school district, other than a 46.15 charter school, located in the corporate limits of one of the 46.16 cities of the first class which was so classified on January 1, 46.17 1979, as any of the following: 46.18(a)(1) a full-time employee in a position for which a 46.19 valid license from the state department of children, families, 46.20 and learning is required; 46.21(b)(2) an employee of the teachers retirement fund 46.22 association located in the city of the first class unless the 46.23 employee has exercised the option pursuant to Laws 1955, chapter 46.24 10, section 1, to retain membership in the Minneapolis employees 46.25 retirement fund established pursuant to chapter 422A; 46.26(c)(3) a part-time employee in a position for which a 46.27 valid license from the state department of children, families, 46.28 and learning is required; or 46.29(d)(4) a part-time employee in a position for which a 46.30 valid license from the state department of children, families, 46.31 and learning is required who also renders other nonteaching 46.32 services for the school district, unless the board of trustees 46.33 of the teachers retirement fund association determines that the 46.34 combined employment is on the whole so substantially dissimilar 46.35 to teaching service that the serviceshallmay not be covered by 46.36 the association. 47.1 (b) The termshalldoes not mean any person who renders 47.2 service in the school district as any of the following: 47.3 (1) an independent contractor or the employee of an 47.4 independent contractor; 47.5 (2) an employee who is a full-time teacher covered by the 47.6 teachers retirement association or by another teachers 47.7 retirement fund association established pursuant to this chapter 47.8 or chapter 354; 47.9 (3) an employee exempt from licensure pursuant to section 47.10 122A.30; 47.11 (4) an employee who is a teacher in a technical college 47.12 located in a city of the first class unless the person elects 47.13 coverage by the applicable first class city teacher retirement 47.14 fund association under section 354B.21, subdivision 2;or47.15 (5) a teacher employed by a charter school, irrespective of 47.16 the location of the school; or 47.17 (6) an employee who is a part-time teacher in a technical 47.18 college in a city of the first class and who has elected 47.19 coverage by the applicable first class city teacher retirement 47.20 fund association under section 354B.21, subdivision 2, but (i) 47.21 the teaching service is incidental to the regular nonteaching 47.22 occupation of the person; (ii) the applicable technical college 47.23 stipulates annually in advance that the part-time teaching 47.24 service will not exceed 300 hours in a fiscal year; and (iii) 47.25 the part-time teaching actually does not exceed 300 hours in the 47.26 fiscal year to which the certification applies. 47.27 Sec. 3. [STATE PAYMENT OF CERTAIN UNPAID CHARTER SCHOOL 47.28 RETIREMENT CONTRIBUTIONS.] 47.29 Subdivision 1. [UNPAID CONTRIBUTIONS.] (a) The state of 47.30 Minnesota shall make any unpaid employee, employer, and employer 47.31 additional contributions to the applicable retirement 47.32 association for teaching or other service in a designated 47.33 charter school which closed before April 1, 2002, without having 47.34 paid the required contributions to the retirement association. 47.35 (b) By June 1, 2002, the chief administrative officer of 47.36 the retirement association shall certify to the commissioner of 48.1 children, families, and learning the amount of accrued 48.2 contributions, plus applicable interest, which were not paid by 48.3 each designated charter school before its closure. On July 1, 48.4 2002, the commissioner of children, families, and learning shall 48.5 pay the amounts certified from the state total building lease 48.6 aid otherwise payable under Minnesota Statutes, section 124D.11, 48.7 subdivision 4a, to the affected retirement associations. The 48.8 forecasted amount of charter school lease aid must not be 48.9 adjusted to reflect the amount remitted under this section; 48.10 rather, charter school lease aid must be prorated by the amount 48.11 remitted. The commissioner shall remit directly to the 48.12 retirement association the amounts certified under this 48.13 section. The applicable retirement association shall credit 48.14 employee contribution payments to the applicable member accounts 48.15 and shall credit to the applicable members allowable and formula 48.16 service and covered salary for the period when the teaching or 48.17 other service was actually performed in the charter school. 48.18 State payments representing unpaid employee contributions must 48.19 be considered accumulated employee or member deductions for 48.20 purposes of Minnesota Statutes, section 353.34; 354.49; or 48.21 354A.37. 48.22 Subd. 2. [COVERED RETIREMENT ASSOCIATIONS.] This section 48.23 applies to the following public retirement associations 48.24 providing retirement coverage for employees in charter schools: 48.25 (1) the teachers retirement association; 48.26 (2) the Minneapolis teachers retirement fund association; 48.27 (3) the St. Paul teachers retirement fund association; 48.28 (4) the Duluth teachers retirement fund association; and 48.29 (5) the public employees retirement association. 48.30 Subd. 3. [DESIGNATED CLOSED CHARTER SCHOOLS.] This section 48.31 applies to the Frederick Douglass charter school and any other 48.32 charter school that is determined by the commissioner of 48.33 children, families, and learning to have closed before April 1, 48.34 2002. 48.35 Sec. 4. [CONTINUING RECOVERY AUTHORITY.] 48.36 Nothing in section 3 relieves the sponsor of a closed 49.1 charter school and the operator of a closed charter school from 49.2 any financial responsibility that those parties may have to pay 49.3 unpaid employee, employer, or employer additional contributions 49.4 to the applicable public retirement plans. The commissioner of 49.5 revenue shall undertake all reasonable efforts to recover these 49.6 amounts. Any recovered amounts must be deposited in the general 49.7 fund and are appropriated to the department of children, 49.8 families, and learning to offset the payment of unpaid 49.9 contributions under section 3. 49.10 Sec. 5. [EFFECTIVE DATE.] 49.11 (a) Sections 1 and 2 are effective on July 1, 2002. 49.12 (b) Sections 3 and 4 are effective on the day following 49.13 final enactment. 49.14 ARTICLE 6 49.15 TEACHER RETIREMENT PLANS 49.16 SERVICE CREDIT PURCHASE 49.17 DEADLINE EXTENSION 49.18 Section 1. Laws 1999, chapter 222, article 16, section 16, 49.19 is amended to read: 49.20 Sec. 16. [REPEALER.] 49.21 Sections 1 to 13 are repealed on May 16,20022003. 49.22 Sec. 2. Laws 2000, chapter 461, article 12, section 20, is 49.23 amended to read: 49.24 Sec. 20. [EFFECTIVE DATE.] 49.25 (a) Sections 4, 5, and 11 to 20 are effective on the day 49.26 following final enactment. 49.27 (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 49.28 following final enactment and apply retroactively to a faculty 49.29 member of the Lake Superior College who was granted an extended 49.30 leave of absence under article 19, section 4, of the united 49.31 technical college educators master agreement for the 1999-2000 49.32 academic year prior to March 20, 2000. 49.33 (c) Sections 5, 11, and 14, paragraph (c), expire on May 49.34 16,20022003. 49.35 Sec. 3. Laws 2001, First Special Session chapter 10, 49.36 article 6, section 21, is amended to read: 50.1 Sec. 21. [EXPIRATION DATE.] 50.2 (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 50.3 18, 19, and 20 expire May 16, 2003. 50.4 (b) Sections 9 and 15 expire May 16,20022003. 50.5 Sec. 4. [EFFECTIVE DATE.] 50.6 Sections 1 to 3 are effective on the day following final 50.7 enactment. 50.8 ARTICLE 7 50.9 RECODIFICATION OF SOCIAL 50.10 SECURITY COVERAGE PROVISIONS 50.11 Section 1. Minnesota Statutes 2000, section 355.01, 50.12 subdivision 1, is amended to read: 50.13 Subdivision 1. [IN GENERAL.] For the purposes of this 50.14 chapter,as amended,each of the terms defined in this section 50.15havehas themeaningsmeaning ascribed to them herein. 50.16 Sec. 2. Minnesota Statutes 2000, section 355.01, is 50.17 amended by adding a subdivision to read: 50.18 Subd. 2a. [CONSTITUTIONAL OFFICER.] "Constitutional 50.19 officer" means a person who serves as the governor, lieutenant 50.20 governor, attorney general, secretary of state, state auditor, 50.21 or state treasurer, who is duly elected and who was sworn into 50.22 office. 50.23 Sec. 3. Minnesota Statutes 2000, section 355.01, is 50.24 amended by adding a subdivision to read: 50.25 Subd. 2b. [DULUTH TEACHER.] "Duluth teacher" means a 50.26 person employed by independent school district No. 709, Duluth, 50.27 who holds a position covered by the Duluth teachers retirement 50.28 fund association established under chapter 354A. 50.29 Sec. 4. Minnesota Statutes 2000, section 355.01, is 50.30 amended by adding a subdivision to read: 50.31 Subd. 2c. [EDUCATIONAL EMPLOYEE.] "Educational employee" 50.32 means an employee of the state of Minnesota or of a public 50.33 subdivision of the state who performs services in a position 50.34 covered by the teachers retirement association under chapter 354. 50.35 Sec. 5. Minnesota Statutes 2000, section 355.01, is 50.36 amended by adding a subdivision to read: 51.1 Subd. 2d. [EMPLOYEE.] "Employee" means a person employed 51.2 by the state of Minnesota or by a political subdivision of the 51.3 state and includes an officer of the state of Minnesota or of a 51.4 political subdivision of the state. 51.5 Sec. 6. Minnesota Statutes 2000, section 355.01, is 51.6 amended by adding a subdivision to read: 51.7 Subd. 2e. [EMPLOYEE TAX.] "Employee tax" means the tax 51.8 imposed by section 3101 of the Internal Revenue Code of 1986. 51.9 Sec. 7. Minnesota Statutes 2000, section 355.01, 51.10 subdivision 3, is amended to read: 51.11 Subd. 3. [EMPLOYMENT.]The term(a) "Employment" means any 51.12 service performed by an employee in the employ of the state, or 51.13 any political subdivision thereof, forsuchthat employer, 51.14 except: 51.15 (1) service which in the absence of an agreement entered 51.16 into under this chapter, as amended, would constitute 51.17 "employment" as defined in the Social Security act; or 51.18 (2) service which under the Social Security Actmayis not 51.19 permitted to be included in an agreement between the state and 51.20 the federal Secretary of Health, Education,andWelfareHuman 51.21 Services entered into under this chapter, as amended. 51.22 (b) Service which under the Social Security Actmayis 51.23 permitted to be included in an agreement only upon certification 51.24 by the governor in accordance with section 218(d) (3) of that 51.25 actshallmust be included in the term "employment" if and when 51.26 the governor issues, with respect tosuchthat service,athe 51.27 appropriate federal certificate to the federal Secretary of 51.28 Health, Education,andWelfareHuman Services. 51.29 Sec. 8. Minnesota Statutes 2000, section 355.01, is 51.30 amended by adding a subdivision to read: 51.31 Subd. 3a. [FEDERAL INSURANCE CONTRIBUTIONS ACT.] "Federal 51.32 Insurance Contributions Act" means subchapters A and B of 51.33 chapter 21 of the Internal Revenue Code of 1986, as amended 51.34 through December 31, 2000. 51.35 Sec. 9. Minnesota Statutes 2000, section 355.01, is 51.36 amended by adding a subdivision to read: 52.1 Subd. 3b. [GOVERNMENTAL EMPLOYER.] "Governmental employer" 52.2 means any political subdivision as defined in section 218 of the 52.3 Social Security Act. The term includes a city, county, town, 52.4 hospital district, or other body, politic and corporate, located 52.5 in Minnesota. 52.6 Sec. 10. Minnesota Statutes 2000, section 355.01, is 52.7 amended by adding a subdivision to read: 52.8 Subd. 3c. [HIGHER EDUCATION EMPLOYEE.] "Higher education 52.9 employee" means an employee of the state of Minnesota who 52.10 performs services in a Minnesota state colleges and universities 52.11 system in a position covered by the individual retirement 52.12 account plan under section 354B.21 and who remains a member of 52.13 the teachers retirement association for purposes of social 52.14 security coverage only. 52.15 Sec. 11. Minnesota Statutes 2000, section 355.01, is 52.16 amended by adding a subdivision to read: 52.17 Subd. 3d. [HOSPITAL EMPLOYEE.] "Hospital employee" means 52.18 an officer or employee of a public hospital who performs 52.19 services in a position covered by the public employees 52.20 retirement association under chapter 353. 52.21 Sec. 12. Minnesota Statutes 2000, section 355.01, is 52.22 amended by adding a subdivision to read: 52.23 Subd. 3e. [JUDGE.] "Judge" means a judge as defined in 52.24 section 490.121, subdivision 3. 52.25 Sec. 13. Minnesota Statutes 2000, section 355.01, is 52.26 amended by adding a subdivision to read: 52.27 Subd. 3f. [LEGISLATOR.] "Legislator" means a member of the 52.28 legislature who is duly elected and who was sworn into office. 52.29 Sec. 14. Minnesota Statutes 2000, section 355.01, is 52.30 amended by adding a subdivision to read: 52.31 Subd. 3g. [LOCAL GOVERNMENTAL SUBDIVISION.] "Local 52.32 governmental subdivision" means: 52.33 (1) a political subdivision as defined in section 218(b) of 52.34 the Social Security Act; 52.35 (2) an instrumentality of the state; 52.36 (3) an instrumentality of one or more of the political 53.1 subdivisions of the state, including the league of Minnesota 53.2 cities; 53.3 (4) an instrumentality of the state and one or more of its 53.4 political subdivisions; 53.5 (5) a governmental subdivision as defined in section 53.6 353.01, subdivision 6; and 53.7 (6) any instrumentality established under a joint powers 53.8 agreement under section 471.59 wherein the instrumentality is 53.9 responsible for the employment and the payment of the salaries 53.10 of the employees of the instrumentality. 53.11 Sec. 15. Minnesota Statutes 2000, section 355.01, is 53.12 amended by adding a subdivision to read: 53.13 Subd. 3h. [MINNEAPOLIS TEACHER.] "Minneapolis teacher" 53.14 means a person employed by special school district No. 1, 53.15 Minneapolis, who holds a position covered by the Minneapolis 53.16 teachers retirement fund association established under chapter 53.17 354A. 53.18 Sec. 16. Minnesota Statutes 2000, section 355.01, is 53.19 amended by adding a subdivision to read: 53.20 Subd. 3i. [POLITICAL SUBDIVISION.] "Political subdivision" 53.21 means any political subdivision as defined in section 218(b) of 53.22 the Social Security Act, and includes any instrumentality of the 53.23 state, any instrumentality of one or more of its political 53.24 subdivisions, including the league of Minnesota municipalities, 53.25 any instrumentality of the state and one or more of its 53.26 political subdivisions, and an instrumentality established under 53.27 a joint powers agreement under section 471.59, wherein the 53.28 instrumentality is responsible for the employment and payment of 53.29 the salaries of employees of the instrumentality. 53.30 Sec. 17. Minnesota Statutes 2000, section 355.01, is 53.31 amended by adding a subdivision to read: 53.32 Subd. 3j. [PUBLIC EMPLOYEE.] "Public employee" means an 53.33 officer or an employee of a local governmental subdivision of 53.34 the state who performs services in a position covered by the 53.35 public employees retirement association established under 53.36 chapter 353. 54.1 Sec. 18. Minnesota Statutes 2000, section 355.01, is 54.2 amended by adding a subdivision to read: 54.3 Subd. 3k. [PUBLIC HOSPITAL.] "Public hospital" means a 54.4 hospital that is owned or operated by a governmental employer or 54.5 a combination of governmental employers, or a hospital that is 54.6 an integral part of a governmental employer or of a combination 54.7 of governmental employers. 54.8 Sec. 19. Minnesota Statutes 2000, section 355.01, is 54.9 amended by adding a subdivision to read: 54.10 Subd. 3l. [ST. PAUL TEACHER.] "St. Paul teacher" means a 54.11 person employed by independent school district No. 625, St. 54.12 Paul, who holds a position covered by the St. Paul teachers 54.13 retirement fund association established under chapter 354A. 54.14 Sec. 20. Minnesota Statutes 2000, section 355.01, 54.15 subdivision 6, is amended to read: 54.16 Subd. 6. [SECRETARY OF HEALTH AND HUMAN SERVICES.]The54.17term"Secretary of Health, Education,andWelfareHuman Services" 54.18 means the secretary of the federal Department of Health and 54.19 Human Services and includes any individual to whom the Secretary 54.20 of Health, Education,andWelfareHuman Services has delegated 54.21anyfunctions under the Social Security Act with respect to 54.22 coverageunder such actof employees of states and their 54.23 political subdivisions. 54.24 Sec. 21. Minnesota Statutes 2000, section 355.01, 54.25 subdivision 8, is amended to read: 54.26 Subd. 8. [SOCIAL SECURITY ACT.]The term"Social Security 54.27 Act" means the Act of Congress approved August 14, 1935, chapter 54.28 531, Statutes at Large, volume 49, page 620, officially cited as 54.29 the "Social Security Act," assuch act has been and may from54.30time to time beamended (including the relevant regulations and 54.31 requirementsissued pursuant thereto). 54.32 Sec. 22. Minnesota Statutes 2000, section 355.01, is 54.33 amended by adding a subdivision to read: 54.34 Subd. 11. [SPECIAL AUTHORITY OR DISTRICT.] "Special 54.35 authority or district" means a municipal housing and 54.36 redevelopment authority organized under sections 469.001 to 55.1 469.047, a soil and water conservation district organized under 55.2 chapter 103C, a port authority organized under sections 469.048 55.3 to 469.068, an economic development authority organized under 55.4 sections 469.090 to 469.108, or a hospital district organized or 55.5 reorganized under sections 447.31 to 447.37. 55.6 Sec. 23. Minnesota Statutes 2000, section 355.01, is 55.7 amended by adding a subdivision to read: 55.8 Subd. 12. [SPECIAL AUTHORITY OR DISTRICT 55.9 EMPLOYEE.] "Special authority or district employee" means an 55.10 employee, other than an elected official, of a municipal housing 55.11 and redevelopment authority organized under sections 469.001 to 55.12 469.047, of a soil and water conservation district organized 55.13 under chapter 103C, of a port authority organized under sections 55.14 469.048 to 469.068, of an economic development authority 55.15 organized under sections 469.090 to 469.108, or of a hospital 55.16 district organized or reorganized under sections 447.31 to 55.17 447.37. 55.18 Sec. 24. Minnesota Statutes 2000, section 355.01, is 55.19 amended by adding a subdivision to read: 55.20 Subd. 13. [STATE AGENCY.] "State agency" means the 55.21 commissioner of employee relations. 55.22 Sec. 25. Minnesota Statutes 2000, section 355.01, is 55.23 amended by adding a subdivision to read: 55.24 Subd. 14. [STATE EMPLOYEE.] "State employee" means an 55.25 employee of the state of Minnesota or of a political subdivision 55.26 who performs services in a position covered by the general state 55.27 employees retirement plan of the Minnesota state retirement 55.28 system governed by chapter 352, except any position for which 55.29 the compensation is on a fee basis. 55.30 Sec. 26. Minnesota Statutes 2000, section 355.01, is 55.31 amended by adding a subdivision to read: 55.32 Subd. 15. [WAGES.] "Wages" means all remuneration for 55.33 employment, including the cash value of all remuneration paid in 55.34 any medium other than cash. The term does not include that part 55.35 of the remuneration which, even if it were for employment within 55.36 the meaning of the Federal Insurance Contributions Act, would 56.1 not constitute wages within the meaning of that act. 56.2 Sec. 27. Minnesota Statutes 2000, section 355.02, is 56.3 amended to read: 56.4 355.02 [AGREEMENTS.] 56.5 Subdivision 1. [GENERAL AUTHORITY.] (a) The state agency, 56.6 with the approval of the governor, is hereby authorized to enter 56.7 into an agreement on behalf of the state with the federal 56.8 Secretary of Health, Education,andWelfareHuman Services, 56.9 consistent with the terms and provisions of this chapter, as56.10amended, for the purpose of extending the benefits of the 56.11 federal old ageand, survivors, and disability insurance system 56.12 to employees of the state or any political subdivision thereof 56.13 with respect to services specified insuchthe agreement which 56.14 constitute "employment," whenever so specifically authorized by 56.15 the statutory provisions of this state pertaining to any 56.16 coverage group of such employees to which the agreement may 56.17 become applicable under the Social Security Act. 56.18Pursuant to such(b) Under this specific authorization the 56.19 agreement may containsuchthose provisions relating to 56.20 coverage, benefits, contributions, effective date, modification 56.21 and termination of the agreement, administration, and other 56.22 appropriate provisions as the state agency and the federal 56.23 Secretary of Health, Education,andWelfareHuman Services shall 56.24 agree upon, but, except as may be otherwise required by or under 56.25 the Social Security Act as to the services to be covered, such 56.26 agreementshallmust provide in effect that: 56.27 (1) benefits will be provided for employees whose services 56.28 are covered by the agreement (and their dependents and 56.29 survivors) on the same basis as thoughsuchthose services 56.30 constituted employment within the meaning of title II of the 56.31 Social Security Act; 56.32 (2) the state or other employer will pay to the federal 56.33 Secretary of the Treasury, at such time or times as may be 56.34 prescribed under the Social Security Act, contributions with 56.35 respect to wages, equal to the sum of the taxes which would be 56.36 imposed by the Federal Insurance Contributions Act if the 57.1 services covered by the agreement constituted employment within 57.2 the meaning of that act; 57.3 (3)Suchthe agreementshall beis effective with respect 57.4 to services in employment covered by the agreement performed 57.5 after a date specified thereinbut in no event may it be57.6effective with respect to any such services performed prior to57.7the first day of the calendar year in which such agreement is57.8entered into or in which the modification of the agreement57.9making it applicable to such services, is entered into except57.10that an agreement or modification entered into prior to January57.111, 1960, may be effective with respect to services performed57.12after December 31, 1955, or after a later date specified in such57.13agreement or modification; and 57.14 (4) all services which constitute employment and are 57.15 performed in the employ of the state or any of its political 57.16 subdivisions by employees thereof, may be covered bysuchthe 57.17 agreement whenever so specifically authorized by the statutory 57.18 provisions of this state pertaining to any coverage group of 57.19 such employees to which the agreement may become applicable 57.20 under the Social Security Act. 57.21 Subd. 2. [INTERSTATE INSTRUMENTALITY.] (a) Any 57.22 instrumentality jointly created by this state and any other 57.23 state or states isherebyauthorized, upon the granting of like 57.24 authority bysuchthe other state or states, to: 57.25 (1)toenter into an agreement with the federal Secretary 57.26 of Health, Education,andWelfareHuman Services whereby the 57.27 benefits of the federal old ageand, survivors, and disability 57.28 insurance systemshall beare extended to employees ofsuchthe 57.29 instrumentality,; 57.30 (2)torequire its employees to pay (and for that purpose 57.31 to deduct from their wages) contributions equal to the amounts 57.32 which they would be required to pay under section 355.03, 57.33 subdivision 1, if they were covered by an agreement made 57.34pursuant tounder subdivision 1,; and 57.35 (3)tomake payments to the federal Secretary of the 57.36 Treasury in accordance withsuchthat agreement, including 58.1 payments from its own funds, and otherwise to comply withsuch58.2 those agreements.Such58.3 (b) The agreementsshallmust, to the extent practicable, 58.4 be consistent with the terms and provisions of subdivision 1 and 58.5 other provisions of this chapter, as amended. 58.6 Subd. 3. [GROUPS COVERED BY SOCIAL SECURITY.] The 58.7 following groups must be covered by an agreement or a 58.8 modification to an agreement between the state agency and the 58.9 federal Secretary of Health and Human Services: 58.10 (1) constitutional officers; 58.11 (2) Duluth teachers; 58.12 (3) educational employees; 58.13 (4) higher education employees; 58.14 (5) hospital employees; 58.15 (6) judges; 58.16 (7) legislators; 58.17 (8) Minneapolis teachers; 58.18 (9) public employees; 58.19 (10) St. Paul teachers; 58.20 (11) special authority or district employees; and 58.21 (12) state employees. 58.22 Sec. 28. Minnesota Statutes 2000, section 355.03, is 58.23 amended to read: 58.24 355.03 [EMPLOYEES AND EMPLOYERS, CONTRIBUTIONS.] 58.25 Subdivision 1. [EMPLOYEE CONTRIBUTION AMOUNT.] Every 58.26 employee of the state, or of any of its political subdivisions, 58.27 whose services are covered by the agreement entered into under 58.28 section 355.02shall be required tomust pay for the period 58.29 ofsuchthe coverage,into the contribution fund established by58.30section 355.04,contributions,with respect to wages, equal to 58.31 the amount of the employee's tax which would be imposed by the 58.32 Federal Insurance Contributions Act ifsuchthose services 58.33 constituted employment within the meaning of that act. 58.34SuchThis liabilityshall arisearises in consideration of the 58.35 employee's retention in the service of the state, or any of its 58.36 political subdivisions, or the employee's entry uponsuchthat 59.1 service, after the enactment of this chapter, as amended. 59.2 Subd. 2. [EMPLOYEE DEDUCTION.] The contribution imposed by 59.3 this sectionshallmust be collected by the covered employee's 59.4 employer by deducting the amount of the contribution from wages 59.5 as and when paid, but. The failure to make such deductionshall59.6 does not relieve the employee from liability for such 59.7 contribution. 59.8 Subd. 2a. [EMPLOYER CONTRIBUTION.] (a) Employer 59.9 contributions that are required under the agreement must be paid 59.10 by the applicable employing unit. 59.11 (b) Employer contributions on behalf of St. Paul teachers, 59.12 Duluth teachers, Minneapolis teachers, or education employees 59.13 may be paid from normal school operating funds. Employer 59.14 contributions on behalf of state employees must be paid by the 59.15 applicable department or agency from its appropriation or other 59.16 revenue, in the same proportion as salaries are paid, and must 59.17 be charged as an administrative cost of the state governmental 59.18 unit. 59.19 (c) Employing units may pay the employer contribution from 59.20 taxes collected or from other governmental revenue. An 59.21 employing unit may include in its tax levy the amount necessary 59.22 to pay its social security obligations. If the taxes authorized 59.23 to be levied cause the total levy amount to exceed any 59.24 limitation on the power of the employing unit to levy taxes, the 59.25 unit may still levy the necessary amount. The employing unit, 59.26 in the event of a deficit, may issue debt obligations, payable 59.27 in not more than two years, in an amount which may cause its 59.28 indebtedness to exceed any limitation without holding an 59.29 election and may levy taxes to amortize the indebtedness. The 59.30 authorized social security expenditures must not be included in 59.31 computing the cost of government for purposes of any home rule 59.32 charter or other charter. 59.33 (d) If the required employer contribution for social 59.34 security is increased and, as a result of that increase, there 59.35 is insufficient money available to a state governmental unit, 59.36 there is appropriated to the state department or agency from the 60.1 general fund the amount required to meet the deficiency, based 60.2 on certifications from the commissioner of employee relations to 60.3 the commissioner of finance. The transfer of the appropriated 60.4 amount may only occur after the commissioner of finance notifies 60.5 the chair and ranking minority member of the house committee on 60.6 ways and means and the chair and ranking minority member of the 60.7 senate finance committee of the amount to be transferred. 60.8 (e) For members of the general state employees retirement 60.9 plan of the Minnesota state retirement system who are employed 60.10 by the state horticultural society, the department of Minnesota 60.11 for the disabled American veterans organization, the department 60.12 of Minnesota of the veterans of foreign wars organization, the 60.13 Minnesota crop improvement association, the Minnesota historical 60.14 society, the armory building commission, and the 60.15 Minnesota-Wisconsin-Minneapolis-St. Paul survival plan project, 60.16 the applicable employing unit must pay the employer contribution 60.17 from any revenue source that it has. 60.18 Subd. 3. [ADJUSTMENTS; REFUNDS.] If more or less than the 60.19 correct amount of the contribution imposed by this section is 60.20 paid or deducted with respect to any remuneration, proper 60.21 adjustments, or refund if adjustment is impracticable,shall60.22 must be made, without interest, in such manner and at such times 60.23 as the state agencyshall prescribeprescribes. 60.24 Subd. 4. [DELINQUENT PAYMENTS.] Delinquent payments that 60.25 are due under this chapter, with compound interest at the rate 60.26 of six percent per annum, may be recovered by legal action in a 60.27 court of competent jurisdiction against an employing unit that 60.28 is liable for the amount. The state agency may request that the 60.29 delinquent payment and interest amount be deducted from any 60.30 other money that is payable to the applicable employing unit by 60.31 any department or agency of the state. An action for the 60.32 recovery of delinquent payments is not subject to any statutory 60.33 provision that would otherwise limit the time within which an 60.34 action may be commenced. 60.35 Sec. 29. [355.035] [REIMBURSEMENT BY EMPLOYING UNITS.] 60.36 An employing unit which employs a member of a covered group 61.1 must reimburse the state agency for its pro rata share of the 61.2 cost of the administration of the agency with respect to social 61.3 security coverage in accordance with the rules of the state 61.4 agency pertaining to this reimbursement. 61.5 Sec. 30. [355.036] [REPORTS.] 61.6 An employing unit which employs a member of a covered group 61.7 must make any reports in the form required and must include the 61.8 information that the state agency requires. An employing unit 61.9 also must comply with the reporting requirements that the state 61.10 agency or the federal Secretary of Health and Human Services may 61.11 from time to time determine are necessary to ensure the 61.12 correctness and verification of relevant information. 61.13 Sec. 31. [355.037] [PROCEEDS OF SPECIAL BENEFIT TAXES.] 61.14 The proceeds of the special benefit taxes that are 61.15 authorized to be levied for redevelopment purposes under section 61.16 469.033, subdivision 6, may be used to defray all or part of the 61.17 costs incurred by any housing and redevelopment authority under 61.18 this chapter. 61.19 Sec. 32. Minnesota Statutes 2000, section 355.05, is 61.20 amended to read: 61.21 355.05 [RULES.] 61.22 The state agencyshall make and publish suchmay promulgate 61.23 those rules, not inconsistent with the provisions of this 61.24 chapter, as amended, as it finds necessary or appropriate to the 61.25 efficient administration of the functions with which it is 61.26 charged under this chapter, as amended. 61.27 Sec. 33. Minnesota Statutes 2000, section 355.07, is 61.28 amended to read: 61.29 355.07 [DECLARATION OF POLICY.] 61.30 (a) In order to extend to employees of the stateand, its 61.31 political subdivisions, and its other governmental employers, 61.32 and to the dependents and survivors ofsuchthe employees of 61.33 those employing units, the basic protection accorded to others 61.34 by the old ageand, survivors, and disability insurance system 61.35 embodied in the Social Security Act, it is hereby declared to be 61.36 the policy of the legislature, subject to the limitations of 62.1 this chapter, that these steps are taken to provide protection 62.2 to employees of the state and its political subdivisions on as 62.3 broad a basis as may be authorized by the legislature and is 62.4 permitted under the Social Security Act. 62.5 (b) It is also the policy of the legislature that the 62.6 protection afforded employees in positions covered by a 62.7 retirement system on the date an agreement under this chapter is 62.8 made applicable to service performed in those positions, or 62.9 receiving periodic benefits under the retirement system at that 62.10 time, will not be impaired as a result of making the agreement 62.11 so applicable or as a result of legislative enactment in 62.12 anticipation thereof when combined with the benefits accorded 62.13 the employee by the Social Security Act. 62.14 (c) To this end, the agreement referred to in section 62.15 355.02shallmust not be made applicable to any service 62.16 performed in any position covered by a retirement system unless 62.17 a referendum is first held by secret ballot in which a majority 62.18 of "eligible employees," as defined in section 218(d) (3) of the 62.19 Social Security Act, vote in favor thereof, or unless a 62.20 retirement system is divided in two divisions or parts, one of 62.21 which is composed of positions of members of the system who 62.22 desire coverage and one of which is composed of positions of 62.23 members of the system who do not desire coverage under section 62.24 218(d) (3) of the Social Security Act, in accordance with 62.25 subsections (6) and (7) thereof. 62.26 (d) Nothing in any provision of this chaptershall62.27authorizeauthorizes the extension of the insurance system 62.28 established by this chapter, as amended, to service in any 62.29 police officer's or firefighter's position or in any position 62.30 covered by a retirement system applicable exclusively to 62.31 positions in one or more law enforcement or fire fighting units, 62.32 agencies or departments. 62.33 Sec. 34. Minnesota Statutes 2000, section 355.08, is 62.34 amended to read: 62.35 355.08 [APPLICATION OF SOCIAL SECURITY ACT.] 62.36 The provisions of the Social Security Act, and all acts63.1amendatory thereof, shallgovern relative to employees of the 63.2 stateand, its political subdivisions, and its other 63.3 governmental employers subject toMinnesota Statutes,this 63.4 chapter355, as amended, anything insaidthis chapter to the 63.5 contrary notwithstanding. 63.6 Sec. 35. [355.091] [DIVISION OF RETIREMENT PLANS.] 