Minnesota Legislature
HF 3127
4th 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; authorizing service credit purchase for 1.7 certain strike periods; providing public employee 1.8 pension coverage for certain foreign citizens; 1.9 clarifying membership eligibility and allowable 1.10 service credit for the public employees retirement 1.11 association; requiring membership for charter school 1.12 teachers in the teachers retirement association; 1.13 providing for the payment of unpaid closed charter 1.14 school retirement contributions from charter school 1.15 lease aid; eliminating contribution rate increases in 1.16 the local government correctional service retirement 1.17 plan; establishing provisions relating to employees of 1.18 the Kanabec hospital if the hospital is privatized; 1.19 extending the expiration date for certain prior 1.20 service credit purchase authorizations; recodifying 1.21 social security coverage provisions; implementing 1.22 recommended changes in salary actuarial assumptions; 1.23 clarifying the restrictions on supplemental and local 1.24 pension plans for plans funded from accumulated sick 1.25 and vacation leave; reorganizing the revising various 1.26 general retirement provisions; instructing the revisor 1.27 of statutes; authorizing the commissioner of 1.28 administration to lease pension fund facilities to 1.29 deferred compensation service providers; authorizing 1.30 certain volunteer firefighters to receive service 1.31 pensions or disability benefits without terminating 1.32 active service; creating the coordinated program of 1.33 the legislators retirement plan; providing a second 1.34 social security referendum for legislators; modifying 1.35 Minneapolis police optional annuity provision; 1.36 modifying voluntary unpaid leave of absence provision 1.37 for state employees; providing for an extension of the 1.38 rule of 90 benefit tier for the teachers retirement 1.39 association and the Duluth teachers retirement fund 1.40 association; changing the effective date for certain 1.41 modifications to the judges retirement plan; amending 1.42 Minnesota Statutes 2000, sections 69.77; 69.80; 1.43 353.01, by adding a subdivision; 353.64, subdivision 1.44 7a; 353A.08, subdivision 6a; 353E.02, subdivision 1, 1.45 by adding a subdivision; 353E.03; 353F.02, subdivision 1.46 4; 354.05, subdivision 38; 354.44, subdivision 6; 2.1 354A.011, subdivisions 15A, 27; 354A.31, subdivisions 2.2 4a, 5, 6, 7; 355.01, subdivisions 1, 3, 6, 8, by 2.3 adding subdivisions; 355.02; 355.03; 355.05; 355.07; 2.4 355.08; 356.001; 356.20, subdivisions 1, 2, 3, 4, 4a; 2.5 356.215, as amended; 356.216; 356.217; 356.219; 2.6 356.22; 356.23; 356.24, subdivisions 1b, 1c, 2; 2.7 356.245; 356.25; 356.30; 356.302; 356.303; 356.32; 2.8 356.40; 356.41; 356.50; 356.55, as amended; 356.551; 2.9 356.611; 356.65, subdivision 2; 356.87; 356.89, 2.10 subdivision 3; 423A.17; 423A.171; 423B.09, subdivision 2.11 6; 424A.02, subdivision 1; 424A.09; Minnesota Statutes 2.12 2001 Supplement, sections 352.01, subdivision 11; 2.13 353.01, subdivisions 2a, 2b, 11b, 16; 353.27, 2.14 subdivisions 4, 11; 354.05, subdivisions 2, 13; 2.15 356.24, subdivision 1; 356.555; 356.62; 356.65, 2.16 subdivision 1; Laws 1997, chapter 202, article 2, 2.17 section 61, as amended; Laws 1999, chapter 222, 2.18 article 16, section 16; Laws 2000, chapter 461, 2.19 article 10, section 3, as amended; Laws 2000, chapter 2.20 461, article 12, section 20; Laws 2000, chapter 461, 2.21 article 18, section 10; Laws 2001, First Special 2.22 Session chapter 10, article 6, section 21; proposing 2.23 coding for new law in Minnesota Statutes, chapters 3A; 2.24 355; 356; proposing coding for new law as Minnesota 2.25 Statutes, chapter 356B; repealing Minnesota Statutes 2.26 2000, sections 69.25; 69.26; 69.27; 69.28; 69.29; 2.27 69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 69.40; 2.28 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 2.29 69.48; 69.49; 69.50; 69.51; 69.52; 69.53; 69.62; 2.30 69.78; 297I.10, subdivision 2; 355.01, subdivisions 2, 2.31 4, 5, 9, 10; 355.11; 355.12; 355.13; 355.14; 355.15; 2.32 355.16; 355.17; 355.201; 355.202; 355.203; 355.204; 2.33 355.205; 355.206; 355.207; 355.208; 355.209; 355.21; 2.34 355.22; 355.23; 355.24; 355.25; 355.26; 355.27; 2.35 355.28; 355.281; 355.282; 355.283; 355.284; 355.285; 2.36 355.286; 355.287; 355.288; 355.29; 355.291; 355.292; 2.37 355.293; 355.294; 355.295; 355.296; 355.297; 355.298; 2.38 355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 2.39 355.41; 355.42; 355.43; 355.44; 355.45; 355.46; 2.40 355.48; 355.49; 355.50; 355.51; 355.52; 355.54; 2.41 355.55; 355.56; 355.57; 355.58; 355.59; 355.60; 2.42 355.61; 355.621; 355.622; 355.623; 355.624; 355.625; 2.43 355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 2.44 355.74; 355.75; 355.76; 355.77; 355.78; 355.79; 2.45 355.80; 355.81; 355.90; 356.19; 356.305; 356.306; 2.46 356.31; 356.325; 356.35; 356.36; 356.37; 356.371, 2.47 subdivisions 2, 3; 356.372; 356.38; 356.39; 356.45; 2.48 356.451; 356.452; 356.453; 356.454; 356.455; 356.615; 2.49 356.71; 356.80; 356.81; 356.86; 356.865; 356.88; 2.50 356.89; 423.37; 423.371; 423.372; 423.373; 423.374; 2.51 423.375; 423.377; 423.378; 423.379; 423.38; 423.381; 2.52 423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 2.53 423.388; 423.389; 423.39; 423.391; 423.392; 423.801; 2.54 423.802; 423.803; 423.804; 423.805; 423.806; 423.808; 2.55 423.809; 423.810; 423.812; 423.813; 423.814; 423.90; 2.56 423A.03; 424.01; 424.02; 424.03; 424.04; 424.05; 2.57 424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 2.58 424.17; 424.18; 424.19; 424.20; 424.21; 424.22; 2.59 424.23; 424.24; 424.25; 424.27; 424.28; 424.29; 2.60 Minnesota Statutes 2001 Supplement, sections 353.01, 2.61 subdivision 39; 356.371, subdivision 1; 356.866; 2.62 Special Session Laws 1889, chapter 425; Special 2.63 Session Laws 1891, chapter 11; Laws 1897, chapters 2.64 389; 390; Laws 1915, chapter 68; Laws 1917, chapter 2.65 196; Laws 1919, chapters 68, 515; Laws 1921, chapter 2.66 118; Laws 1923, chapter 54; Laws 1925, chapter 197; 2.67 Laws 1931, chapter 48; Laws 1933, chapter 122; Laws 2.68 1935, chapters 92; 192; 208; 259; Laws 1937, chapters 2.69 132; 197; 253; Laws 1939, chapters 124; 304; Laws 2.70 1941, chapters 74; 182; 196; Laws 1943, chapters 170; 2.71 267; 397; 413; 432; Laws 1945, chapters 74; 182; 277; 3.1 300; Laws 1947, chapters 40; 43; 101; 274; 329; Laws 3.2 1949, chapters 87; 144; 153; 154; 164; 191; 235; 281; 3.3 378; Laws 1951, chapters 43; 45; 48; 144; 233; 243; 3.4 420; 435; 499; Laws 1953, chapters 37; 44; 91; 235; 3.5 253; 348; 391; 401; 406; Laws 1955, chapters 42; 49; 3.6 75; 151; 187; 188; 293; 294; 348; 375; 827; Laws 1957, 3.7 chapters 10; 16; 36; 127; 144; 164; 256; 257; 455; 3.8 630; 793; Laws 1959, chapters 108; 131; 191; 207; 208; 3.9 211; 437; Laws 1961, chapters 186; 290; 295; 300; 343; 3.10 376; 399; 434; 435, section 2; 443; 620; 631; 747; 3.11 Extra Session Laws 1961, chapters 28; 80; Laws 1963, 3.12 chapters 36; 208; 221; 271; 443; 453; 454; 464; 619; 3.13 636; 643; 670; 715; Laws 1965, chapters 174; 179; 190; 3.14 418; 457; 458; 465; 498; 536; 540; 594; 604; 605; 636; 3.15 790; Laws 1967, chapters 644; 678; 702; 708; 730; 732; 3.16 736; 751; 775; 783; 798; 807; 816; 848; Laws 1969, 3.17 chapters 138; 442; 443; 552; 576; 594; 614; 641; 668; 3.18 669; 670; 671; 672; 686; 694; 716; 849; 1087; Laws 3.19 1971, chapters 51; 178; 407; 549; 614; 807; 809; 810; 3.20 Extra Session Laws 1971, chapter 41; Laws 1973, 3.21 chapters 286; 287; 346; 359; 432; 433; 587; Laws 1974, 3.22 chapters 251; 382; Laws 1975, chapters 120; 121; 127; 3.23 254, sections 1, 2, 3, 4, 5, 6; 368, section 54; 389; 3.24 408; 423; 424; 425; Laws 1976, chapters 36; 78; 85; 3.25 99; 247; Laws 1977, chapters 83; 164, sections 1, 3; 3.26 169; 270; 275; 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 3.27 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 3.28 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 3.29 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 3.30 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60; 429, 3.31 section 62; Laws 1978, chapters 563, sections 12, 13, 3.32 14, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 3.33 28, 29, 30; 579; 648; 690, sections 9, 10; 793, 3.34 section 96; Laws 1979, chapters 131, section 3; 216, 3.35 sections 27, 28, 29, 30, 31, 34, 35, 36, 37, 38, 39, 3.36 40, 41, 42, 43, 44; Laws 1980, chapters 341, sections 3.37 2, 3, 4, 5, 6, 9, 10; 600, sections 11, 12, 13, 14, 3.38 15, 16, 17, 18, 22; 607, article XV, section 23; Laws 3.39 1981, chapter 68, sections 31, 32, 33, 34, 35, 36, 37, 3.40 41, 42, 43; Laws 1981, chapter 224, sections 236, 237, 3.41 239, 240, 243, 244, 247, 248, 252, 253, 258, 259, 260, 3.42 261, 263, 264, 265, 266, 267, 268, 270, 272, 273; Laws 3.43 1981, chapter 297, sections 1, 2; Laws 1982, chapters 3.44 402; 443; 574, sections 3, 4, 5, 6, 8; 578, article 3.45 II, section 1, subdivision 8, article III, section 18; 3.46 610, sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 3.47 18, 19, 20; Laws 1983, chapters 47; 74; 84, section 1; 3.48 291, sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17; 3.49 Laws 1984, chapter 574, sections 18, 19, 20, 22, 23, 3.50 24, 25, 26, 33; Laws 1985, chapters 259, sections 5, 3.51 6; 261, sections 14, 15, 16, 18, 20, 32, 33, 34, 35, 3.52 36; Laws 1985, First Special Session chapter 16, 3.53 article 2, section 6; Laws 1986, chapters 359, 3.54 sections 22, 23, 24, 25; 458, sections 23, 34; Laws 3.55 1987, chapter 372, article 2, sections 7, 8, 9, 10, 3.56 12; Laws 1988, chapter 709, articles 8, section 5; 9, 3.57 section 5; Laws 1989, chapter 319, article 11, 3.58 sections 2, 3, 4, 12; Laws 1990, chapter 589, article 3.59 1, section 7; Laws 1991, chapters 96; 269, article 2, 3.60 sections 12, 13; Laws 1992, chapters 392, section 1; 3.61 393, section 1; 422; 431, section 1; 448; 455; 563, 3.62 sections 3, 4, 5; 586, section 1; Laws 1993, chapters 3.63 72; 110; 112, section 2; 126; 202, article 1; Laws 3.64 1994, chapters 409; 410; 474; 490; 541, section 3; 3.65 Laws 1995, chapter 262, article 10, section 4; Laws 3.66 1996, chapter 448, article 2, section 1; Laws 1997, 3.67 chapter 233, article 1, section 58; Laws 1997, chapter 3.68 241, article 2, sections 2, 3, 4, 5, 6, 9, 10, 11, 13, 3.69 14, 15, 20; Laws 1999, chapter 222, article 3, section 3.70 6; Laws 2000, chapter 461, article 10, section 2. 4.1 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 4.2 ARTICLE 1 4.3 LOCAL POLICE AND PAID 4.4 FIRE RELIEF ASSOCIATION 4.5 GOVERNING LAW CLARIFICATION 4.6 Section 1. Minnesota Statutes 2000, section 69.77, is 4.7 amended to read: 4.8 69.77 [POLICE AND FIREFIGHTERS' RELIEF ASSOCIATION 4.9 GUIDELINES ACT.] 4.10 Subdivision 1. [AUTHORIZEDCONDITIONED EMPLOYER SUPPORT 4.11 FOR A RELIEF ASSOCIATION.] (a) Notwithstanding any law to the 4.12 contrary, only if the municipality and the relief association 4.13 comply with the provisions of this section, a municipality may 4.14 contribute public funds, including any applicable police or fire 4.15 state aid, or levy property taxes for the support of a police or 4.16 firefighters' relief association, enumerated in subdivision 1a, 4.17 however organized, which provides retirement coverage or pays a 4.18 service pension to a retired police officer or firefighter or a 4.19 retirement benefit to a surviving dependent of either an active 4.20 or retired police officer or firefighter, for the operation and 4.21 maintenance of the relief associationonly if the municipality4.22and the relief association comply with the provisions of this4.23section. 4.24 (b) The commissioner shall not include in the apportionment 4.25 of police or fire state aid to the county auditorpursuant to4.26 under section 69.021, subdivision 6, any municipality in which 4.27 there exists a local police or salaried firefighters' relief 4.28 association as enumerated in subdivision 1a which does not 4.29 comply with the provisions of this section or the provisions of 4.30 any applicable special law relating to the funding or financing 4.31 of the association and that municipalityshallmay not qualify 4.32 initially to receive, or be entitled subsequently to retain, 4.33 state aidpursuant tounder sections 69.011 to 69.051 until the 4.34 reason for the disqualification is remedied, whereupon the 4.35 municipality, if otherwise qualified,shall beis entitled to 4.36 again receive state aid for the year occurring immediately 5.1 subsequent to the year in which the disqualification is remedied. 5.2 (c) The state auditor and the commissioner shall determine 5.3 if a municipality with a local police or salaried firefighters' 5.4 relief association fails to comply with the provisions of this 5.5 section or the funding or financing provisions of any applicable 5.6 special law. 5.7 Subd. 1a. [COVERED RETIREMENT PLANS.] The provisions of 5.8 this sectionshallapply to the following local retirementfunds5.9 plans: 5.10 (1)any police pension fund or relief association which is5.11established pursuant to chapter 423the Bloomington firefighters 5.12 relief association; 5.13 (2)any salaried firefighters' pension fund or relief5.14association which is established pursuant to chapter 424the 5.15 Fairmont police relief association; 5.16 (3)any pension fund or relief association which is5.17established pursuant to this chapter which has five or more5.18members who receive compensation for services rendered in the5.19employment covered by the pension fund or relief association and5.20which provides for retirement coverage or a service pension5.21based on the compensation paid to members for that servicethe 5.22 Minneapolis firefighters relief association; 5.23 (4)any pension fund or relief association which is5.24established and operates in whole or in part pursuant to special5.25legislation and which provides for retirement coverage or a5.26service pension based on the compensation paid to members for5.27service as police officers or firefighters or which provides for5.28retirement coverage or a service pension to volunteer5.29firefighters based on the compensation paid to or the service5.30pension provided by a pension fund or relief association located5.31in the same municipality for police officers employed by the5.32municipality but not covered by clause (1), (2) or (3)the 5.33 Minneapolis police relief association; and 5.34 (5)any governmental subdivision retirement fund5.35established pursuant to any law providing for retirement5.36coverage to police officers or salaried firefighters or a6.1retirement benefit to their dependents and not otherwise6.2described in this subdivisionthe Virginia fire department 6.3 relief association. 6.4 Subd. 2. [INAPPLICABLE PENALTY.] The penalty provided for 6.5 in subdivision 1shalldoes not apply to a relief association 6.6 enumerated in subdivision 1a if the requirements of subdivisions 6.72a3 to2h10 are met. 6.8 Subd.2a3. [MINIMUM MEMBER CONTRIBUTION.] Each active 6.9 member of the relief associationshallmust pay into the special 6.10 fund of the association during a year of covered service, a 6.11 contribution for retirement coverage, including survivorship 6.12 benefits, of not less than eight percent of the maximum rate of 6.13 salary upon which retirement coverage is credited and service 6.14 pension and retirement benefit amounts are determined. The 6.15 member contributionsshallmust be made by payroll deduction 6.16 from the salary of the member by the municipality, and 6.17shallmust be transmitted by the municipality to the relief 6.18 association as soon as practical. The relief association shall 6.19 deposit the member contribution to the credit of the special 6.20 fund of the relief association. The member contribution 6.21 requirement specified in this subdivisionshalldoes not apply 6.22 to any members who are volunteer firefighters. 6.23 Subd.2b4. [RELIEF ASSOCIATION FINANCIAL REQUIREMENTS; 6.24 MINIMUM MUNICIPAL OBLIGATION.] (a) The officers of the relief 6.25 association shall determine the financial requirements of the 6.26 relief association and minimum obligation of the municipality 6.27 for the following calendar year in accordance with the 6.28 requirements of this subdivision. The financial requirements of 6.29 the relief association and the minimum obligation of the 6.30 municipalityshallmust be determined on or before the 6.31 submission date established by the municipalitypursuant to6.32 under subdivision2c5. 6.33 (b) The financial requirements of the relief association 6.34 for the following calendar yearshallmust be based on the most 6.35 recent actuarial valuation or survey of the special fund of the 6.36 association if more than one fund is maintained by the 7.1 association, or of the association, if only one fund is 7.2 maintained, prepared in accordance with sections 356.215, 7.3 subdivisions 4 to 4k and 356.216, as requiredpursuant tounder 7.4 subdivision2h10. If an actuarial estimate is prepared by the 7.5 actuary of the relief association as part of obtaining a 7.6 modification of the benefit plan of the relief association and 7.7 the modification is implemented, the actuarial estimateshall7.8 must be used in calculating the subsequent financial 7.9 requirements of the relief association. 7.10 (c) If the relief association has an unfunded actuarial 7.11 accrued liability as reported in the most recent actuarial 7.12 valuation or survey, the total of the amounts 7.13 calculatedpursuant tounder clauses(a), (b), and (c)7.14shall(1), (2), and (3) constitute the financial requirements of 7.15 the relief association for the following year. If the relief 7.16 association does not have an unfunded actuarial accrued 7.17 liability as reported in the most recent actuarial valuation or 7.18 survey, the amount calculatedpursuant tounder clauses(a) and7.19(b) shall(1) and (2) constitute the financial requirements of 7.20 the relief association for the following year. The financial 7.21 requirement elements are: 7.22(a)(1) the normal level cost requirement for the following 7.23 year, expressed as a dollar amount, whichshallmust be 7.24 determined by applying the normal level cost of the relief 7.25 association as reported in the actuarial valuation or survey and 7.26 expressed as a percentage of covered payroll to the estimated 7.27 covered payroll of the active membership of the relief 7.28 association, including any projectedincreasechange in the 7.29 active membership, for the following year.; 7.30(b)(2) for the Bloomington fire department relief 7.31 association, the Fairmont police relief association, and the 7.32 Virginia fire department relief association, to the dollar 7.33 amount of normal costthusdeterminedshallunder clause (1) 7.34 must be added an amount equal to the dollar amount of the 7.35 administrative expenses of the special fund of the association 7.36 if more than one fund is maintained by the association, or of 8.1 the association if only one fund is maintained, for the most 8.2 recent year, multiplied by the factor of 1.035.For a relief8.3association in a municipality,The administrative expenses are 8.4 those authorized under section 69.80. No amount of 8.5 administrative expenses under this clauseshallare to be 8.6 included in the financial requirements ofathe Minneapolis 8.7 firefighters relief associationin a city of the first class8.8with a population of more than 300,000.or the Minneapolis 8.9 police relief association; and 8.10(c)(3) to the dollar amount of normal cost and expenses 8.11 determined under clauses(a) and (b) shall(1) and (2) must be 8.12 added an amount equal to the level annual dollar amount which is 8.13 sufficient to amortize the unfunded actuarial accrued liability 8.14 by December 31, 2010, as determined from the actuarial valuation 8.15 or survey of the fund, using an interest assumption set at the 8.16 applicable rate specified in section 356.215, subdivision 4d. 8.17 The amortization date specified in this clauseshall apply8.18 applies to all local police or salaried firefighters' relief 8.19 associations andshall supersedethat date supersedes any 8.20 amortization date specified in any applicable special law. 8.21 (d) The minimum obligation of the municipalityshall beis 8.22 an amount equal to the financial requirements of the relief 8.23 association reduced by the estimated amount of member 8.24 contributions from covered salary anticipated for the following 8.25 calendar year and the estimated amounts anticipated for the 8.26 following calendar year from the applicable state aid program 8.27 establishedpursuant tounder sections 69.011 to 69.051 8.28 receivable by the relief association after any allocation 8.29 madepursuant tounder section 69.031, subdivision 5,clause8.30(2), subclause (c)paragraph (b), clause (2), or 423A.01, 8.31 subdivision 2, clause (6), from the local police and salaried 8.32 firefighters' relief association amortization aid program 8.33 establishedpursuant tounder section 423A.02and, subdivision 8.34 1, from the supplementary amortization state-aid program 8.35 established underLaws 1984, chapter 564, section 48, and Laws8.361985, chapter 261, section 17section 423A.02, subdivision 1a, 9.1 and from the additional amortization state aid under section 9.2 423A.02, subdivision 1b. 9.3 Subd.2c5. [DETERMINATION SUBMISSION.] The officers of 9.4 the relief association shall submit the determination of the 9.5 financial requirements of the relief association and of the 9.6 minimum obligation of the municipality to the governing body on 9.7 or before the date established by the municipality, whichshall9.8 may not be earlier than August 1 andshallmay not be later than 9.9 September 1 of each year. The governing body of the 9.10 municipalityshallmust ascertain whether or not the 9.11 determinations were prepared in accordance with law. 9.12 Subd.2d6. [MUNICIPAL PAYMENT.] (a) The municipality 9.13 shall provide for and shall pay, each year, at least the amount 9.14 of the minimum obligation of the municipality to the relief 9.15 association. 9.16 (b) If there is any deficiency in the municipal payment to 9.17 meet the minimum obligation of the municipality as of the end of 9.18 any calendar year, the amount of the deficiencyshallmust be 9.19 added to the minimum obligation of the municipality for the 9.20 following year calculatedpursuant tounder subdivision2b4 and 9.21shallmust include interest at the compound rate of six percent 9.22 per annumcompoundedfrom the date that the municipality was 9.23 required to make paymentpursuant tounder this subdivision 9.24 until the date that the municipality actually makes the required 9.25 payment. 9.26 Subd.2e7. [BUDGET INCLUSION.] (a) The municipality shall 9.27 provide in the annual municipal budget for at least the minimum 9.28 obligation of the municipality calculatedpursuant tounder 9.29 subdivision2b4. 9.30 (b) The municipality may levy taxes for the payment of the 9.31 minimum obligation of the municipality without any limitation as 9.32 to rate or amount and irrespective of limitations imposed by 9.33 other provisions of law upon the rate or amount of taxation when 9.34 the balance of the special fund or any fund of the relief 9.35 association has attained a specified minimum asset level. In 9.36 addition, any taxes leviedpursuant tounder this sectionshall10.1 may not cause the amount or rate of other taxes levied in that 10.2 year or to be levied in a subsequent year by the municipality 10.3 which are subject to a limitation as to rate or amount to be 10.4 reduced. 10.5 (c) If the municipality does not include the full amount of 10.6 the minimum obligation of the municipality in the levy that the 10.7 municipality certified to the county auditor in any year, the 10.8 officers of the relief association shall certify the amount of 10.9 any deficiency to the county auditor. Upon verifying the 10.10 existence of any deficiency in the levy certified by the 10.11 municipality, the county auditor shall spread a levy over the 10.12 taxable property of the municipality in the amount of the 10.13 deficiency certified to by the officers of the relief 10.14 association. 10.15 Subd.2f8. [ACCELERATED AMORTIZATION.] Any sums of money 10.16 paid by the municipality to the relief association in excess of 10.17 the minimum obligation of the municipality in any yearshall10.18 must be used to amortize any unfunded actuarial accrued 10.19 liabilities of the relief association. 10.20 Subd.2g9. [LOCAL POLICE AND PAID FIRE RELIEF ASSOCIATION 10.21 INVESTMENT AUTHORITY.] (a) The funds of the association must be 10.22 invested in securities that are authorized investments under 10.23 section 356A.06, subdivision 6 or 7, whichever 10.24 applies.Notwithstanding the foregoing,Up to 75 percent of the 10.25 market value of the assets of the fund may be invested in 10.26 open-end investment companies registered under the federal 10.27 Investment Company Act of 1940, if the portfolio investments of 10.28 the investment companies comply with the type of securities 10.29 authorized for investment under section 356A.06, subdivision 7. 10.30 Securities held by the association before June 2, 1989, that do 10.31 not meet the requirements of this subdivision may be retained 10.32 after that date if they were proper investments for the 10.33 association on that date. 10.34 (b) The governing board of the association may select and 10.35 appoint investment agencies to act for and in its behalf or may 10.36 certify special fund assets for investment by the state board of 11.1 investment under section 11A.17. The governing board of the 11.2 association may certify general fund assets of the relief 11.3 association for investment by the state board of investment in 11.4 fixed income pools or in a separately managed account at the 11.5 discretion of the state board of investment as provided in 11.6 section 11A.14. The governing board of the association may 11.7 select and appoint a qualified private firm to measure 11.8 management performance and return on investment, and the firm 11.9 shall use the formula or formulas developed by the state board 11.10 under section 11A.04, clause (11). 11.11 Subd.2h10. [ACTUARIAL VALUATION REQUIRED.] The 11.12 association shall obtain an actuarial valuation showing the 11.13 condition of the special fund of the relief associationpursuant11.14tounder sections 356.215 and 356.216 and any applicable 11.15 standards for actuarial work established by the legislative 11.16 commission on pensions and retirement. The actuarial valuation 11.17 must be made as of December 31 of every year. A copy of the 11.18 actuarial valuationshallmust be filed with the director of the 11.19 legislative reference library, the governing body of the 11.20 municipality in which the association is organized, the 11.21 executive director of the legislative commission on pensions and 11.22 retirement, and the state auditor, not later than July 1 of the 11.23 following year. 11.24 Subd.2i11. [MUNICIPAL APPROVAL OF BENEFIT CHANGES 11.25 REQUIRED.] Any amendment to the bylaws or articles of 11.26 incorporation of a relief association which increases or 11.27 otherwise affects the retirement coverage provided by or the 11.28 service pensions or retirement benefits payable from any police 11.29 or firefighters' relief association enumerated in subdivision 1a 11.30shallis notbeeffective until it is ratified by the 11.31 municipality in which the relief association is located. The 11.32 officers of the relief association shall not seek municipal 11.33 ratificationprior tobefore obtaining either an updated 11.34 actuarial valuation including the proposed amendment or an 11.35 estimate of the expected actuarial impact of the proposed 11.36 amendment prepared by the actuary of the relief association and 12.1 submitting that actuarial valuation or estimate to the clerk of 12.2 the municipality. 12.3 Subd. 12. [APPLICATION OF OTHER LAWS TO CONTRIBUTION 12.4 RATE.] In the absence of any specific provision to the contrary, 12.5 no general or special law may be construed as reducing the 12.6 amount or rate of contribution to a police or firefighters 12.7 relief association to which subdivision 1a applies, by a 12.8 municipality or member of the association, which is required as 12.9 a condition for the use of public funds or the levy of taxes for 12.10 the support of the association. Each association, the 12.11 municipality in which it is organized, and the officers of each, 12.12 are authorized to do all things required by this section as a 12.13 condition for the use of public funds or the levy of taxes for 12.14 the support of the association. 12.15 Subd.313. [CITATION.] This section may be cited as the 12.16 "Police and Firefighters' Relief Associations Guidelines Act of 12.17 1969." 12.18 Sec. 2. Minnesota Statutes 2000, section 69.80, is amended 12.19 to read: 12.20 69.80 [AUTHORIZED ADMINISTRATIVE EXPENSES.] 12.21 (a) Notwithstanding any provision of law to the contrary, 12.22 the payment of the following necessary, reasonable and direct 12.23 expenses of maintaining, protecting and administering the 12.24 special fund, when provided for in the bylaws of the association 12.25 and approved by the board of trustees,shall constitute12.26 constitutes authorized administrative expenses of a police, 12.27 salaried firefighters', or volunteer firefighters' relief 12.28 association organized under any law of this state: 12.29(a)(1) office expense, including, but not limited to, 12.30 rent, utilities, equipment, supplies, postage, periodical 12.31 subscriptions, furniture, fixtures, and salaries of 12.32 administrative personnel; 12.33(b)(2) salaries of the president, secretary, and treasurer 12.34 of the association, or their designees, and any other official 12.35 of the relief association to whom a salary is payable under 12.36 bylaws or articles of incorporation in effect on January 1, 13.1 1986, and their itemized expenses incurred as a result of 13.2 fulfilling their responsibilities as administrators of the 13.3 special fund; 13.4(c)(3) tuition, registration fees, organizational dues, 13.5 and other authorized expenses of the officers or members of the 13.6 board of trustees incurred in attending educational conferences, 13.7 seminars, or classes relating to the administration of the 13.8 relief association; 13.9(d)(4) audit, actuarial, medical, legal, and investment 13.10 and performance evaluation expenses; 13.11(e)(5) reimbursement to the officers and members of the 13.12 board of trustees, or their designees, for reasonable and 13.13 necessary expenses actually paid and incurred in the performance 13.14 of their duties as officers or members of the board; and 13.15(f)(6) premiums on fiduciary liability insurance and 13.16 official bonds for the officers, members of the board of 13.17 trustees, and employees of the relief association. 13.18 (b) Any other expenses of the relief associationshallmust 13.19 be paid from the general fund of the association, if one 13.20 exists. If a relief association has only one fund, that 13.21 fundshall be deemed to beis the special fund for purposes of 13.22 this section. If a relief association has a special fund and a 13.23 general fund, and any expense of the relief association that is 13.24 directly related to the purposes for which both funds were 13.25 established, the payment of that expenseshallmust be 13.26 apportioned between the two funds on the basis of the benefits 13.27 derived by each fund. 13.28 Sec. 3. Minnesota Statutes 2000, section 353A.08, 13.29 subdivision 6a, is amended to read: 13.30 Subd. 6a. [MILITARY SERVICE CONTRIBUTION AND REFUND.] A 13.31 person who was an active member of a local police or 13.32 firefighters relief association upon its consolidation with the 13.33 public employees retirement association, and who was otherwise 13.34 eligible for automatic service credit for military service under 13.35sectionsMinnesota Statutes 2000, section 423.57and 424.23, and 13.36 who has not elected the type of benefit coverage provided by the 14.1 public employees police and fire fund at the time of 14.2 consolidation, must make employee contributions under section 14.3 353.01, subdivision 16, paragraph (h), to receive allowable 14.4 service credit from the association for a military service leave 14.5 after the effective date of the consolidation. A person who 14.6 later elects, under subdivision 3, to retain benefit coverage 14.7 under the bylaws of the local relief association is eligible for 14.8 a refund from the association at the time of retirement. The 14.9 association shall refund the employee contributions plus 14.10 interest at the rate of six percent, compounded quarterly, from 14.11 the date on which contributions were made until the first day of 14.12 the month in which the refund is paid. The employer shall 14.13 receive a refund of the employer contributions. The association 14.14 shall not pay a refund to a person who later elects, under 14.15 subdivision 3, the type of benefit coverage provided by the 14.16 public employees police and fire fund or to the person's 14.17 employer. 14.18 Sec. 4. Minnesota Statutes 2000, section 423A.17, is 14.19 amended to read: 14.20 423A.17 [CONTINUATION OF SURVIVING SPOUSE BENEFITS UPON 14.21 REMARRIAGE.] 14.22 (a) Notwithstanding a provision ofsection 69.48; 423.387,14.23subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1; or14.24424.24, subdivision 1, or otherlaw, article of incorporation, 14.25 or bylaw governing a local police or salaried firefighters 14.26 relief association to the contrary, the governing body of a 14.27 municipality may mandate the applicable local police or salaried 14.28 firefighters relief association to provide that a surviving 14.29 spouse benefit is payable for the life of the surviving spouse 14.30 and remains payable even in the event of the remarriage of the 14.31 surviving spouse. 14.32 (b) If the surviving spouse benefit change described in 14.33 paragraph (a) is made, the change applies to a surviving spouse 14.34 benefit payable on the effective date of the change and to the 14.35 potential surviving spouses of all active, deferred, or retired 14.36 members of the relief association who have that status on the 15.1 effective date of the change. 15.2 (c) In addition, if the surviving spouse benefit change 15.3 described in paragraph (a) is made a person who formerly was 15.4 receiving surviving spouse benefits from the relief association 15.5 and who had those benefits discontinued by virtue of the 15.6 remarriage is entitled, upon application, to a resumption of the 15.7 surviving spouse benefit, beginning with the last day of the 15.8 month following receipt of the application by the secretary of 15.9 the relief association. Nothing in this section authorizes the 15.10 payment of a benefit amount to an estate. 15.11 (d) The change must be made by a municipal resolution 15.12 adopted by a majority vote of the municipality. The resolution 15.13 must be filed by the secretary of the relief association with 15.14 the executive director of the legislative commission on pensions 15.15 and retirement, the state auditor, and the secretary of state. 15.16 Sec. 5. Minnesota Statutes 2000, section 423A.171, is 15.17 amended to read: 15.18 423A.171 [BYLAW AMENDMENTS.] 15.19 (a) Notwithstanding a provision ofsection 69.48; 423.387,15.20subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1;15.21423B.10; or 424.24, subdivision 1, or otherlaw governing a 15.22 local police or salaried firefighters' relief association to the 15.23 contrary, the board of trustees of a local relief association 15.24 governed by section 69.77 or its successor board under chapter 15.25 353A or 353B, with municipal approval as provided in section 15.26 69.77, subdivision2i11, may amend the bylaws of the relief 15.27 association to provide that a surviving spouse benefit is 15.28 payable to a surviving spouse who married a deferred or retired 15.29 member after the member's retirement, provided the marriage 15.30 occurred at least five years before the death of the member. 15.31 (b) If the surviving spouse benefit change described in 15.32 paragraph (a) is made, the change applies to a surviving spouse 15.33 benefit payable on the effective date of the change and to the 15.34 potential surviving spouses of all deferred or retired members 15.35 of the relief association who have that status on the effective 15.36 date of the change. 16.1 (c) The bylaw amendment is not effective until a certified 16.2 copy of the amendment and the municipal approval has been filed 16.3 by the municipal clerk with the executive director of the 16.4 legislative commission on pensions and retirement, the state 16.5 auditor, and the secretary of state. 16.6 (d) Notwithstanding the provisions of section 353B.11, a 16.7 surviving spouse benefit change made under this section for a 16.8 relief association that has consolidated with the public 16.9 employees retirement association is effective upon approval by 16.10 the public employees retirement association and the municipality 16.11pursuant tounder paragraph (c). 16.12 Sec. 6. Minnesota Statutes 2000, section 424A.09, is 16.13 amended to read: 16.14 424A.09 [APPLICATION TO CERTAIN RELIEF ASSOCIATIONS.] 16.15 This chaptershall supersedesupersedes any special law 16.16 applicable to any municipal volunteer firefighters' relief 16.17 association or independent nonprofit firefighting corporation 16.18 specifically authorizing the relief association or nonprofit 16.19 firefighting corporation to exceed the service pension 16.20 limitations contained in Minnesota Statutes 1978, sections 69.06 16.21 and 69.691. Any relief association which amended its bylaws to 16.22 provide for a full pro rata service pension amount at the 16.23 specified retirement age with 15 years service credit or 75 16.24 percent of the pro rata service pension amount at the specified 16.25 retirement age with ten years of servicepursuant tounder 16.26 Minnesota Statutes 1978, section 69.06, may continue to provide 16.27 the specified service pension amounts at the applicable years of 16.28 credited service to any member who has credit for at least ten 16.29 or 15 years, whichever is the applicable minimum service period 16.30 specified in the bylaws governing the relief association, on or 16.31 before December 31, 1979notwithstanding section 424A.02. 16.32 Sec. 7. [APPLICATION; BLOOMINGTON FIREFIGHTERS RELIEF 16.33 ASSOCIATION.] 16.34 To the extent that Minnesota Statutes 2000, chapter 424, 16.35 applied to the Bloomington firefighters relief association on 16.36 the day before the effective date of section 5, Minnesota 17.1 Statutes 2000, chapter 424, continues to apply to the 17.2 Bloomington firefighters relief association after that date. 17.3 Sec. 8. [REVISOR INSTRUCTIONS.] 17.4 (a) In the next and subsequent editions of Minnesota 17.5 Statutes, the revisor of statutes shall not print Minnesota 17.6 Statutes, sections 423.41 to 423.62, but shall denote those 17.7 sections as "[LOCAL, CITY OF FAIRMONT, POLICE PENSIONS.]." 17.8 (b) In the next and subsequent editions of Minnesota 17.9 Statutes, the revisor of statutes shall, in each section 17.10 indicated in column A, replace the cross-reference specified in 17.11 column B with the cross-reference set forth in column C: 17.12 Column A Column B Column C 17.13 69.021, subd. 10 69.77, subd. 2a 69.77, subd. 3 17.14 69.021, subd. 10 69.77, subd. 2b 69.77, subd. 4 17.15 69.021, subd. 10 69.77, subd. 2c 69.77, subd. 5 17.16 299A.465, subd. 5 424.03 Minnesota Statutes, 17.17 2000, 424.03 17.18 353A.07, subd. 6 69.77, subd. 2a 69.77, subd. 3 17.19 353A.09, subd. 4 69.77, subd. 2a 69.77, subd. 3 17.20 356.216 69.77, subd. 2b 69.77, subd. 4 17.21 356.219, subd. 2 69.77, subd. 2g 69.77, subd. 9 17.22 423.01, subd. 2 69.77, subd. 2b 69.77, subd. 4 17.23 423A.18 69.77, subd. 2i 69.77, subd. 11 17.24 423A.19, subd. 4 69.77, subd. 2i 69.77, subd. 11 17.25 423B.06, subd. 1 69.77, subd. 2a 69.77, subd. 3 17.26 423B.06, subd. 1 69.77, subd. 2b 69.77, subd. 4 17.27 423B.06, subd. 1 69.77, subd. 2c 69.77, subd. 5 17.28 423B.06, subd. 1 69.77, subd. 2d 69.77, subd. 6 17.29 423B.06, subd. 1 69.77, subd. 2e 69.77, subd. 7 17.30 423B.06, subd. 1 69.77, subd. 2f 69.77, subd. 8 17.31 423B.21, subd. 1 69.77, subd. 2b 69.77, subd. 4 17.32 Sec. 9. [REPEALER; OBSOLETE POLICE AND FIRE PENSION LAWS.] 17.33 Subdivision 1. [FIRST CLASS CITY FIRE; 17.34 REPEALER.] Minnesota Statutes 2000, sections 69.25; 69.26; 17.35 69.27; 69.28; 69.29; 69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 17.36 69.40; 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 69.48; 18.1 69.49; 69.50; 69.51; 69.52; 69.53; and 69.62, are repealed. 18.2 Subd. 2. [THIRD CLASS CITY POLICE; REPEALER.] Minnesota 18.3 Statutes 2000, sections 423.37; 423.371; 423.372; 423.373; 18.4 423.374; 423.375; 423.377; 423.378; 423.379; 423.38; 423.381; 18.5 423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 423.388; 18.6 423.389; 423.39; 423.391; and 423.392, are repealed. 18.7 Subd. 3. [SECOND CLASS CITY POLICE; REPEALER.] Minnesota 18.8 Statutes 2000, sections 423.801; 423.802; 423.803; 423.804; 18.9 423.805; 423.806; 423.808; 423.809; 423.810; 423.812; 423.813; 18.10 423.814; and 423.90, are repealed. 18.11 Subd. 4. [SECOND CLASS CITY FIRE; REPEALER.] Minnesota 18.12 Statutes 2000, sections 424.01; 424.02; 424.03; 424.04; 424.05; 18.13 424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 424.17; 424.18; 18.14 424.19; 424.20; 424.21; 424.22; 424.23; 424.24; 424.25; 424.27; 18.15 424.28; and 424.29, are repealed. 18.16 Subd. 5. [ALBERT LEA FIRE; REPEALER.] Laws 1943, chapters 18.17 170 and 397; Laws 1947, chapter 274; Laws 1949, chapters 87 and 18.18 281; Laws 1951, chapters 233, 420, and 435; Laws 1953, chapters 18.19 44 and 406; Laws 1957, chapter 127; Laws 1959, chapter 207; Laws 18.20 1963, chapter 643; Laws 1984, chapter 574, section 23; Laws 18.21 1985, chapter 261, section 36; and Laws 1993, chapter 72, are 18.22 repealed. 18.23 Subd. 6. [ALBERT LEA POLICE; REPEALER.] Laws 1965, chapter 18.24 174; Laws 1976, chapter 247; and Laws 1985, chapter 261, section 18.25 36, are repealed. 18.26 Subd. 7. [ANOKA POLICE; REPEALER.] Laws 1965, chapter 174; 18.27 Laws 1973, chapter 587; Laws 1978, chapter 563, section 28; and 18.28 Laws 1981, chapter 224, sections 263 and 264, are repealed. 18.29 Subd. 8. [AUSTIN FIRE; REPEALER.] Laws 1943, chapter 170; 18.30 Laws 1949, chapter 87; Laws 1951, chapters 45 and 435; Laws 18.31 1957, chapter 164; Laws 1963, chapter 36; Laws 1965, chapter 18.32 418; Laws 1976, chapter 36; Laws 1978, chapter 579; Laws 1980, 18.33 chapter 341, sections 9 and 10; Laws 1981, chapter 224, sections 18.34 268 and 270; Laws 1992, chapter 455; and Laws 1994, chapter 490, 18.35 are repealed. 18.36 Subd. 9. [AUSTIN POLICE; REPEALER.] Laws 1943, chapter 19.1 432; Laws 1976, chapter 36; Laws 1980, chapter 341, sections 9 19.2 and 10; and Laws 1981, chapter 224, sections 268 and 270, are 19.3 repealed. 19.4 Subd. 10. [BLOOMINGTON POLICE; REPEALER.] Laws 1965, 19.5 chapter 498; Laws 1975, chapter 121; Laws 1978, chapter 563, 19.6 section 17; Laws 1980, chapter 341, section 6; Laws 1981, 19.7 chapter 224, section 240; and Laws 1993, chapter 202, article 1, 19.8 are repealed. 19.9 Subd. 11. [BRAINERD POLICE; REPEALER.] Laws 1959, chapter 19.10 437, is repealed. 19.11 Subd. 12. [BROOKLYN CENTER POLICE; REPEALER.] Laws 1967, 19.12 chapter 736; and Laws 1978, chapter 563, section 18, are 19.13 repealed. 19.14 Subd. 13. [BUHL POLICE; REPEALER.] Laws 1957, chapter 630; 19.15 Laws 1975, chapter 425; Laws 1976, chapter 247; Laws 1981, 19.16 chapter 68, section 43; Laws 1982, chapter 578, article II, 19.17 section 1, subdivision 8; Laws 1984, chapter 574, sections 18 19.18 and 20; Laws 1985, chapter 261, section 18; and Laws 1986, 19.19 chapter 458, section 23, are repealed. 19.20 Subd. 14. [CHISHOLM FIRE; REPEALER.] Laws 1935, chapter 19.21 208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 19.22 Laws 1947, chapter 329; Laws 1951, chapter 144; Laws 1953, 19.23 chapter 391; Laws 1955, chapters 293 and 827; Laws 1961, chapter 19.24 631; Laws 1971, chapter 809; Laws 1973, chapter 433; Laws 1976, 19.25 chapter 78; Laws 1978, chapter 648; Laws 1979, chapter 131, 19.26 section 3; Laws 1981, chapter 68, sections 36 and 37; and Laws 19.27 1991, chapter 269, article 2, section 12, are repealed. 19.28 Subd. 15. [CHISHOLM POLICE; REPEALER.] Laws 1945, chapter 19.29 74; Laws 1949, chapter 164; Laws 1953, chapter 235; Laws 1959, 19.30 chapter 211; Laws 1961, chapter 290; Laws 1971, chapter 810; 19.31 Laws 1973, chapter 433; Laws 1976, chapter 78; Laws 1978, 19.32 chapters 563, section 27, and 648; Laws 1979, chapter 131, 19.33 section 3; Laws 1981, chapters 68, sections 31, 32, and 33; and 19.34 224, section 261; and Laws 1991, chapter 269, article 2, section 19.35 12, are repealed. 19.36 Subd. 16. [CLOQUET FIRE; REPEALER.] Laws 1941, chapter 20.1 196; Laws 1953, chapter 253; Laws 1955, chapter 42; Laws 1961, 20.2 chapter 295; Laws 1965, chapter 594; Laws 1967, chapter 783; and 20.3 Laws 1969, chapter 716, are repealed. 20.4 Subd. 17. [COLUMBIA HEIGHTS FIRE; REPEALER.] Laws 1965, 20.5 chapter 605; Laws 1975, chapter 424; Laws 1977, chapter 374, 20.6 sections 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 20.7 52, 53, 54, 55, 56, 57, 58, 59, and 60; Laws 1978, chapter 563, 20.8 sections 29 and 30; and Laws 1981, chapter 224, section 267, are 20.9 repealed. 20.10 Subd. 18. [COLUMBIA HEIGHTS POLICE; REPEALER.] Laws 1977, 20.11 chapter 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 20.12 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 20.13 30, 31, 32, 33, 34, 35, 36, and 37; and Laws 1993, chapter 126, 20.14 are repealed. 20.15 Subd. 19. [CROOKSTON FIRE; REPEALER.] Laws 1949, chapter 20.16 378; Laws 1957, chapter 144; Laws 1963, chapter 636; Laws 1971, 20.17 chapter 51; Laws 1978, chapter 563, sections 24, 25, and 26; 20.18 Laws 1981, chapter 224, sections 252 and 253; and Laws 1983, 20.19 chapter 291, sections 9, 10, 11, 12, 13, 14, 15, 16, and 17, are 20.20 repealed. 20.21 Subd. 20. [CROOKSTON POLICE; REPEALER.] Laws 1976, chapter 20.22 85; Laws 1977, chapter 275; Laws 1983, chapter 84, section 1; 20.23 and Laws 1984, chapter 574, section 26, are repealed. 20.24 Subd. 21. [CRYSTAL POLICE; REPEALER.] Laws 1963, chapter 20.25 619; Laws 1969, chapter 1087; and Laws 1980, chapter 607, 20.26 article XV, section 23, are repealed. 20.27 Subd. 22. [DULUTH FIRE; REPEALER.] Laws 1917, chapter 196; 20.28 Laws 1919, chapter 515; Laws 1955, chapter 188; Laws 1961, 20.29 chapter 186; Laws 1963, chapter 208; Laws 1965, chapter 179; 20.30 Laws 1967, chapter 732; Laws 1975, chapter 127; Laws 1976, 20.31 chapter 78, section 4; Laws 1977, chapter 164, section 3; Laws 20.32 1992, chapter 448, section 1; and Laws 1994, chapter 474, are 20.33 repealed. 20.34 Subd. 23. [DULUTH POLICE; REPEALER.] Laws 1915, chapter 20.35 68; Laws 1921, chapter 118; Laws 1923, chapter 54; Laws 1925, 20.36 chapter 197; Laws 1943, chapter 267; Laws 1949, chapter 153; 21.1 Laws 1953, chapter 91; Laws 1955, chapter 187; Laws 1959, 21.2 chapter 191; Laws 1975, chapter 408; Laws 1976, chapter 99; Laws 21.3 1980, chapter 600, section 11; and Laws 1992, chapter 448, are 21.4 repealed. 21.5 Subd. 24. [EVELETH FIRE; REPEALER.] Laws 1935, chapter 21.6 208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 21.7 Laws 1941, chapters 74 and 182; Laws 1947, chapter 329; Laws 21.8 1951, chapter 144; Laws 1953, chapter 391; Laws 1955, chapter 21.9 293; Laws 1961, chapter 620; Laws 1963, chapter 670; and Laws 21.10 1969, chapter 552, are repealed. 21.11 Subd. 25. [EVELETH POLICE; REPEALER.] Laws 1965, chapter 21.12 636; and Laws 1969, chapter 670, are repealed. 21.13 Subd. 26. [FARIBAULT FIRE; REPEALER.] Laws 1947, chapter 21.14 43; Laws 1949, chapter 154; Laws 1951, chapter 43; Laws 1957, 21.15 chapter 36; Laws 1961, chapter 443; Laws 1967, chapter 807; Laws 21.16 1969, chapter 614; Laws 1975, chapter 389; Laws 1984, chapter 21.17 574, section 22; Laws 1985, chapter 259, sections 5 and 6; Laws 21.18 1985, First Special Session chapter 16, article 2, section 6; 21.19 and Laws 1993, chapter 112, section 2, are repealed. 21.20 Subd. 27. [FARIBAULT POLICE; REPEALER.] Laws 1985, chapter 21.21 259, sections 5 and 6; Laws 1985, First Special Session chapter 21.22 16, article 2, section 6, are repealed. 21.23 Subd. 28. [FRIDLEY FIRE; REPEALER.] Laws 1969, chapter 21.24 594, is repealed. 21.25 Subd. 29. [FRIDLEY POLICE; REPEALER.] Laws 1977, chapter 21.26 83, is repealed. 21.27 Subd. 30. [HIBBING FIRE; REPEALER.] Laws 1935, chapter 21.28 192; Laws 1943, chapter 413; Laws 1945, chapter 182; Laws 1947, 21.29 chapter 101; Laws 1951, chapter 48; Laws 1955, chapter 294; Laws 21.30 1959, chapter 208; Laws 1967, chapter 816; Laws 1969, chapter 21.31 686; Laws 1971, chapter 614; Laws 1975, chapter 254, sections 5 21.32 and 6; Laws 1977, chapter 169; Laws 1981, chapter 224, section 21.33 260; Laws 1982, chapter 443; Laws 1987, chapter 372, article 2, 21.34 sections 7, 8, and 9; and Laws 1991, chapter 269, article 2, 21.35 sections 12 and 13, are repealed. 21.36 Subd. 31. [HIBBING POLICE; REPEALER.] Laws 1931, chapter 22.1 48; Laws 1933, chapter 122; Laws 1939, chapter 304; Laws 1945, 22.2 chapter 300; Laws 1947, chapter 40; Laws 1949, chapter 191; Laws 22.3 1951, chapter 243; Laws 1953, chapter 401; Laws 1957, chapter 22.4 793; Laws 1965, chapter 536; Laws 1967, chapter 678; Laws 1969, 22.5 chapter 672; Laws 1971, chapter 807; Laws 1983, chapter 74; Laws 22.6 1987, chapter 372, article 2, section 7; and Laws 1991, chapter 22.7 269, article 2, section 12, are repealed. 22.8 Subd. 32. [MANKATO FIRE; REPEALER.] Laws 1949, chapter 22.9 144; Laws 1953, chapter 37; Laws 1957, chapter 16; Laws 1971, 22.10 chapter 407; Extra Session Laws 1971, chapter 41; Laws 1981, 22.11 chapter 224, sections 258 and 259; and Laws 1989, chapter 319, 22.12 article 11, section 3, are repealed. 22.13 Subd. 33. [MANKATO POLICE; REPEALER.] Laws 1971, chapter 22.14 407; Extra Session Laws 1971, chapter 41; Laws 1981, chapter 22.15 224, sections 258 and 259; Laws 1986, chapter 458, section 34; 22.16 and Laws 1987, chapter 372, article 2, section 12, are repealed. 22.17 Subd. 34. [MOORHEAD FIRE; REPEALER.] Laws 1951, chapter 22.18 499; Laws 1955, chapter 75; Laws 1965, chapter 190; Laws 1969, 22.19 chapter 138; Laws 1975, chapter 120; Laws 1978, chapter 563, 22.20 sections 12 and 13; Laws 1979, chapter 216, sections 34, 35, 36, 22.21 37, 38, 39, 40, 41, 42, 43, and 44; Laws 1981, chapter 224, 22.22 section 236; and Laws 1982, chapter 578, article III, section 22.23 18, are repealed. 22.24 Subd. 35. [MOORHEAD POLICE; REPEALER.] Laws 1945, chapter 22.25 277; Laws 1967, chapter 775; Laws 1978, chapter 563, section 19; 22.26 Laws 1979, chapter 216, sections 27, 28, 29, 30, 31, and 44; 22.27 Laws 1980, chapter 600, section 16; Laws 1981, chapter 224, 22.28 section 243; and Laws 1982, chapter 578, article III, section 22.29 18, are repealed. 22.30 Subd. 36. [NEW ULM POLICE; REPEALER.] Laws 1965, chapter 22.31 174; Laws 1974, chapter 251; Laws 1981, chapter 224, sections 22.32 265 and 266; and Laws 1985, chapter 261, section 20, are 22.33 repealed. 22.34 Subd. 37. [RED WING FIRE; REPEALER.] Laws 1953, chapter 22.35 348; Laws 1955, chapter 49; Laws 1957, chapter 10; Laws 1961, 22.36 chapter 300; Laws 1965, chapter 604; Laws 1973, chapter 359; 23.1 Laws 1975, chapter 254, sections 1, 2, 3, and 4; and Laws 1984, 23.2 chapter 574, section 24, are repealed. 23.3 Subd. 38. [RED WING POLICE; REPEALER.] Laws 1965, chapter 23.4 174; Laws 1973, chapter 346; Laws 1983, chapter 291, section 8; 23.5 and Laws 1994, chapter 410, are repealed. 23.6 Subd. 39. [RICHFIELD FIRE; REPEALER.] Laws 1955, chapter 23.7 348; Extra Session Laws 1961, chapter 28; Laws 1963, chapter 23.8 464; Laws 1967, chapter 798; Laws 1978, chapter 563, sections 20 23.9 and 21; Laws 1980, chapter 607, article XV, section 23; Laws 23.10 1981, chapter 224, section 244; and Laws 1997, chapter 241, 23.11 article 2, sections 2, 3, 4, 5, 6, 9, 10, 13, 14, and 20, are 23.12 repealed. 23.13 Subd. 40. [RICHFIELD POLICE; REPEALER.] Laws 1957, chapter 23.14 455; Laws 1965, chapter 458; Laws 1978, chapter 563, section 16; 23.15 Laws 1980, chapter 607, article XV, section 23; Laws 1981, 23.16 chapter 224, section 239; and Laws 1991, chapter 96, are 23.17 repealed. 23.18 Subd. 41. [ROCHESTER FIRE; REPEALER.] Laws 1959, chapter 23.19 131; Laws 1969, chapter 694; Laws 1978, chapter 563, section 14; 23.20 Laws 1980, chapter 600, sections 18 and 22; and Laws 1981, 23.21 chapter 224, section 237, are repealed. 23.22 Subd. 42. [ROCHESTER POLICE; REPEALER.] Laws 1969, chapter 23.23 641; Laws 1975, chapter 368, section 54; Laws 1978, chapters 23.24 563, section 23; and 793, section 96; Laws 1980, chapter 600, 23.25 sections 18 and 22; and Laws 1981, chapter 224, section 248, are 23.26 repealed. 23.27 Subd. 43. [ST. CLOUD FIRE; REPEALER.] Laws 1961, chapter 23.28 343; Laws 1963, chapter 453; Laws 1967, chapter 702; Laws 1974, 23.29 chapter 382; Laws 1977, chapter 270; Laws 1978, chapter 690, 23.30 sections 9 and 10; and Laws 1982, chapter 402, are repealed. 