Minnesota Legislature
HF 3127
5th Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to retirement; various retirement plans; 1.3 clarifying the laws applicable to the remaining local 1.4 police and paid firefighter pension plans; repealing 1.5 obsolete local police and paid firefighter pension 1.6 plan laws; providing public employee pension coverage 1.7 for certain foreign citizens; clarifying membership 1.8 eligibility and allowable service credit for the 1.9 public employees retirement association; requiring 1.10 membership for charter school teachers in the teachers 1.11 retirement association; providing for the payment of 1.12 unpaid closed charter school retirement contributions 1.13 from charter school lease aid; eliminating 1.14 contribution rate increases in the local government 1.15 correctional service retirement plan; establishing 1.16 provisions relating to employees of the Kanabec 1.17 hospital if the hospital is privatized; extending the 1.18 expiration date for certain prior service credit 1.19 purchase authorizations; recodifying social security 1.20 coverage provisions; implementing recommended changes 1.21 in salary actuarial assumptions; clarifying the 1.22 restrictions on supplemental and local pension plans 1.23 for plans funded from accumulated sick and vacation 1.24 leave; reorganizing and revising various general 1.25 retirement provisions; instructing the revisor of 1.26 statutes; authorizing the commissioner of 1.27 administration to lease pension fund facilities to 1.28 deferred compensation service providers; authorizing 1.29 certain volunteer firefighters to receive service 1.30 pensions or disability benefits without terminating 1.31 active service; amending Minnesota Statutes 2000, 1.32 sections 69.77; 69.80; 353.01, by adding a 1.33 subdivision; 353.64, subdivision 7a; 353A.08, 1.34 subdivision 6a; 353E.02, subdivision 1, by adding a 1.35 subdivision; 353E.03; 353F.02, subdivision 4; 1.36 354A.011, subdivision 27; 354A.12, subdivision 3d; 1.37 355.01, subdivisions 1, 3, 6, 8, by adding 1.38 subdivisions; 355.02; 355.03; 355.05; 355.07; 355.08; 1.39 356.001; 356.20, subdivisions 1, 2, 3, 4, 4a; 356.215, 1.40 as amended; 356.216; 356.217; 356.219; 356.22; 356.23; 1.41 356.24, subdivisions 1b, 1c, 2; 356.245; 356.25; 1.42 356.30; 356.302; 356.303; 356.32; 356.40; 356.41; 1.43 356.50; 356.55, as amended; 356.551; 356.611; 356.65, 1.44 subdivision 2; 356.87; 356.89, subdivision 3; 423A.17; 1.45 423A.171; 423B.09, subdivision 6; 424A.02, subdivision 1.46 1; 424A.09; Minnesota Statutes 2001 Supplement, 2.1 sections 352.01, subdivision 11; 353.01, subdivisions 2.2 2a, 2b, 11b, 16; 353.27, subdivisions 4, 11; 354.05, 2.3 subdivisions 2, 13; 356.24, subdivision 1; 356.555; 2.4 356.62; 356.65, subdivision 1; Laws 1997,chapter 202, 2.5 article 2, section 61, as amended; Laws 1999, chapter 2.6 222, article 16, section 16; Laws 2000, chapter 461, 2.7 article 10, section 3, as amended; Laws 2000, chapter 2.8 461, article 12, section 20; Laws 2001, First Special 2.9 Session chapter 10, article 6, section 21; proposing 2.10 coding for new law in Minnesota Statutes, chapters 3A; 2.11 355; 356; proposing coding for new law as Minnesota 2.12 Statutes, chapter 356B; repealing Minnesota Statutes 2.13 2000, sections 69.25; 69.26; 69.27; 69.28; 69.29; 2.14 69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 69.40; 2.15 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 2.16 69.48; 69.49; 69.50; 69.51; 69.52; 69.53; 69.62; 2.17 69.78; 297I.10, subdivision 2; 355.01, subdivisions 2, 2.18 4, 5, 9, 10; 355.11; 355.12; 355.13; 355.14; 355.15; 2.19 355.16; 355.17; 355.201; 355.202; 355.203; 355.204; 2.20 355.205; 355.206; 355.207; 355.208; 355.209; 355.21; 2.21 355.22; 355.23; 355.24; 355.25; 355.26; 355.27; 2.22 355.28; 355.281; 355.282; 355.283; 355.284; 355.285; 2.23 355.286; 355.287; 355.288; 355.29; 355.291; 355.292; 2.24 355.293; 355.294; 355.295; 355.296; 355.297; 355.298; 2.25 355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 2.26 355.41; 355.42; 355.43; 355.44; 355.45; 355.46; 2.27 355.48; 355.49; 355.50; 355.51; 355.52; 355.54; 2.28 355.55; 355.56; 355.57; 355.58; 355.59; 355.60; 2.29 355.61; 355.621; 355.622; 355.623; 355.624; 355.625; 2.30 355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 2.31 355.74; 355.75; 355.76; 355.77; 355.78; 355.79; 2.32 355.80; 355.81; 355.90; 356.19; 356.305; 356.306; 2.33 356.31; 356.325; 356.35; 356.36; 356.37; 356.371, 2.34 subdivisions 2, 3; 356.372; 356.38; 356.39; 356.45; 2.35 356.451; 356.452; 356.453; 356.454; 356.455; 356.615; 2.36 356.71; 356.80; 356.81; 356.86; 356.865; 356.88; 2.37 356.89; 423.37; 423.371; 423.372; 423.373; 423.374; 2.38 423.375; 423.377; 423.378; 423.379; 423.38; 423.381; 2.39 423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 2.40 423.388; 423.389; 423.39; 423.391; 423.392; 423.801; 2.41 423.802; 423.803; 423.804; 423.805; 423.806; 423.808; 2.42 423.809; 423.810; 423.812; 423.813; 423.814; 423.90; 2.43 423A.03; 424.01; 424.02; 424.03; 424.04; 424.05; 2.44 424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 2.45 424.17; 424.18; 424.19; 424.20; 424.21; 424.22; 2.46 424.23; 424.24; 424.25; 424.27; 424.28; 424.29; 2.47 Minnesota Statutes 2001 Supplement, sections 353.01, 2.48 subdivision 39; 356.371, subdivision 1; 356.866; 2.49 Special Laws 1889, chapter 425; Special Laws 1891, 2.50 chapter 11; Laws 1897, chapters 389; 390; Laws 1915, 2.51 chapter 68; Laws 1917, chapter 196; Laws 1919, 2.52 chapters 68, 515; Laws 1921, chapter 118; Laws 1923, 2.53 chapter 54; Laws 1925, chapter 197; Laws 1931, chapter 2.54 48; Laws 1933, chapter 122; Laws 1935, chapters 92; 2.55 192; 208; 259; Laws 1937, chapters 132; 197; 253; Laws 2.56 1939, chapters 124; 304; Laws 1941, chapters 74; 182; 2.57 196; Laws 1943, chapters 170; 267; 397; 413; 432; Laws 2.58 1945, chapters 74; 182; 277; 300; Laws 1947, chapters 2.59 40; 43; 101; 274; 329; Laws 1949, chapters 87; 144; 2.60 153; 154; 164; 191; 235; 281; 378; Laws 1951, chapters 2.61 43; 45; 48; 144; 233; 243; 420; 435; 499; Laws 1953, 2.62 chapters 37; 44; 91; 235; 253; 348; 391; 401; 406; 2.63 Laws 1955, chapters 42; 49; 75; 151; 187; 188; 293; 2.64 294; 348; 375; 827; Laws 1957, chapters 10; 16; 36; 2.65 127; 144; 164; 256; 257; 455; 630; 793; Laws 1959, 2.66 chapters 108; 131; 191; 207; 208; 211; 437; Laws 1961, 2.67 chapters 186; 290; 295; 300; 343; 376; 399; 434; 435, 2.68 section 2; 443; 620; 631; 747; Extra Session Laws 2.69 1961, chapters 28; 80; Laws 1963, chapters 36; 208; 2.70 221; 271; 443; 453; 454; 464; 619; 636; 643; 670; 715; 2.71 Laws 1965, chapters 174; 179; 190; 418; 457; 458; 465; 3.1 498; 536; 540; 594; 604; 605; 636; 790; Laws 1967, 3.2 chapters 644; 678; 702; 708; 730; 732; 736; 751; 775; 3.3 783; 798; 807; 816; 848; Laws 1969, chapters 138; 442; 3.4 443; 552; 576; 594; 614; 641; 668; 669; 670; 671; 672; 3.5 686; 694; 716; 849; 1087; Laws 1971, chapters 51; 178; 3.6 407; 549; 614; 807; 809; 810; Extra Session Laws 1971, 3.7 chapter 41; Laws 1973, chapters 286; 287; 346; 359; 3.8 432; 433; 587; Laws 1974, chapters 251; 382; Laws 3.9 1975, chapters 120; 121; 127; 254, sections 1, 2, 3, 3.10 4, 5, 6; 368, section 54; 389; 408; 423; 424; 425; 3.11 Laws 1976, chapters 36; 78; 85; 99; 247; Laws 1977, 3.12 chapters 83; 164, sections 1, 3; 169; 270; 275; 374, 3.13 sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 3.14 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 3.15 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 3.16 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 3.17 53, 54, 55, 56, 57, 58, 59, 60; 429, section 62; Laws 3.18 1978, chapters 563, sections 12, 13, 14, 16, 17, 18, 3.19 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30; 579; 3.20 648; 690, sections 9, 10; 793, section 96; Laws 1979, 3.21 chapters 131, section 3; 216, sections 27, 28, 29, 30, 3.22 31, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44; Laws 3.23 1980, chapters 341, sections 2, 3, 4, 5, 6, 9, 10; 3.24 600, sections 11, 12, 13, 14, 15, 16, 17, 18, 22; 607, 3.25 article XV, section 23; Laws 1981, chapter 68, 3.26 sections 31, 32, 33, 34, 35, 36, 37, 41, 42, 43; Laws 3.27 1981, chapter 224, sections 236, 237, 239, 240, 243, 3.28 244, 247, 248, 252, 253, 258, 259, 260, 261, 263, 264, 3.29 265, 266, 267, 268, 270, 272, 273; Laws 1981, chapter 3.30 297, sections 1, 2; Laws 1982, chapters 402; 443; 574, 3.31 sections 3, 4, 5, 6, 8; 578, article II, section 1, 3.32 subdivision 8, article III, section 18; 610, sections 3.33 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20; Laws 3.34 1983, chapters 47; 74; 84, section 1; 291, sections 8, 3.35 9, 10, 11, 12, 13, 14, 15, 16, 17; Laws 1984, chapter 3.36 574, sections 18, 19, 20, 22, 23, 24, 25, 26, 33; Laws 3.37 1985, chapters 259, sections 5, 6; 261, sections 14, 3.38 15, 16, 18, 20, 32, 33, 34, 35, 36; Laws 1985, First 3.39 Special Session chapter 16, article 2, section 6; Laws 3.40 1986, chapters 359, sections 22, 23, 24, 25; 458, 3.41 sections 23, 34; Laws 1987, chapter 372, article 2, 3.42 sections 7, 8, 9, 10, 12; Laws 1988, chapter 709, 3.43 articles 8, section 5; 9, section 5; Laws 1989, 3.44 chapter 319, article 11, sections 2, 3, 4, 12; Laws 3.45 1990, chapter 589, article 1, section 7; Laws 1991, 3.46 chapters 96; 269, article 2, sections 12, 13; Laws 3.47 1992, chapters 392, section 1; 393, section 1; 422; 3.48 431, section 1; 448; 455; 563, sections 3, 4, 5; 586, 3.49 section 1; Laws 1993, chapters 72; 110; 112, section 3.50 2; 126; 202, article 1; Laws 1994, chapters 409; 410; 3.51 474; 490; 541, section 3; Laws 1995, chapter 262, 3.52 article 10, section 4; Laws 1996, chapter 448, article 3.53 2, section 1; Laws 1997, chapter 233, article 1, 3.54 section 58; Laws 1997, chapter 241, article 2, 3.55 sections 2, 3, 4, 5, 6, 9, 10, 11, 13, 14, 15, 20; 3.56 Laws 1999, chapter 222, article 3, section 6; Laws 3.57 2000, chapter 461, article 10, section 2. 3.58 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 3.59 ARTICLE 1 3.60 LOCAL POLICE AND PAID 3.61 FIRE RELIEF ASSOCIATION 3.62 GOVERNING LAW CLARIFICATION 3.63 Section 1. Minnesota Statutes 2000, section 69.77, is 3.64 amended to read: 4.1 69.77 [POLICE AND FIREFIGHTERS' RELIEF ASSOCIATION 4.2 GUIDELINES ACT.] 4.3 Subdivision 1. [AUTHORIZEDCONDITIONED EMPLOYER SUPPORT 4.4 FOR A RELIEF ASSOCIATION.] (a) Notwithstanding any law to the 4.5 contrary, only if the municipality and the relief association 4.6 comply with the provisions of this section, a municipality may 4.7 contribute public funds, including any applicable police or fire 4.8 state aid, or levy property taxes for the support of a police or 4.9 firefighters' relief association, enumerated in subdivision 1a, 4.10 however organized, which provides retirement coverage or pays a 4.11 service pension to a retired police officer or firefighter or a 4.12 retirement benefit to a surviving dependent of either an active 4.13 or retired police officer or firefighter, for the operation and 4.14 maintenance of the relief associationonly if the municipality4.15and the relief association comply with the provisions of this4.16section. 4.17 (b) The commissioner shall not include in the apportionment 4.18 of police or fire state aid to the county auditorpursuant to4.19 under section 69.021, subdivision 6, any municipality in which 4.20 there exists a local police or salaried firefighters' relief 4.21 association as enumerated in subdivision 1a which does not 4.22 comply with the provisions of this section or the provisions of 4.23 any applicable special law relating to the funding or financing 4.24 of the association and that municipalityshallmay not qualify 4.25 initially to receive, or be entitled subsequently to retain, 4.26 state aidpursuant tounder sections 69.011 to 69.051 until the 4.27 reason for the disqualification is remedied, whereupon the 4.28 municipality, if otherwise qualified,shall beis entitled to 4.29 again receive state aid for the year occurring immediately 4.30 subsequent to the year in which the disqualification is remedied. 