63.7 (a) The public retirement plans enumerated in paragraph (b) 63.8 must be divided into two parts in accordance with section 63.9 218(d)(6)(c) of the Social Security Act, with one part composed 63.10 of plan members who did not elect social security coverage in 63.11 the applicable referendum and the other part composed of plan 63.12 members who did elect social security coverage in the applicable 63.13 referendum. 63.14 (b) The applicable public retirement plans are: 63.15 (1) the elective state officers retirement plan; 63.16 (2) the judges retirement plan; 63.17 (3) the legislators retirement plan; 63.18 (4) the Minneapolis teachers retirement fund association; 63.19 (5) the general employees retirement plan of the public 63.20 employees retirement association; 63.21 (6) the St. Paul teachers retirement fund association; and 63.22 (7) the teachers retirement association. 63.23 (c) Plan participants and persons electing participation 63.24 under section 354B.21 remain members of the teachers retirement 63.25 association for purposes of social security coverage only, and 63.26 remain covered by the applicable agreement entered into under 63.27 section 355.01, but are not members of the teachers retirement 63.28 association for any other purpose while employed in covered 63.29 employment. 63.30 Sec. 36. [REPEALER.] 63.31 Minnesota Statutes 2000, sections 355.01, subdivisions 2, 63.32 4, 5, 9, and 10; 355.11; 355.12; 355.13; 355.14; 355.15; 355.16; 63.33 355.17; 355.201; 355.202; 355.203; 355.204; 355.205; 355.206; 63.34 355.207; 355.208; 355.209; 355.21; 355.22; 355.23; 355.24; 63.35 355.25; 355.26; 355.27; 355.28; 355.281; 355.282; 355.283; 63.36 355.284; 355.285; 355.286; 355.287; 355.288; 355.29; 355.291; 64.1 355.292; 355.293; 355.294; 355.295; 355.296; 355.297; 355.298; 64.2 355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 355.41; 64.3 355.42; 355.43; 355.44; 355.45; 355.46; 355.48; 355.49; 355.50; 64.4 355.51; 355.52; 355.54; 355.55; 355.56; 355.57; 355.58; 355.59; 64.5 355.60; 355.61; 355.621; 355.622; 355.623; 355.624; 355.625; 64.6 355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 355.74; 64.7 355.75; 355.76; 355.77; 355.78; 355.79; 355.80; 355.81; and 64.8 355.90, are repealed. 64.9 Sec. 37. [EFFECTIVE DATE.] 64.10 Sections 1 to 36 are effective on July 1, 2002. 64.11 ARTICLE 8 64.12 PUBLIC PENSION PLAN 64.13 ACTUARIAL ASSUMPTION REVISIONS 64.14 Section 1. Minnesota Statutes 2000, section 356.215, 64.15 subdivision 4d, is amended to read: 64.16 Subd. 4d. [INTEREST AND SALARY ASSUMPTIONS.] (a) The 64.17 actuarial valuation must use the applicable following 64.18 preretirement interest assumption and the applicable following 64.19 postretirement interest assumption: 64.20 preretirement postretirement 64.21 interest rate interest rate 64.22 plan assumption assumption 64.23 general state employees 64.24 retirement plan 8.5% 6.0% 64.25 correctional state employees 64.26 retirement plan 8.5 6.0 64.27 state patrol retirement plan 8.5 6.0 64.28 legislators retirement plan 8.5 6.0 64.29 elective state officers 64.30 retirement plan 8.5 6.0 64.31 judges retirement plan 8.5 6.0 64.32 general public employees 64.33 retirement plan 8.5 6.0 64.34 public employees police and fire 64.35 retirement plan 8.5 6.0 64.36 local government correctional 64.37 service retirement plan 8.5 6.0 64.38 teachers retirement plan 8.5 6.0 64.39 Minneapolis employees 64.40 retirement plan 6.0 5.0 64.41 Duluth teachers retirement plan 8.5 8.5 64.42 Minneapolis teachers retirement 64.43 plan 8.5 8.5 64.44 St. Paul teachers retirement 64.45 plan 8.5 8.5 64.46 Minneapolis police relief 64.47 association 6.0 6.0 64.48other localFairmont police relief 64.49associationsassociation 5.0 5.0 64.50 Minneapolis fire department 64.51 relief association 6.0 6.0 64.52other local salaried firefighters65.1 Virginia fire department 65.2 reliefassociationsassociation 5.0 5.0 65.3 local monthly benefit volunteer 65.4 firefighters relief associations 5.0 5.0 65.5 (b) The actuarial valuation must use the applicable 65.6 following single rate future salary increase assumption or the 65.7 applicable following graded rate future salary increase 65.8 assumption: 65.9 (1) single rate future salary increase assumption 65.10 future salary 65.11 plan increase assumption 65.12 legislators retirement plan 5.0% 65.13 elective state officers retirement 65.14 plan 5.0 65.15 judges retirement plan 5.0 65.16 Minneapolis police relief association 4.0 65.17other localFairmont police relief 65.18associationsassociation 3.5 65.19 Minneapolis fire department relief 65.20 association 4.0 65.21other local salaried firefighters65.22 Virginia fire department 65.23 reliefassociationsassociation 3.5 65.24 (2) modified single rate future salary increase assumption 65.25 future salary 65.26 plan increase assumption 65.27 Minneapolis employees the prior calendar year 65.28 retirement plan amount increased first by 65.29 1.0198 percent to prior 65.30 fiscal year date and 65.31 then increased by 4.0 65.32 percent annually for 65.33 each future year 65.34 (3) select and ultimate future salary increase assumption 65.35 or graded rate future salary increase assumption 65.36 future salary 65.37 plan increase assumption 65.38 general state employees select calculation and 65.39 retirement plan assumption A 65.40 correctional state employees 65.41 retirement plan assumption H 65.42 state patrol retirement plan assumption H 65.43 general public employees select calculation and 65.44 retirement plan assumption B 65.45 public employees police and fire 65.46 fund retirement plan assumption C 65.47 local government correctional service 65.48 retirement plan assumption H 65.49 teachers retirement plan assumption D 65.50 Duluth teachers retirement plan assumption E 65.51 Minneapolis teachers retirement plan assumption F 65.52 St. Paul teachers retirement plan assumption G 65.53 65.54 The select calculation:is, 65.55 during the ten-year select period,0.2a designated percent 65.56 is multiplied by the result of ten minus T, where T is 65.57 the number of completed years of service, and is added 65.58 to the applicable future salary increase assumption. The 65.59 designated percent is 0.2 percent for the correctional state 65.60 employees retirement plan, the state patrol retirement 66.1 plan, the public employees police and fire plan, and the 66.2 local government correctional service plan; 0.3 percent 66.3 for the general state employees retirement plan, the 66.4 general public employees retirement plan, the teachers 66.5 retirement plan, the Duluth teachers retirement fund 66.6 association, and the St. Paul teachers retirement fund 66.7 association; and 0.4 percent for the Minneapolis teachers 66.8 retirement fund association. 66.9 66.10 The ultimate future salary increase assumption is: 66.11 66.12 age A B C D E F G H 66.13 16 6.95% 6.95% 11.50% 8.20% 8.00%7.50%7.25% 7.7500 66.14 6.50 6.90 66.15 17 6.90 6.90 11.50 8.15 8.007.507.257.7500 66.16 6.50 6.90 66.17 18 6.85 6.85 11.50 8.10 8.007.507.257.7500 66.18 6.50 6.90 66.19 19 6.80 6.80 11.50 8.05 8.007.507.257.7500 66.20 6.50 6.90 66.21 20 6.756.7511.508.008.007.507.257.7500 66.22 6.40 6.00 6.90 6.50 6.90 66.23 216.706.7011.507.958.007.507.257.1454 66.24 6.75 6.40 6.00 6.90 6.50 6.90 66.25 226.656.6511.007.908.007.507.257.0725 66.26 6.75 6.40 6.00 6.90 6.50 6.90 66.27 23 6.75 6.40 10.50 6.00 6.85 6.50 6.85 7.0544 66.28 246.666.5510.007.807.807.307.207.0363 66.29 6.75 6.40 6.00 6.80 6.50 6.80 66.30 256.506.509.507.757.707.207.157.0000 66.31 6.75 6.40 6.00 6.75 6.50 6.75 66.32 266.456.459.207.707.607.107.107.0000 66.33 6.75 6.36 6.00 6.70 6.50 6.70 66.34 276.406.408.907.657.507.007.057.0000 66.35 6.75 6.32 6.00 6.65 6.50 6.65 66.36 286.356.358.607.607.406.907.007.0000 66.37 6.75 6.28 6.00 6.60 6.50 6.60 66.38 296.306.308.307.557.306.806.957.0000 66.39 6.75 6.24 6.00 6.55 6.50 6.55 66.40 306.256.308.007.507.206.706.907.0000 66.41 6.75 6.20 6.00 6.50 6.50 6.50 66.42 316.206.257.807.457.106.606.857.0000 66.43 6.75 6.16 6.00 6.45 6.50 6.45 66.44 326.156.217.607.407.006.506.807.0000 66.45 6.75 6.12 6.00 6.40 6.50 6.40 66.46 336.106.177.407.306.906.406.757.0000 66.47 6.75 6.08 6.00 6.35 6.50 6.35 66.48 346.056.097.207.106.806.306.707.0000 66.49 6.75 6.04 6.00 6.30 6.50 6.30 66.50 356.006.057.007.006.706.206.657.0000 66.51 6.75 6.00 6.00 6.25 6.50 6.25 66.52 366.956.016.806.856.606.106.606.9019 66.53 6.75 5.96 6.00 6.20 6.50 6.20 66.54 375.905.976.606.706.506.006.556.8074 66.55 6.75 5.92 6.00 6.15 6.50 6.15 66.56 385.855.936.406.556.405.906.506.7125 66.57 6.75 5.88 5.90 6.10 6.50 6.10 66.58 395.805.896.206.406.305.806.406.6054 66.59 6.75 5.84 5.80 6.05 6.50 6.05 66.60 405.755.856.006.256.205.706.306.5000 66.61 41 5.70 5.81 5.90 6.10 6.10 5.60 6.20 6.3540 66.62 6.75 5.76 5.60 5.90 6.50 5.95 66.63 425.655.775.805.956.005.506.106.2087 66.64 6.75 5.72 5.50 5.80 6.50 5.90 66.65 435.605.735.705.805.905.456.006.0622 66.66 6.65 5.68 5.40 5.70 6.50 5.85 66.67 445.555.695.605.655.805.405.905.9048 66.68 6.55 5.64 5.30 5.60 6.50 5.80 66.69 455.505.655.505.505.705.355.805.7500 66.70 6.45 5.60 5.20 5.50 6.50 5.75 66.71 465.455.625.455.455.605.305.705.6940 67.1 6.35 5.56 5.10 5.40 6.40 5.70 67.2 475.405.595.405.405.505.255.65 5.6375 67.3 6.25 5.52 5.00 5.30 6.30 67.4 485.355.565.355.355.455.205.60 5.5822 67.5 6.15 5.48 5.00 5.20 6.20 67.6 495.305.535.305.305.405.155.55 5.5404 67.7 6.05 5.44 5.00 5.10 6.10 67.8 505.255.505.255.255.355.105.50 5.5000 67.9 5.95 5.40 5.00 5.00 6.00 67.10 515.205.455.255.205.305.055.45 5.4384 67.11 5.85 5.36 5.00 5.00 5.90 67.12 525.155.405.255.155.255.005.40 5.3776 67.13 5.75 5.32 5.00 5.00 5.80 67.14 535.105.355.255.105.255.005.35 5.3167 67.15 5.65 5.28 5.00 5.00 5.70 67.16 545.055.305.255.055.255.005.30 5.2826 67.17 5.55 5.24 5.00 5.00 5.60 67.18 555.005.255.25 5.005.255.005.25 5.2500 67.19 5.45 5.20 5.00 5.50 67.20 565.005.205.25 5.005.255.005.255.2500 67.21 5.35 5.16 5.00 5.40 5.20 67.22 575.005.155.25 5.005.255.005.255.2500 67.23 5.25 5.12 5.00 5.30 5.15 67.24 585.005.105.255.005.255.005.255.2500 67.25 595.005.055.255.005.255.005.255.2500 67.26 5.25 5.04 5.20 5.00 5.10 5.05 67.27 605.005.00 5.255.005.255.005.255.2500 67.28 5.25 5.30 5.00 5.00 67.29 615.005.00 5.255.005.255.005.255.2500 67.30 5.25 5.40 5.00 5.00 67.31 625.005.00 5.255.005.255.005.255.2500 67.32 5.25 5.50 5.00 5.00 67.33 635.005.00 5.255.005.255.005.255.2500 67.34 5.25 5.60 5.00 5.00 67.35 645.005.00 5.255.005.255.005.255.2500 67.36 5.25 5.70 5.00 5.00 67.37 655.005.00 5.255.005.255.005.255.2500 67.38 5.25 5.70 5.00 5.00 67.39 665.005.00 5.255.005.255.005.255.2500 67.40 5.25 5.70 5.00 5.00 67.41 675.005.00 5.255.005.255.005.255.2500 67.42 5.25 5.70 5.00 5.00 67.43 685.005.00 5.255.005.255.005.255.2500 67.44 5.25 5.70 5.00 5.00 67.45 695.005.00 5.255.005.255.005.255.2500 67.46 5.25 5.70 5.00 5.00 67.47 705.005.00 5.255.005.255.005.255.2500 67.48 5.25 5.70 5.00 5.00 67.49 715.005.005.0067.50 5.25 5.70 67.51 (c) The actuarial valuation must use the applicable 67.52 following payroll growth assumption for calculating the 67.53 amortization requirement for the unfunded actuarial accrued 67.54 liability where the amortization retirement is calculated as a 67.55 level percentage of an increasing payroll: 67.56 payroll growth 67.57 plan assumption 67.58 general state employees retirement plan 5.00% 67.59 correctional state employees retirement plan 5.00 67.60 state patrol retirement plan 5.00 67.61 legislators retirement plan 5.00 67.62 elective state officers retirement plan 5.00 67.63 judges retirement plan 5.00 67.64 general public employees retirement plan 6.00 67.65 public employees police and fire 68.1 retirement plan 6.00 68.2 local government correctional service 68.3 retirement plan 6.00 68.4 teachers retirement plan 5.00 68.5 Duluth teachers retirement plan 5.00 68.6 Minneapolis teachers retirement plan 5.00 68.7 St. Paul teachers retirement plan 5.00 68.8 Sec. 2. [EFFECTIVE DATE.] 68.9 Section 1 is effective on June 30, 2002. 68.10 ARTICLE 9 68.11 AUTHORIZATION OF ADDITIONAL 68.12 SUPPLEMENTAL RETIREMENT PLANS 68.13 Section 1. Minnesota Statutes 2001 Supplement, section 68.14 356.24, subdivision 1, is amended to read: 68.15 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 68.16 for a school district or other governmental subdivision or state 68.17 agency to levy taxes for, or contribute public funds to a 68.18 supplemental pension or deferred compensation plan that is 68.19 established, maintained, and operated in addition to a primary 68.20 pension program for the benefit of the governmental subdivision 68.21 employees other than: 68.22 (1) to a supplemental pension plan that was established, 68.23 maintained, and operated before May 6, 1971; 68.24 (2) to a plan that provides solely for group health, 68.25 hospital, disability, or death benefits; 68.26 (3) to the individual retirement account plan established 68.27 by chapter 354B; 68.28 (4) to a plan that provides solely for severance pay under 68.29 section 465.72 to a retiring or terminating employee; 68.30 (5) for employees other than personnel employed by the 68.31 board of trustees of the Minnesota state colleges and 68.32 universities and covered under the higher education supplemental 68.33 retirement plan under chapter 354C, if provided for in a 68.34 personnel policy of the public employer or in the collective 68.35 bargaining agreement between the public employer and the 68.36 exclusive representative of public employees in an appropriate 68.37 unit, in an amount matching employee contributions on a dollar 68.38 for dollar basis, but not to exceed an employer contribution of 68.39 $2,000 a year per employee; 69.1 (i) to the state of Minnesota deferred compensation plan 69.2 under section 352.96; or 69.3 (ii) in payment of the applicable portion of the 69.4 contribution made to any investment eligible under section 69.5 403(b) of the Internal Revenue Code, if the employing unit has 69.6 complied with any applicable pension plan provisions of the 69.7 Internal Revenue Code with respect to the tax-sheltered annuity 69.8 program during the preceding calendar year; 69.9 (6) for personnel employed by the board of trustees of the 69.10 Minnesota state colleges and universities and not covered by 69.11 clause (5), to the supplemental retirement plan under chapter 69.12 354C, if provided for in a personnel policy or in the collective 69.13 bargaining agreement of the public employer with the exclusive 69.14 representative of the covered employees in an appropriate unit, 69.15 in an amount matching employee contributions on a dollar for 69.16 dollar basis, but not to exceed an employer contribution of 69.17 $2,700 a year for each employee; 69.18 (7) to a supplemental plan or to a governmental trust to 69.19 save for postretirement health care expenses qualified for 69.20 tax-preferred treatment under the Internal Revenue Code, if 69.21 provided for in a personnel policy or in the collective 69.22 bargaining agreement of a public employer with the exclusive 69.23 representative of the covered employees in an appropriate unit; 69.24or69.25 (8) to the laborer's national industrial pension fund for 69.26 the employees of a governmental subdivision who are covered by a 69.27 collective bargaining agreement that provides for coverage by 69.28 that fund and that sets forth a fund contribution rate, but not 69.29 to exceed an employer contribution of $2,000 per year per 69.30 employee; 69.31 (9) to the plumbers' and pipefitters' national pension fund 69.32 for the employees of a governmental subdivision who are covered 69.33 by a collective bargaining agreement that provides for coverage 69.34 by that fund and that sets forth a fund contribution rate, but 69.35 not to exceed an employer contribution of $2,000 per year per 69.36 employee; 70.1 (10) to the international union of operating engineers 70.2 pension fund for the employees of a governmental subdivision who 70.3 are covered by a collective bargaining agreement that provides 70.4 for coverage by that fund and that sets forth a fund 70.5 contribution rate, but not to exceed an employer contribution of 70.6 $2,000 per year per employee; or 70.7 (11) to a supplemental plan organized and operated under 70.8 the federal Internal Revenue Code, as amended, that is wholly 70.9 and solely funded by the employee's accumulated sick leave, 70.10 accumulated vacation leave, and accumulated severance pay. 70.11 Sec. 2. Minnesota Statutes 2000, section 356.25, is 70.12 amended to read: 70.13 356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 70.14 EXCLUSIONS.] 70.15 Notwithstanding any other provision of law or charter, no 70.16 city, county, public agency or instrumentality, or other 70.17 political subdivisionshall, after August 1, 1975,is required 70.18 or permitted to establish for any of its employees any local 70.19 pension plan or fund financed in whole or in part from public 70.20 funds, other than: 70.21 (1) a supplemental pension or deferred compensation plan 70.22 authorized under section 356.24; or 70.23 (2) a volunteer firefighter's relief association 70.24 establishedpursuant tounder chapter 424A and governed by 70.25 sections 69.771 to 69.776. 70.26 Sec. 3. [RATIFICATION AND VALIDATION OF CERTAIN PAST 70.27 ACTIONS.] 70.28 Any supplemental pension plan that is organized and 70.29 operated under section 401(a) of the federal Internal Revenue 70.30 Code, as amended, that is wholly and solely funded by an 70.31 employee's accumulated sick leave, accumulated vacation leave, 70.32 and accumulated severance pay, and that was established before 70.33 the effective date of this act and any contributions to the plan 70.34 that may be characterized as public funds within the meaning of 70.35 Minnesota Statutes, section 356.24, are hereby ratified and 70.36 validated. 71.1 Sec. 4. [EFFECTIVE DATE.] 71.2 Sections 1 to 3 are effective on the day following final 71.3 enactment. 71.4 ARTICLE 10 71.5 GENERAL RETIREMENT LAW 71.6 REORGANIZATION AND RECODIFICATION 71.7 PUBLIC RETIREMENT PLAN PURPOSE 71.8 Section 1. Minnesota Statutes 2000, section 356.001, is 71.9 amended to read: 71.10 356.001 [PURPOSE OF PUBLIC PLANS.] 71.11 Subdivision 1. [EXCLUSIVE BENEFIT OF MEMBERS AND 71.12 BENEFICIARIES.] (a) The public plans and funds specified in 71.13 subdivision 4 are established to provide for the retirement of 71.14 their members and to provide funds for the beneficiaries of 71.15 members in the event of death of a member. 71.16 (b) The public plans and funds are established andshall71.17 must be maintained for the exclusive benefit of the members and 71.18 the beneficiaries of the members. Except as provided in 71.19 subdivisions 2 and 3, no part of the moneys of the plans and 71.20 fundsshallmay revert to the plan or fund or be used for or 71.21 diverted to purposes other than the exclusive benefit of the 71.22 members or their beneficiaries. 71.23 Subd. 2. [ALLOWABLE EXPENSES.] The necessary, reasonable, 71.24 and direct expenses of maintaining, protecting, and 71.25 administering the public plan or fund, as authorized in the laws 71.26 governing the plan or fund,shallmust be considered as 71.27 expenditures for the exclusive benefit of the members or their 71.28 beneficiaries. 71.29 Subd. 3. [EFFECT OF AMENDMENTS OR TERMINATION.] (a) If a 71.30 public plan or fundasdefined in subdivision 4 is terminated or 71.31 the plan or fund provisions are amended, no part of the moneys 71.32 held in the plan or fundshallmay be used for or diverted to 71.33 any purpose other than the exclusive benefit of the members or 71.34 their beneficiaries, except as provided in this subdivision. 71.35 (b) If a plan or fund is terminated, all affected members 71.36 have a nonforfeitable interest in their benefits that were 72.1 accrued and funded to date. The value of the accrued benefits 72.2 to be credited to the account of each affected membershallmust 72.3 be calculated as of the date of termination and the funding 72.4 ratio of the plan or fund must be applied to the accrued benefit 72.5 of each affected member. 72.6 (c) The board of trustees of the plan or fund shallthen, 72.7 as soon as administratively feasible following the termination, 72.8 pay each eligible member or beneficiary on behalf of a member 72.9 the amount in the member's account in a lump sum. In the case 72.10 of a member whose whereabouts is unknown, the board shall notify 72.11 the member at the last known address by certified mail with 72.12 return receipt requested advising the member of the member's 72.13 right to a pending distribution. If the member cannot be 72.14 located in this manner, the board shall establish a custodial 72.15 account for the member's benefit in a federally insured bank, 72.16 savings association, or credit union in which the member's 72.17 account balanceshallmust be deposited. If the board receives 72.18 proof of death of a member that is satisfactory to the board, 72.19 the account balanceshallmust be paid to the beneficiary of the 72.20 member. 72.21 Subd. 4. [COVERED PLANS AND FUNDS.] This section applies 72.22 to all public pension and retirement plans and funds established 72.23pursuant tounder the laws of the state of Minnesota that 72.24 receive contributions from moneys derived from taxation. 72.25 Subd. 5. [CONSTRUCTION.] Nothing contained in this section 72.26shallmay be construed to authorize, or otherwise imply, a 72.27 legislative policy or intent favoring the termination of any 72.28 plan or fund to which this section applies. 72.29 PUBLIC PENSION PLAN ACTUARIAL, FINANCIAL, 72.30 AND INVESTMENT REPORTING 72.31 Sec. 2. Minnesota Statutes 2000, section 356.20, 72.32 subdivision 1, is amended to read: 72.33 Subdivision 1. [REPORT REQUIRED.] (a) The governing or 72.34 managing board or administrative officials of the public pension 72.35 and retirement funds enumerated in subdivision 2 shall annually 72.36 prepare and file a financial report following the close of each 73.1 fiscal year. 73.2 (b) This requirementshallalsoapplyapplies to any plan 73.3 or fund which may be a successor to any organization so 73.4 enumerated or to any newly formed retirement plan, fund or 73.5 association operating under the control or supervision of any 73.6 public employee group, governmental unit, or institution 73.7 receiving a portion of its support through legislative 73.8 appropriations. 73.9 (c) The reportshallmust be prepared under the supervision 73.10 and at the direction of the management of each fund andshall73.11 must be signed by the presiding officer of the managing board of 73.12 the fund and the chief administrative official of the fund. 73.13 Sec. 3. Minnesota Statutes 2000, section 356.20, 73.14 subdivision 2, is amended to read: 73.15 Subd. 2. [COVERED PUBLIC PENSION PLANS AND FUNDS.] This 73.16 section applies to the following public pension plans: 73.17 (1) the general state employees retirementfund.plan of 73.18 the Minnesota state retirement system; 73.19 (2) the general employees retirement plan of the public 73.20 employees retirementfund.association; 73.21 (3) the teachers retirement association.; 73.22 (4) the state patrol retirementfund.plan; 73.23 (5) the Minneapolis teachers retirement fund association.; 73.24 (6) the St. Paul teachers retirement fund association.; 73.25 (7) the Duluth teachers retirement fund association.; 73.26 (8) the Minneapolis employees retirement fund.; 73.27 (9) the University of Minnesota faculty retirement plan.; 73.28 (10) the University of Minnesota faculty supplemental 73.29 retirement plan.; 73.30 (11) the judges retirement fund.; 73.31 (12)Anya police or firefighter's relief association 73.32enumerateddescribed in section 69.77, subdivision 1a, or 73.33 69.771, subdivision 1.; 73.34 (13) the public employees police and firefund.plan of the 73.35 public employees retirement association; 73.36 (14) the correctional state employees retirement plan of 74.1 the Minnesota state retirement systemcorrectional officers74.2retirement fund.; and 74.3 (15)public employeesthe local government correctional 74.4 service retirement plan of the public employees retirement 74.5 association. 74.6 Sec. 4. Minnesota Statutes 2000, section 356.20, 74.7 subdivision 3, is amended to read: 74.8 Subd. 3. [FILING REQUIREMENT.] The financial report is a 74.9 public record. A copy of the report or a synopsis of the report 74.10 containing the information required by this sectionshallmust 74.11 be distributed annually to each member of the fund and to the 74.12 governing body of each governmental subdivision of the state 74.13 which makes employers contributions thereto or in whose behalf 74.14 taxes are levied for the employers' contribution. A signed copy 74.15 of the reportshallmust be delivered to the executive director 74.16 of the legislative commission on pensions and retirement and to 74.17 the legislative reference library not later than six months 74.18 after the close of each fiscal year or one month following the 74.19 completion and delivery to the retirement fund of the actuarial 74.20 valuation report of the fund by the actuary retained by the 74.21 legislative commission on pensions and retirement, if 74.22 applicable, whichever is later. 74.23 Sec. 5. Minnesota Statutes 2000, section 356.20, 74.24 subdivision 4, is amended to read: 74.25 Subd. 4. [CONTENTS OF FINANCIAL REPORT.] (a) The financial 74.26 report required by this section must contain financial 74.27 statements and disclosures that indicate the financial 74.28 operations and position of the retirement plan and fund. The 74.29 report must conform with generally accepted governmental 74.30 accounting principles, applied on a consistent basis. The 74.31 report must be audited. The report must include, as part of its 74.32 exhibits or footnotes, an actuarial disclosure item based on the 74.33 actuarial valuation calculations prepared by the 74.34 commission-retained actuary or by the actuary retained by the 74.35 retirement fund or plan, if applicable, according to applicable 74.36 actuarial requirements enumerated in section 356.215, and 75.1 specified in the most recent standards for actuarial work 75.2 adopted by the legislative commission on pensions and 75.3 retirement. The accrued assets, the accrued liabilities, 75.4 including accrued reserves, and the unfunded actuarial accrued 75.5 liability of the fund or plan must be disclosed. The disclosure 75.6 item must contain a declaration by the actuary retained by the 75.7 legislative commission on pensions and retirement or the actuary 75.8 retained by the fund or plan, whichever applies, specifying that 75.9 the required reserves for any retirement, disability, or 75.10 survivor benefits provided under a benefit formula are computed 75.11 in accordance with the entry age actuarial cost method and with 75.12 the most recent applicable standards for actuarial work adopted 75.13 by the legislative commission on pensions and retirement. 75.14(a)(b) Assets of the fund or plan contained in the 75.15 disclosure item must include the following statement of the 75.16 actuarial value of current assets as defined in section 356.215, 75.17 subdivision 1: 75.18 Value Value 75.19 at cost at market 75.20 Cash, cash equivalents, and 75.21 short-term securities ......... ......... 75.22 Accounts receivable ......... ......... 75.23 Accrued investment income ......... ......... 75.24 Fixed income investments ......... ......... 75.25 Equity investments other 75.26 than real estate ......... ......... 75.27 Real estate investments ......... ......... 75.28 Equipment ......... ......... 75.29 Equity in the Minnesota 75.30 postretirement investment 75.31 fund ......... ......... 75.32 Other ......... ......... 75.33 75.34 Total assets 75.35 Value at cost ......... 75.36 Value at market ......... 76.1 Value of current assets ......... 76.2(b)(c) The unfunded actuarial accrued liability of the 76.3 fund or plan contained in the disclosure item must include the 76.4 following measures of unfunded actuarial accrued liability, 76.5 using the value of current assets: 76.6 (1) unfunded actuarial accrued liability, determined by 76.7 subtracting the current assets and the present value of future 76.8 normal costs from the total current and expected future benefit 76.9 obligations; and 76.10 (2) unfunded pension benefit obligation, determined by 76.11 subtracting the current assets from the actuarial present value 76.12 of credited projected benefits. 76.13 If the current assets of the fund or plan exceed the 76.14 actuarial accrued liabilities, the excess must be disclosed and 76.15 indicated as a surplus. 76.16(c)(d) The pension benefit obligations schedule included 76.17 in the disclosure must contain the following information on the 76.18 benefit obligations: 76.19 (1) the pension benefit obligation, determined as the 76.20 actuarial present value of credited projected benefits on 76.21 account of service rendered to date, separately identified as 76.22 follows: 76.23 (i) for annuitants; 76.24 retirement annuities; 76.25 disability benefits; 76.26 surviving spouse and child benefits; 76.27 (ii) for former members without vested rights; 76.28 (iii) for deferred annuitants' benefits, including 76.29 any augmentation; 76.30 (iv) for active employees; 76.31 accumulated employee contributions, 76.32 including allocated investment income; 76.33 employer-financed benefits vested; 76.34 employer-financed benefits nonvested; 76.35 total pension benefit obligation; and 76.36 (2) if there are additional benefits not appropriately 77.1 covered by the foregoing items of benefit obligations, a 77.2 separate identification of the obligation. 77.3(d)(e) Any additional statements or exhibits or more 77.4 detailed or subdivided itemization of a disclosure item that 77.5 will enable the management of the fund to portray a true 77.6 interpretation of the fund's financial condition must be 77.7 included in the additional statements or exhibits. 77.8 Sec. 6. Minnesota Statutes 2000, section 356.20, 77.9 subdivision 4a, is amended to read: 77.10 Subd. 4a. [FINANCIAL REPORT FOR POLICE OR FIREFIGHTERS 77.11 RELIEF ASSOCIATION.] For any police or firefighter's relief 77.12 association referred to in subdivision 2, clause (12), a 77.13 financial report duly filedpursuant toand meeting the 77.14 requirements of section 69.051shallmust be deemed to have met 77.15 the requirements of subdivision 4. 77.16 Sec. 7. Minnesota Statutes 2000, section 356.215, as 77.17 amended by Laws 2001, First Special Session chapter 10, article 77.18 11, section 18, is amended to read: 77.19 356.215 [ACTUARIAL VALUATIONS AND EXPERIENCE STUDIES.] 77.20 Subdivision 1. [DEFINITIONS.] (a) For the purposes of 77.21 sections 3.85 and 356.20 to 356.23, each of the terms in the 77.22 following paragraphs have the meaning given. 77.23 (b) "Actuarial valuation" means a set of calculations 77.24 prepared by the actuary retained by the legislative commission 77.25 on pensions and retirement if so required under section 3.85, or 77.26 otherwise, by an approved actuary, to determine the normal cost 77.27 and the accrued actuarial liabilities of a benefit plan, 77.28 according to the entry age actuarial cost method and based upon 77.29 stated assumptions including, but not limited to rates of 77.30 interest, mortality, salary increase, disability, withdrawal, 77.31 and retirement and to determine the payment necessary to 77.32 amortize over a stated period any unfunded accrued actuarial 77.33 liability disclosed as a result of the actuarial valuation of 77.34 the benefit plan. 77.35 (c) "Approved actuary" means a person who is regularly 77.36 engaged in the business of providing actuarial services and who 78.1 has at least 15 years of service to major public employee 78.2 pension or retirement funds or who is a fellow in the society of 78.3 actuaries. 78.4 (d) "Entry age actuarial cost method" means an actuarial 78.5 cost method under which the actuarial present value of the 78.6 projected benefits of each individual currently covered by the 78.7 benefit plan and included in the actuarial valuation is 78.8 allocated on a level basis over the service of the individual, 78.9 if the benefit plan is governed by section 69.773, or over the 78.10 earnings of the individual, if the benefit plan is governed by 78.11 any other law, between the entry age and the assumed exit age, 78.12 with the portion ofthisthe actuarial present value which is 78.13 allocated to the valuation year to be the normal cost and the 78.14 portion ofthisthe actuarial present value not provided for at 78.15 the valuation date by the actuarial present value of future 78.16 normal costs to be the actuarial accrued liability, with 78.17 aggregation in the calculation process to be the sum of the 78.18 calculated result for each covered individual and with 78.19 recognition given to any different benefit formulas which may 78.20 apply to various periods of service. 78.21 (e) "Experience study" means a report providing experience 78.22 data and an actuarial analysis of the adequacy of the actuarial 78.23 assumptions on which actuarial valuations are based. 