23.31 Subd. 44. [ST. CLOUD POLICE; REPEALER.] Laws 1973, chapter 23.32 432; Laws 1980, chapter 341, sections 2, 3, 4, and 5; Laws 1984, 23.33 chapter 574, section 25; and Laws 1999, chapter 222, article 3, 23.34 section 6, are repealed. 23.35 Subd. 45. [ST. LOUIS PARK FIRE; REPEALER.] Laws 1967, 23.36 chapter 730; Laws 1969, chapter 576; Laws 1978, chapter 563, 24.1 section 22; Laws 1981, chapter 224, section 247; and Laws 1985, 24.2 chapter 261, sections 32, 33, 34, and 35, are repealed. 24.3 Subd. 46. [ST. LOUIS PARK POLICE; REPEALER.] Laws 1963, 24.4 chapter 454; Laws 1980, chapter 600, section 17; Laws 1984, 24.5 chapter 574, section 19; and Laws 1990, chapter 589, article 1, 24.6 section 7, are repealed. 24.7 Subd. 47. [ST. PAUL FIRE; REPEALER.] Laws 1917, chapter 24.8 196; Laws 1919, chapter 515; Laws 1955, chapter 375; Laws 1957, 24.9 chapters 256 and 257; Laws 1961, chapter 376; Laws 1963, chapter 24.10 221; Laws 1965, chapter 790; Laws 1967, chapters 644 and 708; 24.11 Laws 1969, chapters 443, 669, and 671; Laws 1973, chapter 287; 24.12 Laws 1975, chapter 423; Laws 1977, chapter 164, section 1; Laws 24.13 1981, chapter 68, section 35; Laws 1989, chapter 319, article 24.14 11, section 12; Laws 1992, chapters 422 and 563, sections 3, 4, 24.15 and 5; Laws 1993, chapter 110; Laws 1996, chapter 448, article 24.16 2, section 1; and Laws 1997, chapter 241, article 2, sections 11 24.17 and 15, are repealed. 24.18 Subd. 48. [ST. PAUL POLICE; REPEALER.] Special Laws 1889, 24.19 chapter 425; Special Laws 1891, chapter 11; Laws 1897, chapters 24.20 389 and 390; Laws 1919, chapter 68; Laws 1921, chapter 118; Laws 24.21 1923, chapter 54; Laws 1925, chapter 197; Laws 1955, chapter 24.22 151; Laws 1961, chapters 434 and 435, section 2; Laws 1963, 24.23 chapter 271; Laws 1965, chapter 465; Laws 1969, chapters 442, 24.24 668, and 671; Laws 1971, chapter 549; Laws 1973, chapter 286; 24.25 Laws 1980, chapter 600, sections 12, 13, 14, and 15; Laws 1981, 24.26 chapter 68, section 34; Laws 1983, chapter 47; Laws 1988, 24.27 chapter 709, article 8, section 5; Laws 1989, chapter 319, 24.28 article 11, sections 2 and 12; Laws 1992, chapters 393, section 24.29 1; 563, section 5; and 586, section 1; Laws 1994, chapter 409; 24.30 Laws 1996, chapter 448, article 2, section 1; and Laws 1997, 24.31 chapter 241, article 2, sections 11 and 15, are repealed. 24.32 Subd. 49. [SOUTH ST. PAUL FIRE; REPEALER] Laws 1943, 24.33 chapter 397; Laws 1947, chapter 274; Laws 1949, chapter 281; 24.34 Laws 1951, chapters 233 and 420; Laws 1953, chapters 44 and 406; 24.35 Laws 1957, chapter 127; Laws 1961, chapter 747; Laws 1963, 24.36 chapter 715; Laws 1965, chapter 457; Laws 1969, chapter 849; and 25.1 Laws 1971, chapter 178, are repealed. 25.2 Subd. 50. [SOUTH ST. PAUL POLICE; REPEALER.] Laws 1994, 25.3 chapter 541, section 3, is repealed. 25.4 Subd. 51. [THIEF RIVER FALLS POLICE; REPEALER.] Laws 1981, 25.5 chapters 68, sections 41 and 42; 224, sections 272 and 273; Laws 25.6 1985, chapter 261, section 14; and Laws 1992, chapter 431, 25.7 section 1, are repealed. 25.8 Subd. 52. [VIRGINIA POLICE; REPEALER.] Laws 1935, chapters 25.9 92 and 259; Laws 1937, chapter 197; Laws 1949, chapter 235; Laws 25.10 1965, chapter 174; Laws 1982, chapter 574, sections 3, 4, 5, 6, 25.11 and 8; Laws 1985, chapter 261, sections 15 and 16; Laws 1989, 25.12 chapter 319, article 11, section 4; and Laws 1992, chapter 392, 25.13 section 1, are repealed. 25.14 Subd. 53. [WEST ST. PAUL FIRE; REPEALER.] Laws 1961, 25.15 chapter 399; Laws 1965, chapter 540; Laws 1982, chapter 610, 25.16 sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 20; 25.17 and Laws 1984, chapter 574, section 33, are repealed. 25.18 Subd. 54. [WEST ST. PAUL POLICE; REPEALER] Laws 1965, 25.19 chapter 174; Laws 1967, chapter 751; Laws 1981, chapter 297, 25.20 sections 1 and 2; Laws 1987, chapter 372, article 2, section 10; 25.21 and Laws 1995, chapter 262, article 10, section 4, are repealed. 25.22 Subd. 55. [WINONA FIRE; REPEALER.] Extra Session Laws 25.23 1961, chapter 80; Laws 1963, chapter 443; and Laws 1967, chapter 25.24 848, are repealed. 25.25 Subd. 56. [WINONA POLICE; REPEALERS.] Laws 1959, chapter 25.26 108; Extra Session Laws 1961, chapter 80; Laws 1977, chapter 25.27 429, section 62; Laws 1986, chapter 359, sections 22, 23, 24, 25.28 and 25; and Laws 1988, chapter 709, article 9, section 5, are 25.29 repealed. 25.30 Subd. 57. [OTHER REPEALER.] Minnesota Statutes 2000, 25.31 sections 69.78; 297I.10, subdivision 2; and 423A.03, are 25.32 repealed. 25.33 Sec. 10. [EFFECTIVE DATE.] 25.34 Sections 1 to 9 are effective on July 1, 2002. 25.35 ARTICLE 2 25.36 RETIREMENT PLAN ALLOWABLE SERVICE 26.1 CREDIT FOR STRIKE PERIODS 26.2 Section 1. Minnesota Statutes 2001 Supplement, section 26.3 352.01, subdivision 11, is amended to read: 26.4 Subd. 11. [ALLOWABLE SERVICE.] "Allowable service" means: 26.5 (1) Service by an employee for which on or before July 1, 26.6 1957, the employee was entitled to allowable service credit on 26.7 the records of the system by reason of employee contributions in 26.8 the form of salary deductions, payments in lieu of salary 26.9 deductions, or in any other manner authorized by Minnesota 26.10 Statutes 1953, chapter 352, as amended by Laws 1955, chapter 239. 26.11 (2) Service by an employee for which on or before July 1, 26.12 1961, the employee chose to obtain credit for service by making 26.13 payments to the fund under Minnesota Statutes 1961, section 26.14 352.24. 26.15 (3) Except as provided in clauses (8) and (9), service by 26.16 an employee after July 1, 1957, for any calendar month in which 26.17 the employee is paid salary from which deductions are made, 26.18 deposited, and credited in the fund, including deductions made, 26.19 deposited, and credited as provided in section 352.041. 26.20 (4) Except as provided in clauses (8) and (9), service by 26.21 an employee after July 1, 1957, for any calendar month for which 26.22 payments in lieu of salary deductions are made, deposited, and 26.23 credited in the fund, as provided in section 352.27 and 26.24 Minnesota Statutes 1957, section 352.021, subdivision 4. 26.25 For purposes of clauses (3) and (4), except as provided in 26.26 clauses (8) and (9), any salary paid for a fractional part of 26.27 any calendar month, including the month of separation from state 26.28 service, is deemed the compensation for the entire calendar 26.29 month. 26.30 (5) The period of absence from their duties by employees 26.31 who are temporarily disabled because of injuries incurred in the 26.32 performance of duties and for which disability the state is 26.33 liable under the workers' compensation law until the date 26.34 authorized by the director for the commencement of payments of a 26.35 total and permanent disability benefit from the retirement fund. 26.36 (6) Service covered by a refund repaid as provided in 27.1 section 352.23 or 352D.05, subdivision 4, except service 27.2 rendered as an employee of the adjutant general for which the 27.3 person has credit with the federal civil service retirement 27.4 system. 27.5 (7) Service before July 1, 1978, by an employee of the 27.6 transit operating division of the metropolitan transit 27.7 commission or by an employee on an authorized leave of absence 27.8 from the transit operating division of the metropolitan transit 27.9 commission who is employed by the labor organization which is 27.10 the exclusive bargaining agent representing employees of the 27.11 transit operating division, which was credited by the 27.12 metropolitan transit commission-transit operating division 27.13 employees retirement fund or any of its predecessor plans or 27.14 funds as past, intermediate, future, continuous, or allowable 27.15 service as defined in the metropolitan transit 27.16 commission-transit operating division employees retirement fund 27.17 plan document in effect on December 31, 1977. 27.18 (8) Service after July 1, 1983, by an employee who is 27.19 employed on a part-time basis for less than 50 percent of full 27.20 time, for which the employee is paid salary from which 27.21 deductions are made, deposited, and credited in the fund, 27.22 including deductions made, deposited, and credited as provided 27.23 in section 352.041 or for which payments in lieu of salary 27.24 deductions are made, deposited, and credited in the fund as 27.25 provided in section 352.27 shall be credited on a fractional 27.26 basis either by pay period, monthly, or annually based on the 27.27 relationship that the percentage of salary earned bears to a 27.28 full-time salary, with any salary paid for the fractional 27.29 service credited on the basis of the rate of salary applicable 27.30 for a full-time pay period, month, or a full-time year. For 27.31 periods of part-time service that is duplicated service credit, 27.32 section 356.30, subdivision 1, clauses (i) and (j), govern. 27.33 Allowable service determined and credited on a fractional 27.34 basis shall be used in calculating the amount of benefits 27.35 payable, but service as determined on a fractional basis must 27.36 not be used in determining the length of service required for 28.1 eligibility for benefits. 28.2 (9) Any period of authorized leave of absence without pay 28.3 that does not exceed one year and for which the employee 28.4 obtained credit by payment to the fund in lieu of salary 28.5 deductions. To obtain credit, the employee shall pay an amount 28.6 equal to the employee and employer contribution rate in section 28.7 352.04, subdivisions 2 and 3, multiplied by the employee's 28.8 hourly rate of salary on the date of return from leave of 28.9 absence and by the days and months of the leave of absence 28.10 without pay for which the employee wants allowable service 28.11 credit. The employing department, at its option, may pay the 28.12 employer amount on behalf of its employees. Payments made under 28.13 this clause must include interest at an annual rate of 8.5 28.14 percent compounded annually from the date of termination of the 28.15 leave of absence to the date payment is made unless payment is 28.16 completed within one year of the return from leave of absence. 28.17 (10) A period purchased under section 356.555. 28.18 (11) A period of time during which the employee was on 28.19 strike without pay, not to exceed a period of one year, if the 28.20 employee makes a payment in lieu of salary deductions or makes a 28.21 prior service credit purchase payment, whichever applies. If 28.22 the payment is made within 12 months, the payment by the 28.23 employee must be an amount equal to the employee and employer 28.24 contribution rates set forth in section 352.04, subdivisions 2 28.25 and 3, applied to the employee's rate of salary in effect on the 28.26 conclusion of the strike for the period of the strike without 28.27 pay, plus compound interest at a monthly rate of 0.71 percent 28.28 from the last day of the strike until the date of payment. If 28.29 the payment is not made within 12 months, the payment must be in 28.30 an amount equal to the payment amount determined under section 28.31 356.55 or 356.551, whichever applies. 28.32 Sec. 2. Minnesota Statutes 2001 Supplement, section 28.33 353.01, subdivision 16, is amended to read: 28.34 Subd. 16. [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 28.35 "Allowable service" means: 28.36 (1) service during years of actual membership in the course 29.1 of which employee contributions were made, periods covered by 29.2 payments in lieu of salary deductions under section 353.35; 29.3 (2) service in years during which the public employee was 29.4 not a member but for which the member later elected, while a 29.5 member, to obtain credit by making payments to the fund as 29.6 permitted by any law then in effect; 29.7 (3) a period of authorized leave of absence with pay from 29.8 which deductions for employee contributions are made, deposited, 29.9 and credited to the fund; 29.10 (4) a period of authorized personal, parental, or medical 29.11 leave of absence without pay, including a leave of absence 29.12 covered under the federal Family Medical Leave Act, that does 29.13 not exceed one year, and during or for which a member obtained 29.14 full or fractional service credit for each month in the leave 29.15 period by payments to the fund made in place of salary 29.16 deductions. The payments must be made in an amount or amounts 29.17 based on the member's average salary on which deductions were 29.18 paid for the last six months of public service, or for that 29.19 portion of the last six months while the member was in public 29.20 service, to apply to the period in either case that immediately 29.21 precedes the commencement of the leave of absence. If the 29.22 employee elects to pay the employee contributions for the period 29.23 of any authorized personal, parental, or medical leave of 29.24 absence without pay, or for any portion of the leave, the 29.25 employee shall also, as a condition to the exercise of the 29.26 election, pay to the fund an amount equivalent to the required 29.27 employer and the additional employer contributions, if any, for 29.28 the employee. The payment must be made within one year from the 29.29 expiration of the leave of absence or within 20 days after 29.30 termination of public service under subdivision 11a. The 29.31 employer, if by appropriate action of its governing body, which 29.32 is made a part of its official records, and which is adopted 29.33 before the date of the first payment of the employee 29.34 contribution, may certify to the association in writing its 29.35 commitment to pay the employer and additional employer 29.36 contributions from the proceeds of a tax levy made under section 30.1 353.28. Payments under this paragraph must include interest at 30.2 an annual rate of 8.5 percent compounded annually from the date 30.3 of the termination of the leave of absence to the date payment 30.4 is made. An employee shall return to public service and render 30.5 a minimum of three months of allowable service in order to be 30.6 eligible to pay employee and employer contributions for a 30.7 subsequent authorized leave of absence without pay. Upon 30.8 payment, the employee must be granted allowable service credit 30.9 for full calendar months or fractions of a month during the 30.10 leave period as described in paragraph (d), clauses (1) and (2), 30.11 based on the salary or the compensated hours used in computing 30.12 the payment amount; 30.13 (5) a periodic, repetitive leave that is offered to all 30.14 employees of a governmental subdivision. The leave program may 30.15 not exceed 208 hours per annual normal work cycle as certified 30.16 to the association by the employer. A participating member 30.17 obtains service credit by making employee contributions in an 30.18 amount or amounts based on the member's average salary that 30.19 would have been paid if the leave had not been taken. The 30.20 employer shall pay the employer and additional employer 30.21 contributions on behalf of the participating member. The 30.22 employee and the employer are responsible to pay interest on 30.23 their respective shares at the rate of 8.5 percent a year, 30.24 compounded annually, from the end of the normal cycle until full 30.25 payment is made. An employer shall also make the employer and 30.26 additional employer contributions, plus 8.5 percent interest, 30.27 compounded annually, on behalf of an employee who makes employee 30.28 contributions but terminates public service. The employee 30.29 contributions must be made within one year after the end of the 30.30 annual normal working cycle or within 20 days after termination 30.31 of public service, whichever is sooner. The association shall 30.32 prescribe the manner and forms to be used by a governmental 30.33 subdivision in administering a periodic, repetitive leave. Upon 30.34 payment, the member must be granted allowable service credit for 30.35 full calendar months or fractions of a month during the leave 30.36 period as described in paragraph (d), clauses (1) and (2), based 31.1 on the salary or the compensated hours used in computing the 31.2 payment amount; 31.3 (6) an authorized temporary layoff under subdivision 12. 31.4 For temporary layoffs that begin before January 1, 2002, 31.5 allowable service credit is limited to three months allowable 31.6 service per authorized temporary layoff in one calendar year. 31.7 For temporary layoffs that begin on or after January 1, 2002, 31.8 allowable service credit for the calendar month in which the 31.9 member does not receive salary due to the layoff must be 31.10 determined using the following formula: 31.11 (i) members who earned one month of allowable service 31.12 credit for each of the nine calendar months of compensated 31.13 employment with the governmental subdivision authorizing the 31.14 layoff that immediately preceded the layoff shall receive one 31.15 month of allowable service credit, limited to three months of 31.16 allowable service credit per year, for each month of the 31.17 temporary layoff; or 31.18 (ii) members who earned less than nine months of allowable 31.19 service credit in the year of compensated employment with the 31.20 governmental subdivision authorizing the layoff that immediately 31.21 preceded the layoff shall receive allowable service credit on a 31.22 fractional basis for each month of the authorized layoff, 31.23 limited to three months of allowable service credit, determined 31.24 by dividing the total number of months of service credit earned 31.25 for the compensated employment by nine and multiplying the 31.26 resulting number by the total number of months in the layoff 31.27 period that are not compensated;or31.28 (7) a period during which a member is on an authorized 31.29 leave of absence to enter military service in the armed forces 31.30 of the United States, provided that the member returns to public 31.31 service upon discharge from military service under section 31.32 192.262 and pays into the fund employee contributions based upon 31.33 the employee's salary at the date of return from military 31.34 service. Payment must be made within three times the length of 31.35 the military leave period, or five years of the date of 31.36 discharge from the military service, whichever is less. The 32.1 amount of these contributions must be in accord with the 32.2 contribution rates and salary limitations, if any, in effect 32.3 during the leave, plus interest at an annual rate of 8.5 percent 32.4 compounded annually from the date of return to public service to 32.5 the date payment is made. The matching employer contribution 32.6 and additional employer contribution under section 353.27, 32.7 subdivisions 3 and 3a, must be paid by the governmental 32.8 subdivision employing the member upon return to public service 32.9 if the member makes the employee contributions. The 32.10 governmental subdivision involved may appropriate money for 32.11 those payments. A member may not receive credit for a voluntary 32.12 extension of military service at the instance of the member 32.13 beyond the initial period of enlistment, induction, or call to 32.14 active duty. Upon payment, the employee must be granted 32.15 allowable service credit for full calendar months or fractions 32.16 of a month during the leave period as described in paragraph 32.17 (d), clauses (1) and (2), based on the salary or compensated 32.18 hours used in computing the payment amount.; or 32.19 (8) a period of time during which a member who is a state 32.20 employee was on strike without pay, not to exceed a period of 32.21 one year, if the member makes a payment in lieu of salary 32.22 deductions or makes a prior service credit purchase payment, 32.23 whichever applies. If the payment is made within 12 months, the 32.24 payment by the member must be an amount equal to the employee, 32.25 employer, and employer additional contribution rates set forth 32.26 in section 353.27, subdivisions 2, 3, and 3a, applied to the 32.27 employee's rate of salary in effect on the conclusion of the 32.28 strike for the period of the strike without pay, plus compound 32.29 interest at a monthly rate of 0.71 percent from the last day of 32.30 the strike until the date of payment. If the payment is not 32.31 made within 12 months, the payment must be in an amount equal to 32.32 the payment amount determined under section 356.55 or 356.551, 32.33 whichever applies. 32.34 (b) For calculating benefits under sections 353.30, 353.31, 32.35 353.32, and 353.33 for state officers and employees displaced by 32.36 the Community Corrections Act, chapter 401, and transferred into 33.1 county service under section 401.04, "allowable service" means 33.2 combined years of allowable service as defined in paragraph (a), 33.3 clauses (1) to (6), and section 352.01, subdivision 11. 33.4 (c) For a public employee who has prior service covered by 33.5 a local police or firefighters relief association that has 33.6 consolidated with the public employees retirement association or 33.7 to which section 353.665 applies, and who has elected the type 33.8 of benefit coverage provided by the public employees police and 33.9 fire fund either under section 353A.08 following the 33.10 consolidation or under section 353.665, subdivision 4, 33.11 "applicable service" is a period of service credited by the 33.12 local police or firefighters relief association as of the 33.13 effective date of the consolidation based on law and on bylaw 33.14 provisions governing the relief association on the date of the 33.15 initiation of the consolidation procedure. 33.16 (d) For persons who, after January 1, 2002, either first 33.17 become members or terminated membership under subdivision 11b, 33.18 and again become members, of the public employees retirement 33.19 plan, the public employees police and fire plan under this 33.20 chapter, or the local government correctional employee 33.21 retirement plan under chapter 353E, whichever applies, 33.22 "allowable service" means credit for compensated hours from 33.23 which deductions are made, or for which payments are made in 33.24 lieu of salary deductions as provided under this subdivision, 33.25 and which are deposited and credited in the fund as provided in 33.26 section 353.27, determined as follows: 33.27 (1) one month of allowable service credit for each month 33.28 during which the employee has received salary for 80 or more 33.29 compensated hours; or 33.30 (2) a fraction of one month of allowable service for each 33.31 month for which the employee has received salary for less than 33.32 80 compensated hours equal to the percentage relationship that 33.33 the number of compensated hours bear to 80 hours. 33.34 (e) Elected officials and other public employees who are 33.35 compensated solely on an annual basis shall be granted a full 33.36 year of credit for each year for which compensation is earned. 34.1 (f) Allowable service that is determined and credited on a 34.2 fractional basis must be used only in calculating the amount of 34.3 benefits payable. In determining the length of service required 34.4 for vesting, a member shall be granted a month of service credit 34.5 for each month in which the member received compensation from 34.6 which employee contributions were deducted. For periods of 34.7 part-time service that are duplicated service credit, section 34.8 356.30, subdivision 1, paragraphs (g) and (h), govern. 34.9 (g) No member shall receive more than 12 months of 34.10 allowable service credit in a year either for vesting purposes 34.11 or for benefit calculation purposes. 34.12 (h) "Allowable service" also means a period purchased under 34.13 section 356.555. 34.14 Sec. 3. Minnesota Statutes 2001 Supplement, section 34.15 354.05, subdivision 13, is amended to read: 34.16 Subd. 13. [ALLOWABLE SERVICE.] "Allowable service" means: 34.17 (1) Any service rendered by a teacher for which on or 34.18 before July 1, 1957, the teacher's account in the retirement 34.19 fund was credited by reason of employee contributions in the 34.20 form of salary deductions, payments in lieu of salary 34.21 deductions, or in any other manner authorized by Minnesota 34.22 Statutes 1953, sections 135.01 to 135.13, as amended by Laws 34.23 1955, chapters 361, 549, 550, 611, or 34.24 (2) Any service rendered by a teacher for which on or 34.25 before July 1, 1961, the teacher elected to obtain credit for 34.26 service by making payments to the fund pursuant to Minnesota 34.27 Statutes 1980, section 354.09 and section 354.51, or 34.28 (3) Any service rendered by a teacher after July 1, 1957, 34.29 for any calendar month when the member receives salary from 34.30 which deductions are made, deposited and credited in the fund, 34.31 or 34.32 (4) Any service rendered by a person after July 1, 1957, 34.33 for any calendar month where payments in lieu of salary 34.34 deductions are made, deposited and credited into the fund as 34.35 provided in Minnesota Statutes 1980, section 354.09, subdivision 34.36 4, and section 354.53, or 35.1 (5) Any service rendered by a teacher for which the teacher 35.2 elected to obtain credit for service by making payments to the 35.3 fund pursuant to Minnesota Statutes 1980, section 354.09, 35.4 subdivisions 1 and 4, sections 354.50, 354.51, Minnesota 35.5 Statutes 1957, section 135.41, subdivision 4, Minnesota Statutes 35.6 1971, section 354.09, subdivision 2, or Minnesota Statutes, 1973 35.7 Supplement, section 354.09, subdivision 3, or 35.8 (6) Both service during years of actual membership in the 35.9 course of which contributions were currently made and service in 35.10 years during which the teacher was not a member but for which 35.11 the teacher later elected to obtain credit by making payments to 35.12 the fund as permitted by any law then in effect, or 35.13 (7) Any service rendered where contributions were made and 35.14 no allowable service credit was established because of the 35.15 limitations contained in Minnesota Statutes 1957, section 35.16 135.09, subdivision 2, as determined by the ratio between the 35.17 amounts of money credited to the teacher's account in a fiscal 35.18 year and the maximum retirement contribution allowable for that 35.19 year, or 35.20 (8) A period purchased under section 356.555., or 35.21 (9) A period of time during which a teacher who is a state 35.22 employee was on strike without pay, not to exceed a period of 35.23 one year, if the teacher makes a payment in lieu of salary 35.24 deductions or makes a prior service credit purchase payment, 35.25 whichever applies. If the payment is made within 12 months, the 35.26 payment by the teacher must be an amount equal to the employee 35.27 and employer contribution rates set forth in section 354.42, 35.28 subdivisions 2 and 3, applied to the teacher's rate of salary in 35.29 effect on the conclusion of the strike for the period of the 35.30 strike without pay, plus compound interest at a monthly rate of 35.31 0.71 percent from the last day of the strike until the date of 35.32 payment. If the payment is not made within 12 months, the 35.33 payment must be in an amount equal to the payment amount 35.34 determined under section 356.55 or 356.551, whichever applies. 35.35 Sec. 4. [EFFECTIVE DATE.] 35.36 (a) Sections 1, 2, and 3 are effective retroactive to July 36.1 1, 2001. 36.2 (b) The authority to obtain credit for allowable service 36.3 under section 1, clause (11); section 2, paragraph (a), clause 36.4 (8); and section 3, clause (9), expires 12 months after the date 36.5 of enactment. 36.6 ARTICLE 3 36.7 PERA MEMBERSHIP ELIGIBILITY 36.8 AND SERVICE CREDIT PRORATION 36.9 Section 1. Minnesota Statutes 2001 Supplement, section 36.10 353.01, subdivision 2a, is amended to read: 36.11 Subd. 2a. [INCLUDED EMPLOYEES.] (a) Public employees whose 36.12 salary from one governmental subdivision exceeds $425 in any 36.13 month shall participate as members of the association. If the 36.14 salary is less than $425 in a subsequent month, the employee 36.15 retains membership eligibility. Eligible public employees shall 36.16 participate as members of the association with retirement 36.17 coverage by the public employees retirement plan or the public 36.18 employees police and fire retirement plan under this chapter, or 36.19 the local government correctional employees retirement plan 36.20 under chapter 353E, whichever applies, as a condition of their 36.21 employment on the first day of employment unless they: 36.22 (1) are specifically excluded under subdivision 2b; 36.23 (2) do not exercise their option to elect retirement 36.24 coverage in the association as provided in subdivision 2d, 36.25 paragraph (a); or 36.26 (3) are employees of the governmental subdivisions listed 36.27 in subdivision 2d, paragraph (b), where the governmental 36.28 subdivision has not elected to participate as a governmental 36.29 subdivision covered by the association. 36.30 (b) A public employee who was a member of the association 36.31 on June 30, 2002, based on employment that qualified for 36.32 membership coverage by the public employees retirement plan or 36.33 the public employees police and fire plan under this chapter, or 36.34 the local government correctional employees retirement plan 36.35 under chapter 353E as of June 30, 2002, retains that membership 36.36 until the employee terminates public employment under 37.1 subdivision 11a or terminates membership under subdivision 11b. 37.2 Sec. 2. Minnesota Statutes 2001 Supplement, section 37.3 353.01, subdivision 2b, is amended to read: 37.4 Subd. 2b. [EXCLUDED EMPLOYEES.] The following public 37.5 employees are not eligible to participate as members of the 37.6 association with retirement coverage by the public employees 37.7 retirement plan, the local government correctional employees 37.8 retirement plan under chapter 353E, or the public employees 37.9 police and fire retirement plan: 37.10 (1) public officers, other than county sheriffs, who are 37.11 elected to a governing body, or persons who are appointed to 37.12 fill a vacancy in an elective office of a governing body, whose 37.13 term of office first commences on or after July 1, 2002, for the 37.14 service to be rendered in that elective position. Elected 37.15 governing body officials who were active members of the 37.16 association's coordinated or basic retirement plans as of June 37.17 30, 2002, continue participation throughout incumbency in office 37.18 until termination of public service occurs as defined in 37.19 subdivision 11a; 37.20 (2) election officers or election judges; 37.21 (3) patient and inmate personnel who perform services for a 37.22 governmental subdivision; 37.23 (4) employees who are hired for a temporary position under 37.24 subdivision 12a, and employees who resign from a nontemporary 37.25 position and accept a temporary position within 30 days in the 37.26 same governmental subdivision. An employer must not apply the 37.27 definition of temporary position so as to exclude employees who 37.28 are hired to fill positions that are permanent or that are for 37.29 an unspecified period but who are serving a probationary period 37.30 at the start of the employment. If the period of employment 37.31 extends beyond six consecutive months and the employee earns 37.32 more than $425 from one governmental subdivision in any calendar 37.33 month, the department head shall report the employee for 37.34 membership and require employee deductions be made on behalf of 37.35 the employee under section 353.27, subdivision 4. 37.36 The membership eligibility of an employee who resigns or is 38.1 dismissed from a temporary position and within 30 days accepts 38.2 another temporary position in the same governmental subdivision 38.3 is determined on the total length of employment rather than on 38.4 each separate position. Membership eligibility of an employee 38.5 who holds concurrent temporary and nontemporary positions in one 38.6 governmental subdivision is determined by the length of 38.7 employment and salary of each separate position; 38.8 (5) employees who are employed by reason of work emergency 38.9 caused by fire, flood, storm, or similar disaster; 38.10 (6) employees who by virtue of their employment in one 38.11 governmental subdivision are required by law to be a member of 38.12 and to contribute to any of the plans or funds administered by 38.13 the Minnesota state retirement system, the teachers retirement 38.14 association, the Duluth teachers retirement fund association, 38.15 the Minneapolis teachers retirement association, the St. Paul 38.16 teachers retirement fund association, the Minneapolis employees 38.17 retirement fund, or any police or firefighters relief 38.18 association governed by section 69.77 that has not consolidated 38.19 with the public employees retirement association, or any local 38.20 police or firefighters consolidation account but who have not 38.21 elected the type of benefit coverage provided by the public 38.22 employees police and fire fund under sections 353A.01 to 38.23 353A.10, or any persons covered by section 353.665, subdivision 38.24 4, 5, or 6, who have not elected public employees police and 38.25 fire plan benefit coverage. This clause must not be construed 38.26 to prevent a person from being a member of and contributing to 38.27 the public employees retirement association and also belonging 38.28 to and contributing to another public pension fund for other 38.29 service occurring during the same period of time. A person who 38.30 meets the definition of "public employee" in subdivision 2 by 38.31 virtue of other service occurring during the same period of time 38.32 becomes a member of the association unless contributions are 38.33 made to another public retirement fund on the salary based on 38.34 the other service or to the teachers retirement association by a 38.35 teacher as defined in section 354.05, subdivision 2; 38.36 (7) persons who are members of a religious order and are 39.1 excluded from coverage under the federal Old Age, Survivors, 39.2 Disability, and Health Insurance Program for the performance of 39.3 service as specified in United States Code, title 42, section 39.4 410(a)(8)(A), as amended through January 1, 1987, if no 39.5 irrevocable election of coverage has been made under section 39.6 3121(r) of the Internal Revenue Code of 1954, as amended; 39.7 (8) employeeswho at the time they are hired by aof a 39.8 governmental subdivision who have not reached the age of 23 and 39.9 are enrolled on a full-time basis to attend or are attending 39.10 classes on a full-time basis at an accredited school, college, 39.11 or university in an undergraduate, graduate, or 39.12 professional-technical program, or a public or charter high 39.13 school, if the employment is predicated on the student status of39.14the individual; 39.15 (9) resident physicians, medical interns, and pharmacist 39.16 residents and pharmacist interns who are serving in a degree or 39.17 residency program in public hospitals; 39.18 (10) students who are serving in an internship or residency 39.19 program sponsored by an accredited educational institution; 39.20 (11) persons who hold a part-time adult supplementary 39.21 technical college license who render part-time teaching service 39.22 in a technical college; 39.23 (12) except for employees of Hennepin county, foreign 39.24 citizens working for a governmental subdivision with a work 39.25 permit of less than three years, or an H-1b visa valid for less 39.26 than three years of employment. Upon notice to the association 39.27 that the work permit or visa extends beyond the three-year 39.28 period, the foreign citizens areeligibleto be reported for 39.29 membership from the date of the extension; 39.30 (13) public hospital employees who elected not to 39.31 participate as members of the association before 1972 and who 39.32 did not elect to participate from July 1, 1988, to October 1, 39.33 1988; 39.34 (14) except as provided in section 353.86, volunteer 39.35 ambulance service personnel, as defined in subdivision 35, but 39.36 persons who serve as volunteer ambulance service personnel may 40.1 still qualify as public employees under subdivision 2 and may be 40.2 members of the public employees retirement association and 40.3 participants in the public employees retirement fund or the 40.4 public employees police and fire fund, whichever applies, on the 40.5 basis of compensation received from public employment service 40.6 other than service as volunteer ambulance service personnel; 40.7 (15) except as provided in section 353.87, volunteer 40.8 firefighters, as defined in subdivision 36, engaging in 40.9 activities undertaken as part of volunteer firefighter duties; 40.10 provided that a person who is a volunteer firefighter may still 40.11 qualify as a public employee under subdivision 2 and may be a 40.12 member of the public employees retirement association and a 40.13 participant in the public employees retirement fund or the 40.14 public employees police and fire fund, whichever applies, on the 40.15 basis of compensation received from public employment activities 40.16 other than those as a volunteer firefighter; 40.17 (16) pipefitters and associated trades personnel employed 40.18 by independent school district No. 625, St. Paul, with coverage 40.19 under a collective bargaining agreement by the pipefitters local 40.20 455 pension plan who were either first employed after May 1, 40.21 1997, or, if first employed before May 2, 1997, elected to be 40.22 excluded under Laws 1997, chapter 241, article 2, section 12; 40.23 (17) electrical workers, plumbers, carpenters, and 40.24 associated trades personnel employed by independent school 40.25 district No. 625, St. Paul, or the city of St. Paul, who have 40.26 retirement coverage under a collective bargaining agreement by 40.27 the electrical workers local 110 pension plan, the united 40.28 association plumbers local 34 pension plan, or the carpenters 40.29 local 87 pension plan who were either first employed after May 40.30 1, 2000, or, if first employed before May 2, 2000, elected to be 40.31 excluded under Laws 2000, chapter 461, article 7, section 5; 40.32 (18) bricklayers, allied craftworkers, cement masons, 40.33 glaziers, glassworkers, painters, allied tradesworkers, and 40.34 plasterers employed by the city of St. Paul or independent 40.35 school district No. 625, St. Paul, with coverage under a 40.36 collective bargaining agreement by the bricklayers and allied 41.1 craftworkers local 1 pension plan, the cement masons local 633 41.2 pension plan, the glaziers and glassworkers local L-1324 pension 41.3 plan, the painters and allied trades local 61 pension plan, or 41.4 the Twin Cities plasterers local 265 pension plan who were 41.5 either first employed after May 1, 2001, or if first employed 41.6 before May 2, 2001, elected to be excluded under Laws 2001, 41.7 First Special Session chapter 10, article 10, section 6; 41.8 (19) plumbers employed by the metropolitan airports 41.9 commission, with coverage under a collective bargaining 41.10 agreement by the plumbers local 34 pension plan, who either were 41.11 first employed after May 1, 2001, or if first employed before 41.12 May 2, 2001, elected to be excluded under Laws 2001, First 41.13 Special Session chapter 10, article 10, section 6; 41.14 (20) employees who are hired after June 30, 2002, to fill 41.15 seasonal positions under subdivision 12b which are limited in 41.16 duration by the employer to 185 consecutive calendar days or 41.17 less in eachbusinessyear of employment with the governmental 41.18 subdivision; 41.19 (21) persons who are provided supported employment or 41.20 work-study positions by a governmental subdivision and who 41.21 participate in an employment or industries program maintained 41.22 for the benefit of these persons where the governmental 41.23 subdivision limits the position's duration to three years or 41.24 less, including persons participating in a federal or state 41.25 subsidized on-the-job training, work experience, senior citizen, 41.26 youth, or unemployment relief program where the training or work 41.27 experience is not provided as a part of, or for, future 41.28 permanent public employment; 41.29 (22) independent contractors and the employees of 41.30 independent contractors; and 41.31 (23) reemployed annuitants of the association during the 41.32 course of that reemployment. 41.33 Sec. 3. Minnesota Statutes 2001 Supplement, section 41.34 353.01, subdivision 11b, is amended to read: 41.35 Subd. 11b. [TERMINATION OF MEMBERSHIP.] (a) "Termination 41.36 of membership" means the conclusion of membership in the 42.1 association and occurs: 42.2 (1) upon termination of public service under subdivision 42.3 11a; 42.4 (2) when a member does not return to work within 30 days of 42.5 the expiration of an authorized temporary layoff under 42.6 subdivision 12 or an authorized leave of absence under 42.7 subdivision 31 as evidenced by the appropriate record filed by 42.8 the governmental subdivision; or 42.9 (3) when a person files a written election to discontinue 42.10 employee deductions under section 353.27, subdivision 7, 42.11 paragraph (a), clause (1). 42.12 (b) The termination of membership must be reported to the 42.13 association by the governmental subdivision. 42.14 (c) If the employee subsequently returns to a position in 42.15 the same governmental subdivision, the employee shall not again 42.16 be required to earn a salary in excess of $425 per month to 42.17 qualify for membership, unless the employee has taken a refund 42.18 of accumulated employee deduction plus interest under section 42.19 353.34, subdivision 1. 42.20 Sec. 4. Minnesota Statutes 2001 Supplement, section 42.21 353.01, subdivision 16, is amended to read: 42.22 Subd. 16. [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 42.23 "Allowable service" means: 42.24 (1) service during years of actual membership in the course 42.25 of which employee contributions were made, periods covered by 42.26 payments in lieu of salary deductions under section 353.35; 42.27 (2) service in years during which the public employee was 42.28 not a member but for which the member later elected, while a 42.29 member, to obtain credit by making payments to the fund as 42.30 permitted by any law then in effect; 42.31 (3) a period of authorized leave of absence with pay from 42.32 which deductions for employee contributions are made, deposited, 42.33 and credited to the fund; 42.34 (4) a period of authorized personal, parental, or medical 42.35 leave of absence without pay, including a leave of absence 42.36 covered under the federal Family Medical Leave Act, that does 43.1 not exceed one year, and during or for which a member obtained 43.2full or fractionalservice credit for each month in the leave 43.3 period by payments to the fund made in place of salary 43.4 deductions. The payments must be made in an amount or amounts 43.5 based on the member's average salary on which deductions were 43.6 paid for the last six months of public service, or for that 43.7 portion of the last six months while the member was in public 43.8 service, to apply to the period in either case that immediately 43.9 precedes the commencement of the leave of absence. If the 43.10 employee elects to pay the employee contributions for the period 43.11 of any authorized personal, parental, or medical leave of 43.12 absence without pay, or for any portion of the leave, the 43.13 employee shall also, as a condition to the exercise of the 43.14 election, pay to the fund an amount equivalent to the required 43.15 employer and the additional employer contributions, if any, for 43.16 the employee. The payment must be made within one year from the 43.17 expiration of the leave of absence or within 20 days after 43.18 termination of public service under subdivision 11a, whichever 43.19 is earlier. The employer,ifby appropriate action of its 43.20 governing body,which is made a part of its official records,43.21 and which is adopted before the date of the first payment of the 43.22 employee contribution, may certify to the association in writing 43.23 its commitment to pay the employer and additional employer 43.24 contributions from the proceeds of a tax levy made under section 43.25 353.28. Payments under this paragraph must include interest at 43.26 an annual rate of 8.5 percent compounded annually from the date 43.27 of the termination of the leave of absence to the date payment 43.28 is made. An employee shall return to public service and render 43.29 a minimum of three months of allowable service in order to be 43.30 eligible to pay employee and employer contributions for a 43.31 subsequent authorized leave of absence without pay. Upon 43.32 payment, the employee must be granted allowable service credit 43.33 forfull calendar months or fractions of a month duringthe 43.34leavepurchased periodas described in paragraph (d), clauses (1)43.35and (2), based on the salary or the compensated hours used in43.36computing the payment amount; 44.1 (5) a periodic, repetitive leave that is offered to all 44.2 employees of a governmental subdivision. The leave program may 44.3 not exceed 208 hours per annual normal work cycle as certified 44.4 to the association by the employer. A participating member 44.5 obtains service credit by making employee contributions in an 44.6 amount or amounts based on the member's average salary that 44.7 would have been paid if the leave had not been taken. The 44.8 employer shall pay the employer and additional employer 44.9 contributions on behalf of the participating member. The 44.10 employee and the employer are responsible to pay interest on 44.11 their respective shares at the rate of 8.5 percent a year, 44.12 compounded annually, from the end of the normal cycle until full 44.13 payment is made. An employer shall also make the employer and 44.14 additional employer contributions, plus 8.5 percent interest, 44.15 compounded annually, on behalf of an employee who makes employee 44.16 contributions but terminates public service. The employee 44.17 contributions must be made within one year after the end of the 44.18 annual normal working cycle or within 20 days after termination 44.19 of public service, whichever is sooner. The association shall 44.20 prescribe the manner and forms to be used by a governmental 44.21 subdivision in administering a periodic, repetitive leave. Upon 44.22 payment, the member must be granted allowable service credit for 44.23full calendar months or fractions of a month duringtheleave44.24 purchased periodas described in paragraph (d), clauses (1) and44.25(2), based on the salary or the compensated hours used in44.26computing the payment amount; 44.27 (6) an authorized temporary layoff under subdivision 12.44.28For temporary layoffs that begin before January 1, 2002,44.29allowable service credit is, limited to three months allowable 44.30 service per authorized temporary layoff in one calendar year. 44.31For temporary layoffs that begin on or after January 1, 2002,44.32allowable service credit for the calendar month in which the44.33member does not receive salary due to the layoff must be44.34determined using the following formula:44.35(i) members who earned one month of allowable service44.36credit for each of the nine calendar months of compensated45.1employment with the governmental subdivision authorizing the45.2layoff that immediately preceded the layoff shall receive one45.3month of allowable service credit, limited to three months of45.4allowable service credit per year, for each month of the45.5temporary layoff; or45.6(ii) members who earned less than nine months of allowable45.7service credit in the year of compensated employment with the45.8governmental subdivision authorizing the layoff that immediately45.9preceded the layoff shall receive allowable service credit on a45.10fractional basis for each month of the authorized layoff,45.11limited to three months of allowable service credit, determined45.12by dividing the total number of months of service credit earned45.13for the compensated employment by nine and multiplying the45.14resulting number by the total number of months in the layoff45.15period that are not compensatedAn employee who has received the 45.16 maximum service credit allowed for an authorized temporary 45.17 layoff must return to public service and must receive a minimum 45.18 of three months of allowable service subsequent to the layoff in 45.19 order to receive allowable service for a subsequent authorized 45.20 temporary layoff; or 45.21 (7) a period during which a member is on an authorized 45.22 leave of absence to enter military service in the armed forces 45.23 of the United States, provided thatif the member returns to 45.24 public service upon discharge from military service under 45.25 section 192.262 and pays into the fund employee contributions 45.26 based upon the employee's salary at the date of return from 45.27 military service. Payment must be made within a period that is 45.28 three times the length of the military leave period, or within 45.29 five years of the date of discharge from the military service, 45.30 whichever is less. Payment cannot be accepted following 20 days 45.31 after termination of public service under subdivision 11a. The 45.32 amount of these contributions must be in accord with the 45.33 contribution rates and salary limitations, if any, in effect 45.34 during the leave, plus interest at an annual rate of 8.5 percent 45.35 compounded annually from the date of return to public service to 45.36 the date payment is made. Thematchingcorresponding employer 46.1 contribution, and additional employer contributionunder section46.2353.27, subdivisions 3 and 3a, if applicable, must be paid by 46.3 the governmental subdivision employing the member upon the 46.4 person's return to public service if the member makes the 46.5 employee contributions. The governmental subdivision involved 46.6 may appropriate money for those payments. A member may not 46.7 receive credit for a voluntary extension of military service at 46.8 the instance of the member beyond the initial period of 46.9 enlistment, induction, or call to active duty. Upon payment, 46.10 the employee must be granted allowable service credit forfull46.11calendar months or fractions of a month duringtheleave46.12 purchased periodas described in paragraph (d), clauses (1) and46.13(2), based on the salary or compensated hours used in computing46.14the payment amount. 46.15 (b) For calculating benefits under sections 353.30, 353.31, 46.16 353.32, and 353.33 for state officers and employees displaced by 46.17 the Community Corrections Act, chapter 401, and transferred into 46.18 county service under section 401.04, "allowable service" 46.19 means the combined years of allowable service as defined in 46.20 paragraph (a), clauses (1) to (6), and section 352.01, 46.21 subdivision 11. 46.22 (c) For a public employee who has prior service covered by 46.23 a local police or firefighters relief association that has 46.24 consolidated with the public employees retirement association or 46.25 to which section 353.665 applies, and who has elected the type 46.26 of benefit coverage provided by the public employees police and 46.27 fire fund either under section 353A.08 following the 46.28 consolidation or under section 353.665, subdivision 4, 46.29 "applicable service" is a period of service credited by the 46.30 local police or firefighters relief association as of the 46.31 effective date of the consolidation based on law and on bylaw 46.32 provisions governing the relief association on the date of the 46.33 initiation of the consolidation procedure. 46.34 (d)For persons who, after January 1, 2002, either first46.35become members or terminated membership under subdivision 11b,46.36and again become members, of the public employees retirement47.1plan, the public employees police and fire plan under this47.2chapter, or the local government correctional employee47.3retirement plan under chapter 353E, whichever applies,47.4"allowable service" means credit for compensated hours from47.5which deductions are made, or for which payments are made in47.6lieu of salary deductions as provided under this subdivision,47.7and which are deposited and credited in the fund as provided in47.8section 353.27, determined as follows:47.9(1) one month of allowable service credit for each month47.10during which the employee has received salary for 80 or more47.11compensated hours; or47.12(2) a fraction of one month of allowable service for each47.13month for which the employee has received salary for less than47.1480 compensated hours equal to the percentage relationship that47.15the number of compensated hours bear to 80 hours.47.16(e) Elected officials and other public employees who are47.17compensated solely on an annual basis shall be granted a full47.18year of credit for each year for which compensation is earned.47.19(f) Allowable service that is determined and credited on a47.20fractional basis must be used only in calculating the amount of47.21benefits payable. In determining the length of service required47.22for vesting, a member shall be granted a month of service credit47.23for each month in which the member received compensation from47.24which employee contributions were deducted. For periods of47.25part-time service that are duplicated service credit, section47.26356.30, subdivision 1, paragraphs (g) and (h), govern.47.27(g)No member shall receive more than 12 months of 47.28 allowable service credit in a year either for vesting purposes 47.29 or for benefit calculation purposes. 