4.31 (c) The state auditor and the commissioner shall determine 4.32 if a municipality with a local police or salaried firefighters' 4.33 relief association fails to comply with the provisions of this 4.34 section or the funding or financing provisions of any applicable 4.35 special law. 4.36 Subd. 1a. [COVERED RETIREMENT PLANS.] The provisions of 5.1 this sectionshallapply to the following local retirementfunds5.2 plans: 5.3 (1)any police pension fund or relief association which is5.4established pursuant to chapter 423the Bloomington firefighters 5.5 relief association; 5.6 (2)any salaried firefighters' pension fund or relief5.7association which is established pursuant to chapter 424the 5.8 Fairmont police relief association; 5.9 (3)any pension fund or relief association which is5.10established pursuant to this chapter which has five or more5.11members who receive compensation for services rendered in the5.12employment covered by the pension fund or relief association and5.13which provides for retirement coverage or a service pension5.14based on the compensation paid to members for that servicethe 5.15 Minneapolis firefighters relief association; 5.16 (4)any pension fund or relief association which is5.17established and operates in whole or in part pursuant to special5.18legislation and which provides for retirement coverage or a5.19service pension based on the compensation paid to members for5.20service as police officers or firefighters or which provides for5.21retirement coverage or a service pension to volunteer5.22firefighters based on the compensation paid to or the service5.23pension provided by a pension fund or relief association located5.24in the same municipality for police officers employed by the5.25municipality but not covered by clause (1), (2) or (3)the 5.26 Minneapolis police relief association; and 5.27 (5)any governmental subdivision retirement fund5.28established pursuant to any law providing for retirement5.29coverage to police officers or salaried firefighters or a5.30retirement benefit to their dependents and not otherwise5.31described in this subdivisionthe Virginia fire department 5.32 relief association. 5.33 Subd. 2. [INAPPLICABLE PENALTY.] The penalty provided for 5.34 in subdivision 1shalldoes not apply to a relief association 5.35 enumerated in subdivision 1a if the requirements of subdivisions 5.362a3 to2h10 are met. 6.1 Subd.2a3. [MINIMUM MEMBER CONTRIBUTION.] Each active 6.2 member of the relief associationshallmust pay into the special 6.3 fund of the association during a year of covered service, a 6.4 contribution for retirement coverage, including survivorship 6.5 benefits, of not less than eight percent of the maximum rate of 6.6 salary upon which retirement coverage is credited and service 6.7 pension and retirement benefit amounts are determined. The 6.8 member contributionsshallmust be made by payroll deduction 6.9 from the salary of the member by the municipality, and 6.10shallmust be transmitted by the municipality to the relief 6.11 association as soon as practical. The relief association shall 6.12 deposit the member contribution to the credit of the special 6.13 fund of the relief association. The member contribution 6.14 requirement specified in this subdivisionshalldoes not apply 6.15 to any members who are volunteer firefighters. 6.16 Subd.2b4. [RELIEF ASSOCIATION FINANCIAL REQUIREMENTS; 6.17 MINIMUM MUNICIPAL OBLIGATION.] (a) The officers of the relief 6.18 association shall determine the financial requirements of the 6.19 relief association and minimum obligation of the municipality 6.20 for the following calendar year in accordance with the 6.21 requirements of this subdivision. The financial requirements of 6.22 the relief association and the minimum obligation of the 6.23 municipalityshallmust be determined on or before the 6.24 submission date established by the municipalitypursuant to6.25 under subdivision2c5. 6.26 (b) The financial requirements of the relief association 6.27 for the following calendar yearshallmust be based on the most 6.28 recent actuarial valuation or survey of the special fund of the 6.29 association if more than one fund is maintained by the 6.30 association, or of the association, if only one fund is 6.31 maintained, prepared in accordance with sections 356.215, 6.32 subdivisions 4 to 4k and 356.216, as requiredpursuant tounder 6.33 subdivision2h10. If an actuarial estimate is prepared by the 6.34 actuary of the relief association as part of obtaining a 6.35 modification of the benefit plan of the relief association and 6.36 the modification is implemented, the actuarial estimateshall7.1 must be used in calculating the subsequent financial 7.2 requirements of the relief association. 7.3 (c) If the relief association has an unfunded actuarial 7.4 accrued liability as reported in the most recent actuarial 7.5 valuation or survey, the total of the amounts 7.6 calculatedpursuant tounder clauses(a), (b), and (c)7.7shall(1), (2), and (3) constitute the financial requirements of 7.8 the relief association for the following year. If the relief 7.9 association does not have an unfunded actuarial accrued 7.10 liability as reported in the most recent actuarial valuation or 7.11 survey, the amount calculatedpursuant tounder clauses(a) and7.12(b) shall(1) and (2) constitute the financial requirements of 7.13 the relief association for the following year. The financial 7.14 requirement elements are: 7.15(a)(1) the normal level cost requirement for the following 7.16 year, expressed as a dollar amount, whichshallmust be 7.17 determined by applying the normal level cost of the relief 7.18 association as reported in the actuarial valuation or survey and 7.19 expressed as a percentage of covered payroll to the estimated 7.20 covered payroll of the active membership of the relief 7.21 association, including any projectedincreasechange in the 7.22 active membership, for the following year.; 7.23(b)(2) for the Bloomington fire department relief 7.24 association, the Fairmont police relief association, and the 7.25 Virginia fire department relief association, to the dollar 7.26 amount of normal costthusdeterminedshallunder clause (1) 7.27 must be added an amount equal to the dollar amount of the 7.28 administrative expenses of the special fund of the association 7.29 if more than one fund is maintained by the association, or of 7.30 the association if only one fund is maintained, for the most 7.31 recent year, multiplied by the factor of 1.035.For a relief7.32association in a municipality,The administrative expenses are 7.33 those authorized under section 69.80. No amount of 7.34 administrative expenses under this clauseshallare to be 7.35 included in the financial requirements ofathe Minneapolis 7.36 firefighters relief associationin a city of the first class8.1with a population of more than 300,000.or the Minneapolis 8.2 police relief association; and 8.3(c)(3) to the dollar amount of normal cost and expenses 8.4 determined under clauses(a) and (b) shall(1) and (2) must be 8.5 added an amount equal to the level annual dollar amount which is 8.6 sufficient to amortize the unfunded actuarial accrued liability 8.7 by December 31, 2010, as determined from the actuarial valuation 8.8 or survey of the fund, using an interest assumption set at the 8.9 applicable rate specified in section 356.215, subdivision 4d. 8.10 The amortization date specified in this clauseshall apply8.11 applies to all local police or salaried firefighters' relief 8.12 associations andshall supersedethat date supersedes any 8.13 amortization date specified in any applicable special law. 8.14 (d) The minimum obligation of the municipalityshall beis 8.15 an amount equal to the financial requirements of the relief 8.16 association reduced by the estimated amount of member 8.17 contributions from covered salary anticipated for the following 8.18 calendar year and the estimated amounts anticipated for the 8.19 following calendar year from the applicable state aid program 8.20 establishedpursuant tounder sections 69.011 to 69.051 8.21 receivable by the relief association after any allocation 8.22 madepursuant tounder section 69.031, subdivision 5,clause8.23(2), subclause (c)paragraph (b), clause (2), or 423A.01, 8.24 subdivision 2, clause (6), from the local police and salaried 8.25 firefighters' relief association amortization aid program 8.26 establishedpursuant tounder section 423A.02and, subdivision 8.27 1, from the supplementary amortization state-aid program 8.28 established underLaws 1984, chapter 564, section 48, and Laws8.291985, chapter 261, section 17section 423A.02, subdivision 1a, 8.30 and from the additional amortization state aid under section 8.31 423A.02, subdivision 1b. 8.32 Subd.2c5. [DETERMINATION SUBMISSION.] The officers of 8.33 the relief association shall submit the determination of the 8.34 financial requirements of the relief association and of the 8.35 minimum obligation of the municipality to the governing body on 8.36 or before the date established by the municipality, whichshall9.1 may not be earlier than August 1 andshallmay not be later than 9.2 September 1 of each year. The governing body of the 9.3 municipalityshallmust ascertain whether or not the 9.4 determinations were prepared in accordance with law. 9.5 Subd.2d6. [MUNICIPAL PAYMENT.] (a) The municipality 9.6 shall provide for and shall pay, each year, at least the amount 9.7 of the minimum obligation of the municipality to the relief 9.8 association. 9.9 (b) If there is any deficiency in the municipal payment to 9.10 meet the minimum obligation of the municipality as of the end of 9.11 any calendar year, the amount of the deficiencyshallmust be 9.12 added to the minimum obligation of the municipality for the 9.13 following year calculatedpursuant tounder subdivision2b4 and 9.14shallmust include interest at the compound rate of six percent 9.15 per annumcompoundedfrom the date that the municipality was 9.16 required to make paymentpursuant tounder this subdivision 9.17 until the date that the municipality actually makes the required 9.18 payment. 9.19 Subd.2e7. [BUDGET INCLUSION.] (a) The municipality shall 9.20 provide in the annual municipal budget for at least the minimum 9.21 obligation of the municipality calculatedpursuant tounder 9.22 subdivision2b4. 9.23 (b) The municipality may levy taxes for the payment of the 9.24 minimum obligation of the municipality without any limitation as 9.25 to rate or amount and irrespective of limitations imposed by 9.26 other provisions of law upon the rate or amount of taxation when 9.27 the balance of the special fund or any fund of the relief 9.28 association has attained a specified minimum asset level. In 9.29 addition, any taxes leviedpursuant tounder this sectionshall9.30 may not cause the amount or rate of other taxes levied in that 9.31 year or to be levied in a subsequent year by the municipality 9.32 which are subject to a limitation as to rate or amount to be 9.33 reduced. 9.34 (c) If the municipality does not include the full amount of 9.35 the minimum obligation of the municipality in the levy that the 9.36 municipality certified to the county auditor in any year, the 10.1 officers of the relief association shall certify the amount of 10.2 any deficiency to the county auditor. Upon verifying the 10.3 existence of any deficiency in the levy certified by the 10.4 municipality, the county auditor shall spread a levy over the 10.5 taxable property of the municipality in the amount of the 10.6 deficiency certified to by the officers of the relief 10.7 association. 