78.24 (f) "Current assets" means: 78.25 (1)for the July 1, 1999, actuarial valuation, the value of78.26all assets at cost, including realized capital gains or losses,78.27plus one-third of any unrealized capital gains or losses;78.28(2) for the July 1, 2000, actuarial valuation, the market78.29value of all assets as of June 30, 2000, reduced by:78.30(i) 60 percent of the difference between the market value78.31of all assets as of June 30, 1999, and the actuarial value of78.32assets used in the July 1, 1999, actuarial valuation, and78.33(ii) 80 percent of the difference between the actual net78.34change in the market value of assets between June 30, 1999, and78.35June 30, 2000, and the computed increase in the market value of78.36assets between June 30, 1999, and June 30, 2000, if the assets79.1had increased at the percentage preretirement interest rate79.2assumption used in the July 1, 1999, actuarial valuation;79.3(3)for the July 1, 2001, actuarial valuation, the market 79.4 value of all assets as of June 30, 2001, reduced by: 79.5 (i) 30 percent of the difference between the market value 79.6 of all assets as of June 30, 1999, and the actuarial value of 79.7 assets used in the July 1, 1999, actuarial valuation; 79.8 (ii) 60 percent of the difference between the actual net 79.9 change in the market value of assets between June 30, 1999, and 79.10 June 30, 2000, and the computed increase in the market value of 79.11 assets between June 30, 1999, and June 30, 2000, if the assets 79.12 had increased at the percentage preretirement interest rate 79.13 assumption used in the July 1, 1999, actuarial valuation; and 79.14 (iii) 80 percent of the difference between the actual net 79.15 change in the market value of assets between June 30, 2000, and 79.16 June 30, 2001, and the computed increase in the market value of 79.17 assets between June 30, 2000, and June 30, 2001, if the assets 79.18 had increased at the percentage preretirement interest rate 79.19 assumption used in the July 1, 2000, actuarial valuation; 79.20(4)(2) for the July 1, 2002, actuarial valuation, the 79.21 market value of all assets as of June 30, 2002, reduced by: 79.22 (i) ten percent of the difference between the market value 79.23 of all assets as of June 30, 1999, and the actuarial value of 79.24 assets used in the July 1, 1999, actuarial valuation; 79.25 (ii) 40 percent of the difference between the actual net 79.26 change in the market value of assets between June 30, 1999, and 79.27 June 30, 2000, and the computed increase in the market value of 79.28 assets between June 30, 1999, and June 30, 2000, if the assets 79.29 had increased at the percentage preretirement interest rate 79.30 assumption used in the July 1, 1999, actuarial valuation; 79.31 (iii) 60 percent of the difference between the actual net 79.32 change in the market value of assets between June 30, 2000, and 79.33 June 30, 2001, and the computed increase in the market value of 79.34 assets between June 30, 2000, and June 30, 2001, if the assets 79.35 had increased at the percentage preretirement interest rate 79.36 assumption used in the July 1, 2000, actuarial valuation; and 80.1 (iv) 80 percent of the difference between the actual net 80.2 change in the market value of assets between June 30, 2001, and 80.3 June 30, 2002, and the computed increase in the market value of 80.4 assets between June 30, 2001, and June 30, 2002, if the assets 80.5 had increased at the percentage preretirement interest rate 80.6 assumption used in the July 1, 2001, actuarial valuation; or 80.7(5)(3) for any actuarial valuation after July 1, 2002, the 80.8 market value of all assets as of the preceding June 30, reduced 80.9 by: 80.10 (i) 20 percent of the difference between the actual net 80.11 change in the market value of assets between the June 30 that 80.12 occurred three years earlier and the June 30 that occurred four 80.13 years earlier and the computed increase in the market value of 80.14 assets over that fiscal year period if the assets had increased 80.15 at the percentage preretirement interest rate assumption used in 80.16 the actuarial valuation for the July 1 that occurred four years 80.17 earlier; 80.18 (ii) 40 percent of the difference between the actual net 80.19 change in the market value of assets between the June 30 that 80.20 occurred two years earlier and the June 30 that occurred three 80.21 years earlier and the computed increase in the market value of 80.22 assets over that fiscal year period if the assets had increased 80.23 at the percentage preretirement interest rate assumption used in 80.24 the actuarial valuation for the July 1 that occurred three years 80.25 earlier; 80.26 (iii) 60 percent of the difference between the actual net 80.27 change in the market value of assets between the June 30 that 80.28 occurred one year earlier and the June 30 that occurred two 80.29 years earlier and the computed increase in the market value of 80.30 assets over that fiscal year period if the assets had increased 80.31 at the percentage preretirement interest rate assumption used in 80.32 the actuarial valuation for the July 1 that occurred two years 80.33 earlier; and 80.34 (iv) 80 percent of the difference between the actual net 80.35 change in the market value of assets between the immediately 80.36 prior June 30 and the June 30 that occurred one year earlier and 81.1 the computed increase in the market value of assets over that 81.2 fiscal year period if the assets had increased at the percentage 81.3 preretirement interest rate assumption used in the actuarial 81.4 valuation for the July 1 that occurred one year earlier. 81.5 (g) "Unfunded actuarial accrued liability" means the total 81.6 current and expected future benefit obligations, reduced by the 81.7 sum of current assets and the present value of future normal 81.8 costs. 81.9 (h) "Pension benefit obligation" means the actuarial 81.10 present value of credited projected benefits, determined as the 81.11 actuarial present value of benefits estimated to be payable in 81.12 the future as a result of employee service attributing an equal 81.13 benefit amount, including the effect of projected salary 81.14 increases and any step rate benefit accrual rate differences, to 81.15 each year of credited and expected future employee service. 81.16 Subd. 2. [REQUIREMENTS.] (a) It is the policy of the 81.17 legislature that it is necessary and appropriate to determine 81.18 annually the financial status of tax supported retirement and 81.19 pension plans for public employees. To achieve this goal: 81.20 (1) the legislative commission on pensions and retirement 81.21 shall have prepared by the actuary retained by the commission 81.22 annual actuarial valuations of the retirement plans enumerated 81.23 in section 3.85, subdivision 11, paragraph (b), and quadrennial 81.24 experience studies of the retirement plans enumerated in section 81.25 3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7); 81.26 and 81.27 (2) the commissioner of finance may have prepared by the 81.28 actuary retained by the commission, two years after each set of 81.29 quadrennial experience studies, quadrennial projection 81.30 valuations of at least one of the retirement plans enumerated in 81.31 section 3.85, subdivision 11, paragraph (b), for which the 81.32 commissioner determines that the analysis may be beneficial. 81.33 (b) The governing or managing board or administrative 81.34 officials of each public pension and retirement fund or plan 81.35 enumerated in section 356.20, subdivision 2, clauses (9), (10), 81.36 and (12), shall have prepared by an approved actuary annual 82.1 actuarial valuations of their respective funds as provided in 82.2 this section. This requirement also applies to any fund or plan 82.3 that is the successor to any organization enumerated in section 82.4 356.20, subdivision 2, or to the governing or managing board or 82.5 administrative officials of any newly formed retirement fund, 82.6 plan, or association operating under the control or supervision 82.7 of any public employee group, governmental unit, or institution 82.8 receiving a portion of its support through legislative 82.9 appropriations, and any local police or fire fundcoming within82.10the provisions ofto which section 356.216 applies. 82.11 Subd. 2a. [PROJECTION VALUATION REQUIREMENTS.] (a) A 82.12 quadrennial projection valuationrequiredauthorized under 82.13 subdivision 2 is intended to serve as an additional analytical 82.14 tool with which policy makers may assess the future funding 82.15 status of public plans through forecasting and testing various 82.16 potential outcomes over time if certain plan assumptions or 82.17 valuation methods were to be modified. 82.18 (b) In consultation with the retirement fund directors, the 82.19 state economist, the state demographer, the commissioner of 82.20 finance, and the commissioner of employee relations, the actuary 82.21 retained by the legislative commission on pensions and 82.22 retirement shall perform the quadrennial projection valuations 82.23 on behalf of the commissioner of finance, testing future 82.24 implications for plan funding by modifying assumptions and 82.25 methods currently in place. The commission-retained actuary 82.26 shall provide advice to the commissioner as to the periods over 82.27 which such projections should be made, the nature and scope of 82.28 the scenarios to be analyzed, and the measures of funding status 82.29 to be employed, and shall report the results of these analyses 82.30 in the same manner as for quadrennial experience studies. 82.31 Subd. 3. [REPORTS.] (a) The actuarial valuations required 82.32 annually must be made as of the beginning of each fiscal year. 82.33 (b) Two copies of the valuation must be delivered to the 82.34 executive director of the legislative commission on pensions and 82.35 retirement, to the commissioner of finance and to the 82.36 legislative reference library, not later than the first day of 83.1 the sixth month occurring after the end of the previous fiscal 83.2 year. 83.3 (c) Two copies of a quadrennial experience study must be 83.4 filed with the executive director of the legislative commission 83.5 on pensions and retirement, with the commissioner of finance, 83.6 and with the legislative reference library, not later than the 83.7 first day of the 11th month occurring after the end of the last 83.8 fiscal year of the four-year period which the experience study 83.9 covers. 83.10 (d) For actuarial valuations and experience studies 83.11 prepared at the direction of the legislative commission on 83.12 pensions and retirement, two copies of the document must be 83.13 delivered to the governing or managing board or administrative 83.14 officials of the applicable public pension and retirement fund 83.15 or plan. 83.16 Subd. 4. [ACTUARIAL VALUATION; CONTENTS.] (a) The 83.17 actuarial valuation must be made in conformity with the 83.18 requirements of the definition contained in subdivision 1 and 83.19 the most recent standards for actuarial work adopted by the 83.20 legislative commission on pensions and retirement. 83.21 (b) The actuarial valuation must measure all aspects of the 83.22 benefit plan of the fund in accordance with changes in benefit 83.23 plans, if any, and salaries reasonably anticipated to be in 83.24 force during the ensuing fiscal year. The actuarial valuation 83.25 must be prepared in accordance with the entry age actuarial cost 83.26 method. The actuarial valuation required under this section 83.27 must include the information required in subdivisions4a5 to4k83.28 15. 83.29 Subd.4a5. [NORMAL COST.] For a fund providing benefits 83.30 in whole or in part under a defined benefit plan, the actuarial 83.31 valuation must indicate the level normal cost of the benefits 83.32 providedbyunder the laws governing the fund as of the date of 83.33 the valuation, calculated in accordance with the entry age 83.34 actuarial cost method. The normal cost must be expressed as a 83.35 level percentage of the present value of future payrolls of the 83.36 active participants of the fund as of the date of the valuation. 84.1 Subd.4b6. [ACCRUED LIABILITY.] For a fund providing 84.2 benefits under a defined benefit plan, the actuarial valuation 84.3 must contain an exhibit indicating the actuarial accrued 84.4 liabilities of the fund. This figure is the present value of 84.5 future benefits,reduced by the present value of future normal 84.6 costs, calculated in accordance with the entry age actuarial 84.7 cost method. 84.8 Subd.4c7. [DEFINED CONTRIBUTION PLAN ACCUMULATIONS.] For 84.9 each fund providing benefits underthea money purchase or 84.10 defined contribution plan, the actuarial valuationshallmust 84.11 contain an exhibit indicating the member contributions 84.12 accumulated at interest, as apportioned to members accounts, to 84.13 the date of the valuation. These accumulationsshallmust be 84.14 separately tabulated in a manner which properly reflects any 84.15 differences in money purchase or defined contribution annuity 84.16 rates which may apply. 84.17 Subd.4d8. [INTEREST AND SALARY ASSUMPTIONS.] (a) The 84.18 actuarial valuation must use the applicable following 84.19 preretirement interest assumption and the applicable following 84.20 postretirement interest assumption: 84.21 preretirement postretirement 84.22 interest rate interest rate 84.23 plan assumption assumption 84.24 general state employees 84.25 retirement plan 8.5% 6.0% 84.26 correctional state employees 84.27 retirement plan 8.5 6.0 84.28 state patrol retirement plan 8.5 6.0 84.29 legislators retirement plan 8.5 6.0 84.30 elective state officers 84.31 retirement plan 8.5 6.0 84.32 judges retirement plan 8.5 6.0 84.33 general public employees 84.34 retirement plan 8.5 6.0 84.35 public employees police and fire 84.36 retirement plan 8.5 6.0 84.37 local government correctional 84.38 service retirement plan 8.5 6.0 84.39 teachers retirement plan 8.5 6.0 84.40 Minneapolis employees 84.41 retirement plan 6.0 5.0 84.42 Duluth teachers retirement plan 8.5 8.5 84.43 Minneapolis teachers retirement 84.44 plan 8.5 8.5 84.45 St. Paul teachers retirement 84.46 plan 8.5 8.5 84.47 Minneapolis police relief 84.48 association 6.0 6.0 84.49other localFairmont police relief 84.50associationsassociation 5.0 5.0 84.51 Minneapolis fire department 85.1 relief association 6.0 6.0 85.2other local salaried firefighters85.3 Virginia fire department 85.4 reliefassociationsassociation 5.0 5.0 85.5 local monthly benefit volunteer 85.6 firefighters relief associations 5.0 5.0 85.7 (b) The actuarial valuation must use the applicable 85.8 following single rate future salary increase assumption, the 85.9 applicable following modified single rate future salary increase 85.10 assumption, or the applicable following graded rate future 85.11 salary increase assumption: 85.12 (1) single rate future salary increase assumption 85.13 future salary 85.14 plan increase assumption 85.15 legislators retirement plan 5.0% 85.16 elective state officers retirement 85.17 plan 5.0 85.18 judges retirement plan 5.0 85.19 Minneapolis police relief association 4.0 85.20other localFairmont police relief 85.21associationsassociation 3.5 85.22 Minneapolis fire department relief 85.23 association 4.0 85.24other local salaried firefighters85.25 Virginia fire department 85.26 reliefassociationsassociation 3.5 85.27 (2) modified single rate future salary increase assumption 85.28 future salary 85.29 plan increase assumption 85.30 Minneapolis employees the prior calendar year 85.31 retirement plan amount increased first by 85.32 1.0198 percent to prior 85.33 fiscal year date and 85.34 then increased by 4.0 85.35 percent annually for 85.36 each future year 85.37 (3) select and ultimate future salary increase assumption 85.38 or graded rate future salary increase assumption 85.39 future salary 85.40 plan increase assumption 85.41 general state employees select calculation and 85.42 retirement plan assumption A 85.43 correctional state employees 85.44 retirement plan assumption H 85.45 state patrol retirement plan assumption H 85.46 general public employees select calculation and 85.47 retirement plan assumption B 85.48 public employees police and fire 85.49 fund retirement plan assumption C 85.50 local government correctional service 85.51 retirement plan assumption H 85.52 teachers retirement plan assumption D 85.53 Duluth teachers retirement plan assumption E 85.54 Minneapolis teachers retirement plan assumption F 85.55 St. Paul teachers retirement plan assumption G 85.56 85.57 The select calculation is: 85.58 during the ten-year select period,0.2a designated percent 85.59 is multiplied by the result of ten minus T, where T is 86.1 the number of completed years of service, and is added 86.2 to the applicable future salary increase assumption. The 86.3 designated percent is 0.2 percent for the correctional state 86.4 employees retirement plan, the state patrol retirement 86.5 plan, the public employees police and fire plan, and the 86.6 local government correctional service plan; 0.3 percent 86.7 for the general state employees retirement plan, the 86.8 general public employees retirement plan, the teachers 86.9 retirement plan, the Duluth teachers retirement fund 86.10 association, and the St. Paul teachers retirement fund 86.11 association; and 0.4 percent for the Minneapolis teachers 86.12 retirement fund association. 86.13 86.14 The ultimate future salary increase assumption is: 86.15 86.16 age A B C D E F G H 86.17 16 6.95% 6.95% 11.50% 8.20% 8.00%7.50%7.25% 7.7500 86.18 6.50 6.90 86.19 17 6.90 6.90 11.50 8.15 8.007.507.257.7500 86.20 6.50 6.90 86.21 18 6.85 6.85 11.50 8.10 8.007.507.257.7500 86.22 6.50 6.90 86.23 19 6.80 6.80 11.50 8.05 8.007.507.257.7500 86.24 6.50 6.90 86.25 20 6.756.7511.508.008.007.507.257.7500 86.26 6.40 6.00 6.90 6.50 6.90 86.27 216.706.7011.507.958.007.507.257.1454 86.28 6.75 6.40 6.00 6.90 6.50 6.90 86.29 226.656.6511.007.908.007.507.257.0725 86.30 6.75 6.40 6.00 6.90 6.50 6.90 86.31 23 6.75 6.40 10.50 6.00 6.85 6.50 6.85 7.0544 86.32 246.666.5510.007.807.807.307.207.0363 86.33 6.75 6.40 6.00 6.80 6.50 6.80 86.34 256.506.509.507.757.707.207.157.0000 86.35 6.75 6.40 6.00 6.75 6.50 6.75 86.36 266.456.459.207.707.607.107.107.0000 86.37 6.75 6.36 6.00 6.70 6.50 6.70 86.38 276.406.408.907.657.507.007.057.0000 86.39 6.75 6.32 6.00 6.65 6.50 6.65 86.40 286.356.358.607.607.406.907.007.0000 86.41 6.75 6.28 6.00 6.60 6.50 6.60 86.42 296.306.308.307.557.306.806.957.0000 86.43 6.75 6.24 6.00 6.55 6.50 6.55 86.44 306.256.308.007.507.206.706.907.0000 86.45 6.75 6.20 6.00 6.50 6.50 6.50 86.46 316.206.257.807.457.106.606.857.0000 86.47 6.75 6.16 6.00 6.45 6.50 6.45 86.48 326.156.217.607.407.006.506.807.0000 86.49 6.75 6.12 6.00 6.40 6.50 6.40 86.50 336.106.177.407.306.906.406.757.0000 86.51 6.75 6.08 6.00 6.35 6.50 6.35 86.52 346.056.097.207.106.806.306.707.0000 86.53 6.75 6.04 6.00 6.30 6.50 6.30 86.54 356.006.057.007.006.706.206.657.0000 86.55 6.75 6.00 6.00 6.25 6.50 6.25 86.56 366.956.016.806.856.606.106.606.9019 86.57 6.75 5.96 6.00 6.20 6.50 6.20 86.58 375.905.976.606.706.506.006.556.8074 86.59 6.75 5.92 6.00 6.15 6.50 6.15 86.60 385.855.936.406.556.405.906.506.7125 86.61 6.75 5.88 5.90 6.10 6.50 6.10 86.62 395.805.896.206.406.305.806.406.6054 86.63 6.75 5.84 5.80 6.05 6.50 6.05 86.64 405.755.856.006.256.205.706.306.5000 86.65 41 5.70 5.81 5.90 6.10 6.10 5.60 6.20 6.3540 86.66 6.75 5.76 5.60 5.90 6.50 5.95 86.67 425.655.775.805.956.005.506.106.2087 86.68 6.75 5.72 5.50 5.80 6.50 5.90 86.69 435.605.735.705.805.905.456.006.0622 86.70 6.65 5.68 5.40 5.70 6.50 5.85 86.71 445.555.695.605.655.805.405.905.9048 87.1 6.55 5.64 5.30 5.60 6.50 5.80 87.2 455.505.655.505.505.705.355.805.7500 87.3 6.45 5.60 5.20 5.50 6.50 5.75 87.4 465.455.625.455.455.605.305.705.6940 87.5 6.35 5.56 5.10 5.40 6.40 5.70 87.6 475.405.595.405.405.505.255.65 5.6375 87.7 6.25 5.52 5.00 5.30 6.30 87.8 485.355.565.355.355.455.205.60 5.5822 87.9 6.15 5.48 5.00 5.20 6.20 87.10 495.305.535.305.305.405.155.55 5.5404 87.11 6.05 5.44 5.00 5.10 6.10 87.12 505.255.505.255.255.355.105.50 5.5000 87.13 5.95 5.40 5.00 5.00 6.00 87.14 515.205.455.255.205.305.055.45 5.4384 87.15 5.85 5.36 5.00 5.00 5.90 87.16 525.155.405.255.155.255.005.40 5.3776 87.17 5.75 5.32 5.00 5.00 5.80 87.18 535.105.355.255.105.255.005.35 5.3167 87.19 5.65 5.28 5.00 5.00 5.70 87.20 545.055.305.255.055.255.005.30 5.2826 87.21 5.55 5.24 5.00 5.00 5.60 87.22 555.005.255.25 5.005.255.005.25 5.2500 87.23 5.45 5.20 5.00 5.50 87.24 565.005.205.25 5.005.255.005.255.2500 87.25 5.35 5.16 5.00 5.40 5.20 87.26 575.005.155.25 5.005.255.005.255.2500 87.27 5.25 5.12 5.00 5.30 5.15 87.28 585.005.105.255.005.255.005.255.2500 87.29 595.005.055.255.005.255.005.255.2500 87.30 5.25 5.04 5.20 5.00 5.10 5.05 87.31 605.005.00 5.255.005.255.005.255.2500 87.32 5.25 5.30 5.00 5.00 87.33 615.005.00 5.255.005.255.005.255.2500 87.34 5.25 5.40 5.00 5.00 87.35 625.005.00 5.255.005.255.005.255.2500 87.36 5.25 5.50 5.00 5.00 87.37 635.005.00 5.255.005.255.005.255.2500 87.38 5.25 5.60 5.00 5.00 87.39 645.005.00 5.255.005.255.005.255.2500 87.40 5.25 5.70 5.00 5.00 87.41 655.005.00 5.255.005.255.005.255.2500 87.42 5.25 5.70 5.00 5.00 87.43 665.005.00 5.255.005.255.005.255.2500 87.44 5.25 5.70 5.00 5.00 87.45 675.005.00 5.255.005.255.005.255.2500 87.46 5.25 5.70 5.00 5.00 87.47 685.005.00 5.255.005.255.005.255.2500 87.48 5.25 5.70 5.00 5.00 87.49 695.005.00 5.255.005.255.005.255.2500 87.50 5.25 5.70 5.00 5.00 87.51 705.005.00 5.255.005.255.005.255.2500 87.52 5.25 5.70 5.00 5.00 87.53 715.005.005.0087.54 5.25 5.70 87.55 (c) The actuarial valuation must use the applicable 87.56 following payroll growth assumption for calculating the 87.57 amortization requirement for the unfunded actuarial accrued 87.58 liability where the amortization retirement is calculated as a 87.59 level percentage of an increasing payroll: 87.60 payroll growth 87.61 plan assumption 87.62 general state employees retirement plan 5.00% 87.63 correctional state employees retirement plan 5.00 87.64 state patrol retirement plan 5.00 87.65 legislators retirement plan 5.00 88.1 elective state officers retirement plan 5.00 88.2 judges retirement plan 5.00 88.3 general public employees retirement plan 6.00 88.4 public employees police and fire 88.5 retirement plan 6.00 88.6 local government correctional service 88.7 retirement plan 6.00 88.8 teachers retirement plan 5.00 88.9 Duluth teachers retirement plan 5.00 88.10 Minneapolis teachers retirement plan 5.00 88.11 St. Paul teachers retirement plan 5.00 88.13 Subd.4e9. [OTHER ASSUMPTIONS.] The actuarial valuation 88.14 must use assumptions concerning mortality, disability, 88.15 retirement, withdrawal, retirement age, and any other relevant 88.16 demographic or economic factor. These assumptions must be set 88.17 at levels consistent with those determined in the most recent 88.18 quadrennial experience study completed under subdivision 5, if 88.19 required, or representative of the best estimate of future 88.20 experience, if a quadrennial experience study is not required. 88.21 The actuarial valuation must contain an exhibit indicating any 88.22 actuarial assumptions used in preparing the valuation report. 88.23 Subd.4f10. [PUBLIC SECTOR ACCOUNTING DISCLOSURE 88.24 INFORMATION.] The actuarial valuation must contain those 88.25 actuarial calculations that are necessary to allow the 88.26 retirement plan administration or participating employing units 88.27 to prepare the pension-related portions of annual financial 88.28 reporting that meet generally accepted accounting principles for 88.29 the public sector. 88.30 Subd.4g11. [AMORTIZATION CONTRIBUTIONS.] (a) In addition 88.31 to the exhibit indicating the level normal cost, the actuarial 88.32 valuation must contain an exhibit indicating the additional 88.33 annual contribution sufficient to amortize the unfunded 88.34 actuarial accrued liability. For funds governed by chapters 3A, 88.35 352, 352B, 352C, 353, 354, 354A, and 490, the additional 88.36 contribution must be calculated on a level percentage of covered 88.37 payroll basis by the established date for full funding in effect 88.38 when the valuation is prepared. For funds governed by chapter 88.39 3A, sections 352.90 through 352.951, chapters 352B, 352C, 88.40 sections 353.63 through 353.68, and chapters 353C, 354A, and 88.41 490, the level percent additional contribution must be 89.1 calculated assuming annual payroll growth of 6.5 percent. For 89.2 funds governed by sections 352.01 through 352.86 and chapter 89.3 354, the level percent additional contribution must be 89.4 calculated assuming an annual payroll growth of five percent. 89.5 For the fund governed by sections 353.01 through 353.46, the 89.6 level percent additional contribution must be calculated 89.7 assuming an annual payroll growth of six percent. For all other 89.8 funds, the additional annual contribution must be calculated on 89.9 a level annual dollar amount basis. 89.10 (b) For any fund other than the Minneapolis employees 89.11 retirement fund and the public employees retirement association 89.12 general plan, if there has not been a change in the actuarial 89.13 assumptions used for calculating the actuarial accrued liability 89.14 of the fund, a change in the benefit plan governing annuities 89.15 and benefits payable from the fund, a change in the actuarial 89.16 cost method used in calculating the actuarial accrued liability 89.17 of all or a portion of the fund, or a combination of the three, 89.18 which change or changes by itself or by themselves without 89.19 inclusion of any other items of increase or decrease produce a 89.20 net increase in the unfunded actuarial accrued liability of the 89.21 fund, the established date for full funding is the first 89.22 actuarial valuation date occurring after June 1, 2020. 89.23 (c) For any fund or plan other than the Minneapolis 89.24 employees retirement fund and the public employees retirement 89.25 association general plan, if there has been a change in any or 89.26 all of the actuarial assumptions used for calculating the 89.27 actuarial accrued liability of the fund, a change in the benefit 89.28 plan governing annuities and benefits payable from the fund, a 89.29 change in the actuarial cost method used in calculating the 89.30 actuarial accrued liability of all or a portion of the fund, or 89.31 a combination of the three, and the change or changes, by itself 89.32 or by themselves and without inclusion of any other items of 89.33 increase or decrease, produce a net increase in the unfunded 89.34 actuarial accrued liability in the fund, the established date 89.35 for full funding must be determined using the following 89.36 procedure: 90.1 (i) the unfunded actuarial accrued liability of the fund 90.2 must be determined in accordance with the plan provisions 90.3 governing annuities and retirement benefits and the actuarial 90.4 assumptions in effect before an applicable change; 90.5 (ii) the level annual dollar contribution or level 90.6 percentage, whichever is applicable, needed to amortize the 90.7 unfunded actuarial accrued liability amount determined under 90.8 item (i) by the established date for full funding in effect 90.9 before the change must be calculated using the interest 90.10 assumption specified in subdivision4d8 in effect before the 90.11 change; 90.12 (iii) the unfunded actuarial accrued liability of the fund 90.13 must be determined in accordance with any new plan provisions 90.14 governing annuities and benefits payable from the fund and any 90.15 new actuarial assumptions and the remaining plan provisions 90.16 governing annuities and benefits payable from the fund and 90.17 actuarial assumptions in effect before the change; 90.18 (iv) the level annual dollar contribution or level 90.19 percentage, whichever is applicable, needed to amortize the 90.20 difference between the unfunded actuarial accrued liability 90.21 amount calculated under item (i) and the unfunded actuarial 90.22 accrued liability amount calculated under item (iii) over a 90.23 period of 30 years from the end of the plan year in which the 90.24 applicable change is effective must be calculated using the 90.25 applicable interest assumption specified in subdivision4d8 in 90.26 effect after any applicable change; 90.27 (v) the level annual dollar or level percentage 90.28 amortization contribution under item (iv) must be added to the 90.29 level annual dollar amortization contribution or level 90.30 percentage calculated under item (ii); 90.31 (vi) the period in which the unfunded actuarial accrued 90.32 liability amount determined in item (iii) is amortized by the 90.33 total level annual dollar or level percentage amortization 90.34 contribution computed under item (v) must be calculated using 90.35 the interest assumption specified in subdivision4d8 in effect 90.36 after any applicable change, rounded to the nearest integral 91.1 number of years, but not to exceed 30 years from the end of the 91.2 plan year in which the determination of the established date for 91.3 full funding using the procedure set forth in this clause is 91.4 made and not to be less than the period of years beginning in 91.5 the plan year in which the determination of the established date 91.6 for full funding using the procedure set forth in this clause is 91.7 made and ending by the date for full funding in effect before 91.8 the change; and 91.9 (vii) the period determined under item (vi) must be added 91.10 to the date as of which the actuarial valuation was prepared and 91.11 the date obtained is the new established date for full funding. 91.12 (d) For the Minneapolis employees retirement fund, the 91.13 established date for full funding is June 30, 2020. 91.14 (e) For the general employees retirement plan of the public 91.15 employees retirement associationgeneral plan, the established 91.16 date for full funding is June 30, 2031. 91.17 (f) For the retirement plans for which the annual actuarial 91.18 valuation indicates an excess of valuation assets over the 91.19 actuarial accrued liability, the valuation assets in excess of 91.20 the actuarial accrued liability must be recognized as a 91.21 reduction in the current contribution requirements by an amount 91.22 equal to the amortization of the excess expressed as a level 91.23 percentage of pay over a 30-year period beginning anew with each 91.24 annual actuarial valuation of the plan. 91.25 Subd.4h12. [ACTUARIAL GAINS AND LOSSES.] The actuarial 91.26 valuation must contain an exhibit consisting of an analysis by 91.27 the actuary explaining the net increase or decrease in the 91.28 unfunded actuarial accrued liability since the last valuation. 91.29 The explanation must subdivide the net increase or decrease in 91.30 the unfunded actuarial accrued liability into at least the 91.31 following parts: 91.32(a)(1) increases or decreases in the unfunded actuarial 91.33 accrued liability because of changes in benefits; 91.34(b)(2) increases and decreases in the unfunded actuarial 91.35 accrued liability because of changes in actuarial assumptions; 91.36(c)(3) increases or decreases in the unfunded actuarial 92.1 accrued liability attributable to actuarial gains or losses 92.2 resulting from any experience deviations from the assumptions on 92.3 which the valuation is based, as follows: 92.4 (i) actual investment earnings; 92.5 (ii) actual postretirement mortality rates; 92.6 (iii) actual salary increase rates; and 92.7 (iv) the remainder of the increase or decrease not 92.8 attributable to any separate source; 92.9(d)(4) increases or decreases in unfunded actuarial 92.10 accrued liability because of other reasons, including the effect 92.11 of any amortization contribution paid or additional amortization 92.12 contribution previously calculated but unpaid; and 92.13(e)(5) increases or decreases in unfunded actuarial 92.14 accrued liability because of changes in eligibility requirements 92.15 or groups included in the membership of the fund. 92.16 Subd.4i13. [MEMBERSHIP TABULATION.] (a) The actuarial 92.17 valuation must contain a tabulation of active membership and 92.18 annuitants in the fund. If the membership of a fund is under 92.19 more than one general benefit program, a separate tabulation 92.20 must be made for each general benefit program. 92.21 (b) The tabulations must be prepared by the administration 92.22 of the pension fund and must contain the following information: 92.23 (1) Active members Number 92.24 As of last valuation date 92.25 New entrants 92.26 Total 92.27 Separations from active service 92.28 Refund of contributions 92.29 Separation with deferred annuity 92.30 Separation with neither refund 92.31 nor deferred annuity 92.32 Disability 92.33 Death 92.34 Retirement with service annuity 92.35 Total separations 92.36 As of current valuation date 93.1 (2) Annuitants Number 93.2 As of last valuation date 93.3 New entrants 93.4 Total 93.5 Terminations 93.6 Deaths 93.7 Other 93.8 Total terminations 93.9 As of current valuation date 93.10 (c) The tabulation required under paragraph (b), clause 93.11 (2), must be made separately for each of the following classes 93.12 of benefit recipients: 93.13 (1) service retirement annuitants; 93.14 (2) disability benefit recipients; 93.15 (3) survivor benefit recipients; and 93.16 (4) deferred annuitants. 93.17 Subd.4j14. [ADMINISTRATIVE EXPENSES.] (a) The actuarial 93.18 valuation must indicate the administrative expenses of the fund, 93.19 expressed both in dollars and as a percentage of covered payroll. 93.20 (b) Administrative expenses are the costs incurred by the 93.21 retirement plans in the course of operating the plan, excluding 93.22 investment expenses. Investment expenses include all expenses 93.23 incurred for the retention of professional external investment 93.24 managers and professional investment consultants, custodian bank 93.25 fees, investment transaction costs, and the costs incurred by 93.26 the retirement plans to manage investment portfolios or assets 93.27 internally. Investment expenses must be deducted from the 93.28 investment return used in the actuarial valuation, and must not 93.29 be included in administrative expenses when calculating the 93.30 allowance for expenses. 93.31 Subd.4k15. [BENEFIT PLAN SUMMARY.] The actuarial 93.32 valuation must contain a summary of the principal provisions of 93.33 the benefit plan upon which the valuation is based. 93.34 Subd.516. [QUADRENNIAL EXPERIENCE STUDY; CONTENTS.] A 93.35 quadrennial experience study, if required, must contain an 93.36actuarialanalysis by the approved actuary of the experience of 94.1 the fund and a comparison of the experience with the actuarial 94.2 assumptions on which the most recent actuarial valuation of the 94.3 retirement fund was based. 94.4 Subd.617. [ACTUARIAL SERVICES BY APPROVED ACTUARIES.] 94.5 (a) The actuarial valuation or quadrennial experience study must 94.6 be made and any actuarial consulting services for a retirement 94.7 fund or plan must be provided by an approved actuary. The 94.8 actuarial valuation or quadrennial experience study must include 94.9 a signed written declaration that it has been prepared according 94.10 to sections 356.20 to 356.23 and according to the most recent 94.11 standards for actuarial work adopted by the legislative 94.12 commission on pensions and retirement. 94.13 (b) Actuarial valuations,or experience studies prepared by 94.14 an approved actuary retained by a retirement fund or plan must 94.15 be submitted to the legislative commission on pensions and 94.16 retirement within ten days of the submission of the document to 94.17 the retirement fund or plan. 94.18 Subd.718. [ESTABLISHMENT OF ACTUARIAL ASSUMPTIONS.] (a) 94.19 The actuarial assumptions used for the preparation of actuarial 94.20 valuations under this section that are other than those set 94.21 forth in this section may be changed only with the approval of 94.22 the legislative commission on pensions and retirement. 94.23 (b) A change in the applicable actuarial assumptions may be 94.24 proposed by the governing board of the applicable pension fund 94.25 or relief association, by the actuary retained by the 94.26 legislative commission on pensions and retirement, by the 94.27 actuarial advisor to a pension fund governed by chapter 352, 94.28 353, 354, or 354A, or by the actuary retained by a local police 94.29 or firefighters relief association governed by sections 69.77 or 94.30 69.771 to 69.776, if one is retained. 94.31 Sec. 8. Minnesota Statutes 2000, section 356.216, is 94.32 amended to read: 94.33 356.216 [CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE 94.34 AND FIRE FUNDS.] 