47.30(h)(e) "Allowable service" also means a period purchased 47.31 under section 356.555. 47.32 Sec. 5. Minnesota Statutes 2000, section 353.01, is 47.33 amended by adding a subdivision to read: 47.34 Subd. 40. [REDUCED SALARY DURING PERIOD OF WORKERS' 47.35 COMPENSATION.] (a) A member who is receiving temporary workers' 47.36 compensation payments related to the member's service to the 48.1 public employer and who either is receiving a reduced salary 48.2 from the employer during that period or is receiving no salary 48.3 from the employer during that period is entitled to receive 48.4 allowable service and salary credit for the period of time that 48.5 the member is receiving the workers' compensation payments upon 48.6 making the payments specified in this subdivision. 48.7 (b) The differential salary amount is the difference 48.8 between the average rate of salary received by the member, if 48.9 any, during the period of time that the member is collecting 48.10 temporary workers' compensation payments and the average rate of 48.11 salary of the member on which contributions to the applicable 48.12 plan were made during the period of the last six months of 48.13 covered employment occurring immediately before beginning to 48.14 collect the temporary workers' compensation payments, applied to 48.15 the member's normal employment period, measured in hours or 48.16 otherwise, as applicable. 48.17 (c) To receive eligible service credit, the member shall 48.18 pay an amount equal to the applicable employee contribution rate 48.19 under section 353.27, subdivision 2; 353.65, subdivision 2; or 48.20 353E.03, subdivision 1, as applicable, multiplied by the 48.21 differential salary amount; plus an employer equivalent payment 48.22 equal to the applicable employer contribution rate in section 48.23 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, 48.24 subdivision 2, as applicable, multiplied by the differential 48.25 salary amount; plus, if applicable, an equivalent employer 48.26 additional amount equal to the additional employer contribution 48.27 rate in section 353.27, subdivision 3a, multiplied by the 48.28 differential salary amount. 48.29 (d) The employer may, by appropriate action of its 48.30 governing body and documented in its official records, pay the 48.31 employer equivalent contributions and, as applicable, the 48.32 equivalent employer additional contributions on behalf of the 48.33 member. 48.34 (e) Payment under this subdivision must include interest on 48.35 the contribution amount or amounts, whichever applies at an 8.5 48.36 percent annual rate prorated for applicable months from the date 49.1 on which the temporary workers' compensation payments terminate 49.2 to the date on which the payment or payments are received by the 49.3 executive director. Payment under this subdivision must be 49.4 completed within one year after the termination of the temporary 49.5 workers' compensation payments to the member, or within 20 days 49.6 after termination of public service under subdivision 11a, 49.7 whichever is earlier. 49.8 Sec. 6. Minnesota Statutes 2001 Supplement, section 49.9 353.27, subdivision 4, is amended to read: 49.10 Subd. 4. [EMPLOYER REPORTING REQUIREMENTS; CONTRIBUTIONS; 49.11 MEMBER STATUS.] (a) A representative authorized by the head of 49.12 each department shall deduct employee contributions from the 49.13 salary of each employee who qualifies for membership under this 49.14 chapter and remit payment in a manner prescribed by the 49.15 executive director for the aggregate amount of the employee 49.16 contributions, the employer contributions and the additional 49.17 employer contributions to be received within 14 calendar days. 49.18 The head of each department or the person's designee shall for 49.19 each pay period submit to the association a salary deduction 49.20 report in the format prescribed by the executive director. Data 49.21 required to be submitted as part of salary deduction reporting 49.22 must include, but are not limited to: 49.23 (1) the legal names and social security numbers of 49.24 employees who are members; 49.25 (2) the amount of each employee's salary deduction; 49.26 (3) the amount of salary from which each deduction was 49.27 made; 49.28 (4) the beginning and ending dates of the payroll period 49.29 covered and the date of actual payment; and 49.30 (5) adjustments or corrections covering past pay periods;49.31and49.32(6) the number of compensated hours of each employee during49.33the payroll period. 49.34 (b) Employers must furnish the data required for enrollment 49.35 for each new employee who qualifies for membership in the format 49.36 prescribed by the executive director. The required enrollment 50.1 data on new employees must be submitted to the association prior 50.2 to or concurrent with the submission of the initial employee 50.3 salary deduction. The employer shall also report to the 50.4 association all member employment status changes, such as leaves 50.5 of absence, terminations, and death, and shall report the 50.6 effective dates of those changes, on an ongoing basis for the 50.7 payroll cycle in which they occur. The employer shall furnish 50.8 data, forms, and reports as may be required by the executive 50.9 director for proper administration of the retirement system. 50.10 Before implementing new or different computerized reporting 50.11 requirements, the executive director shall give appropriate 50.12 advance notice to governmental subdivisions to allow time for 50.13 system modifications. 50.14 (c) Notwithstanding paragraph (a), the association may 50.15 provide for less frequent reporting and payments for small 50.16 employers. 50.17 Sec. 7. Minnesota Statutes 2001 Supplement, section 50.18 353.27, subdivision 11, is amended to read: 50.19 Subd. 11. [EMPLOYERS; REQUIRED TO FURNISH REQUESTED 50.20 INFORMATION.] All governmental subdivisions shall furnish 50.21 promptly such other information relative to the employment 50.22 status of all employees or former employees, including but not 50.23 limited to payroll abstracts pertaining to all past and present 50.24 employees, as may be requested by the association or its 50.25 executive director, including schedules of salaries applicable 50.26 to various categories of employment, and the number of actual or50.27estimated compensated hours for employees. In the event payroll 50.28 abstract records have been lost or destroyed, for whatever 50.29 reason or in whatever manner, so that such schedules of salaries 50.30 cannot be furnished therefrom, the employing governmental 50.31 subdivision, in lieu thereof, shall furnish to the association 50.32 an estimate of the earnings of any employee or former employee 50.33 for any period as may be requested by the association or its 50.34 executive director. Should the association receive such 50.35 schedules of estimated earnings, the executive director is 50.36 hereby authorized to use the same as a basis for making whatever 51.1 computations might be necessary for determining obligations of 51.2 the employee and employer to the retirement fund. If estimates 51.3 are not furnished by the employer pursuant to the request of the 51.4 association or its executive director, the association may 51.5 estimate the obligations of the employee and employer to the 51.6 retirement fund based upon such records as are in its 51.7 possession. Where payroll abstracts have been lost or 51.8 destroyed, the governmental agency need not furnish any 51.9 information pertaining to employment prior to July 1, 1963. The 51.10 association shall make no estimate of any obligation of any 51.11 employee, former employee, or employer covering employment prior 51.12 to July 1, 1963. 51.13 Sec. 8. Minnesota Statutes 2000, section 353.64, 51.14 subdivision 7a, is amended to read: 51.15 Subd. 7a. [PENSION COVERAGE FOR CERTAIN METROPOLITAN 51.16 TRANSIT POLICE OFFICERS.] A person who is employed as a 51.17full-timepolice officer on or after the first day of the first 51.18 payroll period after July 1, 1993, by the metropolitan council 51.19 and who is not eligible for coverage under the agreement with 51.20 the Secretary of the federal Department of Health and Human 51.21 Services making the provisions of the federal Old Age, 51.22 Survivors, and Disability Insurance Act because the person's 51.23 position is excluded from application under United States Code, 51.24 sections 418(d)(5)(A) and 418(d)(8)(D), and under section 51.25 355.07, is a member of the public employees police and fire fund 51.26 and is considered to be a police officer within the meaning of 51.27 this section. The metropolitan council shall deduct the 51.28 employee contribution from the salary of eachfull-timepolice 51.29 officer as required by section 353.65, subdivision 2, shall make 51.30 the employer contribution for eachfull-timepolice officer as 51.31 required by section 353.65, subdivision 3, and shall meet the 51.32 employer recording and reporting requirements in section 353.65, 51.33 subdivision 4. 51.34 Sec. 9. [REPEALER.] 51.35 Minnesota Statutes 2001 Supplement, section 353.01, 51.36 subdivision 39, is repealed. 52.1 Sec. 10. [APPLICATION.] 52.2 Section 8 applies in the counties of Anoka, Carver, Dakota, 52.3 Hennepin, Ramsey, Scott, and Washington. 52.4 Sec. 11. [EFFECTIVE DATE.] 52.5 (a) Except as provided in paragraphs (c) and (d), sections 52.6 1, 2, and 3 are effective on July 1, 2002. 52.7 (b) Sections 4, 6, 7, and 9 are effective retroactively 52.8 from January 1, 2002. 52.9 (c) The amendment to Minnesota Statutes, section 353.01, 52.10 subdivision 2b, clause (12), in section 2, is effective on the 52.11 day after the date on which the governing body of Hennepin 52.12 county and the chief clerical officer of the county complete in 52.13 a timely manner their compliance with Minnesota Statutes, 52.14 section 645.021, subdivisions 2 and 3. 52.15 (d) The amendments to Minnesota Statutes, section 353.01, 52.16 subdivision 2b, clauses (8) and (20), are effective 52.17 retroactively from January 1, 2002. 52.18 (e) Section 5 is effective on the day following final 52.19 enactment. 52.20 (f) Section 8 is effective July 1, 2002, and applies to 52.21 salaries earned by part-time metropolitan transit police 52.22 officers after June 30, 2002. 52.23 ARTICLE 4 52.24 PERA LOCAL GOVERNMENT CORRECTIONAL 52.25 RETIREMENT PLAN MODIFICATIONS 52.26 Section 1. Minnesota Statutes 2000, section 353E.02, 52.27 subdivision 1, is amended to read: 52.28 Subdivision 1. [RETIREMENT COVERAGE.]Local government52.29correctional service employees areThe members of the local 52.30 government correctional service retirement plan established by 52.31 this chapter are: 52.32 (1) local government correctional service employees as 52.33 defined in subdivision 2; and 52.34 (2) medical center protection officers as defined in 52.35 subdivision 2a. 52.36 Sec. 2. Minnesota Statutes 2000, section 353E.02, is 53.1 amended by adding a subdivision to read: 53.2 Subd. 2a. [MEDICAL CENTER PROTECTION OFFICER.] (a) A 53.3 medical center protection officer, for purposes of subdivision 53.4 1, is a person whom the employer certifies: 53.5 (1) is employed by the Hennepin county medical center as a 53.6 protection officer; 53.7 (2) is directly responsible for the direct security of the 53.8 medical center; 53.9 (3) is expected to respond to any incidents within the 53.10 medical center as part of the person's regular employment duties 53.11 and is trained to do so; and 53.12 (4) is a "public employee" as defined in section 353.01, 53.13 but is not a member of the public employees police and fire plan. 53.14 (b) The certification required under paragraph (a) must be 53.15 made in writing on a form prescribed by the executive director 53.16 of the public employees retirement association. 53.17 Sec. 3. Minnesota Statutes 2000, section 353E.03, is 53.18 amended to read: 53.19 353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.] 53.20 Subdivision 1. [MEMBER CONTRIBUTIONS.] A member of the 53.21 local government correctional serviceemployeeretirement plan 53.22 shall make an employee contribution in an amount equal to 6.01 53.23 percent of salary. 53.24 Subd. 2. [EMPLOYER CONTRIBUTIONS.] The employer shall 53.25 contribute for a member of the local government correctional 53.26 serviceemployeeretirement plan an amount equal to 9.02 percent 53.27 of salary. 53.28 Sec. 4. Laws 2000, chapter 461, article 10, section 3, as 53.29 amended by Laws 2001, First Special Session chapter 10, article 53.30 3, section 28, is amended to read: 53.31 Sec. 3. [EFFECTIVE DATE.] 53.32 Section 1 is effective on the day following final enactment. 53.33Section 2 is effective on the first day of the first full pay53.34period beginning after January 1, 2003.53.35 Sec. 5. [REPEALER.] 53.36 Laws 2000, chapter 461, article 10, section 2, is repealed. 54.1 Sec. 6. [EFFECTIVE DATE.] 54.2 (a) Sections 1, 2, and 3 are effective on July 1, 2002. 54.3 (b) Section 4 is effective on the day following final 54.4 enactment. 54.5 (c) Section 5 is effective on August 1, 2002. 54.6 ARTICLE 5 54.7 PENSION COVERAGE FOR 54.8 PRIVATIZED PUBLIC HOSPITALS 54.9 Section 1. Minnesota Statutes 2000, section 353F.02, 54.10 subdivision 4, is amended to read: 54.11 Subd. 4. [MEDICAL FACILITY.] "Medical facility" means: 54.12 (1) the Glencoe area health center; 54.13 (2) the Luverne public hospital;and54.14 (3) the Waconia-Ridgeview medical center.; and 54.15 (4) the Kanabec hospital. 54.16 Sec. 2. [EFFECTIVE DATE.] 54.17 Section 1 is effective upon the latter of: 54.18 (1) the day after the governing body of Kanabec county and 54.19 its chief clerical officer timely complete their compliance with 54.20 Minnesota Statutes, section 645.021, subdivisions 2 and 3; and 54.21 (2) the first day of the month next following certification 54.22 by the executive director of the public employees retirement 54.23 association that the actuarial accrued liability of the special 54.24 benefit coverage proposed for extension to the privatized 54.25 Kanabec hospital employees under section 1 does not exceed the 54.26 actuarial gain otherwise to be accrued by the public employees 54.27 retirement association, as calculated by the consulting actuary 54.28 retained by the legislative commission on pensions and 54.29 retirement. The cost of the actuarial calculations must be 54.30 borne by the Kanabec hospital. 54.31 ARTICLE 6 54.32 CLOSED CHARTER SCHOOL 54.33 UNPAID RETIREMENT CONTRIBUTIONS 54.34 Section 1. Minnesota Statutes 2001 Supplement, section 54.35 354.05, subdivision 2, is amended to read: 54.36 Subd. 2. [TEACHER.] (a) "Teacher" means: 55.1 (1) a person who renders service as a teacher, supervisor, 55.2 principal, superintendent, librarian, nurse, counselor, social 55.3 worker, therapist, or psychologist inthea publicschools55.4 school of the state located outside of the corporate limits of 55.5the citiesa city of the first class, or in any charter school, 55.6 irrespective of the location of the school, or in any 55.7 charitable, penal, or correctional institutions of a 55.8 governmental subdivision, or who is engaged in educational 55.9 administration in connection with the state public school 55.10 system, but excluding the University of Minnesota, whether the 55.11 position be a public office or an employment, not including 55.12 members or officers of any general governing or managing board 55.13 or body; 55.14 (2) an employee of the teachers retirement association; 55.15 (3) a person who renders teaching service on a part-time 55.16 basis and who also renders other services for a single employing 55.17 unit. A person whose teaching service comprises at least 50 55.18 percent of the combined employment salary is a member of the 55.19 association for all services with the single employing unit. If 55.20 the person's teaching service comprises less than 50 percent of 55.21 the combined employment salary, the executive director must 55.22 determine whether all or none of the combined service is covered 55.23 by the association; or 55.24 (4) a person who is not covered by the plans established 55.25 under chapter 352D, 354A, or 354B and who is employed by the 55.26 board of trustees of the Minnesota state colleges and 55.27 universities system in an unclassified position as: 55.28 (i) a president, vice-president, or dean; 55.29 (ii) a manager or a professional in an academic or an 55.30 academic support program other than specified in item (i); 55.31 (iii) an administrative or a service support faculty 55.32 position; or 55.33 (iv) a teacher or a research assistant. 55.34 (b)Teacher"Teacher" does not mean: 55.35 (1) a person who works for a school or institution as an 55.36 independent contractor as defined by the Internal Revenue 56.1 Service; 56.2 (2) a person employed in subsidized on-the-job training, 56.3 work experience or public service employment as an enrollee 56.4 under the federal Comprehensive Employment and Training Act from 56.5 and after March 30, 1978, unless the person has, as of the later 56.6 of March 30, 1978, or the date of employment, sufficient service 56.7 credit in the retirement association to meet the minimum vesting 56.8 requirements for a deferred retirement annuity, or the employer 56.9 agrees in writing on forms prescribed by the executive director 56.10 to make the required employer contributions, including any 56.11 employer additional contributions, on account of that person 56.12 from revenue sources other than funds provided under the federal 56.13 Comprehensive Training and Employment Act, or the person agrees 56.14 in writing on forms prescribed by the executive director to make 56.15 the required employer contribution in addition to the required 56.16 employee contribution; 56.17 (3) a person holding a part-time adult supplementary 56.18 technical college license who renders part-time teaching service 56.19 or a customized trainer as defined by the Minnesota state 56.20 colleges and universities system in a technical college if (i) 56.21 the service is incidental to the regular nonteaching occupation 56.22 of the person; and (ii) the applicable technical college 56.23 stipulates annually in advance that the part-time teaching 56.24 service or customized training service will not exceed 300 hours 56.25 in a fiscal year and retains the stipulation in its records; and 56.26 (iii) the part-time teaching service or customized training 56.27 service actually does not exceed 300 hours in a fiscal year; or 56.28 (4) a person exempt from licensure under section 122A.30. 56.29 Sec. 2. Minnesota Statutes 2000, section 354A.011, 56.30 subdivision 27, is amended to read: 56.31 Subd. 27. [TEACHER.] (a) "Teacher" means any person who 56.32 renders serviceinfor a public school district, other than a 56.33 charter school, located in the corporate limits of one of the 56.34 cities of the first class which was so classified on January 1, 56.35 1979, as any of the following: 56.36(a)(1) a full-time employee in a position for which a 57.1 valid license from the state department of children, families, 57.2 and learning is required; 57.3(b)(2) an employee of the teachers retirement fund 57.4 association located in the city of the first class unless the 57.5 employee has exercised the option pursuant to Laws 1955, chapter 57.6 10, section 1, to retain membership in the Minneapolis employees 57.7 retirement fund established pursuant to chapter 422A; 57.8(c)(3) a part-time employee in a position for which a 57.9 valid license from the state department of children, families, 57.10 and learning is required; or 57.11(d)(4) a part-time employee in a position for which a 57.12 valid license from the state department of children, families, 57.13 and learning is required who also renders other nonteaching 57.14 services for the school district, unless the board of trustees 57.15 of the teachers retirement fund association determines that the 57.16 combined employment is on the whole so substantially dissimilar 57.17 to teaching service that the serviceshallmay not be covered by 57.18 the association. 57.19 (b) The termshalldoes not mean any person who renders 57.20 service in the school district as any of the following: 57.21 (1) an independent contractor or the employee of an 57.22 independent contractor; 57.23 (2) an employee who is a full-time teacher covered by the 57.24 teachers retirement association or by another teachers 57.25 retirement fund association established pursuant to this chapter 57.26 or chapter 354; 57.27 (3) an employee exempt from licensure pursuant to section 57.28 122A.30; 57.29 (4) an employee who is a teacher in a technical college 57.30 located in a city of the first class unless the person elects 57.31 coverage by the applicable first class city teacher retirement 57.32 fund association under section 354B.21, subdivision 2;or57.33 (5) a teacher employed by a charter school, irrespective of 57.34 the location of the school; or 57.35 (6) an employee who is a part-time teacher in a technical 57.36 college in a city of the first class and who has elected 58.1 coverage by the applicable first class city teacher retirement 58.2 fund association under section 354B.21, subdivision 2, but (i) 58.3 the teaching service is incidental to the regular nonteaching 58.4 occupation of the person; (ii) the applicable technical college 58.5 stipulates annually in advance that the part-time teaching 58.6 service will not exceed 300 hours in a fiscal year; and (iii) 58.7 the part-time teaching actually does not exceed 300 hours in the 58.8 fiscal year to which the certification applies. 58.9 Sec. 3. [STATE PAYMENT OF CERTAIN UNPAID CHARTER SCHOOL 58.10 RETIREMENT CONTRIBUTIONS.] 58.11 Subdivision 1. [UNPAID CONTRIBUTIONS.] (a) The state of 58.12 Minnesota shall make any unpaid employee, employer, and employer 58.13 additional contributions to the applicable retirement 58.14 association for teaching or other service in a designated 58.15 charter school which closed before April 1, 2002, without having 58.16 paid the required contributions to the retirement association. 58.17 (b) By June 1, 2002, the chief administrative officer of 58.18 the retirement association shall certify to the commissioner of 58.19 children, families, and learning the amount of accrued 58.20 contributions, plus applicable interest, which were not paid by 58.21 each designated charter school before its closure. On July 1, 58.22 2002, the commissioner of children, families, and learning shall 58.23 pay the amounts certified from the state total building lease 58.24 aid otherwise payable under Minnesota Statutes, section 124D.11, 58.25 subdivision 4a, to the affected retirement associations. The 58.26 forecasted amount of charter school lease aid must not be 58.27 adjusted to reflect the amount remitted under this section; 58.28 rather, charter school lease aid must be prorated by the amount 58.29 remitted. The commissioner shall remit directly to the 58.30 retirement association the amounts certified under this 58.31 section. The applicable retirement association shall credit 58.32 employee contribution payments to the applicable member accounts 58.33 and shall credit to the applicable members allowable and formula 58.34 service and covered salary for the period when the teaching or 58.35 other service was actually performed in the charter school. 58.36 State payments representing unpaid employee contributions must 59.1 be considered accumulated employee or member deductions for 59.2 purposes of Minnesota Statutes, section 353.34; 354.49; or 59.3 354A.37. 59.4 Subd. 2. [COVERED RETIREMENT ASSOCIATIONS.] This section 59.5 applies to the following public retirement associations 59.6 providing retirement coverage for employees in charter schools: 59.7 (1) the teachers retirement association; 59.8 (2) the Minneapolis teachers retirement fund association; 59.9 (3) the St. Paul teachers retirement fund association; 59.10 (4) the Duluth teachers retirement fund association; and 59.11 (5) the public employees retirement association. 59.12 Subd. 3. [DESIGNATED CLOSED CHARTER SCHOOLS.] This section 59.13 applies to the Frederick Douglass charter school and any other 59.14 charter school that is determined by the commissioner of 59.15 children, families, and learning to have closed before April 1, 59.16 2002. 59.17 Sec. 4. [CONTINUING RECOVERY AUTHORITY.] 59.18 Nothing in section 3 relieves the sponsor of a closed 59.19 charter school and the operator of a closed charter school from 59.20 any financial responsibility that those parties may have to pay 59.21 unpaid employee, employer, or employer additional contributions 59.22 to the applicable public retirement plans. The commissioner of 59.23 revenue shall undertake all reasonable efforts to recover these 59.24 amounts. Any recovered amounts must be deposited in the general 59.25 fund and are appropriated to the department of children, 59.26 families, and learning to offset the payment of unpaid 59.27 contributions under section 3. 59.28 Sec. 5. [EFFECTIVE DATE.] 59.29 (a) Sections 1 and 2 are effective on July 1, 2002. 59.30 (b) Sections 3 and 4 are effective on the day following 59.31 final enactment. 59.32 ARTICLE 7 59.33 TEACHERS RETIREMENT ASSOCIATION AND 59.34 DULUTH TEACHERS RETIREMENT FUND ASSOCIATION 59.35 EXTENSION OF RULE OF 90 BENEFIT TIER 59.36 Section 1. Minnesota Statutes 2000, section 354.05, 60.1 subdivision 38, is amended to read: 60.2 Subd. 38. [NORMAL RETIREMENT AGE.] "Normal retirement age" 60.4 means age 65for a person who first became a member of the60.5association or a member of a pension fund listed in section60.6356.30, subdivision 3, before July 1, 1989. For a person who60.7first becomes a member of the association after June 30, 1989,60.8normal retirement age means the higher of age 65 or "retirement60.9age," as defined in United States Code, title 42, section60.10416(l), as amended, but not to exceed age 66. 60.11 Sec. 2. Minnesota Statutes 2000, section 354.44, 60.12 subdivision 6, is amended to read: 60.13 Subd. 6. [COMPUTATION OF FORMULA PROGRAM RETIREMENT 60.14 ANNUITY.](1)(a) The formula retirement annuity must be 60.15 computed in accordance with the applicable provisions of the 60.16 formulas stated inclause (2)paragraph (c) or(4)(e) on the 60.17 basis of each member's average salary for the period of the 60.18 member's formula service credit. 60.19 (b) For all years of formula service credit, "average 60.20 salary," for the purpose of determining the member's retirement 60.21 annuity, means the average salary upon which contributions were 60.22 made and upon which payments were made to increase the salary 60.23 limitation provided in Minnesota Statutes 1971, section 354.511, 60.24 for the highest five successive years of formula service credit 60.25 provided, however, that such "average salary"shallmay not 60.26 include any more than the equivalent of 60 monthly salary 60.27 payments. Average salary must be based upon all years of 60.28 formula service credit if this service credit is less than five 60.29 years. 60.30(2)(c) Thisclauseparagraph, in conjunction withclause60.31(3)paragraph (d), appliesto a person who first became a member60.32of the association or a member of a pension fund listed in60.33section 356.30, subdivision 3, before July 1, 1989, 60.34 unlessclause (4)paragraph (e), in conjunction withclause60.35(5)paragraph (f), produces a higher annuity amount, in which 60.36 caseclause (4)paragraph (f) applies. The average salary as 60.37 defined inclause (1)paragraph (b), multiplied by the following 61.1 percentages per year of formula service creditshall determine61.2 determines the amount of the annuity to which the member 61.3 qualifying therefor is entitled: 61.4 Coordinated Member Basic Member 61.5 Each year of service the percent the percent 61.6 during first ten specified in specified in 61.7 section 356.19, section 356.19, 61.8 subdivision 1, subdivision 3, 61.9 per year per year 61.10 Each year of service the percent the percent 61.11 thereafter specified in specified in 61.12 section 356.19, section 356.19, 61.13 subdivision 2, subdivision 4, 61.14 per year per year 61.15(3)(i)(d)(1) Thisclauseparagraph appliesonly to a61.16person who first became a member of the association or a member61.17of a pension fund listed in section 356.30, subdivision 3,61.18before July 1, 1989, and whoseif the annuity is higher when 61.19 calculated underclause (2)paragraph (c), in conjunction with 61.20 thisclauseparagraph than when calculated underclause61.21(4)paragraph (e), in conjunction withclause (5)paragraph (f). 61.22(ii)(2) Where any member retiresprior tobefore the 61.23 normal retirement age under a formula annuity, the membershall61.24 must be paid a retirement annuity in an amount equal to the 61.25 normal annuity provided inclause (2)paragraph (c) reduced by 61.26 one-quarter of one percent for each month that the member is 61.27 under normal retirement age at the time of retirement except 61.28 that for any member who has 30 or more years of allowable 61.29 service credit, the reductionshallmust be applied only for 61.30 each month that the member is under age 62. 61.31(iii)(3) Any member whose attained age plus credited 61.32 allowable service totals 90 years is entitled, upon application, 61.33 to a retirement annuity in an amount equal to the normal annuity 61.34 provided inclause (2)paragraph (c), without any reduction by 61.35 reason of early retirement. 61.36(4)(e) Thisclauseparagraph appliesto a member who has62.1become at least 55 years old and first became a member of the62.2association after June 30, 1989, andtoany othera member who 62.3has becomeis at least 55 years old and whose annuity amount 62.4 when calculated under thisclauseparagraph and in conjunction 62.5 withclause (5),paragraph (f) is higher than it is when 62.6 calculated underclause (2)paragraph (c), in conjunction 62.7 withclause (3)paragraph (d). The average salary, as defined 62.8 inclause (1)paragraph (b), multiplied by the percent specified 62.9 by section 356.19, subdivision 4, for each year of service for a 62.10 basic member and by the percent specified in section 356.19, 62.11 subdivision 2, for each year of service for a coordinated member 62.12shall determinedetermines the amount of the retirement annuity 62.13 to which the member is entitled. 62.14(5)(f) This clause applies to a person whohas becomeis 62.15 at least 55 years old andfirst becomes a member of the62.16association after June 30, 1989, and to any other member who has62.17become at least 55 years old andwhose annuity is higher when 62.18 calculated underclause (4)paragraph (e) in conjunction with 62.19 this clause than when calculated underclause (2)paragraph (c), 62.20 in conjunction withclause (3)paragraph (d). An employee who 62.21 retires under the formula annuity before the normal retirement 62.22 ageshallmust be paid the normal annuity provided inclause (4)62.23 paragraph (e) reduced so that the reduced annuity is the 62.24 actuarial equivalent of the annuity that would be payable to the 62.25 employee if the employee deferred receipt of the annuity and the 62.26 annuity amount were augmented at an annual rate of three percent 62.27 compounded annually from the day the annuity begins to accrue 62.28 until the normal retirement age. 62.29 Sec. 3. Minnesota Statutes 2000, section 354A.011, 62.30 subdivision 15a, is amended to read: 62.31 Subd. 15a. [NORMAL RETIREMENT AGE.] (a) "Normal retirement 62.32 age" means age 65 for a person who first became a member of the 62.33 coordinated program of the Minneapolis or St. Paul teachers 62.34 retirement fund associationor the new law coordinated program62.35of the Duluth teachers retirement fund associationor a member 62.36 of a pension fund listed in section 356.30, subdivision 3, 63.1 before July 1, 1989. 63.2 (b) For a member of the new law coordinated program of the 63.3 Duluth teachers retirement fund association, normal retirement 63.4 age means age 65. 63.5 (c) For a person who first became a member of the 63.6 coordinated program of the Minneapolis or St. Paul teachers 63.7 retirement fund associationor the new law coordinated program63.8of the Duluth teachers retirement fund associationafter June 63.9 30, 1989, normal retirement age means the higher of age 65 or 63.10 retirement age, as defined in United States Code, title 42, 63.11 section 416(l), as amended, but not to exceed age 66. 63.12 (d) For a person who is a member of the basic program of 63.13 the Minneapolis or St. Paul teachers retirement fund association 63.14 or the old law coordinated program of the Duluth teachers 63.15 retirement fund association, normal retirement age means the age 63.16 at which a teacher becomes eligible for a normal retirement 63.17 annuity computed upon meeting the age and service requirements 63.18 specified in the applicable provisions of the articles of 63.19 incorporation or bylaws of the respective teachers retirement 63.20 fund association. 63.21 Sec. 4. Minnesota Statutes 2000, section 354A.31, 63.22 subdivision 4a, is amended to read: 63.23 Subd. 4a. [COMPUTATION OF THE NORMAL COORDINATED 63.24 RETIREMENT ANNUITY; DULUTH FUND.] (a) This subdivision applies 63.25 to the new law coordinated program of the Duluth teachers 63.26 retirement fund association. 63.27 (b) The normal coordinated retirement annuity is an amount 63.28 equal to a retiring coordinated member's average salary 63.29 multiplied by the retirement annuity formula percentage. 63.30 Average salary for purposes of this section means an amount 63.31 equal to the average salary upon which contributions were made 63.32 for the highest five successive years of service credit, but may 63.33 not in any event include any more than the equivalent of 60 63.34 monthly salary payments. Average salary must be based upon all 63.35 years of service credit if this service credit is less than five 63.36 years. 64.1 (c) This paragraph, in conjunction with subdivision 6, 64.2 appliesto a person who first became a member or a member in a64.3pension fund listed in section 356.30, subdivision 3, before64.4July 1, 1989,unless paragraph (d), in conjunction with 64.5 subdivision 7, produces a higher annuity amount, in which case 64.6 paragraph (d) applies. The retirement annuity formula 64.7 percentage for purposes of this paragraph is the percent 64.8 specified in section 356.19, subdivision 1, per year for each 64.9 year of coordinated service for the first ten years and the 64.10 percent specified in section 356.19, subdivision 2, for each 64.11 subsequent year of coordinated service. 64.12 (d) This paragraph applies to a person who is at least 55 64.13 years old andwho first becomes a member after June 30, 1989,64.14and to any other member who is at least 55 years old andwhose 64.15 annuity amount, when calculated under this paragraph and in 64.16 conjunction with subdivision 7, is higher than it is when 64.17 calculated under paragraph (c) in conjunction with subdivision 64.18 6. The retirement annuity formula percentage for purposes of 64.19 this paragraph is the percent specified in section 356.19, 64.20 subdivision 2, for each year of coordinated service. 64.21 Sec. 5. Minnesota Statutes 2000, section 354A.31, 64.22 subdivision 5, is amended to read: 64.23 Subd. 5. [UNREDUCED NORMAL RETIREMENT ANNUITY.] (a) Upon 64.24 retirement at the normal retirement age with at least three 64.25 years of service credit, a coordinated membershall beof the 64.26 Minneapolis teachers retirement fund association or of the St. 64.27 Paul teachers retirement fund association is entitled to a 64.28 normal retirement annuity calculatedpursuant tounder 64.29 subdivision 4. 64.30 (b) Upon retirement at the normal retirement age with at 64.31 least three years of service credit, a member of the new law 64.32 coordinated program of the Duluth teachers retirement fund 64.33 association is entitled to a normal retirement annuity 64.34 calculated under subdivision 4a. 64.35 Sec. 6. Minnesota Statutes 2000, section 354A.31, 64.36 subdivision 6, is amended to read: 65.1 Subd. 6. [REDUCED RETIREMENT ANNUITY.] (a) This 65.2 subdivision applies only to a person who first became a 65.3 coordinated member of the Minneapolis teachers retirement fund 65.4 association or of the St. Paul teacher retirement fund 65.5 association or a member of a pension fund listed in section 65.6 356.30, subdivision 3, other than the Duluth teachers retirement 65.7 fund association before July 1, 1989, and whose annuity is 65.8 higher when calculated using the retirement annuity formula 65.9 percentage in subdivision 4, paragraph (b), in conjunction with 65.10 this subdivision than when calculated under subdivision 4, 65.11 paragraph (c), in conjunction with subdivision 7. 65.12(a)(1) Upon retirement at an age before the normal 65.13 retirement age with three years of service credit or prior to 65.14 age 62 with at least 30 years of service credit, a coordinated 65.15 member shall be entitled to a retirement annuity in an amount 65.16 equal to the normal retirement annuity calculated using the 65.17 retirement annuity formula percentage in subdivision 4, 65.18 paragraph (b), reduced by one-quarter of one percent for each 65.19 month that the coordinated member is under the normal retirement 65.20 age if the coordinated member has less than 30 years of service 65.21 credit or is under the age of 62 if the coordinated member has 65.22 at least 30 years of service credit. 65.23(b)(2) Any coordinated member whose attained age plus 65.24 credited allowable service totals 90 years is entitled, upon 65.25 application, to a retirement annuity in an amount equal to the 65.26 normal retirement annuity calculated using the retirement 65.27 annuity formula percentage in subdivision 4, paragraph (b), 65.28 without any reduction by reason of early retirement. 65.29 (b) This subdivision applies only to a person who is a 65.30 member of the new law coordinated program of the Duluth teachers 65.31 retirement fund association and whose annuity is higher when 65.32 calculated using the retirement annuity formula percentage in 65.33 subdivision 4a, paragraph (b), in conjunction with this 65.34 subdivision than when calculated under subdivision 4a, paragraph 65.35 (c), in conjunction with subdivision 7. 65.36 (1) Upon retirement at an age before the normal retirement 66.1 age with three years of service credit or before age 62 with at 66.2 least 30 years of service credit, a member of the new law 66.3 coordinated program of the Duluth teachers retirement fund 66.4 association is entitled to a retirement annuity in an amount 66.5 equal to the normal retirement annuity calculated using the 66.6 retirement annuity formula percentage in subdivision 4a, 66.7 paragraph (b), reduced by one-quarter of one percent for each 66.8 month that the member is under the normal retirement age if the 66.9 member has less than 30 years of service credit or is under the 66.10 age of 62 if the coordinated member has at least 30 years of 66.11 service credit. 66.12 (2) A new law coordinated program member of the Duluth 66.13 teachers retirement fund association whose attained age plus 66.14 credited allowable service totals 90 years is entitled, upon 66.15 application, to a retirement annuity in an amount equal to the 66.16 normal retirement annuity calculated using the retirement 66.17 annuity formula percentage in subdivision 4a, paragraph (b), 66.18 without any reduction by reason of early retirement. 66.19 Sec. 7. Minnesota Statutes 2000, section 354A.31, 66.20 subdivision 7, is amended to read: 66.21 Subd. 7. [ACTUARIAL REDUCTION FOR EARLY RETIREMENT.] This 66.22 subdivision applies to a person who has become at least 55 years 66.23 old and firstbecomesbecame a coordinated member of the 66.24 Minneapolis teachers retirement fund association or of the St. 66.25 Paul teachers retirement fund association after June 30, 66.26 1989, to a member of the new law coordinated program of the 66.27 Duluth teachers retirement fund association who has become at 66.28 least 55 years old, and to any other coordinated member who has 66.29 become at least 55 years old and whose annuity is higher when 66.30 calculated using the retirement annuity formula percentage in 66.31 subdivision 4, paragraph (c), or in subdivision 4a, paragraph 66.32 (c), whichever applies, in conjunction with this subdivision 66.33 than when calculated under subdivision 4, paragraph (b), or in 66.34 subdivision 4a, paragraph (b), whichever applies, in conjunction 66.35 with subdivision 6. A coordinated member who retires before the 66.36 full benefit age shall be paid the retirement annuity calculated 67.1 using the retirement annuity formula percentage in subdivision 67.2 4, paragraph (c), or in subdivision 4a, paragraph (c), whichever 67.3 applies, reduced so that the reduced annuity is the actuarial 67.4 equivalent of the annuity that would be payable to the member if 67.5 the member deferred receipt of the annuity and the annuity 67.6 amount were augmented at an annual rate of three percent 67.7 compounded annually from the day the annuity begins to accrue 67.8 until the normal retirement age. 67.9 Sec. 8. [356.83] [LIMITATION ON THE EXTENSION OF THE RULE 67.10 OF 90.] 67.11 (a) Notwithstanding any provision of law to the contrary, 67.12 the "rule of 90" may not be extended to any pension plan beyond 67.13 the teacher retirement association and the Duluth teachers 67.14 retirement fund association unless the most recent prior 67.15 actuarial valuation of the plan prepared under section 356.215 67.16 by the consulting actuary retained by the legislative commission 67.17 on pensions and retirement indicates that the total required 67.18 contributions of the plan exceed the total actuarial 67.19 requirements of the plan by an amount equal to or greater than 67.20 the actuarial cost of the "rule of 90" extension for that plan 67.21 as estimated by the commission-retained actuary based on that 67.22 valuation. 67.23 (b) Annually, as part of the review by the legislative 67.24 commission on pensions and retirement of the actuarial funded 67.25 condition of the various statewide and major local retirement 67.26 plans to which the "rule of 90" has been extended to post-June 67.27 30, 1989, hirees, if the commission finds that the total 67.28 required contributions of a plan to which the "rule of 90" has 67.29 been extended to post-June 30, 1989, hirees are less than the 67.30 total actuarial requirements of the plan as reported in the most 67.31 recent actuarial valuation of the plan under section 356.215, 67.32 the commission shall recommend in the form of proposed 67.33 legislation an increase in equal amounts in the member and 67.34 employer contribution rates of the plan sufficient to cause the 67.35 future total required contributions of the plan to equal the 67.36 total actuarial requirements of the plan as disclosed in the 68.1 applicable actuarial valuation. 68.2 Sec. 9. [EFFECTIVE DATE.] 68.3 Sections 1 through 8 are effective on July 1, 2002. 68.4 ARTICLE 8 68.5 TEACHER RETIREMENT PLANS 68.6 SERVICE CREDIT PURCHASE 68.7 DEADLINE EXTENSION 68.8 Section 1. Laws 1999, chapter 222, article 16, section 16, 68.9 is amended to read: 68.10 Sec. 16. [REPEALER.] 68.11 Sections 1 to 13 are repealed on May 16,20022003. 68.12 Sec. 2. Laws 2000, chapter 461, article 12, section 20, is 68.13 amended to read: 68.14 Sec. 20. [EFFECTIVE DATE.] 68.15 (a) Sections 4, 5, and 11 to 20 are effective on the day 68.16 following final enactment. 68.17 (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 68.18 following final enactment and apply retroactively to a faculty 68.19 member of the Lake Superior College who was granted an extended 68.20 leave of absence under article 19, section 4, of the united 68.21 technical college educators master agreement for the 1999-2000 68.22 academic year prior to March 20, 2000. 68.23 (c) Sections 5, 11, and 14, paragraph (c), expire on May 68.24 16,20022003. 68.25 Sec. 3. Laws 2001, First Special Session chapter 10, 68.26 article 6, section 21, is amended to read: 68.27 Sec. 21. [EXPIRATION DATE.] 68.28 (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 68.29 18, 19, and 20 expire May 16, 2003. 68.30 (b) Sections 9 and 15 expire May 16,20022003. 68.31 Sec. 4. [EFFECTIVE DATE.] 68.32 Sections 1 to 3 are effective on the day following final 68.33 enactment. 68.34 ARTICLE 9 68.35 RECODIFICATION OF SOCIAL 68.36 SECURITY COVERAGE PROVISIONS 69.1 Section 1. Minnesota Statutes 2000, section 355.01, 69.2 subdivision 1, is amended to read: 69.3 Subdivision 1. [IN GENERAL.] For the purposes of this 69.4 chapter,as amended,each of the terms defined in this section 69.5havehas themeaningsmeaning ascribed to them herein. 69.6 Sec. 2. Minnesota Statutes 2000, section 355.01, is 69.7 amended by adding a subdivision to read: 69.8 Subd. 2a. [CONSTITUTIONAL OFFICER.] "Constitutional 69.9 officer" means a person who serves as the governor, lieutenant 69.10 governor, attorney general, secretary of state, state auditor, 69.11 or state treasurer, who is duly elected and who was sworn into 69.12 office. 69.13 Sec. 3. Minnesota Statutes 2000, section 355.01, is 69.14 amended by adding a subdivision to read: 69.15 Subd. 2b. [DULUTH TEACHER.] "Duluth teacher" means a 69.16 person employed by independent school district No. 709, Duluth, 69.17 who holds a position covered by the Duluth teachers retirement 69.18 fund association established under chapter 354A. 69.19 Sec. 4. Minnesota Statutes 2000, section 355.01, is 69.20 amended by adding a subdivision to read: 69.21 Subd. 2c. [EDUCATIONAL EMPLOYEE.] "Educational employee" 69.22 means an employee of the state of Minnesota or of a public 69.23 subdivision of the state who performs services in a position 69.24 covered by the teachers retirement association under chapter 354. 69.25 Sec. 5. Minnesota Statutes 2000, section 355.01, is 69.26 amended by adding a subdivision to read: 69.27 Subd. 2d. [EMPLOYEE.] "Employee" means a person employed 69.28 by the state of Minnesota or by a political subdivision of the 69.29 state and includes an officer of the state of Minnesota or of a 69.30 political subdivision of the state. 69.31 Sec. 6. Minnesota Statutes 2000, section 355.01, is 69.32 amended by adding a subdivision to read: 69.33 Subd. 2e. [EMPLOYEE TAX.] "Employee tax" means the tax 69.34 imposed by section 3101 of the Internal Revenue Code of 1986. 69.35 Sec. 7. Minnesota Statutes 2000, section 355.01, 69.36 subdivision 3, is amended to read: 70.1 Subd. 3. [EMPLOYMENT.]The term(a) "Employment" means any 70.2 service performed by an employee in the employ of the state, or 70.3 any political subdivision thereof, forsuchthat employer, 70.4 except: 70.5 (1) service which in the absence of an agreement entered 70.6 into under this chapter, as amended, would constitute 70.7 "employment" as defined in the Social Security act; or 70.8 (2) service which under the Social Security Actmayis not 70.9 permitted to be included in an agreement between the state and 70.10 the federal Secretary of Health, Education,andWelfareHuman 70.11 Services entered into under this chapter, as amended. 70.12 (b) Service which under the Social Security Actmayis 70.13 permitted to be included in an agreement only upon certification 70.14 by the governor in accordance with section 218(d) (3) of that 70.15 actshallmust be included in the term "employment" if and when 70.16 the governor issues, with respect tosuchthat service,athe 70.17 appropriate federal certificate to the federal Secretary of 70.18 Health, Education,andWelfareHuman Services. 70.19 Sec. 8. Minnesota Statutes 2000, section 355.01, is 70.20 amended by adding a subdivision to read: 70.21 Subd. 3a. [FEDERAL INSURANCE CONTRIBUTIONS ACT.] "Federal 70.22 Insurance Contributions Act" means subchapters A and B of 70.23 chapter 21 of the Internal Revenue Code of 1986, as amended 70.24 through December 31, 2000. 70.25 Sec. 9. Minnesota Statutes 2000, section 355.01, is 70.26 amended by adding a subdivision to read: 70.27 Subd. 3b. [GOVERNMENTAL EMPLOYER.] "Governmental employer" 70.28 means any political subdivision as defined in section 218 of the 70.29 Social Security Act. The term includes a city, county, town, 70.30 hospital district, or other body, politic and corporate, located 70.31 in Minnesota. 70.32 Sec. 10. Minnesota Statutes 2000, section 355.01, is 70.33 amended by adding a subdivision to read: 70.34 Subd. 3c. [HIGHER EDUCATION EMPLOYEE.] "Higher education 70.35 employee" means an employee of the state of Minnesota who 70.36 performs services in a Minnesota state colleges and universities 71.1 system in a position covered by the individual retirement 71.2 account plan under section 354B.21 and who remains a member of 71.3 the teachers retirement association for purposes of social 71.4 security coverage only. 71.5 Sec. 11. Minnesota Statutes 2000, section 355.01, is 71.6 amended by adding a subdivision to read: 71.7 Subd. 3d. [HOSPITAL EMPLOYEE.] "Hospital employee" means 71.8 an officer or employee of a public hospital who performs 71.9 services in a position covered by the public employees 71.10 retirement association under chapter 353. 71.11 Sec. 12. Minnesota Statutes 2000, section 355.01, is 71.12 amended by adding a subdivision to read: 71.13 Subd. 3e. [JUDGE.] "Judge" means a judge as defined in 71.14 section 490.121, subdivision 3. 71.15 Sec. 13. Minnesota Statutes 2000, section 355.01, is 71.16 amended by adding a subdivision to read: 71.17 Subd. 3f. [LEGISLATOR.] "Legislator" means a member of the 71.18 legislature who is duly elected and who was sworn into office. 71.19 Sec. 14. Minnesota Statutes 2000, section 355.01, is 71.20 amended by adding a subdivision to read: 71.21 Subd. 3g. [LOCAL GOVERNMENTAL SUBDIVISION.] "Local 71.22 governmental subdivision" means: 71.23 (1) a political subdivision as defined in section 218(b) of 71.24 the Social Security Act; 71.25 (2) an instrumentality of the state; 71.26 (3) an instrumentality of one or more of the political 71.27 subdivisions of the state, including the league of Minnesota 71.28 cities; 71.29 (4) an instrumentality of the state and one or more of its 71.30 political subdivisions; 71.31 (5) a governmental subdivision as defined in section 71.32 353.01, subdivision 6; and 71.33 (6) any instrumentality established under a joint powers 71.34 agreement under section 471.59 wherein the instrumentality is 71.35 responsible for the employment and the payment of the salaries 71.36 of the employees of the instrumentality. 72.1 Sec. 15. Minnesota Statutes 2000, section 355.01, is 72.2 amended by adding a subdivision to read: 72.3 Subd. 3h. [MINNEAPOLIS TEACHER.] "Minneapolis teacher" 72.4 means a person employed by special school district No. 1, 72.5 Minneapolis, who holds a position covered by the Minneapolis 72.6 teachers retirement fund association established under chapter 72.7 354A. 72.8 Sec. 16. Minnesota Statutes 2000, section 355.01, is 72.9 amended by adding a subdivision to read: 72.10 Subd. 3i. [POLITICAL SUBDIVISION.] "Political subdivision" 72.11 means any political subdivision as defined in section 218(b) of 72.12 the Social Security Act, and includes any instrumentality of the 72.13 state, any instrumentality of one or more of its political 72.14 subdivisions, including the league of Minnesota municipalities, 72.15 any instrumentality of the state and one or more of its 72.16 political subdivisions, and an instrumentality established under 72.17 a joint powers agreement under section 471.59, wherein the 72.18 instrumentality is responsible for the employment and payment of 72.19 the salaries of employees of the instrumentality. 72.20 Sec. 17. Minnesota Statutes 2000, section 355.01, is 72.21 amended by adding a subdivision to read: 72.22 Subd. 3j. [PUBLIC EMPLOYEE.] "Public employee" means an 72.23 officer or an employee of a local governmental subdivision of 72.24 the state who performs services in a position covered by the 72.25 public employees retirement association established under 72.26 chapter 353. 72.27 Sec. 18. Minnesota Statutes 2000, section 355.01, is 72.28 amended by adding a subdivision to read: 72.29 Subd. 3k. [PUBLIC HOSPITAL.] "Public hospital" means a 72.30 hospital that is owned or operated by a governmental employer or 72.31 a combination of governmental employers, or a hospital that is 72.32 an integral part of a governmental employer or of a combination 72.33 of governmental employers. 