10.8 Subd.2f8. [ACCELERATED AMORTIZATION.] Any sums of money 10.9 paid by the municipality to the relief association in excess of 10.10 the minimum obligation of the municipality in any yearshall10.11 must be used to amortize any unfunded actuarial accrued 10.12 liabilities of the relief association. 10.13 Subd.2g9. [LOCAL POLICE AND PAID FIRE RELIEF ASSOCIATION 10.14 INVESTMENT AUTHORITY.] (a) The funds of the association must be 10.15 invested in securities that are authorized investments under 10.16 section 356A.06, subdivision 6 or 7, whichever 10.17 applies.Notwithstanding the foregoing,Up to 75 percent of the 10.18 market value of the assets of the fund may be invested in 10.19 open-end investment companies registered under the federal 10.20 Investment Company Act of 1940, if the portfolio investments of 10.21 the investment companies comply with the type of securities 10.22 authorized for investment under section 356A.06, subdivision 7. 10.23 Securities held by the association before June 2, 1989, that do 10.24 not meet the requirements of this subdivision may be retained 10.25 after that date if they were proper investments for the 10.26 association on that date. 10.27 (b) The governing board of the association may select and 10.28 appoint investment agencies to act for and in its behalf or may 10.29 certify special fund assets for investment by the state board of 10.30 investment under section 11A.17. The governing board of the 10.31 association may certify general fund assets of the relief 10.32 association for investment by the state board of investment in 10.33 fixed income pools or in a separately managed account at the 10.34 discretion of the state board of investment as provided in 10.35 section 11A.14. The governing board of the association may 10.36 select and appoint a qualified private firm to measure 11.1 management performance and return on investment, and the firm 11.2 shall use the formula or formulas developed by the state board 11.3 under section 11A.04, clause (11). 11.4 Subd.2h10. [ACTUARIAL VALUATION REQUIRED.] The 11.5 association shall obtain an actuarial valuation showing the 11.6 condition of the special fund of the relief associationpursuant11.7tounder sections 356.215 and 356.216 and any applicable 11.8 standards for actuarial work established by the legislative 11.9 commission on pensions and retirement. The actuarial valuation 11.10 must be made as of December 31 of every year. A copy of the 11.11 actuarial valuationshallmust be filed with the director of the 11.12 legislative reference library, the governing body of the 11.13 municipality in which the association is organized, the 11.14 executive director of the legislative commission on pensions and 11.15 retirement, and the state auditor, not later than July 1 of the 11.16 following year. 11.17 Subd.2i11. [MUNICIPAL APPROVAL OF BENEFIT CHANGES 11.18 REQUIRED.] Any amendment to the bylaws or articles of 11.19 incorporation of a relief association which increases or 11.20 otherwise affects the retirement coverage provided by or the 11.21 service pensions or retirement benefits payable from any police 11.22 or firefighters' relief association enumerated in subdivision 1a 11.23shallis notbeeffective until it is ratified by the 11.24 municipality in which the relief association is located. The 11.25 officers of the relief association shall not seek municipal 11.26 ratificationprior tobefore obtaining either an updated 11.27 actuarial valuation including the proposed amendment or an 11.28 estimate of the expected actuarial impact of the proposed 11.29 amendment prepared by the actuary of the relief association and 11.30 submitting that actuarial valuation or estimate to the clerk of 11.31 the municipality. 11.32 Subd.312. [CITATION.] This section may be cited as the 11.33 "Police and Firefighters' Relief Associations Guidelines Act of 11.34 1969." 11.35 Sec. 2. Minnesota Statutes 2000, section 69.80, is amended 11.36 to read: 12.1 69.80 [AUTHORIZED ADMINISTRATIVE EXPENSES.] 12.2 (a) Notwithstanding any provision of law to the contrary, 12.3 the payment of the following necessary, reasonable and direct 12.4 expenses of maintaining, protecting and administering the 12.5 special fund, when provided for in the bylaws of the association 12.6 and approved by the board of trustees,shall constitute12.7 constitutes authorized administrative expenses of a police, 12.8 salaried firefighters', or volunteer firefighters' relief 12.9 association organized under any law of this state: 12.10(a)(1) office expense, including, but not limited to, 12.11 rent, utilities, equipment, supplies, postage, periodical 12.12 subscriptions, furniture, fixtures, and salaries of 12.13 administrative personnel; 12.14(b)(2) salaries of the president, secretary, and treasurer 12.15 of the association, or their designees, and any other official 12.16 of the relief association to whom a salary is payable under 12.17 bylaws or articles of incorporation in effect on January 1, 12.18 1986, and their itemized expenses incurred as a result of 12.19 fulfilling their responsibilities as administrators of the 12.20 special fund; 12.21(c)(3) tuition, registration fees, organizational dues, 12.22 and other authorized expenses of the officers or members of the 12.23 board of trustees incurred in attending educational conferences, 12.24 seminars, or classes relating to the administration of the 12.25 relief association; 12.26(d)(4) audit, actuarial, medical, legal, and investment 12.27 and performance evaluation expenses; 12.28(e)(5) reimbursement to the officers and members of the 12.29 board of trustees, or their designees, for reasonable and 12.30 necessary expenses actually paid and incurred in the performance 12.31 of their duties as officers or members of the board; and 12.32(f)(6) premiums on fiduciary liability insurance and 12.33 official bonds for the officers, members of the board of 12.34 trustees, and employees of the relief association. 12.35 (b) Any other expenses of the relief associationshallmust 12.36 be paid from the general fund of the association, if one 13.1 exists. If a relief association has only one fund, that 13.2 fundshall be deemed to beis the special fund for purposes of 13.3 this section. If a relief association has a special fund and a 13.4 general fund, and any expense of the relief association that is 13.5 directly related to the purposes for which both funds were 13.6 established, the payment of that expenseshallmust be 13.7 apportioned between the two funds on the basis of the benefits 13.8 derived by each fund. 13.9 Sec. 3. Minnesota Statutes 2000, section 353A.08, 13.10 subdivision 6a, is amended to read: 13.11 Subd. 6a. [MILITARY SERVICE CONTRIBUTION AND REFUND.] A 13.12 person who was an active member of a local police or 13.13 firefighters relief association upon its consolidation with the 13.14 public employees retirement association, and who was otherwise 13.15 eligible for automatic service credit for military service under 13.16sectionsMinnesota Statutes 2000, section 423.57and 424.23, and 13.17 who has not elected the type of benefit coverage provided by the 13.18 public employees police and fire fund at the time of 13.19 consolidation, must make employee contributions under section 13.20 353.01, subdivision 16, paragraph (h), to receive allowable 13.21 service credit from the association for a military service leave 13.22 after the effective date of the consolidation. A person who 13.23 later elects, under subdivision 3, to retain benefit coverage 13.24 under the bylaws of the local relief association is eligible for 13.25 a refund from the association at the time of retirement. The 13.26 association shall refund the employee contributions plus 13.27 interest at the rate of six percent, compounded quarterly, from 13.28 the date on which contributions were made until the first day of 13.29 the month in which the refund is paid. The employer shall 13.30 receive a refund of the employer contributions. The association 13.31 shall not pay a refund to a person who later elects, under 13.32 subdivision 3, the type of benefit coverage provided by the 13.33 public employees police and fire fund or to the person's 13.34 employer. 13.35 Sec. 4. Minnesota Statutes 2000, section 423A.17, is 13.36 amended to read: 14.1 423A.17 [CONTINUATION OF SURVIVING SPOUSE BENEFITS UPON 14.2 REMARRIAGE.] 14.3 (a) Notwithstanding a provision ofsection 69.48; 423.387,14.4subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1; or14.5424.24, subdivision 1, or otherlaw, article of incorporation, 14.6 or bylaw governing a local police or salaried firefighters 14.7 relief association to the contrary, the governing body of a 14.8 municipality may mandate the applicable local police or salaried 14.9 firefighters relief association to provide that a surviving 14.10 spouse benefit is payable for the life of the surviving spouse 14.11 and remains payable even in the event of the remarriage of the 14.12 surviving spouse. 14.13 (b) If the surviving spouse benefit change described in 14.14 paragraph (a) is made, the change applies to a surviving spouse 14.15 benefit payable on the effective date of the change and to the 14.16 potential surviving spouses of all active, deferred, or retired 14.17 members of the relief association who have that status on the 14.18 effective date of the change. 14.19 (c) In addition, if the surviving spouse benefit change 14.20 described in paragraph (a) is made a person who formerly was 14.21 receiving surviving spouse benefits from the relief association 14.22 and who had those benefits discontinued by virtue of the 14.23 remarriage is entitled, upon application, to a resumption of the 14.24 surviving spouse benefit, beginning with the last day of the 14.25 month following receipt of the application by the secretary of 14.26 the relief association. Nothing in this section authorizes the 14.27 payment of a benefit amount to an estate. 14.28 (d) The change must be made by a municipal resolution 14.29 adopted by a majority vote of the municipality. The resolution 14.30 must be filed by the secretary of the relief association with 14.31 the executive director of the legislative commission on pensions 14.32 and retirement, the state auditor, and the secretary of state. 14.33 Sec. 5. Minnesota Statutes 2000, section 423A.171, is 14.34 amended to read: 14.35 423A.171 [BYLAW AMENDMENTS.] 14.36 (a) Notwithstanding a provision ofsection 69.48; 423.387,15.1subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1;15.2423B.10; or 424.24, subdivision 1, or otherlaw governing a 15.3 local police or salaried firefighters' relief association to the 15.4 contrary, the board of trustees of a local relief association 15.5 governed by section 69.77 or its successor board under chapter 15.6 353A or 353B, with municipal approval as provided in section 15.7 69.77, subdivision2i11, may amend the bylaws of the relief 15.8 association to provide that a surviving spouse benefit is 15.9 payable to a surviving spouse who married a deferred or retired 15.10 member after the member's retirement, provided the marriage 15.11 occurred at least five years before the death of the member. 