94.35 (a) The provisions of section 356.215governingthat govern 94.36 the contents of actuarial valuationsshallmust apply to any 95.1 local police or fire pension fund or relief association required 95.2 to make an actuarial report under this section, except as 95.3 follows: 95.4 (1) in calculating normal cost and other requirements, if 95.5 required to be expressed as a level percentage of covered 95.6 payroll, the salaries used in computing covered payrollshall95.7 must be the maximum rate of salaryfromon which retirement and 95.8 survivorship credits and amounts of benefits are determined and 95.9 from which any member contributions are calculated and deducted; 95.10 (2) in lieu of the amortization date specified in section 95.11 356.215, subdivision4g11, the appropriate amortization target 95.12 date specified in section 69.77, subdivision 2b, or 69.773, 95.13 subdivision 4, clause (c),shallmust be used in calculating any 95.14 required amortization contribution; 95.15 (3) in addition to the tabulation of active members and 95.16 annuitants provided for in section 356.215, subdivision4i13, 95.17 the member contributions for active members for the calendar 95.18 year and the prospective annual retirement annuities under the 95.19 benefit plan for active membersshallmust be reported; 95.20 (4) actuarial valuations requiredpursuant tounder section 95.21 69.773, subdivision 2,shallmust be made at least every four 95.22 years and actuarial valuations requiredpursuant tounder 95.23 section 69.77 shall be made annually;and95.24 (5) the actuarial balance sheet showing accrued assets 95.25 valued at market value if the actuarial valuation is required to 95.26 be prepared at least every four years or valued as current 95.27 assets under section 356.215, subdivision 1, clause (6), or 95.28 paragraph (b), whichever applies, if the actuarial valuation is 95.29 required to be prepared annually, actuarial accrued liabilities, 95.30 and the unfunded actuarial accrued liabilityshallmust include 95.31 the following required reserves: 95.32(a)(i) For active members 95.33 1. Retirement benefits 95.34 2. Disability benefits 95.35 3. Refund liability due to death or withdrawal 95.36 4. Survivors' benefits 96.1(b)(ii) For deferred annuitants' benefits 96.2(c)(iii) For former members without vested rights 96.3(d)(iv) For annuitants 96.4 1. Retirement annuities 96.5 2. Disability annuities 96.6 3. Surviving spouses' annuities 96.7 4. Surviving children's annuities 96.8 In addition to those required reserves, separate items 96.9shallmust be shown for additional benefits, if any, which may 96.10 not be appropriately included in the reserves listed above.; and 96.11 (6) actuarial valuationsshall beare due by the first day 96.12 of the seventh month after the end of the fiscal year which the 96.13 actuarial valuation covers. 96.14 (b) Forathe Minneapolis firefighters relief association 96.15 or the Minneapolis police relief associationin a city of the96.16first class with a population of more than 300,000, the 96.17 following provisions additionally apply: 96.18 (1) in calculating the actuarial balance sheet, unfunded 96.19 actuarial accrued liability, and amortization contribution of 96.20 the relief association, "current assets" means the value of all 96.21 assets at cost, including realized capital gains and losses, 96.22 plus or minus, whichever applies, the average value of total 96.23 unrealized capital gains or losses for the most recent 96.24 three-year period ending with the end of the plan year 96.25 immediately preceding the actuarial valuation report 96.26 transmission date; and 96.27 (2) in calculating the applicable portions of the actuarial 96.28 valuation, an annual preretirement interest assumption of six 96.29 percent, an annual postretirement interest assumption of six 96.30 percent, and an annual salary increase assumption of four 96.31 percent must be used. 96.32 Sec. 9. Minnesota Statutes 2000, section 356.217, is 96.33 amended to read: 96.34 356.217 [MODIFICATIONS IN ACTUARIAL SERVICES.] 96.35 (a) The cost of any requested benefit projections prepared 96.36 by the commission-retained actuary relating to the Minnesota 97.1 postretirement investment fundforat the request of the state 97.2 board of investment is payable by the state board of investment. 97.3 (b) Actuarial valuations under section 356.215, for July 1, 97.4 1991, and thereafter, are not required to have an individual 97.5 commentary section. The commentary section, if omitted from the 97.6 individual plan actuarialvaluationvaluations, must be included 97.7 in an appropriate generalized format as part of the report to 97.8 the legislature under section 3.85, subdivision 11. 97.9 (c) Actuarial valuations under section 356.215, for July 1, 97.10 1991, and thereafter, are not required to contain separate 97.11 actuarial valuation results for basic and coordinated programs 97.12 unless each program has a membership of at least ten percent of 97.13 the total membership of the fund. Actuarial valuations under 97.14 section 356.215, for July 1, 1991, and thereafter, are not 97.15 required to contain cash flow forecasts. 97.16 (d) Actuarial valuations of the public employees police and 97.17 fire fund local consolidation accounts for July 1, 1991, and 97.18 thereafter, are not required to contain separate tabulations or 97.19 summaries of active member, service retirement, disability 97.20 retirement, and survivor data for each local consolidation 97.21 account. 97.22 (e) The commission-retained actuary is: 97.23 (1) required to publish experience findings for those 97.24 retirement plans for which experience findings are required only 97.25 on a quadrennial basis for the four-year period ending June 30, 97.26 1992, and every four years thereafter; 97.27 (2) not required to prepare a separate experience analysis 97.28 or publish separate experience findings for basic and 97.29 coordinated programs if separate actuarial valuation results for 97.30 the programs are not required; and 97.31 (3) not required to calculate investment rate of return 97.32 experience results on any basis other than current asset value 97.33 as defined in section 356.215, subdivision 1,clause97.34(6)paragraph (f). 97.35 Sec. 10. Minnesota Statutes 2000, section 356.219, is 97.36 amended to read: 98.1 356.219 [DISCLOSURE OF PUBLIC PENSION PLAN INVESTMENT 98.2 PORTFOLIO AND PERFORMANCE INFORMATION.] 98.3 Subdivision 1. [REPORT REQUIRED.] (a) Except as indicated 98.4 in subdivision 4, the state board of investment, on behalf of 98.5 the public pension funds and programs for which it is the 98.6 investment authority, and any Minnesota public pension plan that 98.7 is not fully invested through the state board of investment, 98.8 including a local police or firefighters' relief association 98.9 governed by sections 69.77 or 69.771 to 69.775, shall report the 98.10 information specified in subdivision 3 to the state auditor. 98.11 The state auditor may prescribe a form or forms for the purposes 98.12 of the reporting requirements contained in this section. 98.13 (b) A local police or firefighters' relief association 98.14 governed by section 69.77 or sections 69.771 to 69.775 is fully 98.15 invested during a given calendar year for purposes of this 98.16 section if all assets of the applicable pension plan beyond 98.17 sufficient cash equivalent investments to cover six months 98.18 expected expenses are invested under section 11A.17. The board 98.19 of any fully invested public pension plan remains responsible 98.20 for submitting investment policy statements and subsequent 98.21 revisions as required by subdivision 3, paragraph (a). 98.22 (c) For purposes of this section, the state board of 98.23 investment is considered to be the investment authority for any 98.24 Minnesota public pension fund required to be invested by the 98.25 state board of investment under section 11A.23, or for any 98.26 Minnesota public pension fund authorized to invest in the 98.27 supplemental investment fund under section 11A.17 and which is 98.28 fully invested by the state board of investment. 98.29 Subd. 2. [ASSET CLASS DEFINITION.] (a) For purposes of 98.30 this section, "asset class" means any of the following asset 98.31 groupings as authorized in applicable law, bylaws, or articles 98.32 of incorporation: 98.33 (1) cash and any cash equivalent investments with 98.34 maturities of one year or less when issued; 98.35 (2) debt securities with maturities greater than one year 98.36 when issued, including but not limited to mortgage participation 99.1 certificates and pools, asset backed securities, guaranteed 99.2 investment contracts, and authorized government and corporate 99.3 obligations of corporations organized under laws of the United 99.4 States or any state, or the Dominion of Canada or its provinces; 99.5 (3) stocks or convertible issues of any corporation 99.6 organized under laws of the United States or any state, or the 99.7 Dominion of Canada or its provinces, or any corporation listed 99.8 on the New York Stock Exchange or the American Stock Exchange; 99.9 (4) international stocks or convertible issues; 99.10 (5) international debt securities; and 99.11 (6) real estate and venture capital. 99.12 (b) If the pension plan is investing under section 69.77, 99.13 subdivision 2g, section 69.775, or any other applicable law, in 99.14 open-end investment companies registered under the federal 99.15 Investment Company Act of 1940, or in the Minnesota supplemental 99.16 investment fund under section 11A.17, this investment must be 99.17 included under an asset class indicated in paragraph (a), 99.18 clauses (1) through (6), as appropriate. If the investment 99.19 vehicle includes underlying securities from more than one asset 99.20 class as indicated by paragraph (a), clauses (1) through (6), 99.21 the investment may be treated as a separate asset class. 99.22 Subd. 3. [CONTENT OF REPORTS.] (a) The report required by 99.23 subdivision 1 must include a written statement of the investment 99.24 policy in effect on June 30, 1997, if that statement has not 99.25 been previously submitted. Following that date, subsequent 99.26 reports must include investment policy changes and the effective 99.27 date of each policy change rather than a complete statement of 99.28 investment policy, unless the state auditor requests submission 99.29 of a complete current statement. The report must also include 99.30 the information required by the following paragraphs, as 99.31 applicable. 99.32 (b) If a public pension plan has a total market value of 99.33 $10,000,000 or more as of the beginning of the calendar year, 99.34 the report required by subdivision 1 must include the market 99.35 value of the total portfolio and the market value of each 99.36 investment account, investment portfolio, or asset class 100.1 included in the pension fund as of the beginning of the calendar 100.2 year and for each month, and the amount and date of each 100.3 injection and withdrawal to the total portfolio and to each 100.4 investment account, investment portfolio, or asset class. If a 100.5 public pension plan once files a report under this paragraph, it 100.6 must continue reporting under this paragraph for any subsequent 100.7 year in which the public pension plan is not fully invested as 100.8 specified in subdivision 1, paragraph (b), even if asset values 100.9 drop below $10,000,000 in market value inathat subsequent year. 100.10 (c) For public pension plans to which paragraph (b) 100.11 applies, the report required by subdivision 1 must also include 100.12 a calculation of the total time-weighted rate of return 100.13 available from index-matching investments assuming the asset 100.14 class performance targets and target asset mix indicated in the 100.15 written statement of investment policy. The provided 100.16 information must include a description of indices used in the 100.17 analyses and an explanation of why those indices are 100.18 appropriate. This paragraph does not apply to any fully 100.19 invested plan, as defined by subdivision 1, paragraph (b). 100.20 Reporting by the state board of investment under this paragraph 100.21 is limited to information on the Minnesota public pension plans 100.22 required to be invested by the state board of investment under 100.23 section 11A.23. 100.24 (d) If a public pension plan has a total market value of 100.25 less than $10,000,000 as of the beginning of the calendar year 100.26 and was never required to file under paragraph (b), the report 100.27 required by subdivision 1 must include the amount and date of 100.28 each total portfolio injection and withdrawal. In addition, the 100.29 report must include the market value of the total portfolio as 100.30 of the beginning of the calendar year and for each quarter. 100.31 (e) Any public pension plan reporting under paragraph (b) 100.32 or (d) may include computed time-weighted rates of return with 100.33 the report, in addition to all other required information, as 100.34 applicable. If these returns are supplied, the individual who 100.35 computed the returns must certify that the returns are net of 100.36 all costs and fees, including investment management fees, and 101.1 that the procedures used to compute the returns are consistent 101.2 with bank administration institute studies of investment 101.3 performance measurement and association of investment management 101.4 and research presentation standards. 101.5 (f) For public pension plans reporting under paragraph (d), 101.6 the public pension plan must retain supporting information 101.7 specifying the date and amount of each injection and withdrawal 101.8 to each investment account and investment portfolio. The public 101.9 pension plan must also retain the market value of each 101.10 investment account and investment portfolio at the beginning of 101.11 the calendar year and for each quarter. Information that is 101.12 required to be collected and retained for any given year or 101.13 years under this paragraph must be submitted to the office of 101.14 the state auditor if the office of the state auditor requests in 101.15 writing that the information be submitted by a public pension 101.16 plan or plans, or be submitted by the state board of investment 101.17 for any plan or plans for which the state board of investment is 101.18 the investment authority under this section. If the state 101.19 auditor requests information under this subdivision, and the 101.20 public plan fails to comply, the pension planwill beis subject 101.21 to penalties under subdivision 5, unless penalties are waived by 101.22 the state auditor under that subdivision. 101.23 Subd. 4. [ALTERNATIVE REPORTING; CERTAIN PLANS.] In lieu 101.24 of requirements in subdivision 3, the applicable administration 101.25 for the individual retirement account plans under chapters 354B 101.26 and 354D and for the University of Minnesota faculty retirement 101.27 plan shall submit computed time-weighted rates of return to the 101.28 office of the state auditor. These time-weighted rates of 101.29 return must cover the most recent complete calendar year, and 101.30 must be computed separately for each investment option available 101.31 to plan members. To the extent feasible, the returns must be 101.32 computed net of all investment costs, fees, and charges, so that 101.33 the computed return reflects the net time-weighted return 101.34 available to the investor. If this is not practical, the 101.35 existence of any remaining investment cost, fee, or charge which 101.36 could further lower the net return must be disclosed. The 102.1 procedures used to compute the returns must be consistent with 102.2 bank administration institute studies of investment performance 102.3 measurement and association of investment management and 102.4 research presentation standards, or, if applicable, securities 102.5 exchange commission requirements. The individual who computes 102.6 the returns must certify that the supplied returns comply with 102.7 this subdivision. The applicable plan administrator must also 102.8 submit, with the return information, the total amounts invested 102.9 by the plan members, in aggregate, in each investment option as 102.10 of the last day of the calendar year. 102.11 Subd. 5. [PENALTY FOR NONCOMPLIANCE.] Failure to comply 102.12 with the reporting requirements of this sectionshallmust 102.13 result in a withholding of all state aid or state appropriation 102.14 to which the pension plan may otherwise be directly or 102.15 indirectly entitled until the pension plan has complied with the 102.16 reporting requirements. The state auditor shall instruct the 102.17 commissioners of revenue and finance to withhold any state aid 102.18 or state appropriation from any pension plan that fails to 102.19 comply with the reporting requirements contained in this 102.20 section, until the pension plan has complied with the reporting 102.21 requirements. The state auditor may waive the withholding of 102.22 state aid or state appropriations if the state auditor 102.23 determines in writing that compliance would create an excessive 102.24 hardship for the pension plan. 102.25 Subd. 6. [INVESTMENT DISCLOSURE REPORT.] (a) The state 102.26 auditor shall prepare an annual report to the legislature on the 102.27 investment performance of the various public pension plans 102.28 subject to this section. The content of the report is specified 102.29 in paragraphs (b) to (e). 102.30 (b) For each public pension plan reporting under 102.31 subdivision 3, paragraph (b), the state auditor shall compute 102.32 and report total portfolio and asset class time-weighted rates 102.33 of return, net of all investment-related costs and fees. 102.34 (c) For each public pension plan reporting under 102.35 subdivision 3, paragraph (d), the state auditor shall compute 102.36 and report total portfolio time-weighted rates of return, net of 103.1 all costs and fees. If the state auditor has requested data for 103.2 a plan under subdivision 3, paragraph (f), the state auditor may 103.3 also compute and report asset class time-weighted rates of 103.4 return, net of all costs and fees. 103.5 (d) The report by the state auditor must include the 103.6 information submitted by the pension plans under subdivision 3, 103.7 paragraph (c), or a synopsis of that information. 103.8 (e) The report by the state auditor may also include a 103.9 presentation of multiyear performance, information collected 103.10 under subdivision 4, and any other information or analysis 103.11 deemed appropriate by the state auditor. 103.12 Subd. 7. [EXPENSE OF REPORT.] All administrative expenses 103.13 incurred relating to the investment report by the state auditor 103.14 described in subdivision 6 must be borne by the office of the 103.15 state auditor and may not be charged back to the entities 103.16 described in subdivisions 1 or 4. 103.17 Subd. 8. [TIMING OF REPORTS.] (a) For salaried firefighter 103.18 relief associations, police relief associations, and volunteer 103.19 firefighter relief associations, the information required under 103.20 this section must be submitted by the due date for reports 103.21 required under section 69.051, subdivision 1 or 1a, as 103.22 applicable. If a relief association satisfies the definition of 103.23 a fully invested plan under subdivision 1, paragraph (b), for 103.24 the calendar year covered by the report required under section 103.25 69.051, subdivision 1 or 1a, as applicable, the chief 103.26 administrative officer of the covered pension plan shall certify 103.27 that compliance on a form prescribed by the state auditor. The 103.28 state auditor shall transmit annually to the state board of 103.29 investment a list or lists of covered pension plans which 103.30 submitted certifications,in order to facilitate reporting by 103.31 the state board of investment under paragraph (c) of this 103.32 subdivision. 103.33 (b) For the Minneapolis teachers retirement fund 103.34 association, the St. Paul teachers retirement fund association, 103.35 the Duluth teachers retirement fund association, the Minneapolis 103.36 employees retirement fund, the University of Minnesota faculty 104.1 supplemental retirement plan, and the applicable administrators 104.2 for the University of Minnesota faculty retirement plan and the 104.3 individual retirement account plans under chapters 354B and 104.4 354D, the information required under this section must be 104.5 submitted to the state auditor by June 1 of each year. 104.6 (c) The state board of investment, on behalf of pension 104.7 funds specified in subdivision 1, paragraph (c), must report 104.8 information required under this section by September 1 of each 104.9 year. 104.10 Sec. 11. Minnesota Statutes 2000, section 356.22, is 104.11 amended to read: 104.12 356.22 [INTERPRETATION.] 104.13 Subdivision 1. [PROVISION OF ADDITIONAL VALUATIONS.] No 104.14 provision in sections 356.20 to 356.23shallmay be construedto104.15 in any way to limit any of the enumerated pension and retirement 104.16 funds from furnishing additional actuarial valuations or 104.17 experience studies, or additional data and actuarial 104.18 calculations, as may be requested by the legislature or any 104.19 standing committee or by the legislative commission on pensions 104.20 and retirement. 104.21 Subd. 2. [ACCELERATED AMORTIZATION.] No provision in 104.22 sections 356.20 to 356.23shallmay be construed to preclude any 104.23 public pension and retirement fund enumerated in section 356.20, 104.24 subdivision 2, from requesting, or the legislature from 104.25 providing for, the amortization of any unfunded actuarial 104.26 accrued liability in a shorter period of time than by the 104.27 established date for full funding as determinedpursuant to104.28 under section 356.215, subdivision4g11. 104.29 Subd. 3. [ADDITIONAL REQUIRED VALUATIONS.] The legislature 104.30 or any committee or commissionthereof now in existence or104.31hereafter createdwhich has assigned to it the subject of public 104.32 pensions or public retirement plans may require actuarial 104.33 valuations and experience studies in conformity with the 104.34 provisions of sections 356.20 to 356.23 from any public pension 104.35 and retirement plan or fund, whether enumerated in sections 104.36 356.20 to 356.23 or otherwise. 105.1 Sec. 12. Minnesota Statutes 2000, section 356.23, is 105.2 amended to read: 105.3 356.23 [SUPPLEMENTAL VALUATIONS; ALTERNATIVE REPORTS AND 105.4 VALUATIONS.] 105.5 Subdivision 1. [SUPPLEMENTAL ACTUARIAL VALUATIONS.] Any 105.6 supplemental actuarial valuations prepared on behalf of any 105.7 governing or managing board of any pension and retirement fund 105.8 enumerated in section 356.20, subdivision 2, by an approved 105.9 actuary,shallmust be prepared in accordance with the 105.10 applicable provisions of sections 356.20 to 356.23 and with the 105.11 standards adopted by the legislative commission on pensions and 105.12 retirement. Any pension and retirement fund which prepares an 105.13 alternative actuarial valuation under subdivision 2shallalso 105.14 must have a supplemental actuarial valuation prepared. 105.15 Subd. 2. [ALTERNATIVE REPORTS AND VALUATIONS.] In addition 105.16 to the financial reports and actuarial valuations required by 105.17 sections 356.20 to 356.23, the governing or managing board of 105.18 any fund concerned may submit alternative reports and actuarial 105.19 valuations for distribution to the legislature, any of its 105.20 committees, or the legislative commission on pensions and 105.21 retirement on a different basis or on different assumptions than 105.22 are specified in sections 356.20 to 356.23. The assumptions and 105.23 basis of any alternative reports and valuationsshallmust be 105.24 clearly stated in the document. 105.25 LIMITATIONS ON SUPPLEMENTAL AND 105.26 LOCAL RETIREMENT PLANS 105.27 Sec. 13. Minnesota Statutes 2001 Supplement, section 105.28 356.24, subdivision 1, is amended to read: 105.29 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 105.30 for a school district or other governmental subdivision or state 105.31 agency to levy taxes for, or to contribute public funds to a 105.32 supplemental pension or deferred compensation plan that is 105.33 established, maintained, and operated in addition to a primary 105.34 pension program for the benefit of the governmental subdivision 105.35 employees other than: 105.36 (1) to a supplemental pension plan that was established, 106.1 maintained, and operated before May 6, 1971; 106.2 (2) to a plan that provides solely for group health, 106.3 hospital, disability, or death benefits; 106.4 (3) to the individual retirement account plan established 106.5 by chapter 354B; 106.6 (4) to a plan that provides solely for severance pay under 106.7 section 465.72 to a retiring or terminating employee; 106.8 (5) for employees other than personnel employed by the 106.9 board of trustees of the Minnesota state colleges and 106.10 universities and covered under the higher education supplemental 106.11 retirement plan under chapter 354C, if the supplemental plan 106.12 coverage is provided for in a personnel policy of the public 106.13 employer or in the collective bargaining agreement between the 106.14 public employer and the exclusive representative of public 106.15 employees in an appropriate unit, in an amount matching employee 106.16 contributions on a dollar for dollar basis, but not to exceed an 106.17 employer contribution of $2,000 a year per employee; 106.18 (i) to the state of Minnesota deferred compensation plan 106.19 under section 352.96; or 106.20 (ii) in payment of the applicable portion of the 106.21 contribution made to any investment eligible under section 106.22 403(b) of the Internal Revenue Code, if the employing unit has 106.23 complied with any applicable pension plan provisions of the 106.24 Internal Revenue Code with respect to the tax-sheltered annuity 106.25 program during the preceding calendar year; 106.26 (6) for personnel employed by the board of trustees of the 106.27 Minnesota state colleges and universities and not covered by 106.28 clause (5), to the supplemental retirement plan under chapter 106.29 354C, if the supplemental plan coverage is provided for in a 106.30 personnel policy or in the collective bargaining agreement of 106.31 the public employer with the exclusive representative of the 106.32 covered employees in an appropriate unit, in an amount matching 106.33 employee contributions on a dollar for dollar basis, but not to 106.34 exceed an employer contribution of $2,700 a year for each 106.35 employee; 106.36 (7) to a supplemental plan or to a governmental trust to 107.1 save for postretirement health care expenses qualified for 107.2 tax-preferred treatment under the Internal Revenue Code, if the 107.3 supplemental plan coverage is provided for in a personnel policy 107.4 or in the collective bargaining agreement of a public employer 107.5 with the exclusive representative of the covered employees in an 107.6 appropriate unit;or107.7 (8) to the laborer's national industrial pension fund for 107.8 the employees of a governmental subdivision who are covered by a 107.9 collective bargaining agreement that provides for coverage by 107.10 that fund and that sets forth a fund contribution rate, but not 107.11 to exceed an employer contribution of $2,000 per year per 107.12 employee; 107.13 (9) to the plumbers' and pipefitters' national pension fund 107.14 for the employees of a governmental subdivision who are covered 107.15 by a collective bargaining agreement that provides for coverage 107.16 by that fund and that sets forth a fund contribution rate, but 107.17 not to exceed an employer contribution of $2,000 per year per 107.18 employee; 107.19 (10) to the international union of operating engineers 107.20 pension fund for the employees of a governmental subdivision who 107.21 are covered by a collective bargaining agreement that provides 107.22 for coverage by that fund and that sets forth a fund 107.23 contribution rate, but not to exceed an employer contribution of 107.24 $2,000 per year per employee; or 107.25 (11) to a supplemental plan organized and operated under 107.26 the federal Internal Revenue Code, as amended, that is wholly 107.27 and solely funded by the employee's accumulated sick leave, 107.28 accumulated vacation leave, and accumulated severance pay. 107.29 Sec. 14. Minnesota Statutes 2000, section 356.24, 107.30 subdivision 1b, is amended to read: 107.31 Subd. 1b. [VENDOR RESTRICTIONS.] A personnel policy for 107.32 unrepresented employeesor, a collective bargaining agreement 107.33 for represented employees, or a school board for school district 107.34 employees may establish limits on the number of vendors of plans 107.35 covered by the exceptions set forth in subdivision 1 that it 107.36 will utilize and conditions under whichthethose vendors may 108.1 contact employees both during working hours and after working 108.2 hours. 108.3 Sec. 15. Minnesota Statutes 2000, section 356.24, 108.4 subdivision 1c, is amended to read: 108.5 Subd. 1c. [STATE BOARD OF INVESTMENT REVIEW.] (a) Any 108.6 insurance company, mutual fund company, or similar company 108.7 providing investments eligible under section 403(b) of the 108.8 Internal Revenue Code and eligible to receive employer 108.9 contributions under this section may request the state board of 108.10 investment, in conjunction with the department of commerce, to 108.11 review the financial standing of the company, the 108.12 competitiveness of its investment options and returns, and the 108.13 level of all charges and fees impacting those returns. 108.14 (b) The state board of investment may establish a fee for 108.15 each review. The state board of investment must maintain and 108.16 have available a list of all reviewed companies. 108.17 (c) In reviewing companies under this section, the state 108.18 board of investment must not be considered to be acting as a 108.19 fiduciary or to be engaged in a fiduciary activity under chapter 108.20 356A or common law. 108.21 Sec. 16. Minnesota Statutes 2000, section 356.24, 108.22 subdivision 2, is amended to read: 108.23 Subd. 2. [LIMIT ON CERTAIN CONTRIBUTIONS OR BENEFIT 108.24 CHANGES.] No change in benefits or employer contributions in a 108.25 supplemental pension plan to which this section applies that 108.26 occurs after May 6, 1971, is effective without prior legislative 108.27 authorization. 108.28 Sec. 17. Minnesota Statutes 2000, section 356.245, is 108.29 amended to read: 108.30 356.245 [LOCAL ELECTED OFFICIALS.] 108.31 An elected official who is covered by section 353.01, 108.32 subdivision 2a, is eligible to participate in the state of 108.33 Minnesota deferred compensation plan under section 356.24.A108.34 The applicable local governmental unit may make the matching 108.35 employer contributions authorized by that section on the part of 108.36 a participating elected official. 109.1 Sec. 18. Minnesota Statutes 2000, section 356.25, is 109.2 amended to read: 109.3 356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 109.4 EXCLUSIONS.] 109.5 Notwithstanding any other provision of law or charter to 109.6 the contrary, no city, county, public agency or instrumentality, 109.7 or other political subdivisionshall, after August 1, 1975,is 109.8 required or permitted to establish for any of its employeesany109.9 a local pension plan or fund financed in whole or in part from 109.10 public funds, other than a volunteer firefighter's relief 109.11 association that is establishedpursuant tounder chapter 424A 109.12 and is governed by sections 69.771 to 69.776. 109.13 PUBLIC RETIREMENT PLAN PORTABILITY MECHANISMS 109.14 Sec. 19. Minnesota Statutes 2000, section 356.30, is 109.15 amended to read: 109.16 356.30 [COMBINED SERVICE ANNUITY.] 109.17 Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] (a) 109.18 Notwithstanding any provisions of the laws governing the 109.19 retirement plans enumerated in subdivision 3, a person who has 109.20 met the qualifications of paragraph (b) may elect to receive a 109.21 retirement annuity from each enumerated retirement plan in which 109.22 the person has at least one-half year of allowable service, 109.23 based on the allowable service in each plan, subject to the 109.24 provisions of paragraph (c). 109.25 (b) A person may receive, upon retirement, a retirement 109.26 annuity from each enumerated retirement plan in which the person 109.27 has at least one-half year of allowable service, and 109.28 augmentation of a deferred annuity calculated under the laws 109.29 governing each public pension plan or fund named in subdivision 109.30 3, from the date the person terminated all public service if: 109.31 (1) the person has allowable service totaling an amount 109.32 that allows the person to receive an annuity in any two or more 109.33 of the enumerated plans; and 109.34 (2) the person has not begun to receive an annuity from any 109.35 enumerated plan or the person has made application for benefits 109.36 from each applicable plan and the effective dates of the 110.1 retirement annuity with each plan under which the person chooses 110.2 to receive an annuity are within a one-year period. 110.3 (c) The retirement annuity from each plan must be based 110.4 upon the allowable service, accrual rates, and average salary in 110.5 the applicable plan except as further specified or modified in 110.6 the following clauses: 110.7 (1) the laws governing annuities must be the law in effect 110.8 on the date of termination from the last period of public 110.9 service under a covered retirement plan with which the person 110.10 earned a minimum of one-half year of allowable service credit 110.11 during that employment; 110.12 (2) the "average salary" on which the annuity from each 110.13 covered plan in which the employee has credit in a formula plan 110.14shallmust be based on the employee's highest five successive 110.15 years of covered salary during the entire service in covered 110.16 plans; 110.17 (3) the accrual rates to be used by each plan must be those 110.18 percentages prescribed by each plan's formula as continued for 110.19 the respective years of allowable service from one plan to the 110.20 next, recognizing all previous allowable service with the other 110.21 covered plans; 110.22 (4) the allowable service in all the plans must be combined 110.23 in determining eligibility for and the application of each 110.24 plan's provisions in respect to reduction in the annuity amount 110.25 for retirement prior to normal retirement age; and 110.26 (5) the annuity amount payable for any allowable service 110.27 under a nonformula plan of a covered plan must not be affected, 110.28 but such service and covered salary must be used in the above 110.29 calculation. 110.30 (d) This section does not apply to any person whose final 110.31 termination from the last public service under a covered planis110.32prior towas before May 1, 1975. 110.33 (e) For the purpose of computing annuities under this 110.34 section, the accrual rates used by any covered plan, except the 110.35 public employees police and fire plan, the judges' retirement 110.36 fund, and the state patrol retirement plan, must not exceed the 111.1 percent specified in section356.19356.315, subdivision 4, per 111.2 year of service for any year of service or fraction thereof. 