72.34 Sec. 19. Minnesota Statutes 2000, section 355.01, is 72.35 amended by adding a subdivision to read: 72.36 Subd. 3l. [ST. PAUL TEACHER.] "St. Paul teacher" means a 73.1 person employed by independent school district No. 625, St. 73.2 Paul, who holds a position covered by the St. Paul teachers 73.3 retirement fund association established under chapter 354A. 73.4 Sec. 20. Minnesota Statutes 2000, section 355.01, 73.5 subdivision 6, is amended to read: 73.6 Subd. 6. [SECRETARY OF HEALTH AND HUMAN SERVICES.]The73.7term"Secretary of Health, Education,andWelfareHuman Services" 73.8 means the secretary of the federal Department of Health and 73.9 Human Services and includes any individual to whom the Secretary 73.10 of Health, Education,andWelfareHuman Services has delegated 73.11anyfunctions under the Social Security Act with respect to 73.12 coverageunder such actof employees of states and their 73.13 political subdivisions. 73.14 Sec. 21. Minnesota Statutes 2000, section 355.01, 73.15 subdivision 8, is amended to read: 73.16 Subd. 8. [SOCIAL SECURITY ACT.]The term"Social Security 73.17 Act" means the Act of Congress approved August 14, 1935, chapter 73.18 531, Statutes at Large, volume 49, page 620, officially cited as 73.19 the "Social Security Act," assuch act has been and may from73.20time to time beamended (including the relevant regulations and 73.21 requirementsissued pursuant thereto). 73.22 Sec. 22. Minnesota Statutes 2000, section 355.01, is 73.23 amended by adding a subdivision to read: 73.24 Subd. 11. [SPECIAL AUTHORITY OR DISTRICT.] "Special 73.25 authority or district" means a municipal housing and 73.26 redevelopment authority organized under sections 469.001 to 73.27 469.047, a soil and water conservation district organized under 73.28 chapter 103C, a port authority organized under sections 469.048 73.29 to 469.068, an economic development authority organized under 73.30 sections 469.090 to 469.108, or a hospital district organized or 73.31 reorganized under sections 447.31 to 447.37. 73.32 Sec. 23. Minnesota Statutes 2000, section 355.01, is 73.33 amended by adding a subdivision to read: 73.34 Subd. 12. [SPECIAL AUTHORITY OR DISTRICT 73.35 EMPLOYEE.] "Special authority or district employee" means an 73.36 employee, other than an elected official, of a municipal housing 74.1 and redevelopment authority organized under sections 469.001 to 74.2 469.047, of a soil and water conservation district organized 74.3 under chapter 103C, of a port authority organized under sections 74.4 469.048 to 469.068, of an economic development authority 74.5 organized under sections 469.090 to 469.108, or of a hospital 74.6 district organized or reorganized under sections 447.31 to 74.7 447.37. 74.8 Sec. 24. Minnesota Statutes 2000, section 355.01, is 74.9 amended by adding a subdivision to read: 74.10 Subd. 13. [STATE AGENCY.] "State agency" means the 74.11 commissioner of employee relations. 74.12 Sec. 25. Minnesota Statutes 2000, section 355.01, is 74.13 amended by adding a subdivision to read: 74.14 Subd. 14. [STATE EMPLOYEE.] "State employee" means an 74.15 employee of the state of Minnesota or of a political subdivision 74.16 who performs services in a position covered by the general state 74.17 employees retirement plan of the Minnesota state retirement 74.18 system governed by chapter 352, except any position for which 74.19 the compensation is on a fee basis. 74.20 Sec. 26. Minnesota Statutes 2000, section 355.01, is 74.21 amended by adding a subdivision to read: 74.22 Subd. 15. [WAGES.] "Wages" means all remuneration for 74.23 employment, including the cash value of all remuneration paid in 74.24 any medium other than cash. The term does not include that part 74.25 of the remuneration which, even if it were for employment within 74.26 the meaning of the Federal Insurance Contributions Act, would 74.27 not constitute wages within the meaning of that act. 74.28 Sec. 27. Minnesota Statutes 2000, section 355.02, is 74.29 amended to read: 74.30 355.02 [AGREEMENTS.] 74.31 Subdivision 1. [GENERAL AUTHORITY.] (a) The state agency, 74.32 with the approval of the governor, is hereby authorized to enter 74.33 into an agreement on behalf of the state with the federal 74.34 Secretary of Health, Education,andWelfareHuman Services, 74.35 consistent with the terms and provisions of this chapter, as74.36amended, for the purpose of extending the benefits of the 75.1 federal old ageand, survivors, and disability insurance system 75.2 to employees of the state or any political subdivision thereof 75.3 with respect to services specified insuchthe agreement which 75.4 constitute "employment," whenever so specifically authorized by 75.5 the statutory provisions of this state pertaining to any 75.6 coverage group of such employees to which the agreement may 75.7 become applicable under the Social Security Act. 75.8Pursuant to such(b) Under this specific authorization the 75.9 agreement may containsuchthose provisions relating to 75.10 coverage, benefits, contributions, effective date, modification 75.11 and termination of the agreement, administration, and other 75.12 appropriate provisions as the state agency and the federal 75.13 Secretary of Health, Education,andWelfareHuman Services shall 75.14 agree upon, but, except as may be otherwise required by or under 75.15 the Social Security Act as to the services to be covered, such 75.16 agreementshallmust provide in effect that: 75.17 (1) benefits will be provided for employees whose services 75.18 are covered by the agreement (and their dependents and 75.19 survivors) on the same basis as thoughsuchthose services 75.20 constituted employment within the meaning of title II of the 75.21 Social Security Act; 75.22 (2) the state or other employer will pay to the federal 75.23 Secretary of the Treasury, at such time or times as may be 75.24 prescribed under the Social Security Act, contributions with 75.25 respect to wages, equal to the sum of the taxes which would be 75.26 imposed by the Federal Insurance Contributions Act if the 75.27 services covered by the agreement constituted employment within 75.28 the meaning of that act; 75.29 (3)Suchthe agreementshall beis effective with respect 75.30 to services in employment covered by the agreement performed 75.31 after a date specified thereinbut in no event may it be75.32effective with respect to any such services performed prior to75.33the first day of the calendar year in which such agreement is75.34entered into or in which the modification of the agreement75.35making it applicable to such services, is entered into except75.36that an agreement or modification entered into prior to January76.11, 1960, may be effective with respect to services performed76.2after December 31, 1955, or after a later date specified in such76.3agreement or modification; and 76.4 (4) all services which constitute employment and are 76.5 performed in the employ of the state or any of its political 76.6 subdivisions by employees thereof, may be covered bysuchthe 76.7 agreement whenever so specifically authorized by the statutory 76.8 provisions of this state pertaining to any coverage group of 76.9 such employees to which the agreement may become applicable 76.10 under the Social Security Act. 76.11 Subd. 2. [INTERSTATE INSTRUMENTALITY.] (a) Any 76.12 instrumentality jointly created by this state and any other 76.13 state or states isherebyauthorized, upon the granting of like 76.14 authority bysuchthe other state or states, to: 76.15 (1)toenter into an agreement with the federal Secretary 76.16 of Health, Education,andWelfareHuman Services whereby the 76.17 benefits of the federal old ageand, survivors, and disability 76.18 insurance systemshall beare extended to employees ofsuchthe 76.19 instrumentality,; 76.20 (2)torequire its employees to pay (and for that purpose 76.21 to deduct from their wages) contributions equal to the amounts 76.22 which they would be required to pay under section 355.03, 76.23 subdivision 1, if they were covered by an agreement made 76.24pursuant tounder subdivision 1,; and 76.25 (3)tomake payments to the federal Secretary of the 76.26 Treasury in accordance withsuchthat agreement, including 76.27 payments from its own funds, and otherwise to comply withsuch76.28 those agreements.Such76.29 (b) The agreementsshallmust, to the extent practicable, 76.30 be consistent with the terms and provisions of subdivision 1 and 76.31 other provisions of this chapter, as amended. 76.32 Subd. 3. [GROUPS COVERED BY SOCIAL SECURITY.] The 76.33 following groups must be covered by an agreement or a 76.34 modification to an agreement between the state agency and the 76.35 federal Secretary of Health and Human Services: 76.36 (1) constitutional officers; 77.1 (2) Duluth teachers; 77.2 (3) educational employees; 77.3 (4) higher education employees; 77.4 (5) hospital employees; 77.5 (6) judges; 77.6 (7) legislators; 77.7 (8) Minneapolis teachers; 77.8 (9) public employees; 77.9 (10) St. Paul teachers; 77.10 (11) special authority or district employees; and 77.11 (12) state employees. 77.12 Sec. 28. Minnesota Statutes 2000, section 355.03, is 77.13 amended to read: 77.14 355.03 [EMPLOYEES AND EMPLOYERS, CONTRIBUTIONS.] 77.15 Subdivision 1. [EMPLOYEE CONTRIBUTION AMOUNT.] Every 77.16 employee of the state, or of any of its political subdivisions, 77.17 whose services are covered by the agreement entered into under 77.18 section 355.02shall be required tomust pay for the period 77.19 ofsuchthe coverage,into the contribution fund established by77.20section 355.04,contributions,with respect to wages, equal to 77.21 the amount of the employee's tax which would be imposed by the 77.22 Federal Insurance Contributions Act ifsuchthose services 77.23 constituted employment within the meaning of that act. 77.24SuchThis liabilityshall arisearises in consideration of the 77.25 employee's retention in the service of the state, or any of its 77.26 political subdivisions, or the employee's entry uponsuchthat 77.27 service, after the enactment of this chapter, as amended. 77.28 Subd. 2. [EMPLOYEE DEDUCTION.] The contribution imposed by 77.29 this sectionshallmust be collected by the covered employee's 77.30 employer by deducting the amount of the contribution from wages 77.31 as and when paid, but. The failure to make such deductionshall77.32 does not relieve the employee from liability for such 77.33 contribution. 77.34 Subd. 2a. [EMPLOYER CONTRIBUTION.] (a) Employer 77.35 contributions that are required under the agreement must be paid 77.36 by the applicable employing unit. 78.1 (b) Employer contributions on behalf of St. Paul teachers, 78.2 Duluth teachers, Minneapolis teachers, or education employees 78.3 may be paid from normal school operating funds. Employer 78.4 contributions on behalf of state employees must be paid by the 78.5 applicable department or agency from its appropriation or other 78.6 revenue, in the same proportion as salaries are paid, and must 78.7 be charged as an administrative cost of the state governmental 78.8 unit. 78.9 (c) Employing units may pay the employer contribution from 78.10 taxes collected or from other governmental revenue. An 78.11 employing unit may include in its tax levy the amount necessary 78.12 to pay its social security obligations. If the taxes authorized 78.13 to be levied cause the total levy amount to exceed any 78.14 limitation on the power of the employing unit to levy taxes, the 78.15 unit may still levy the necessary amount. The employing unit, 78.16 in the event of a deficit, may issue debt obligations, payable 78.17 in not more than two years, in an amount which may cause its 78.18 indebtedness to exceed any limitation without holding an 78.19 election and may levy taxes to amortize the indebtedness. The 78.20 authorized social security expenditures must not be included in 78.21 computing the cost of government for purposes of any home rule 78.22 charter or other charter. 78.23 (d) If the required employer contribution for social 78.24 security is increased and, as a result of that increase, there 78.25 is insufficient money available to a state governmental unit, 78.26 there is appropriated to the state department or agency from the 78.27 general fund the amount required to meet the deficiency, based 78.28 on certifications from the commissioner of employee relations to 78.29 the commissioner of finance. The transfer of the appropriated 78.30 amount may only occur after the commissioner of finance notifies 78.31 the chair and ranking minority member of the house committee on 78.32 ways and means and the chair and ranking minority member of the 78.33 senate finance committee of the amount to be transferred. 78.34 (e) For members of the general state employees retirement 78.35 plan of the Minnesota state retirement system who are employed 78.36 by the state horticultural society, the department of Minnesota 79.1 for the disabled American veterans organization, the department 79.2 of Minnesota of the veterans of foreign wars organization, the 79.3 Minnesota crop improvement association, the Minnesota historical 79.4 society, the armory building commission, and the 79.5 Minnesota-Wisconsin-Minneapolis-St. Paul survival plan project, 79.6 the applicable employing unit must pay the employer contribution 79.7 from any revenue source that it has. 79.8 Subd. 3. [ADJUSTMENTS; REFUNDS.] If more or less than the 79.9 correct amount of the contribution imposed by this section is 79.10 paid or deducted with respect to any remuneration, proper 79.11 adjustments, or refund if adjustment is impracticable,shall79.12 must be made, without interest, in such manner and at such times 79.13 as the state agencyshall prescribeprescribes. 79.14 Subd. 4. [DELINQUENT PAYMENTS.] Delinquent payments that 79.15 are due under this chapter, with compound interest at the rate 79.16 of six percent per annum, may be recovered by legal action in a 79.17 court of competent jurisdiction against an employing unit that 79.18 is liable for the amount. The state agency may request that the 79.19 delinquent payment and interest amount be deducted from any 79.20 other money that is payable to the applicable employing unit by 79.21 any department or agency of the state. An action for the 79.22 recovery of delinquent payments is not subject to any statutory 79.23 provision that would otherwise limit the time within which an 79.24 action may be commenced. 79.25 Sec. 29. [355.035] [REIMBURSEMENT BY EMPLOYING UNITS.] 79.26 An employing unit which employs a member of a covered group 79.27 must reimburse the state agency for its pro rata share of the 79.28 cost of the administration of the agency with respect to social 79.29 security coverage in accordance with the rules of the state 79.30 agency pertaining to this reimbursement. 79.31 Sec. 30. [355.036] [REPORTS.] 79.32 An employing unit which employs a member of a covered group 79.33 must make any reports in the form required and must include the 79.34 information that the state agency requires. An employing unit 79.35 also must comply with the reporting requirements that the state 79.36 agency or the federal Secretary of Health and Human Services may 80.1 from time to time determine are necessary to ensure the 80.2 correctness and verification of relevant information. 80.3 Sec. 31. [355.037] [PROCEEDS OF SPECIAL BENEFIT TAXES.] 80.4 The proceeds of the special benefit taxes that are 80.5 authorized to be levied for redevelopment purposes under section 80.6 469.033, subdivision 6, may be used to defray all or part of the 80.7 costs incurred by any housing and redevelopment authority under 80.8 this chapter. 80.9 Sec. 32. Minnesota Statutes 2000, section 355.05, is 80.10 amended to read: 80.11 355.05 [RULES.] 80.12 The state agencyshall make and publish suchmay promulgate 80.13 those rules, not inconsistent with the provisions of this 80.14 chapter, as amended, as it finds necessary or appropriate to the 80.15 efficient administration of the functions with which it is 80.16 charged under this chapter, as amended. 80.17 Sec. 33. Minnesota Statutes 2000, section 355.07, is 80.18 amended to read: 80.19 355.07 [DECLARATION OF POLICY.] 80.20 (a) In order to extend to employees of the stateand, its 80.21 political subdivisions, and its other governmental employers, 80.22 and to the dependents and survivors ofsuchthe employees of 80.23 those employing units, the basic protection accorded to others 80.24 by the old ageand, survivors, and disability insurance system 80.25 embodied in the Social Security Act, it is hereby declared to be 80.26 the policy of the legislature, subject to the limitations of 80.27 this chapter, that these steps are taken to provide protection 80.28 to employees of the state and its political subdivisions on as 80.29 broad a basis as may be authorized by the legislature and is 80.30 permitted under the Social Security Act. 80.31 (b) It is also the policy of the legislature that the 80.32 protection afforded employees in positions covered by a 80.33 retirement system on the date an agreement under this chapter is 80.34 made applicable to service performed in those positions, or 80.35 receiving periodic benefits under the retirement system at that 80.36 time, will not be impaired as a result of making the agreement 81.1 so applicable or as a result of legislative enactment in 81.2 anticipation thereof when combined with the benefits accorded 81.3 the employee by the Social Security Act. 81.4 (c) To this end, the agreement referred to in section 81.5 355.02shallmust not be made applicable to any service 81.6 performed in any position covered by a retirement system unless 81.7 a referendum is first held by secret ballot in which a majority 81.8 of "eligible employees," as defined in section 218(d) (3) of the 81.9 Social Security Act, vote in favor thereof, or unless a 81.10 retirement system is divided in two divisions or parts, one of 81.11 which is composed of positions of members of the system who 81.12 desire coverage and one of which is composed of positions of 81.13 members of the system who do not desire coverage under section 81.14 218(d) (3) of the Social Security Act, in accordance with 81.15 subsections (6) and (7) thereof. 81.16 (d) Nothing in any provision of this chaptershall81.17authorizeauthorizes the extension of the insurance system 81.18 established by this chapter, as amended, to service in any 81.19 police officer's or firefighter's position or in any position 81.20 covered by a retirement system applicable exclusively to 81.21 positions in one or more law enforcement or fire fighting units, 81.22 agencies or departments. 81.23 Sec. 34. Minnesota Statutes 2000, section 355.08, is 81.24 amended to read: 81.25 355.08 [APPLICATION OF SOCIAL SECURITY ACT.] 81.26 The provisions of the Social Security Act, and all acts81.27amendatory thereof, shallgovern relative to employees of the 81.28 stateand, its political subdivisions, and its other 81.29 governmental employers subject toMinnesota Statutes,this 81.30 chapter355, as amended, anything insaidthis chapter to the 81.31 contrary notwithstanding. 81.32 Sec. 35. [355.091] [DIVISION OF RETIREMENT PLANS.] 81.33 (a) The public retirement plans enumerated in paragraph (b) 81.34 must be divided into two parts in accordance with section 81.35 218(d)(6)(c) of the Social Security Act, with one part composed 81.36 of plan members who did not elect social security coverage in 82.1 the applicable referendum and the other part composed of plan 82.2 members who did elect social security coverage in the applicable 82.3 referendum. 82.4 (b) The applicable public retirement plans are: 82.5 (1) the elective state officers retirement plan; 82.6 (2) the judges retirement plan; 82.7 (3) the legislators retirement plan; 82.8 (4) the Minneapolis teachers retirement fund association; 82.9 (5) the general employees retirement plan of the public 82.10 employees retirement association; 82.11 (6) the St. Paul teachers retirement fund association; and 82.12 (7) the teachers retirement association. 82.13 (c) Plan participants and persons electing participation 82.14 under section 354B.21 remain members of the teachers retirement 82.15 association for purposes of social security coverage only, and 82.16 remain covered by the applicable agreement entered into under 82.17 section 355.01, but are not members of the teachers retirement 82.18 association for any other purpose while employed in covered 82.19 employment. 82.20 Sec. 36. [REPEALER.] 82.21 Minnesota Statutes 2000, sections 355.01, subdivisions 2, 82.22 4, 5, 9, and 10; 355.11; 355.12; 355.13; 355.14; 355.15; 355.16; 82.23 355.17; 355.201; 355.202; 355.203; 355.204; 355.205; 355.206; 82.24 355.207; 355.208; 355.209; 355.21; 355.22; 355.23; 355.24; 82.25 355.25; 355.26; 355.27; 355.28; 355.281; 355.282; 355.283; 82.26 355.284; 355.285; 355.286; 355.287; 355.288; 355.29; 355.291; 82.27 355.292; 355.293; 355.294; 355.295; 355.296; 355.297; 355.298; 82.28 355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 355.41; 82.29 355.42; 355.43; 355.44; 355.45; 355.46; 355.48; 355.49; 355.50; 82.30 355.51; 355.52; 355.54; 355.55; 355.56; 355.57; 355.58; 355.59; 82.31 355.60; 355.61; 355.621; 355.622; 355.623; 355.624; 355.625; 82.32 355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 355.74; 82.33 355.75; 355.76; 355.77; 355.78; 355.79; 355.80; 355.81; and 82.34 355.90, are repealed. 82.35 Sec. 37. [EFFECTIVE DATE.] 82.36 Sections 1 to 36 are effective on July 1, 2002. 83.1 ARTICLE 10 83.2 PUBLIC PENSION PLAN 83.3 ACTUARIAL ASSUMPTION REVISIONS 83.4 Section 1. Minnesota Statutes 2000, section 356.215, 83.5 subdivision 4d, is amended to read: 83.6 Subd. 4d. [INTEREST AND SALARY ASSUMPTIONS.] (a) The 83.7 actuarial valuation must use the applicable following 83.8 preretirement interest assumption and the applicable following 83.9 postretirement interest assumption: 83.10 preretirement postretirement 83.11 interest rate interest rate 83.12 plan assumption assumption 83.13 general state employees 83.14 retirement plan 8.5% 6.0% 83.15 correctional state employees 83.16 retirement plan 8.5 6.0 83.17 state patrol retirement plan 8.5 6.0 83.18 legislators retirement plan 8.5 6.0 83.19 elective state officers 83.20 retirement plan 8.5 6.0 83.21 judges retirement plan 8.5 6.0 83.22 general public employees 83.23 retirement plan 8.5 6.0 83.24 public employees police and fire 83.25 retirement plan 8.5 6.0 83.26 local government correctional 83.27 service retirement plan 8.5 6.0 83.28 teachers retirement plan 8.5 6.0 83.29 Minneapolis employees 83.30 retirement plan 6.0 5.0 83.31 Duluth teachers retirement plan 8.5 8.5 83.32 Minneapolis teachers retirement 83.33 plan 8.5 8.5 83.34 St. Paul teachers retirement 83.35 plan 8.5 8.5 83.36 Minneapolis police relief 83.37 association 6.0 6.0 83.38other localFairmont police relief 83.39associationsassociation 5.0 5.0 83.40 Minneapolis fire department 83.41 relief association 6.0 6.0 83.42other local salaried firefighters83.43 Virginia fire department 83.44 reliefassociationsassociation 5.0 5.0 83.45 local monthly benefit volunteer 83.46 firefighters relief associations 5.0 5.0 83.47 (b) The actuarial valuation must use the applicable 83.48 following single rate future salary increase assumption or the 83.49 applicable following graded rate future salary increase 83.50 assumption: 83.51 (1) single rate future salary increase assumption 83.52 future salary 83.53 plan increase assumption 83.54 legislators retirement plan 5.0% 83.55 elective state officers retirement 83.56 plan 5.0 84.1 judges retirement plan 5.0 84.2 Minneapolis police relief association 4.0 84.3other localFairmont police relief 84.4associationsassociation 3.5 84.5 Minneapolis fire department relief 84.6 association 4.0 84.7other local salaried firefighters84.8 Virginia fire department 84.9 reliefassociationsassociation 3.5 84.10 (2) modified single rate future salary increase assumption 84.11 future salary 84.12 plan increase assumption 84.13 Minneapolis employees the prior calendar year 84.14 retirement plan amount increased first by 84.15 1.0198 percent to prior 84.16 fiscal year date and 84.17 then increased by 4.0 84.18 percent annually for 84.19 each future year 84.20 (3) select and ultimate future salary increase assumption 84.21 or graded rate future salary increase assumption 84.22 future salary 84.23 plan increase assumption 84.24 general state employees select calculation and 84.25 retirement plan assumption A 84.26 correctional state employees 84.27 retirement plan assumption H 84.28 state patrol retirement plan assumption H 84.29 general public employees select calculation and 84.30 retirement plan assumption B 84.31 public employees police and fire 84.32 fund retirement plan assumption C 84.33 local government correctional service 84.34 retirement plan assumption H 84.35 teachers retirement plan assumption D 84.36 Duluth teachers retirement plan assumption E 84.37 Minneapolis teachers retirement plan assumption F 84.38 St. Paul teachers retirement plan assumption G 84.39 84.40 The select calculation:is, 84.41 during the ten-year select period,0.2a designated percent 84.42 is multiplied by the result of ten minus T, where T is 84.43 the number of completed years of service, and is added 84.44 to the applicable future salary increase assumption. The 84.45 designated percent is 0.2 percent for the correctional state 84.46 employees retirement plan, the state patrol retirement 84.47 plan, the public employees police and fire plan, and the 84.48 local government correctional service plan; 0.3 percent 84.49 for the general state employees retirement plan, the 84.50 general public employees retirement plan, the teachers 84.51 retirement plan, the Duluth teachers retirement fund 84.52 association, and the St. Paul teachers retirement fund 84.53 association; and 0.4 percent for the Minneapolis teachers 84.54 retirement fund association. 84.55 84.56 The ultimate future salary increase assumption is: 84.57 84.58 age A B C D E F G H 84.59 16 6.95% 6.95% 11.50% 8.20% 8.00%7.50%7.25% 7.7500 84.60 6.50 6.90 84.61 17 6.90 6.90 11.50 8.15 8.007.507.257.7500 84.62 6.50 6.90 84.63 18 6.85 6.85 11.50 8.10 8.007.507.257.7500 84.64 6.50 6.90 84.65 19 6.80 6.80 11.50 8.05 8.007.507.257.7500 84.66 6.50 6.90 85.1 20 6.756.7511.508.008.007.507.257.7500 85.2 6.40 6.00 6.90 6.50 6.90 85.3 216.706.7011.507.958.007.507.257.1454 85.4 6.75 6.40 6.00 6.90 6.50 6.90 85.5 226.656.6511.007.908.007.507.257.0725 85.6 6.75 6.40 6.00 6.90 6.50 6.90 85.7 23 6.75 6.40 10.50 6.00 6.85 6.50 6.85 7.0544 85.8 246.666.5510.007.807.807.307.207.0363 85.9 6.75 6.40 6.00 6.80 6.50 6.80 85.10 256.506.509.507.757.707.207.157.0000 85.11 6.75 6.40 6.00 6.75 6.50 6.75 85.12 266.456.459.207.707.607.107.107.0000 85.13 6.75 6.36 6.00 6.70 6.50 6.70 85.14 276.406.408.907.657.507.007.057.0000 85.15 6.75 6.32 6.00 6.65 6.50 6.65 85.16 286.356.358.607.607.406.907.007.0000 85.17 6.75 6.28 6.00 6.60 6.50 6.60 85.18 296.306.308.307.557.306.806.957.0000 85.19 6.75 6.24 6.00 6.55 6.50 6.55 85.20 306.256.308.007.507.206.706.907.0000 85.21 6.75 6.20 6.00 6.50 6.50 6.50 85.22 316.206.257.807.457.106.606.857.0000 85.23 6.75 6.16 6.00 6.45 6.50 6.45 85.24 326.156.217.607.407.006.506.807.0000 85.25 6.75 6.12 6.00 6.40 6.50 6.40 85.26 336.106.177.407.306.906.406.757.0000 85.27 6.75 6.08 6.00 6.35 6.50 6.35 85.28 346.056.097.207.106.806.306.707.0000 85.29 6.75 6.04 6.00 6.30 6.50 6.30 85.30 356.006.057.007.006.706.206.657.0000 85.31 6.75 6.00 6.00 6.25 6.50 6.25 85.32 366.956.016.806.856.606.106.606.9019 85.33 6.75 5.96 6.00 6.20 6.50 6.20 85.34 375.905.976.606.706.506.006.556.8074 85.35 6.75 5.92 6.00 6.15 6.50 6.15 85.36 385.855.936.406.556.405.906.506.7125 85.37 6.75 5.88 5.90 6.10 6.50 6.10 85.38 395.805.896.206.406.305.806.406.6054 85.39 6.75 5.84 5.80 6.05 6.50 6.05 85.40 405.755.856.006.256.205.706.306.5000 85.41 41 5.70 5.81 5.90 6.10 6.10 5.60 6.20 6.3540 85.42 6.75 5.76 5.60 5.90 6.50 5.95 85.43 425.655.775.805.956.005.506.106.2087 85.44 6.75 5.72 5.50 5.80 6.50 5.90 85.45 435.605.735.705.805.905.456.006.0622 85.46 6.65 5.68 5.40 5.70 6.50 5.85 85.47 445.555.695.605.655.805.405.905.9048 85.48 6.55 5.64 5.30 5.60 6.50 5.80 85.49 455.505.655.505.505.705.355.805.7500 85.50 6.45 5.60 5.20 5.50 6.50 5.75 85.51 465.455.625.455.455.605.305.705.6940 85.52 6.35 5.56 5.10 5.40 6.40 5.70 85.53 475.405.595.405.405.505.255.65 5.6375 85.54 6.25 5.52 5.00 5.30 6.30 85.55 485.355.565.355.355.455.205.60 5.5822 85.56 6.15 5.48 5.00 5.20 6.20 85.57 495.305.535.305.305.405.155.55 5.5404 85.58 6.05 5.44 5.00 5.10 6.10 85.59 505.255.505.255.255.355.105.50 5.5000 85.60 5.95 5.40 5.00 5.00 6.00 85.61 515.205.455.255.205.305.055.45 5.4384 85.62 5.85 5.36 5.00 5.00 5.90 85.63 525.155.405.255.155.255.005.40 5.3776 85.64 5.75 5.32 5.00 5.00 5.80 85.65 535.105.355.255.105.255.005.35 5.3167 85.66 5.65 5.28 5.00 5.00 5.70 85.67 545.055.305.255.055.255.005.30 5.2826 85.68 5.55 5.24 5.00 5.00 5.60 85.69 555.005.255.25 5.005.255.005.25 5.2500 85.70 5.45 5.20 5.00 5.50 85.71 565.005.205.25 5.005.255.005.255.2500 86.1 5.35 5.16 5.00 5.40 5.20 86.2 575.005.155.25 5.005.255.005.255.2500 86.3 5.25 5.12 5.00 5.30 5.15 86.4 585.005.105.255.005.255.005.255.2500 86.5 595.005.055.255.005.255.005.255.2500 86.6 5.25 5.04 5.20 5.00 5.10 5.05 86.7 605.005.00 5.255.005.255.005.255.2500 86.8 5.25 5.30 5.00 5.00 86.9 615.005.00 5.255.005.255.005.255.2500 86.10 5.25 5.40 5.00 5.00 86.11 625.005.00 5.255.005.255.005.255.2500 86.12 5.25 5.50 5.00 5.00 86.13 635.005.00 5.255.005.255.005.255.2500 86.14 5.25 5.60 5.00 5.00 86.15 645.005.00 5.255.005.255.005.255.2500 86.16 5.25 5.70 5.00 5.00 86.17 655.005.00 5.255.005.255.005.255.2500 86.18 5.25 5.70 5.00 5.00 86.19 665.005.00 5.255.005.255.005.255.2500 86.20 5.25 5.70 5.00 5.00 86.21 675.005.00 5.255.005.255.005.255.2500 86.22 5.25 5.70 5.00 5.00 86.23 685.005.00 5.255.005.255.005.255.2500 86.24 5.25 5.70 5.00 5.00 86.25 695.005.00 5.255.005.255.005.255.2500 86.26 5.25 5.70 5.00 5.00 86.27 705.005.00 5.255.005.255.005.255.2500 86.28 5.25 5.70 5.00 5.00 86.29 715.005.005.0086.30 5.25 5.70 86.31 (c) The actuarial valuation must use the applicable 86.32 following payroll growth assumption for calculating the 86.33 amortization requirement for the unfunded actuarial accrued 86.34 liability where the amortization retirement is calculated as a 86.35 level percentage of an increasing payroll: 86.36 payroll growth 86.37 plan assumption 86.38 general state employees retirement plan 5.00% 86.39 correctional state employees retirement plan 5.00 86.40 state patrol retirement plan 5.00 86.41 legislators retirement plan 5.00 86.42 elective state officers retirement plan 5.00 86.43 judges retirement plan 5.00 86.44 general public employees retirement plan 6.00 86.45 public employees police and fire 86.46 retirement plan 6.00 86.47 local government correctional service 86.48 retirement plan 6.00 86.49 teachers retirement plan 5.00 86.50 Duluth teachers retirement plan 5.00 86.51 Minneapolis teachers retirement plan 5.00 86.52 St. Paul teachers retirement plan 5.00 86.53 Sec. 2. [EFFECTIVE DATE.] 86.54 Section 1 is effective on June 30, 2002. 86.55 ARTICLE 11 86.56 AUTHORIZATION OF ADDITIONAL 86.57 SUPPLEMENTAL RETIREMENT PLANS 86.58 Section 1. Minnesota Statutes 2001 Supplement, section 87.1 356.24, subdivision 1, is amended to read: 87.2 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 87.3 for a school district or other governmental subdivision or state 87.4 agency to levy taxes for, or contribute public funds to a 87.5 supplemental pension or deferred compensation plan that is 87.6 established, maintained, and operated in addition to a primary 87.7 pension program for the benefit of the governmental subdivision 87.8 employees other than: 87.9 (1) to a supplemental pension plan that was established, 87.10 maintained, and operated before May 6, 1971; 87.11 (2) to a plan that provides solely for group health, 87.12 hospital, disability, or death benefits; 87.13 (3) to the individual retirement account plan established 87.14 by chapter 354B; 87.15 (4) to a plan that provides solely for severance pay under 87.16 section 465.72 to a retiring or terminating employee; 87.17 (5) for employees other than personnel employed by the 87.18 board of trustees of the Minnesota state colleges and 87.19 universities and covered under the higher education supplemental 87.20 retirement plan under chapter 354C, if provided for in a 87.21 personnel policy of the public employer or in the collective 87.22 bargaining agreement between the public employer and the 87.23 exclusive representative of public employees in an appropriate 87.24 unit, in an amount matching employee contributions on a dollar 87.25 for dollar basis, but not to exceed an employer contribution of 87.26 $2,000 a year per employee; 87.27 (i) to the state of Minnesota deferred compensation plan 87.28 under section 352.96; or 87.29 (ii) in payment of the applicable portion of the 87.30 contribution made to any investment eligible under section 87.31 403(b) of the Internal Revenue Code, if the employing unit has 87.32 complied with any applicable pension plan provisions of the 87.33 Internal Revenue Code with respect to the tax-sheltered annuity 87.34 program during the preceding calendar year; 87.35 (6) for personnel employed by the board of trustees of the 87.36 Minnesota state colleges and universities and not covered by 88.1 clause (5), to the supplemental retirement plan under chapter 88.2 354C, if provided for in a personnel policy or in the collective 88.3 bargaining agreement of the public employer with the exclusive 88.4 representative of the covered employees in an appropriate unit, 88.5 in an amount matching employee contributions on a dollar for 88.6 dollar basis, but not to exceed an employer contribution of 88.7 $2,700 a year for each employee; 88.8 (7) to a supplemental plan or to a governmental trust to 88.9 save for postretirement health care expenses qualified for 88.10 tax-preferred treatment under the Internal Revenue Code, if 88.11 provided for in a personnel policy or in the collective 88.12 bargaining agreement of a public employer with the exclusive 88.13 representative of the covered employees in an appropriate unit; 88.14or88.15 (8) to the laborer's national industrial pension fund for 88.16 the employees of a governmental subdivision who are covered by a 88.17 collective bargaining agreement that provides for coverage by 88.18 that fund and that sets forth a fund contribution rate, but not 88.19 to exceed an employer contribution of $2,000 per year per 88.20 employee; 88.21 (9) to the plumbers' and pipefitters' national pension fund 88.22 for the employees of a governmental subdivision who are covered 88.23 by a collective bargaining agreement that provides for coverage 88.24 by that fund and that sets forth a fund contribution rate, but 88.25 not to exceed an employer contribution of $2,000 per year per 88.26 employee; 88.27 (10) to the international union of operating engineers 88.28 pension fund for the employees of a governmental subdivision who 88.29 are covered by a collective bargaining agreement that provides 88.30 for coverage by that fund and that sets forth a fund 88.31 contribution rate, but not to exceed an employer contribution of 88.32 $2,000 per year per employee; or 88.33 (11) to a supplemental plan organized and operated under 88.34 the federal Internal Revenue Code, as amended, that is wholly 88.35 and solely funded by the employee's accumulated sick leave, 88.36 accumulated vacation leave, and accumulated severance pay. 89.1 Sec. 2. Minnesota Statutes 2000, section 356.25, is 89.2 amended to read: 89.3 356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 89.4 EXCLUSIONS.] 89.5 Notwithstanding any other provision of law or charter, no 89.6 city, county, public agency or instrumentality, or other 89.7 political subdivisionshall, after August 1, 1975,is required 89.8 or permitted to establish for any of its employees any local 89.9 pension plan or fund financed in whole or in part from public 89.10 funds, other than: 89.11 (1) a supplemental pension or deferred compensation plan 89.12 authorized under section 356.24; or 89.13 (2) a volunteer firefighter's relief association 89.14 establishedpursuant tounder chapter 424A and governed by 89.15 sections 69.771 to 69.776. 89.16 Sec. 3. [RATIFICATION AND VALIDATION OF CERTAIN PAST 89.17 ACTIONS.] 89.18 Any supplemental pension plan that is organized and 89.19 operated under section 401(a) of the federal Internal Revenue 89.20 Code, as amended, that is wholly and solely funded by an 89.21 employee's accumulated sick leave, accumulated vacation leave, 89.22 and accumulated severance pay, and that was established before 89.23 the effective date of this act and any contributions to the plan 89.24 that may be characterized as public funds within the meaning of 89.25 Minnesota Statutes, section 356.24, are hereby ratified and 89.26 validated. 89.27 Sec. 4. [EFFECTIVE DATE.] 89.28 Sections 1 to 3 are effective on the day following final 89.29 enactment. 89.30 ARTICLE 12 89.31 GENERAL RETIREMENT LAW 89.32 REORGANIZATION AND RECODIFICATION 89.33 PUBLIC RETIREMENT PLAN PURPOSE 89.34 Section 1. Minnesota Statutes 2000, section 356.001, is 89.35 amended to read: 89.36 356.001 [PURPOSE OF PUBLIC PLANS.] 90.1 Subdivision 1. [EXCLUSIVE BENEFIT OF MEMBERS AND 90.2 BENEFICIARIES.] (a) The public plans and funds specified in 90.3 subdivision 4 are established to provide for the retirement of 90.4 their members and to provide funds for the beneficiaries of 90.5 members in the event of death of a member. 90.6 (b) The public plans and funds are established andshall90.7 must be maintained for the exclusive benefit of the members and 90.8 the beneficiaries of the members. Except as provided in 90.9 subdivisions 2 and 3, no part of the moneys of the plans and 90.10 fundsshallmay revert to the plan or fund or be used for or 90.11 diverted to purposes other than the exclusive benefit of the 90.12 members or their beneficiaries. 90.13 Subd. 2. [ALLOWABLE EXPENSES.] The necessary, reasonable, 90.14 and direct expenses of maintaining, protecting, and 90.15 administering the public plan or fund, as authorized in the laws 90.16 governing the plan or fund,shallmust be considered as 90.17 expenditures for the exclusive benefit of the members or their 90.18 beneficiaries. 90.19 Subd. 3. [EFFECT OF AMENDMENTS OR TERMINATION.] (a) If a 90.20 public plan or fundasdefined in subdivision 4 is terminated or 90.21 the plan or fund provisions are amended, no part of the moneys 90.22 held in the plan or fundshallmay be used for or diverted to 90.23 any purpose other than the exclusive benefit of the members or 90.24 their beneficiaries, except as provided in this subdivision. 90.25 (b) If a plan or fund is terminated, all affected members 90.26 have a nonforfeitable interest in their benefits that were 90.27 accrued and funded to date. The value of the accrued benefits 90.28 to be credited to the account of each affected membershallmust 90.29 be calculated as of the date of termination and the funding 90.30 ratio of the plan or fund must be applied to the accrued benefit 90.31 of each affected member. 90.32 (c) The board of trustees of the plan or fund shallthen, 90.33 as soon as administratively feasible following the termination, 90.34 pay each eligible member or beneficiary on behalf of a member 90.35 the amount in the member's account in a lump sum. In the case 90.36 of a member whose whereabouts is unknown, the board shall notify 91.1 the member at the last known address by certified mail with 91.2 return receipt requested advising the member of the member's 91.3 right to a pending distribution. If the member cannot be 91.4 located in this manner, the board shall establish a custodial 91.5 account for the member's benefit in a federally insured bank, 91.6 savings association, or credit union in which the member's 91.7 account balanceshallmust be deposited. If the board receives 91.8 proof of death of a member that is satisfactory to the board, 91.9 the account balanceshallmust be paid to the beneficiary of the 91.10 member. 91.11 Subd. 4. [COVERED PLANS AND FUNDS.] This section applies 91.12 to all public pension and retirement plans and funds established 91.13pursuant tounder the laws of the state of Minnesota that 91.14 receive contributions from moneys derived from taxation. 91.15 Subd. 5. [CONSTRUCTION.] Nothing contained in this section 91.16shallmay be construed to authorize, or otherwise imply, a 91.17 legislative policy or intent favoring the termination of any 91.18 plan or fund to which this section applies. 91.19 PUBLIC PENSION PLAN ACTUARIAL, FINANCIAL, 91.20 AND INVESTMENT REPORTING 91.21 Sec. 2. Minnesota Statutes 2000, section 356.20, 91.22 subdivision 1, is amended to read: 91.23 Subdivision 1. [REPORT REQUIRED.] (a) The governing or 91.24 managing board or administrative officials of the public pension 91.25 and retirement funds enumerated in subdivision 2 shall annually 91.26 prepare and file a financial report following the close of each 91.27 fiscal year. 91.28 (b) This requirementshallalsoapplyapplies to any plan 91.29 or fund which may be a successor to any organization so 91.30 enumerated or to any newly formed retirement plan, fund or 91.31 association operating under the control or supervision of any 91.32 public employee group, governmental unit, or institution 91.33 receiving a portion of its support through legislative 91.34 appropriations. 91.35 (c) The reportshallmust be prepared under the supervision 91.36 and at the direction of the management of each fund andshall92.1 must be signed by the presiding officer of the managing board of 92.2 the fund and the chief administrative official of the fund. 92.3 Sec. 3. Minnesota Statutes 2000, section 356.20, 92.4 subdivision 2, is amended to read: 92.5 Subd. 2. [COVERED PUBLIC PENSION PLANS AND FUNDS.] This 92.6 section applies to the following public pension plans: 92.7 (1) the general state employees retirementfund.plan of 92.8 the Minnesota state retirement system; 92.9 (2) the general employees retirement plan of the public 92.10 employees retirementfund.association; 92.11 (3) the teachers retirement association.; 92.12 (4) the state patrol retirementfund.plan; 92.13 (5) the Minneapolis teachers retirement fund association.; 92.14 (6) the St. Paul teachers retirement fund association.; 92.15 (7) the Duluth teachers retirement fund association.; 92.16 (8) the Minneapolis employees retirement fund.; 92.17 (9) the University of Minnesota faculty retirement plan.; 92.18 (10) the University of Minnesota faculty supplemental 92.19 retirement plan.; 92.20 (11) the judges retirement fund.; 92.21 (12)Anya police or firefighter's relief association 92.22enumerateddescribed in section 69.77, subdivision 1a, or 92.23 69.771, subdivision 1.; 92.24 (13) the public employees police and firefund.plan of the 92.25 public employees retirement association; 92.26 (14) the correctional state employees retirement plan of 92.27 the Minnesota state retirement systemcorrectional officers92.28retirement fund.; and 92.29 (15)public employeesthe local government correctional 92.30 service retirement plan of the public employees retirement 92.31 association. 92.32 Sec. 4. Minnesota Statutes 2000, section 356.20, 92.33 subdivision 3, is amended to read: 92.34 Subd. 3. [FILING REQUIREMENT.] The financial report is a 92.35 public record. A copy of the report or a synopsis of the report 92.36 containing the information required by this sectionshallmust 93.1 be distributed annually to each member of the fund and to the 93.2 governing body of each governmental subdivision of the state 93.3 which makes employers contributions thereto or in whose behalf 93.4 taxes are levied for the employers' contribution. A signed copy 93.5 of the reportshallmust be delivered to the executive director 93.6 of the legislative commission on pensions and retirement and to 93.7 the legislative reference library not later than six months 93.8 after the close of each fiscal year or one month following the 93.9 completion and delivery to the retirement fund of the actuarial 93.10 valuation report of the fund by the actuary retained by the 93.11 legislative commission on pensions and retirement, if 93.12 applicable, whichever is later. 93.13 Sec. 5. Minnesota Statutes 2000, section 356.20, 93.14 subdivision 4, is amended to read: 93.15 Subd. 4. [CONTENTS OF FINANCIAL REPORT.] (a) The financial 93.16 report required by this section must contain financial 93.17 statements and disclosures that indicate the financial 93.18 operations and position of the retirement plan and fund. The 93.19 report must conform with generally accepted governmental 93.20 accounting principles, applied on a consistent basis. The 93.21 report must be audited. The report must include, as part of its 93.22 exhibits or footnotes, an actuarial disclosure item based on the 93.23 actuarial valuation calculations prepared by the 93.24 commission-retained actuary or by the actuary retained by the 93.25 retirement fund or plan, if applicable, according to applicable 93.26 actuarial requirements enumerated in section 356.215, and 93.27 specified in the most recent standards for actuarial work 93.28 adopted by the legislative commission on pensions and 93.29 retirement. The accrued assets, the accrued liabilities, 93.30 including accrued reserves, and the unfunded actuarial accrued 93.31 liability of the fund or plan must be disclosed. The disclosure 93.32 item must contain a declaration by the actuary retained by the 93.33 legislative commission on pensions and retirement or the actuary 93.34 retained by the fund or plan, whichever applies, specifying that 93.35 the required reserves for any retirement, disability, or 93.36 survivor benefits provided under a benefit formula are computed 94.1 in accordance with the entry age actuarial cost method and with 94.2 the most recent applicable standards for actuarial work adopted 94.3 by the legislative commission on pensions and retirement. 94.4(a)(b) Assets of the fund or plan contained in the 94.5 disclosure item must include the following statement of the 94.6 actuarial value of current assets as defined in section 356.215, 94.7 subdivision 1: 94.8 Value Value 94.9 at cost at market 94.10 Cash, cash equivalents, and 94.11 short-term securities ......... ......... 94.12 Accounts receivable ......... ......... 94.13 Accrued investment income ......... ......... 94.14 Fixed income investments ......... ......... 94.15 Equity investments other 94.16 than real estate ......... ......... 94.17 Real estate investments ......... ......... 94.18 Equipment ......... ......... 94.19 Equity in the Minnesota 94.20 postretirement investment 94.21 fund ......... ......... 94.22 Other ......... ......... 94.23 94.24 Total assets 94.25 Value at cost ......... 94.26 Value at market ......... 94.27 Value of current assets ......... 94.28(b)(c) The unfunded actuarial accrued liability of the 94.29 fund or plan contained in the disclosure item must include the 94.30 following measures of unfunded actuarial accrued liability, 94.31 using the value of current assets: 94.32 (1) unfunded actuarial accrued liability, determined by 94.33 subtracting the current assets and the present value of future 94.34 normal costs from the total current and expected future benefit 94.35 obligations; and 94.36 (2) unfunded pension benefit obligation, determined by 95.1 subtracting the current assets from the actuarial present value 95.2 of credited projected benefits. 95.3 If the current assets of the fund or plan exceed the 95.4 actuarial accrued liabilities, the excess must be disclosed and 95.5 indicated as a surplus. 95.6(c)(d) The pension benefit obligations schedule included 95.7 in the disclosure must contain the following information on the 95.8 benefit obligations: 95.9 (1) the pension benefit obligation, determined as the 95.10 actuarial present value of credited projected benefits on 95.11 account of service rendered to date, separately identified as 95.12 follows: 95.13 (i) for annuitants; 95.14 retirement annuities; 95.15 disability benefits; 95.16 surviving spouse and child benefits; 95.17 (ii) for former members without vested rights; 95.18 (iii) for deferred annuitants' benefits, including 95.19 any augmentation; 95.20 (iv) for active employees; 95.21 accumulated employee contributions, 95.22 including allocated investment income; 95.23 employer-financed benefits vested; 95.24 employer-financed benefits nonvested; 95.25 total pension benefit obligation; and 95.26 (2) if there are additional benefits not appropriately 95.27 covered by the foregoing items of benefit obligations, a 95.28 separate identification of the obligation. 95.29(d)(e) Any additional statements or exhibits or more 95.30 detailed or subdivided itemization of a disclosure item that 95.31 will enable the management of the fund to portray a true 95.32 interpretation of the fund's financial condition must be 95.33 included in the additional statements or exhibits. 95.34 Sec. 6. Minnesota Statutes 2000, section 356.20, 95.35 subdivision 4a, is amended to read: 95.36 Subd. 4a. [FINANCIAL REPORT FOR POLICE OR FIREFIGHTERS 96.1 RELIEF ASSOCIATION.] For any police or firefighter's relief 96.2 association referred to in subdivision 2, clause (12), a 96.3 financial report duly filedpursuant toand meeting the 96.4 requirements of section 69.051shallmust be deemed to have met 96.5 the requirements of subdivision 4. 96.6 Sec. 7. Minnesota Statutes 2000, section 356.215, as 96.7 amended by Laws 2001, First Special Session chapter 10, article 96.8 11, section 18, is amended to read: 96.9 356.215 [ACTUARIAL VALUATIONS AND EXPERIENCE STUDIES.] 96.10 Subdivision 1. [DEFINITIONS.] (a) For the purposes of 96.11 sections 3.85 and 356.20 to 356.23, each of the terms in the 96.12 following paragraphs have the meaning given. 96.13 (b) "Actuarial valuation" means a set of calculations 96.14 prepared by the actuary retained by the legislative commission 96.15 on pensions and retirement if so required under section 3.85, or 96.16 otherwise, by an approved actuary, to determine the normal cost 96.17 and the accrued actuarial liabilities of a benefit plan, 96.18 according to the entry age actuarial cost method and based upon 96.19 stated assumptions including, but not limited to rates of 96.20 interest, mortality, salary increase, disability, withdrawal, 96.21 and retirement and to determine the payment necessary to 96.22 amortize over a stated period any unfunded accrued actuarial 96.23 liability disclosed as a result of the actuarial valuation of 96.24 the benefit plan. 96.25 (c) "Approved actuary" means a person who is regularly 96.26 engaged in the business of providing actuarial services and who 96.27 has at least 15 years of service to major public employee 96.28 pension or retirement funds or who is a fellow in the society of 96.29 actuaries. 96.30 (d) "Entry age actuarial cost method" means an actuarial 96.31 cost method under which the actuarial present value of the 96.32 projected benefits of each individual currently covered by the 96.33 benefit plan and included in the actuarial valuation is 96.34 allocated on a level basis over the service of the individual, 96.35 if the benefit plan is governed by section 69.773, or over the 96.36 earnings of the individual, if the benefit plan is governed by 97.1 any other law, between the entry age and the assumed exit age, 97.2 with the portion ofthisthe actuarial present value which is 97.3 allocated to the valuation year to be the normal cost and the 97.4 portion ofthisthe actuarial present value not provided for at 97.5 the valuation date by the actuarial present value of future 97.6 normal costs to be the actuarial accrued liability, with 97.7 aggregation in the calculation process to be the sum of the 97.8 calculated result for each covered individual and with 97.9 recognition given to any different benefit formulas which may 97.10 apply to various periods of service. 97.11 (e) "Experience study" means a report providing experience 97.12 data and an actuarial analysis of the adequacy of the actuarial 97.13 assumptions on which actuarial valuations are based. 