15.12 (b) If the surviving spouse benefit change described in 15.13 paragraph (a) is made, the change applies to a surviving spouse 15.14 benefit payable on the effective date of the change and to the 15.15 potential surviving spouses of all deferred or retired members 15.16 of the relief association who have that status on the effective 15.17 date of the change. 15.18 (c) The bylaw amendment is not effective until a certified 15.19 copy of the amendment and the municipal approval has been filed 15.20 by the municipal clerk with the executive director of the 15.21 legislative commission on pensions and retirement, the state 15.22 auditor, and the secretary of state. 15.23 (d) Notwithstanding the provisions of section 353B.11, a 15.24 surviving spouse benefit change made under this section for a 15.25 relief association that has consolidated with the public 15.26 employees retirement association is effective upon approval by 15.27 the public employees retirement association and the municipality 15.28pursuant tounder paragraph (c). 15.29 Sec. 6. Minnesota Statutes 2000, section 424A.09, is 15.30 amended to read: 15.31 424A.09 [APPLICATION TO CERTAIN RELIEF ASSOCIATIONS.] 15.32 This chaptershall supersedesupersedes any special law 15.33 applicable to any municipal volunteer firefighters' relief 15.34 association or independent nonprofit firefighting corporation 15.35 specifically authorizing the relief association or nonprofit 15.36 firefighting corporation to exceed the service pension 16.1 limitations contained in Minnesota Statutes 1978, sections 69.06 16.2 and 69.691. Any relief association which amended its bylaws to 16.3 provide for a full pro rata service pension amount at the 16.4 specified retirement age with 15 years service credit or 75 16.5 percent of the pro rata service pension amount at the specified 16.6 retirement age with ten years of servicepursuant tounder 16.7 Minnesota Statutes 1978, section 69.06, may continue to provide 16.8 the specified service pension amounts at the applicable years of 16.9 credited service to any member who has credit for at least ten 16.10 or 15 years, whichever is the applicable minimum service period 16.11 specified in the bylaws governing the relief association, on or 16.12 before December 31, 1979notwithstanding section 424A.02. 16.13 Sec. 7. [APPLICATION; BLOOMINGTON FIREFIGHTERS RELIEF 16.14 ASSOCIATION.] 16.15 To the extent that Minnesota Statutes 2000, chapter 424, 16.16 applied to the Bloomington firefighters relief association on 16.17 the day before the effective date of section 5, Minnesota 16.18 Statutes 2000, chapter 424, continues to apply to the 16.19 Bloomington firefighters relief association after that date. 16.20 Sec. 8. [REVISOR INSTRUCTIONS.] 16.21 (a) In the next and subsequent editions of Minnesota 16.22 Statutes, the revisor of statutes shall not print Minnesota 16.23 Statutes, sections 423.41 to 423.62, but shall denote those 16.24 sections as "[LOCAL, CITY OF FAIRMONT, POLICE PENSIONS.]." 16.25 (b) In the next and subsequent editions of Minnesota 16.26 Statutes, the revisor of statutes shall, in each section 16.27 indicated in column A, replace the cross-reference specified in 16.28 column B with the cross-reference set forth in column C: 16.29 Column A Column B Column C 16.30 69.021, subd. 10 69.77, subd. 2a 69.77, subd. 3 16.31 69.021, subd. 10 69.77, subd. 2b 69.77, subd. 4 16.32 69.021, subd. 10 69.77, subd. 2c 69.77, subd. 5 16.33 299A.465, subd. 5 424.03 Minnesota Statutes, 16.34 2000, 424.03 16.35 353A.07, subd. 6 69.77, subd. 2a 69.77, subd. 3 16.36 353A.09, subd. 4 69.77, subd. 2a 69.77, subd. 3 17.1 356.216 69.77, subd. 2b 69.77, subd. 4 17.2 356.219, subd. 2 69.77, subd. 2g 69.77, subd. 9 17.3 423.01, subd. 2 69.77, subd. 2b 69.77, subd. 4 17.4 423A.18 69.77, subd. 2i 69.77, subd. 11 17.5 423A.19, subd. 4 69.77, subd. 2i 69.77, subd. 11 17.6 423B.06, subd. 1 69.77, subd. 2a 69.77, subd. 3 17.7 423B.06, subd. 1 69.77, subd. 2b 69.77, subd. 4 17.8 423B.06, subd. 1 69.77, subd. 2c 69.77, subd. 5 17.9 423B.06, subd. 1 69.77, subd. 2d 69.77, subd. 6 17.10 423B.06, subd. 1 69.77, subd. 2e 69.77, subd. 7 17.11 423B.06, subd. 1 69.77, subd. 2f 69.77, subd. 8 17.12 423B.21, subd. 1 69.77, subd. 2b 69.77, subd. 4 17.13 Sec. 9. [REPEALER; OBSOLETE POLICE AND FIRE PENSION LAWS.] 17.14 Subdivision 1. [FIRST CLASS CITY FIRE; 17.15 REPEALER.] Minnesota Statutes 2000, sections 69.25; 69.26; 17.16 69.27; 69.28; 69.29; 69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 17.17 69.40; 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 69.48; 17.18 69.49; 69.50; 69.51; 69.52; 69.53; and 69.62, are repealed. 17.19 Subd. 2. [THIRD CLASS CITY POLICE; REPEALER.] Minnesota 17.20 Statutes 2000, sections 423.37; 423.371; 423.372; 423.373; 17.21 423.374; 423.375; 423.377; 423.378; 423.379; 423.38; 423.381; 17.22 423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 423.388; 17.23 423.389; 423.39; 423.391; and 423.392, are repealed. 17.24 Subd. 3. [SECOND CLASS CITY POLICE; REPEALER.] Minnesota 17.25 Statutes 2000, sections 423.801; 423.802; 423.803; 423.804; 17.26 423.805; 423.806; 423.808; 423.809; 423.810; 423.812; 423.813; 17.27 423.814; and 423.90, are repealed. 17.28 Subd. 4. [SECOND CLASS CITY FIRE; REPEALER.] Minnesota 17.29 Statutes 2000, sections 424.01; 424.02; 424.03; 424.04; 424.05; 17.30 424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 424.17; 424.18; 17.31 424.19; 424.20; 424.21; 424.22; 424.23; 424.24; 424.25; 424.27; 17.32 424.28; and 424.29, are repealed. 17.33 Subd. 5. [ALBERT LEA FIRE; REPEALER.] Laws 1943, chapters 17.34 170 and 397; Laws 1947, chapter 274; Laws 1949, chapters 87 and 17.35 281; Laws 1951, chapters 233, 420, and 435; Laws 1953, chapters 17.36 44 and 406; Laws 1957, chapter 127; Laws 1959, chapter 207; Laws 18.1 1963, chapter 643; Laws 1984, chapter 574, section 23; Laws 18.2 1985, chapter 261, section 36; and Laws 1993, chapter 72, are 18.3 repealed. 18.4 Subd. 6. [ALBERT LEA POLICE; REPEALER.] Laws 1965, chapter 18.5 174; Laws 1976, chapter 247; and Laws 1985, chapter 261, section 18.6 36, are repealed. 18.7 Subd. 7. [ANOKA POLICE; REPEALER.] Laws 1965, chapter 174; 18.8 Laws 1973, chapter 587; Laws 1978, chapter 563, section 28; and 18.9 Laws 1981, chapter 224, sections 263 and 264, are repealed. 18.10 Subd. 8. [AUSTIN FIRE; REPEALER.] Laws 1943, chapter 170; 18.11 Laws 1949, chapter 87; Laws 1951, chapters 45 and 435; Laws 18.12 1957, chapter 164; Laws 1963, chapter 36; Laws 1965, chapter 18.13 418; Laws 1976, chapter 36; Laws 1978, chapter 579; Laws 1980, 18.14 chapter 341, sections 9 and 10; Laws 1981, chapter 224, sections 18.15 268 and 270; Laws 1992, chapter 455; and Laws 1994, chapter 490, 18.16 are repealed. 18.17 Subd. 9. [AUSTIN POLICE; REPEALER.] Laws 1943, chapter 18.18 432; Laws 1976, chapter 36; Laws 1980, chapter 341, sections 9 18.19 and 10; and Laws 1981, chapter 224, sections 268 and 270, are 18.20 repealed. 18.21 Subd. 10. [BLOOMINGTON POLICE; REPEALER.] Laws 1965, 18.22 chapter 498; Laws 1975, chapter 121; Laws 1978, chapter 563, 18.23 section 17; Laws 1980, chapter 341, section 6; Laws 1981, 18.24 chapter 224, section 240; and Laws 1993, chapter 202, article 1, 18.25 are repealed. 18.26 Subd. 11. [BRAINERD POLICE; REPEALER.] Laws 1959, chapter 18.27 437, is repealed. 18.28 Subd. 12. [BROOKLYN CENTER POLICE; REPEALER.] Laws 1967, 18.29 chapter 736; and Laws 1978, chapter 563, section 18, are 18.30 repealed. 18.31 Subd. 13. [BUHL POLICE; REPEALER.] Laws 1957, chapter 630; 18.32 Laws 1975, chapter 425; Laws 1976, chapter 247; Laws 1981, 18.33 chapter 68, section 43; Laws 1982, chapter 578, article II, 18.34 section 1, subdivision 8; Laws 1984, chapter 574, sections 18 18.35 and 20; Laws 1985, chapter 261, section 18; and Laws 1986, 18.36 chapter 458, section 23, are repealed. 19.1 Subd. 14. [CHISHOLM FIRE; REPEALER.] Laws 1935, chapter 19.2 208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 19.3 Laws 1947, chapter 329; Laws 1951, chapter 144; Laws 1953, 19.4 chapter 391; Laws 1955, chapters 293 and 827; Laws 1961, chapter 19.5 631; Laws 1971, chapter 809; Laws 1973, chapter 433; Laws 1976, 19.6 chapter 78; Laws 1978, chapter 648; Laws 1979, chapter 131, 19.7 section 3; Laws 1981, chapter 68, sections 36 and 37; and Laws 19.8 1991, chapter 269, article 2, section 12, are repealed. 19.9 Subd. 15. [CHISHOLM POLICE; REPEALER.] Laws 1945, chapter 19.10 74; Laws 1949, chapter 164; Laws 1953, chapter 235; Laws 1959, 19.11 chapter 211; Laws 1961, chapter 290; Laws 1971, chapter 810; 19.12 Laws 1973, chapter 433; Laws 1976, chapter 78; Laws 1978, 19.13 chapters 563, section 27, and 648; Laws 1979, chapter 131, 19.14 section 3; Laws 1981, chapters 68, sections 31, 32, and 33; and 19.15 224, section 261; and Laws 1991, chapter 269, article 2, section 19.16 12, are repealed. 19.17 Subd. 16. [CLOQUET FIRE; REPEALER.] Laws 1941, chapter 19.18 196; Laws 1953, chapter 253; Laws 1955, chapter 42; Laws 1961, 19.19 chapter 295; Laws 1965, chapter 594; Laws 1967, chapter 783; and 19.20 Laws 1969, chapter 716, are repealed. 19.21 Subd. 17. [COLUMBIA HEIGHTS FIRE; REPEALER.] Laws 1965, 19.22 chapter 605; Laws 1975, chapter 424; Laws 1977, chapter 374, 19.23 sections 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 19.24 52, 53, 54, 55, 56, 57, 58, 59, and 60; Laws 1978, chapter 563, 19.25 sections 29 and 30; and Laws 1981, chapter 224, section 267, are 19.26 repealed. 19.27 Subd. 18. [COLUMBIA HEIGHTS POLICE; REPEALER.] Laws 1977, 19.28 chapter 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 19.29 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 19.30 30, 31, 32, 33, 34, 35, 36, and 37; and Laws 1993, chapter 126, 19.31 are repealed. 19.32 Subd. 19. [CROOKSTON FIRE; REPEALER.] Laws 1949, chapter 19.33 378; Laws 1957, chapter 144; Laws 1963, chapter 636; Laws 1971, 19.34 chapter 51; Laws 1978, chapter 563, sections 24, 25, and 26; 19.35 Laws 1981, chapter 224, sections 252 and 253; and Laws 1983, 19.36 chapter 291, sections 9, 10, 11, 12, 13, 14, 15, 16, and 17, are 20.1 repealed. 20.2 Subd. 20. [CROOKSTON POLICE; REPEALER.] Laws 1976, chapter 20.3 85; Laws 1977, chapter 275; Laws 1983, chapter 84, section 1; 20.4 and Laws 1984, chapter 574, section 26, are repealed. 20.5 Subd. 21. [CRYSTAL POLICE; REPEALER.] Laws 1963, chapter 20.6 619; Laws 1969, chapter 1087; and Laws 1980, chapter 607, 20.7 article XV, section 23, are repealed. 20.8 Subd. 22. [DULUTH FIRE; REPEALER.] Laws 1917, chapter 196; 20.9 Laws 1919, chapter 515; Laws 1955, chapter 188; Laws 1961, 20.10 chapter 186; Laws 1963, chapter 208; Laws 1965, chapter 179; 20.11 Laws 1967, chapter 732; Laws 1975, chapter 127; Laws 1976, 20.12 chapter 78, section 4; Laws 1977, chapter 164, section 3; Laws 20.13 1992, chapter 448, section 1; and Laws 1994, chapter 474, are 20.14 repealed. 20.15 Subd. 23. [DULUTH POLICE; REPEALER.] Laws 1915, chapter 20.16 68; Laws 1921, chapter 118; Laws 1923, chapter 54; Laws 1925, 20.17 chapter 197; Laws 1943, chapter 267; Laws 1949, chapter 153; 20.18 Laws 1953, chapter 91; Laws 1955, chapter 187; Laws 1959, 20.19 chapter 191; Laws 1975, chapter 408; Laws 1976, chapter 99; Laws 20.20 1980, chapter 600, section 11; and Laws 1992, chapter 448, are 20.21 repealed. 20.22 Subd. 24. [EVELETH FIRE; REPEALER.] Laws 1935, chapter 20.23 208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 20.24 Laws 1941, chapters 74 and 182; Laws 1947, chapter 329; Laws 20.25 1951, chapter 144; Laws 1953, chapter 391; Laws 1955, chapter 20.26 293; Laws 1961, chapter 620; Laws 1963, chapter 670; and Laws 20.27 1969, chapter 552, are repealed. 20.28 Subd. 25. [EVELETH POLICE; REPEALER.] Laws 1965, chapter 20.29 636; and Laws 1969, chapter 670, are repealed. 