111.3 The formula percentage used by the judges' retirement fund must 111.4 not exceed thepercentpercentage rate specified in section 111.5356.19356.315, subdivision 8, per year of service for any year 111.6 of service or fraction thereof. The accrual rate used by the 111.7 public employees police and fire plan and the state patrol 111.8 retirement plan must not exceed thepercentpercentage rate 111.9 specified in section356.19356.315, subdivision 6, per year of 111.10 service for any year of service or fraction thereof. The 111.11 accrual rate or rates used by the legislators retirement plan 111.12 and the elective state officers retirement plan must not exceed 111.13 2.5 percent, but this limit does not apply to the adjustment 111.14 provided under section 3A.02, subdivision 1, paragraph (c), or 111.15 352C.031, paragraph (b). 111.16 (f) Any period of time for which a person has credit in 111.17 more than one of the covered plans must be used only once for 111.18 the purpose of determining total allowable service. 111.19 (g) If the period of duplicated service credit is more than 111.20 one-half year, or the person has credit for more than one-half 111.21 year, with each of the plans, each plan must apply its formula 111.22 to a prorated service credit for the period of duplicated 111.23 service based on a fraction of the salary on which deductions 111.24 were paid to that fund for the period divided by the total 111.25 salary on which deductions were paid to all plans for the period. 111.26 (h) If the period of duplicated service credit is less than 111.27 one-half year, or when added to other service credit with that 111.28 plan is less than one-half year, the service credit must be 111.29 ignored and a refund of contributions made to the person in 111.30 accord with that plan's refund provisions. 111.31 Subd. 2. [REPAYMENT OF REFUNDS.] A person who has service 111.32 credit in one of thefundsretirement plans enumerated in 111.33 subdivision 3 and who is employed or was formerly employed in a 111.34 position covered by one of thesefundscovered plans but also 111.35 has received a refund from any other of thesefundscovered 111.36 plans, may repay the refund to the respectivefundplan under 112.1 terms and conditions that are consistent with the laws governing 112.2 the otherfundplan, except that the person need not be a 112.3 currently contributing member of thefundplan to which the 112.4 refund is repaid at the time the repayment is made. Unless 112.5 otherwise provided by statute, the repayment of a refund under 112.6 this subdivision may only be made within six months following 112.7 termination of employment from a position covered by one of the 112.8fundscovered plans enumerated in subdivision 3 or before the 112.9 date of retirement from thefundplan to which the refund is 112.10 repaid, whichever is earlier. 112.11 Subd. 2a. [PURCHASES OF PRIOR SERVICE.] If a purchase of 112.12 prior service is made under the provisions of Laws 1988, chapter 112.13 709, article 3, or any similar special or general law provision 112.14 which allows a purchase of service credit in any of thefunds112.15 retirement plans enumerated in subdivision 3, the amount of 112.16 required reserves calculated as prescribed in Laws 1988, chapter 112.17 709, article 3, must be paid to eachfundplan based on the 112.18 amount of benefit increase payable from thatfundplan as a 112.19 result of the purchase of prior service. 112.20 Subd. 3. [COVEREDFUNDSPLANS.] This section applies to 112.21 the following retirementfundsplans: 112.22 (1) the general state employees retirementfundplan of the 112.23 Minnesota state retirement system, establishedpursuant tounder 112.24 chapter 352; 112.25 (2) the correctional state employees retirementprogram112.26 plan of the Minnesota state retirement system, 112.27 establishedpursuant tounder chapter 352; 112.28 (3) the unclassified employees retirementplanprogram, 112.29 establishedpursuant tounder chapter 352D; 112.30 (4) the state patrol retirementfundplan, established 112.31pursuant tounder chapter 352B; 112.32 (5) the legislators retirement plan, establishedpursuant112.33tounder chapter 3A; 112.34 (6) the elective state officers' retirement plan, 112.35 establishedpursuant tounder chapter 352C; 112.36 (7) the general employees retirement plan of the public 113.1 employees retirement association, establishedpursuant tounder 113.2 chapter 353; 113.3 (8) the public employees police and firefundretirement 113.4 plan of the public employees retirement association, established 113.5pursuant tounder chapter 353; 113.6 (9)public employeesthe local government correctional 113.7 service retirement plan of the public employees retirement 113.8 association, establishedpursuant tounder chapter 353E; 113.9 (10) the teachers retirement association, established 113.10pursuant tounder chapter 354; 113.11 (11) the Minneapolis employees retirement fund, established 113.12pursuant tounder chapter 422A; 113.13 (12) the Minneapolis teachers retirement fund association, 113.14 establishedpursuant tounder chapter 354A; 113.15 (13) the St. Paul teachers retirement fund association, 113.16 establishedpursuant tounder chapter 354A; 113.17 (14) the Duluth teachers retirement fund association, 113.18 establishedpursuant tounder chapter 354A; and 113.19 (15) the judges' retirement fund, established by sections 113.20 490.121 to 490.132. 113.21 Sec. 20. Minnesota Statutes 2000, section 356.302, is 113.22 amended to read: 113.23 356.302 [DISABILITY BENEFIT WITH COMBINED SERVICE.] 113.24 Subdivision 1. [DEFINITIONS.] (a) The terms used in this 113.25 section are defined in this subdivision. 113.26 (b) "Average salary" means the highest average of covered 113.27 salary for the appropriate period of credited service that is 113.28 required for the calculation of a disability benefit by the 113.29 covered retirement plan and that is drawn from any period of 113.30 credited service and successive years of covered salary in a 113.31 covered retirement plan. 113.32 (c) "Covered retirement plan" or "plan" means a retirement 113.33 plan listed in subdivision 7. 113.34 (d) "Duty-related" means a disabling illness or injury that 113.35 occurred while the person was actively engaged in employment 113.36 duties or that arose out of the person's active employment 114.1 duties. 114.2 (e) "General employee retirement plan" means a covered 114.3 retirement plan listed in subdivision 7, clauses (1) to (8) and 114.4 (13). 114.5 (f) "Occupationally disabled" means the condition of having 114.6 a medically determinable physical or mental impairment that 114.7 makes a person unable to satisfactorily perform the minimum 114.8 requirements of the person's employment position or a 114.9 substantially similar employment position. 114.10 (g) "Public safety employee retirement plan" means a 114.11 covered retirement plan listed in subdivision 7, clauses (9) to 114.12(11)(12). 114.13 (h) "Totally and permanently disabled" means the condition 114.14 of having a medically determinable physical or mental impairment 114.15 that makes a person unable to engage in any substantial gainful 114.16 activity and that is expected to continue or has continued for a 114.17 period of at least one year or that is expected to result 114.18 directly in the person's death. 114.19 Subd. 2. [ENTITLEMENT.] Notwithstanding any provision of 114.20 law to the contrary governing any covered retirement plan, a 114.21 member of a covered retirement plan may receive a combined 114.22 service disability benefit from each covered retirement plan in 114.23 which the person has credit for at least one-half year of 114.24 allowable service if that person meets the applicable qualifying 114.25 conditions. Subdivision 3 applies to a member of a general 114.26 employee retirement plan. Subdivision 4 applies to a member of 114.27 a public safety employee retirement plan. Subdivision 5 applies 114.28 to a member of a covered retirement plan with both general 114.29 employee and public safety employee retirement plan service. 114.30 Subd. 3. [GENERAL EMPLOYEE PLAN ELIGIBILITY REQUIREMENTS.] 114.31 A disabled member of a covered retirement plan who has credit 114.32 for allowable service in a combination of general employee 114.33 retirement plans is entitled to a combined service disability 114.34 benefit if the member: 114.35 (1) is less than 65 years of age on the date of the 114.36 application for the disability benefit; 115.1 (2) has become totally and permanently disabled; 115.2 (3) has credit for allowable service in any combination of 115.3 general employee retirement plans totaling at least three years; 115.4 (4) has credit for at least one-half year of allowable 115.5 service with the current general employee retirement plan before 115.6 the commencement of the disability; 115.7 (5) has at least three continuous years of allowable 115.8 service credit by the general employee retirement plan or has at 115.9 least a total of three years of allowable service credit by a 115.10 combination of general employee retirement plans in a 72-month 115.11 period during which no interruption of allowable service credit 115.12 from a termination of employment exceeded 29 days; and 115.13 (6)iswas not receiving a retirement annuity or disability 115.14 benefit from any covered general employee retirement plan at the 115.15 time of the commencement of the disability. 115.16 Subd. 4. [PUBLIC SAFETY PLAN ELIGIBILITY REQUIREMENTS.] A 115.17 disabled member of a covered retirement plan who has credit for 115.18 allowable service in a combination of public safety employee 115.19 retirement plans is entitled to a combined service disability 115.20 benefit if the member: 115.21 (1) has become occupationally disabled; 115.22 (2) has credit for allowable service in any combination of 115.23 public safety employee retirement plans totaling at least one 115.24 year if the disability is duty-related or totaling at least 115.25 three years if the disability is not duty-related; 115.26 (3) has credit for at least one-half year of allowable 115.27 service with the current public safety employee retirement plan 115.28 before the commencement of the disability; and 115.29 (4)iswas not receiving a retirement annuity or disability 115.30 benefit from any covered public safety employee retirement plan 115.31 at the time of the commencement of the disability. 115.32 Subd. 5. [GENERAL AND PUBLIC SAFETY PLAN ELIGIBILITY 115.33 REQUIREMENTS.] A disabled member of a covered retirement plan 115.34 who has credit for allowable service in a combination of both a 115.35 public safety employee retirementplansplan and general 115.36 employee retirementplansplan must meet the qualifying 116.1 requirements in subdivisions 3 and 4 to receive a combined 116.2 service disability benefit from the applicable general employee 116.3 and public safety employee retirement plans, except that the 116.4 person need only be a member of a covered retirement plan at the 116.5 time of the commencement of the disability and that the minimum 116.6 allowable service requirements of subdivisions 3, clauses (3) 116.7 and (5), and 4, clauses (3) and (4), may be met in any 116.8 combination of covered retirement plans. 116.9 Subd. 6. [COMBINED SERVICE DISABILITY BENEFIT 116.10 COMPUTATION.] (a) The combined service disability benefit from 116.11 each covered retirement plan must be based on the allowable 116.12 service in each retirement plan, except as specified in 116.13 paragraphs (b) to (f). 116.14 (b) The disability benefit must be governed by the law in 116.15 effect for each covered retirement plan on the date of the 116.16 commencement of the member's most recent qualifying disability 116.17 as a member of a covered retirement plan. 116.18 (c) All plans must base the disability benefit on the same 116.19 average salary figure to the extent practicable. 116.20 (d) If the method of the covered retirement plan used to 116.21 compute a disability benefit varies based on the length of 116.22 allowable service credit, the benefit accrual formula 116.23 percentages used by the plan must recognize the allowable 116.24 service credit in the plan as a continuation of any previous 116.25 allowable service credit with other covered retirement plans. 116.26 (e) If the covered retirement plan is a defined benefit or 116.27 formula plan and the method used to compute a disability benefit 116.28 does not vary based on the length of allowable service credit, 116.29 the portion of the specified benefit amount from the plan must 116.30 bear the same proportion to the total specified benefit amount 116.31 as the allowable service credit in that plan bears to the total 116.32 allowable service credit in all covered retirement plans. If 116.33 the covered retirement plan is a defined contribution or 116.34 nonformula plan, the disability benefit amount for allowable 116.35 service under the plan is not affected, but the service and the 116.36 covered salary under the plan must be used as applicable in 117.1 calculations by other covered retirement plans. 117.2 (f) A period for which a person has allowable service 117.3 credit in more than one covered retirement plan must be used 117.4 only once in determining the total allowable service credit for 117.5 calculating the combined service disability benefit, with any 117.6 period of duplicated service credit handledunderas provided in 117.7 section 356.30, subdivision 1,clause (3), items (i) and117.8(j)paragraphs (g) and (h). 117.9 (g) If a person is entitled to a minimum benefit payable 117.10 from one of the public pension plansnamedenumerated in section 117.11 356.30, subdivision 3, the person may receive additional credit 117.12 for only those years of service in another covered pension plan 117.13 that, when added to the years of service in the pension plan 117.14 that is paying the minimum benefit, exceed the years of service 117.15 on which the minimum benefit is based. 117.16 (h) A partially employed recipient of a disability benefit 117.17 must have any current reemployment income plus the total 117.18 disabilitypaymentpayments from all planslistedenumerated in 117.19 subdivision 7 added together, and then compared to their final 117.20 salary rate as a public employee. If current income plus the 117.21 total disability payments exceed the final salary of the person 117.22 at the time of retirement, then disability benefit payments from 117.23 all the planswillmust be reduced on a prorated basis relative 117.24 to the years of service in each fund so that earnings plus 117.25 benefit payments do not exceedtheirthe final salary rate. 117.26 Subd. 7. [COVERED RETIREMENT PLANS.] This section applies 117.27 to the following retirement plans: 117.28 (1) the general state employees retirementfundplan of the 117.29 Minnesota state retirement system, established by chapter 352; 117.30 (2) the unclassified state employees retirementplan117.31 program of the Minnesota state retirement system, established by 117.32 chapter 352D; 117.33 (3) the general employees retirement plan of the public 117.34 employees retirement association, established by chapter 353; 117.35 (4) the teachers retirement association, established by 117.36 chapter 354; 118.1 (5) the Duluth teachers retirement fund association, 118.2 established by chapter 354A; 118.3 (6) the Minneapolis teachers retirement fund association, 118.4 established by chapter 354A; 118.5 (7) the St. Paul teachers retirement fund association, 118.6 established by chapter 354A; 118.7 (8) the Minneapolis employees retirement fund, established 118.8 by chapter 422A; 118.9 (9) the state correctional employees retirement plan of the 118.10 Minnesota state retirement system, established by chapter 352; 118.11 (10) the state patrol retirementfundplan, established by 118.12 chapter 352B; 118.13 (11) the public employees police and firefundplan of the 118.14 public employees retirement association, established by chapter 118.15 353; 118.16 (12)public employeesthe local government correctional 118.17 service retirement plan of the public employees retirement 118.18 association, established by chapter 353E; and 118.19 (13) the judges' retirementfundplan, established by 118.20 sections 490.121 to 490.132. 118.21 Sec. 21. Minnesota Statutes 2000, section 356.303, is 118.22 amended to read: 118.23 356.303 [SURVIVOR BENEFIT WITH COMBINED SERVICE.] 118.24 Subdivision 1. [DEFINITIONS.] (a) The terms used in this 118.25 section are defined in this subdivision. 118.26 (b) "Average salary" means the highest average of covered 118.27 salary for the appropriate period of credited service that is 118.28 required for the calculation of a survivor annuity or a survivor 118.29 benefit, whichever applies, by the covered retirement plan and 118.30 that is drawn from any period of credited service and covered 118.31 salary in a covered retirement plan. 118.32 (c) "Covered retirement plan" or "plan" means a retirement 118.33 planlistedenumerated in subdivision 4. 118.34 (d) "Deceased member" means a person who on the date of 118.35 death was an active member of a covered retirement plan and who 118.36 has reached the minimum age, if any, that is required by the 119.1 covered retirement plan as part of qualifying for a survivor 119.2 annuity or survivor benefit. 119.3 (e) "Surviving child" means a child of a deceased member 119.4 (1) who is unmarried,; (2) who has not reached age 18, or, if a 119.5 full-time student, who has not reached a higher age as specified 119.6inby the applicable covered retirement plan,; and (3) if 119.7 specified by that plan, who was actually dependent on the 119.8 deceased member for a specified proportion of support before the 119.9 deceased member's death. "Surviving child" includes a natural 119.10 child, an adopted child, or a child of a deceased member who is 119.11 conceived during the member's lifetime and who is born after the 119.12 member's death. 119.13 (f) "Surviving spouse" means the legally married husband or 119.14 wife, whichever applies, of the deceased member who was residing 119.15 with the deceased member on the date of death and who, if 119.16 specified by the applicable covered retirement plan, had been 119.17 married to the deceased member for a specified period of time 119.18 before the death of the deceased member. 119.19 (g) "Survivor annuity" means the entitlement to a future 119.20 amount payable to a survivor as the remainder interest of an 119.21 optional annuity form implied by law as having been chosen by a 119.22 deceased member before the date of death and effective on the 119.23 date of death or provided automatically. 119.24 (h) "Survivor benefit" means an entitlement to a future 119.25 amount payable to a survivor that is not included in the 119.26 definition of a survivor annuity. 119.27 Subd. 2. [ENTITLEMENT; ELIGIBILITY.] Notwithstanding 119.28 any provision of law to the contrary governing a covered 119.29 retirement plan, a person who is the survivor of a deceased 119.30 member of a covered retirement plan may receive a combined 119.31 service survivor benefit from each covered retirement plan in 119.32 which the deceased member had credit for at least one-half year 119.33 of allowable service if the deceased member: 119.34 (1) had credit for sufficient allowable service in any 119.35 combination of covered retirement plans to meet any minimum 119.36 allowable service credit requirement of the covered retirement 120.1 fund for qualification for a survivor benefit or annuity; 120.2 (2) had credit for at least one-half year of allowable 120.3 service with the most recent covered retirement plan before the 120.4 date of death and was an active member of that covered 120.5 retirement plan on the date of death; and 120.6 (3) was not receiving a retirement annuity from any covered 120.7 retirement plan on the date of death. 120.8 Subd. 3. [COMBINED SERVICE SURVIVOR BENEFIT COMPUTATION.] 120.9 (a) The combined service survivor annuity or survivor benefit 120.10 from each covered retirement plan must be based on the allowable 120.11 service in each covered retirement plan, except as provided by 120.12 paragraphs (b) to (f). 120.13 (b) The survivor annuity or survivor benefit must be 120.14 governed by the law in effect for each covered retirement plan 120.15 on the date of the death of the deceased member. 120.16 (c) All plans must base the survivor annuity or survivor 120.17 benefit on the same average salary figure if the annuity or 120.18 benefit is salary related. 120.19 (d) If the method of the covered retirement plan used to 120.20 compute a survivor benefit or annuity varies based on the length 120.21 of allowable service credit, the benefit accrual formula 120.22 percentages used by the plan must recognize the allowable 120.23 service credit in the plan as a continuation of any previous 120.24 allowable service credit with other covered retirement plans. 120.25 (e) If the covered retirement plan is a defined benefit or 120.26 formula plan and the method used to compute a survivor benefit 120.27 or annuity does not vary based on the length of allowable 120.28 service credit, the portion of the specified benefit or annuity 120.29 amount from the covered retirement plan must bear the same 120.30 proportion to the total specified benefit or annuity amount as 120.31 the allowable service credit in that plan bears to the total 120.32 allowable service credit in all covered retirement plans. If 120.33 the covered retirement plan is a defined contribution or 120.34 nonformula plan, the survivor benefit amount for allowable 120.35 service under the plan is not affected, but the service and 120.36 covered salary under the plan must be used in calculations by 121.1 other covered retirement plans. 121.2 (f) A period for which aperson hasdeceased member had 121.3 allowable service credit in more than one covered retirement 121.4 plan must be used only once in determining the total allowable 121.5 service credit for calculating the combined service survivor 121.6 annuity or survivor benefit. A period of duplicated service 121.7 credit must be handled as provided in section 356.30, 121.8 subdivision 1,clause (3), items (i) and (j)paragraphs (g) and 121.9 (h). 121.10 (g) If a person is entitled to a minimum benefit payable 121.11 from a public pension plan named in section 356.30, subdivision 121.12 3, the person may receive additional credit for only those years 121.13 of service in another covered pension plan that, when added to 121.14 the years of service in the pension plan that is paying the 121.15 minimum benefit, exceed the years of service on which the 121.16 minimum benefit is based. 121.17 Subd. 4. [COVERED RETIREMENT PLANS.] This section applies 121.18 to the following retirement plans: 121.19 (1) the legislators retirement plan, established by chapter 121.20 3A; 121.21 (2) the general state employees retirementfundplan of the 121.22 Minnesota state retirement system, established by chapter 352; 121.23 (3) the correctional state employees retirement plan of the 121.24 Minnesota state retirement system, established by chapter 352; 121.25 (4) the state patrol retirementfundplan, established by 121.26 chapter 352B; 121.27 (5) the elective state officers retirement plan, 121.28 established by chapter 352C; 121.29 (6) the unclassified state employees retirementplan121.30 program, established by chapter 352D; 121.31 (7) the general employees retirement plan of the public 121.32 employees retirement association, established by chapter 353; 121.33 (8) the public employees police and firefundplan of the 121.34 public employees retirement association, established by chapter 121.35 353; 121.36 (9)public employeesthe local government correctional 122.1 service retirement plan of the public employees retirement 122.2 association, established by chapter 353E; 122.3 (10) the teachers retirement association, established by 122.4 chapter 354; 122.5 (11) the Duluth teachers retirement fund association, 122.6 established by chapter 354A; 122.7 (12) the Minneapolis teachers retirement fund association, 122.8 established by chapter 354A; 122.9 (13) the St. Paul teachers retirement fund association, 122.10 established by chapter 354A; 122.11 (14) the Minneapolis employees retirement fund, established 122.12 by chapter 422A; and 122.13 (15) the judges' retirement fund, established by sections 122.14 490.121 to 490.132. 122.15 RETIREMENT ANNUITIES 122.16 Sec. 22. [356.315] [RETIREMENT BENEFIT FORMULA 122.17 PERCENTAGES.] 122.18 Subdivision 1. [COORDINATED PLAN MEMBERS.] The applicable 122.19 benefit accrual rate is 1.2 percent. 122.20 Subd. 2. [COORDINATED PLAN MEMBERS.] The applicable 122.21 benefit accrual rate is 1.7 percent. 122.22 Subd. 2a. [COORDINATED MEMBERS.] The applicable benefit 122.23 accrual rate is 2.0 percent. 122.24 Subd. 3. [BASIC PLAN MEMBERS.] The applicable benefit 122.25 accrual rate is 2.2 percent. 122.26 Subd. 4. [BASIC PLAN MEMBERS.] The applicable benefit 122.27 accrual rate is 2.7 percent. 122.28 Subd. 5. [CORRECTIONAL PLAN MEMBERS.] The applicable 122.29 benefit accrual rate is 2.4 percent. 122.30 Subd. 5a. [LOCAL GOVERNMENT CORRECTIONAL SERVICE PLAN.] 122.31 The applicable benefit accrual rate is 1.9 percent. 122.32 Subd. 6. [STATE TROOPERS PLAN AND POLICE AND FIRE PLAN 122.33 MEMBERS.] The applicable benefit accrual rate is 3.0 percent. 122.34 Subd. 7. [JUDGES PLAN.] The applicable benefit accrual 122.35 rate is 2.7 percent. 122.36 Subd. 8. [JUDGES PLAN.] The applicable benefit accrual 123.1 rate is 3.2 percent. 123.2 Subd. 9. [FUTURE BENEFIT ACCRUAL RATE INCREASES.] After 123.3 January 2, 1998, benefit accrual rate increases under this 123.4 section must apply only to allowable service or formula service 123.5 rendered after the effective date of the benefit accrual rate 123.6 increase. 123.7 Sec. 23. Minnesota Statutes 2000, section 356.32, is 123.8 amended to read: 123.9 356.32 [PROPORTIONATE ANNUITY AT AGE 65.] 123.10 Subdivision 1. [PROPORTIONATE RETIREMENT ANNUITY.] (a) 123.11 Notwithstanding any provision to the contrary of the laws 123.12 governing any of the retirement fundsreferred toenumerated in 123.13 subdivision 2, any person who is an active member of any 123.14 applicable fund, who has credit for at least one year but less 123.15 than ten years of allowable service in one or more of 123.16 theapplicable fundscovered plans, and who terminates active 123.17 servicepursuant tounder a mandatory retirement law or policy 123.18 or at age 65 or older, or at the normal retirement age if this 123.19 age is not age 65, for any reasonshall beis entitled upon 123.20 making written application on the form prescribed byexecutive123.21director or executive secretarythe chief administrative officer 123.22 of thefundplan to a proportionate retirement annuity from each 123.23applicable fundcovered plan in which the person has allowable 123.24 service credit. 123.25 (b) The proportionate annuityshallmust be calculated 123.26 under the applicable laws governing annuities based upon 123.27 allowable service credit at the time of retirement and the 123.28 person's average salary for the highest five successive years of 123.29 allowable service or the average salary for the entire period of 123.30 allowable service if less than five years. 123.31 (c) Nothing in this sectionshall preventprevents the 123.32 imposition of the appropriate early retirement reduction of an 123.33 annuity which commencesprior tobefore the normal retirement 123.34 age. 123.35 Subd. 2. [COVEREDFUNDSRETIREMENT PLANS.] The provisions 123.36 of this sectionshallapply to the following retirement 124.1fundsplans: 124.2 (1) the general state employees retirementfundplan of the 124.3 Minnesota state retirement system, establishedpursuant tounder 124.4 chapter 352; 124.5 (2) the correctional state employees retirementprogram124.6 plan of the Minnesota state retirement system, established 124.7pursuant tounder chapter 352; 124.8 (3) the state patrol retirementfundplan, 124.9 establishedpursuant tounder chapter 352B; 124.10 (4) the general employees retirement plan of the public 124.11 employees retirementfundassociation, establishedpursuant to124.12 under chapter 353; 124.13 (5) the public employees police and firefundplan of the 124.14 public employees retirement association, establishedpursuant to124.15 under chapter 353; 124.16 (6) the teachers retirement association, established 124.17pursuant tounder chapter 354; 124.18 (7) the Minneapolis employees retirement fund, established 124.19pursuant tounder chapter 422A; 124.20 (8) the Duluth teachers retirement fund association, 124.21 establishedpursuant tounder chapter 354A; 124.22 (9) the Minneapolis teachers retirement fund association, 124.23 establishedpursuant tounder chapter 354A; and 124.24 (10) the St. Paul teachers retirement fund association, 124.25 establishedpursuant tounder chapter 354A. 124.26 Sec. 24. Minnesota Statutes 2000, section 356.40, is 124.27 amended to read: 124.28 356.40 [DATE FOR PAYMENT OF ANNUITIES AND BENEFITS.] 124.29 (a) Notwithstanding any law to the contrary, all annuities 124.30 and benefits payable on and after December 1, 1977 by a covered 124.31 retirement fund, as defined in section 356.30, subdivision 3, 124.32shallmust be paid in advance for each month during the first 124.33 week of that month. The bylaws ofmunicipallocal retirement 124.34 fundsshallmust be amended accordingly. 124.35 (b) In no event, however,shallmay this sectionauthorize124.36more than one payment in any one month where the law governing125.1the applicable retirement fund as of June 30, 1977 already125.2provides for the full payment or accrual of annuities and125.3benefits in advance for each month or as of the first day of the125.4month, nor shall itauthorize the payment of both a retirement 125.5 annuity and a surviving spouse's benefit in one month where the 125.6 law governing the applicable retirement fund provides for the 125.7 payment of the retired member's retirement annuity to the 125.8 surviving spouse for the month in which the retired member dies. 125.9 Sec. 25. [356.403] [NORMAL RETIREMENT AGE; SAVINGS 125.10 CLAUSE.] 125.11 The intent of the legislature in sections 352.01, 125.12 subdivision 25; 353.01, subdivision 37; 354.05, subdivision 38; 125.13 and 354A.011, subdivision 15a, is to create a normal retirement 125.14 age for persons first covered by those sections after May 16, 125.15 1989, that is the same as the retirement age in the federal 125.16 Social Security law, including future amendments to that law. 125.17 If a court determines that the legislature may not incorporate 125.18 by reference the future changes in federal Social Security law, 125.19 the legislature reserves the right to amend the appropriate 125.20 sections to make the normal retirement age conform to the 125.21 retirement age in the federal Social Security law. No person 125.22 first covered by any of those sections after May 16, 1989, has a 125.23 right to a normal retirement age that is less than the 125.24 retirement age in the federal Social Security law. 125.25 Sec. 26. [356.405] [COMBINED PAYMENT OF RETIREMENT 125.26 ANNUITIES.] 125.27 (a) The public employees retirement association and the 125.28 Minnesota state retirement system are permitted to combine 125.29 payments to retirees. The total payment must be equal to the 125.30 amount that is payable if payments were kept separate. The 125.31 retiree must agree, in writing, to have the payment combined. 125.32 (b) Each plan must calculate the benefit amounts under the 125.33 laws governing the plan and the required reserves and future 125.34 mortality losses or gains must be paid or accrued to the plan 125.35 from which the service was earned. Each plan must account for 125.36 its portion of the payment separately, and there may be no 126.1 additional actuarial liabilities realized by either plan. 126.2 (c) The plan making the payment would be responsible for 126.3 issuing one payment and making address changes, tax withholding 126.4 changes, and other administrative functions needed to process 126.5 the payment. 126.6 SURVIVOR BENEFITS 126.7 Sec. 27. [356.406] [LOSS OF ENTITLEMENT TO BENEFITS FOR 126.8 SURVIVOR CAUSING DEATH OF PENSION PLAN MEMBER.] 126.9 Subdivision 1. [DEFINITIONS.] (a) Each of the words or 126.10 terms defined in this subdivision has the meaning indicated. 126.11 (b) "Public pension plan" means any retirement plan or fund 126.12 enumerated in section 356.20, subdivision 2, or 356.30, 126.13 subdivision 3, any relief association governed by section 69.77 126.14 or sections 69.771 to 69.775, any retirement plan governed by 126.15 chapter 354B or 354C, the Hennepin county supplemental 126.16 retirement plan governed by sections 383B.46 to 383B.52, or any 126.17 housing and redevelopment authority retirement plan. 126.18 (c) "Public pension plan member" means a person who is a 126.19 participant covered by a public pension plan; a former 126.20 participant of a public pension plan who has sufficient service 126.21 to be entitled to receive a future retirement annuity or service 126.22 pension; a recipient of a retirement annuity, service pension, 126.23 or disability benefit from a public pension plan; or a former 126.24 participant of a public pension plan who has member or employee 126.25 contributions to the person's credit in the public pension plan. 126.26 (d) "Survivor" means the surviving spouse, a former spouse, 126.27 a surviving child, a joint annuitant, a designated recipient of 126.28 a second or remainder portion of an optional annuity form, a 126.29 beneficiary, or the estate of a deceased public pension plan 126.30 member, as those terms are commonly understood or defined in the 126.31 benefit plan document of the public pension plan. 126.32 (e) "Survivor benefit" means a surviving spouse benefit, 126.33 surviving child benefit, second or remainder portion of an 126.34 optional annuity form, death benefit, funeral benefit, or refund 126.35 of member or employee contributions payable on account of the 126.36 death of a public pension plan member as provided for in the 127.1 benefit plan document of the public pension plan. 127.2 Subd. 2. [SUSPENSION OF SURVIVOR BENEFITS UPON FELONY 127.3 CHARGE.] During the pendency of a charge of a survivor of a 127.4 felony that caused the death of a public pension plan member, of 127.5 criminal liability for a death by wrongful act felony, or of 127.6 conspiracy to commit a death by wrongful act felony, the 127.7 entitlement of that survivor to receive a survivor benefit is 127.8 suspended. 127.9 Subd. 3. [FORFEITURE OF SURVIVOR BENEFITS UPON FELONY 127.10 CONVICTION.] On final conviction of a survivor of a felony that 127.11 caused the death of a public pension plan member, of criminal 127.12 liability for a death by wrongful act felony, or of conspiracy 127.13 to commit a death by wrongful act felony, the entitlement of 127.14 that survivor to receive a survivor benefit is forfeited, 127.15 including entitlement for any previously suspended survivor 127.16 benefits under subdivision 2. 