97.14 (f) "Current assets" means: 97.15 (1)for the July 1, 1999, actuarial valuation, the value of97.16all assets at cost, including realized capital gains or losses,97.17plus one-third of any unrealized capital gains or losses;97.18(2) for the July 1, 2000, actuarial valuation, the market97.19value of all assets as of June 30, 2000, reduced by:97.20(i) 60 percent of the difference between the market value97.21of all assets as of June 30, 1999, and the actuarial value of97.22assets used in the July 1, 1999, actuarial valuation, and97.23(ii) 80 percent of the difference between the actual net97.24change in the market value of assets between June 30, 1999, and97.25June 30, 2000, and the computed increase in the market value of97.26assets between June 30, 1999, and June 30, 2000, if the assets97.27had increased at the percentage preretirement interest rate97.28assumption used in the July 1, 1999, actuarial valuation;97.29(3)for the July 1, 2001, actuarial valuation, the market 97.30 value of all assets as of June 30, 2001, reduced by: 97.31 (i) 30 percent of the difference between the market value 97.32 of all assets as of June 30, 1999, and the actuarial value of 97.33 assets used in the July 1, 1999, actuarial valuation; 97.34 (ii) 60 percent of the difference between the actual net 97.35 change in the market value of assets between June 30, 1999, and 97.36 June 30, 2000, and the computed increase in the market value of 98.1 assets between June 30, 1999, and June 30, 2000, if the assets 98.2 had increased at the percentage preretirement interest rate 98.3 assumption used in the July 1, 1999, actuarial valuation; and 98.4 (iii) 80 percent of the difference between the actual net 98.5 change in the market value of assets between June 30, 2000, and 98.6 June 30, 2001, and the computed increase in the market value of 98.7 assets between June 30, 2000, and June 30, 2001, if the assets 98.8 had increased at the percentage preretirement interest rate 98.9 assumption used in the July 1, 2000, actuarial valuation; 98.10(4)(2) for the July 1, 2002, actuarial valuation, the 98.11 market value of all assets as of June 30, 2002, reduced by: 98.12 (i) ten percent of the difference between the market value 98.13 of all assets as of June 30, 1999, and the actuarial value of 98.14 assets used in the July 1, 1999, actuarial valuation; 98.15 (ii) 40 percent of the difference between the actual net 98.16 change in the market value of assets between June 30, 1999, and 98.17 June 30, 2000, and the computed increase in the market value of 98.18 assets between June 30, 1999, and June 30, 2000, if the assets 98.19 had increased at the percentage preretirement interest rate 98.20 assumption used in the July 1, 1999, actuarial valuation; 98.21 (iii) 60 percent of the difference between the actual net 98.22 change in the market value of assets between June 30, 2000, and 98.23 June 30, 2001, and the computed increase in the market value of 98.24 assets between June 30, 2000, and June 30, 2001, if the assets 98.25 had increased at the percentage preretirement interest rate 98.26 assumption used in the July 1, 2000, actuarial valuation; and 98.27 (iv) 80 percent of the difference between the actual net 98.28 change in the market value of assets between June 30, 2001, and 98.29 June 30, 2002, and the computed increase in the market value of 98.30 assets between June 30, 2001, and June 30, 2002, if the assets 98.31 had increased at the percentage preretirement interest rate 98.32 assumption used in the July 1, 2001, actuarial valuation; or 98.33(5)(3) for any actuarial valuation after July 1, 2002, the 98.34 market value of all assets as of the preceding June 30, reduced 98.35 by: 98.36 (i) 20 percent of the difference between the actual net 99.1 change in the market value of assets between the June 30 that 99.2 occurred three years earlier and the June 30 that occurred four 99.3 years earlier and the computed increase in the market value of 99.4 assets over that fiscal year period if the assets had increased 99.5 at the percentage preretirement interest rate assumption used in 99.6 the actuarial valuation for the July 1 that occurred four years 99.7 earlier; 99.8 (ii) 40 percent of the difference between the actual net 99.9 change in the market value of assets between the June 30 that 99.10 occurred two years earlier and the June 30 that occurred three 99.11 years earlier and the computed increase in the market value of 99.12 assets over that fiscal year period if the assets had increased 99.13 at the percentage preretirement interest rate assumption used in 99.14 the actuarial valuation for the July 1 that occurred three years 99.15 earlier; 99.16 (iii) 60 percent of the difference between the actual net 99.17 change in the market value of assets between the June 30 that 99.18 occurred one year earlier and the June 30 that occurred two 99.19 years earlier and the computed increase in the market value of 99.20 assets over that fiscal year period if the assets had increased 99.21 at the percentage preretirement interest rate assumption used in 99.22 the actuarial valuation for the July 1 that occurred two years 99.23 earlier; and 99.24 (iv) 80 percent of the difference between the actual net 99.25 change in the market value of assets between the immediately 99.26 prior June 30 and the June 30 that occurred one year earlier and 99.27 the computed increase in the market value of assets over that 99.28 fiscal year period if the assets had increased at the percentage 99.29 preretirement interest rate assumption used in the actuarial 99.30 valuation for the July 1 that occurred one year earlier. 99.31 (g) "Unfunded actuarial accrued liability" means the total 99.32 current and expected future benefit obligations, reduced by the 99.33 sum of current assets and the present value of future normal 99.34 costs. 99.35 (h) "Pension benefit obligation" means the actuarial 99.36 present value of credited projected benefits, determined as the 100.1 actuarial present value of benefits estimated to be payable in 100.2 the future as a result of employee service attributing an equal 100.3 benefit amount, including the effect of projected salary 100.4 increases and any step rate benefit accrual rate differences, to 100.5 each year of credited and expected future employee service. 100.6 Subd. 2. [REQUIREMENTS.] (a) It is the policy of the 100.7 legislature that it is necessary and appropriate to determine 100.8 annually the financial status of tax supported retirement and 100.9 pension plans for public employees. To achieve this goal: 100.10 (1) the legislative commission on pensions and retirement 100.11 shall have prepared by the actuary retained by the commission 100.12 annual actuarial valuations of the retirement plans enumerated 100.13 in section 3.85, subdivision 11, paragraph (b), and quadrennial 100.14 experience studies of the retirement plans enumerated in section 100.15 3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7); 100.16 and 100.17 (2) the commissioner of finance may have prepared by the 100.18 actuary retained by the commission, two years after each set of 100.19 quadrennial experience studies, quadrennial projection 100.20 valuations of at least one of the retirement plans enumerated in 100.21 section 3.85, subdivision 11, paragraph (b), for which the 100.22 commissioner determines that the analysis may be beneficial. 100.23 (b) The governing or managing board or administrative 100.24 officials of each public pension and retirement fund or plan 100.25 enumerated in section 356.20, subdivision 2, clauses (9), (10), 100.26 and (12), shall have prepared by an approved actuary annual 100.27 actuarial valuations of their respective funds as provided in 100.28 this section. This requirement also applies to any fund or plan 100.29 that is the successor to any organization enumerated in section 100.30 356.20, subdivision 2, or to the governing or managing board or 100.31 administrative officials of any newly formed retirement fund, 100.32 plan, or association operating under the control or supervision 100.33 of any public employee group, governmental unit, or institution 100.34 receiving a portion of its support through legislative 100.35 appropriations, and any local police or fire fundcoming within100.36the provisions ofto which section 356.216 applies. 101.1 Subd. 2a. [PROJECTION VALUATION REQUIREMENTS.] (a) A 101.2 quadrennial projection valuationrequiredauthorized under 101.3 subdivision 2 is intended to serve as an additional analytical 101.4 tool with which policy makers may assess the future funding 101.5 status of public plans through forecasting and testing various 101.6 potential outcomes over time if certain plan assumptions or 101.7 valuation methods were to be modified. 101.8 (b) In consultation with the retirement fund directors, the 101.9 state economist, the state demographer, the commissioner of 101.10 finance, and the commissioner of employee relations, the actuary 101.11 retained by the legislative commission on pensions and 101.12 retirement shall perform the quadrennial projection valuations 101.13 on behalf of the commissioner of finance, testing future 101.14 implications for plan funding by modifying assumptions and 101.15 methods currently in place. The commission-retained actuary 101.16 shall provide advice to the commissioner as to the periods over 101.17 which such projections should be made, the nature and scope of 101.18 the scenarios to be analyzed, and the measures of funding status 101.19 to be employed, and shall report the results of these analyses 101.20 in the same manner as for quadrennial experience studies. 101.21 Subd. 3. [REPORTS.] (a) The actuarial valuations required 101.22 annually must be made as of the beginning of each fiscal year. 101.23 (b) Two copies of the valuation must be delivered to the 101.24 executive director of the legislative commission on pensions and 101.25 retirement, to the commissioner of finance and to the 101.26 legislative reference library, not later than the first day of 101.27 the sixth month occurring after the end of the previous fiscal 101.28 year. 101.29 (c) Two copies of a quadrennial experience study must be 101.30 filed with the executive director of the legislative commission 101.31 on pensions and retirement, with the commissioner of finance, 101.32 and with the legislative reference library, not later than the 101.33 first day of the 11th month occurring after the end of the last 101.34 fiscal year of the four-year period which the experience study 101.35 covers. 101.36 (d) For actuarial valuations and experience studies 102.1 prepared at the direction of the legislative commission on 102.2 pensions and retirement, two copies of the document must be 102.3 delivered to the governing or managing board or administrative 102.4 officials of the applicable public pension and retirement fund 102.5 or plan. 102.6 Subd. 4. [ACTUARIAL VALUATION; CONTENTS.] (a) The 102.7 actuarial valuation must be made in conformity with the 102.8 requirements of the definition contained in subdivision 1 and 102.9 the most recent standards for actuarial work adopted by the 102.10 legislative commission on pensions and retirement. 102.11 (b) The actuarial valuation must measure all aspects of the 102.12 benefit plan of the fund in accordance with changes in benefit 102.13 plans, if any, and salaries reasonably anticipated to be in 102.14 force during the ensuing fiscal year. The actuarial valuation 102.15 must be prepared in accordance with the entry age actuarial cost 102.16 method. The actuarial valuation required under this section 102.17 must include the information required in subdivisions4a5 to4k102.18 15. 102.19 Subd.4a5. [NORMAL COST.] For a fund providing benefits 102.20 in whole or in part under a defined benefit plan, the actuarial 102.21 valuation must indicate the level normal cost of the benefits 102.22 providedbyunder the laws governing the fund as of the date of 102.23 the valuation, calculated in accordance with the entry age 102.24 actuarial cost method. The normal cost must be expressed as a 102.25 level percentage of the present value of future payrolls of the 102.26 active participants of the fund as of the date of the valuation. 102.27 Subd.4b6. [ACCRUED LIABILITY.] For a fund providing 102.28 benefits under a defined benefit plan, the actuarial valuation 102.29 must contain an exhibit indicating the actuarial accrued 102.30 liabilities of the fund. This figure is the present value of 102.31 future benefits,reduced by the present value of future normal 102.32 costs, calculated in accordance with the entry age actuarial 102.33 cost method. 102.34 Subd.4c7. [DEFINED CONTRIBUTION PLAN ACCUMULATIONS.] For 102.35 each fund providing benefits underthea money purchase or 102.36 defined contribution plan, the actuarial valuationshallmust 103.1 contain an exhibit indicating the member contributions 103.2 accumulated at interest, as apportioned to members accounts, to 103.3 the date of the valuation. These accumulationsshallmust be 103.4 separately tabulated in a manner which properly reflects any 103.5 differences in money purchase or defined contribution annuity 103.6 rates which may apply. 103.7 Subd.4d8. [INTEREST AND SALARY ASSUMPTIONS.] (a) The 103.8 actuarial valuation must use the applicable following 103.9 preretirement interest assumption and the applicable following 103.10 postretirement interest assumption: 103.11 preretirement postretirement 103.12 interest rate interest rate 103.13 plan assumption assumption 103.14 general state employees 103.15 retirement plan 8.5% 6.0% 103.16 correctional state employees 103.17 retirement plan 8.5 6.0 103.18 state patrol retirement plan 8.5 6.0 103.19 legislators retirement plan 8.5 6.0 103.20 elective state officers 103.21 retirement plan 8.5 6.0 103.22 judges retirement plan 8.5 6.0 103.23 general public employees 103.24 retirement plan 8.5 6.0 103.25 public employees police and fire 103.26 retirement plan 8.5 6.0 103.27 local government correctional 103.28 service retirement plan 8.5 6.0 103.29 teachers retirement plan 8.5 6.0 103.30 Minneapolis employees 103.31 retirement plan 6.0 5.0 103.32 Duluth teachers retirement plan 8.5 8.5 103.33 Minneapolis teachers retirement 103.34 plan 8.5 8.5 103.35 St. Paul teachers retirement 103.36 plan 8.5 8.5 103.37 Minneapolis police relief 103.38 association 6.0 6.0 103.39other localFairmont police relief 103.40associationsassociation 5.0 5.0 103.41 Minneapolis fire department 103.42 relief association 6.0 6.0 103.43other local salaried firefighters103.44 Virginia fire department 103.45 reliefassociationsassociation 5.0 5.0 103.46 local monthly benefit volunteer 103.47 firefighters relief associations 5.0 5.0 103.48 (b) The actuarial valuation must use the applicable 103.49 following single rate future salary increase assumption, the 103.50 applicable following modified single rate future salary increase 103.51 assumption, or the applicable following graded rate future 103.52 salary increase assumption: 103.53 (1) single rate future salary increase assumption 103.54 future salary 104.1 plan increase assumption 104.2 legislators retirement plan 5.0% 104.3 elective state officers retirement 104.4 plan 5.0 104.5 judges retirement plan 5.0 104.6 Minneapolis police relief association 4.0 104.7other localFairmont police relief 104.8associationsassociation 3.5 104.9 Minneapolis fire department relief 104.10 association 4.0 104.11other local salaried firefighters104.12 Virginia fire department 104.13 reliefassociationsassociation 3.5 104.14 (2) modified single rate future salary increase assumption 104.15 future salary 104.16 plan increase assumption 104.17 Minneapolis employees the prior calendar year 104.18 retirement plan amount increased first by 104.19 1.0198 percent to prior 104.20 fiscal year date and 104.21 then increased by 4.0 104.22 percent annually for 104.23 each future year 104.24 (3) select and ultimate future salary increase assumption 104.25 or graded rate future salary increase assumption 104.26 future salary 104.27 plan increase assumption 104.28 general state employees select calculation and 104.29 retirement plan assumption A 104.30 correctional state employees 104.31 retirement plan assumption H 104.32 state patrol retirement plan assumption H 104.33 general public employees select calculation and 104.34 retirement plan assumption B 104.35 public employees police and fire 104.36 fund retirement plan assumption C 104.37 local government correctional service 104.38 retirement plan assumption H 104.39 teachers retirement plan assumption D 104.40 Duluth teachers retirement plan assumption E 104.41 Minneapolis teachers retirement plan assumption F 104.42 St. Paul teachers retirement plan assumption G 104.43 104.44 The select calculation is: 104.45 during the ten-year select period,0.2a designated percent 104.46 is multiplied by the result of ten minus T, where T is 104.47 the number of completed years of service, and is added 104.48 to the applicable future salary increase assumption. The 104.49 designated percent is 0.2 percent for the correctional state 104.50 employees retirement plan, the state patrol retirement 104.51 plan, the public employees police and fire plan, and the 104.52 local government correctional service plan; 0.3 percent 104.53 for the general state employees retirement plan, the 104.54 general public employees retirement plan, the teachers 104.55 retirement plan, the Duluth teachers retirement fund 104.56 association, and the St. Paul teachers retirement fund 104.57 association; and 0.4 percent for the Minneapolis teachers 104.58 retirement fund association. 104.59 104.60 The ultimate future salary increase assumption is: 104.61 104.62 age A B C D E F G H 104.63 16 6.95% 6.95% 11.50% 8.20% 8.00%7.50%7.25% 7.7500 104.64 6.50 6.90 104.65 17 6.90 6.90 11.50 8.15 8.007.507.257.7500 104.66 6.50 6.90 105.1 18 6.85 6.85 11.50 8.10 8.007.507.257.7500 105.2 6.50 6.90 105.3 19 6.80 6.80 11.50 8.05 8.007.507.257.7500 105.4 6.50 6.90 105.5 20 6.756.7511.508.008.007.507.257.7500 105.6 6.40 6.00 6.90 6.50 6.90 105.7 216.706.7011.507.958.007.507.257.1454 105.8 6.75 6.40 6.00 6.90 6.50 6.90 105.9 226.656.6511.007.908.007.507.257.0725 105.10 6.75 6.40 6.00 6.90 6.50 6.90 105.11 23 6.75 6.40 10.50 6.00 6.85 6.50 6.85 7.0544 105.12 246.666.5510.007.807.807.307.207.0363 105.13 6.75 6.40 6.00 6.80 6.50 6.80 105.14 256.506.509.507.757.707.207.157.0000 105.15 6.75 6.40 6.00 6.75 6.50 6.75 105.16 266.456.459.207.707.607.107.107.0000 105.17 6.75 6.36 6.00 6.70 6.50 6.70 105.18 276.406.408.907.657.507.007.057.0000 105.19 6.75 6.32 6.00 6.65 6.50 6.65 105.20 286.356.358.607.607.406.907.007.0000 105.21 6.75 6.28 6.00 6.60 6.50 6.60 105.22 296.306.308.307.557.306.806.957.0000 105.23 6.75 6.24 6.00 6.55 6.50 6.55 105.24 306.256.308.007.507.206.706.907.0000 105.25 6.75 6.20 6.00 6.50 6.50 6.50 105.26 316.206.257.807.457.106.606.857.0000 105.27 6.75 6.16 6.00 6.45 6.50 6.45 105.28 326.156.217.607.407.006.506.807.0000 105.29 6.75 6.12 6.00 6.40 6.50 6.40 105.30 336.106.177.407.306.906.406.757.0000 105.31 6.75 6.08 6.00 6.35 6.50 6.35 105.32 346.056.097.207.106.806.306.707.0000 105.33 6.75 6.04 6.00 6.30 6.50 6.30 105.34 356.006.057.007.006.706.206.657.0000 105.35 6.75 6.00 6.00 6.25 6.50 6.25 105.36 366.956.016.806.856.606.106.606.9019 105.37 6.75 5.96 6.00 6.20 6.50 6.20 105.38 375.905.976.606.706.506.006.556.8074 105.39 6.75 5.92 6.00 6.15 6.50 6.15 105.40 385.855.936.406.556.405.906.506.7125 105.41 6.75 5.88 5.90 6.10 6.50 6.10 105.42 395.805.896.206.406.305.806.406.6054 105.43 6.75 5.84 5.80 6.05 6.50 6.05 105.44 405.755.856.006.256.205.706.306.5000 105.45 41 5.70 5.81 5.90 6.10 6.10 5.60 6.20 6.3540 105.46 6.75 5.76 5.60 5.90 6.50 5.95 105.47 425.655.775.805.956.005.506.106.2087 105.48 6.75 5.72 5.50 5.80 6.50 5.90 105.49 435.605.735.705.805.905.456.006.0622 105.50 6.65 5.68 5.40 5.70 6.50 5.85 105.51 445.555.695.605.655.805.405.905.9048 105.52 6.55 5.64 5.30 5.60 6.50 5.80 105.53 455.505.655.505.505.705.355.805.7500 105.54 6.45 5.60 5.20 5.50 6.50 5.75 105.55 465.455.625.455.455.605.305.705.6940 105.56 6.35 5.56 5.10 5.40 6.40 5.70 105.57 475.405.595.405.405.505.255.65 5.6375 105.58 6.25 5.52 5.00 5.30 6.30 105.59 485.355.565.355.355.455.205.60 5.5822 105.60 6.15 5.48 5.00 5.20 6.20 105.61 495.305.535.305.305.405.155.55 5.5404 105.62 6.05 5.44 5.00 5.10 6.10 105.63 505.255.505.255.255.355.105.50 5.5000 105.64 5.95 5.40 5.00 5.00 6.00 105.65 515.205.455.255.205.305.055.45 5.4384 105.66 5.85 5.36 5.00 5.00 5.90 105.67 525.155.405.255.155.255.005.40 5.3776 105.68 5.75 5.32 5.00 5.00 5.80 105.69 535.105.355.255.105.255.005.35 5.3167 105.70 5.65 5.28 5.00 5.00 5.70 105.71 545.055.305.255.055.255.005.30 5.2826 106.1 5.55 5.24 5.00 5.00 5.60 106.2 555.005.255.25 5.005.255.005.25 5.2500 106.3 5.45 5.20 5.00 5.50 106.4 565.005.205.25 5.005.255.005.255.2500 106.5 5.35 5.16 5.00 5.40 5.20 106.6 575.005.155.25 5.005.255.005.255.2500 106.7 5.25 5.12 5.00 5.30 5.15 106.8 585.005.105.255.005.255.005.255.2500 106.9 595.005.055.255.005.255.005.255.2500 106.10 5.25 5.04 5.20 5.00 5.10 5.05 106.11 605.005.00 5.255.005.255.005.255.2500 106.12 5.25 5.30 5.00 5.00 106.13 615.005.00 5.255.005.255.005.255.2500 106.14 5.25 5.40 5.00 5.00 106.15 625.005.00 5.255.005.255.005.255.2500 106.16 5.25 5.50 5.00 5.00 106.17 635.005.00 5.255.005.255.005.255.2500 106.18 5.25 5.60 5.00 5.00 106.19 645.005.00 5.255.005.255.005.255.2500 106.20 5.25 5.70 5.00 5.00 106.21 655.005.00 5.255.005.255.005.255.2500 106.22 5.25 5.70 5.00 5.00 106.23 665.005.00 5.255.005.255.005.255.2500 106.24 5.25 5.70 5.00 5.00 106.25 675.005.00 5.255.005.255.005.255.2500 106.26 5.25 5.70 5.00 5.00 106.27 685.005.00 5.255.005.255.005.255.2500 106.28 5.25 5.70 5.00 5.00 106.29 695.005.00 5.255.005.255.005.255.2500 106.30 5.25 5.70 5.00 5.00 106.31 705.005.00 5.255.005.255.005.255.2500 106.32 5.25 5.70 5.00 5.00 106.33 715.005.005.00106.34 5.25 5.70 106.35 (c) The actuarial valuation must use the applicable 106.36 following payroll growth assumption for calculating the 106.37 amortization requirement for the unfunded actuarial accrued 106.38 liability where the amortization retirement is calculated as a 106.39 level percentage of an increasing payroll: 106.40 payroll growth 106.41 plan assumption 106.42 general state employees retirement plan 5.00% 106.43 correctional state employees retirement plan 5.00 106.44 state patrol retirement plan 5.00 106.45 legislators retirement plan 5.00 106.46 elective state officers retirement plan 5.00 106.47 judges retirement plan 5.00 106.48 general public employees retirement plan 6.00 106.49 public employees police and fire 106.50 retirement plan 6.00 106.51 local government correctional service 106.52 retirement plan 6.00 106.53 teachers retirement plan 5.00 106.54 Duluth teachers retirement plan 5.00 106.55 Minneapolis teachers retirement plan 5.00 106.56 St. Paul teachers retirement plan 5.00 106.58 Subd.4e9. [OTHER ASSUMPTIONS.] The actuarial valuation 106.59 must use assumptions concerning mortality, disability, 106.60 retirement, withdrawal, retirement age, and any other relevant 106.61 demographic or economic factor. These assumptions must be set 107.1 at levels consistent with those determined in the most recent 107.2 quadrennial experience study completed under subdivision 5, if 107.3 required, or representative of the best estimate of future 107.4 experience, if a quadrennial experience study is not required. 107.5 The actuarial valuation must contain an exhibit indicating any 107.6 actuarial assumptions used in preparing the valuation report. 107.7 Subd.4f10. [PUBLIC SECTOR ACCOUNTING DISCLOSURE 107.8 INFORMATION.] The actuarial valuation must contain those 107.9 actuarial calculations that are necessary to allow the 107.10 retirement plan administration or participating employing units 107.11 to prepare the pension-related portions of annual financial 107.12 reporting that meet generally accepted accounting principles for 107.13 the public sector. 107.14 Subd.4g11. [AMORTIZATION CONTRIBUTIONS.] (a) In addition 107.15 to the exhibit indicating the level normal cost, the actuarial 107.16 valuation must contain an exhibit indicating the additional 107.17 annual contribution sufficient to amortize the unfunded 107.18 actuarial accrued liability. For funds governed by chapters 3A, 107.19 352, 352B, 352C, 353, 354, 354A, and 490, the additional 107.20 contribution must be calculated on a level percentage of covered 107.21 payroll basis by the established date for full funding in effect 107.22 when the valuation is prepared. For funds governed by chapter 107.23 3A, sections 352.90 through 352.951, chapters 352B, 352C, 107.24 sections 353.63 through 353.68, and chapters 353C, 354A, and 107.25 490, the level percent additional contribution must be 107.26 calculated assuming annual payroll growth of 6.5 percent. For 107.27 funds governed by sections 352.01 through 352.86 and chapter 107.28 354, the level percent additional contribution must be 107.29 calculated assuming an annual payroll growth of five percent. 107.30 For the fund governed by sections 353.01 through 353.46, the 107.31 level percent additional contribution must be calculated 107.32 assuming an annual payroll growth of six percent. For all other 107.33 funds, the additional annual contribution must be calculated on 107.34 a level annual dollar amount basis. 107.35 (b) For any fund other than the Minneapolis employees 107.36 retirement fund and the public employees retirement association 108.1 general plan, if there has not been a change in the actuarial 108.2 assumptions used for calculating the actuarial accrued liability 108.3 of the fund, a change in the benefit plan governing annuities 108.4 and benefits payable from the fund, a change in the actuarial 108.5 cost method used in calculating the actuarial accrued liability 108.6 of all or a portion of the fund, or a combination of the three, 108.7 which change or changes by itself or by themselves without 108.8 inclusion of any other items of increase or decrease produce a 108.9 net increase in the unfunded actuarial accrued liability of the 108.10 fund, the established date for full funding is the first 108.11 actuarial valuation date occurring after June 1, 2020. 108.12 (c) For any fund or plan other than the Minneapolis 108.13 employees retirement fund and the public employees retirement 108.14 association general plan, if there has been a change in any or 108.15 all of the actuarial assumptions used for calculating the 108.16 actuarial accrued liability of the fund, a change in the benefit 108.17 plan governing annuities and benefits payable from the fund, a 108.18 change in the actuarial cost method used in calculating the 108.19 actuarial accrued liability of all or a portion of the fund, or 108.20 a combination of the three, and the change or changes, by itself 108.21 or by themselves and without inclusion of any other items of 108.22 increase or decrease, produce a net increase in the unfunded 108.23 actuarial accrued liability in the fund, the established date 108.24 for full funding must be determined using the following 108.25 procedure: 108.26 (i) the unfunded actuarial accrued liability of the fund 108.27 must be determined in accordance with the plan provisions 108.28 governing annuities and retirement benefits and the actuarial 108.29 assumptions in effect before an applicable change; 108.30 (ii) the level annual dollar contribution or level 108.31 percentage, whichever is applicable, needed to amortize the 108.32 unfunded actuarial accrued liability amount determined under 108.33 item (i) by the established date for full funding in effect 108.34 before the change must be calculated using the interest 108.35 assumption specified in subdivision4d8 in effect before the 108.36 change; 109.1 (iii) the unfunded actuarial accrued liability of the fund 109.2 must be determined in accordance with any new plan provisions 109.3 governing annuities and benefits payable from the fund and any 109.4 new actuarial assumptions and the remaining plan provisions 109.5 governing annuities and benefits payable from the fund and 109.6 actuarial assumptions in effect before the change; 109.7 (iv) the level annual dollar contribution or level 109.8 percentage, whichever is applicable, needed to amortize the 109.9 difference between the unfunded actuarial accrued liability 109.10 amount calculated under item (i) and the unfunded actuarial 109.11 accrued liability amount calculated under item (iii) over a 109.12 period of 30 years from the end of the plan year in which the 109.13 applicable change is effective must be calculated using the 109.14 applicable interest assumption specified in subdivision4d8 in 109.15 effect after any applicable change; 109.16 (v) the level annual dollar or level percentage 109.17 amortization contribution under item (iv) must be added to the 109.18 level annual dollar amortization contribution or level 109.19 percentage calculated under item (ii); 109.20 (vi) the period in which the unfunded actuarial accrued 109.21 liability amount determined in item (iii) is amortized by the 109.22 total level annual dollar or level percentage amortization 109.23 contribution computed under item (v) must be calculated using 109.24 the interest assumption specified in subdivision4d8 in effect 109.25 after any applicable change, rounded to the nearest integral 109.26 number of years, but not to exceed 30 years from the end of the 109.27 plan year in which the determination of the established date for 109.28 full funding using the procedure set forth in this clause is 109.29 made and not to be less than the period of years beginning in 109.30 the plan year in which the determination of the established date 109.31 for full funding using the procedure set forth in this clause is 109.32 made and ending by the date for full funding in effect before 109.33 the change; and 109.34 (vii) the period determined under item (vi) must be added 109.35 to the date as of which the actuarial valuation was prepared and 109.36 the date obtained is the new established date for full funding. 110.1 (d) For the Minneapolis employees retirement fund, the 110.2 established date for full funding is June 30, 2020. 110.3 (e) For the general employees retirement plan of the public 110.4 employees retirement associationgeneral plan, the established 110.5 date for full funding is June 30, 2031. 110.6 (f) For the retirement plans for which the annual actuarial 110.7 valuation indicates an excess of valuation assets over the 110.8 actuarial accrued liability, the valuation assets in excess of 110.9 the actuarial accrued liability must be recognized as a 110.10 reduction in the current contribution requirements by an amount 110.11 equal to the amortization of the excess expressed as a level 110.12 percentage of pay over a 30-year period beginning anew with each 110.13 annual actuarial valuation of the plan. 110.14 Subd.4h12. [ACTUARIAL GAINS AND LOSSES.] The actuarial 110.15 valuation must contain an exhibit consisting of an analysis by 110.16 the actuary explaining the net increase or decrease in the 110.17 unfunded actuarial accrued liability since the last valuation. 110.18 The explanation must subdivide the net increase or decrease in 110.19 the unfunded actuarial accrued liability into at least the 110.20 following parts: 110.21(a)(1) increases or decreases in the unfunded actuarial 110.22 accrued liability because of changes in benefits; 110.23(b)(2) increases and decreases in the unfunded actuarial 110.24 accrued liability because of changes in actuarial assumptions; 110.25(c)(3) increases or decreases in the unfunded actuarial 110.26 accrued liability attributable to actuarial gains or losses 110.27 resulting from any experience deviations from the assumptions on 110.28 which the valuation is based, as follows: 110.29 (i) actual investment earnings; 110.30 (ii) actual postretirement mortality rates; 110.31 (iii) actual salary increase rates; and 110.32 (iv) the remainder of the increase or decrease not 110.33 attributable to any separate source; 110.34(d)(4) increases or decreases in unfunded actuarial 110.35 accrued liability because of other reasons, including the effect 110.36 of any amortization contribution paid or additional amortization 111.1 contribution previously calculated but unpaid; and 111.2(e)(5) increases or decreases in unfunded actuarial 111.3 accrued liability because of changes in eligibility requirements 111.4 or groups included in the membership of the fund. 111.5 Subd.4i13. [MEMBERSHIP TABULATION.] (a) The actuarial 111.6 valuation must contain a tabulation of active membership and 111.7 annuitants in the fund. If the membership of a fund is under 111.8 more than one general benefit program, a separate tabulation 111.9 must be made for each general benefit program. 111.10 (b) The tabulations must be prepared by the administration 111.11 of the pension fund and must contain the following information: 111.12 (1) Active members Number 111.13 As of last valuation date 111.14 New entrants 111.15 Total 111.16 Separations from active service 111.17 Refund of contributions 111.18 Separation with deferred annuity 111.19 Separation with neither refund 111.20 nor deferred annuity 111.21 Disability 111.22 Death 111.23 Retirement with service annuity 111.24 Total separations 111.25 As of current valuation date 111.26 (2) Annuitants Number 111.27 As of last valuation date 111.28 New entrants 111.29 Total 111.30 Terminations 111.31 Deaths 111.32 Other 111.33 Total terminations 111.34 As of current valuation date 111.35 (c) The tabulation required under paragraph (b), clause 111.36 (2), must be made separately for each of the following classes 112.1 of benefit recipients: 112.2 (1) service retirement annuitants; 112.3 (2) disability benefit recipients; 112.4 (3) survivor benefit recipients; and 112.5 (4) deferred annuitants. 112.6 Subd.4j14. [ADMINISTRATIVE EXPENSES.] (a) The actuarial 112.7 valuation must indicate the administrative expenses of the fund, 112.8 expressed both in dollars and as a percentage of covered payroll. 112.9 (b) Administrative expenses are the costs incurred by the 112.10 retirement plans in the course of operating the plan, excluding 112.11 investment expenses. Investment expenses include all expenses 112.12 incurred for the retention of professional external investment 112.13 managers and professional investment consultants, custodian bank 112.14 fees, investment transaction costs, and the costs incurred by 112.15 the retirement plans to manage investment portfolios or assets 112.16 internally. Investment expenses must be deducted from the 112.17 investment return used in the actuarial valuation, and must not 112.18 be included in administrative expenses when calculating the 112.19 allowance for expenses. 112.20 Subd.4k15. [BENEFIT PLAN SUMMARY.] The actuarial 112.21 valuation must contain a summary of the principal provisions of 112.22 the benefit plan upon which the valuation is based. 112.23 Subd.516. [QUADRENNIAL EXPERIENCE STUDY; CONTENTS.] A 112.24 quadrennial experience study, if required, must contain an 112.25actuarialanalysis by the approved actuary of the experience of 112.26 the fund and a comparison of the experience with the actuarial 112.27 assumptions on which the most recent actuarial valuation of the 112.28 retirement fund was based. 112.29 Subd.617. [ACTUARIAL SERVICES BY APPROVED ACTUARIES.] 112.30 (a) The actuarial valuation or quadrennial experience study must 112.31 be made and any actuarial consulting services for a retirement 112.32 fund or plan must be provided by an approved actuary. The 112.33 actuarial valuation or quadrennial experience study must include 112.34 a signed written declaration that it has been prepared according 112.35 to sections 356.20 to 356.23 and according to the most recent 112.36 standards for actuarial work adopted by the legislative 113.1 commission on pensions and retirement. 113.2 (b) Actuarial valuations,or experience studies prepared by 113.3 an approved actuary retained by a retirement fund or plan must 113.4 be submitted to the legislative commission on pensions and 113.5 retirement within ten days of the submission of the document to 113.6 the retirement fund or plan. 113.7 Subd.718. [ESTABLISHMENT OF ACTUARIAL ASSUMPTIONS.] (a) 113.8 The actuarial assumptions used for the preparation of actuarial 113.9 valuations under this section that are other than those set 113.10 forth in this section may be changed only with the approval of 113.11 the legislative commission on pensions and retirement. 113.12 (b) A change in the applicable actuarial assumptions may be 113.13 proposed by the governing board of the applicable pension fund 113.14 or relief association, by the actuary retained by the 113.15 legislative commission on pensions and retirement, by the 113.16 actuarial advisor to a pension fund governed by chapter 352, 113.17 353, 354, or 354A, or by the actuary retained by a local police 113.18 or firefighters relief association governed by sections 69.77 or 113.19 69.771 to 69.776, if one is retained. 113.20 Sec. 8. Minnesota Statutes 2000, section 356.216, is 113.21 amended to read: 113.22 356.216 [CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE 113.23 AND FIRE FUNDS.] 113.24 (a) The provisions of section 356.215governingthat govern 113.25 the contents of actuarial valuationsshallmust apply to any 113.26 local police or fire pension fund or relief association required 113.27 to make an actuarial report under this section, except as 113.28 follows: 113.29 (1) in calculating normal cost and other requirements, if 113.30 required to be expressed as a level percentage of covered 113.31 payroll, the salaries used in computing covered payrollshall113.32 must be the maximum rate of salaryfromon which retirement and 113.33 survivorship credits and amounts of benefits are determined and 113.34 from which any member contributions are calculated and deducted; 113.35 (2) in lieu of the amortization date specified in section 113.36 356.215, subdivision4g11, the appropriate amortization target 114.1 date specified in section 69.77, subdivision 2b, or 69.773, 114.2 subdivision 4, clause (c),shallmust be used in calculating any 114.3 required amortization contribution; 114.4 (3) in addition to the tabulation of active members and 114.5 annuitants provided for in section 356.215, subdivision4i13, 114.6 the member contributions for active members for the calendar 114.7 year and the prospective annual retirement annuities under the 114.8 benefit plan for active membersshallmust be reported; 114.9 (4) actuarial valuations requiredpursuant tounder section 114.10 69.773, subdivision 2,shallmust be made at least every four 114.11 years and actuarial valuations requiredpursuant tounder 114.12 section 69.77 shall be made annually;and114.13 (5) the actuarial balance sheet showing accrued assets 114.14 valued at market value if the actuarial valuation is required to 114.15 be prepared at least every four years or valued as current 114.16 assets under section 356.215, subdivision 1, clause (6), or 114.17 paragraph (b), whichever applies, if the actuarial valuation is 114.18 required to be prepared annually, actuarial accrued liabilities, 114.19 and the unfunded actuarial accrued liabilityshallmust include 114.20 the following required reserves: 114.21(a)(i) For active members 114.22 1. Retirement benefits 114.23 2. Disability benefits 114.24 3. Refund liability due to death or withdrawal 114.25 4. Survivors' benefits 114.26(b)(ii) For deferred annuitants' benefits 114.27(c)(iii) For former members without vested rights 114.28(d)(iv) For annuitants 114.29 1. Retirement annuities 114.30 2. Disability annuities 114.31 3. Surviving spouses' annuities 114.32 4. Surviving children's annuities 114.33 In addition to those required reserves, separate items 114.34shallmust be shown for additional benefits, if any, which may 114.35 not be appropriately included in the reserves listed above.; and 114.36 (6) actuarial valuationsshall beare due by the first day 115.1 of the seventh month after the end of the fiscal year which the 115.2 actuarial valuation covers. 115.3 (b) Forathe Minneapolis firefighters relief association 115.4 or the Minneapolis police relief associationin a city of the115.5first class with a population of more than 300,000, the 115.6 following provisions additionally apply: 115.7 (1) in calculating the actuarial balance sheet, unfunded 115.8 actuarial accrued liability, and amortization contribution of 115.9 the relief association, "current assets" means the value of all 115.10 assets at cost, including realized capital gains and losses, 115.11 plus or minus, whichever applies, the average value of total 115.12 unrealized capital gains or losses for the most recent 115.13 three-year period ending with the end of the plan year 115.14 immediately preceding the actuarial valuation report 115.15 transmission date; and 115.16 (2) in calculating the applicable portions of the actuarial 115.17 valuation, an annual preretirement interest assumption of six 115.18 percent, an annual postretirement interest assumption of six 115.19 percent, and an annual salary increase assumption of four 115.20 percent must be used. 115.21 Sec. 9. Minnesota Statutes 2000, section 356.217, is 115.22 amended to read: 115.23 356.217 [MODIFICATIONS IN ACTUARIAL SERVICES.] 115.24 (a) The cost of any requested benefit projections prepared 115.25 by the commission-retained actuary relating to the Minnesota 115.26 postretirement investment fundforat the request of the state 115.27 board of investment is payable by the state board of investment. 115.28 (b) Actuarial valuations under section 356.215, for July 1, 115.29 1991, and thereafter, are not required to have an individual 115.30 commentary section. The commentary section, if omitted from the 115.31 individual plan actuarialvaluationvaluations, must be included 115.32 in an appropriate generalized format as part of the report to 115.33 the legislature under section 3.85, subdivision 11. 115.34 (c) Actuarial valuations under section 356.215, for July 1, 115.35 1991, and thereafter, are not required to contain separate 115.36 actuarial valuation results for basic and coordinated programs 116.1 unless each program has a membership of at least ten percent of 116.2 the total membership of the fund. Actuarial valuations under 116.3 section 356.215, for July 1, 1991, and thereafter, are not 116.4 required to contain cash flow forecasts. 116.5 (d) Actuarial valuations of the public employees police and 116.6 fire fund local consolidation accounts for July 1, 1991, and 116.7 thereafter, are not required to contain separate tabulations or 116.8 summaries of active member, service retirement, disability 116.9 retirement, and survivor data for each local consolidation 116.10 account. 116.11 (e) The commission-retained actuary is: 116.12 (1) required to publish experience findings for those 116.13 retirement plans for which experience findings are required only 116.14 on a quadrennial basis for the four-year period ending June 30, 116.15 1992, and every four years thereafter; 116.16 (2) not required to prepare a separate experience analysis 116.17 or publish separate experience findings for basic and 116.18 coordinated programs if separate actuarial valuation results for 116.19 the programs are not required; and 116.20 (3) not required to calculate investment rate of return 116.21 experience results on any basis other than current asset value 116.22 as defined in section 356.215, subdivision 1,clause116.23(6)paragraph (f). 116.24 Sec. 10. Minnesota Statutes 2000, section 356.219, is 116.25 amended to read: 116.26 356.219 [DISCLOSURE OF PUBLIC PENSION PLAN INVESTMENT 116.27 PORTFOLIO AND PERFORMANCE INFORMATION.] 116.28 Subdivision 1. [REPORT REQUIRED.] (a) Except as indicated 116.29 in subdivision 4, the state board of investment, on behalf of 116.30 the public pension funds and programs for which it is the 116.31 investment authority, and any Minnesota public pension plan that 116.32 is not fully invested through the state board of investment, 116.33 including a local police or firefighters' relief association 116.34 governed by sections 69.77 or 69.771 to 69.775, shall report the 116.35 information specified in subdivision 3 to the state auditor. 116.36 The state auditor may prescribe a form or forms for the purposes 117.1 of the reporting requirements contained in this section. 117.2 (b) A local police or firefighters' relief association 117.3 governed by section 69.77 or sections 69.771 to 69.775 is fully 117.4 invested during a given calendar year for purposes of this 117.5 section if all assets of the applicable pension plan beyond 117.6 sufficient cash equivalent investments to cover six months 117.7 expected expenses are invested under section 11A.17. The board 117.8 of any fully invested public pension plan remains responsible 117.9 for submitting investment policy statements and subsequent 117.10 revisions as required by subdivision 3, paragraph (a). 117.11 (c) For purposes of this section, the state board of 117.12 investment is considered to be the investment authority for any 117.13 Minnesota public pension fund required to be invested by the 117.14 state board of investment under section 11A.23, or for any 117.15 Minnesota public pension fund authorized to invest in the 117.16 supplemental investment fund under section 11A.17 and which is 117.17 fully invested by the state board of investment. 117.18 Subd. 2. [ASSET CLASS DEFINITION.] (a) For purposes of 117.19 this section, "asset class" means any of the following asset 117.20 groupings as authorized in applicable law, bylaws, or articles 117.21 of incorporation: 117.22 (1) cash and any cash equivalent investments with 117.23 maturities of one year or less when issued; 117.24 (2) debt securities with maturities greater than one year 117.25 when issued, including but not limited to mortgage participation 117.26 certificates and pools, asset backed securities, guaranteed 117.27 investment contracts, and authorized government and corporate 117.28 obligations of corporations organized under laws of the United 117.29 States or any state, or the Dominion of Canada or its provinces; 117.30 (3) stocks or convertible issues of any corporation 117.31 organized under laws of the United States or any state, or the 117.32 Dominion of Canada or its provinces, or any corporation listed 117.33 on the New York Stock Exchange or the American Stock Exchange; 117.34 (4) international stocks or convertible issues; 117.35 (5) international debt securities; and 117.36 (6) real estate and venture capital. 118.1 (b) If the pension plan is investing under section 69.77, 118.2 subdivision 2g, section 69.775, or any other applicable law, in 118.3 open-end investment companies registered under the federal 118.4 Investment Company Act of 1940, or in the Minnesota supplemental 118.5 investment fund under section 11A.17, this investment must be 118.6 included under an asset class indicated in paragraph (a), 118.7 clauses (1) through (6), as appropriate. If the investment 118.8 vehicle includes underlying securities from more than one asset 118.9 class as indicated by paragraph (a), clauses (1) through (6), 118.10 the investment may be treated as a separate asset class. 118.11 Subd. 3. [CONTENT OF REPORTS.] (a) The report required by 118.12 subdivision 1 must include a written statement of the investment 118.13 policy in effect on June 30, 1997, if that statement has not 118.14 been previously submitted. Following that date, subsequent 118.15 reports must include investment policy changes and the effective 118.16 date of each policy change rather than a complete statement of 118.17 investment policy, unless the state auditor requests submission 118.18 of a complete current statement. The report must also include 118.19 the information required by the following paragraphs, as 118.20 applicable. 118.21 (b) If a public pension plan has a total market value of 118.22 $10,000,000 or more as of the beginning of the calendar year, 118.23 the report required by subdivision 1 must include the market 118.24 value of the total portfolio and the market value of each 118.25 investment account, investment portfolio, or asset class 118.26 included in the pension fund as of the beginning of the calendar 118.27 year and for each month, and the amount and date of each 118.28 injection and withdrawal to the total portfolio and to each 118.29 investment account, investment portfolio, or asset class. If a 118.30 public pension plan once files a report under this paragraph, it 118.31 must continue reporting under this paragraph for any subsequent 118.32 year in which the public pension plan is not fully invested as 118.33 specified in subdivision 1, paragraph (b), even if asset values 118.34 drop below $10,000,000 in market value inathat subsequent year. 118.35 (c) For public pension plans to which paragraph (b) 118.36 applies, the report required by subdivision 1 must also include 119.1 a calculation of the total time-weighted rate of return 119.2 available from index-matching investments assuming the asset 119.3 class performance targets and target asset mix indicated in the 119.4 written statement of investment policy. The provided 119.5 information must include a description of indices used in the 119.6 analyses and an explanation of why those indices are 119.7 appropriate. This paragraph does not apply to any fully 119.8 invested plan, as defined by subdivision 1, paragraph (b). 119.9 Reporting by the state board of investment under this paragraph 119.10 is limited to information on the Minnesota public pension plans 119.11 required to be invested by the state board of investment under 119.12 section 11A.23. 119.13 (d) If a public pension plan has a total market value of 119.14 less than $10,000,000 as of the beginning of the calendar year 119.15 and was never required to file under paragraph (b), the report 119.16 required by subdivision 1 must include the amount and date of 119.17 each total portfolio injection and withdrawal. In addition, the 119.18 report must include the market value of the total portfolio as 119.19 of the beginning of the calendar year and for each quarter. 119.20 (e) Any public pension plan reporting under paragraph (b) 119.21 or (d) may include computed time-weighted rates of return with 119.22 the report, in addition to all other required information, as 119.23 applicable. If these returns are supplied, the individual who 119.24 computed the returns must certify that the returns are net of 119.25 all costs and fees, including investment management fees, and 119.26 that the procedures used to compute the returns are consistent 119.27 with bank administration institute studies of investment 119.28 performance measurement and association of investment management 119.29 and research presentation standards. 119.30 (f) For public pension plans reporting under paragraph (d), 119.31 the public pension plan must retain supporting information 119.32 specifying the date and amount of each injection and withdrawal 119.33 to each investment account and investment portfolio. The public 119.34 pension plan must also retain the market value of each 119.35 investment account and investment portfolio at the beginning of 119.36 the calendar year and for each quarter. Information that is 120.1 required to be collected and retained for any given year or 120.2 years under this paragraph must be submitted to the office of 120.3 the state auditor if the office of the state auditor requests in 120.4 writing that the information be submitted by a public pension 120.5 plan or plans, or be submitted by the state board of investment 120.6 for any plan or plans for which the state board of investment is 120.7 the investment authority under this section. If the state 120.8 auditor requests information under this subdivision, and the 120.9 public plan fails to comply, the pension planwill beis subject 120.10 to penalties under subdivision 5, unless penalties are waived by 120.11 the state auditor under that subdivision. 120.12 Subd. 4. [ALTERNATIVE REPORTING; CERTAIN PLANS.] In lieu 120.13 of requirements in subdivision 3, the applicable administration 120.14 for the individual retirement account plans under chapters 354B 120.15 and 354D and for the University of Minnesota faculty retirement 120.16 plan shall submit computed time-weighted rates of return to the 120.17 office of the state auditor. These time-weighted rates of 120.18 return must cover the most recent complete calendar year, and 120.19 must be computed separately for each investment option available 120.20 to plan members. To the extent feasible, the returns must be 120.21 computed net of all investment costs, fees, and charges, so that 120.22 the computed return reflects the net time-weighted return 120.23 available to the investor. If this is not practical, the 120.24 existence of any remaining investment cost, fee, or charge which 120.25 could further lower the net return must be disclosed. The 120.26 procedures used to compute the returns must be consistent with 120.27 bank administration institute studies of investment performance 120.28 measurement and association of investment management and 120.29 research presentation standards, or, if applicable, securities 120.30 exchange commission requirements. The individual who computes 120.31 the returns must certify that the supplied returns comply with 120.32 this subdivision. The applicable plan administrator must also 120.33 submit, with the return information, the total amounts invested 120.34 by the plan members, in aggregate, in each investment option as 120.35 of the last day of the calendar year. 120.36 Subd. 5. [PENALTY FOR NONCOMPLIANCE.] Failure to comply 121.1 with the reporting requirements of this sectionshallmust 121.2 result in a withholding of all state aid or state appropriation 121.3 to which the pension plan may otherwise be directly or 121.4 indirectly entitled until the pension plan has complied with the 121.5 reporting requirements. The state auditor shall instruct the 121.6 commissioners of revenue and finance to withhold any state aid 121.7 or state appropriation from any pension plan that fails to 121.8 comply with the reporting requirements contained in this 121.9 section, until the pension plan has complied with the reporting 121.10 requirements. The state auditor may waive the withholding of 121.11 state aid or state appropriations if the state auditor 121.12 determines in writing that compliance would create an excessive 121.13 hardship for the pension plan. 121.14 Subd. 6. [INVESTMENT DISCLOSURE REPORT.] (a) The state 121.15 auditor shall prepare an annual report to the legislature on the 121.16 investment performance of the various public pension plans 121.17 subject to this section. The content of the report is specified 121.18 in paragraphs (b) to (e). 