20.30 Subd. 26. [FARIBAULT FIRE; REPEALER.] Laws 1947, chapter 20.31 43; Laws 1949, chapter 154; Laws 1951, chapter 43; Laws 1957, 20.32 chapter 36; Laws 1961, chapter 443; Laws 1967, chapter 807; Laws 20.33 1969, chapter 614; Laws 1975, chapter 389; Laws 1984, chapter 20.34 574, section 22; Laws 1985, chapter 259, sections 5 and 6; Laws 20.35 1985, First Special Session chapter 16, article 2, section 6; 20.36 and Laws 1993, chapter 112, section 2, are repealed. 21.1 Subd. 27. [FARIBAULT POLICE; REPEALER.] Laws 1985, chapter 21.2 259, sections 5 and 6; Laws 1985, First Special Session chapter 21.3 16, article 2, section 6, are repealed. 21.4 Subd. 28. [FRIDLEY FIRE; REPEALER.] Laws 1969, chapter 21.5 594, is repealed. 21.6 Subd. 29. [FRIDLEY POLICE; REPEALER.] Laws 1977, chapter 21.7 83, is repealed. 21.8 Subd. 30. [HIBBING FIRE; REPEALER.] Laws 1935, chapter 21.9 192; Laws 1943, chapter 413; Laws 1945, chapter 182; Laws 1947, 21.10 chapter 101; Laws 1951, chapter 48; Laws 1955, chapter 294; Laws 21.11 1959, chapter 208; Laws 1967, chapter 816; Laws 1969, chapter 21.12 686; Laws 1971, chapter 614; Laws 1975, chapter 254, sections 5 21.13 and 6; Laws 1977, chapter 169; Laws 1981, chapter 224, section 21.14 260; Laws 1982, chapter 443; Laws 1987, chapter 372, article 2, 21.15 sections 7, 8, and 9; and Laws 1991, chapter 269, article 2, 21.16 sections 12 and 13, are repealed. 21.17 Subd. 31. [HIBBING POLICE; REPEALER.] Laws 1931, chapter 21.18 48; Laws 1933, chapter 122; Laws 1939, chapter 304; Laws 1945, 21.19 chapter 300; Laws 1947, chapter 40; Laws 1949, chapter 191; Laws 21.20 1951, chapter 243; Laws 1953, chapter 401; Laws 1957, chapter 21.21 793; Laws 1965, chapter 536; Laws 1967, chapter 678; Laws 1969, 21.22 chapter 672; Laws 1971, chapter 807; Laws 1983, chapter 74; Laws 21.23 1987, chapter 372, article 2, section 7; and Laws 1991, chapter 21.24 269, article 2, section 12, are repealed. 21.25 Subd. 32. [MANKATO FIRE; REPEALER.] Laws 1949, chapter 21.26 144; Laws 1953, chapter 37; Laws 1957, chapter 16; Laws 1971, 21.27 chapter 407; Extra Session Laws 1971, chapter 41; Laws 1981, 21.28 chapter 224, sections 258 and 259; and Laws 1989, chapter 319, 21.29 article 11, section 3, are repealed. 21.30 Subd. 33. [MANKATO POLICE; REPEALER.] Laws 1971, chapter 21.31 407; Extra Session Laws 1971, chapter 41; Laws 1981, chapter 21.32 224, sections 258 and 259; Laws 1986, chapter 458, section 34; 21.33 and Laws 1987, chapter 372, article 2, section 12, are repealed. 21.34 Subd. 34. [MOORHEAD FIRE; REPEALER.] Laws 1951, chapter 21.35 499; Laws 1955, chapter 75; Laws 1965, chapter 190; Laws 1969, 21.36 chapter 138; Laws 1975, chapter 120; Laws 1978, chapter 563, 22.1 sections 12 and 13; Laws 1979, chapter 216, sections 34, 35, 36, 22.2 37, 38, 39, 40, 41, 42, 43, and 44; Laws 1981, chapter 224, 22.3 section 236; and Laws 1982, chapter 578, article III, section 22.4 18, are repealed. 22.5 Subd. 35. [MOORHEAD POLICE; REPEALER.] Laws 1945, chapter 22.6 277; Laws 1967, chapter 775; Laws 1978, chapter 563, section 19; 22.7 Laws 1979, chapter 216, sections 27, 28, 29, 30, 31, and 44; 22.8 Laws 1980, chapter 600, section 16; Laws 1981, chapter 224, 22.9 section 243; and Laws 1982, chapter 578, article III, section 22.10 18, are repealed. 22.11 Subd. 36. [NEW ULM POLICE; REPEALER.] Laws 1965, chapter 22.12 174; Laws 1974, chapter 251; Laws 1981, chapter 224, sections 22.13 265 and 266; and Laws 1985, chapter 261, section 20, are 22.14 repealed. 22.15 Subd. 37. [RED WING FIRE; REPEALER.] Laws 1953, chapter 22.16 348; Laws 1955, chapter 49; Laws 1957, chapter 10; Laws 1961, 22.17 chapter 300; Laws 1965, chapter 604; Laws 1973, chapter 359; 22.18 Laws 1975, chapter 254, sections 1, 2, 3, and 4; and Laws 1984, 22.19 chapter 574, section 24, are repealed. 22.20 Subd. 38. [RED WING POLICE; REPEALER.] Laws 1965, chapter 22.21 174; Laws 1973, chapter 346; Laws 1983, chapter 291, section 8; 22.22 and Laws 1994, chapter 410, are repealed. 22.23 Subd. 39. [RICHFIELD FIRE; REPEALER.] Laws 1955, chapter 22.24 348; Extra Session Laws 1961, chapter 28; Laws 1963, chapter 22.25 464; Laws 1967, chapter 798; Laws 1978, chapter 563, sections 20 22.26 and 21; Laws 1980, chapter 607, article XV, section 23; Laws 22.27 1981, chapter 224, section 244; and Laws 1997, chapter 241, 22.28 article 2, sections 2, 3, 4, 5, 6, 9, 10, 13, 14, and 20, are 22.29 repealed. 22.30 Subd. 40. [RICHFIELD POLICE; REPEALER.] Laws 1957, chapter 22.31 455; Laws 1965, chapter 458; Laws 1978, chapter 563, section 16; 22.32 Laws 1980, chapter 607, article XV, section 23; Laws 1981, 22.33 chapter 224, section 239; and Laws 1991, chapter 96, are 22.34 repealed. 22.35 Subd. 41. [ROCHESTER FIRE; REPEALER.] Laws 1959, chapter 22.36 131; Laws 1969, chapter 694; Laws 1978, chapter 563, section 14; 23.1 Laws 1980, chapter 600, sections 18 and 22; and Laws 1981, 23.2 chapter 224, section 237, are repealed. 23.3 Subd. 42. [ROCHESTER POLICE; REPEALER.] Laws 1969, chapter 23.4 641; Laws 1975, chapter 368, section 54; Laws 1978, chapters 23.5 563, section 23; and 793, section 96; Laws 1980, chapter 600, 23.6 sections 18 and 22; and Laws 1981, chapter 224, section 248, are 23.7 repealed. 23.8 Subd. 43. [ST. CLOUD FIRE; REPEALER.] Laws 1961, chapter 23.9 343; Laws 1963, chapter 453; Laws 1967, chapter 702; Laws 1974, 23.10 chapter 382; Laws 1977, chapter 270; Laws 1978, chapter 690, 23.11 sections 9 and 10; and Laws 1982, chapter 402, are repealed. 23.12 Subd. 44. [ST. CLOUD POLICE; REPEALER.] Laws 1973, chapter 23.13 432; Laws 1980, chapter 341, sections 2, 3, 4, and 5; Laws 1984, 23.14 chapter 574, section 25; and Laws 1999, chapter 222, article 3, 23.15 section 6, are repealed. 23.16 Subd. 45. [ST. LOUIS PARK FIRE; REPEALER.] Laws 1967, 23.17 chapter 730; Laws 1969, chapter 576; Laws 1978, chapter 563, 23.18 section 22; Laws 1981, chapter 224, section 247; and Laws 1985, 23.19 chapter 261, sections 32, 33, 34, and 35, are repealed. 23.20 Subd. 46. [ST. LOUIS PARK POLICE; REPEALER.] Laws 1963, 23.21 chapter 454; Laws 1980, chapter 600, section 17; Laws 1984, 23.22 chapter 574, section 19; and Laws 1990, chapter 589, article 1, 23.23 section 7, are repealed. 23.24 Subd. 47. [ST. PAUL FIRE; REPEALER.] Laws 1917, chapter 23.25 196; Laws 1919, chapter 515; Laws 1955, chapter 375; Laws 1957, 23.26 chapters 256 and 257; Laws 1961, chapter 376; Laws 1963, chapter 23.27 221; Laws 1965, chapter 790; Laws 1967, chapters 644 and 708; 23.28 Laws 1969, chapters 443, 669, and 671; Laws 1973, chapter 287; 23.29 Laws 1975, chapter 423; Laws 1977, chapter 164, section 1; Laws 23.30 1981, chapter 68, section 35; Laws 1989, chapter 319, article 23.31 11, section 12; Laws 1992, chapters 422 and 563, sections 3, 4, 23.32 and 5; Laws 1993, chapter 110; Laws 1996, chapter 448, article 23.33 2, section 1; and Laws 1997, chapter 241, article 2, sections 11 23.34 and 15, are repealed. 23.35 Subd. 48. [ST. PAUL POLICE; REPEALER.] Special Laws 1889, 23.36 chapter 425; Special Laws 1891, chapter 11; Laws 1897, chapters 24.1 389 and 390; Laws 1919, chapter 68; Laws 1921, chapter 118; Laws 24.2 1923, chapter 54; Laws 1925, chapter 197; Laws 1955, chapter 24.3 151; Laws 1961, chapters 434 and 435, section 2; Laws 1963, 24.4 chapter 271; Laws 1965, chapter 465; Laws 1969, chapters 442, 24.5 668, and 671; Laws 1971, chapter 549; Laws 1973, chapter 286; 24.6 Laws 1980, chapter 600, sections 12, 13, 14, and 15; Laws 1981, 24.7 chapter 68, section 34; Laws 1983, chapter 47; Laws 1988, 24.8 chapter 709, article 8, section 5; Laws 1989, chapter 319, 24.9 article 11, sections 2 and 12; Laws 1992, chapters 393, section 24.10 1; 563, section 5; and 586, section 1; Laws 1994, chapter 409; 24.11 Laws 1996, chapter 448, article 2, section 1; and Laws 1997, 24.12 chapter 241, article 2, sections 11 and 15, are repealed. 24.13 Subd. 49. [SOUTH ST. PAUL FIRE; REPEALER] Laws 1943, 24.14 chapter 397; Laws 1947, chapter 274; Laws 1949, chapter 281; 24.15 Laws 1951, chapters 233 and 420; Laws 1953, chapters 44 and 406; 24.16 Laws 1957, chapter 127; Laws 1961, chapter 747; Laws 1963, 24.17 chapter 715; Laws 1965, chapter 457; Laws 1969, chapter 849; and 24.18 Laws 1971, chapter 178, are repealed. 24.19 Subd. 50. [SOUTH ST. PAUL POLICE; REPEALER.] Laws 1994, 24.20 chapter 541, section 3, is repealed. 24.21 Subd. 51. [THIEF RIVER FALLS POLICE; REPEALER.] Laws 1981, 24.22 chapters 68, sections 41 and 42; 224, sections 272 and 273; Laws 24.23 1985, chapter 261, section 14; and Laws 1992, chapter 431, 24.24 section 1, are repealed. 24.25 Subd. 52. [VIRGINIA POLICE; REPEALER.] Laws 1935, chapters 24.26 92 and 259; Laws 1937, chapter 197; Laws 1949, chapter 235; Laws 24.27 1965, chapter 174; Laws 1982, chapter 574, sections 3, 4, 5, 6, 24.28 and 8; Laws 1985, chapter 261, sections 15 and 16; Laws 1989, 24.29 chapter 319, article 11, section 4; and Laws 1992, chapter 392, 24.30 section 1, are repealed. 24.31 Subd. 53. [WEST ST. PAUL FIRE; REPEALER.] Laws 1961, 24.32 chapter 399; Laws 1965, chapter 540; Laws 1982, chapter 610, 24.33 sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 20; 24.34 and Laws 1984, chapter 574, section 33, are repealed. 24.35 Subd. 54. [WEST ST. PAUL POLICE; REPEALER] Laws 1965, 24.36 chapter 174; Laws 1967, chapter 751; Laws 1981, chapter 297, 25.1 sections 1 and 2; Laws 1987, chapter 372, article 2, section 10; 25.2 and Laws 1995, chapter 262, article 10, section 4, are repealed. 25.3 Subd. 55. [WINONA FIRE; REPEALER.] Extra Session Laws 25.4 1961, chapter 80; Laws 1963, chapter 443; and Laws 1967, chapter 25.5 848, are repealed. 25.6 Subd. 56. [WINONA POLICE; REPEALERS.] Laws 1959, chapter 25.7 108; Extra Session Laws 1961, chapter 80; Laws 1977, chapter 25.8 429, section 62; Laws 1986, chapter 359, sections 22, 23, 24, 25.9 and 25; and Laws 1988, chapter 709, article 9, section 5, are 25.10 repealed. 25.11 Subd. 57. [OTHER REPEALER.] Minnesota Statutes 2000, 25.12 sections 69.78; 297I.10, subdivision 2; and 423A.03, are 25.13 repealed. 25.14 Sec. 10. [EFFECTIVE DATE.] 25.15 Sections 1 to 9 are effective on July 1, 2002. 25.16 ARTICLE 2 25.17 RETIREMENT PLAN ALLOWABLE SERVICE 25.18 CREDIT FOR STRIKE PERIODS 25.19 Section 1. Minnesota Statutes 2001 Supplement, section 25.20 352.01, subdivision 11, is amended to read: 25.21 Subd. 11. [ALLOWABLE SERVICE.] "Allowable service" means: 25.22 (1) Service by an employee for which on or before July 1, 25.23 1957, the employee was entitled to allowable service credit on 25.24 the records of the system by reason of employee contributions in 25.25 the form of salary deductions, payments in lieu of salary 25.26 deductions, or in any other manner authorized by Minnesota 25.27 Statutes 1953, chapter 352, as amended by Laws 1955, chapter 239. 25.28 (2) Service by an employee for which on or before July 1, 25.29 1961, the employee chose to obtain credit for service by making 25.30 payments to the fund under Minnesota Statutes 1961, section 25.31 352.24. 25.32 (3) Except as provided in clauses (8) and (9), service by 25.33 an employee after July 1, 1957, for any calendar month in which 25.34 the employee is paid salary from which deductions are made, 25.35 deposited, and credited in the fund, including deductions made, 25.36 deposited, and credited as provided in section 352.041. 26.1 (4) Except as provided in clauses (8) and (9), service by 26.2 an employee after July 1, 1957, for any calendar month for which 26.3 payments in lieu of salary deductions are made, deposited, and 26.4 credited in the fund, as provided in section 352.27 and 26.5 Minnesota Statutes 1957, section 352.021, subdivision 4. 26.6 For purposes of clauses (3) and (4), except as provided in 26.7 clauses (8) and (9), any salary paid for a fractional part of 26.8 any calendar month, including the month of separation from state 26.9 service, is deemed the compensation for the entire calendar 26.10 month. 