127.17 Subd. 4. [SUSPENSION OR FORFEITURE ACTIONS SEPARATE.] The 127.18 charge of one survivor under subdivision 2 or the conviction of 127.19 one survivor under subdivision 3 does not affect the entitlement 127.20 of another survivor to a survivor benefit. 127.21 Subd. 5. [RECOVERY OF CERTAIN BENEFITS.] If monthly 127.22 benefits or a refund of the balance of a participant or former 127.23 participant's account have already been paid to an individual 127.24 who is later charged or convicted as described under this 127.25 section, the executive director or chief administrative officer 127.26 of the public pension plan shall attempt to recover the amounts 127.27 paid. Payment may be made to the next beneficiary or survivor 127.28 only in an amount equal to the amount recovered and in the 127.29 amount of any future payments that would legally accrue to 127.30 another survivor under the applicable laws of the retirement 127.31 plan. 127.32 Subd. 6. [DISPOSITION OF FORFEITED SURVIVOR BENEFITS.] If 127.33 the benefit plan document governing the public pension plan does 127.34 not provide for the disposition of forfeited benefits, survivor 127.35 benefits forfeited under this section must be deposited in the 127.36 general fund of the state. 128.1 Sec. 28. [356.407] [RESTORATION OF SURVIVOR BENEFITS.] 128.2 Subdivision 1. [RESTORATION UPON TERMINATION OF 128.3 REMARRIAGE.] Notwithstanding any provision to the contrary of 128.4 the laws governing any of the retirement plans enumerated in 128.5 subdivision 2, any person who was receiving a surviving spouse's 128.6 benefit from any of those plans and whose benefit terminated 128.7 solely because of remarriage is, if the remarriage terminates 128.8 for any reason, again entitled upon reapplication to a surviving 128.9 spouse's benefit; provided, however, that the person is not 128.10 entitled to retroactive payments for the period of remarriage. 128.11 The benefit resumes at the level which the person would have 128.12 been receiving if there had been no remarriage. This section 128.13 applies prospectively to any person who first becomes entitled 128.14 to receive a surviving spouse's benefit on or after May 18, 128.15 1975, and also applies retroactively to any person who first 128.16 became entitled to receive a surviving spouse's benefit before 128.17 May 18, 1975; provided, however, that no person is entitled to 128.18 retroactive payments for any period of time before May 18, 1975. 128.19 Subd. 2. [COVERED FUNDS.] The provisions of this section 128.20 apply to the following retirement funds: 128.21 (1) the general employees retirement plan of the public 128.22 employees retirement association established under chapter 353; 128.23 (2) the public employees police and fire plan of the public 128.24 employees retirement association established under chapter 353; 128.25 (3) the state patrol retirement plan established under 128.26 chapter 352B; 128.27 (4) the legislators retirement plan established under 128.28 chapter 3A; 128.29 (5) the elective state officers retirement plan established 128.30 under chapter 352C; 128.31 (6) the teachers retirement association established under 128.32 chapter 354; and 128.33 (7) the Minneapolis employees retirement fund established 128.34 under chapter 422A. 128.35 POSTRETIREMENT INCREASES 128.36 Sec. 29. Minnesota Statutes 2000, section 356.41, is 129.1 amended to read: 129.2 356.41 [BENEFIT ADJUSTMENTS FOR CERTAIN DISABILITY AND 129.3 SURVIVOR BENEFITS.] 129.4 Disability benefits payable to a disabilitant, if not 129.5 otherwise included in the participation in the Minnesota 129.6 postretirement investment fund, and survivor benefits payable to 129.7 a survivor from any public pensionfundplan which participates 129.8 in the Minnesota postretirement investment fundshallmust be 129.9 adjusted in the same manner, at the same times and in the same 129.10 amounts as are benefits payable from the Minnesota 129.11 postretirement investment fund to eligible benefit recipients of 129.12 that public pensionfundplan. If a disability benefit is not 129.13 included in the participation in the Minnesota postretirement 129.14 investment fund, the disability benefit is recomputed as a 129.15 retirement annuity and the recipient would have been eligible 129.16 for an adjustmentpursuant tounder this section if the 129.17 disability benefit was not recomputed, the recipientwill129.18continue to beremains eligible for the adjustmentpursuant to129.19 under this section after the recomputation. For the survivor of 129.20 a deceased annuitant who receives a survivor benefit 129.21 calculatedpursuant tounder a prior law rather than the second 129.22 portion of a joint and survivor annuity, any period of receipt 129.23 of a retirement annuity by the annuitantshallmust be utilized 129.24 in determining the period of receipt for eligibility to receive 129.25 an adjustmentpursuant tounder this section. No recipient 129.26shall, however,beis entitled to more than one adjustment 129.27pursuant tounder this section or section 11A.18 applicable to 129.28 one benefit at one time by reason of this section. 129.29 Sec. 30. [356.42] [POSTRETIREMENT ADJUSTMENT; LUMP SUM 129.30 PAYMENTS.] 129.31 Subdivision 1. [ENTITLEMENT.] A person who is receiving a 129.32 retirement annuity, a disability benefit, or a surviving 129.33 spouse's annuity or benefit from a retirement fund specified in 129.34 subdivision 3, clauses (1) to (8), is entitled to receive a 129.35 postretirement adjustment from the applicable retirement fund in 129.36 the amount specified in subdivision 2, if the annuity or benefit 130.1 was computed under: 130.2 (1) the laws in effect before June 1, 1973, if the person 130.3 is receiving an annuity or benefit from the retirement fund 130.4 specified in subdivision 3, clause (4); 130.5 (2) the laws in effect before July 1, 1973, if the person 130.6 is receiving an annuity or benefit from a retirement fund 130.7 specified in subdivision 3, clause (1), (2), (3), or (5); 130.8 (3) the metropolitan transit commission transit operating 130.9 division employees retirement fund plan document in effect on or 130.10 before December 31, 1977, if the person is receiving a 130.11 retirement annuity, a disability benefit, or a surviving 130.12 spouse's annuity or benefit from the retirement fund specified 130.13 in subdivision 3, clause (5); 130.14 (4) the laws in effect before May 1, 1974, and before any 130.15 adjustment under Laws 1987, chapter 372, article 3, if the 130.16 person is receiving an annuity or benefit from the retirement 130.17 fund specified in subdivision 3, clause (6); 130.18 (5) the laws in effect before January 1, 1970, if the 130.19 person is receiving an annuity or benefit from the retirement 130.20 fund specified in subdivision 3, clause (7); or 130.21 (6) the laws in effect before June 30, 1971, if the person 130.22 is receiving an annuity or benefit from the retirement fund 130.23 specified in subdivision 3, clause (8). 130.24 Subd. 2. [AMOUNT OF POSTRETIREMENT ADJUSTMENT; PAYMENT.] 130.25 (a) For any person receiving an annuity or benefit on November 130.26 30, 1989, and entitled to receive a postretirement adjustment 130.27 under subdivision 1, the postretirement adjustment is a lump-sum 130.28 payment calculated under paragraph (b) or (c). 130.29 (b) For coordinated plan annuity or benefit recipients, the 130.30 postretirement adjustment in 1989 is $25 for each full year of 130.31 allowable service credited to the person by the respective 130.32 retirement fund. In 1990 and each following year, the 130.33 postretirement adjustment is the amount payable in the preceding 130.34 year increased by the same percentage applied to regular 130.35 annuities paid from the postretirement fund or, for the 130.36 retirement funds specified in subdivision 3, clauses (6), (7), 131.1 and (8), by the same percentage applied under the articles of 131.2 incorporation and bylaws of these funds. 131.3 (c) For basic plan annuity or benefit recipients, the 131.4 postretirement adjustment in 1989 is the greater of: 131.5 (1) $25 for each full year of allowable service credited to 131.6 the person by the respective retirement fund; or 131.7 (2) the difference between: 131.8 (i) the product of $400 times the number of full years of 131.9 allowable service credited to the person by the respective 131.10 retirement fund; and 131.11 (ii) the sum of the benefits payable to the person from any 131.12 Minnesota public employee pension plan, and cash benefits 131.13 payable to the person from the Social Security Administration. 131.14 In 1990 and each following year, each eligible basic plan 131.15 annuity or benefit recipient shall receive the amount received 131.16 in the preceding year increased by the same percentage applied 131.17 to regular annuities paid from the postretirement fund or, for 131.18 the retirement funds specified in subdivision 3, clauses (6), 131.19 (7), and (8), by the same percentage applied under the articles 131.20 of incorporation and bylaws of these funds. 131.21 (d) The postretirement adjustment provided for in this 131.22 section must be paid on December 1 to those persons receiving an 131.23 annuity or benefit on the preceding November 30. This section 131.24 does not authorize the payment of a postretirement adjustment to 131.25 an estate if the annuity or benefit recipient dies before the 131.26 November 30 eligibility date. The postretirement adjustment 131.27 provided for in this section must be paid automatically unless 131.28 the intended recipient files a written notice with the 131.29 retirement fund requesting that the postretirement adjustment 131.30 not be paid or returns the amount of adjustment to the 131.31 retirement fund. Written notice of the waiver of the 131.32 postretirement adjustment is irrevocable for the year during 131.33 which it was made. 131.34 Subd. 3. [COVERED RETIREMENT PLANS.] The postretirement 131.35 adjustment provided in this section applies to the following 131.36 retirement funds: 132.1 (1) the general employees retirement plans of the public 132.2 employees retirement association; 132.3 (2) the public employees police and fire plan of the public 132.4 employees retirement association; 132.5 (3) the teachers retirement association; 132.6 (4) the state patrol retirement plan; 132.7 (5) the state employees retirement plan of the Minnesota 132.8 state retirement system; 132.9 (6) the Minneapolis teachers retirement fund association 132.10 established under chapter 354A; 132.11 (7) the St. Paul teachers retirement fund association 132.12 established under chapter 354A; and 132.13 (8) the Duluth teachers retirement fund association 132.14 established under chapter 354A. 132.15 Sec. 31. [356.43] [SUPPLEMENTAL BENEFIT; LUMP-SUM 132.16 PAYMENTS; MINNEAPOLIS EMPLOYEES RETIREMENT FUND.] 132.17 Subdivision 1. [ENTITLEMENT.] Any person who is receiving 132.18 either an annuity that was computed under the laws in effect 132.19 before March 5, 1974, or a "$2 bill and annuity" annuity from 132.20 the Minneapolis employees retirement fund is entitled to receive 132.21 a supplemental benefit lump-sum payment from the retirement fund 132.22 in the amount specified in subdivision 2. 132.23 Subd. 2. [AMOUNT OF PAYMENT.] (a) For any person receiving 132.24 an annuity or benefit on November 30, 1991, and entitled to 132.25 receive a supplemental benefit lump-sum payment under 132.26 subdivision 1, the payment is $28 for each full year of 132.27 allowable service credited to the person by the retirement fund. 132.28 In 1992 and each following year, each eligible benefit 132.29 recipient is entitled to receive the amount received in the 132.30 preceding year increased by the same percentage applied on the 132.31 most recent January 1 to regular annuities paid from the 132.32 Minneapolis employees retirement fund. 132.33 (b) The payment provided for in this section is payable on 132.34 December 1, 1991, to those persons receiving an annuity or 132.35 benefit on November 30, 1991. In subsequent years, the payment 132.36 must be made on December 1 to those persons receiving an annuity 133.1 or benefit on the preceding November 30. This section does not 133.2 authorize payment to an estate if the annuity or benefit 133.3 recipient dies before the November 30 eligibility date. The 133.4 payment provided for in this section must be paid automatically 133.5 unless the intended recipient files a written notice with the 133.6 retirement fund requesting that it not be paid. 133.7 Subd. 3. [STATE APPROPRIATION.] Payments under this 133.8 section are the responsibility of the Minneapolis employees 133.9 retirement fund. A separate state aid is provided toward the 133.10 level dollar amortized cost of the payments. For state fiscal 133.11 years 1992 to 2001 inclusive, there is appropriated annually 133.12 $550,000 from the general fund to the commissioner of finance to 133.13 be added, in quarterly installments, to the annual state 133.14 contribution amount determined under section 422A.101, 133.15 subdivision 3. After fiscal year 2001, any difference between 133.16 the cumulative benefit amounts actually paid under this section 133.17 after fiscal year 1991 and the amounts paid to the retirement 133.18 fund by the state under this subdivision, plus investment 133.19 earnings on the aid, shall be included by the retirement fund 133.20 board and the actuary retained by the legislative commission on 133.21 pensions and retirement in determining the financial 133.22 requirements of the fund and contributions under section 133.23 422A.101. 133.24 Sec. 32. [356.431] [CONVERSION OF LUMP-SUM POSTRETIREMENT 133.25 AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.] 133.26 Subdivision 1. [LUMP-SUM POSTRETIREMENT PAYMENT 133.27 CONVERSION.] (a) Unless the person elects otherwise under 133.28 paragraph (b), for benefits paid after December 31, 2001, to 133.29 eligible persons under sections 356.42 and 356.43, the amount of 133.30 the most recent lump-sum benefit payable to an eligible 133.31 recipient under sections 356.86 and 356.865 must be divided by 133.32 12. The result must be added to the monthly annuity or benefit 133.33 otherwise payable to an eligible recipient, must become a 133.34 permanent part of the benefit recipient's pension, and must be 133.35 included in any pension benefit subject to future increases. 133.36 (b) A person may elect to continue to receive the payment 134.1 in a lump sum annually in each December. The election must be 134.2 made before September 1, 2002. For the December 2002 lump-sum 134.3 payment, the amount must be the total of the monthly amounts 134.4 remaining unpaid after the election under this paragraph. 134.5 Subd. 2. [TRANSFER OF REQUIRED RESERVES TO MINNESOTA 134.6 POSTRETIREMENT INVESTMENT FUND.] (a) Public employee retirement 134.7 funds participating in the state board of investment 134.8 postretirement investment fund shall transfer the required 134.9 reserves for the postretirement conversion under subdivision 1 134.10 to the postretirement investment fund by January 31, 2002. 134.11 (b) For a person who elects a lump-sum payment under 134.12 subdivision 1, paragraph (a), any required reserves for the 134.13 converted payment must be transferred back to the applicable 134.14 public employee retirement fund. 134.15 REFUNDS 134.16 Sec. 33. [356.44] [PARTIAL PAYMENT OF PENSION PLAN 134.17 REFUND.] 134.18 (a) Notwithstanding any provision of law to the contrary, a 134.19 member of a pension plan listed in section 356.30, subdivision 134.20 3, with at least two years of forfeited service taken from a 134.21 single pension plan, may repay a portion of all refunds. A 134.22 partial refund repayment must comply with this section. 134.23 (b) The minimum portion of a refund repayment is one-third 134.24 of the total service credit period of all refunds taken from a 134.25 single plan. 134.26 (c) The cost of the partial refund repayment is the product 134.27 of the cost of the total repayment multiplied by the ratio of 134.28 the restored service credit to the total forfeited service 134.29 credit. The total repayment amount includes interest at the 134.30 annual rate of 8.5 percent, compounded annually, from the refund 134.31 date to the date repayment is received. 134.32 (d) The restored service credit must be allocated based on 134.33 the relationship the restored service bears to the total service 134.34 credit period for all refunds taken from a single pension plan. 134.35 (e) This section does not authorize a public pension plan 134.36 member to repay a refund if the law governing the plan does not 135.1 authorize the repayment of a refund of member contributions. 135.2 Sec. 34. [356.441] [REPAYMENT OF REFUNDS.] 135.3 Repayment of a refund and interest on that refund permitted 135.4 under laws governing any public pension plan in Minnesota may be 135.5 made with funds distributed from a plan qualified under the 135.6 federal Internal Revenue Code of 1986, section 401(a), as 135.7 amended through December 31, 1988, or an annuity qualified under 135.8 the federal Internal Revenue Code of 1986, section 403(a). 135.9 Repayment may also be made with funds distributed from an 135.10 individual retirement account used solely to receive a 135.11 nontaxable rollover from that type of a plan or annuity. The 135.12 repaid refund must be separately accounted for as member 135.13 contributions not previously taxed. Before accepting any 135.14 transfers to which this section applies, the executive director 135.15 must require the member to provide written documentation to 135.16 demonstrate that the amounts to be transferred are eligible for 135.17 a tax-free rollover and qualify for that treatment under the 135.18 federal Internal Revenue Code of 1986. 135.19 OPTIONAL ANNUITY FORMS 135.20 Sec. 35. [356.46] [APPLICATION FOR RETIREMENT ANNUITY; 135.21 PROCEDURE FOR ELECTING ANNUITY FORM.] 135.22 Subdivision 1. [DEFINITIONS.] As used in this section, 135.23 each of the following terms shall have the meaning given. 135.24 (a) "Annuity form" means the payment procedure and duration 135.25 of a retirement annuity or disability benefit available to a 135.26 member of a public pension fund, based on the period over which 135.27 a retirement annuity or disability benefit is payable, 135.28 determined by the number of persons to whom the retirement 135.29 annuity or disability benefit is payable, and the amount of the 135.30 retirement annuity or disability benefit which is payable to 135.31 each person. 135.32 (b) "Joint and survivor optional annuity" means an optional 135.33 annuity form which provides a retirement annuity or disability 135.34 benefit to a retired member and the spouse of the member on a 135.35 joint basis during the lifetime of the retired member and all or 135.36 a portion of the original retirement annuity or disability 136.1 benefit amount to the surviving spouse in the event of the death 136.2 of the retired member. 136.3 (c) "Optional annuity form" means an annuity form which is 136.4 elected by a member and is not provided automatically as the 136.5 standard annuity form of the public pension plan. 136.6 (d) "Public pension plan" means a public pension plan as 136.7 defined under section 356.615, paragraph (b). 136.8 (e) "Retirement annuity" means a series of monthly payments 136.9 to which a former or retired member of a public pension fund is 136.10 entitled due to attaining a specified age and acquiring credit 136.11 for a specified period of service, which includes a retirement 136.12 annuity, retirement allowance, or service pension. 136.13 (f) "Disability benefit" means a series of monthly payments 136.14 to which a former or disabled member of a public pension fund is 136.15 entitled due to a physical or mental inability to engage in 136.16 specified employment. 136.17 Subd. 2. [PROVISION OF INFORMATION ON ANNUITY FORMS.] 136.18 Every public pension plan which provides for an annuity form 136.19 other than a single life retirement annuity as an option which 136.20 can be elected by an active, disabled, or retiring member shall 136.21 provide as a part of, or accompanying the annuity application 136.22 form, a written statement summarizing the optional annuity forms 136.23 which are available, a general indication of the consequences of 136.24 selecting one annuity form over another, a calculation of the 136.25 actuarial reduction in the amount of the retirement annuity 136.26 which would be required for each optional annuity form, and the 136.27 procedure to be followed to obtain more information from the 136.28 public pension fund concerning the optional annuity forms 136.29 provided by the plan. 136.30 Subd. 3. [REQUIREMENT OF NOTICE TO MEMBER'S SPOUSE.] (a) 136.31 If a public pension plan provides optional retirement annuity 136.32 forms which include a joint and survivor optional retirement 136.33 annuity form potentially applicable to the surviving spouse of a 136.34 member, the executive director of the public pension plan shall 136.35 send a copy of the written statement, required by subdivision 2, 136.36 to the spouse of the member before the member's election of an 137.1 optional retirement annuity. 137.2 (b) Following the election of a retirement annuity by the 137.3 member, a copy of the completed retirement annuity application 137.4 and retirement annuity beneficiary form, if applicable, must be 137.5 sent by the public pension plan to the spouse of the retiring 137.6 member. A signed acknowledgment must be required from the 137.7 spouse confirming receipt of a copy of the completed retirement 137.8 annuity application and retirement annuity beneficiary form, 137.9 unless the spouse's signature confirming the receipt is on the 137.10 annuity application form. If the required signed acknowledgment 137.11 is not received from the spouse within 30 days, the public 137.12 pension plan must send another copy of the completed retirement 137.13 annuity application and retirement annuity beneficiary form, if 137.14 applicable, to the spouse by certified mail with restricted 137.15 delivery. 137.16 Sec. 36. [356.465] [SUPPLEMENTAL NEEDS TRUST AS OPTIONAL 137.17 ANNUITY FORM RECIPIENT.] 137.18 Subdivision 1. [INCLUSION AS RECIPIENT.] Notwithstanding 137.19 any provision to the contrary of the laws, articles of 137.20 incorporation, or bylaws governing a covered retirement plan 137.21 specified in subdivision 3, a retiring member may designate a 137.22 qualified supplemental needs trust under subdivision 2 as the 137.23 remainder recipient on an optional retirement annuity form for a 137.24 period not to exceed the lifetime of the beneficiary of the 137.25 supplemental needs trust. 137.26 Subd. 2. [DEFINITION OF QUALIFIED SUPPLEMENTAL NEEDS 137.27 TRUST.] A qualified supplemental needs trust is a trust that: 137.28 (1) was established on or after July 1, 1992; 137.29 (2) was established solely for the benefit of one person 137.30 who has a disability under federal Social Security 137.31 Administration supplemental security income or retirement, 137.32 survivors, and disability insurance disability determination 137.33 standards and who was determined as such before the creation of 137.34 the trust; 137.35 (3) is funded, in whole or in part, by the primary 137.36 recipient of the optional annuity form and, unless the trust is 138.1 a Zebley trust, is not funded by the beneficiary, the 138.2 beneficiary's spouse, or a person who is required to pay a sum 138.3 to or for the trust beneficiary under the terms of litigation or 138.4 a litigation settlement; 138.5 (4) is established to cover reasonable living expenses and 138.6 other basic needs of the disabilitant, in whole or in part, in 138.7 instances when public assistance does not provide sufficiently 138.8 for these needs; 138.9 (5) is not permitted to make disbursement to replace or 138.10 reduce public assistance otherwise available; 138.11 (6) is irrevocable; 138.12 (7) terminates upon the death of the disabled person for 138.13 whose benefit it was established; and 138.14 (8) is determined by the executive director to be a trust 138.15 that contains excluded assets for purposes of the qualification 138.16 for public entitlement benefits under the applicable federal and 138.17 state laws and regulations. 138.18 Subd. 3. [COVERED RETIREMENT PLANS.] The provisions of 138.19 this section apply to the following retirement plans: 138.20 (1) the general state employees retirement plan of the 138.21 Minnesota state retirement system established under chapter 352; 138.22 (2) the correctional state employees retirement plan of the 138.23 Minnesota state retirement system established under chapter 352; 138.24 (3) the state patrol retirement plan established under 138.25 chapter 352B; 138.26 (4) the legislators retirement plan established under 138.27 chapter 3A; 138.28 (5) the judges retirement plan established under chapter 138.29 490; 138.30 (6) the general employees retirement plan of the public 138.31 employees retirement association established under chapter 353; 138.32 (7) the public employees police and fire plan of the public 138.33 employees retirement association established under chapter 353; 138.34 (8) the teachers retirement plan established under chapter 138.35 354; 138.36 (9) the Duluth teachers retirement fund association 139.1 established under chapter 354A; 139.2 (10) the St. Paul teachers retirement fund association 139.3 established under chapter 354A; 139.4 (11) the Minneapolis teachers retirement fund association 139.5 established under chapter 354A; 139.6 (12) the Minneapolis employees retirement plan established 139.7 under chapter 422A; 139.8 (13) the Minneapolis firefighters relief association 139.9 established under chapter 423C; 139.10 (14) the Minneapolis police relief association established 139.11 under chapter 423B; and 139.12 (15) the local government correctional service retirement 139.13 plan of the public employees retirement association established 139.14 under chapter 353E. 139.15 REEMPLOYED ANNUITANT EARNINGS DISPOSITION 139.16 Sec. 37. [356.47] [DISPOSITION OF AMOUNT IN EXCESS OF 139.17 REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.] 139.18 Subdivision 1. [APPLICATION.] This section applies to the 139.19 balance of annual retirement annuities on the amount of 139.20 retirement annuity reductions after reemployed annuitant 139.21 earnings limitations for retirement plans governed by section 139.22 352.115, subdivision 10; 353.37; 354.44, subdivision 5; or 139.23 354A.31, subdivision 3. 139.24 Subd. 2. [RECORDKEEPING; REPORTING.] The chief 139.25 administrative officer of each retirement plan shall keep 139.26 records for each reemployed annuitant of the amount of the 139.27 annuity reduction. This amount must be reported to each member 139.28 at least once each year. 139.29 Subd. 3. [PAYMENT.] (a) Upon the retired member attaining 139.30 the age of 65 years or upon the first day of the month next 139.31 following the month occurring one year after the termination of 139.32 the reemployment that gave rise to the limitation, whichever is 139.33 later, and the filing of a written application, the retired 139.34 member is entitled to the payment, in a lump sum, of the value 139.35 of the person's amount under subdivision 2, plus interest at the 139.36 compound annual rate of six percent from the date that the 140.1 amount was deducted from the retirement annuity to the date of 140.2 payment. 140.3 (b) The written application must be on a form prescribed by 140.4 the chief administrative officer of the applicable retirement 140.5 plan. 140.6 (c) If the retired member dies before the payment provided 140.7 for in paragraph (a) is made, the amount is payable, upon 140.8 written application, to the deceased person's surviving spouse, 140.9 or if none, to the deceased person's designated beneficiary, or 140.10 if none, to the deceased person's estate. 140.11 MARRIAGE DISSOLUTION RETIREMENT 140.12 COVERAGE INFORMATION 140.13 Sec. 38. [356.49] [PROVISION OF INFORMATION IN THE EVENT 140.14 OF MARRIAGE DISSOLUTION.] 140.15 Subdivision 1. [INFORMATION FOR A PENDING MARRIAGE 140.16 DISSOLUTION.] (a) Upon receipt of a written request by a person 140.17 with access to the data under subdivision 3 who cites this 140.18 statute, a public or private pension plan administrator must 140.19 provide the court and the parties to a marriage dissolution 140.20 action involving a plan member or former plan member with 140.21 information regarding pension benefits or rights of the plan 140.22 member or former plan member. The pension plan shall provide 140.23 this information upon the request of the court or a party to the 140.24 action without requiring a signed authorization from the plan 140.25 member or former plan member. 140.26 (b) The information must include the pension benefits or 140.27 rights of the plan member or former plan member as of the first 140.28 day of the month following the date of the request, or as of the 140.29 end of the previous fiscal year for the plan, and as of the date 140.30 of valuation of marital assets under section 518.58, if the 140.31 person requesting the information specifies that date. The 140.32 information must include the accrued service credit of the 140.33 person, the credited salary of the person for the most current 140.34 five-year period, a summary of the benefit plan, and any other 140.35 information relevant to the calculation of the present value of 140.36 the benefits or rights. 141.1 Subd. 2. [INFORMATION FOR AN EXISTING DISSOLUTION DECREE.] 141.2 If a marriage dissolution decree rendered by a court of 141.3 competent jurisdiction prior to August 1, 1987, provided a 141.4 procedure for the distribution of future pension plan payments, 141.5 upon request the applicable pension plan administrator shall 141.6 provide on a timely basis to the court and the parties to the 141.7 action, the required information to implement that procedure 141.8 without requiring a signed authorization from the plan member or 141.9 former plan member. 141.10 Subd. 3. [ACCESS TO DATA.] Notwithstanding any provision 141.11 of chapter 13 to the contrary, an administrator may release 141.12 private or confidential data on individuals to the court, the 141.13 parties to a marriage dissolution, their attorneys, and an 141.14 actuary appointed under section 518.582, to the extent necessary 141.15 to comply with this section, but only if the administrator has 141.16 received a copy of the legal petition showing that an action for 141.17 marriage dissolution has commenced and a copy of the affidavit 141.18 of service showing that the petition has been served on the 141.19 responding party to the action. 141.20 SERVICE AND SALARY CREDIT UPON 141.21 WRONGFUL DISCHARGE 141.22 Sec. 39. Minnesota Statutes 2000, section 356.50, is 141.23 amended to read: 141.24 356.50 [SERVICE AND SALARY CREDIT FROM BACK PAY AWARDS IN 141.25 THE EVENT OF WRONGFUL DISCHARGE.] 141.26 (a) A person who is wrongfully discharged from public 141.27 employment that gave rise to coverage by a public employee 141.28 pension planlistedenumerated in section 356.30, subdivision 3, 141.29 is entitled to obtain allowable service credit from the 141.30 applicable public employee pension plan for the applicable 141.31 period caused by the wrongful discharge. 141.32 (b) A person is wrongfully discharged for purposes of this 141.33 section if: 141.34 (1) the person has been determined by a court of competent 141.35 jurisdiction or by an arbitrator in binding arbitration, 141.36 whichever applies, to have been wrongfully discharged from 142.1 public employment; 142.2 (2) the person received an award of back pay with respect 142.3 to that discharge; and 142.4 (3) the award does not include any amount for any lost or 142.5 interrupted public pension plan coverage. 142.6(b)(c) To obtain the public pension plan allowable service 142.7 credit, the person shall pay the required member contribution 142.8 amount. The required member contribution amount is the member 142.9 contribution rate or rates in effect for the pension plan during 142.10 the period of service covered by the back pay award, applied to 142.11 the unpaid gross salary amounts of the back pay award including 142.12 reemployment insurance, workers' compensation or wages from 142.13 other sources which reduced the back award. No contributions 142.14 shall be made under this clause for compensation covered by a 142.15 public pension plan listed in section 356.30, subdivision 3, for 142.16 employment during the removal period. The person shall pay the 142.17 required member contribution amount within 60 days of the date 142.18 of receipt of the back pay award, within 60 days of April 14, 142.19 1992, or within 60 days of a billing from the retirement fund, 142.20 whichever is later. 142.21(c)(d) The public employer who wrongfully discharged the 142.22 public employee must pay an employer contribution on the back 142.23 pay award. The employer contribution must be based on the 142.24 employer contribution rate or rates in effect for the pension 142.25 plan during the period of service covered by the back pay award, 142.26 applied to the salary amount on which the member contribution 142.27 amount was determined under paragraph(b)(c). Interest on both 142.28 the required member and employer contribution amount must be 142.29 paid by the employer at the annual compound rate of 8.5 percent 142.30 per year, expressed monthly, between the date the contribution 142.31 amount would have been paid to the date of actual payment. The 142.32 employer payment must be made within 30 days of the payment 142.33 under paragraph(b)(c). 142.34 Sec. 40. Minnesota Statutes 2000, section 356.55, as 142.35 amended by Laws 2001, First Special Session chapter 10, article 142.36 6, section 16, is amended to read: 143.1 356.55 [PRIOR SERVICE CREDIT PURCHASE PAYMENT AMOUNT 143.2 DETERMINATION PROCEDURE.] 143.3 Subdivision 1. [APPLICATION.] (a) Unless the prior service 143.4 credit purchase authorization special law or general statute 143.5 provision explicitly specifies a different purchase payment 143.6 amount determination procedure, this section governs the 143.7 determination of the prior service credit purchase payment 143.8 amount of any prior service credit purchase. 143.9 (b) The purchase payment amount determination procedure 143.10 must recognize any service credit accrued to the purchaser in a 143.11 pension planlistedenumerated in section 356.30, subdivision 3. 143.12 (c) Any service credit in a Minnesota defined benefit 143.13 public employee pension plan available to be reinstated by the 143.14 purchaser through the repayment of a refund of member or 143.15 employee contributions previously received must be repaid in 143.16 full before any purchase of prior service credit payment is made 143.17 under this section. 