121.19 (b) For each public pension plan reporting under 121.20 subdivision 3, paragraph (b), the state auditor shall compute 121.21 and report total portfolio and asset class time-weighted rates 121.22 of return, net of all investment-related costs and fees. 121.23 (c) For each public pension plan reporting under 121.24 subdivision 3, paragraph (d), the state auditor shall compute 121.25 and report total portfolio time-weighted rates of return, net of 121.26 all costs and fees. If the state auditor has requested data for 121.27 a plan under subdivision 3, paragraph (f), the state auditor may 121.28 also compute and report asset class time-weighted rates of 121.29 return, net of all costs and fees. 121.30 (d) The report by the state auditor must include the 121.31 information submitted by the pension plans under subdivision 3, 121.32 paragraph (c), or a synopsis of that information. 121.33 (e) The report by the state auditor may also include a 121.34 presentation of multiyear performance, information collected 121.35 under subdivision 4, and any other information or analysis 121.36 deemed appropriate by the state auditor. 122.1 Subd. 7. [EXPENSE OF REPORT.] All administrative expenses 122.2 incurred relating to the investment report by the state auditor 122.3 described in subdivision 6 must be borne by the office of the 122.4 state auditor and may not be charged back to the entities 122.5 described in subdivisions 1 or 4. 122.6 Subd. 8. [TIMING OF REPORTS.] (a) For salaried firefighter 122.7 relief associations, police relief associations, and volunteer 122.8 firefighter relief associations, the information required under 122.9 this section must be submitted by the due date for reports 122.10 required under section 69.051, subdivision 1 or 1a, as 122.11 applicable. If a relief association satisfies the definition of 122.12 a fully invested plan under subdivision 1, paragraph (b), for 122.13 the calendar year covered by the report required under section 122.14 69.051, subdivision 1 or 1a, as applicable, the chief 122.15 administrative officer of the covered pension plan shall certify 122.16 that compliance on a form prescribed by the state auditor. The 122.17 state auditor shall transmit annually to the state board of 122.18 investment a list or lists of covered pension plans which 122.19 submitted certifications,in order to facilitate reporting by 122.20 the state board of investment under paragraph (c) of this 122.21 subdivision. 122.22 (b) For the Minneapolis teachers retirement fund 122.23 association, the St. Paul teachers retirement fund association, 122.24 the Duluth teachers retirement fund association, the Minneapolis 122.25 employees retirement fund, the University of Minnesota faculty 122.26 supplemental retirement plan, and the applicable administrators 122.27 for the University of Minnesota faculty retirement plan and the 122.28 individual retirement account plans under chapters 354B and 122.29 354D, the information required under this section must be 122.30 submitted to the state auditor by June 1 of each year. 122.31 (c) The state board of investment, on behalf of pension 122.32 funds specified in subdivision 1, paragraph (c), must report 122.33 information required under this section by September 1 of each 122.34 year. 122.35 Sec. 11. Minnesota Statutes 2000, section 356.22, is 122.36 amended to read: 123.1 356.22 [INTERPRETATION.] 123.2 Subdivision 1. [PROVISION OF ADDITIONAL VALUATIONS.] No 123.3 provision in sections 356.20 to 356.23shallmay be construedto123.4 in any way to limit any of the enumerated pension and retirement 123.5 funds from furnishing additional actuarial valuations or 123.6 experience studies, or additional data and actuarial 123.7 calculations, as may be requested by the legislature or any 123.8 standing committee or by the legislative commission on pensions 123.9 and retirement. 123.10 Subd. 2. [ACCELERATED AMORTIZATION.] No provision in 123.11 sections 356.20 to 356.23shallmay be construed to preclude any 123.12 public pension and retirement fund enumerated in section 356.20, 123.13 subdivision 2, from requesting, or the legislature from 123.14 providing for, the amortization of any unfunded actuarial 123.15 accrued liability in a shorter period of time than by the 123.16 established date for full funding as determinedpursuant to123.17 under section 356.215, subdivision4g11. 123.18 Subd. 3. [ADDITIONAL REQUIRED VALUATIONS.] The legislature 123.19 or any committee or commissionthereof now in existence or123.20hereafter createdwhich has assigned to it the subject of public 123.21 pensions or public retirement plans may require actuarial 123.22 valuations and experience studies in conformity with the 123.23 provisions of sections 356.20 to 356.23 from any public pension 123.24 and retirement plan or fund, whether enumerated in sections 123.25 356.20 to 356.23 or otherwise. 123.26 Sec. 12. Minnesota Statutes 2000, section 356.23, is 123.27 amended to read: 123.28 356.23 [SUPPLEMENTAL VALUATIONS; ALTERNATIVE REPORTS AND 123.29 VALUATIONS.] 123.30 Subdivision 1. [SUPPLEMENTAL ACTUARIAL VALUATIONS.] Any 123.31 supplemental actuarial valuations prepared on behalf of any 123.32 governing or managing board of any pension and retirement fund 123.33 enumerated in section 356.20, subdivision 2, by an approved 123.34 actuary,shallmust be prepared in accordance with the 123.35 applicable provisions of sections 356.20 to 356.23 and with the 123.36 standards adopted by the legislative commission on pensions and 124.1 retirement. Any pension and retirement fund which prepares an 124.2 alternative actuarial valuation under subdivision 2shallalso 124.3 must have a supplemental actuarial valuation prepared. 124.4 Subd. 2. [ALTERNATIVE REPORTS AND VALUATIONS.] In addition 124.5 to the financial reports and actuarial valuations required by 124.6 sections 356.20 to 356.23, the governing or managing board of 124.7 any fund concerned may submit alternative reports and actuarial 124.8 valuations for distribution to the legislature, any of its 124.9 committees, or the legislative commission on pensions and 124.10 retirement on a different basis or on different assumptions than 124.11 are specified in sections 356.20 to 356.23. The assumptions and 124.12 basis of any alternative reports and valuationsshallmust be 124.13 clearly stated in the document. 124.14 LIMITATIONS ON SUPPLEMENTAL AND 124.15 LOCAL RETIREMENT PLANS 124.16 Sec. 13. Minnesota Statutes 2001 Supplement, section 124.17 356.24, subdivision 1, is amended to read: 124.18 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 124.19 for a school district or other governmental subdivision or state 124.20 agency to levy taxes for, or to contribute public funds to a 124.21 supplemental pension or deferred compensation plan that is 124.22 established, maintained, and operated in addition to a primary 124.23 pension program for the benefit of the governmental subdivision 124.24 employees other than: 124.25 (1) to a supplemental pension plan that was established, 124.26 maintained, and operated before May 6, 1971; 124.27 (2) to a plan that provides solely for group health, 124.28 hospital, disability, or death benefits; 124.29 (3) to the individual retirement account plan established 124.30 by chapter 354B; 124.31 (4) to a plan that provides solely for severance pay under 124.32 section 465.72 to a retiring or terminating employee; 124.33 (5) for employees other than personnel employed by the 124.34 board of trustees of the Minnesota state colleges and 124.35 universities and covered under the higher education supplemental 124.36 retirement plan under chapter 354C, if the supplemental plan 125.1 coverage is provided for in a personnel policy of the public 125.2 employer or in the collective bargaining agreement between the 125.3 public employer and the exclusive representative of public 125.4 employees in an appropriate unit, in an amount matching employee 125.5 contributions on a dollar for dollar basis, but not to exceed an 125.6 employer contribution of $2,000 a year per employee; 125.7 (i) to the state of Minnesota deferred compensation plan 125.8 under section 352.96; or 125.9 (ii) in payment of the applicable portion of the 125.10 contribution made to any investment eligible under section 125.11 403(b) of the Internal Revenue Code, if the employing unit has 125.12 complied with any applicable pension plan provisions of the 125.13 Internal Revenue Code with respect to the tax-sheltered annuity 125.14 program during the preceding calendar year; 125.15 (6) for personnel employed by the board of trustees of the 125.16 Minnesota state colleges and universities and not covered by 125.17 clause (5), to the supplemental retirement plan under chapter 125.18 354C, if the supplemental plan coverage is provided for in a 125.19 personnel policy or in the collective bargaining agreement of 125.20 the public employer with the exclusive representative of the 125.21 covered employees in an appropriate unit, in an amount matching 125.22 employee contributions on a dollar for dollar basis, but not to 125.23 exceed an employer contribution of $2,700 a year for each 125.24 employee; 125.25 (7) to a supplemental plan or to a governmental trust to 125.26 save for postretirement health care expenses qualified for 125.27 tax-preferred treatment under the Internal Revenue Code, if the 125.28 supplemental plan coverage is provided for in a personnel policy 125.29 or in the collective bargaining agreement of a public employer 125.30 with the exclusive representative of the covered employees in an 125.31 appropriate unit;or125.32 (8) to the laborer's national industrial pension fund for 125.33 the employees of a governmental subdivision who are covered by a 125.34 collective bargaining agreement that provides for coverage by 125.35 that fund and that sets forth a fund contribution rate, but not 125.36 to exceed an employer contribution of $2,000 per year per 126.1 employee; 126.2 (9) to the plumbers' and pipefitters' national pension fund 126.3 for the employees of a governmental subdivision who are covered 126.4 by a collective bargaining agreement that provides for coverage 126.5 by that fund and that sets forth a fund contribution rate, but 126.6 not to exceed an employer contribution of $2,000 per year per 126.7 employee; 126.8 (10) to the international union of operating engineers 126.9 pension fund for the employees of a governmental subdivision who 126.10 are covered by a collective bargaining agreement that provides 126.11 for coverage by that fund and that sets forth a fund 126.12 contribution rate, but not to exceed an employer contribution of 126.13 $2,000 per year per employee; or 126.14 (11) to a supplemental plan organized and operated under 126.15 the federal Internal Revenue Code, as amended, that is wholly 126.16 and solely funded by the employee's accumulated sick leave, 126.17 accumulated vacation leave, and accumulated severance pay. 126.18 Sec. 14. Minnesota Statutes 2000, section 356.24, 126.19 subdivision 1b, is amended to read: 126.20 Subd. 1b. [VENDOR RESTRICTIONS.] A personnel policy for 126.21 unrepresented employeesor, a collective bargaining agreement 126.22 for represented employees, or a school board for school district 126.23 employees may establish limits on the number of vendors of plans 126.24 covered by the exceptions set forth in subdivision 1 that it 126.25 will utilize and conditions under whichthethose vendors may 126.26 contact employees both during working hours and after working 126.27 hours. 126.28 Sec. 15. Minnesota Statutes 2000, section 356.24, 126.29 subdivision 1c, is amended to read: 126.30 Subd. 1c. [STATE BOARD OF INVESTMENT REVIEW.] (a) Any 126.31 insurance company, mutual fund company, or similar company 126.32 providing investments eligible under section 403(b) of the 126.33 Internal Revenue Code and eligible to receive employer 126.34 contributions under this section may request the state board of 126.35 investment, in conjunction with the department of commerce, to 126.36 review the financial standing of the company, the 127.1 competitiveness of its investment options and returns, and the 127.2 level of all charges and fees impacting those returns. 127.3 (b) The state board of investment may establish a fee for 127.4 each review. The state board of investment must maintain and 127.5 have available a list of all reviewed companies. 127.6 (c) In reviewing companies under this section, the state 127.7 board of investment must not be considered to be acting as a 127.8 fiduciary or to be engaged in a fiduciary activity under chapter 127.9 356A or common law. 127.10 Sec. 16. Minnesota Statutes 2000, section 356.24, 127.11 subdivision 2, is amended to read: 127.12 Subd. 2. [LIMIT ON CERTAIN CONTRIBUTIONS OR BENEFIT 127.13 CHANGES.] No change in benefits or employer contributions in a 127.14 supplemental pension plan to which this section applies that 127.15 occurs after May 6, 1971, is effective without prior legislative 127.16 authorization. 127.17 Sec. 17. Minnesota Statutes 2000, section 356.245, is 127.18 amended to read: 127.19 356.245 [LOCAL ELECTED OFFICIALS.] 127.20 An elected official who is covered by section 353.01, 127.21 subdivision 2a, is eligible to participate in the state of 127.22 Minnesota deferred compensation plan under section 356.24.A127.23 The applicable local governmental unit may make the matching 127.24 employer contributions authorized by that section on the part of 127.25 a participating elected official. 127.26 Sec. 18. Minnesota Statutes 2000, section 356.25, is 127.27 amended to read: 127.28 356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 127.29 EXCLUSIONS.] 127.30 Notwithstanding any other provision of law or charter to 127.31 the contrary, no city, county, public agency or instrumentality, 127.32 or other political subdivisionshall, after August 1, 1975,is 127.33 required or permitted to establish for any of its employeesany127.34 a local pension plan or fund financed in whole or in part from 127.35 public funds, other than a volunteer firefighter's relief 127.36 association that is establishedpursuant tounder chapter 424A 128.1 and is governed by sections 69.771 to 69.776. 128.2 PUBLIC RETIREMENT PLAN PORTABILITY MECHANISMS 128.3 Sec. 19. Minnesota Statutes 2000, section 356.30, is 128.4 amended to read: 128.5 356.30 [COMBINED SERVICE ANNUITY.] 128.6 Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] (a) 128.7 Notwithstanding any provisions of the laws governing the 128.8 retirement plans enumerated in subdivision 3, a person who has 128.9 met the qualifications of paragraph (b) may elect to receive a 128.10 retirement annuity from each enumerated retirement plan in which 128.11 the person has at least one-half year of allowable service, 128.12 based on the allowable service in each plan, subject to the 128.13 provisions of paragraph (c). 128.14 (b) A person may receive, upon retirement, a retirement 128.15 annuity from each enumerated retirement plan in which the person 128.16 has at least one-half year of allowable service, and 128.17 augmentation of a deferred annuity calculated under the laws 128.18 governing each public pension plan or fund named in subdivision 128.19 3, from the date the person terminated all public service if: 128.20 (1) the person has allowable service totaling an amount 128.21 that allows the person to receive an annuity in any two or more 128.22 of the enumerated plans; and 128.23 (2) the person has not begun to receive an annuity from any 128.24 enumerated plan or the person has made application for benefits 128.25 from each applicable plan and the effective dates of the 128.26 retirement annuity with each plan under which the person chooses 128.27 to receive an annuity are within a one-year period. 128.28 (c) The retirement annuity from each plan must be based 128.29 upon the allowable service, accrual rates, and average salary in 128.30 the applicable plan except as further specified or modified in 128.31 the following clauses: 128.32 (1) the laws governing annuities must be the law in effect 128.33 on the date of termination from the last period of public 128.34 service under a covered retirement plan with which the person 128.35 earned a minimum of one-half year of allowable service credit 128.36 during that employment; 129.1 (2) the "average salary" on which the annuity from each 129.2 covered plan in which the employee has credit in a formula plan 129.3shallmust be based on the employee's highest five successive 129.4 years of covered salary during the entire service in covered 129.5 plans; 129.6 (3) the accrual rates to be used by each plan must be those 129.7 percentages prescribed by each plan's formula as continued for 129.8 the respective years of allowable service from one plan to the 129.9 next, recognizing all previous allowable service with the other 129.10 covered plans; 129.11 (4) the allowable service in all the plans must be combined 129.12 in determining eligibility for and the application of each 129.13 plan's provisions in respect to reduction in the annuity amount 129.14 for retirement prior to normal retirement age; and 129.15 (5) the annuity amount payable for any allowable service 129.16 under a nonformula plan of a covered plan must not be affected, 129.17 but such service and covered salary must be used in the above 129.18 calculation. 129.19 (d) This section does not apply to any person whose final 129.20 termination from the last public service under a covered planis129.21prior towas before May 1, 1975. 129.22 (e) For the purpose of computing annuities under this 129.23 section, the accrual rates used by any covered plan, except the 129.24 public employees police and fire plan, the judges' retirement 129.25 fund, and the state patrol retirement plan, must not exceed the 129.26 percent specified in section356.19356.315, subdivision 4, per 129.27 year of service for any year of service or fraction thereof. 129.28 The formula percentage used by the judges' retirement fund must 129.29 not exceed thepercentpercentage rate specified in section 129.30356.19356.315, subdivision 8, per year of service for any year 129.31 of service or fraction thereof. The accrual rate used by the 129.32 public employees police and fire plan and the state patrol 129.33 retirement plan must not exceed thepercentpercentage rate 129.34 specified in section356.19356.315, subdivision 6, per year of 129.35 service for any year of service or fraction thereof. The 129.36 accrual rate or rates used by the legislators retirement plan 130.1 and the elective state officers retirement plan must not exceed 130.2 2.5 percent, but this limit does not apply to the adjustment 130.3 provided under section 3A.02, subdivision 1, paragraph (c), or 130.4 352C.031, paragraph (b). 130.5 (f) Any period of time for which a person has credit in 130.6 more than one of the covered plans must be used only once for 130.7 the purpose of determining total allowable service. 130.8 (g) If the period of duplicated service credit is more than 130.9 one-half year, or the person has credit for more than one-half 130.10 year, with each of the plans, each plan must apply its formula 130.11 to a prorated service credit for the period of duplicated 130.12 service based on a fraction of the salary on which deductions 130.13 were paid to that fund for the period divided by the total 130.14 salary on which deductions were paid to all plans for the period. 130.15 (h) If the period of duplicated service credit is less than 130.16 one-half year, or when added to other service credit with that 130.17 plan is less than one-half year, the service credit must be 130.18 ignored and a refund of contributions made to the person in 130.19 accord with that plan's refund provisions. 130.20 Subd. 2. [REPAYMENT OF REFUNDS.] A person who has service 130.21 credit in one of thefundsretirement plans enumerated in 130.22 subdivision 3 and who is employed or was formerly employed in a 130.23 position covered by one of thesefundscovered plans but also 130.24 has received a refund from any other of thesefundscovered 130.25 plans, may repay the refund to the respectivefundplan under 130.26 terms and conditions that are consistent with the laws governing 130.27 the otherfundplan, except that the person need not be a 130.28 currently contributing member of thefundplan to which the 130.29 refund is repaid at the time the repayment is made. Unless 130.30 otherwise provided by statute, the repayment of a refund under 130.31 this subdivision may only be made within six months following 130.32 termination of employment from a position covered by one of the 130.33fundscovered plans enumerated in subdivision 3 or before the 130.34 date of retirement from thefundplan to which the refund is 130.35 repaid, whichever is earlier. 130.36 Subd. 2a. [PURCHASES OF PRIOR SERVICE.] If a purchase of 131.1 prior service is made under the provisions of Laws 1988, chapter 131.2 709, article 3, or any similar special or general law provision 131.3 which allows a purchase of service credit in any of thefunds131.4 retirement plans enumerated in subdivision 3, the amount of 131.5 required reserves calculated as prescribed in Laws 1988, chapter 131.6 709, article 3, must be paid to eachfundplan based on the 131.7 amount of benefit increase payable from thatfundplan as a 131.8 result of the purchase of prior service. 131.9 Subd. 3. [COVEREDFUNDSPLANS.] This section applies to 131.10 the following retirementfundsplans: 131.11 (1) the general state employees retirementfundplan of the 131.12 Minnesota state retirement system, establishedpursuant tounder 131.13 chapter 352; 131.14 (2) the correctional state employees retirementprogram131.15 plan of the Minnesota state retirement system, 131.16 establishedpursuant tounder chapter 352; 131.17 (3) the unclassified employees retirementplanprogram, 131.18 establishedpursuant tounder chapter 352D; 131.19 (4) the state patrol retirementfundplan, established 131.20pursuant tounder chapter 352B; 131.21 (5) the legislators retirement plan, establishedpursuant131.22tounder chapter 3A; 131.23 (6) the elective state officers' retirement plan, 131.24 establishedpursuant tounder chapter 352C; 131.25 (7) the general employees retirement plan of the public 131.26 employees retirement association, establishedpursuant tounder 131.27 chapter 353; 131.28 (8) the public employees police and firefundretirement 131.29 plan of the public employees retirement association, established 131.30pursuant tounder chapter 353; 131.31 (9)public employeesthe local government correctional 131.32 service retirement plan of the public employees retirement 131.33 association, establishedpursuant tounder chapter 353E; 131.34 (10) the teachers retirement association, established 131.35pursuant tounder chapter 354; 131.36 (11) the Minneapolis employees retirement fund, established 132.1pursuant tounder chapter 422A; 132.2 (12) the Minneapolis teachers retirement fund association, 132.3 establishedpursuant tounder chapter 354A; 132.4 (13) the St. Paul teachers retirement fund association, 132.5 establishedpursuant tounder chapter 354A; 132.6 (14) the Duluth teachers retirement fund association, 132.7 establishedpursuant tounder chapter 354A; and 132.8 (15) the judges' retirement fund, established by sections 132.9 490.121 to 490.132. 132.10 Sec. 20. Minnesota Statutes 2000, section 356.302, is 132.11 amended to read: 132.12 356.302 [DISABILITY BENEFIT WITH COMBINED SERVICE.] 132.13 Subdivision 1. [DEFINITIONS.] (a) The terms used in this 132.14 section are defined in this subdivision. 132.15 (b) "Average salary" means the highest average of covered 132.16 salary for the appropriate period of credited service that is 132.17 required for the calculation of a disability benefit by the 132.18 covered retirement plan and that is drawn from any period of 132.19 credited service and successive years of covered salary in a 132.20 covered retirement plan. 132.21 (c) "Covered retirement plan" or "plan" means a retirement 132.22 plan listed in subdivision 7. 132.23 (d) "Duty-related" means a disabling illness or injury that 132.24 occurred while the person was actively engaged in employment 132.25 duties or that arose out of the person's active employment 132.26 duties. 132.27 (e) "General employee retirement plan" means a covered 132.28 retirement plan listed in subdivision 7, clauses (1) to (8) and 132.29 (13). 132.30 (f) "Occupationally disabled" means the condition of having 132.31 a medically determinable physical or mental impairment that 132.32 makes a person unable to satisfactorily perform the minimum 132.33 requirements of the person's employment position or a 132.34 substantially similar employment position. 132.35 (g) "Public safety employee retirement plan" means a 132.36 covered retirement plan listed in subdivision 7, clauses (9) to 133.1(11)(12). 133.2 (h) "Totally and permanently disabled" means the condition 133.3 of having a medically determinable physical or mental impairment 133.4 that makes a person unable to engage in any substantial gainful 133.5 activity and that is expected to continue or has continued for a 133.6 period of at least one year or that is expected to result 133.7 directly in the person's death. 133.8 Subd. 2. [ENTITLEMENT.] Notwithstanding any provision of 133.9 law to the contrary governing any covered retirement plan, a 133.10 member of a covered retirement plan may receive a combined 133.11 service disability benefit from each covered retirement plan in 133.12 which the person has credit for at least one-half year of 133.13 allowable service if that person meets the applicable qualifying 133.14 conditions. Subdivision 3 applies to a member of a general 133.15 employee retirement plan. Subdivision 4 applies to a member of 133.16 a public safety employee retirement plan. Subdivision 5 applies 133.17 to a member of a covered retirement plan with both general 133.18 employee and public safety employee retirement plan service. 133.19 Subd. 3. [GENERAL EMPLOYEE PLAN ELIGIBILITY REQUIREMENTS.] 133.20 A disabled member of a covered retirement plan who has credit 133.21 for allowable service in a combination of general employee 133.22 retirement plans is entitled to a combined service disability 133.23 benefit if the member: 133.24 (1) is less than 65 years of age on the date of the 133.25 application for the disability benefit; 133.26 (2) has become totally and permanently disabled; 133.27 (3) has credit for allowable service in any combination of 133.28 general employee retirement plans totaling at least three years; 133.29 (4) has credit for at least one-half year of allowable 133.30 service with the current general employee retirement plan before 133.31 the commencement of the disability; 133.32 (5) has at least three continuous years of allowable 133.33 service credit by the general employee retirement plan or has at 133.34 least a total of three years of allowable service credit by a 133.35 combination of general employee retirement plans in a 72-month 133.36 period during which no interruption of allowable service credit 134.1 from a termination of employment exceeded 29 days; and 134.2 (6)iswas not receiving a retirement annuity or disability 134.3 benefit from any covered general employee retirement plan at the 134.4 time of the commencement of the disability. 134.5 Subd. 4. [PUBLIC SAFETY PLAN ELIGIBILITY REQUIREMENTS.] A 134.6 disabled member of a covered retirement plan who has credit for 134.7 allowable service in a combination of public safety employee 134.8 retirement plans is entitled to a combined service disability 134.9 benefit if the member: 134.10 (1) has become occupationally disabled; 134.11 (2) has credit for allowable service in any combination of 134.12 public safety employee retirement plans totaling at least one 134.13 year if the disability is duty-related or totaling at least 134.14 three years if the disability is not duty-related; 134.15 (3) has credit for at least one-half year of allowable 134.16 service with the current public safety employee retirement plan 134.17 before the commencement of the disability; and 134.18 (4)iswas not receiving a retirement annuity or disability 134.19 benefit from any covered public safety employee retirement plan 134.20 at the time of the commencement of the disability. 134.21 Subd. 5. [GENERAL AND PUBLIC SAFETY PLAN ELIGIBILITY 134.22 REQUIREMENTS.] A disabled member of a covered retirement plan 134.23 who has credit for allowable service in a combination of both a 134.24 public safety employee retirementplansplan and general 134.25 employee retirementplansplan must meet the qualifying 134.26 requirements in subdivisions 3 and 4 to receive a combined 134.27 service disability benefit from the applicable general employee 134.28 and public safety employee retirement plans, except that the 134.29 person need only be a member of a covered retirement plan at the 134.30 time of the commencement of the disability and that the minimum 134.31 allowable service requirements of subdivisions 3, clauses (3) 134.32 and (5), and 4, clauses (3) and (4), may be met in any 134.33 combination of covered retirement plans. 134.34 Subd. 6. [COMBINED SERVICE DISABILITY BENEFIT 134.35 COMPUTATION.] (a) The combined service disability benefit from 134.36 each covered retirement plan must be based on the allowable 135.1 service in each retirement plan, except as specified in 135.2 paragraphs (b) to (f). 135.3 (b) The disability benefit must be governed by the law in 135.4 effect for each covered retirement plan on the date of the 135.5 commencement of the member's most recent qualifying disability 135.6 as a member of a covered retirement plan. 135.7 (c) All plans must base the disability benefit on the same 135.8 average salary figure to the extent practicable. 135.9 (d) If the method of the covered retirement plan used to 135.10 compute a disability benefit varies based on the length of 135.11 allowable service credit, the benefit accrual formula 135.12 percentages used by the plan must recognize the allowable 135.13 service credit in the plan as a continuation of any previous 135.14 allowable service credit with other covered retirement plans. 135.15 (e) If the covered retirement plan is a defined benefit or 135.16 formula plan and the method used to compute a disability benefit 135.17 does not vary based on the length of allowable service credit, 135.18 the portion of the specified benefit amount from the plan must 135.19 bear the same proportion to the total specified benefit amount 135.20 as the allowable service credit in that plan bears to the total 135.21 allowable service credit in all covered retirement plans. If 135.22 the covered retirement plan is a defined contribution or 135.23 nonformula plan, the disability benefit amount for allowable 135.24 service under the plan is not affected, but the service and the 135.25 covered salary under the plan must be used as applicable in 135.26 calculations by other covered retirement plans. 135.27 (f) A period for which a person has allowable service 135.28 credit in more than one covered retirement plan must be used 135.29 only once in determining the total allowable service credit for 135.30 calculating the combined service disability benefit, with any 135.31 period of duplicated service credit handledunderas provided in 135.32 section 356.30, subdivision 1,clause (3), items (i) and135.33(j)paragraphs (g) and (h). 135.34 (g) If a person is entitled to a minimum benefit payable 135.35 from one of the public pension plansnamedenumerated in section 135.36 356.30, subdivision 3, the person may receive additional credit 136.1 for only those years of service in another covered pension plan 136.2 that, when added to the years of service in the pension plan 136.3 that is paying the minimum benefit, exceed the years of service 136.4 on which the minimum benefit is based. 136.5 (h) A partially employed recipient of a disability benefit 136.6 must have any current reemployment income plus the total 136.7 disabilitypaymentpayments from all planslistedenumerated in 136.8 subdivision 7 added together, and then compared to their final 136.9 salary rate as a public employee. If current income plus the 136.10 total disability payments exceed the final salary of the person 136.11 at the time of retirement, then disability benefit payments from 136.12 all the planswillmust be reduced on a prorated basis relative 136.13 to the years of service in each fund so that earnings plus 136.14 benefit payments do not exceedtheirthe final salary rate. 136.15 Subd. 7. [COVERED RETIREMENT PLANS.] This section applies 136.16 to the following retirement plans: 136.17 (1) the general state employees retirementfundplan of the 136.18 Minnesota state retirement system, established by chapter 352; 136.19 (2) the unclassified state employees retirementplan136.20 program of the Minnesota state retirement system, established by 136.21 chapter 352D; 136.22 (3) the general employees retirement plan of the public 136.23 employees retirement association, established by chapter 353; 136.24 (4) the teachers retirement association, established by 136.25 chapter 354; 136.26 (5) the Duluth teachers retirement fund association, 136.27 established by chapter 354A; 136.28 (6) the Minneapolis teachers retirement fund association, 136.29 established by chapter 354A; 136.30 (7) the St. Paul teachers retirement fund association, 136.31 established by chapter 354A; 136.32 (8) the Minneapolis employees retirement fund, established 136.33 by chapter 422A; 136.34 (9) the state correctional employees retirement plan of the 136.35 Minnesota state retirement system, established by chapter 352; 136.36 (10) the state patrol retirementfundplan, established by 137.1 chapter 352B; 137.2 (11) the public employees police and firefundplan of the 137.3 public employees retirement association, established by chapter 137.4 353; 137.5 (12)public employeesthe local government correctional 137.6 service retirement plan of the public employees retirement 137.7 association, established by chapter 353E; and 137.8 (13) the judges' retirementfundplan, established by 137.9 sections 490.121 to 490.132. 137.10 Sec. 21. Minnesota Statutes 2000, section 356.303, is 137.11 amended to read: 137.12 356.303 [SURVIVOR BENEFIT WITH COMBINED SERVICE.] 137.13 Subdivision 1. [DEFINITIONS.] (a) The terms used in this 137.14 section are defined in this subdivision. 137.15 (b) "Average salary" means the highest average of covered 137.16 salary for the appropriate period of credited service that is 137.17 required for the calculation of a survivor annuity or a survivor 137.18 benefit, whichever applies, by the covered retirement plan and 137.19 that is drawn from any period of credited service and covered 137.20 salary in a covered retirement plan. 137.21 (c) "Covered retirement plan" or "plan" means a retirement 137.22 planlistedenumerated in subdivision 4. 137.23 (d) "Deceased member" means a person who on the date of 137.24 death was an active member of a covered retirement plan and who 137.25 has reached the minimum age, if any, that is required by the 137.26 covered retirement plan as part of qualifying for a survivor 137.27 annuity or survivor benefit. 137.28 (e) "Surviving child" means a child of a deceased member 137.29 (1) who is unmarried,; (2) who has not reached age 18, or, if a 137.30 full-time student, who has not reached a higher age as specified 137.31inby the applicable covered retirement plan,; and (3) if 137.32 specified by that plan, who was actually dependent on the 137.33 deceased member for a specified proportion of support before the 137.34 deceased member's death. "Surviving child" includes a natural 137.35 child, an adopted child, or a child of a deceased member who is 137.36 conceived during the member's lifetime and who is born after the 138.1 member's death. 138.2 (f) "Surviving spouse" means the legally married husband or 138.3 wife, whichever applies, of the deceased member who was residing 138.4 with the deceased member on the date of death and who, if 138.5 specified by the applicable covered retirement plan, had been 138.6 married to the deceased member for a specified period of time 138.7 before the death of the deceased member. 138.8 (g) "Survivor annuity" means the entitlement to a future 138.9 amount payable to a survivor as the remainder interest of an 138.10 optional annuity form implied by law as having been chosen by a 138.11 deceased member before the date of death and effective on the 138.12 date of death or provided automatically. 138.13 (h) "Survivor benefit" means an entitlement to a future 138.14 amount payable to a survivor that is not included in the 138.15 definition of a survivor annuity. 138.16 Subd. 2. [ENTITLEMENT; ELIGIBILITY.] Notwithstanding 138.17 any provision of law to the contrary governing a covered 138.18 retirement plan, a person who is the survivor of a deceased 138.19 member of a covered retirement plan may receive a combined 138.20 service survivor benefit from each covered retirement plan in 138.21 which the deceased member had credit for at least one-half year 138.22 of allowable service if the deceased member: 138.23 (1) had credit for sufficient allowable service in any 138.24 combination of covered retirement plans to meet any minimum 138.25 allowable service credit requirement of the covered retirement 138.26 fund for qualification for a survivor benefit or annuity; 138.27 (2) had credit for at least one-half year of allowable 138.28 service with the most recent covered retirement plan before the 138.29 date of death and was an active member of that covered 138.30 retirement plan on the date of death; and 138.31 (3) was not receiving a retirement annuity from any covered 138.32 retirement plan on the date of death. 138.33 Subd. 3. [COMBINED SERVICE SURVIVOR BENEFIT COMPUTATION.] 138.34 (a) The combined service survivor annuity or survivor benefit 138.35 from each covered retirement plan must be based on the allowable 138.36 service in each covered retirement plan, except as provided by 139.1 paragraphs (b) to (f). 139.2 (b) The survivor annuity or survivor benefit must be 139.3 governed by the law in effect for each covered retirement plan 139.4 on the date of the death of the deceased member. 139.5 (c) All plans must base the survivor annuity or survivor 139.6 benefit on the same average salary figure if the annuity or 139.7 benefit is salary related. 139.8 (d) If the method of the covered retirement plan used to 139.9 compute a survivor benefit or annuity varies based on the length 139.10 of allowable service credit, the benefit accrual formula 139.11 percentages used by the plan must recognize the allowable 139.12 service credit in the plan as a continuation of any previous 139.13 allowable service credit with other covered retirement plans. 139.14 (e) If the covered retirement plan is a defined benefit or 139.15 formula plan and the method used to compute a survivor benefit 139.16 or annuity does not vary based on the length of allowable 139.17 service credit, the portion of the specified benefit or annuity 139.18 amount from the covered retirement plan must bear the same 139.19 proportion to the total specified benefit or annuity amount as 139.20 the allowable service credit in that plan bears to the total 139.21 allowable service credit in all covered retirement plans. If 139.22 the covered retirement plan is a defined contribution or 139.23 nonformula plan, the survivor benefit amount for allowable 139.24 service under the plan is not affected, but the service and 139.25 covered salary under the plan must be used in calculations by 139.26 other covered retirement plans. 139.27 (f) A period for which aperson hasdeceased member had 139.28 allowable service credit in more than one covered retirement 139.29 plan must be used only once in determining the total allowable 139.30 service credit for calculating the combined service survivor 139.31 annuity or survivor benefit. A period of duplicated service 139.32 credit must be handled as provided in section 356.30, 139.33 subdivision 1,clause (3), items (i) and (j)paragraphs (g) and 139.34 (h). 139.35 (g) If a person is entitled to a minimum benefit payable 139.36 from a public pension plan named in section 356.30, subdivision 140.1 3, the person may receive additional credit for only those years 140.2 of service in another covered pension plan that, when added to 140.3 the years of service in the pension plan that is paying the 140.4 minimum benefit, exceed the years of service on which the 140.5 minimum benefit is based. 140.6 Subd. 4. [COVERED RETIREMENT PLANS.] This section applies 140.7 to the following retirement plans: 140.8 (1) the legislators retirement plan, established by chapter 140.9 3A; 140.10 (2) the general state employees retirementfundplan of the 140.11 Minnesota state retirement system, established by chapter 352; 140.12 (3) the correctional state employees retirement plan of the 140.13 Minnesota state retirement system, established by chapter 352; 140.14 (4) the state patrol retirementfundplan, established by 140.15 chapter 352B; 140.16 (5) the elective state officers retirement plan, 140.17 established by chapter 352C; 140.18 (6) the unclassified state employees retirementplan140.19 program, established by chapter 352D; 140.20 (7) the general employees retirement plan of the public 140.21 employees retirement association, established by chapter 353; 140.22 (8) the public employees police and firefundplan of the 140.23 public employees retirement association, established by chapter 140.24 353; 140.25 (9)public employeesthe local government correctional 140.26 service retirement plan of the public employees retirement 140.27 association, established by chapter 353E; 140.28 (10) the teachers retirement association, established by 140.29 chapter 354; 140.30 (11) the Duluth teachers retirement fund association, 140.31 established by chapter 354A; 140.32 (12) the Minneapolis teachers retirement fund association, 140.33 established by chapter 354A; 140.34 (13) the St. Paul teachers retirement fund association, 140.35 established by chapter 354A; 140.36 (14) the Minneapolis employees retirement fund, established 141.1 by chapter 422A; and 141.2 (15) the judges' retirement fund, established by sections 141.3 490.121 to 490.132. 141.4 RETIREMENT ANNUITIES 141.5 Sec. 22. [356.315] [RETIREMENT BENEFIT FORMULA 141.6 PERCENTAGES.] 141.7 Subdivision 1. [COORDINATED PLAN MEMBERS.] The applicable 141.8 benefit accrual rate is 1.2 percent. 141.9 Subd. 2. [COORDINATED PLAN MEMBERS.] The applicable 141.10 benefit accrual rate is 1.7 percent. 141.11 Subd. 2a. [COORDINATED MEMBERS.] The applicable benefit 141.12 accrual rate is 2.0 percent. 141.13 Subd. 3. [BASIC PLAN MEMBERS.] The applicable benefit 141.14 accrual rate is 2.2 percent. 141.15 Subd. 4. [BASIC PLAN MEMBERS.] The applicable benefit 141.16 accrual rate is 2.7 percent. 141.17 Subd. 5. [CORRECTIONAL PLAN MEMBERS.] The applicable 141.18 benefit accrual rate is 2.4 percent. 141.19 Subd. 5a. [LOCAL GOVERNMENT CORRECTIONAL SERVICE PLAN.] 141.20 The applicable benefit accrual rate is 1.9 percent. 141.21 Subd. 6. [STATE TROOPERS PLAN AND POLICE AND FIRE PLAN 141.22 MEMBERS.] The applicable benefit accrual rate is 3.0 percent. 141.23 Subd. 7. [JUDGES PLAN.] The applicable benefit accrual 141.24 rate is 2.7 percent. 141.25 Subd. 8. [JUDGES PLAN.] The applicable benefit accrual 141.26 rate is 3.2 percent. 141.27 Subd. 9. [FUTURE BENEFIT ACCRUAL RATE INCREASES.] After 141.28 January 2, 1998, benefit accrual rate increases under this 141.29 section must apply only to allowable service or formula service 141.30 rendered after the effective date of the benefit accrual rate 141.31 increase. 141.32 Sec. 23. Minnesota Statutes 2000, section 356.32, is 141.33 amended to read: 141.34 356.32 [PROPORTIONATE ANNUITY AT AGE 65.] 141.35 Subdivision 1. [PROPORTIONATE RETIREMENT ANNUITY.] (a) 141.36 Notwithstanding any provision to the contrary of the laws 142.1 governing any of the retirement fundsreferred toenumerated in 142.2 subdivision 2, any person who is an active member of any 142.3 applicable fund, who has credit for at least one year but less 142.4 than ten years of allowable service in one or more of 142.5 theapplicable fundscovered plans, and who terminates active 142.6 servicepursuant tounder a mandatory retirement law or policy 142.7 or at age 65 or older, or at the normal retirement age if this 142.8 age is not age 65, for any reasonshall beis entitled upon 142.9 making written application on the form prescribed byexecutive142.10director or executive secretarythe chief administrative officer 142.11 of thefundplan to a proportionate retirement annuity from each 142.12applicable fundcovered plan in which the person has allowable 142.13 service credit. 142.14 (b) The proportionate annuityshallmust be calculated 142.15 under the applicable laws governing annuities based upon 142.16 allowable service credit at the time of retirement and the 142.17 person's average salary for the highest five successive years of 142.18 allowable service or the average salary for the entire period of 142.19 allowable service if less than five years. 142.20 (c) Nothing in this sectionshall preventprevents the 142.21 imposition of the appropriate early retirement reduction of an 142.22 annuity which commencesprior tobefore the normal retirement 142.23 age. 142.24 Subd. 2. [COVEREDFUNDSRETIREMENT PLANS.] The provisions 142.25 of this sectionshallapply to the following retirement 142.26fundsplans: 142.27 (1) the general state employees retirementfundplan of the 142.28 Minnesota state retirement system, establishedpursuant tounder 142.29 chapter 352; 142.30 (2) the correctional state employees retirementprogram142.31 plan of the Minnesota state retirement system, established 142.32pursuant tounder chapter 352; 142.33 (3) the state patrol retirementfundplan, 142.34 establishedpursuant tounder chapter 352B; 142.35 (4) the general employees retirement plan of the public 142.36 employees retirementfundassociation, establishedpursuant to143.1 under chapter 353; 143.2 (5) the public employees police and firefundplan of the 143.3 public employees retirement association, establishedpursuant to143.4 under chapter 353; 143.5 (6) the teachers retirement association, established 143.6pursuant tounder chapter 354; 143.7 (7) the Minneapolis employees retirement fund, established 143.8pursuant tounder chapter 422A; 143.9 (8) the Duluth teachers retirement fund association, 143.10 establishedpursuant tounder chapter 354A; 143.11 (9) the Minneapolis teachers retirement fund association, 143.12 establishedpursuant tounder chapter 354A; and 143.13 (10) the St. Paul teachers retirement fund association, 143.14 establishedpursuant tounder chapter 354A. 143.15 Sec. 24. Minnesota Statutes 2000, section 356.40, is 143.16 amended to read: 143.17 356.40 [DATE FOR PAYMENT OF ANNUITIES AND BENEFITS.] 143.18 (a) Notwithstanding any law to the contrary, all annuities 143.19 and benefits payable on and after December 1, 1977 by a covered 143.20 retirement fund, as defined in section 356.30, subdivision 3, 143.21shallmust be paid in advance for each month during the first 143.22 week of that month. The bylaws ofmunicipallocal retirement 143.23 fundsshallmust be amended accordingly. 143.24 (b) In no event, however,shallmay this sectionauthorize143.25more than one payment in any one month where the law governing143.26the applicable retirement fund as of June 30, 1977 already143.27provides for the full payment or accrual of annuities and143.28benefits in advance for each month or as of the first day of the143.29month, nor shall itauthorize the payment of both a retirement 143.30 annuity and a surviving spouse's benefit in one month where the 143.31 law governing the applicable retirement fund provides for the 143.32 payment of the retired member's retirement annuity to the 143.33 surviving spouse for the month in which the retired member dies. 143.34 Sec. 25. [356.403] [NORMAL RETIREMENT AGE; SAVINGS 143.35 CLAUSE.] 143.36 The intent of the legislature in sections 352.01, 144.1 subdivision 25; 353.01, subdivision 37; 354.05, subdivision 38; 144.2 and 354A.011, subdivision 15a, is to create a normal retirement 144.3 age for persons first covered by those sections after May 16, 144.4 1989, that is the same as the retirement age in the federal 144.5 Social Security law, including future amendments to that law. 144.6 If a court determines that the legislature may not incorporate 144.7 by reference the future changes in federal Social Security law, 144.8 the legislature reserves the right to amend the appropriate 144.9 sections to make the normal retirement age conform to the 144.10 retirement age in the federal Social Security law. No person 144.11 first covered by any of those sections after May 16, 1989, has a 144.12 right to a normal retirement age that is less than the 144.13 retirement age in the federal Social Security law. 144.14 Sec. 26. [356.405] [COMBINED PAYMENT OF RETIREMENT 144.15 ANNUITIES.] 144.16 (a) The public employees retirement association and the 144.17 Minnesota state retirement system are permitted to combine 144.18 payments to retirees. The total payment must be equal to the 144.19 amount that is payable if payments were kept separate. The 144.20 retiree must agree, in writing, to have the payment combined. 144.21 (b) Each plan must calculate the benefit amounts under the 144.22 laws governing the plan and the required reserves and future 144.23 mortality losses or gains must be paid or accrued to the plan 144.24 from which the service was earned. Each plan must account for 144.25 its portion of the payment separately, and there may be no 144.26 additional actuarial liabilities realized by either plan. 144.27 (c) The plan making the payment would be responsible for 144.28 issuing one payment and making address changes, tax withholding 144.29 changes, and other administrative functions needed to process 144.30 the payment. 144.31 SURVIVOR BENEFITS 144.32 Sec. 27. [356.406] [LOSS OF ENTITLEMENT TO BENEFITS FOR 144.33 SURVIVOR CAUSING DEATH OF PENSION PLAN MEMBER.] 144.34 Subdivision 1. [DEFINITIONS.] (a) Each of the words or 144.35 terms defined in this subdivision has the meaning indicated. 144.36 (b) "Public pension plan" means any retirement plan or fund 145.1 enumerated in section 356.20, subdivision 2, or 356.30, 145.2 subdivision 3, any relief association governed by section 69.77 145.3 or sections 69.771 to 69.775, any retirement plan governed by 145.4 chapter 354B or 354C, the Hennepin county supplemental 145.5 retirement plan governed by sections 383B.46 to 383B.52, or any 145.6 housing and redevelopment authority retirement plan. 145.7 (c) "Public pension plan member" means a person who is a 145.8 participant covered by a public pension plan; a former 145.9 participant of a public pension plan who has sufficient service 145.10 to be entitled to receive a future retirement annuity or service 145.11 pension; a recipient of a retirement annuity, service pension, 145.12 or disability benefit from a public pension plan; or a former 145.13 participant of a public pension plan who has member or employee 145.14 contributions to the person's credit in the public pension plan. 145.15 (d) "Survivor" means the surviving spouse, a former spouse, 145.16 a surviving child, a joint annuitant, a designated recipient of 145.17 a second or remainder portion of an optional annuity form, a 145.18 beneficiary, or the estate of a deceased public pension plan 145.19 member, as those terms are commonly understood or defined in the 145.20 benefit plan document of the public pension plan. 145.21 (e) "Survivor benefit" means a surviving spouse benefit, 145.22 surviving child benefit, second or remainder portion of an 145.23 optional annuity form, death benefit, funeral benefit, or refund 145.24 of member or employee contributions payable on account of the 145.25 death of a public pension plan member as provided for in the 145.26 benefit plan document of the public pension plan. 145.27 Subd. 2. [SUSPENSION OF SURVIVOR BENEFITS UPON FELONY 145.28 CHARGE.] During the pendency of a charge of a survivor of a 145.29 felony that caused the death of a public pension plan member, of 145.30 criminal liability for a death by wrongful act felony, or of 145.31 conspiracy to commit a death by wrongful act felony, the 145.32 entitlement of that survivor to receive a survivor benefit is 145.33 suspended. 