26.11 (5) The period of absence from their duties by employees 26.12 who are temporarily disabled because of injuries incurred in the 26.13 performance of duties and for which disability the state is 26.14 liable under the workers' compensation law until the date 26.15 authorized by the director for the commencement of payments of a 26.16 total and permanent disability benefit from the retirement fund. 26.17 (6) Service covered by a refund repaid as provided in 26.18 section 352.23 or 352D.05, subdivision 4, except service 26.19 rendered as an employee of the adjutant general for which the 26.20 person has credit with the federal civil service retirement 26.21 system. 26.22 (7) Service before July 1, 1978, by an employee of the 26.23 transit operating division of the metropolitan transit 26.24 commission or by an employee on an authorized leave of absence 26.25 from the transit operating division of the metropolitan transit 26.26 commission who is employed by the labor organization which is 26.27 the exclusive bargaining agent representing employees of the 26.28 transit operating division, which was credited by the 26.29 metropolitan transit commission-transit operating division 26.30 employees retirement fund or any of its predecessor plans or 26.31 funds as past, intermediate, future, continuous, or allowable 26.32 service as defined in the metropolitan transit 26.33 commission-transit operating division employees retirement fund 26.34 plan document in effect on December 31, 1977. 26.35 (8) Service after July 1, 1983, by an employee who is 26.36 employed on a part-time basis for less than 50 percent of full 27.1 time, for which the employee is paid salary from which 27.2 deductions are made, deposited, and credited in the fund, 27.3 including deductions made, deposited, and credited as provided 27.4 in section 352.041 or for which payments in lieu of salary 27.5 deductions are made, deposited, and credited in the fund as 27.6 provided in section 352.27 shall be credited on a fractional 27.7 basis either by pay period, monthly, or annually based on the 27.8 relationship that the percentage of salary earned bears to a 27.9 full-time salary, with any salary paid for the fractional 27.10 service credited on the basis of the rate of salary applicable 27.11 for a full-time pay period, month, or a full-time year. For 27.12 periods of part-time service that is duplicated service credit, 27.13 section 356.30, subdivision 1, clauses (i) and (j), govern. 27.14 Allowable service determined and credited on a fractional 27.15 basis shall be used in calculating the amount of benefits 27.16 payable, but service as determined on a fractional basis must 27.17 not be used in determining the length of service required for 27.18 eligibility for benefits. 27.19 (9) Any period of authorized leave of absence without pay 27.20 that does not exceed one year and for which the employee 27.21 obtained credit by payment to the fund in lieu of salary 27.22 deductions. To obtain credit, the employee shall pay an amount 27.23 equal to the employee and employer contribution rate in section 27.24 352.04, subdivisions 2 and 3, multiplied by the employee's 27.25 hourly rate of salary on the date of return from leave of 27.26 absence and by the days and months of the leave of absence 27.27 without pay for which the employee wants allowable service 27.28 credit. The employing department, at its option, may pay the 27.29 employer amount on behalf of its employees. Payments made under 27.30 this clause must include interest at an annual rate of 8.5 27.31 percent compounded annually from the date of termination of the 27.32 leave of absence to the date payment is made unless payment is 27.33 completed within one year of the return from leave of absence. 27.34 (10) A period purchased under section 356.555. 27.35 (11) A period of time during which the employee was on 27.36 strike without pay, not to exceed a period of one year, if the 28.1 employee makes a payment in lieu of salary deductions or makes a 28.2 prior service credit purchase payment, whichever applies. If 28.3 the payment is made within 12 months, the payment by the 28.4 employee must be an amount equal to the employee and employer 28.5 contribution rates set forth in section 352.04, subdivisions 2 28.6 and 3, applied to the employee's rate of salary in effect on the 28.7 conclusion of the strike for the period of the strike without 28.8 pay, plus compound interest at a monthly rate of 0.71 percent 28.9 from the last day of the strike until the date of payment. If 28.10 the payment by the employee is not made within 12 months, the 28.11 payment must be in an amount equal to the payment amount 28.12 determined under section 356.55 or 356.551, whichever applies. 28.13 Sec. 2. Minnesota Statutes 2001 Supplement, section 28.14 353.01, subdivision 16, is amended to read: 28.15 Subd. 16. [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 28.16 "Allowable service" means: 28.17 (1) service during years of actual membership in the course 28.18 of which employee contributions were made, periods covered by 28.19 payments in lieu of salary deductions under section 353.35; 28.20 (2) service in years during which the public employee was 28.21 not a member but for which the member later elected, while a 28.22 member, to obtain credit by making payments to the fund as 28.23 permitted by any law then in effect; 28.24 (3) a period of authorized leave of absence with pay from 28.25 which deductions for employee contributions are made, deposited, 28.26 and credited to the fund; 28.27 (4) a period of authorized personal, parental, or medical 28.28 leave of absence without pay, including a leave of absence 28.29 covered under the federal Family Medical Leave Act, that does 28.30 not exceed one year, and during or for which a member obtained 28.31 full or fractional service credit for each month in the leave 28.32 period by payments to the fund made in place of salary 28.33 deductions. The payments must be made in an amount or amounts 28.34 based on the member's average salary on which deductions were 28.35 paid for the last six months of public service, or for that 28.36 portion of the last six months while the member was in public 29.1 service, to apply to the period in either case that immediately 29.2 precedes the commencement of the leave of absence. If the 29.3 employee elects to pay the employee contributions for the period 29.4 of any authorized personal, parental, or medical leave of 29.5 absence without pay, or for any portion of the leave, the 29.6 employee shall also, as a condition to the exercise of the 29.7 election, pay to the fund an amount equivalent to the required 29.8 employer and the additional employer contributions, if any, for 29.9 the employee. The payment must be made within one year from the 29.10 expiration of the leave of absence or within 20 days after 29.11 termination of public service under subdivision 11a. The 29.12 employer, if by appropriate action of its governing body, which 29.13 is made a part of its official records, and which is adopted 29.14 before the date of the first payment of the employee 29.15 contribution, may certify to the association in writing its 29.16 commitment to pay the employer and additional employer 29.17 contributions from the proceeds of a tax levy made under section 29.18 353.28. Payments under this paragraph must include interest at 29.19 an annual rate of 8.5 percent compounded annually from the date 29.20 of the termination of the leave of absence to the date payment 29.21 is made. An employee shall return to public service and render 29.22 a minimum of three months of allowable service in order to be 29.23 eligible to pay employee and employer contributions for a 29.24 subsequent authorized leave of absence without pay. Upon 29.25 payment, the employee must be granted allowable service credit 29.26 for full calendar months or fractions of a month during the 29.27 leave period as described in paragraph (d), clauses (1) and (2), 29.28 based on the salary or the compensated hours used in computing 29.29 the payment amount; 29.30 (5) a periodic, repetitive leave that is offered to all 29.31 employees of a governmental subdivision. The leave program may 29.32 not exceed 208 hours per annual normal work cycle as certified 29.33 to the association by the employer. A participating member 29.34 obtains service credit by making employee contributions in an 29.35 amount or amounts based on the member's average salary that 29.36 would have been paid if the leave had not been taken. The 30.1 employer shall pay the employer and additional employer 30.2 contributions on behalf of the participating member. The 30.3 employee and the employer are responsible to pay interest on 30.4 their respective shares at the rate of 8.5 percent a year, 30.5 compounded annually, from the end of the normal cycle until full 30.6 payment is made. An employer shall also make the employer and 30.7 additional employer contributions, plus 8.5 percent interest, 30.8 compounded annually, on behalf of an employee who makes employee 30.9 contributions but terminates public service. The employee 30.10 contributions must be made within one year after the end of the 30.11 annual normal working cycle or within 20 days after termination 30.12 of public service, whichever is sooner. The association shall 30.13 prescribe the manner and forms to be used by a governmental 30.14 subdivision in administering a periodic, repetitive leave. Upon 30.15 payment, the member must be granted allowable service credit for 30.16 full calendar months or fractions of a month during the leave 30.17 period as described in paragraph (d), clauses (1) and (2), based 30.18 on the salary or the compensated hours used in computing the 30.19 payment amount; 30.20 (6) an authorized temporary layoff under subdivision 12. 