143.18 Subd. 2. [DETERMINATION.] (a) Unless the prior service 143.19 credit purchase minimum purchase payment amount determined under 143.20 paragraph (d) is greater, the prior service credit purchase 143.21 amount is the result obtained by subtracting the amount 143.22 determined under paragraph (c) from the amount determined under 143.23 paragraph (b). 143.24 (b) The present value of the unreduced single life 143.25 retirement annuity, with the purchase of the additional service 143.26 credit included, must be calculated as follows: 143.27 (1) the age at first eligibility for an unreduced single 143.28 life retirement annuity, including the purchase of the 143.29 additional service credit, must be determined; 143.30 (2) the length of total service credit, including the 143.31 period of the purchase of the additional service credit, at the 143.32 age determined under clause (1) must be determined; 143.33 (3) the highest five successive years average salary at the 143.34 age determined under clause (1), assuming five percent annual 143.35 compounding salary increases from the most current annual salary 143.36 amount at the age determined under clause (1), must be 144.1 determined; 144.2 (4) using the benefit accrual rate or rates applicable to 144.3 the prospective purchaser of the service credit based on the 144.4 prospective purchaser's actual date of entry into covered 144.5 service, the length of service determined under clause (2), and 144.6 the final average salary determined under clause (3), the annual 144.7 unreduced single life retirement annuity amount must be 144.8 determined; 144.9 (5) the actuarial present value of the projected annual 144.10 unreduced single life retirement annuity amount determined under 144.11 clause (4) at the age determined under clause (1), using the 144.12 same actuarial factor that the plan would use to determine 144.13 actuarial equivalence for optional annuity forms and related 144.14 purposes, must be determined; and 144.15 (6) the discounted value of the amount determined under 144.16 clause (5) to the date of the prospective purchase, using an 144.17 interest rate of 8.5 percent and no mortality probability 144.18 decrement, must be determined. 144.19 (c) The present value of the unreduced single life 144.20 retirement annuity, without the purchase of the additional 144.21 service credit included, must be calculated as follows: 144.22 (1) the age at first eligibility for an unreduced single 144.23 life retirement annuity, not including the purchase of 144.24 additional service credit, must be determined; 144.25 (2) the length of accrued service credit, without the 144.26 period of the purchase of the additional service credit, at the 144.27 age determined under clause (1), must be determined; 144.28 (3) the highest five successive years average salary at the 144.29 age determined under clause (1), assuming five percent annual 144.30 compounding salary increases from the most current annual salary 144.31 amount to the age determined under clause (1), must be 144.32 determined; 144.33 (4) using the benefit accrual rate or rates applicable to 144.34 the prospective purchaser of the service credit based on the 144.35 prospective purchaser's actual date of entry into covered 144.36 service the length of service credit determined under clause 145.1 (2), and the final average salary determined under clause (3), 145.2 the annual unreduced single life retirement annuity amount must 145.3 be determined; 145.4 (5) the actuarial present value of the projected annual 145.5 unreduced single life retirement annuity amount determined under 145.6 clause (4) at the age determined under clause (1), using the 145.7 same actuarial factor that the plan would use to determine 145.8 actuarial equivalence for optional annuity forms and related 145.9 purposes, must be determined; 145.10 (6) the discounted value of the amount determined under 145.11 clause (5) to the date of the prospective purchase, using an 145.12 interest rate of 8.5 percent and no mortality probability 145.13 decrement, must be determined; and 145.14 (7) the net value of the discounted value determined under 145.15 clause (6), must be determined by applying a service ratio, 145.16 where the numerator is the total length of credited service 145.17 determined under paragraph (b), clause (2), reduced by the 145.18 period of the additional service credit proposed to be 145.19 purchased, and where the denominator is the total length of 145.20 service credit determined under clause (2). 145.21 (d) The minimum prior service credit purchase payment 145.22 amount is the amount determined by multiplying the most current 145.23 annual salary of the prospective purchaser by the combined 145.24 current employee, employer, and any additional employer 145.25 contribution rates for the applicable pension plan and by 145.26 multiplying that result by the number of years of service or 145.27 fractions of years of service of the potential service credit 145.28 purchase. 145.29 Subd. 3. [SOURCE OF DETERMINATION.] The prior service 145.30 credit purchase payment amounts under subdivision 2 must be 145.31 calculated by the chief administrative officer of the public 145.32 pension plan using a prior service credit purchase payment 145.33 amount determination process that has been verified for accuracy 145.34 and consistency under this section by the commission-retained 145.35 actuary. That verification must be in writing and must occur 145.36 before the first prior service credit purchase for the plan 146.1 under this section is accepted and every five years thereafter 146.2 or whenever the preretirement interest rate, postretirement 146.3 interest rate, payroll growth, or mortality actuarial assumption 146.4 for the applicable pension plan is modified under section 146.5 356.215, whichever occurs first. 146.6 Subd. 4. [PRIOR SERVICE CREDIT PURCHASE PROCESSING FEE.] A 146.7 public pension plan may establish a fee to be charged to the 146.8 prospective purchaser for processing a prior service credit 146.9 purchase application and the prior service credit purchase 146.10 payment amount calculation. The fee must be established by the 146.11 governing board of the pension plan and must be uniform for 146.12 comparable service credit purchase situations or actuarial 146.13 calculation requests. The prior service credit purchase 146.14 processing fee structure must be published by the chief 146.15 administrative officer of the applicable retirement plan in the 146.16 State Register. 146.17 Subd. 5. [PAYMENT RESPONSIBILITY; EMPLOYER OPTION.] Unless 146.18 the prior service credit purchase authorization special law or 146.19 general statute provision explicitly specifies otherwise, the 146.20 prior service credit purchase payment amount determined under 146.21 subdivision 2 is payable by the purchaser, but. However, the 146.22 former employer of the purchaser or the current employer of the 146.23 purchaser may, at its discretion, pay all or a portion of the 146.24 purchase payment amount in excess of an amount equal to the 146.25 employee contribution rate or rates in effect during the prior 146.26 service period applied to the actual salary rates in effect 146.27 during the prior service period, plus annual compound interest 146.28 at the rate of 8.5 percent from the date on which the 146.29 contributions would have been made if made contemporaneous with 146.30 the service period to the date on which the payment is actually 146.31 made. 146.32 Subd. 6. [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a) 146.33 As part of the regular data reporting provided to the consulting 146.34 actuary retained by the legislative commission on pensions and 146.35 retirement annually, the chief administrative officer of each 146.36 public pension plan that has accepted a prior service credit 147.1 purchase payment under this section shall report for any 147.2 purchase, the purchaser, the purchaser's employer, the age of 147.3 the purchaser, the period of the purchase, the purchaser's 147.4 prepurchase accrued service credit, the purchaser's postpurchase 147.5 accrued service credit, the purchaser's prior service credit 147.6 payment, the prior service credit payment made by the 147.7 purchaser's employer, and the amount of the additional benefit 147.8 or annuity purchased. 147.9 (b) As a supplemental report to the regular annual 147.10 actuarial valuation for the applicable public pension plan 147.11 prepared by the consulting actuary retained by the legislative 147.12 commission on pensions and retirement,there must bethe actuary 147.13 shall provide a comparison for each purchase showing the total 147.14 prior service credit payment received from all sources and the 147.15 increased public pension plan actuarial accrued liability 147.16 resulting from each purchase. 147.17 Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 147.18 PROCEDURE.] (a) This section expires and is repealed on July 1, 147.19 2003. 147.20 (b) Authority for any public pension plan to accept a prior 147.21 service credit payment that is calculated in a timely fashion 147.22 under this section expires on October 1, 2003. 147.23 Sec. 41. Minnesota Statutes 2000, section 356.551, is 147.24 amended to read: 147.25 356.551 [POST JULY 1,20012003, PRIOR SERVICE CREDIT 147.26 PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.] 147.27(a)Subdivision 1. [APPLICATION.] Unless the prior service 147.28 credit purchase authorization special law or general statute 147.29 provision explicitly specifies a different purchase payment 147.30 amount determination procedure, and if section 356.55 has 147.31 expired, this section governs the determination of the prior 147.32 service credit purchase payment amount of any prior service 147.33 credit purchase. 147.34(b)Subd. 2. [DETERMINATION.] The prior service credit 147.35 purchase amount is an amount equal to the actuarial present 147.36 value, on the date of payment, as calculated by the chief 148.1 administrative officer of the pension plan and reviewed by the 148.2 actuary retained by the legislative commission on pensions and 148.3 retirement, of the amount of the additional retirement annuity 148.4 obtained by the acquisition of the additional service credit in 148.5 this section. Calculation of this amount must be made using the 148.6 preretirement interest rate applicable to the public pension 148.7 plan specified in section 356.215, subdivision 4d, and the 148.8 mortality table adopted for the public pension plan. The 148.9 calculation must assume continuous future service in the public 148.10 pension plan until, and retirement at, the age at which the 148.11 minimum requirements of the fund for normal retirement or 148.12 retirement with an annuity unreduced for retirement at an early 148.13 age, including section 356.30, are met with the additional 148.14 service credit purchased. The calculation must also assume a 148.15 full-time equivalent salary, or actual salary, whichever is 148.16 greater, and a future salary history that includes annual salary 148.17 increases at the applicable salary increase rate for the plan 148.18 specified in section 356.215, subdivision 4d. Payment must be 148.19 made in one lump sum within one year of the prior service credit 148.20 authorization. Payment of the amount calculated under this 148.21 section must be made by the applicable eligible person. 148.22 However, the current employer or the prior employer may, at its 148.23 discretion, pay all or any portion of the payment amount that 148.24 exceeds an amount equal to the employee contribution rates in 148.25 effect during the period or periods of prior service applied to 148.26 the actual salary rates in effect during the period or periods 148.27 of prior service, plus interest at the rate of 8.5 percent a 148.28 year compounded annually from the date on which the 148.29 contributions would otherwise have been made to the date on 148.30 which the payment is made. If the employer agrees to payments 148.31 under thisparagraphsubdivision, the purchaser must make the 148.32 employee payments required under thisparagraphsubdivision 148.33 within 290 days of the prior service credit authorization. If 148.34 that employee payment is made, the employer payment under 148.35 thisparagraphsubdivision must be remitted to the chief 148.36 administrative officer of the public pension plan within 60 days 149.1 of receipt by the chief administrative officer of the employee 149.2 payments specified under thisparagraphsubdivision. 149.3(c)Subd. 3. [DOCUMENTATION.] The prospective purchaser 149.4 must provide any relevant documentation required by the chief 149.5 administrative officer of the public pension plan to determine 149.6 eligibility for the prior service credit under this section. 149.7(d)Subd. 4. [PAYMENT PRECONDITION FOR CREDIT GRANT.] 149.8 Service credit for the purchase period must be granted by the 149.9 public pension plan to the purchaser upon receipt of the 149.10 purchase payment amount specified inparagraph (b)subdivision 2. 149.11 Sec. 42. Minnesota Statutes 2001 Supplement, section 149.12 356.555, is amended to read: 149.13 356.555 [PARENTAL OR FAMILY LEAVE SERVICE CREDIT PURCHASE.] 149.14 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZATION.] 149.15 (a) Notwithstanding any provision to the contrary of the laws 149.16 governing a covered pension plan enumerated in subdivision 4, a 149.17 member of the pension plan who has at least three years of 149.18 allowable service covered by the applicable pension plan and who 149.19 was granted by the employer a parental leave of absence as 149.20 defined in paragraph (b), or who was granted by the employer a 149.21 family leave of absence as defined in paragraph (c), or who had 149.22 a parental or family-related break in employment, as defined in 149.23 paragraph (d), for which the person did not previously receive 149.24 service credit or for which the person did not receive or 149.25 purchase service credit from another defined benefit public 149.26 employee pension plan, is entitled to purchase the actual period 149.27 of the leave or of the break in service, up to five years, of 149.28 allowable service credit in the applicable retirement plan. The 149.29 purchase payment amount is governed by section 356.55. 149.30 (b) For purposes of this section, a parental leave of 149.31 absence is a temporary period of interruption of or separation 149.32 from active employment for the purposes of handling maternity or 149.33 paternity duties that has been approved by the employing unit 149.34 and that includes the right of reinstatement to employment. 149.35 (c) For purposes of this section, a family leave of absence 149.36 is a family leave under United States Code, title 42, section 150.1 12631, as amended. 150.2 (d) For purposes of this section, a parental or 150.3 family-related break in employment is a period following a 150.4 termination of active employment primarily for the purpose of 150.5 the birth of a child, the adoption of a child, or the provision 150.6 of care to a near relative or in-law, after which the person 150.7 returned to the prior employing unit or to an employing unit 150.8 covered by the same pension plan that provided retirement 150.9 coverage immediately prior to the termination of employment. 150.10 Subd. 2. [APPLICATION AND DOCUMENTATION.] (a) A person who 150.11 desires to purchase service credit under subdivision 1 must 150.12 apply for the service credit purchase with the chief 150.13 administrative officer of the enumerated pension plan. 150.14 (b) The application must include all necessary 150.15 documentation of the qualifications of the person to make the 150.16 purchase, signed written permission to allow the chief 150.17 administrative officer to request and receive necessary 150.18 verification of all applicable facts and eligibility 150.19 requirements, and any other relevant information that the chief 150.20 administrative officer may require. 150.21 Subd. 3. [SERVICE CREDIT GRANT.] Allowable and formula 150.22 service credit in the applicable enumerated pension plan for the 150.23 purchase period must be granted to the purchaser upon receipt of 150.24 the purchase payment amount calculated under section 356.55. 150.25 Payment of the purchase amount must be made before the person 150.26 retires. 150.27 Subd. 4. [COVERED PENSION PLANS.] This section applies to 150.28 the following pension plans: 150.29 (1) the general state employees retirement plan governed by 150.30 chapter 352; 150.31 (2) the correctional state employees retirement plan 150.32 governed by chapter 352; 150.33 (3) the generalpublicemployees retirement plan of the 150.34 public employees retirement association governed by chapter 353; 150.35 (4) the public employees police and fire plan governed by 150.36 chapter 353; 151.1 (5) the teachers retirement plan governed by chapter 354; 151.2 (6) the Minneapolis teachers retirement fund association 151.3 governed by chapter 354A; 151.4 (7) the Saint Paul teachers retirement fund association 151.5 governed by chapter 354A; 151.6 (8) the Duluth teachers retirement fund association 151.7 governed by chapter 354A; 151.8 (9) the Minneapolis employees retirement plan governed by 151.9 chapter 422A; 151.10 (10) the Minneapolis police relief association governed by 151.11 chapter 423B; and 151.12 (11) the Minneapolis fire department relief association 151.13 governed bysections 69.25 to 69.53 and augmented by Laws 1959,151.14chapters 213, 491, and 568, and other special local legislation151.15 chapter 423C. 151.16 COVERED SALARY LIMITATION 151.17 Sec. 43. Minnesota Statutes 2000, section 356.611, is 151.18 amended to read: 151.19 356.611 [LIMITATION ON PUBLIC EMPLOYEE SALARIES FOR PENSION 151.20 PURPOSES.] 151.21 Subdivision 1. [STATE SALARY LIMITATIONS.] (a) 151.22 Notwithstanding any provision of law, bylaws, articles of 151.23 incorporation, retirement and disability allowance plan 151.24 agreements, or retirement plan contracts to the contrary, the 151.25 covered salary for pension purposes for a plan participant of a 151.26 covered retirement fundunderenumerated in section 356.30, 151.27 subdivision 3, may not exceed 95 percent of the salary 151.28 established for the governor under section 15A.082 at the time 151.29 the person received the salary. 151.30 (b) This section does not apply to a salary paid: 151.31 (1) to the governor; 151.32 (2) to an employee of a political subdivision in a position 151.33 that is excluded from the limit as specified under section 151.34 43A.17, subdivision 9; or 151.35 (3) to a state employee in a position for which the 151.36 commissioner of employee relations has approved a salary rate 152.1 that exceeds 95 percent of the governor's salary. 152.2 (c) The limited covered salary determined under this 152.3 section must be used in determining employee and employer 152.4 contributions and in determining retirement annuities and other 152.5 benefits under the respective covered retirement fund and under 152.6 this chapter. 152.7 Subd. 2. [FEDERAL COMPENSATION LIMITS.] For members first 152.8 contributing to a covered pension plancovered underenumerated 152.9 in section 356.30, subdivision 3, on or after July 1, 1995, 152.10 compensation in excess of the limitation set forth in Internal 152.11 Revenue Code 401(a)(17)shallmay not be included for 152.12 contribution and benefit computation purposes. The compensation 152.13 limit set forth in Internal Revenue Code 401(a)(17) on June 30, 152.14 1993,shall applyapplies to members first contributing before 152.15 July 1, 1995. 152.16 MEMBER CONTRIBUTION EMPLOYER PICK UP 152.17 Sec. 44. Minnesota Statutes 2001 Supplement, section 152.18 356.62, is amended to read: 152.19 356.62 [PAYMENT OF EMPLOYEE CONTRIBUTION.] 152.20 (a) For purposes of any public pension plan, as defined in 152.21 section 365.615, paragraph (b), each employer shall pick up the 152.22 employee contributions required pursuant to law or the pension 152.23 plan for all salary payable after December 31, 1982. If the 152.24 United States Treasury department rules thatpursuant tounder 152.25 section 414(h) of the Internal Revenue Code of 1986, as amended 152.26 through December 31, 1992, that these picked up contributions 152.27 are not includable in the employee's adjusted gross income until 152.28 they are distributed or made available, then these picked up 152.29 contributionsshallmust be treated as employer contributions in 152.30 determining tax treatmentpursuant tounder the Internal Revenue 152.31 Code of 1986, as amended through December 31, 1992, and the 152.32 employer shall discontinue withholding federal income taxes on 152.33 the amount of these contributions. The employer shall pay these 152.34 picked up contributions from the same source of funds as is used 152.35 to pay the salary of the employee. The employer shall pick up 152.36 these employee contributions by a reduction in the cash salary 153.1 of the employee. 153.2 (b) Employee contributions that are picked upshallmust be 153.3 treated for all purposes of the public pension plan in the same 153.4 manner and to the same extent as employee contributions that 153.5 were made prior to the date on which the employee contributions 153.6 pick up began. The amount of the employee contributions that 153.7 are picked upshallmust be included in the salary upon which 153.8 retirement coverage is credited and retirement and survivor's 153.9 benefits are determined. For purposes of this section, 153.10 "employee" means any person covered by a public pension plan. 153.11 For purposes of this section, "employee contributions" include 153.12 any sums deducted from the employee's salary or wages or 153.13 otherwise paid in lieu thereof, regardless of whether they are 153.14 denominated contributions by the public pension plan. 153.15 (c) For any calendar year in which withholding has been 153.16 reducedpursuant tounder this section, the employing unit shall 153.17 supply each employee and the commissioner of revenue with an 153.18 information return indicating the amount of the employer's 153.19 picked-up contributions for the calendar year that were not 153.20 subject to withholding. This returnshallmust be provided to 153.21 the employee not later than January 31 of the succeeding 153.22 calendar year. The commissioner of revenue shall prescribe the 153.23 form of the return and the provisions of section 289A.12shall153.24 must apply to the extent not inconsistent with the provisions of 153.25 this section. 153.26 PENSION ASSET AND INVESTMENT 153.27 LIMITATIONS 153.28 Sec. 45. [356.63] [LIMITATION ON USE OF PUBLIC PENSION 153.29 PLAN ASSETS.] 153.30 (a) Money held by or credited to a public pension plan as 153.31 assets, including employer and employee contributions, state 153.32 aid, appropriations from the state or a governmental 153.33 subdivision, and accrued earnings on investments, constitutes a 153.34 dedicated fund. The dedicated fund may be used exclusively to 153.35 pay retirement annuities, service pensions, disability benefits, 153.36 survivor benefits, refunds of contributions, or other benefits 154.1 provided under the benefit plan document or documents governing 154.2 the public pension plan, and to pay reasonable administrative 154.3 expenses approved by the governing board of the public pension 154.4 plan or by another appropriate authority. No assets of a public 154.5 pension plan may be loaned or transferred to the state or a 154.6 governmental subdivision or be used to amortize an unfunded 154.7 actuarial accrued liability in another public pension plan or 154.8 fund, whether or not the plan providing the assets consolidates 154.9 or has consolidated with the plan receiving the assets. Nothing 154.10 in this section prohibits a public pension plan or the state 154.11 board of investment from investing the assets of a plan as 154.12 authorized by law, including the investment of the assets of 154.13 public pension plans by the state board of investment in a 154.14 commingled investment fund. 154.15 (b) A public pension plan for purposes of this section 154.16 means a pension plan or fund specified in section 356.20, 154.17 subdivision 2, or 356.30, subdivision 3, or a retirement or 154.18 pension plan or fund, including a supplemental retirement plan 154.19 or fund, established, maintained, or supported by a governmental 154.20 subdivision or public body whose revenues are derived from 154.21 taxation, fees, assessments, or other public sources. 154.22 Sec. 46. [356.64] [REAL ESTATE INVESTMENTS.] 154.23 (a) Notwithstanding any law to the contrary, any public 154.24 pension plan whose assets are not invested by the state board of 154.25 investment may invest its funds in Minnesota situs nonfarm real 154.26 estate ownership interests or loans secured by mortgages or 154.27 deeds of trust if the investment is consistent with section 154.28 356A.04. 154.29 (b) Except to the extent authorized in the case of the 154.30 Minneapolis employees retirement fund under section 422A.05, 154.31 subdivision 2c, paragraph (a), an investment otherwise 154.32 authorized by this section must also comply with the 154.33 requirements and limitations of section 11A.24, subdivision 6. 154.34 ABANDONED PENSION FUND AMOUNTS 154.35 Sec. 47. Minnesota Statutes 2001 Supplement, section 154.36 356.65, subdivision 1, is amended to read: 155.1 Subdivision 1. [DEFINITIONS.] For purposes of this 155.2 section, unless the context clearly indicates otherwise, each of 155.3 the following termsshall havehas themeaningsmeaning given to 155.4themit: 155.5 (a) "Public pension fund" means any public pension plan as 155.6 defined in section356.615356.63, paragraph (b), and any 155.7 Minnesota volunteer firefighters relief association which is 155.8 establishedpursuant tounder chapter 424A and governedpursuant155.9tounder sections 69.771 to 69.776. 155.10 (b) "Unclaimed public pension fund amounts" means any 155.11 amounts representing accumulated member contributions, any 155.12 outstanding unpaid annuity, service pension or other retirement 155.13 benefit payments, including those made on warrants issued by the 155.14 commissioner of finance, which have been issued and delivered 155.15 for more than six months prior to the date of the end of the 155.16 fiscal year applicable to the public pension fund, and any 155.17 applicable interest to the credit of: 155.18 (1) an inactive or former member of a public pension fund 155.19 who is not entitled to a defined retirement annuity and who has 155.20 not applied for a refund of those amounts within five years 155.21 after the last member contribution was made; or 155.22 (2) a deceased inactive or former member of a public 155.23 pension fund if no survivor is entitled to a survivor benefit 155.24 and no survivor, designated beneficiary or legal representative 155.25 of the estate has applied for a refund of those amounts within 155.26 five years after the date of death of the inactive or former 155.27 member. 155.28 Sec. 48. Minnesota Statutes 2000, section 356.65, 155.29 subdivision 2, is amended to read: 155.30 Subd. 2. [DISPOSITION OF ABANDONED AMOUNTS.] Any unclaimed 155.31 public pension fund amounts existing in any public pension 155.32 fundshall beare presumed to be abandoned, butshallare not 155.33besubject to the provisions of sections 345.31 to 345.60. 155.34 Unless the benefit plan of the public pension fund specifically 155.35 provides for a different disposition of unclaimed or abandoned 155.36 funds or amounts, any unclaimed public pension fund 156.1 amountsshallcancel andshallmust be credited to the public 156.2 pension fund. If the unclaimed public pension fund amount 156.3 exceeds $25 and the inactive or former member again becomes a 156.4 member of the applicable public pensionfundplan or applies for 156.5 a retirement annuitypursuant tounder section 3A.12, 352.72, 156.6 352B.30, 352C.051, 353.71, 354.60, 356.30, or 422A.16, 156.7 subdivision 8, whicheveris applicable,applies, the canceled 156.8 amountshallmust be restored to the credit of the person. 156.9 HEALTH INSURANCE WITHHOLDING 156.10 Sec. 49. Minnesota Statutes 2000, section 356.87, is 156.11 amended to read: 156.12 356.87 [HEALTH INSURANCE WITHHOLDING.] 156.13 (a) Upon authorization of a person entitled to receive a 156.14 retirement annuity, disability benefit or survivor benefit, the 156.15 executive director of a public pension fundlistedenumerated in 156.16 section 356.20, subdivision 2, shall withhold health insurance 156.17 premium amounts from the retirement annuity, disability benefit 156.18 or survivor benefit, and shall pay the premium amounts to the 156.19 public employees insurance program. 156.20 (b) The public employees insurance program shall reimburse 156.21 a public pension fund for the administrative expense of 156.22 withholding the premium amounts and shall assume liability for 156.23 the failure of a public pension fund to properly withhold the 156.24 premium amounts. 156.25 RETIREMENT PLAN 156.26 ADMINISTRATION 156.27 Sec. 50. [356B.05] [PUBLIC PENSION ADMINISTRATION 156.28 LEGISLATION.] 156.29 (a) Proposed administrative legislation recommended by or 156.30 on behalf of the Minnesota state retirement system, the public 156.31 employees retirement association, the teachers retirement 156.32 association, the Minneapolis employees retirement fund, or a 156.33 first class city teachers retirement fund association must be 156.34 presented to the legislative commission on pensions and 156.35 retirement, the state and local governmental operations 156.36 committee of the senate, and the governmental operations and 157.1 veterans affairs policy committee of the house of 157.2 representatives on or before October 1 of each year in order for 157.3 the proposed administrative legislation to be acted upon during 157.4 the upcoming legislative session. The executive director or the 157.5 deputy executive director of the legislative commission on 157.6 pensions and retirement shall provide written comments on the 157.7 proposed provisions to the public pension plans by November 15 157.8 of each year. 157.9 (b) Proposed administrative legislation recommended by or 157.10 on behalf of a public employee pension plan or system under 157.11 paragraph (a) must address provisions: 157.12 (1) authorizing allowable service credit for leaves of 157.13 absence and related circumstances; 157.14 (2) governing offsets or deductions from the amount of 157.15 disability benefits; 157.16 (3) authorizing the purchase of allowable service credit 157.17 for prior uncredited periods; 157.18 (4) governing subsequent employment earnings by reemployed 157.19 annuitants; and 157.20 (5) authorizing retroactive effect for retirement annuity 157.21 or benefit applications. 157.22 (c) Where possible and desirable, taking into account the 157.23 differences among the public pension plans in existing law and 157.24 the unique characteristics of the individual public pension fund 157.25 memberships, uniform provisions relating to paragraph (b) for 157.26 all applicable public pension plans must be presented for 157.27 consideration during the legislative session. Supporting 157.28 documentation setting forth the policy rationale for each set of 157.29 uniform provisions must accompany the proposed administrative 157.30 legislation. 157.31 Sec. 51. [356B.10] [PUBLIC PENSION FACILITIES.] 157.32 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 157.33 subdivision apply to this section. 157.34 (b) "Boards" mean the board of directors of the Minnesota 157.35 state retirement system, the board of trustees of the public 157.36 employees retirement association, and the board of trustees of 158.1 the teachers retirement association. 158.2 (c) "Commissioner" means the commissioner of administration. 158.3 Subd. 2. [BUILDING; RELATED FACILITIES.] (a) The 158.4 commissioner of administration may provide a building and 158.5 related facilities to be jointly occupied by the board of 158.6 directors of the Minnesota state retirement system, the board of 158.7 trustees of the public employees retirement association, and the 158.8 board of trustees of the teachers retirement association for the 158.9 administration of their public pension systems. 158.10 (b) Design of the facilities is not subject to section 158.11 16B.33. The competitive acquisition process set forth in 158.12 chapter 16C does not apply if the process set forth in 158.13 subdivision 3 is followed. 158.14 (c) The boards and the commissioner must submit the plans 158.15 for a public pension facility under this section to the chair of 158.16 the house ways and means committee and to the chair of the 158.17 senate state government finance committee for their approval 158.18 before the plans are implemented. 158.19 Subd. 3. [CONTRACTING PROCEDURES.] (a) The commissioner 158.20 may enter into a contract for facilities with a contractor to 158.21 furnish the architectural, engineering, and related services as 158.22 well as the labor, materials, supplies, equipment, and related 158.23 construction services on the basis of a request for 158.24 qualifications and competitive responses received through a 158.25 request for proposals process that must include the items listed 158.26 in paragraphs (b) to (i). 158.27 (b) Before issuing a request for qualifications and a 158.28 request for proposals, the commissioner, with the assistance of 158.29 the boards, shall prepare performance criteria and 158.30 specifications that include: 158.31 (1) a general floor plan or layout indicating the general 158.32 dimensions of the public building and space requirements; 158.33 (2) design criteria for the exterior and site area; 158.34 (3) performance specifications for all building systems and 158.35 components to ensure quality and cost efficiencies; 158.36 (4) conceptual floor plans for systems space; 159.1 (5) preferred types of interior finishes, styles of 159.2 windows, lighting and outlets, doors, and features such as 159.3 built-in counters and telephone wiring; 159.4 (6) mechanical and electrical requirements; 159.5 (7) special interior features required; and 159.6 (8) a completion schedule. 159.7 (c) The commissioner shall first solicit statements of 159.8 qualifications from eligible contractors and select more than 159.9 one qualified contractor based upon experience, technical 159.10 competence, past performance, capability to perform, and other 159.11 appropriate facts. Contractors selected under this process must 159.12 be, employ, or have as a partner, member, coventurer, or 159.13 subcontractor, persons licensed and registered under chapter 326 159.14 to provide the services required to design and complete the 159.15 project. The commissioner does not have to select any of the 159.16 respondents if none reasonably fulfill the criteria set forth in 159.17 this paragraph. 