145.34 Subd. 3. [FORFEITURE OF SURVIVOR BENEFITS UPON FELONY 145.35 CONVICTION.] On final conviction of a survivor of a felony that 145.36 caused the death of a public pension plan member, of criminal 146.1 liability for a death by wrongful act felony, or of conspiracy 146.2 to commit a death by wrongful act felony, the entitlement of 146.3 that survivor to receive a survivor benefit is forfeited, 146.4 including entitlement for any previously suspended survivor 146.5 benefits under subdivision 2. 146.6 Subd. 4. [SUSPENSION OR FORFEITURE ACTIONS SEPARATE.] The 146.7 charge of one survivor under subdivision 2 or the conviction of 146.8 one survivor under subdivision 3 does not affect the entitlement 146.9 of another survivor to a survivor benefit. 146.10 Subd. 5. [RECOVERY OF CERTAIN BENEFITS.] If monthly 146.11 benefits or a refund of the balance of a participant or former 146.12 participant's account have already been paid to an individual 146.13 who is later charged or convicted as described under this 146.14 section, the executive director or chief administrative officer 146.15 of the public pension plan shall attempt to recover the amounts 146.16 paid. Payment may be made to the next beneficiary or survivor 146.17 only in an amount equal to the amount recovered and in the 146.18 amount of any future payments that would legally accrue to 146.19 another survivor under the applicable laws of the retirement 146.20 plan. 146.21 Subd. 6. [DISPOSITION OF FORFEITED SURVIVOR BENEFITS.] If 146.22 the benefit plan document governing the public pension plan does 146.23 not provide for the disposition of forfeited benefits, survivor 146.24 benefits forfeited under this section must be deposited in the 146.25 general fund of the state. 146.26 Sec. 28. [356.407] [RESTORATION OF SURVIVOR BENEFITS.] 146.27 Subdivision 1. [RESTORATION UPON TERMINATION OF 146.28 REMARRIAGE.] Notwithstanding any provision to the contrary of 146.29 the laws governing any of the retirement plans enumerated in 146.30 subdivision 2, any person who was receiving a surviving spouse's 146.31 benefit from any of those plans and whose benefit terminated 146.32 solely because of remarriage is, if the remarriage terminates 146.33 for any reason, again entitled upon reapplication to a surviving 146.34 spouse's benefit; provided, however, that the person is not 146.35 entitled to retroactive payments for the period of remarriage. 146.36 The benefit resumes at the level which the person would have 147.1 been receiving if there had been no remarriage. This section 147.2 applies prospectively to any person who first becomes entitled 147.3 to receive a surviving spouse's benefit on or after May 18, 147.4 1975, and also applies retroactively to any person who first 147.5 became entitled to receive a surviving spouse's benefit before 147.6 May 18, 1975; provided, however, that no person is entitled to 147.7 retroactive payments for any period of time before May 18, 1975. 147.8 Subd. 2. [COVERED FUNDS.] The provisions of this section 147.9 apply to the following retirement funds: 147.10 (1) the general employees retirement plan of the public 147.11 employees retirement association established under chapter 353; 147.12 (2) the public employees police and fire plan of the public 147.13 employees retirement association established under chapter 353; 147.14 (3) the state patrol retirement plan established under 147.15 chapter 352B; 147.16 (4) the legislators retirement plan established under 147.17 chapter 3A; 147.18 (5) the elective state officers retirement plan established 147.19 under chapter 352C; 147.20 (6) the teachers retirement association established under 147.21 chapter 354; and 147.22 (7) the Minneapolis employees retirement fund established 147.23 under chapter 422A. 147.24 POSTRETIREMENT INCREASES 147.25 Sec. 29. Minnesota Statutes 2000, section 356.41, is 147.26 amended to read: 147.27 356.41 [BENEFIT ADJUSTMENTS FOR CERTAIN DISABILITY AND 147.28 SURVIVOR BENEFITS.] 147.29 Disability benefits payable to a disabilitant, if not 147.30 otherwise included in the participation in the Minnesota 147.31 postretirement investment fund, and survivor benefits payable to 147.32 a survivor from any public pensionfundplan which participates 147.33 in the Minnesota postretirement investment fundshallmust be 147.34 adjusted in the same manner, at the same times and in the same 147.35 amounts as are benefits payable from the Minnesota 147.36 postretirement investment fund to eligible benefit recipients of 148.1 that public pensionfundplan. If a disability benefit is not 148.2 included in the participation in the Minnesota postretirement 148.3 investment fund, the disability benefit is recomputed as a 148.4 retirement annuity and the recipient would have been eligible 148.5 for an adjustmentpursuant tounder this section if the 148.6 disability benefit was not recomputed, the recipientwill148.7continue to beremains eligible for the adjustmentpursuant to148.8 under this section after the recomputation. For the survivor of 148.9 a deceased annuitant who receives a survivor benefit 148.10 calculatedpursuant tounder a prior law rather than the second 148.11 portion of a joint and survivor annuity, any period of receipt 148.12 of a retirement annuity by the annuitantshallmust be utilized 148.13 in determining the period of receipt for eligibility to receive 148.14 an adjustmentpursuant tounder this section. No recipient 148.15shall, however,beis entitled to more than one adjustment 148.16pursuant tounder this section or section 11A.18 applicable to 148.17 one benefit at one time by reason of this section. 148.18 Sec. 30. [356.42] [POSTRETIREMENT ADJUSTMENT; LUMP SUM 148.19 PAYMENTS.] 148.20 Subdivision 1. [ENTITLEMENT.] A person who is receiving a 148.21 retirement annuity, a disability benefit, or a surviving 148.22 spouse's annuity or benefit from a retirement fund specified in 148.23 subdivision 3, clauses (1) to (8), is entitled to receive a 148.24 postretirement adjustment from the applicable retirement fund in 148.25 the amount specified in subdivision 2, if the annuity or benefit 148.26 was computed under: 148.27 (1) the laws in effect before June 1, 1973, if the person 148.28 is receiving an annuity or benefit from the retirement fund 148.29 specified in subdivision 3, clause (4); 148.30 (2) the laws in effect before July 1, 1973, if the person 148.31 is receiving an annuity or benefit from a retirement fund 148.32 specified in subdivision 3, clause (1), (2), (3), or (5); 148.33 (3) the metropolitan transit commission transit operating 148.34 division employees retirement fund plan document in effect on or 148.35 before December 31, 1977, if the person is receiving a 148.36 retirement annuity, a disability benefit, or a surviving 149.1 spouse's annuity or benefit from the retirement fund specified 149.2 in subdivision 3, clause (5); 149.3 (4) the laws in effect before May 1, 1974, and before any 149.4 adjustment under Laws 1987, chapter 372, article 3, if the 149.5 person is receiving an annuity or benefit from the retirement 149.6 fund specified in subdivision 3, clause (6); 149.7 (5) the laws in effect before January 1, 1970, if the 149.8 person is receiving an annuity or benefit from the retirement 149.9 fund specified in subdivision 3, clause (7); or 149.10 (6) the laws in effect before June 30, 1971, if the person 149.11 is receiving an annuity or benefit from the retirement fund 149.12 specified in subdivision 3, clause (8). 149.13 Subd. 2. [AMOUNT OF POSTRETIREMENT ADJUSTMENT; PAYMENT.] 149.14 (a) For any person receiving an annuity or benefit on November 149.15 30, 1989, and entitled to receive a postretirement adjustment 149.16 under subdivision 1, the postretirement adjustment is a lump-sum 149.17 payment calculated under paragraph (b) or (c). 149.18 (b) For coordinated plan annuity or benefit recipients, the 149.19 postretirement adjustment in 1989 is $25 for each full year of 149.20 allowable service credited to the person by the respective 149.21 retirement fund. In 1990 and each following year, the 149.22 postretirement adjustment is the amount payable in the preceding 149.23 year increased by the same percentage applied to regular 149.24 annuities paid from the postretirement fund or, for the 149.25 retirement funds specified in subdivision 3, clauses (6), (7), 149.26 and (8), by the same percentage applied under the articles of 149.27 incorporation and bylaws of these funds. 149.28 (c) For basic plan annuity or benefit recipients, the 149.29 postretirement adjustment in 1989 is the greater of: 149.30 (1) $25 for each full year of allowable service credited to 149.31 the person by the respective retirement fund; or 149.32 (2) the difference between: 149.33 (i) the product of $400 times the number of full years of 149.34 allowable service credited to the person by the respective 149.35 retirement fund; and 149.36 (ii) the sum of the benefits payable to the person from any 150.1 Minnesota public employee pension plan, and cash benefits 150.2 payable to the person from the Social Security Administration. 150.3 In 1990 and each following year, each eligible basic plan 150.4 annuity or benefit recipient shall receive the amount received 150.5 in the preceding year increased by the same percentage applied 150.6 to regular annuities paid from the postretirement fund or, for 150.7 the retirement funds specified in subdivision 3, clauses (6), 150.8 (7), and (8), by the same percentage applied under the articles 150.9 of incorporation and bylaws of these funds. 150.10 (d) The postretirement adjustment provided for in this 150.11 section must be paid on December 1 to those persons receiving an 150.12 annuity or benefit on the preceding November 30. This section 150.13 does not authorize the payment of a postretirement adjustment to 150.14 an estate if the annuity or benefit recipient dies before the 150.15 November 30 eligibility date. The postretirement adjustment 150.16 provided for in this section must be paid automatically unless 150.17 the intended recipient files a written notice with the 150.18 retirement fund requesting that the postretirement adjustment 150.19 not be paid or returns the amount of adjustment to the 150.20 retirement fund. Written notice of the waiver of the 150.21 postretirement adjustment is irrevocable for the year during 150.22 which it was made. 150.23 Subd. 3. [COVERED RETIREMENT PLANS.] The postretirement 150.24 adjustment provided in this section applies to the following 150.25 retirement funds: 150.26 (1) the general employees retirement plans of the public 150.27 employees retirement association; 150.28 (2) the public employees police and fire plan of the public 150.29 employees retirement association; 150.30 (3) the teachers retirement association; 150.31 (4) the state patrol retirement plan; 150.32 (5) the state employees retirement plan of the Minnesota 150.33 state retirement system; 150.34 (6) the Minneapolis teachers retirement fund association 150.35 established under chapter 354A; 150.36 (7) the St. Paul teachers retirement fund association 151.1 established under chapter 354A; and 151.2 (8) the Duluth teachers retirement fund association 151.3 established under chapter 354A. 151.4 Sec. 31. [356.43] [SUPPLEMENTAL BENEFIT; LUMP-SUM 151.5 PAYMENTS; MINNEAPOLIS EMPLOYEES RETIREMENT FUND.] 151.6 Subdivision 1. [ENTITLEMENT.] Any person who is receiving 151.7 either an annuity that was computed under the laws in effect 151.8 before March 5, 1974, or a "$2 bill and annuity" annuity from 151.9 the Minneapolis employees retirement fund is entitled to receive 151.10 a supplemental benefit lump-sum payment from the retirement fund 151.11 in the amount specified in subdivision 2. 151.12 Subd. 2. [AMOUNT OF PAYMENT.] (a) For any person receiving 151.13 an annuity or benefit on November 30, 1991, and entitled to 151.14 receive a supplemental benefit lump-sum payment under 151.15 subdivision 1, the payment is $28 for each full year of 151.16 allowable service credited to the person by the retirement fund. 151.17 In 1992 and each following year, each eligible benefit 151.18 recipient is entitled to receive the amount received in the 151.19 preceding year increased by the same percentage applied on the 151.20 most recent January 1 to regular annuities paid from the 151.21 Minneapolis employees retirement fund. 151.22 (b) The payment provided for in this section is payable on 151.23 December 1, 1991, to those persons receiving an annuity or 151.24 benefit on November 30, 1991. In subsequent years, the payment 151.25 must be made on December 1 to those persons receiving an annuity 151.26 or benefit on the preceding November 30. This section does not 151.27 authorize payment to an estate if the annuity or benefit 151.28 recipient dies before the November 30 eligibility date. The 151.29 payment provided for in this section must be paid automatically 151.30 unless the intended recipient files a written notice with the 151.31 retirement fund requesting that it not be paid. 151.32 Subd. 3. [STATE APPROPRIATION.] Payments under this 151.33 section are the responsibility of the Minneapolis employees 151.34 retirement fund. A separate state aid is provided toward the 151.35 level dollar amortized cost of the payments. For state fiscal 151.36 years 1992 to 2001 inclusive, there is appropriated annually 152.1 $550,000 from the general fund to the commissioner of finance to 152.2 be added, in quarterly installments, to the annual state 152.3 contribution amount determined under section 422A.101, 152.4 subdivision 3. After fiscal year 2001, any difference between 152.5 the cumulative benefit amounts actually paid under this section 152.6 after fiscal year 1991 and the amounts paid to the retirement 152.7 fund by the state under this subdivision, plus investment 152.8 earnings on the aid, shall be included by the retirement fund 152.9 board and the actuary retained by the legislative commission on 152.10 pensions and retirement in determining the financial 152.11 requirements of the fund and contributions under section 152.12 422A.101. 152.13 Sec. 32. [356.431] [CONVERSION OF LUMP-SUM POSTRETIREMENT 152.14 AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.] 152.15 Subdivision 1. [LUMP-SUM POSTRETIREMENT PAYMENT 152.16 CONVERSION.] For benefits paid after December 31, 2001, to 152.17 eligible persons under sections 356.42 and 356.43, the amount of 152.18 the most recent lump-sum benefit payable to an eligible 152.19 recipient under sections 356.86 and 356.865 must be divided by 152.20 12. The result must be added to the monthly annuity or benefit 152.21 otherwise payable to an eligible recipient, must become a 152.22 permanent part of the benefit recipient's pension, and must be 152.23 included in any pension benefit subject to future increases. 152.24 Subd. 2. [TRANSFER OF REQUIRED RESERVES TO MINNESOTA 152.25 POSTRETIREMENT INVESTMENT FUND.] Public employee retirement 152.26 funds participating in the state board of investment 152.27 postretirement investment fund shall transfer the required 152.28 reserves for the postretirement conversion under subdivision 1 152.29 to the postretirement investment fund by January 31, 2002. 152.30 REFUNDS 152.31 Sec. 33. [356.44] [PARTIAL PAYMENT OF PENSION PLAN 152.32 REFUND.] 152.33 (a) Notwithstanding any provision of law to the contrary, a 152.34 member of a pension plan listed in section 356.30, subdivision 152.35 3, with at least two years of forfeited service taken from a 152.36 single pension plan, may repay a portion of all refunds. A 153.1 partial refund repayment must comply with this section. 153.2 (b) The minimum portion of a refund repayment is one-third 153.3 of the total service credit period of all refunds taken from a 153.4 single plan. 153.5 (c) The cost of the partial refund repayment is the product 153.6 of the cost of the total repayment multiplied by the ratio of 153.7 the restored service credit to the total forfeited service 153.8 credit. The total repayment amount includes interest at the 153.9 annual rate of 8.5 percent, compounded annually, from the refund 153.10 date to the date repayment is received. 153.11 (d) The restored service credit must be allocated based on 153.12 the relationship the restored service bears to the total service 153.13 credit period for all refunds taken from a single pension plan. 153.14 (e) This section does not authorize a public pension plan 153.15 member to repay a refund if the law governing the plan does not 153.16 authorize the repayment of a refund of member contributions. 153.17 Sec. 34. [356.441] [REPAYMENT OF REFUNDS.] 153.18 Repayment of a refund and interest on that refund permitted 153.19 under laws governing any public pension plan in Minnesota may be 153.20 made with funds distributed from a plan qualified under the 153.21 federal Internal Revenue Code of 1986, section 401(a), as 153.22 amended through December 31, 1988, or an annuity qualified under 153.23 the federal Internal Revenue Code of 1986, section 403(a). 153.24 Repayment may also be made with funds distributed from an 153.25 individual retirement account used solely to receive a 153.26 nontaxable rollover from that type of a plan or annuity. The 153.27 repaid refund must be separately accounted for as member 153.28 contributions not previously taxed. Before accepting any 153.29 transfers to which this section applies, the executive director 153.30 must require the member to provide written documentation to 153.31 demonstrate that the amounts to be transferred are eligible for 153.32 a tax-free rollover and qualify for that treatment under the 153.33 federal Internal Revenue Code of 1986. 153.34 OPTIONAL ANNUITY FORMS 153.35 Sec. 35. [356.46] [APPLICATION FOR RETIREMENT ANNUITY; 153.36 PROCEDURE FOR ELECTING ANNUITY FORM.] 154.1 Subdivision 1. [DEFINITIONS.] As used in this section, 154.2 each of the following terms shall have the meaning given. 154.3 (a) "Annuity form" means the payment procedure and duration 154.4 of a retirement annuity or disability benefit available to a 154.5 member of a public pension fund, based on the period over which 154.6 a retirement annuity or disability benefit is payable, 154.7 determined by the number of persons to whom the retirement 154.8 annuity or disability benefit is payable, and the amount of the 154.9 retirement annuity or disability benefit which is payable to 154.10 each person. 154.11 (b) "Joint and survivor optional annuity" means an optional 154.12 annuity form which provides a retirement annuity or disability 154.13 benefit to a retired member and the spouse of the member on a 154.14 joint basis during the lifetime of the retired member and all or 154.15 a portion of the original retirement annuity or disability 154.16 benefit amount to the surviving spouse in the event of the death 154.17 of the retired member. 154.18 (c) "Optional annuity form" means an annuity form which is 154.19 elected by a member and is not provided automatically as the 154.20 standard annuity form of the public pension plan. 154.21 (d) "Public pension plan" means a public pension plan as 154.22 defined under section 356.615, paragraph (b). 154.23 (e) "Retirement annuity" means a series of monthly payments 154.24 to which a former or retired member of a public pension fund is 154.25 entitled due to attaining a specified age and acquiring credit 154.26 for a specified period of service, which includes a retirement 154.27 annuity, retirement allowance, or service pension. 154.28 (f) "Disability benefit" means a series of monthly payments 154.29 to which a former or disabled member of a public pension fund is 154.30 entitled due to a physical or mental inability to engage in 154.31 specified employment. 154.32 Subd. 2. [PROVISION OF INFORMATION ON ANNUITY FORMS.] 154.33 Every public pension plan which provides for an annuity form 154.34 other than a single life retirement annuity as an option which 154.35 can be elected by an active, disabled, or retiring member shall 154.36 provide as a part of, or accompanying the annuity application 155.1 form, a written statement summarizing the optional annuity forms 155.2 which are available, a general indication of the consequences of 155.3 selecting one annuity form over another, a calculation of the 155.4 actuarial reduction in the amount of the retirement annuity 155.5 which would be required for each optional annuity form, and the 155.6 procedure to be followed to obtain more information from the 155.7 public pension fund concerning the optional annuity forms 155.8 provided by the plan. 155.9 Subd. 3. [REQUIREMENT OF NOTICE TO MEMBER'S SPOUSE.] (a) 155.10 If a public pension plan provides optional retirement annuity 155.11 forms which include a joint and survivor optional retirement 155.12 annuity form potentially applicable to the surviving spouse of a 155.13 member, the executive director of the public pension plan shall 155.14 send a copy of the written statement, required by subdivision 2, 155.15 to the spouse of the member before the member's election of an 155.16 optional retirement annuity. 155.17 (b) Following the election of a retirement annuity by the 155.18 member, a copy of the completed retirement annuity application 155.19 and retirement annuity beneficiary form, if applicable, must be 155.20 sent by the public pension plan to the spouse of the retiring 155.21 member. A signed acknowledgment must be required from the 155.22 spouse confirming receipt of a copy of the completed retirement 155.23 annuity application and retirement annuity beneficiary form, 155.24 unless the spouse's signature confirming the receipt is on the 155.25 annuity application form. If the required signed acknowledgment 155.26 is not received from the spouse within 30 days, the public 155.27 pension plan must send another copy of the completed retirement 155.28 annuity application and retirement annuity beneficiary form, if 155.29 applicable, to the spouse by certified mail with restricted 155.30 delivery. 155.31 Sec. 36. [356.465] [SUPPLEMENTAL NEEDS TRUST AS OPTIONAL 155.32 ANNUITY FORM RECIPIENT.] 155.33 Subdivision 1. [INCLUSION AS RECIPIENT.] Notwithstanding 155.34 any provision to the contrary of the laws, articles of 155.35 incorporation, or bylaws governing a covered retirement plan 155.36 specified in subdivision 3, a retiring member may designate a 156.1 qualified supplemental needs trust under subdivision 2 as the 156.2 remainder recipient on an optional retirement annuity form for a 156.3 period not to exceed the lifetime of the beneficiary of the 156.4 supplemental needs trust. 156.5 Subd. 2. [DEFINITION OF QUALIFIED SUPPLEMENTAL NEEDS 156.6 TRUST.] A qualified supplemental needs trust is a trust that: 156.7 (1) was established on or after July 1, 1992; 156.8 (2) was established solely for the benefit of one person 156.9 who has a disability under federal Social Security 156.10 Administration supplemental security income or retirement, 156.11 survivors, and disability insurance disability determination 156.12 standards and who was determined as such before the creation of 156.13 the trust; 156.14 (3) is funded, in whole or in part, by the primary 156.15 recipient of the optional annuity form and, unless the trust is 156.16 a Zebley trust, is not funded by the beneficiary, the 156.17 beneficiary's spouse, or a person who is required to pay a sum 156.18 to or for the trust beneficiary under the terms of litigation or 156.19 a litigation settlement; 156.20 (4) is established to cover reasonable living expenses and 156.21 other basic needs of the disabilitant, in whole or in part, in 156.22 instances when public assistance does not provide sufficiently 156.23 for these needs; 156.24 (5) is not permitted to make disbursement to replace or 156.25 reduce public assistance otherwise available; 156.26 (6) is irrevocable; 156.27 (7) terminates upon the death of the disabled person for 156.28 whose benefit it was established; and 156.29 (8) is determined by the executive director to be a trust 156.30 that contains excluded assets for purposes of the qualification 156.31 for public entitlement benefits under the applicable federal and 156.32 state laws and regulations. 156.33 Subd. 3. [COVERED RETIREMENT PLANS.] The provisions of 156.34 this section apply to the following retirement plans: 156.35 (1) the general state employees retirement plan of the 156.36 Minnesota state retirement system established under chapter 352; 157.1 (2) the correctional state employees retirement plan of the 157.2 Minnesota state retirement system established under chapter 352; 157.3 (3) the state patrol retirement plan established under 157.4 chapter 352B; 157.5 (4) the legislators retirement plan established under 157.6 chapter 3A; 157.7 (5) the judges retirement plan established under chapter 157.8 490; 157.9 (6) the general employees retirement plan of the public 157.10 employees retirement association established under chapter 353; 157.11 (7) the public employees police and fire plan of the public 157.12 employees retirement association established under chapter 353; 157.13 (8) the teachers retirement plan established under chapter 157.14 354; 157.15 (9) the Duluth teachers retirement fund association 157.16 established under chapter 354A; 157.17 (10) the St. Paul teachers retirement fund association 157.18 established under chapter 354A; 157.19 (11) the Minneapolis teachers retirement fund association 157.20 established under chapter 354A; 157.21 (12) the Minneapolis employees retirement plan established 157.22 under chapter 422A; 157.23 (13) the Minneapolis firefighters relief association 157.24 established under chapter 423C; 157.25 (14) the Minneapolis police relief association established 157.26 under chapter 423B; and 157.27 (15) the local government correctional service retirement 157.28 plan of the public employees retirement association established 157.29 under chapter 353E. 157.30 REEMPLOYED ANNUITANT EARNINGS DISPOSITION 157.31 Sec. 37. [356.47] [DISPOSITION OF AMOUNT IN EXCESS OF 157.32 REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.] 157.33 Subdivision 1. [APPLICATION.] This section applies to the 157.34 balance of annual retirement annuities on the amount of 157.35 retirement annuity reductions after reemployed annuitant 157.36 earnings limitations for retirement plans governed by section 158.1 352.115, subdivision 10; 353.37; 354.44, subdivision 5; or 158.2 354A.31, subdivision 3. 158.3 Subd. 2. [RECORDKEEPING; REPORTING.] The chief 158.4 administrative officer of each retirement plan shall keep 158.5 records for each reemployed annuitant of the amount of the 158.6 annuity reduction. This amount must be reported to each member 158.7 at least once each year. 158.8 Subd. 3. [PAYMENT.] (a) Upon the retired member attaining 158.9 the age of 65 years or upon the first day of the month next 158.10 following the month occurring one year after the termination of 158.11 the reemployment that gave rise to the limitation, whichever is 158.12 later, and the filing of a written application, the retired 158.13 member is entitled to the payment, in a lump sum, of the value 158.14 of the person's amount under subdivision 2, plus interest at the 158.15 compound annual rate of six percent from the date that the 158.16 amount was deducted from the retirement annuity to the date of 158.17 payment. 158.18 (b) The written application must be on a form prescribed by 158.19 the chief administrative officer of the applicable retirement 158.20 plan. 158.21 (c) If the retired member dies before the payment provided 158.22 for in paragraph (a) is made, the amount is payable, upon 158.23 written application, to the deceased person's surviving spouse, 158.24 or if none, to the deceased person's designated beneficiary, or 158.25 if none, to the deceased person's estate. 158.26 MARRIAGE DISSOLUTION RETIREMENT 158.27 COVERAGE INFORMATION 158.28 Sec. 38. [356.49] [PROVISION OF INFORMATION IN THE EVENT 158.29 OF MARRIAGE DISSOLUTION.] 158.30 Subdivision 1. [INFORMATION FOR A PENDING MARRIAGE 158.31 DISSOLUTION.] (a) Upon receipt of a written request by a person 158.32 with access to the data under subdivision 3 who cites this 158.33 statute, a public or private pension plan administrator must 158.34 provide the court and the parties to a marriage dissolution 158.35 action involving a plan member or former plan member with 158.36 information regarding pension benefits or rights of the plan 159.1 member or former plan member. The pension plan shall provide 159.2 this information upon the request of the court or a party to the 159.3 action without requiring a signed authorization from the plan 159.4 member or former plan member. 159.5 (b) The information must include the pension benefits or 159.6 rights of the plan member or former plan member as of the first 159.7 day of the month following the date of the request, or as of the 159.8 end of the previous fiscal year for the plan, and as of the date 159.9 of valuation of marital assets under section 518.58, if the 159.10 person requesting the information specifies that date. The 159.11 information must include the accrued service credit of the 159.12 person, the credited salary of the person for the most current 159.13 five-year period, a summary of the benefit plan, and any other 159.14 information relevant to the calculation of the present value of 159.15 the benefits or rights. 159.16 Subd. 2. [INFORMATION FOR AN EXISTING DISSOLUTION DECREE.] 159.17 If a marriage dissolution decree rendered by a court of 159.18 competent jurisdiction prior to August 1, 1987, provided a 159.19 procedure for the distribution of future pension plan payments, 159.20 upon request the applicable pension plan administrator shall 159.21 provide on a timely basis to the court and the parties to the 159.22 action, the required information to implement that procedure 159.23 without requiring a signed authorization from the plan member or 159.24 former plan member. 159.25 Subd. 3. [ACCESS TO DATA.] Notwithstanding any provision 159.26 of chapter 13 to the contrary, an administrator may release 159.27 private or confidential data on individuals to the court, the 159.28 parties to a marriage dissolution, their attorneys, and an 159.29 actuary appointed under section 518.582, to the extent necessary 159.30 to comply with this section, but only if the administrator has 159.31 received a copy of the legal petition showing that an action for 159.32 marriage dissolution has commenced and a copy of the affidavit 159.33 of service showing that the petition has been served on the 159.34 responding party to the action. 159.35 SERVICE AND SALARY CREDIT UPON 159.36 WRONGFUL DISCHARGE 160.1 Sec. 39. Minnesota Statutes 2000, section 356.50, is 160.2 amended to read: 160.3 356.50 [SERVICE AND SALARY CREDIT FROM BACK PAY AWARDS IN 160.4 THE EVENT OF WRONGFUL DISCHARGE.] 160.5 (a) A person who is wrongfully discharged from public 160.6 employment that gave rise to coverage by a public employee 160.7 pension planlistedenumerated in section 356.30, subdivision 3, 160.8 is entitled to obtain allowable service credit from the 160.9 applicable public employee pension plan for the applicable 160.10 period caused by the wrongful discharge. 160.11 (b) A person is wrongfully discharged for purposes of this 160.12 section if: 160.13 (1) the person has been determined by a court of competent 160.14 jurisdiction or by an arbitrator in binding arbitration, 160.15 whichever applies, to have been wrongfully discharged from 160.16 public employment; 160.17 (2) the person received an award of back pay with respect 160.18 to that discharge; and 160.19 (3) the award does not include any amount for any lost or 160.20 interrupted public pension plan coverage. 160.21(b)(c) To obtain the public pension plan allowable service 160.22 credit, the person shall pay the required member contribution 160.23 amount. The required member contribution amount is the member 160.24 contribution rate or rates in effect for the pension plan during 160.25 the period of service covered by the back pay award, applied to 160.26 the unpaid gross salary amounts of the back pay award including 160.27 reemployment insurance, workers' compensation or wages from 160.28 other sources which reduced the back award. No contributions 160.29 shall be made under this clause for compensation covered by a 160.30 public pension plan listed in section 356.30, subdivision 3, for 160.31 employment during the removal period. The person shall pay the 160.32 required member contribution amount within 60 days of the date 160.33 of receipt of the back pay award, within 60 days of April 14, 160.34 1992, or within 60 days of a billing from the retirement fund, 160.35 whichever is later. 160.36(c)(d) The public employer who wrongfully discharged the 161.1 public employee must pay an employer contribution on the back 161.2 pay award. The employer contribution must be based on the 161.3 employer contribution rate or rates in effect for the pension 161.4 plan during the period of service covered by the back pay award, 161.5 applied to the salary amount on which the member contribution 161.6 amount was determined under paragraph(b)(c). Interest on both 161.7 the required member and employer contribution amount must be 161.8 paid by the employer at the annual compound rate of 8.5 percent 161.9 per year, expressed monthly, between the date the contribution 161.10 amount would have been paid to the date of actual payment. The 161.11 employer payment must be made within 30 days of the payment 161.12 under paragraph(b)(c). 161.13 Sec. 40. Minnesota Statutes 2000, section 356.55, as 161.14 amended by Laws 2001, First Special Session chapter 10, article 161.15 6, section 16, is amended to read: 161.16 356.55 [PRIOR SERVICE CREDIT PURCHASE PAYMENT AMOUNT 161.17 DETERMINATION PROCEDURE.] 161.18 Subdivision 1. [APPLICATION.] (a) Unless the prior service 161.19 credit purchase authorization special law or general statute 161.20 provision explicitly specifies a different purchase payment 161.21 amount determination procedure, this section governs the 161.22 determination of the prior service credit purchase payment 161.23 amount of any prior service credit purchase. 161.24 (b) The purchase payment amount determination procedure 161.25 must recognize any service credit accrued to the purchaser in a 161.26 pension planlistedenumerated in section 356.30, subdivision 3. 161.27 (c) Any service credit in a Minnesota defined benefit 161.28 public employee pension plan available to be reinstated by the 161.29 purchaser through the repayment of a refund of member or 161.30 employee contributions previously received must be repaid in 161.31 full before any purchase of prior service credit payment is made 161.32 under this section. 161.33 Subd. 2. [DETERMINATION.] (a) Unless the prior service 161.34 credit purchase minimum purchase payment amount determined under 161.35 paragraph (d) is greater, the prior service credit purchase 161.36 amount is the result obtained by subtracting the amount 162.1 determined under paragraph (c) from the amount determined under 162.2 paragraph (b). 162.3 (b) The present value of the unreduced single life 162.4 retirement annuity, with the purchase of the additional service 162.5 credit included, must be calculated as follows: 162.6 (1) the age at first eligibility for an unreduced single 162.7 life retirement annuity, including the purchase of the 162.8 additional service credit, must be determined; 162.9 (2) the length of total service credit, including the 162.10 period of the purchase of the additional service credit, at the 162.11 age determined under clause (1) must be determined; 162.12 (3) the highest five successive years average salary at the 162.13 age determined under clause (1), assuming five percent annual 162.14 compounding salary increases from the most current annual salary 162.15 amount at the age determined under clause (1), must be 162.16 determined; 162.17 (4) using the benefit accrual rate or rates applicable to 162.18 the prospective purchaser of the service credit based on the 162.19 prospective purchaser's actual date of entry into covered 162.20 service, the length of service determined under clause (2), and 162.21 the final average salary determined under clause (3), the annual 162.22 unreduced single life retirement annuity amount must be 162.23 determined; 162.24 (5) the actuarial present value of the projected annual 162.25 unreduced single life retirement annuity amount determined under 162.26 clause (4) at the age determined under clause (1), using the 162.27 same actuarial factor that the plan would use to determine 162.28 actuarial equivalence for optional annuity forms and related 162.29 purposes, must be determined; and 162.30 (6) the discounted value of the amount determined under 162.31 clause (5) to the date of the prospective purchase, using an 162.32 interest rate of 8.5 percent and no mortality probability 162.33 decrement, must be determined. 162.34 (c) The present value of the unreduced single life 162.35 retirement annuity, without the purchase of the additional 162.36 service credit included, must be calculated as follows: 163.1 (1) the age at first eligibility for an unreduced single 163.2 life retirement annuity, not including the purchase of 163.3 additional service credit, must be determined; 163.4 (2) the length of accrued service credit, without the 163.5 period of the purchase of the additional service credit, at the 163.6 age determined under clause (1), must be determined; 163.7 (3) the highest five successive years average salary at the 163.8 age determined under clause (1), assuming five percent annual 163.9 compounding salary increases from the most current annual salary 163.10 amount to the age determined under clause (1), must be 163.11 determined; 163.12 (4) using the benefit accrual rate or rates applicable to 163.13 the prospective purchaser of the service credit based on the 163.14 prospective purchaser's actual date of entry into covered 163.15 service the length of service credit determined under clause 163.16 (2), and the final average salary determined under clause (3), 163.17 the annual unreduced single life retirement annuity amount must 163.18 be determined; 163.19 (5) the actuarial present value of the projected annual 163.20 unreduced single life retirement annuity amount determined under 163.21 clause (4) at the age determined under clause (1), using the 163.22 same actuarial factor that the plan would use to determine 163.23 actuarial equivalence for optional annuity forms and related 163.24 purposes, must be determined; 163.25 (6) the discounted value of the amount determined under 163.26 clause (5) to the date of the prospective purchase, using an 163.27 interest rate of 8.5 percent and no mortality probability 163.28 decrement, must be determined; and 163.29 (7) the net value of the discounted value determined under 163.30 clause (6), must be determined by applying a service ratio, 163.31 where the numerator is the total length of credited service 163.32 determined under paragraph (b), clause (2), reduced by the 163.33 period of the additional service credit proposed to be 163.34 purchased, and where the denominator is the total length of 163.35 service credit determined under clause (2). 163.36 (d) The minimum prior service credit purchase payment 164.1 amount is the amount determined by multiplying the most current 164.2 annual salary of the prospective purchaser by the combined 164.3 current employee, employer, and any additional employer 164.4 contribution rates for the applicable pension plan and by 164.5 multiplying that result by the number of years of service or 164.6 fractions of years of service of the potential service credit 164.7 purchase. 164.8 Subd. 3. [SOURCE OF DETERMINATION.] The prior service 164.9 credit purchase payment amounts under subdivision 2 must be 164.10 calculated by the chief administrative officer of the public 164.11 pension plan using a prior service credit purchase payment 164.12 amount determination process that has been verified for accuracy 164.13 and consistency under this section by the commission-retained 164.14 actuary. That verification must be in writing and must occur 164.15 before the first prior service credit purchase for the plan 164.16 under this section is accepted and every five years thereafter 164.17 or whenever the preretirement interest rate, postretirement 164.18 interest rate, payroll growth, or mortality actuarial assumption 164.19 for the applicable pension plan is modified under section 164.20 356.215, whichever occurs first. 164.21 Subd. 4. [PRIOR SERVICE CREDIT PURCHASE PROCESSING FEE.] A 164.22 public pension plan may establish a fee to be charged to the 164.23 prospective purchaser for processing a prior service credit 164.24 purchase application and the prior service credit purchase 164.25 payment amount calculation. The fee must be established by the 164.26 governing board of the pension plan and must be uniform for 164.27 comparable service credit purchase situations or actuarial 164.28 calculation requests. The prior service credit purchase 164.29 processing fee structure must be published by the chief 164.30 administrative officer of the applicable retirement plan in the 164.31 State Register. 164.32 Subd. 5. [PAYMENT RESPONSIBILITY; EMPLOYER OPTION.] Unless 164.33 the prior service credit purchase authorization special law or 164.34 general statute provision explicitly specifies otherwise, the 164.35 prior service credit purchase payment amount determined under 164.36 subdivision 2 is payable by the purchaser, but. However, the 165.1 former employer of the purchaser or the current employer of the 165.2 purchaser may, at its discretion, pay all or a portion of the 165.3 purchase payment amount in excess of an amount equal to the 165.4 employee contribution rate or rates in effect during the prior 165.5 service period applied to the actual salary rates in effect 165.6 during the prior service period, plus annual compound interest 165.7 at the rate of 8.5 percent from the date on which the 165.8 contributions would have been made if made contemporaneous with 165.9 the service period to the date on which the payment is actually 165.10 made. 165.11 Subd. 6. [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a) 165.12 As part of the regular data reporting provided to the consulting 165.13 actuary retained by the legislative commission on pensions and 165.14 retirement annually, the chief administrative officer of each 165.15 public pension plan that has accepted a prior service credit 165.16 purchase payment under this section shall report for any 165.17 purchase, the purchaser, the purchaser's employer, the age of 165.18 the purchaser, the period of the purchase, the purchaser's 165.19 prepurchase accrued service credit, the purchaser's postpurchase 165.20 accrued service credit, the purchaser's prior service credit 165.21 payment, the prior service credit payment made by the 165.22 purchaser's employer, and the amount of the additional benefit 165.23 or annuity purchased. 165.24 (b) As a supplemental report to the regular annual 165.25 actuarial valuation for the applicable public pension plan 165.26 prepared by the consulting actuary retained by the legislative 165.27 commission on pensions and retirement,there must bethe actuary 165.28 shall provide a comparison for each purchase showing the total 165.29 prior service credit payment received from all sources and the 165.30 increased public pension plan actuarial accrued liability 165.31 resulting from each purchase. 165.32 Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 165.33 PROCEDURE.] (a) This section expires and is repealed on July 1, 165.34 2003. 165.35 (b) Authority for any public pension plan to accept a prior 165.36 service credit payment that is calculated in a timely fashion 166.1 under this section expires on October 1, 2003. 166.2 Sec. 41. Minnesota Statutes 2000, section 356.551, is 166.3 amended to read: 166.4 356.551 [POST JULY 1,20012003, PRIOR SERVICE CREDIT 166.5 PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.] 166.6(a)Subdivision 1. [APPLICATION.] Unless the prior service 166.7 credit purchase authorization special law or general statute 166.8 provision explicitly specifies a different purchase payment 166.9 amount determination procedure, and if section 356.55 has 166.10 expired, this section governs the determination of the prior 166.11 service credit purchase payment amount of any prior service 166.12 credit purchase. 166.13(b)Subd. 2. [DETERMINATION.] The prior service credit 166.14 purchase amount is an amount equal to the actuarial present 166.15 value, on the date of payment, as calculated by the chief 166.16 administrative officer of the pension plan and reviewed by the 166.17 actuary retained by the legislative commission on pensions and 166.18 retirement, of the amount of the additional retirement annuity 166.19 obtained by the acquisition of the additional service credit in 166.20 this section. Calculation of this amount must be made using the 166.21 preretirement interest rate applicable to the public pension 166.22 plan specified in section 356.215, subdivision 4d, and the 166.23 mortality table adopted for the public pension plan. The 166.24 calculation must assume continuous future service in the public 166.25 pension plan until, and retirement at, the age at which the 166.26 minimum requirements of the fund for normal retirement or 166.27 retirement with an annuity unreduced for retirement at an early 166.28 age, including section 356.30, are met with the additional 166.29 service credit purchased. The calculation must also assume a 166.30 full-time equivalent salary, or actual salary, whichever is 166.31 greater, and a future salary history that includes annual salary 166.32 increases at the applicable salary increase rate for the plan 166.33 specified in section 356.215, subdivision 4d. Payment must be 166.34 made in one lump sum within one year of the prior service credit 166.35 authorization. Payment of the amount calculated under this 166.36 section must be made by the applicable eligible person. 167.1 However, the current employer or the prior employer may, at its 167.2 discretion, pay all or any portion of the payment amount that 167.3 exceeds an amount equal to the employee contribution rates in 167.4 effect during the period or periods of prior service applied to 167.5 the actual salary rates in effect during the period or periods 167.6 of prior service, plus interest at the rate of 8.5 percent a 167.7 year compounded annually from the date on which the 167.8 contributions would otherwise have been made to the date on 167.9 which the payment is made. If the employer agrees to payments 167.10 under thisparagraphsubdivision, the purchaser must make the 167.11 employee payments required under thisparagraphsubdivision 167.12 within 290 days of the prior service credit authorization. If 167.13 that employee payment is made, the employer payment under 167.14 thisparagraphsubdivision must be remitted to the chief 167.15 administrative officer of the public pension plan within 60 days 167.16 of receipt by the chief administrative officer of the employee 167.17 payments specified under thisparagraphsubdivision. 167.18(c)Subd. 3. [DOCUMENTATION.] The prospective purchaser 167.19 must provide any relevant documentation required by the chief 167.20 administrative officer of the public pension plan to determine 167.21 eligibility for the prior service credit under this section. 167.22(d)Subd. 4. [PAYMENT PRECONDITION FOR CREDIT GRANT.] 167.23 Service credit for the purchase period must be granted by the 167.24 public pension plan to the purchaser upon receipt of the 167.25 purchase payment amount specified inparagraph (b)subdivision 2. 167.26 Sec. 42. Minnesota Statutes 2001 Supplement, section 167.27 356.555, is amended to read: 167.28 356.555 [PARENTAL OR FAMILY LEAVE SERVICE CREDIT PURCHASE.] 167.29 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZATION.] 167.30 (a) Notwithstanding any provision to the contrary of the laws 167.31 governing a covered pension plan enumerated in subdivision 4, a 167.32 member of the pension plan who has at least three years of 167.33 allowable service covered by the applicable pension plan and who 167.34 was granted by the employer a parental leave of absence as 167.35 defined in paragraph (b), or who was granted by the employer a 167.36 family leave of absence as defined in paragraph (c), or who had 168.1 a parental or family-related break in employment, as defined in 168.2 paragraph (d), for which the person did not previously receive 168.3 service credit or for which the person did not receive or 168.4 purchase service credit from another defined benefit public 168.5 employee pension plan, is entitled to purchase the actual period 168.6 of the leave or of the break in service, up to five years, of 168.7 allowable service credit in the applicable retirement plan. The 168.8 purchase payment amount is governed by section 356.55. 168.9 (b) For purposes of this section, a parental leave of 168.10 absence is a temporary period of interruption of or separation 168.11 from active employment for the purposes of handling maternity or 168.12 paternity duties that has been approved by the employing unit 168.13 and that includes the right of reinstatement to employment. 168.14 (c) For purposes of this section, a family leave of absence 168.15 is a family leave under United States Code, title 42, section 168.16 12631, as amended. 168.17 (d) For purposes of this section, a parental or 168.18 family-related break in employment is a period following a 168.19 termination of active employment primarily for the purpose of 168.20 the birth of a child, the adoption of a child, or the provision 168.21 of care to a near relative or in-law, after which the person 168.22 returned to the prior employing unit or to an employing unit 168.23 covered by the same pension plan that provided retirement 168.24 coverage immediately prior to the termination of employment. 168.25 Subd. 2. [APPLICATION AND DOCUMENTATION.] (a) A person who 168.26 desires to purchase service credit under subdivision 1 must 168.27 apply for the service credit purchase with the chief 168.28 administrative officer of the enumerated pension plan. 168.29 (b) The application must include all necessary 168.30 documentation of the qualifications of the person to make the 168.31 purchase, signed written permission to allow the chief 168.32 administrative officer to request and receive necessary 168.33 verification of all applicable facts and eligibility 168.34 requirements, and any other relevant information that the chief 168.35 administrative officer may require. 168.36 Subd. 3. [SERVICE CREDIT GRANT.] Allowable and formula 169.1 service credit in the applicable enumerated pension plan for the 169.2 purchase period must be granted to the purchaser upon receipt of 169.3 the purchase payment amount calculated under section 356.55. 169.4 Payment of the purchase amount must be made before the person 169.5 retires. 169.6 Subd. 4. [COVERED PENSION PLANS.] This section applies to 169.7 the following pension plans: 169.8 (1) the general state employees retirement plan governed by 169.9 chapter 352; 169.10 (2) the correctional state employees retirement plan 169.11 governed by chapter 352; 169.12 (3) the generalpublicemployees retirement plan of the 169.13 public employees retirement association governed by chapter 353; 169.14 (4) the public employees police and fire plan governed by 169.15 chapter 353; 169.16 (5) the teachers retirement plan governed by chapter 354; 169.17 (6) the Minneapolis teachers retirement fund association 169.18 governed by chapter 354A; 169.19 (7) the Saint Paul teachers retirement fund association 169.20 governed by chapter 354A; 169.21 (8) the Duluth teachers retirement fund association 169.22 governed by chapter 354A; 169.23 (9) the Minneapolis employees retirement plan governed by 169.24 chapter 422A; 169.25 (10) the Minneapolis police relief association governed by 169.26 chapter 423B; and 169.27 (11) the Minneapolis fire department relief association 169.28 governed bysections 69.25 to 69.53 and augmented by Laws 1959,169.29chapters 213, 491, and 568, and other special local legislation169.30 chapter 423C. 169.31 COVERED SALARY LIMITATION 169.32 Sec. 43. Minnesota Statutes 2000, section 356.611, is 169.33 amended to read: 169.34 356.611 [LIMITATION ON PUBLIC EMPLOYEE SALARIES FOR PENSION 169.35 PURPOSES.] 169.36 Subdivision 1. [STATE SALARY LIMITATIONS.] (a) 170.1 Notwithstanding any provision of law, bylaws, articles of 170.2 incorporation, retirement and disability allowance plan 170.3 agreements, or retirement plan contracts to the contrary, the 170.4 covered salary for pension purposes for a plan participant of a 170.5 covered retirement fundunderenumerated in section 356.30, 170.6 subdivision 3, may not exceed 95 percent of the salary 170.7 established for the governor under section 15A.082 at the time 170.8 the person received the salary. 