30.21 For temporary layoffs that begin before January 1, 2002, 30.22 allowable service credit is limited to three months allowable 30.23 service per authorized temporary layoff in one calendar year. 30.24 For temporary layoffs that begin on or after January 1, 2002, 30.25 allowable service credit for the calendar month in which the 30.26 member does not receive salary due to the layoff must be 30.27 determined using the following formula: 30.28 (i) members who earned one month of allowable service 30.29 credit for each of the nine calendar months of compensated 30.30 employment with the governmental subdivision authorizing the 30.31 layoff that immediately preceded the layoff shall receive one 30.32 month of allowable service credit, limited to three months of 30.33 allowable service credit per year, for each month of the 30.34 temporary layoff; or 30.35 (ii) members who earned less than nine months of allowable 30.36 service credit in the year of compensated employment with the 31.1 governmental subdivision authorizing the layoff that immediately 31.2 preceded the layoff shall receive allowable service credit on a 31.3 fractional basis for each month of the authorized layoff, 31.4 limited to three months of allowable service credit, determined 31.5 by dividing the total number of months of service credit earned 31.6 for the compensated employment by nine and multiplying the 31.7 resulting number by the total number of months in the layoff 31.8 period that are not compensated;or31.9 (7) a period during which a member is on an authorized 31.10 leave of absence to enter military service in the armed forces 31.11 of the United States, provided that the member returns to public 31.12 service upon discharge from military service under section 31.13 192.262 and pays into the fund employee contributions based upon 31.14 the employee's salary at the date of return from military 31.15 service. Payment must be made within three times the length of 31.16 the military leave period, or five years of the date of 31.17 discharge from the military service, whichever is less. The 31.18 amount of these contributions must be in accord with the 31.19 contribution rates and salary limitations, if any, in effect 31.20 during the leave, plus interest at an annual rate of 8.5 percent 31.21 compounded annually from the date of return to public service to 31.22 the date payment is made. The matching employer contribution 31.23 and additional employer contribution under section 353.27, 31.24 subdivisions 3 and 3a, must be paid by the governmental 31.25 subdivision employing the member upon return to public service 31.26 if the member makes the employee contributions. The 31.27 governmental subdivision involved may appropriate money for 31.28 those payments. A member may not receive credit for a voluntary 31.29 extension of military service at the instance of the member 31.30 beyond the initial period of enlistment, induction, or call to 31.31 active duty. Upon payment, the employee must be granted 31.32 allowable service credit for full calendar months or fractions 31.33 of a month during the leave period as described in paragraph 31.34 (d), clauses (1) and (2), based on the salary or compensated 31.35 hours used in computing the payment amount.; or 31.36 (8) a period of time during which a member who is a state 32.1 employee was on strike without pay, not to exceed a period of 32.2 one year, if the member makes a payment in lieu of salary 32.3 deductions or makes a prior service credit purchase payment, 32.4 whichever applies. If the payment is made within 12 months, the 32.5 payment by the member must be an amount equal to the employee, 32.6 employer, and employer additional contribution rates set forth 32.7 in section 353.27, subdivisions 2, 3, and 3a, applied to the 32.8 employee's rate of salary in effect on the conclusion of the 32.9 strike for the period of the strike without pay, plus compound 32.10 interest at a monthly rate of 0.71 percent from the last day of 32.11 the strike until the date of payment. If the payment by the 32.12 employee is not made within 12 months, the payment must be in an 32.13 amount equal to the payment amount determined under section 32.14 356.55 or 356.551, whichever applies. 32.15 (b) For calculating benefits under sections 353.30, 353.31, 32.16 353.32, and 353.33 for state officers and employees displaced by 32.17 the Community Corrections Act, chapter 401, and transferred into 32.18 county service under section 401.04, "allowable service" means 32.19 combined years of allowable service as defined in paragraph (a), 32.20 clauses (1) to (6), and section 352.01, subdivision 11. 32.21 (c) For a public employee who has prior service covered by 32.22 a local police or firefighters relief association that has 32.23 consolidated with the public employees retirement association or 32.24 to which section 353.665 applies, and who has elected the type 32.25 of benefit coverage provided by the public employees police and 32.26 fire fund either under section 353A.08 following the 32.27 consolidation or under section 353.665, subdivision 4, 32.28 "applicable service" is a period of service credited by the 32.29 local police or firefighters relief association as of the 32.30 effective date of the consolidation based on law and on bylaw 32.31 provisions governing the relief association on the date of the 32.32 initiation of the consolidation procedure. 32.33 (d) For persons who, after January 1, 2002, either first 32.34 become members or terminated membership under subdivision 11b, 32.35 and again become members, of the public employees retirement 32.36 plan, the public employees police and fire plan under this 33.1 chapter, or the local government correctional employee 33.2 retirement plan under chapter 353E, whichever applies, 33.3 "allowable service" means credit for compensated hours from 33.4 which deductions are made, or for which payments are made in 33.5 lieu of salary deductions as provided under this subdivision, 33.6 and which are deposited and credited in the fund as provided in 33.7 section 353.27, determined as follows: 33.8 (1) one month of allowable service credit for each month 33.9 during which the employee has received salary for 80 or more 33.10 compensated hours; or 33.11 (2) a fraction of one month of allowable service for each 33.12 month for which the employee has received salary for less than 33.13 80 compensated hours equal to the percentage relationship that 33.14 the number of compensated hours bear to 80 hours. 33.15 (e) Elected officials and other public employees who are 33.16 compensated solely on an annual basis shall be granted a full 33.17 year of credit for each year for which compensation is earned. 33.18 (f) Allowable service that is determined and credited on a 33.19 fractional basis must be used only in calculating the amount of 33.20 benefits payable. In determining the length of service required 33.21 for vesting, a member shall be granted a month of service credit 33.22 for each month in which the member received compensation from 33.23 which employee contributions were deducted. For periods of 33.24 part-time service that are duplicated service credit, section 33.25 356.30, subdivision 1, paragraphs (g) and (h), govern. 33.26 (g) No member shall receive more than 12 months of 33.27 allowable service credit in a year either for vesting purposes 33.28 or for benefit calculation purposes. 33.29 (h) "Allowable service" also means a period purchased under 33.30 section 356.555. 33.31 Sec. 3. Minnesota Statutes 2001 Supplement, section 33.32 354.05, subdivision 13, is amended to read: 33.33 Subd. 13. [ALLOWABLE SERVICE.] "Allowable service" means: 33.34 (1) Any service rendered by a teacher for which on or 33.35 before July 1, 1957, the teacher's account in the retirement 33.36 fund was credited by reason of employee contributions in the 34.1 form of salary deductions, payments in lieu of salary 34.2 deductions, or in any other manner authorized by Minnesota 34.3 Statutes 1953, sections 135.01 to 135.13, as amended by Laws 34.4 1955, chapters 361, 549, 550, 611, or 34.5 (2) Any service rendered by a teacher for which on or 34.6 before July 1, 1961, the teacher elected to obtain credit for 34.7 service by making payments to the fund pursuant to Minnesota 34.8 Statutes 1980, section 354.09 and section 354.51, or 34.9 (3) Any service rendered by a teacher after July 1, 1957, 34.10 for any calendar month when the member receives salary from 34.11 which deductions are made, deposited and credited in the fund, 34.12 or 34.13 (4) Any service rendered by a person after July 1, 1957, 34.14 for any calendar month where payments in lieu of salary 34.15 deductions are made, deposited and credited into the fund as 34.16 provided in Minnesota Statutes 1980, section 354.09, subdivision 34.17 4, and section 354.53, or 34.18 (5) Any service rendered by a teacher for which the teacher 34.19 elected to obtain credit for service by making payments to the 34.20 fund pursuant to Minnesota Statutes 1980, section 354.09, 34.21 subdivisions 1 and 4, sections 354.50, 354.51, Minnesota 34.22 Statutes 1957, section 135.41, subdivision 4, Minnesota Statutes 34.23 1971, section 354.09, subdivision 2, or Minnesota Statutes, 1973 34.24 Supplement, section 354.09, subdivision 3, or 34.25 (6) Both service during years of actual membership in the 34.26 course of which contributions were currently made and service in 34.27 years during which the teacher was not a member but for which 34.28 the teacher later elected to obtain credit by making payments to 34.29 the fund as permitted by any law then in effect, or 34.30 (7) Any service rendered where contributions were made and 34.31 no allowable service credit was established because of the 34.32 limitations contained in Minnesota Statutes 1957, section 34.33 135.09, subdivision 2, as determined by the ratio between the 34.34 amounts of money credited to the teacher's account in a fiscal 34.35 year and the maximum retirement contribution allowable for that 34.36 year, or 35.1 (8) A period purchased under section 356.555., or 35.2 (9) A period of time during which a teacher who is a state 35.3 employee was on strike without pay, not to exceed a period of 35.4 one year, if the teacher makes a payment in lieu of salary 35.5 deductions or makes a prior service credit purchase payment, 35.6 whichever applies. If the payment is made within 12 months, the 35.7 payment by the teacher must be an amount equal to the employee 35.8 and employer contribution rates set forth in section 354.42, 35.9 subdivisions 2 and 3, applied to the teacher's rate of salary in 35.10 effect on the conclusion of the strike for the period of the 35.11 strike without pay, plus compound interest at a monthly rate of 35.12 0.71 percent from the last day of the strike until the date of 35.13 payment. If the payment by the employee is not made within 12 35.14 months, the payment must be in an amount equal to the payment 35.15 amount determined under section 356.55 or 356.551, whichever 35.16 applies. 35.17 Sec. 4. [EFFECTIVE DATE.] 35.18 (a) Sections 1, 2, and 3 are effective retroactive to July 35.19 1, 2001. 35.20 (b) The authority to obtain credit for allowable service 35.21 under section 1, clause (11); section 2, paragraph (a), clause 35.22 (8); and section 3, clause (9), expires 12 months after the date 35.23 of enactment. 35.24 ARTICLE 3 35.25 PERA MEMBERSHIP ELIGIBILITY 35.26 AND SERVICE CREDIT PRORATION 35.27 Section 1. Minnesota Statutes 2001 Supplement, section 35.28 353.01, subdivision 2a, is amended to read: 35.29 Subd. 2a. [INCLUDED EMPLOYEES.] (a) Public employees whose 35.30 salary from one governmental subdivision exceeds $425 in any 35.31 month shall participate as members of the association. If the 35.32 salary is less than $425 in a subsequent month, the employee 35.33 retains membership eligibility. Eligible public employees shall 35.34 participate as members of the association with retirement 35.35 coverage by the public employees retirement plan or the public 35.36 employees police and fire retirement plan under this chapter, or 36.1 the local government correctional employees retirement plan 36.2 under chapter 353E, whichever applies, as a condition of their 36.3 employment on the first day of employment unless they: 36.4 (1) are specifically excluded under subdivision 2b; 36.5 (2) do not exercise their option to elect retirement 36.6 coverage in the association as provided in subdivision 2d, 36.7 paragraph (a); or 36.8 (3) are employees of the governmental subdivisions listed 36.9 in subdivision 2d, paragraph (b), where the governmental 36.10 subdivision has not elected to participate as a governmental 36.11 subdivision covered by the association. 