159.18 (d) The contractors selected shall be asked to respond to a 159.19 request for proposals. Responses must include site plans, 159.20 design concept, elevation, statement of material to be used, 159.21 floor layouts, a detailed development budget, and a total cost 159.22 to complete the project. The proposal must indicate that the 159.23 contractor obtained at least two proposals from subcontractors 159.24 for each item of work and must set forth how the subcontractors 159.25 were selected. The commissioner, with the assistance of the 159.26 boards, shall evaluate the proposals based upon design, cost, 159.27 quality, aesthetics, and the best overall value to the state 159.28 pension funds. The commissioner need not select any of the 159.29 proposals submitted and reserves the right to reject any and all 159.30 proposals, and may terminate the process or revise the request 159.31 for proposals and solicit new proposals if the commissioner 159.32 determines that the best interests of the pension funds would be 159.33 better served by doing so. Proposals submitted are nonpublic 159.34 data until the contract is awarded. 159.35 (e) The contractor selected must comply with sections 159.36 574.26 to 574.261. Before executing a final contract, the 160.1 contractor selected shall certify a firm construction price and 160.2 completion date. 160.3 (f) The commissioner may consider building sites in the 160.4 city of St. Paul and surrounding suburbs. 160.5 (g) Any land, building, or facility leased, constructed, or 160.6 acquired and any leasehold interest acquired under this section 160.7 must be held by the state in trust for the three retirement 160.8 systems as tenants in common. Each retirement system fund must 160.9 consider its interest as a fixed asset of its pension fund in 160.10 accordance with governmental accounting standards. 160.11 (h) The commissioner may lease to another governmental 160.12 subdivision, to a private company under contract with the state 160.13 board of investment, or with the board of directors of the 160.14 Minnesota state retirement system, whichever applies, to provide 160.15 deferred compensation services under section 352.96, any portion 160.16 of the funds' building and lands that is not required for their 160.17 direct use upon terms and conditions they deem to be in the best 160.18 interest of the pension funds. Any income accruing from the 160.19 rentals must be separately accounted for and utilized to offset 160.20 ongoing administrative expenses and any excess must be carried 160.21 forward for future administrative expenses. The commissioner 160.22 may also enter into lease agreements for the establishment of 160.23 satellite offices should the boards find them to be necessary in 160.24 order to assure their members reasonable access to their 160.25 services. The commissioner may lease under section 16B.24 any 160.26 portion of the facilities not required for the direct use of the 160.27 boards. 160.28 (i) The boards shall formulate and adopt a written working 160.29 agreement that sets forth the nature of each retirement system's 160.30 ownership interest, the duties and obligations of each system 160.31 toward the construction, operation, and maintenance costs of its 160.32 facilities, and identifies one retirement fund to serve as 160.33 manager for operating and maintenance purposes. The boards may 160.34 contract with independent third parties for maintenance-related 160.35 activities, services, and supplies, and may use the services of 160.36 the department of administration where economically feasible to 161.1 do so. If the boards cannot agree or resolve a dispute about 161.2 operations or maintenance of the facilities, they may request 161.3 the commissioner of administration to appoint a representative 161.4 from the department's real estate management division to serve 161.5 as arbitrator of the dispute with authority to issue a written 161.6 resolution of the dispute. 161.7 Subd. 4. [REVENUE BONDS.] The commissioner of finance, on 161.8 request of the governor, may sell and issue revenue bonds in an 161.9 aggregate principal amount up to $38,000,000 to achieve the 161.10 purposes described in subdivisions 1 and 2, plus the amount 161.11 needed to pay issuance costs and interest costs and to establish 161.12 necessary reserves to secure the bonds. The commissioner of 161.13 finance may issue bonds for the purpose of refunding bonds 161.14 issued under this subdivision. The bonds may be sold and issued 161.15 on terms and in a manner the commissioner of finance determines 161.16 to be in the best interests of the state. The proceeds of the 161.17 bonds must be credited to a bond proceeds account in the pension 161.18 building fund which the commissioner of finance must create in 161.19 the state treasury. 161.20 Subd. 5. [SECURITY.] The boards may pledge any or all 161.21 assets of the boards as security for the bonds. The bonds and 161.22 the interest on them must be paid solely from and secured by all 161.23 assets of the boards pledged and appropriated for these purposes 161.24 to the debt service fund created in subdivision 6 and any 161.25 investment income on the fund and any reserve established for 161.26 this purpose. The bonds are not public debt, and the full 161.27 faith, credit, and taxing powers of the state are not pledged 161.28 for their payment. The bonds and the interest on them must not 161.29 be paid, directly or indirectly, in whole or in part, from a tax 161.30 of statewide application on any class of property, income, 161.31 transaction, or privilege. 161.32 Subd. 6. [DEBT SERVICE FUND.] There is established in the 161.33 state treasury a separate and special pension building debt 161.34 service fund. Money in the funds managed by the boards is 161.35 appropriated to the boards for transfer to the pension building 161.36 debt service fund. Money appropriated and transferred to the 162.1 fund and investment income on it on hand or required to be 162.2 transferred to the fund must be used and is irrevocably 162.3 appropriated to pay when due the principal of and interest on 162.4 the bonds authorized in subdivision 4. 162.5 Subd. 7. [COVENANTS; AGREEMENTS.] The commissioner of 162.6 finance may, for and on behalf of the state, enter into 162.7 covenants and agreements not inconsistent with subdivisions 1 to 162.8 6 as may be necessary or desirable to facilitate the sale and 162.9 issuance of the bonds on terms favorable to the state, 162.10 including, but not limited to, covenants and agreements relating 162.11 to the payment of and security for the bonds, tax exemption, and 162.12 disclosure of information required by federal and state 162.13 securities laws. The covenants and agreements of the 162.14 commissioner of finance constitute an enforceable contract of 162.15 the state and the state pledges and agrees with the holders of 162.16 any bonds that the state will not limit or alter the rights 162.17 vested in the commissioner of finance to fulfill the terms of 162.18 the covenants or agreements made with the holders of the bonds, 162.19 or in any way impair the rights and remedies of the holders 162.20 until the bonds, together with the interest on them, with 162.21 interest on any unpaid installments of interest, and all costs 162.22 and expenses in connection with any action or proceeding by or 162.23 on behalf of the holders, are fully met and discharged. The 162.24 commissioner of finance may include this pledge and agreement of 162.25 the state in any covenant or agreement with the holders of the 162.26 bonds. Sections 16A.672 and 16A.675 apply to the bonds. 162.27 Sec. 52. [CROSS-REFERENCE CHANGES.] 162.28 In the next and subsequent editions of Minnesota Statutes, 162.29 the revisor of statutes shall, in each section indicated in 162.30 column A, replace the cross-reference specified in column B with 162.31 the cross-reference set forth in column C: 162.32 column A column B column C 162.33 3.751, subd. 1 356.89 356B.10 162.34 3A.02, subd. 1 356.215, subd. 4d 356.215, subd. 8 162.35 3A.02, subd. 4 356.215, subd. 4d 356.215, subd. 8 162.36 3A.11, subd. 1 356.215, subd. 4d 356.215, subd. 8 163.1 11A.18, subd. 6 356.215, subd. 4d 356.215, subd. 8 163.2 11A.18, subd. 9 356.215, subd. 4d 356.215, subd. 8 163.3 11A.18, subd. 11 356.215, subd. 4d 356.215, subd. 8 163.4 13.631, subd. 2 356.80 356.49 163.5 69.77, subd. 2b 356.215, subds. 4 356.215, subds. 4 to 15 163.6 to 4k 163.7 69.77, subd. 2b 356.215, subd. 4d 356.215, subd. 8 163.8 69.773, subd. 2 356.215, subd. 4d 356.215, subd. 8 163.9 69.773, subd. 4 356.215, subd. 4d 356.215, subd. 8 163.10 352.01, subd. 12 356.215, subd. 4d 356.215, subd. 8 163.11 352.115, subd. 3 356.119, subd. 1 356.315, subd. 1 163.12 352.115, subd. 3 356.119, subd. 2 356.315, subd. 2 163.13 352.115, subd. 10 356.58 356.47 163.14 352.119, subd. 2 356.215, subd. 4d 356.215, subd. 8 163.15 352.72, subd. 2 356.215, subd. 4d 356.215, subd. 8 163.16 352.87, subd. 3 356.119, subd. 2a 356.315, subd. 2a 163.17 352.91, subd. 5 356.215, subd. 4d 356.215, subd. 8 163.18 352.93, subd. 2 356.119, subd. 5 356.315, subd. 5 163.19 352.95, subd. 1 356.119, subd. 5 356.315, subd. 5 163.20 352B.08, subd. 2 356.119, subd. 6 356.315, subd. 6 163.21 352B.08, subd. 3 356.215, subd. 4d 356.215, subd. 8 163.22 352B.10, subd. 1 356.119, subd. 6 356.315, subd. 6 163.23 352B.26, subd. 3 356.215, subd. 4d 356.215, subd. 8 163.24 352B.30, subd. 4 356.215, subd. 4d 356.215, subd. 8 163.25 352C.031, subd. 4 356.215, subd. 4d 356.215, subd. 8 163.26 352C.033 356.215, subd. 4d 356.215, subd. 8 163.27 353.01, subd. 14 356.215, subd. 4d 356.215, subd. 8 163.28 353.03, subd. 3 356.215, subd. 4, 356.215, subd. 8 163.29 clause (4) 163.30 353.271, subd. 2 356.215, subd. 4d 356.215, subd. 8 163.31 353.29, subd. 3 356.119, subd. 3 356.315, subd. 3 163.32 353.29, subd. 3 356.119, subd. 4 356.315, subd. 4 163.33 353.29, subd. 3 356.119, subd. 1 356.315, subd. 1 163.34 353.29, subd. 3 356.119, subd. 2 356.315, subd. 2 163.35 353.29, subd. 4 356.371, subd. 3 356.46, subd. 3 163.36 353.37, subd. 3a 356.58 356.47 164.1 353.651, subd. 3 356.119, subd. 6 356.315, subd. 6 164.2 353.656, subd. 1 356.119, subd. 6 356.315, subd. 6 164.3 353.665, subd. 8 356.215, subd. 4d 356.215, subd. 8 164.4 353.71, subd. 2 356.215, subd. 4d 356.215, subd. 8 164.5 353A.08, subd. 1 356.215, subd. 4d 356.215, subd. 8 164.6 353A.08, subd. 2 356.215, subd. 4d 356.215, subd. 8 164.7 353A.09, subd. 2 356.215, subd. 4d 356.215, subd. 8 164.8 353A.09, subd. 5 356.215, subd. 4d 356.215, subd. 8 164.9 353E.04, subd. 3 356.119, subd. 5a 356.315, subd. 5a 164.10 353E.06, subd. 1 356.119, subd. 5a 356.315, subd. 5a 164.11 354.05, subd. 7 356.215, subd. 4d 356.215, subd. 8 164.12 354.07, subd. 1 356.215, subd. 4d 356.215, subd. 8 164.13 354.44, subd. 2 356.215, subd. 4d 356.215, subd. 8 164.14 354.44, subd. 5 356.58 356.47 164.15 354.44, subd. 6 356.119, subd. 1 356.315, subd. 1 164.16 354.44, subd. 6 356.119, subd. 2 356.315, subd. 2 164.17 354.44, subd. 6 356.119, subd. 3 356.315, subd. 3 164.18 354.44 356.119 356.315 164.19 354.45, subd. 2 356.215, subd. 4d 356.215, subd. 8 164.20 354.48, subd. 3 356.215, subd. 4d 356.215, subd. 8 164.21 354.55, subd. 11 356.215, subd. 4d 356.215, subd. 8 164.22 354.63, subd. 2 356.215, subd. 4d 356.215, subd. 8 164.23 354A.011, subd. 3 356.215, subd. 4d 356.215, subd. 8 164.24 354A.026 356.215, subd. 4g 356.215, subd. 11 164.25 354A.105 356.215, subd. 4d 356.215, subd. 8 164.26 354A.12, subd. 1a 356.215, subd. 4d 356.215, subd. 8 164.27 354A.31, subd. 1a 356.371, subd. 3 356.46, subd. 3 164.28 354A.31, subd. 3 356.58 356.47 164.29 354A.31, subd. 4 356.119, subd. 1 356.315, subd. 1 164.30 354A.31, subd. 4 356.119, subd. 2 356.315, subd. 2 164.31 354A.31, subd. 4a 356.119, subd. 1 356.315, subd. 1 164.32 354A.31, subd. 4a 356.119, subd. 2 356.315, subd. 2 164.33 354A.34 356.215, subd. 4d 356.215, subd. 8 164.34 422A.01, subd. 6 356.215, subd. 4d 356.215, subd. 8 164.35 422A.06, subd. 5 356.215, subd. 4d 356.215, subd. 8 164.36 422A.08, subd. 5a 356.215, subd. 4d 356.215, subd. 8 165.1 422A.101, subd. 3 356.865 356.43 165.2 422A.15, subd. 2 356.215, subd. 4d 356.215, subd. 8 165.3 422A.15, subd. 3 356.215, subd. 4d 356.215, subd. 8 165.4 422A.16, subd. 2 356.215, subd. 4d 356.215, subd. 8 165.5 422A.17 356.215, subd. 4d 356.215, subd. 8 165.6 422A.23, subd. 12 356.215, subd. 4d 356.215, subd. 8 165.7 423A.02, subd. 1 356.215, subd. 4, 356.215, subd. 8 165.8 clause (4) 165.9 490.121, subd. 20 356.215, subd. 4d 356.215, subd. 8 165.10 490.121, subd. 22 356.119, subd. 7 356.315, subd. 7 165.11 490.124, subd. 1 356.119, subd. 7 356.315, subd. 7 165.12 490.124, subd. 1 356.119, subd. 8 356.315, subd. 8 165.13 490.124, subd. 5 356.215, subd. 4d 356.215, subd. 8 165.14 Sec. 53. [REPEALER.] 165.15 Subdivision 1. [REPEALER OF OBSOLETE 165.16 PROVISIONS.] Minnesota Statutes 2000, sections 356.325; 356.35; 165.17 356.36; 356.37; 356.38; 356.39; 356.45; 356.451; 356.452; 165.18 356.453; 356.454; and 356.455, are repealed. 165.19 Subd. 2. [REPEALER OF PROVISIONS REORGANIZED.] (a) 165.20 Minnesota Statutes 2000, sections 356.19; 356.305; 356.306; 165.21 356.31; 356.371, subdivisions 2 and 3; 356.372; 356.615; 356.71; 165.22 356.80; 356.81; 356.86; 356.865; 356.88; and 356.89, are 165.23 repealed. 165.24 (b) Minnesota Statutes 2001 Supplement, sections 356.371, 165.25 subdivision 1; and 356.866, are repealed. 165.26 Subd. 3. [REPEALER TO RESOLVE REVISOR NOTE.] Laws 1997, 165.27 chapter 233, article 1, section 58, is repealed. 165.28 Sec. 54. [EFFECTIVE DATE.] 165.29 (a) Sections 1 to 53 are effective July 1, 2002. 165.30 (b) Section 51 is the continuation of the public pension 165.31 facility authority previously contained in Minnesota Statutes 165.32 2000, section 356.89, and may not be considered a grant of 165.33 authority to build or bond for a second building. 165.34 ARTICLE 11 165.35 JOINT RETIREMENT PLAN 165.36 BUILDING LEASE AUTHORITY 166.1 Section 1. Minnesota Statutes 2000, section 356.89, 166.2 subdivision 3, is amended to read: 166.3 Subd. 3. [CONTRACTING PROCEDURES.] (a) The commissioner 166.4 may enter into a contract for facilities with a contractor to 166.5 furnish the architectural, engineering, and related services as 166.6 well as the labor, materials, supplies, equipment, and related 166.7 construction services on the basis of a request for 166.8 qualifications and competitive responses received through a 166.9 request for proposals process that must include the items listed 166.10 in paragraphs (b) to (i). 166.11 (b) Before issuing a request for qualifications and a 166.12 request for proposals, the commissioner, with the assistance of 166.13 the boards, shall prepare performance criteria and 166.14 specifications that include: 166.15 (1) a general floor plan or layout indicating the general 166.16 dimensions of the public building and space requirements; 166.17 (2) design criteria for the exterior and site area; 166.18 (3) performance specifications for all building systems and 166.19 components to ensure quality and cost efficiencies; 166.20 (4) conceptual floor plans for systems space; 166.21 (5) preferred types of interior finishes, styles of 166.22 windows, lighting and outlets, doors, and features such as 166.23 built-in counters and telephone wiring; 166.24 (6) mechanical and electrical requirements; 166.25 (7) special interior features required; and 166.26 (8) a completion schedule. 166.27 (c) The commissioner shall first solicit statements of 166.28 qualifications from eligible contractors and select more than 166.29 one qualified contractor based upon experience, technical 166.30 competence, past performance, capability to perform, and other 166.31 appropriate facts. Contractors selected under this process must 166.32 be, employ, or have as a partner, member, coventurer, or 166.33 subcontractor, persons licensed and registered under chapter 326 166.34 to provide the services required to design and complete the 166.35 project. The commissioner does not have to select any of the 166.36 respondents if none reasonably fulfill the criteria set forth in 167.1 this paragraph. 167.2 (d) The contractors selected shall be asked to respond to a 167.3 request for proposals. Responses must include site plans, 167.4 design concept, elevation, statement of material to be used, 167.5 floor layouts, a detailed development budget, and a total cost 167.6 to complete the project. The proposal must indicate that the 167.7 contractor obtained at least two proposals from subcontractors 167.8 for each item of work and must set forth how the subcontractors 167.9 were selected. The commissioner, with the assistance of the 167.10 boards, shall evaluate the proposals based upon design, cost, 167.11 quality, aesthetics, and the best overall value to the state 167.12 pension funds. The commissioner need not select any of the 167.13 proposals submitted and reserves the right to reject any and all 167.14 proposals, and may terminate the process or revise the request 167.15 for proposals and solicit new proposals if the commissioner 167.16 determines that the best interests of the pension funds would be 167.17 better served by doing so. Proposals submitted are nonpublic 167.18 data until the contract is awarded. 167.19 (e) The contractor selected must comply with sections 167.20 574.26 to 574.261. Before executing a final contract, the 167.21 contractor selected shall certify a firm construction price and 167.22 completion date. 167.23 (f) The commissioner may consider building sites in the 167.24 city of St. Paul and surrounding suburbs. 167.25 (g) Any land, building, or facility leased, constructed, or 167.26 acquired and any leasehold interest acquired under this section 167.27 must be held by the state in trust for the three retirement 167.28 systems as tenants in common. Each retirement system fund must 167.29 consider its interest as a fixed asset of its pension fund in 167.30 accordance with governmental accounting standards. 167.31 (h) The commissioner may lease to another governmental 167.32 subdivision, or to a private company under contract with the 167.33 state board of investment or with the board of directors of the 167.34 Minnesota state retirement system, whichever applies, to provide 167.35 deferred compensation services under section 352.96, any portion 167.36 of the funds' building and lands that is not required for their 168.1 direct use upon terms and conditions they deem to be in the best 168.2 interest of the pension funds. Any income accruing from the 168.3 rentals must be separately accounted for and utilized to offset 168.4 ongoing administrative expenses and any excess must be carried 168.5 forward for future administrative expenses. The commissioner 168.6 may also enter into lease agreements for the establishment of 168.7 satellite offices should the boards find them to be necessary in 168.8 order to assure their members reasonable access to their 168.9 services. The commissioner may lease under section 16B.24 any 168.10 portion of the facilities not required for the direct use of the 168.11 boards. 168.12 (i) The boards shall formulate and adopt a written working 168.13 agreement that sets forth the nature of each retirement system's 168.14 ownership interest, the duties and obligations of each system 168.15 toward the construction, operation, and maintenance costs of its 168.16 facilities, and identifies one retirement fund to serve as 168.17 manager for operating and maintenance purposes. The boards may 168.18 contract with independent third parties for maintenance-related 168.19 activities, services, and supplies, and may use the services of 168.20 the department of administration where economically feasible to 168.21 do so. If the boards cannot agree or resolve a dispute about 168.22 operations or maintenance of the facilities, they may request 168.23 the commissioner of administration to appoint a representative 168.24 from the department's real estate management division to serve 168.25 as arbitrator of the dispute with authority to issue a written 168.26 resolution of the dispute. 168.27 Sec. 2. [EFFECTIVE DATE.] 168.28 Section 1 is effective July 1, 2002. 168.29 ARTICLE 12 168.30 VOLUNTEER FIREFIGHTER RELIEF 168.31 ASSOCIATIONS SERVICE PENSION ELIGIBILITY 168.32 Section 1. Minnesota Statutes 2000, section 424A.02, 168.33 subdivision 1, is amended to read: 168.34 Subdivision 1. [AUTHORIZATION.] (a) A relief association, 168.35 when its articles of incorporation or bylaws so provide, may pay 168.36 out of the assets of its special fund a service pension to each 169.1 of its members who: (1) separates from active service with the 169.2 fire department; (2) reaches age 50; (3) completes at least five 169.3 years of active service as an active member of the municipal 169.4 fire department to which the relief association is associated; 169.5 (4) completes at least five years of active membership with the 169.6 relief association before separation from active service; and 169.7 (5) complies with any additional conditions as to age, service, 169.8 and membership that are prescribed by the bylaws of the relief 169.9 association. A service pension computed under this section may 169.10 be prorated monthly for fractional years of service, if the 169.11 bylaws or articles of incorporation of the relief association so 169.12 provide. The service pension may be paid whether or not the 169.13 municipality or nonprofit firefighting corporation to which the 169.14 relief association is associated qualifies for fire state aid 169.15 under chapter 69. 169.16 (b) In the case of a member who has completed at least five 169.17 years of active service as an active member of the fire 169.18 department to which the relief association is associated on the 169.19 date that the relief association is established and 169.20 incorporated, the requirement that the member complete at least 169.21 five years of active membership with the relief association 169.22 before separation from active service may be waived by the board 169.23 of trustees of the relief association if the member completes at 169.24 least five years of inactive membership with the relief 169.25 association before the payment of the service pension. During 169.26 the period of inactive membership, the member is not entitled to 169.27 receive disability benefit coverage, is not entitled to receive 169.28 additional service credit towards computation of a service 169.29 pension, and is considered to have the status of a person 169.30 entitled to a deferred service pension under subdivision 7. 169.31 (c) No municipality or nonprofit firefighting corporation 169.32 may delegate the power to take final action in setting a service 169.33 pension or ancillary benefit amount or level to the board of 169.34 trustees of the relief association or to approve in advance a 169.35 service pension or ancillary benefit amount or level equal to 169.36 the maximum amount or level that this chapter would allow rather 170.1 than a specific dollar amount or level. 170.2 (d) No relief association as defined in section 424A.001, 170.3 subdivision 4, may pay a service pension or disability benefit 170.4 to a former member of the relief association if that person has 170.5 not separated from active service with the fire department to 170.6 which the relief association is directly associated, unless: 170.7 (1) the person is employed subsequent to retirement by the 170.8 municipality or the independent nonprofit firefighting 170.9 corporation, whichever applies, to perform duties within the 170.10 municipal fire department or corporation on a full-time basis; 170.11 (2) the governing body of the municipality or of the 170.12 corporation has filed its determination with the board of 170.13 trustees of the relief association that the person's experience 170.14 with and service to the fire department in that person's 170.15 full-time capacity would be difficult to replace; and 170.16 (3) the bylaws of the relief association were amended to 170.17 provide for the payment of a service pension or disability 170.18 benefit for such full-time employees. 170.19 ARTICLE 13 170.20 ADDITIONAL CLARIFICATIONS 170.21 Section 1. [CLARIFICATION OF APPROPRIATION.] 170.22 Subdivision 1. [PURPOSE.] This section clarifies treatment 170.23 extended to an individual specified in Laws 2001, chapter 169, 170.24 section 5, and is intended to eliminate any potential windfall 170.25 to the public employees retirement association police and fire 170.26 plan fund and the public employees retirement association 170.27 general employees plan fund that may result from that session 170.28 law. 170.29 Subd. 2. [ELIGIBILITY.] The eligible individual is an 170.30 individual specified in Laws 2001, chapter 169, section 5, who 170.31 was an assistant commissioner in the department of public safety 170.32 from April 30, 1994, through May 31, 1998, while on an 170.33 intergovernmental mobility assignment or assignments to the 170.34 state from the city of St. Paul police department. 170.35 Subd. 3. [SALARY INCREMENT.] The salary increment in any 170.36 applicable year or portion of a year is the difference between 171.1 the salary the eligible individual in subdivision 2 received as 171.2 assistant commissioner and the salary upon which pension 171.3 contributions were made for that year or portion of a year. 171.4 Subd. 4. [BENEFIT COMPUTATIONS.] The retirement benefits, 171.5 or disability benefits, if applicable, under the public 171.6 employees retirement association police and fire plan and the 171.7 public employees retirement association general plan are to be 171.8 computed based on plan law applicable to the eligible individual 171.9 under subdivision 2 given the eligible individual's termination 171.10 of service date or dates, or the disability benefit accrual date 171.11 or dates as applicable, except for inclusion of salary 171.12 increments under subdivision 3 for purposes of determining 171.13 average salary under sections 353.29, subdivision 2, and 171.14 353.651, subdivision 2. 171.15 Subd. 5. [ANNUITY RESERVE COMPARISONS.] The executive 171.16 director of the public employees retirement association is to 171.17 determine the increased actuarial reserves, if any, needed to 171.18 support the annuities from the two applicable public employees 171.19 retirement association retirement funds on the effective date of 171.20 retirement or disability from the applicable plans due to this 171.21 section. 171.22 Subd. 6. [COMPARISON TO APPROPRIATION AMOUNTS.] The total 171.23 amount determined under subdivision 5, if zero or positive, is 171.24 to be subtracted from the total value of any appropriation 171.25 received by the public employees retirement association under 171.26 Laws 2001, chapter 169, section 5, on the date computations 171.27 under subdivision 5 occur assuming 8.5 percent interest 171.28 compounded annually from the date the appropriation is received 171.29 until the computation date under subdivision 5. 171.30 Subd. 7. [DISPOSITION OF EXCESS.] The amount determined 171.31 under subdivision 6, net of the value of any foregone employer 171.32 contributions, including 8.5 percent interest compounded 171.33 annually relating to the salary increments under subdivision 3, 171.34 if any, is to be redeposited within 30 days following the date 171.35 of that determination in the state's general fund. 171.36 Subd. 8. [INTERNAL ALLOCATIONS.] Notwithstanding any law 172.1 to the contrary, the executive director is authorized to place 172.2 amounts received, if any, due to Laws 2001, chapter 169, section 172.3 5, in the public employees retirement association general plan 172.4 fund or the public employees retirement association police and 172.5 fire plan fund, or to allocate amounts between these funds as 172.6 deemed appropriate. Following the determinations required by 172.7 this section, the executive director may again reallocate 172.8 amounts between the two funds to reflect a reasonable allocation 172.9 of the remaining net appropriation amount. 172.10 Subd. 9. [CONTRIBUTION RATIFICATION.] Contributions and 172.11 interest paid to the association relating to the salary 172.12 increments referred to in subdivision 3 are authorized for 172.13 deposit in the public employees retirement association police 172.14 and fire plan fund and are ratified. 172.15 Sec. 2. Minnesota Statutes 2001 Supplement, section 172.16 356.866, is amended to read: 172.17 356.866 [CONVERSION OF LUMP-SUM POSTRETIREMENT AND 172.18 SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.] 172.19 Subdivision 1. [LUMP-SUM POSTRETIREMENT PAYMENT 172.20 CONVERSION.] (a) Unless the person elects otherwise under 172.21 paragraph (b), for benefits paid after December 31, 2001, to 172.22 eligible persons under sections 356.86 and 356.865, the amount 172.23 of the most recent lump-sum benefit payable to an eligible 172.24 recipient under sections 356.86 and 356.865, must be divided by 172.25 12. The result must be added to the monthly annuity or benefit 172.26 otherwise payable to an eligible recipient, must become a 172.27 permanent part of the benefit recipient's pension, and must be 172.28 included in any pension benefit subject to future increases. 172.29 (b) A person may elect to continue to receive the payment 172.30 in a lump sum annually in each December. The election must be 172.31 made before September 1, 2002. For the December 2002 lump-sum 172.32 payment, the amount must be the total of the monthly amounts 172.33 remaining unpaid after the election under this paragraph. 172.34 Subd. 2. [TRANSFER OF REQUIRED RESERVES TO MINNESOTA 172.35 POSTRETIREMENT INVESTMENT FUND.] (a) Public employee retirement 172.36 funds participating in the state board of investment 173.1 postretirement investment fund shall transfer the required 173.2 reserves for the postretirement conversion under subdivision 1 173.3 to the postretirement investment fund by January 31, 2002. 173.4 (b) For a person who elects a lump-sum payment under 173.5 subdivision 1, paragraph (a), any required reserves for the 173.6 converted payment must be transferred back to the applicable 173.7 public employee retirement fund. 173.8 Sec. 3. [EFFECTIVE DATE.] 173.9 Sections 1 and 2 are effective the day following final 173.10 enactment. 173.11 ARTICLE 14 173.12 COORDINATED PROGRAM OF LEGISLATORS RETIREMENT PLAN; 173.13 SOCIAL SECURITY REFERENDUM 173.14 Section 1. [3A.15] [COORDINATED PROGRAM OF LEGISLATORS 173.15 RETIREMENT PLAN.] 173.16 The coordinated program of the legislators retirement plan 173.17 is created. The provisions of sections 3A.01 to 3A.13 apply to 173.18 the coordinated program. 173.19 [EFFECTIVE DATE.] This section is effective the day 173.20 following final enactment. 173.21 Sec. 2. [355.629] [SECOND SOCIAL SECURITY REFERENDUM.] 173.22 Subdivision 1. [ELECTION OF SOCIAL SECURITY COVERAGE.] Any 173.23 member of the legislators retirement plan established under 173.24 chapter 3A who did not elect coverage under an agreement under 173.25 section 218(d) of the Social Security Act as provided for in 173.26 section 355.624 is entitled to elect future social security 173.27 coverage and retroactive coverage for the period consistent with 173.28 applicable federal law, in a second social security referendum. 173.29 Any member who so elects shall become a member of the 173.30 coordinated program of the legislators retirement plan under 173.31 section 3A.15. The governor shall set a date for the referendum 173.32 and shall undertake any duties to amend the state's Social 173.33 Security Act, section 218 agreement, with the secretary of 173.34 health and human services. 173.35 Subd. 2. [PAYMENT OF RETROACTIVE SOCIAL SECURITY 173.36 TAXES.] For any service by a legislator who is in office on the 174.1 date of the agreement or modification of the agreement with the 174.2 secretary of health and human services, the executive director 174.3 of the Minnesota state retirement system shall cause to be paid 174.4 an amount for each legislator, including an amount for 174.5 retroactive coverage, equal to the taxes which would have been 174.6 imposed on the legislator and state of Minnesota by the Federal 174.7 Insurance Contributions Act had the service been covered at the 174.8 time performed. This payment shall be computed from the date of 174.9 retroactive coverage to the date that deductions are first taken 174.10 from the wages of each legislator for social security coverage. 174.11 Before making a payment on behalf of a legislator, the executive 174.12 director must receive from the legislator the funds necessary to 174.13 make the payment. Nothing in this section shall require a 174.14 legislator to elect retroactive social security coverage. 174.15 Subd. 3. [DEDUCTION FROM WAGES.] A legislator who elects 174.16 social security coverage under this section shall have a 174.17 deduction taken from wages in an amount equal to the employer 174.18 contribution required by this section. 174.19 [EFFECTIVE DATE.] This section is effective the day 174.20 following final enactment. 174.21 ARTICLE 15 174.22 MINNEAPOLIS POLICE OPTIONAL ANNUITIES 174.23 Section 1. Minnesota Statutes 2000, section 423B.09, 174.24 subdivision 6, is amended to read: 174.25 Subd. 6. [OPTIONAL ANNUITIES.] A member who is retired or 174.26 disabled on the effective date of Laws 1997, chapter 233, 174.27 article 4, section 6, may elect an optional retirement annuity 174.28 within 60 days of the effective date of Laws 1997, chapter 233, 174.29 article 4, section 6, instead of the normal retirement annuity. 174.30 A member who retires or becomes disabled after the effective 174.31 date of Laws 1997, chapter 233, article 4, section 6, may elect 174.32 an optional retirement annuity prior to the receipt of any 174.33 benefits. The optional retirement annuity may be a 50 percent, 174.34 a 75 percent, or a 100 percent joint and survivor annuity 174.35 without reinstatement in the event of the designated beneficiary 174.36 predeceasing the member or a 50 percent, a 75 percent, or a 100 175.1 percent joint and survivor annuity with reinstatement in the 175.2 event of the designated beneficiary predeceasing the member. 175.3 Optional retirement annuity forms must be actuarially equivalent 175.4 to the service pension and automatic survivor coverage otherwise 175.5 payable to the retiring member and the member's 175.6 beneficiaries. A member may only designate the member's spouse 175.7 as the recipient of a joint and survivor annuity and no benefit 175.8 or annuity may be paid to a person who does not meet the 175.9 definition of a surviving spouse member under section 423B.01, 175.10 subdivision 17. Once selected, the optional annuity is 175.11 irrevocable. 175.12 Sec. 2. [EFFECTIVE DATE.] 175.13 Section 1 is effective the day following final enactment 175.14 and applies to all joint annuity options selected by members of 175.15 the Minneapolis police relief association.