170.9 (b) This section does not apply to a salary paid: 170.10 (1) to the governor; 170.11 (2) to an employee of a political subdivision in a position 170.12 that is excluded from the limit as specified under section 170.13 43A.17, subdivision 9; or 170.14 (3) to a state employee in a position for which the 170.15 commissioner of employee relations has approved a salary rate 170.16 that exceeds 95 percent of the governor's salary. 170.17 (c) The limited covered salary determined under this 170.18 section must be used in determining employee and employer 170.19 contributions and in determining retirement annuities and other 170.20 benefits under the respective covered retirement fund and under 170.21 this chapter. 170.22 Subd. 2. [FEDERAL COMPENSATION LIMITS.] For members first 170.23 contributing to a covered pension plancovered underenumerated 170.24 in section 356.30, subdivision 3, on or after July 1, 1995, 170.25 compensation in excess of the limitation set forth in Internal 170.26 Revenue Code 401(a)(17)shallmay not be included for 170.27 contribution and benefit computation purposes. The compensation 170.28 limit set forth in Internal Revenue Code 401(a)(17) on June 30, 170.29 1993,shall applyapplies to members first contributing before 170.30 July 1, 1995. 170.31 MEMBER CONTRIBUTION EMPLOYER PICK UP 170.32 Sec. 44. Minnesota Statutes 2001 Supplement, section 170.33 356.62, is amended to read: 170.34 356.62 [PAYMENT OF EMPLOYEE CONTRIBUTION.] 170.35 (a) For purposes of any public pension plan, as defined in 170.36 section 365.615, paragraph (b), each employer shall pick up the 171.1 employee contributions required pursuant to law or the pension 171.2 plan for all salary payable after December 31, 1982. If the 171.3 United States Treasury department rules thatpursuant tounder 171.4 section 414(h) of the Internal Revenue Code of 1986, as amended 171.5 through December 31, 1992, that these picked up contributions 171.6 are not includable in the employee's adjusted gross income until 171.7 they are distributed or made available, then these picked up 171.8 contributionsshallmust be treated as employer contributions in 171.9 determining tax treatmentpursuant tounder the Internal Revenue 171.10 Code of 1986, as amended through December 31, 1992, and the 171.11 employer shall discontinue withholding federal income taxes on 171.12 the amount of these contributions. The employer shall pay these 171.13 picked up contributions from the same source of funds as is used 171.14 to pay the salary of the employee. The employer shall pick up 171.15 these employee contributions by a reduction in the cash salary 171.16 of the employee. 171.17 (b) Employee contributions that are picked upshallmust be 171.18 treated for all purposes of the public pension plan in the same 171.19 manner and to the same extent as employee contributions that 171.20 were made prior to the date on which the employee contributions 171.21 pick up began. The amount of the employee contributions that 171.22 are picked upshallmust be included in the salary upon which 171.23 retirement coverage is credited and retirement and survivor's 171.24 benefits are determined. For purposes of this section, 171.25 "employee" means any person covered by a public pension plan. 171.26 For purposes of this section, "employee contributions" include 171.27 any sums deducted from the employee's salary or wages or 171.28 otherwise paid in lieu thereof, regardless of whether they are 171.29 denominated contributions by the public pension plan. 171.30 (c) For any calendar year in which withholding has been 171.31 reducedpursuant tounder this section, the employing unit shall 171.32 supply each employee and the commissioner of revenue with an 171.33 information return indicating the amount of the employer's 171.34 picked-up contributions for the calendar year that were not 171.35 subject to withholding. This returnshallmust be provided to 171.36 the employee not later than January 31 of the succeeding 172.1 calendar year. The commissioner of revenue shall prescribe the 172.2 form of the return and the provisions of section 289A.12shall172.3 must apply to the extent not inconsistent with the provisions of 172.4 this section. 172.5 PENSION ASSET AND INVESTMENT 172.6 LIMITATIONS 172.7 Sec. 45. [356.63] [LIMITATION ON USE OF PUBLIC PENSION 172.8 PLAN ASSETS.] 172.9 (a) Money held by or credited to a public pension plan as 172.10 assets, including employer and employee contributions, state 172.11 aid, appropriations from the state or a governmental 172.12 subdivision, and accrued earnings on investments, constitutes a 172.13 dedicated fund. The dedicated fund may be used exclusively to 172.14 pay retirement annuities, service pensions, disability benefits, 172.15 survivor benefits, refunds of contributions, or other benefits 172.16 provided under the benefit plan document or documents governing 172.17 the public pension plan, and to pay reasonable administrative 172.18 expenses approved by the governing board of the public pension 172.19 plan or by another appropriate authority. No assets of a public 172.20 pension plan may be loaned or transferred to the state or a 172.21 governmental subdivision or be used to amortize an unfunded 172.22 actuarial accrued liability in another public pension plan or 172.23 fund, whether or not the plan providing the assets consolidates 172.24 or has consolidated with the plan receiving the assets. Nothing 172.25 in this section prohibits a public pension plan or the state 172.26 board of investment from investing the assets of a plan as 172.27 authorized by law, including the investment of the assets of 172.28 public pension plans by the state board of investment in a 172.29 commingled investment fund. 172.30 (b) A public pension plan for purposes of this section 172.31 means a pension plan or fund specified in section 356.20, 172.32 subdivision 2, or 356.30, subdivision 3, or a retirement or 172.33 pension plan or fund, including a supplemental retirement plan 172.34 or fund, established, maintained, or supported by a governmental 172.35 subdivision or public body whose revenues are derived from 172.36 taxation, fees, assessments, or other public sources. 173.1 Sec. 46. [356.64] [REAL ESTATE INVESTMENTS.] 173.2 (a) Notwithstanding any law to the contrary, any public 173.3 pension plan whose assets are not invested by the state board of 173.4 investment may invest its funds in Minnesota situs nonfarm real 173.5 estate ownership interests or loans secured by mortgages or 173.6 deeds of trust if the investment is consistent with section 173.7 356A.04. 173.8 (b) Except to the extent authorized in the case of the 173.9 Minneapolis employees retirement fund under section 422A.05, 173.10 subdivision 2c, paragraph (a), an investment otherwise 173.11 authorized by this section must also comply with the 173.12 requirements and limitations of section 11A.24, subdivision 6. 173.13 ABANDONED PENSION FUND AMOUNTS 173.14 Sec. 47. Minnesota Statutes 2001 Supplement, section 173.15 356.65, subdivision 1, is amended to read: 173.16 Subdivision 1. [DEFINITIONS.] For purposes of this 173.17 section, unless the context clearly indicates otherwise, each of 173.18 the following termsshall havehas themeaningsmeaning given to 173.19themit: 173.20 (a) "Public pension fund" means any public pension plan as 173.21 defined in section356.615356.63, paragraph (b), and any 173.22 Minnesota volunteer firefighters relief association which is 173.23 establishedpursuant tounder chapter 424A and governedpursuant173.24tounder sections 69.771 to 69.776. 173.25 (b) "Unclaimed public pension fund amounts" means any 173.26 amounts representing accumulated member contributions, any 173.27 outstanding unpaid annuity, service pension or other retirement 173.28 benefit payments, including those made on warrants issued by the 173.29 commissioner of finance, which have been issued and delivered 173.30 for more than six months prior to the date of the end of the 173.31 fiscal year applicable to the public pension fund, and any 173.32 applicable interest to the credit of: 173.33 (1) an inactive or former member of a public pension fund 173.34 who is not entitled to a defined retirement annuity and who has 173.35 not applied for a refund of those amounts within five years 173.36 after the last member contribution was made; or 174.1 (2) a deceased inactive or former member of a public 174.2 pension fund if no survivor is entitled to a survivor benefit 174.3 and no survivor, designated beneficiary or legal representative 174.4 of the estate has applied for a refund of those amounts within 174.5 five years after the date of death of the inactive or former 174.6 member. 174.7 Sec. 48. Minnesota Statutes 2000, section 356.65, 174.8 subdivision 2, is amended to read: 174.9 Subd. 2. [DISPOSITION OF ABANDONED AMOUNTS.] Any unclaimed 174.10 public pension fund amounts existing in any public pension 174.11 fundshall beare presumed to be abandoned, butshallare not 174.12besubject to the provisions of sections 345.31 to 345.60. 174.13 Unless the benefit plan of the public pension fund specifically 174.14 provides for a different disposition of unclaimed or abandoned 174.15 funds or amounts, any unclaimed public pension fund 174.16 amountsshallcancel andshallmust be credited to the public 174.17 pension fund. If the unclaimed public pension fund amount 174.18 exceeds $25 and the inactive or former member again becomes a 174.19 member of the applicable public pensionfundplan or applies for 174.20 a retirement annuitypursuant tounder section 3A.12, 352.72, 174.21 352B.30, 352C.051, 353.71, 354.60, 356.30, or 422A.16, 174.22 subdivision 8, whicheveris applicable,applies, the canceled 174.23 amountshallmust be restored to the credit of the person. 174.24 HEALTH INSURANCE WITHHOLDING 174.25 Sec. 49. Minnesota Statutes 2000, section 356.87, is 174.26 amended to read: 174.27 356.87 [HEALTH INSURANCE WITHHOLDING.] 174.28 (a) Upon authorization of a person entitled to receive a 174.29 retirement annuity, disability benefit or survivor benefit, the 174.30 executive director of a public pension fundlistedenumerated in 174.31 section 356.20, subdivision 2, shall withhold health insurance 174.32 premium amounts from the retirement annuity, disability benefit 174.33 or survivor benefit, and shall pay the premium amounts to the 174.34 public employees insurance program. 174.35 (b) The public employees insurance program shall reimburse 174.36 a public pension fund for the administrative expense of 175.1 withholding the premium amounts and shall assume liability for 175.2 the failure of a public pension fund to properly withhold the 175.3 premium amounts. 175.4 RETIREMENT PLAN 175.5 ADMINISTRATION 175.6 Sec. 50. [356B.05] [PUBLIC PENSION ADMINISTRATION 175.7 LEGISLATION.] 175.8 (a) Proposed administrative legislation recommended by or 175.9 on behalf of the Minnesota state retirement system, the public 175.10 employees retirement association, the teachers retirement 175.11 association, the Minneapolis employees retirement fund, or a 175.12 first class city teachers retirement fund association must be 175.13 presented to the legislative commission on pensions and 175.14 retirement, the state and local governmental operations 175.15 committee of the senate, and the governmental operations and 175.16 veterans affairs policy committee of the house of 175.17 representatives on or before October 1 of each year in order for 175.18 the proposed administrative legislation to be acted upon during 175.19 the upcoming legislative session. The executive director or the 175.20 deputy executive director of the legislative commission on 175.21 pensions and retirement shall provide written comments on the 175.22 proposed provisions to the public pension plans by November 15 175.23 of each year. 175.24 (b) Proposed administrative legislation recommended by or 175.25 on behalf of a public employee pension plan or system under 175.26 paragraph (a) must address provisions: 175.27 (1) authorizing allowable service credit for leaves of 175.28 absence and related circumstances; 175.29 (2) governing offsets or deductions from the amount of 175.30 disability benefits; 175.31 (3) authorizing the purchase of allowable service credit 175.32 for prior uncredited periods; 175.33 (4) governing subsequent employment earnings by reemployed 175.34 annuitants; and 175.35 (5) authorizing retroactive effect for retirement annuity 175.36 or benefit applications. 176.1 (c) Where possible and desirable, taking into account the 176.2 differences among the public pension plans in existing law and 176.3 the unique characteristics of the individual public pension fund 176.4 memberships, uniform provisions relating to paragraph (b) for 176.5 all applicable public pension plans must be presented for 176.6 consideration during the legislative session. Supporting 176.7 documentation setting forth the policy rationale for each set of 176.8 uniform provisions must accompany the proposed administrative 176.9 legislation. 176.10 Sec. 51. [356B.10] [PUBLIC PENSION FACILITIES.] 176.11 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 176.12 subdivision apply to this section. 176.13 (b) "Boards" mean the board of directors of the Minnesota 176.14 state retirement system, the board of trustees of the public 176.15 employees retirement association, and the board of trustees of 176.16 the teachers retirement association. 176.17 (c) "Commissioner" means the commissioner of administration. 176.18 Subd. 2. [BUILDING; RELATED FACILITIES.] (a) The 176.19 commissioner of administration may provide a building and 176.20 related facilities to be jointly occupied by the board of 176.21 directors of the Minnesota state retirement system, the board of 176.22 trustees of the public employees retirement association, and the 176.23 board of trustees of the teachers retirement association for the 176.24 administration of their public pension systems. 176.25 (b) Design of the facilities is not subject to section 176.26 16B.33. The competitive acquisition process set forth in 176.27 chapter 16C does not apply if the process set forth in 176.28 subdivision 3 is followed. 176.29 (c) The boards and the commissioner must submit the plans 176.30 for a public pension facility under this section to the chair of 176.31 the house ways and means committee and to the chair of the 176.32 senate state government finance committee for their approval 176.33 before the plans are implemented. 176.34 Subd. 3. [CONTRACTING PROCEDURES.] (a) The commissioner 176.35 may enter into a contract for facilities with a contractor to 176.36 furnish the architectural, engineering, and related services as 177.1 well as the labor, materials, supplies, equipment, and related 177.2 construction services on the basis of a request for 177.3 qualifications and competitive responses received through a 177.4 request for proposals process that must include the items listed 177.5 in paragraphs (b) to (i). 177.6 (b) Before issuing a request for qualifications and a 177.7 request for proposals, the commissioner, with the assistance of 177.8 the boards, shall prepare performance criteria and 177.9 specifications that include: 177.10 (1) a general floor plan or layout indicating the general 177.11 dimensions of the public building and space requirements; 177.12 (2) design criteria for the exterior and site area; 177.13 (3) performance specifications for all building systems and 177.14 components to ensure quality and cost efficiencies; 177.15 (4) conceptual floor plans for systems space; 177.16 (5) preferred types of interior finishes, styles of 177.17 windows, lighting and outlets, doors, and features such as 177.18 built-in counters and telephone wiring; 177.19 (6) mechanical and electrical requirements; 177.20 (7) special interior features required; and 177.21 (8) a completion schedule. 177.22 (c) The commissioner shall first solicit statements of 177.23 qualifications from eligible contractors and select more than 177.24 one qualified contractor based upon experience, technical 177.25 competence, past performance, capability to perform, and other 177.26 appropriate facts. Contractors selected under this process must 177.27 be, employ, or have as a partner, member, coventurer, or 177.28 subcontractor, persons licensed and registered under chapter 326 177.29 to provide the services required to design and complete the 177.30 project. The commissioner does not have to select any of the 177.31 respondents if none reasonably fulfill the criteria set forth in 177.32 this paragraph. 177.33 (d) The contractors selected shall be asked to respond to a 177.34 request for proposals. Responses must include site plans, 177.35 design concept, elevation, statement of material to be used, 177.36 floor layouts, a detailed development budget, and a total cost 178.1 to complete the project. The proposal must indicate that the 178.2 contractor obtained at least two proposals from subcontractors 178.3 for each item of work and must set forth how the subcontractors 178.4 were selected. The commissioner, with the assistance of the 178.5 boards, shall evaluate the proposals based upon design, cost, 178.6 quality, aesthetics, and the best overall value to the state 178.7 pension funds. The commissioner need not select any of the 178.8 proposals submitted and reserves the right to reject any and all 178.9 proposals, and may terminate the process or revise the request 178.10 for proposals and solicit new proposals if the commissioner 178.11 determines that the best interests of the pension funds would be 178.12 better served by doing so. Proposals submitted are nonpublic 178.13 data until the contract is awarded. 178.14 (e) The contractor selected must comply with sections 178.15 574.26 to 574.261. Before executing a final contract, the 178.16 contractor selected shall certify a firm construction price and 178.17 completion date. 178.18 (f) The commissioner may consider building sites in the 178.19 city of St. Paul and surrounding suburbs. 178.20 (g) Any land, building, or facility leased, constructed, or 178.21 acquired and any leasehold interest acquired under this section 178.22 must be held by the state in trust for the three retirement 178.23 systems as tenants in common. Each retirement system fund must 178.24 consider its interest as a fixed asset of its pension fund in 178.25 accordance with governmental accounting standards. 178.26 (h) The commissioner may lease to another governmental 178.27 subdivision, to a private company under contract with the state 178.28 board of investment, or with the board of directors of the 178.29 Minnesota state retirement system, whichever applies, to provide 178.30 deferred compensation services under section 352.96, any portion 178.31 of the funds' building and lands that is not required for their 178.32 direct use upon terms and conditions they deem to be in the best 178.33 interest of the pension funds. Any income accruing from the 178.34 rentals must be separately accounted for and utilized to offset 178.35 ongoing administrative expenses and any excess must be carried 178.36 forward for future administrative expenses. The commissioner 179.1 may also enter into lease agreements for the establishment of 179.2 satellite offices should the boards find them to be necessary in 179.3 order to assure their members reasonable access to their 179.4 services. The commissioner may lease under section 16B.24 any 179.5 portion of the facilities not required for the direct use of the 179.6 boards. 179.7 (i) The boards shall formulate and adopt a written working 179.8 agreement that sets forth the nature of each retirement system's 179.9 ownership interest, the duties and obligations of each system 179.10 toward the construction, operation, and maintenance costs of its 179.11 facilities, and identifies one retirement fund to serve as 179.12 manager for operating and maintenance purposes. The boards may 179.13 contract with independent third parties for maintenance-related 179.14 activities, services, and supplies, and may use the services of 179.15 the department of administration where economically feasible to 179.16 do so. If the boards cannot agree or resolve a dispute about 179.17 operations or maintenance of the facilities, they may request 179.18 the commissioner of administration to appoint a representative 179.19 from the department's real estate management division to serve 179.20 as arbitrator of the dispute with authority to issue a written 179.21 resolution of the dispute. 179.22 Subd. 4. [REVENUE BONDS.] The commissioner of finance, on 179.23 request of the governor, may sell and issue revenue bonds in an 179.24 aggregate principal amount up to $38,000,000 to achieve the 179.25 purposes described in subdivisions 1 and 2, plus the amount 179.26 needed to pay issuance costs and interest costs and to establish 179.27 necessary reserves to secure the bonds. The commissioner of 179.28 finance may issue bonds for the purpose of refunding bonds 179.29 issued under this subdivision. The bonds may be sold and issued 179.30 on terms and in a manner the commissioner of finance determines 179.31 to be in the best interests of the state. The proceeds of the 179.32 bonds must be credited to a bond proceeds account in the pension 179.33 building fund which the commissioner of finance must create in 179.34 the state treasury. 179.35 Subd. 5. [SECURITY.] The boards may pledge any or all 179.36 assets of the boards as security for the bonds. The bonds and 180.1 the interest on them must be paid solely from and secured by all 180.2 assets of the boards pledged and appropriated for these purposes 180.3 to the debt service fund created in subdivision 6 and any 180.4 investment income on the fund and any reserve established for 180.5 this purpose. The bonds are not public debt, and the full 180.6 faith, credit, and taxing powers of the state are not pledged 180.7 for their payment. The bonds and the interest on them must not 180.8 be paid, directly or indirectly, in whole or in part, from a tax 180.9 of statewide application on any class of property, income, 180.10 transaction, or privilege. 180.11 Subd. 6. [DEBT SERVICE FUND.] There is established in the 180.12 state treasury a separate and special pension building debt 180.13 service fund. Money in the funds managed by the boards is 180.14 appropriated to the boards for transfer to the pension building 180.15 debt service fund. Money appropriated and transferred to the 180.16 fund and investment income on it on hand or required to be 180.17 transferred to the fund must be used and is irrevocably 180.18 appropriated to pay when due the principal of and interest on 180.19 the bonds authorized in subdivision 4. 180.20 Subd. 7. [COVENANTS; AGREEMENTS.] The commissioner of 180.21 finance may, for and on behalf of the state, enter into 180.22 covenants and agreements not inconsistent with subdivisions 1 to 180.23 6 as may be necessary or desirable to facilitate the sale and 180.24 issuance of the bonds on terms favorable to the state, 180.25 including, but not limited to, covenants and agreements relating 180.26 to the payment of and security for the bonds, tax exemption, and 180.27 disclosure of information required by federal and state 180.28 securities laws. The covenants and agreements of the 180.29 commissioner of finance constitute an enforceable contract of 180.30 the state and the state pledges and agrees with the holders of 180.31 any bonds that the state will not limit or alter the rights 180.32 vested in the commissioner of finance to fulfill the terms of 180.33 the covenants or agreements made with the holders of the bonds, 180.34 or in any way impair the rights and remedies of the holders 180.35 until the bonds, together with the interest on them, with 180.36 interest on any unpaid installments of interest, and all costs 181.1 and expenses in connection with any action or proceeding by or 181.2 on behalf of the holders, are fully met and discharged. The 181.3 commissioner of finance may include this pledge and agreement of 181.4 the state in any covenant or agreement with the holders of the 181.5 bonds. Sections 16A.672 and 16A.675 apply to the bonds. 181.6 Sec. 52. [CROSS-REFERENCE CHANGES.] 181.7 In the next and subsequent editions of Minnesota Statutes, 181.8 the revisor of statutes shall, in each section indicated in 181.9 column A, replace the cross-reference specified in column B with 181.10 the cross-reference set forth in column C: 181.11 column A column B column C 181.12 3.751, subd. 1 356.89 356B.10 181.13 3A.02, subd. 1 356.215, subd. 4d 356.215, subd. 8 181.14 3A.02, subd. 4 356.215, subd. 4d 356.215, subd. 8 181.15 3A.11, subd. 1 356.215, subd. 4d 356.215, subd. 8 181.16 11A.18, subd. 6 356.215, subd. 4d 356.215, subd. 8 181.17 11A.18, subd. 9 356.215, subd. 4d 356.215, subd. 8 181.18 11A.18, subd. 11 356.215, subd. 4d 356.215, subd. 8 181.19 13.631, subd. 2 356.80 356.49 181.20 69.77, subd. 2b 356.215, subds. 4 356.215, subds. 4 to 15 181.21 to 4k 181.22 69.77, subd. 2b 356.215, subd. 4d 356.215, subd. 8 181.23 69.773, subd. 2 356.215, subd. 4d 356.215, subd. 8 181.24 69.773, subd. 4 356.215, subd. 4d 356.215, subd. 8 181.25 352.01, subd. 12 356.215, subd. 4d 356.215, subd. 8 181.26 352.115, subd. 3 356.119, subd. 1 356.315, subd. 1 181.27 352.115, subd. 3 356.119, subd. 2 356.315, subd. 2 181.28 352.115, subd. 10 356.58 356.47 181.29 352.119, subd. 2 356.215, subd. 4d 356.215, subd. 8 181.30 352.72, subd. 2 356.215, subd. 4d 356.215, subd. 8 181.31 352.87, subd. 3 356.119, subd. 2a 356.315, subd. 2a 181.32 352.91, subd. 5 356.215, subd. 4d 356.215, subd. 8 181.33 352.93, subd. 2 356.119, subd. 5 356.315, subd. 5 181.34 352.95, subd. 1 356.119, subd. 5 356.315, subd. 5 181.35 352B.08, subd. 2 356.119, subd. 6 356.315, subd. 6 181.36 352B.08, subd. 3 356.215, subd. 4d 356.215, subd. 8 182.1 352B.10, subd. 1 356.119, subd. 6 356.315, subd. 6 182.2 352B.26, subd. 3 356.215, subd. 4d 356.215, subd. 8 182.3 352B.30, subd. 4 356.215, subd. 4d 356.215, subd. 8 182.4 352C.031, subd. 4 356.215, subd. 4d 356.215, subd. 8 182.5 352C.033 356.215, subd. 4d 356.215, subd. 8 182.6 353.01, subd. 14 356.215, subd. 4d 356.215, subd. 8 182.7 353.03, subd. 3 356.215, subd. 4, 356.215, subd. 8 182.8 clause (4) 182.9 353.271, subd. 2 356.215, subd. 4d 356.215, subd. 8 182.10 353.29, subd. 3 356.119, subd. 3 356.315, subd. 3 182.11 353.29, subd. 3 356.119, subd. 4 356.315, subd. 4 182.12 353.29, subd. 3 356.119, subd. 1 356.315, subd. 1 182.13 353.29, subd. 3 356.119, subd. 2 356.315, subd. 2 182.14 353.29, subd. 4 356.371, subd. 3 356.46, subd. 3 182.15 353.37, subd. 3a 356.58 356.47 182.16 353.651, subd. 3 356.119, subd. 6 356.315, subd. 6 182.17 353.656, subd. 1 356.119, subd. 6 356.315, subd. 6 182.18 353.665, subd. 8 356.215, subd. 4d 356.215, subd. 8 182.19 353.71, subd. 2 356.215, subd. 4d 356.215, subd. 8 182.20 353A.08, subd. 1 356.215, subd. 4d 356.215, subd. 8 182.21 353A.08, subd. 2 356.215, subd. 4d 356.215, subd. 8 182.22 353A.09, subd. 2 356.215, subd. 4d 356.215, subd. 8 182.23 353A.09, subd. 5 356.215, subd. 4d 356.215, subd. 8 182.24 353E.04, subd. 3 356.119, subd. 5a 356.315, subd. 5a 182.25 353E.06, subd. 1 356.119, subd. 5a 356.315, subd. 5a 182.26 354.05, subd. 7 356.215, subd. 4d 356.215, subd. 8 182.27 354.07, subd. 1 356.215, subd. 4d 356.215, subd. 8 182.28 354.44, subd. 2 356.215, subd. 4d 356.215, subd. 8 182.29 354.44, subd. 5 356.58 356.47 182.30 354.44, subd. 6 356.119, subd. 1 356.315, subd. 1 182.31 354.44, subd. 6 356.119, subd. 2 356.315, subd. 2 182.32 354.44, subd. 6 356.119, subd. 3 356.315, subd. 3 182.33 354.44 356.119 356.315 182.34 354.45, subd. 2 356.215, subd. 4d 356.215, subd. 8 182.35 354.48, subd. 3 356.215, subd. 4d 356.215, subd. 8 182.36 354.55, subd. 11 356.215, subd. 4d 356.215, subd. 8 183.1 354.63, subd. 2 356.215, subd. 4d 356.215, subd. 8 183.2 354A.011, subd. 3 356.215, subd. 4d 356.215, subd. 8 183.3 354A.026 356.215, subd. 4g 356.215, subd. 11 183.4 354A.105 356.215, subd. 4d 356.215, subd. 8 183.5 354A.12, subd. 1a 356.215, subd. 4d 356.215, subd. 8 183.6 354A.31, subd. 1a 356.371, subd. 3 356.46, subd. 3 183.7 354A.31, subd. 3 356.58 356.47 183.8 354A.31, subd. 4 356.119, subd. 1 356.315, subd. 1 183.9 354A.31, subd. 4 356.119, subd. 2 356.315, subd. 2 183.10 354A.31, subd. 4a 356.119, subd. 1 356.315, subd. 1 183.11 354A.31, subd. 4a 356.119, subd. 2 356.315, subd. 2 183.12 354A.34 356.215, subd. 4d 356.215, subd. 8 183.13 422A.01, subd. 6 356.215, subd. 4d 356.215, subd. 8 183.14 422A.06, subd. 5 356.215, subd. 4d 356.215, subd. 8 183.15 422A.08, subd. 5a 356.215, subd. 4d 356.215, subd. 8 183.16 422A.101, subd. 3 356.865 356.43 183.17 422A.15, subd. 2 356.215, subd. 4d 356.215, subd. 8 183.18 422A.15, subd. 3 356.215, subd. 4d 356.215, subd. 8 183.19 422A.16, subd. 2 356.215, subd. 4d 356.215, subd. 8 183.20 422A.17 356.215, subd. 4d 356.215, subd. 8 183.21 422A.23, subd. 12 356.215, subd. 4d 356.215, subd. 8 183.22 423A.02, subd. 1 356.215, subd. 4, 356.215, subd. 8 183.23 clause (4) 183.24 490.121, subd. 20 356.215, subd. 4d 356.215, subd. 8 183.25 490.121, subd. 22 356.119, subd. 7 356.315, subd. 7 183.26 490.124, subd. 1 356.119, subd. 7 356.315, subd. 7 183.27 490.124, subd. 1 356.119, subd. 8 356.315, subd. 8 183.28 490.124, subd. 5 356.215, subd. 4d 356.215, subd. 8 183.29 Sec. 53. [REPEALER.] 183.30 Subdivision 1. [REPEALER OF OBSOLETE 183.31 PROVISIONS.] Minnesota Statutes 2000, sections 356.325; 356.35; 183.32 356.36; 356.37; 356.38; 356.39; 356.45; 356.451; 356.452; 183.33 356.453; 356.454; and 356.455, are repealed. 183.34 Subd. 2. [REPEALER OF PROVISIONS REORGANIZED.] (a) 183.35 Minnesota Statutes 2000, sections 356.19; 356.305; 356.306; 183.36 356.31; 356.371, subdivisions 2 and 3; 356.372; 356.615; 356.71; 184.1 356.80; 356.81; 356.86; 356.865; 356.88; and 356.89, are 184.2 repealed. 184.3 (b) Minnesota Statutes 2001 Supplement, sections 356.371, 184.4 subdivision 1; and 356.866, are repealed. 184.5 Subd. 3. [REPEALER TO RESOLVE REVISOR NOTE.] Laws 1997, 184.6 chapter 233, article 1, section 58, is repealed. 184.7 Sec. 54. [EFFECTIVE DATE.] 184.8 (a) Sections 1 to 53 are effective July 1, 2002. 184.9 (b) Section 51 is the continuation of the public pension 184.10 facility authority previously contained in Minnesota Statutes 184.11 2000, section 356.89, and may not be considered a grant of 184.12 authority to build or bond for a second building. 184.13 ARTICLE 13 184.14 JOINT RETIREMENT PLAN 184.15 BUILDING LEASE AUTHORITY 184.16 Section 1. Minnesota Statutes 2000, section 356.89, 184.17 subdivision 3, is amended to read: 184.18 Subd. 3. [CONTRACTING PROCEDURES.] (a) The commissioner 184.19 may enter into a contract for facilities with a contractor to 184.20 furnish the architectural, engineering, and related services as 184.21 well as the labor, materials, supplies, equipment, and related 184.22 construction services on the basis of a request for 184.23 qualifications and competitive responses received through a 184.24 request for proposals process that must include the items listed 184.25 in paragraphs (b) to (i). 184.26 (b) Before issuing a request for qualifications and a 184.27 request for proposals, the commissioner, with the assistance of 184.28 the boards, shall prepare performance criteria and 184.29 specifications that include: 184.30 (1) a general floor plan or layout indicating the general 184.31 dimensions of the public building and space requirements; 184.32 (2) design criteria for the exterior and site area; 184.33 (3) performance specifications for all building systems and 184.34 components to ensure quality and cost efficiencies; 184.35 (4) conceptual floor plans for systems space; 184.36 (5) preferred types of interior finishes, styles of 185.1 windows, lighting and outlets, doors, and features such as 185.2 built-in counters and telephone wiring; 185.3 (6) mechanical and electrical requirements; 185.4 (7) special interior features required; and 185.5 (8) a completion schedule. 185.6 (c) The commissioner shall first solicit statements of 185.7 qualifications from eligible contractors and select more than 185.8 one qualified contractor based upon experience, technical 185.9 competence, past performance, capability to perform, and other 185.10 appropriate facts. Contractors selected under this process must 185.11 be, employ, or have as a partner, member, coventurer, or 185.12 subcontractor, persons licensed and registered under chapter 326 185.13 to provide the services required to design and complete the 185.14 project. The commissioner does not have to select any of the 185.15 respondents if none reasonably fulfill the criteria set forth in 185.16 this paragraph. 185.17 (d) The contractors selected shall be asked to respond to a 185.18 request for proposals. Responses must include site plans, 185.19 design concept, elevation, statement of material to be used, 185.20 floor layouts, a detailed development budget, and a total cost 185.21 to complete the project. The proposal must indicate that the 185.22 contractor obtained at least two proposals from subcontractors 185.23 for each item of work and must set forth how the subcontractors 185.24 were selected. The commissioner, with the assistance of the 185.25 boards, shall evaluate the proposals based upon design, cost, 185.26 quality, aesthetics, and the best overall value to the state 185.27 pension funds. The commissioner need not select any of the 185.28 proposals submitted and reserves the right to reject any and all 185.29 proposals, and may terminate the process or revise the request 185.30 for proposals and solicit new proposals if the commissioner 185.31 determines that the best interests of the pension funds would be 185.32 better served by doing so. Proposals submitted are nonpublic 185.33 data until the contract is awarded. 185.34 (e) The contractor selected must comply with sections 185.35 574.26 to 574.261. Before executing a final contract, the 185.36 contractor selected shall certify a firm construction price and 186.1 completion date. 186.2 (f) The commissioner may consider building sites in the 186.3 city of St. Paul and surrounding suburbs. 186.4 (g) Any land, building, or facility leased, constructed, or 186.5 acquired and any leasehold interest acquired under this section 186.6 must be held by the state in trust for the three retirement 186.7 systems as tenants in common. Each retirement system fund must 186.8 consider its interest as a fixed asset of its pension fund in 186.9 accordance with governmental accounting standards. 186.10 (h) The commissioner may lease to another governmental 186.11 subdivision, or to a private company under contract with the 186.12 state board of investment or with the board of directors of the 186.13 Minnesota state retirement system, whichever applies, to provide 186.14 deferred compensation services under section 352.96, any portion 186.15 of the funds' building and lands that is not required for their 186.16 direct use upon terms and conditions they deem to be in the best 186.17 interest of the pension funds. Any income accruing from the 186.18 rentals must be separately accounted for and utilized to offset 186.19 ongoing administrative expenses and any excess must be carried 186.20 forward for future administrative expenses. The commissioner 186.21 may also enter into lease agreements for the establishment of 186.22 satellite offices should the boards find them to be necessary in 186.23 order to assure their members reasonable access to their 186.24 services. The commissioner may lease under section 16B.24 any 186.25 portion of the facilities not required for the direct use of the 186.26 boards. 186.27 (i) The boards shall formulate and adopt a written working 186.28 agreement that sets forth the nature of each retirement system's 186.29 ownership interest, the duties and obligations of each system 186.30 toward the construction, operation, and maintenance costs of its 186.31 facilities, and identifies one retirement fund to serve as 186.32 manager for operating and maintenance purposes. The boards may 186.33 contract with independent third parties for maintenance-related 186.34 activities, services, and supplies, and may use the services of 186.35 the department of administration where economically feasible to 186.36 do so. If the boards cannot agree or resolve a dispute about 187.1 operations or maintenance of the facilities, they may request 187.2 the commissioner of administration to appoint a representative 187.3 from the department's real estate management division to serve 187.4 as arbitrator of the dispute with authority to issue a written 187.5 resolution of the dispute. 187.6 Sec. 2. [EFFECTIVE DATE.] 187.7 Section 1 is effective July 1, 2002. 187.8 ARTICLE 14 187.9 VOLUNTEER FIREFIGHTER RELIEF 187.10 ASSOCIATIONS SERVICE PENSION ELIGIBILITY 187.11 Section 1. Minnesota Statutes 2000, section 424A.02, 187.12 subdivision 1, is amended to read: 187.13 Subdivision 1. [AUTHORIZATION.] (a) A relief association, 187.14 when its articles of incorporation or bylaws so provide, may pay 187.15 out of the assets of its special fund a service pension to each 187.16 of its members who: (1) separates from active service with the 187.17 fire department; (2) reaches age 50; (3) completes at least five 187.18 years of active service as an active member of the municipal 187.19 fire department to which the relief association is associated; 187.20 (4) completes at least five years of active membership with the 187.21 relief association before separation from active service; and 187.22 (5) complies with any additional conditions as to age, service, 187.23 and membership that are prescribed by the bylaws of the relief 187.24 association. A service pension computed under this section may 187.25 be prorated monthly for fractional years of service, if the 187.26 bylaws or articles of incorporation of the relief association so 187.27 provide. The service pension may be paid whether or not the 187.28 municipality or nonprofit firefighting corporation to which the 187.29 relief association is associated qualifies for fire state aid 187.30 under chapter 69. 187.31 (b) In the case of a member who has completed at least five 187.32 years of active service as an active member of the fire 187.33 department to which the relief association is associated on the 187.34 date that the relief association is established and 187.35 incorporated, the requirement that the member complete at least 187.36 five years of active membership with the relief association 188.1 before separation from active service may be waived by the board 188.2 of trustees of the relief association if the member completes at 188.3 least five years of inactive membership with the relief 188.4 association before the payment of the service pension. During 188.5 the period of inactive membership, the member is not entitled to 188.6 receive disability benefit coverage, is not entitled to receive 188.7 additional service credit towards computation of a service 188.8 pension, and is considered to have the status of a person 188.9 entitled to a deferred service pension under subdivision 7. 188.10 (c) No municipality or nonprofit firefighting corporation 188.11 may delegate the power to take final action in setting a service 188.12 pension or ancillary benefit amount or level to the board of 188.13 trustees of the relief association or to approve in advance a 188.14 service pension or ancillary benefit amount or level equal to 188.15 the maximum amount or level that this chapter would allow rather 188.16 than a specific dollar amount or level. 188.17 (d) No relief association as defined in section 424A.001, 188.18 subdivision 4, may pay a service pension or disability benefit 188.19 to a former member of the relief association if that person has 188.20 not separated from active service with the fire department to 188.21 which the relief association is directly associated, unless: 188.22 (1) the person is employed subsequent to retirement by the 188.23 municipality or the independent nonprofit firefighting 188.24 corporation, whichever applies, to perform duties within the 188.25 municipal fire department or corporation on a full-time basis; 188.26 (2) the governing body of the municipality or of the 188.27 corporation has filed its determination with the board of 188.28 trustees of the relief association that the person's experience 188.29 with and service to the fire department in that person's 188.30 full-time capacity would be difficult to replace; and 188.31 (3) the bylaws of the relief association were amended to 188.32 provide for the payment of a service pension or disability 188.33 benefit for such full-time employees. 188.34 ARTICLE 15 188.35 ADDITIONAL PROVISIONS 188.36 Section 1. Laws 1997, chapter 202, article 2, section 61, 189.1 as amended by Laws 1999, chapter 250, article 1, section 106, 189.2 and Laws 2001, First Special Session chapter 10, article 2, 189.3 section 85, is amended to read: 189.4 Sec. 61. [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 189.5 Appointing authorities in state government may allow each 189.6 employee to take an unpaid leave of absence for up to 320 hours 189.7 during the period ending June 30, 2003, and an additional 160 189.8 hours during the period beginning July 1, 2003, and ending June 189.9 30, 2005. Each appointing authority approving such a leave 189.10 shall allow the employee to continue accruing vacation and sick 189.11 leave, be eligible for paid holidays and insurance benefits, 189.12 accrue seniority, and accrue service credit in state retirement 189.13 plans permitting service credits for authorized leaves of 189.14 absence as if the employee had actually been employed during the 189.15 time of the leave. If the leave of absence is for one full pay 189.16 period or longer, any holiday pay shall be included in the first 189.17 payroll warrant after return from the leave of absence. The 189.18 appointing authority shall attempt to grant requests for unpaid 189.19 leaves of absence consistent with the need to continue efficient 189.20 operation of the agency. However, each appointing authority 189.21 shall retain discretion to grant or refuse to grant requests for 189.22 leaves of absence and to schedule and cancel leaves, subject to 189.23 applicable provisions of collective bargaining agreements and 189.24 compensation plans. 189.25 Sec. 2. [CLARIFICATION OF APPROPRIATION.] 189.26 Subdivision 1. [PURPOSE.] This section clarifies treatment 189.27 extended to an individual specified in Laws 2001, chapter 169, 189.28 section 5, and is intended to eliminate any potential windfall 189.29 to the public employees retirement association police and fire 189.30 plan fund and the public employees retirement association 189.31 general employees plan fund that may result from that session 189.32 law. 189.33 Subd. 2. [ELIGIBILITY.] The eligible individual is an 189.34 individual specified in Laws 2001, chapter 169, section 5, who 189.35 was an assistant commissioner in the department of public safety 189.36 from April 30, 1994, through May 31, 1998, while on an 190.1 intergovernmental mobility assignment or assignments to the 190.2 state from the city of St. Paul police department. 190.3 Subd. 3. [SALARY INCREMENT.] The salary increment in any 190.4 applicable year or portion of a year is the difference between 190.5 the salary the eligible individual in subdivision 2 received as 190.6 assistant commissioner and the salary upon which pension 190.7 contributions were made for that year or portion of a year. 190.8 Subd. 4. [BENEFIT COMPUTATIONS.] The retirement benefits, 190.9 or disability benefits, if applicable, under the public 190.10 employees retirement association police and fire plan and the 190.11 public employees retirement association general plan are to be 190.12 computed based on plan law applicable to the eligible individual 190.13 under subdivision 2 given the eligible individual's termination 190.14 of service date or dates, or the disability benefit accrual date 190.15 or dates as applicable, except for inclusion of salary 190.16 increments under subdivision 3 for purposes of determining 190.17 average salary under sections 353.29, subdivision 2, and 190.18 353.651, subdivision 2. 190.19 Subd. 5. [ANNUITY RESERVE COMPARISONS.] The executive 190.20 director of the public employees retirement association is to 190.21 determine the increased actuarial reserves, if any, needed to 190.22 support the annuities from the two applicable public employees 190.23 retirement association retirement funds on the effective date of 190.24 retirement or disability from the applicable plans due to this 190.25 section. 190.26 Subd. 6. [COMPARISON TO APPROPRIATION AMOUNTS.] The total 190.27 amount determined under subdivision 5, if zero or positive, is 190.28 to be subtracted from the total value of any appropriation 190.29 received by the public employees retirement association under 190.30 Laws 2001, chapter 169, section 5, on the date computations 190.31 under subdivision 5 occur assuming 8.5 percent interest 190.32 compounded annually from the date the appropriation is received 190.33 until the computation date under subdivision 5. 190.34 Subd. 7. [DISPOSITION OF EXCESS.] The amount determined 190.35 under subdivision 6, net of the value of any foregone employer 190.36 contributions, including 8.5 percent interest compounded 191.1 annually relating to the salary increments under subdivision 3, 191.2 if any, is to be redeposited within 30 days following the date 191.3 of that determination in the state's general fund. 191.4 Subd. 8. [INTERNAL ALLOCATIONS.] Notwithstanding any law 191.5 to the contrary, the executive director is authorized to place 191.6 amounts received, if any, due to Laws 2001, chapter 169, section 191.7 5, in the public employees retirement association general plan 191.8 fund or the public employees retirement association police and 191.9 fire plan fund, or to allocate amounts between these funds as 191.10 deemed appropriate. Following the determinations required by 191.11 this section, the executive director may again reallocate 191.12 amounts between the two funds to reflect a reasonable allocation 191.13 of the remaining net appropriation amount. 191.14 Subd. 9. [CONTRIBUTION RATIFICATION.] Contributions and 191.15 interest paid to the association relating to the salary 191.16 increments referred to in subdivision 3 are authorized for 191.17 deposit in the public employees retirement association police 191.18 and fire plan fund and are ratified. 191.19 Sec. 3. [LUMP SUM PRE-1973 RETIREE POST RETIREMENT 191.20 ADJUSTMENT IN CERTAIN INSTANCES.] 191.21 (a) Notwithstanding any provision of Minnesota Statutes 191.22 2001 Supplement, section 356.866, or Minnesota Statutes, section 191.23 356.431, to the contrary, an eligible person described in 191.24 paragraph (b) may elect to receive the pre-1973 post retirement 191.25 adjustment in a lump sum payment rather than as an annuity 191.26 increase. The election must be made before September 1, 2002, 191.27 and is irrevocable by the annuitant or benefit recipient. For 191.28 the December 2002 lump sum payment, the amount must be the total 191.29 of the monthly amounts remaining unpaid to the annuitant or the 191.30 benefit recipient after the election. 191.31 (b) An eligible person is a person who: 191.32 (1) was born on December 5, 1908; 191.33 (2) is the survivor of a deceased annuitant of the general 191.34 employees retirement plan of the public employees retirement 191.35 association who was born on March 22, 1904, who retired on May 191.36 1, 1969, and who died on April 9, 1980; and 192.1 (3) waived an annuity from the general employees retirement 192.2 plan of the public employees retirement association in favor of 192.3 a surviving spouse benefit on May 1, 1980. 192.4 Sec. 4. [EFFECTIVE DATE.] 192.5 Sections 1 to 3 are effective the day following final 192.6 enactment. 192.7 ARTICLE 16 192.8 COORDINATED PROGRAM OF LEGISLATORS RETIREMENT PLAN; 192.9 SOCIAL SECURITY REFERENDUM 192.10 Section 1. [3A.15] [COORDINATED PROGRAM OF LEGISLATORS 192.11 RETIREMENT PLAN.] 192.12 The coordinated program of the legislators retirement plan 192.13 is created. The provisions of sections 3A.01 to 3A.13 apply to 192.14 the coordinated program. 192.15 [EFFECTIVE DATE.] This section is effective the day 192.16 following final enactment. 192.17 Sec. 2. [355.629] [SECOND SOCIAL SECURITY REFERENDUM.] 192.18 Subdivision 1. [ELECTION OF SOCIAL SECURITY COVERAGE.] Any 192.19 member of the legislators retirement plan established under 192.20 chapter 3A who did not elect coverage under an agreement under 192.21 section 218(d) of the Social Security Act as provided for in 192.22 section 355.624 is entitled to elect future social security 192.23 coverage and retroactive coverage for the period consistent with 192.24 applicable federal law, in a second social security referendum. 192.25 Any member who so elects shall become a member of the 192.26 coordinated program of the legislators retirement plan under 192.27 section 3A.15. The governor shall set a date for the referendum 192.28 and shall undertake any duties to amend the state's Social 192.29 Security Act, section 218 agreement, with the secretary of 192.30 health and human services. 192.31 Subd. 2. [PAYMENT OF RETROACTIVE SOCIAL SECURITY 192.32 TAXES.] For any service by a legislator who is in office on the 192.33 date of the agreement or modification of the agreement with the 192.34 secretary of health and human services, the executive director 192.35 of the Minnesota state retirement system shall cause to be paid 192.36 an amount for each legislator, including an amount for 193.1 retroactive coverage, equal to the taxes which would have been 193.2 imposed on the legislator and state of Minnesota by the Federal 193.3 Insurance Contributions Act had the service been covered at the 193.4 time performed. This payment shall be computed from the date of 193.5 retroactive coverage to the date that deductions are first taken 193.6 from the wages of each legislator for social security coverage. 193.7 Before making a payment on behalf of a legislator, the executive 193.8 director must receive from the legislator the funds necessary to 193.9 make the payment. Nothing in this section shall require a 193.10 legislator to elect retroactive social security coverage. 193.11 Subd. 3. [DEDUCTION FROM WAGES.] A legislator who elects 193.12 social security coverage under this section shall have a 193.13 deduction taken from wages in an amount equal to the employer 193.14 contribution required by this section. 193.15 [EFFECTIVE DATE.] This section is effective the day 193.16 following final enactment. 193.17 ARTICLE 17 193.18 MINNEAPOLIS POLICE OPTIONAL ANNUITIES 193.19 Section 1. Minnesota Statutes 2000, section 423B.09, 193.20 subdivision 6, is amended to read: 193.21 Subd. 6. [OPTIONAL ANNUITIES.] A member who is retired or 193.22 disabled on the effective date of Laws 1997, chapter 233, 193.23 article 4, section 6, may elect an optional retirement annuity 193.24 within 60 days of the effective date of Laws 1997, chapter 233, 193.25 article 4, section 6, instead of the normal retirement annuity. 193.26 A member who retires or becomes disabled after the effective 193.27 date of Laws 1997, chapter 233, article 4, section 6, may elect 193.28 an optional retirement annuity prior to the receipt of any 193.29 benefits. The optional retirement annuity may be a 50 percent, 193.30 a 75 percent, or a 100 percent joint and survivor annuity 193.31 without reinstatement in the event of the designated beneficiary 193.32 predeceasing the member or a 50 percent, a 75 percent, or a 100 193.33 percent joint and survivor annuity with reinstatement in the 193.34 event of the designated beneficiary predeceasing the member. 193.35 Optional retirement annuity forms must be actuarially equivalent 193.36 to the service pension and automatic survivor coverage otherwise 194.1 payable to the retiring member and the member's 194.2 beneficiaries. A member may only designate the member's spouse 194.3 as the recipient of a joint and survivor annuity and no benefit 194.4 or annuity may be paid to a person who does not meet the 194.5 definition of a surviving spouse member under section 423B.01, 194.6 subdivision 17. Once selected, the optional annuity is 194.7 irrevocable. 194.8 Sec. 2. [EFFECTIVE DATE.] 194.9 Section 1 is effective the day following final enactment 194.10 and applies to all joint annuity options selected by members of 194.11 the Minneapolis police relief association. 194.12 ARTICLE 18 194.13 JUDGES RETIREMENT PLAN 194.14 Section 1. Laws 2000, chapter 461, article 18, section 10, 194.15 is amended to read: 194.16 Sec. 10. [EFFECTIVE DATE.] 194.17 Sections 1 to 9 are effectiveon July 1, 2000the day 194.18 following final enactment. 194.19 [EFFECTIVE DATE.] This section is effective retroactive to 194.20 May 16, 2000.