36.12 (b) A public employee who was a member of the association 36.13 on June 30, 2002, based on employment that qualified for 36.14 membership coverage by the public employees retirement plan or 36.15 the public employees police and fire plan under this chapter, or 36.16 the local government correctional employees retirement plan 36.17 under chapter 353E as of June 30, 2002, retains that membership 36.18 until the employee terminates public employment under 36.19 subdivision 11a or terminates membership under subdivision 11b. 36.20 Sec. 2. Minnesota Statutes 2001 Supplement, section 36.21 353.01, subdivision 2b, is amended to read: 36.22 Subd. 2b. [EXCLUDED EMPLOYEES.] The following public 36.23 employees are not eligible to participate as members of the 36.24 association with retirement coverage by the public employees 36.25 retirement plan, the local government correctional employees 36.26 retirement plan under chapter 353E, or the public employees 36.27 police and fire retirement plan: 36.28 (1) public officers, other than county sheriffs, who are 36.29 elected to a governing body, or persons who are appointed to 36.30 fill a vacancy in an elective office of a governing body, whose 36.31 term of office first commences on or after July 1, 2002, for the 36.32 service to be rendered in that elective position. Elected 36.33 governing body officials who were active members of the 36.34 association's coordinated or basic retirement plans as of June 36.35 30, 2002, continue participation throughout incumbency in office 36.36 until termination of public service occurs as defined in 37.1 subdivision 11a; 37.2 (2) election officers or election judges; 37.3 (3) patient and inmate personnel who perform services for a 37.4 governmental subdivision; 37.5 (4) employees who are hired for a temporary position under 37.6 subdivision 12a, and employees who resign from a nontemporary 37.7 position and accept a temporary position within 30 days in the 37.8 same governmental subdivision. An employer must not apply the 37.9 definition of temporary position so as to exclude employees who 37.10 are hired to fill positions that are permanent or that are for 37.11 an unspecified period but who are serving a probationary period 37.12 at the start of the employment. If the period of employment 37.13 extends beyond six consecutive months and the employee earns 37.14 more than $425 from one governmental subdivision in any calendar 37.15 month, the department head shall report the employee for 37.16 membership and require employee deductions be made on behalf of 37.17 the employee under section 353.27, subdivision 4. 37.18 The membership eligibility of an employee who resigns or is 37.19 dismissed from a temporary position and within 30 days accepts 37.20 another temporary position in the same governmental subdivision 37.21 is determined on the total length of employment rather than on 37.22 each separate position. Membership eligibility of an employee 37.23 who holds concurrent temporary and nontemporary positions in one 37.24 governmental subdivision is determined by the length of 37.25 employment and salary of each separate position; 37.26 (5) employees who are employed by reason of work emergency 37.27 caused by fire, flood, storm, or similar disaster; 37.28 (6) employees who by virtue of their employment in one 37.29 governmental subdivision are required by law to be a member of 37.30 and to contribute to any of the plans or funds administered by 37.31 the Minnesota state retirement system, the teachers retirement 37.32 association, the Duluth teachers retirement fund association, 37.33 the Minneapolis teachers retirement association, the St. Paul 37.34 teachers retirement fund association, the Minneapolis employees 37.35 retirement fund, or any police or firefighters relief 37.36 association governed by section 69.77 that has not consolidated 38.1 with the public employees retirement association, or any local 38.2 police or firefighters consolidation account but who have not 38.3 elected the type of benefit coverage provided by the public 38.4 employees police and fire fund under sections 353A.01 to 38.5 353A.10, or any persons covered by section 353.665, subdivision 38.6 4, 5, or 6, who have not elected public employees police and 38.7 fire plan benefit coverage. This clause must not be construed 38.8 to prevent a person from being a member of and contributing to 38.9 the public employees retirement association and also belonging 38.10 to and contributing to another public pension fund for other 38.11 service occurring during the same period of time. A person who 38.12 meets the definition of "public employee" in subdivision 2 by 38.13 virtue of other service occurring during the same period of time 38.14 becomes a member of the association unless contributions are 38.15 made to another public retirement fund on the salary based on 38.16 the other service or to the teachers retirement association by a 38.17 teacher as defined in section 354.05, subdivision 2; 38.18 (7) persons who are members of a religious order and are 38.19 excluded from coverage under the federal Old Age, Survivors, 38.20 Disability, and Health Insurance Program for the performance of 38.21 service as specified in United States Code, title 42, section 38.22 410(a)(8)(A), as amended through January 1, 1987, if no 38.23 irrevocable election of coverage has been made under section 38.24 3121(r) of the Internal Revenue Code of 1954, as amended; 38.25 (8) employeeswho at the time they are hired by aof a 38.26 governmental subdivision who have not reached the age of 23 and 38.27 are enrolled on a full-time basis to attend or are attending 38.28 classes on a full-time basis at an accredited school, college, 38.29 or university in an undergraduate, graduate, or 38.30 professional-technical program, or a public or charter high 38.31 school, if the employment is predicated on the student status of38.32the individual; 38.33 (9) resident physicians, medical interns, and pharmacist 38.34 residents and pharmacist interns who are serving in a degree or 38.35 residency program in public hospitals; 38.36 (10) students who are serving in an internship or residency 39.1 program sponsored by an accredited educational institution; 39.2 (11) persons who hold a part-time adult supplementary 39.3 technical college license who render part-time teaching service 39.4 in a technical college; 39.5 (12) except for employees of Hennepin county, foreign 39.6 citizens working for a governmental subdivision with a work 39.7 permit of less than three years, or an H-1b visa valid for less 39.8 than three years of employment. Upon notice to the association 39.9 that the work permit or visa extends beyond the three-year 39.10 period, the foreign citizens areeligibleto be reported for 39.11 membership from the date of the extension; 39.12 (13) public hospital employees who elected not to 39.13 participate as members of the association before 1972 and who 39.14 did not elect to participate from July 1, 1988, to October 1, 39.15 1988; 39.16 (14) except as provided in section 353.86, volunteer 39.17 ambulance service personnel, as defined in subdivision 35, but 39.18 persons who serve as volunteer ambulance service personnel may 39.19 still qualify as public employees under subdivision 2 and may be 39.20 members of the public employees retirement association and 39.21 participants in the public employees retirement fund or the 39.22 public employees police and fire fund, whichever applies, on the 39.23 basis of compensation received from public employment service 39.24 other than service as volunteer ambulance service personnel; 39.25 (15) except as provided in section 353.87, volunteer 39.26 firefighters, as defined in subdivision 36, engaging in 39.27 activities undertaken as part of volunteer firefighter duties; 39.28 provided that a person who is a volunteer firefighter may still 39.29 qualify as a public employee under subdivision 2 and may be a 39.30 member of the public employees retirement association and a 39.31 participant in the public employees retirement fund or the 39.32 public employees police and fire fund, whichever applies, on the 39.33 basis of compensation received from public employment activities 39.34 other than those as a volunteer firefighter; 39.35 (16) pipefitters and associated trades personnel employed 39.36 by independent school district No. 625, St. Paul, with coverage 40.1 under a collective bargaining agreement by the pipefitters local 40.2 455 pension plan who were either first employed after May 1, 40.3 1997, or, if first employed before May 2, 1997, elected to be 40.4 excluded under Laws 1997, chapter 241, article 2, section 12; 40.5 (17) electrical workers, plumbers, carpenters, and 40.6 associated trades personnel employed by independent school 40.7 district No. 625, St. Paul, or the city of St. Paul, who have 40.8 retirement coverage under a collective bargaining agreement by 40.9 the electrical workers local 110 pension plan, the united 40.10 association plumbers local 34 pension plan, or the carpenters 40.11 local 87 pension plan who were either first employed after May 40.12 1, 2000, or, if first employed before May 2, 2000, elected to be 40.13 excluded under Laws 2000, chapter 461, article 7, section 5; 40.14 (18) bricklayers, allied craftworkers, cement masons, 40.15 glaziers, glassworkers, painters, allied tradesworkers, and 40.16 plasterers employed by the city of St. Paul or independent 40.17 school district No. 625, St. Paul, with coverage under a 40.18 collective bargaining agreement by the bricklayers and allied 40.19 craftworkers local 1 pension plan, the cement masons local 633 40.20 pension plan, the glaziers and glassworkers local L-1324 pension 40.21 plan, the painters and allied trades local 61 pension plan, or 40.22 the Twin Cities plasterers local 265 pension plan who were 40.23 either first employed after May 1, 2001, or if first employed 40.24 before May 2, 2001, elected to be excluded under Laws 2001, 40.25 First Special Session chapter 10, article 10, section 6; 40.26 (19) plumbers employed by the metropolitan airports 40.27 commission, with coverage under a collective bargaining 40.28 agreement by the plumbers local 34 pension plan, who either were 40.29 first employed after May 1, 2001, or if first employed before 40.30 May 2, 2001, elected to be excluded under Laws 2001, First 40.31 Special Session chapter 10, article 10, section 6; 40.32 (20) employees who are hired after June 30, 2002, to fill 40.33 seasonal positions under subdivision 12b which are limited in 40.34 duration by the employer to 185 consecutive calendar days or 40.35 less in eachbusinessyear of employment with the governmental 40.36 subdivision; 41.1 (21) persons who are provided supported employment or 41.2 work-study positions by a governmental subdivision and who 41.3 participate in an employment or industries program maintained 41.4 for the benefit of these persons where the governmental 41.5 subdivision limits the position's duration to three years or 41.6 less, including persons participating in a federal or state 41.7 subsidized on-the-job training, work experience, senior citizen, 41.8 youth, or unemployment relief program where the training or work 41.9 experience is not provided as a part of, or for, future 41.10 permanent public employment; 41.11 (22) independent contractors and the employees of 41.12 independent contractors; and 41.13 (23) reemployed annuitants of the association during the 41.14 course of that reemployment. 41.15 Sec. 3. Minnesota Statutes 2001 Supplement, section 41.16 353.01, subdivision 11b, is amended to read: 41.17 Subd. 11b. [TERMINATION OF MEMBERSHIP.] (a) "Termination 41.18 of membership" means the conclusion of membership in the 41.19 association and occurs: 41.20 (1) upon termination of public service under subdivision 41.21 11a; 41.22 (2) when a member does not return to work within 30 days of 41.23 the expiration of an authorized temporary layoff under 41.24 subdivision 12 or an authorized leave of absence under 41.25 subdivision 31 as evidenced by the appropriate record filed by 41.26 the governmental subdivision; or 41.27 (3) when a person files a written election to discontinue 41.28 employee deductions under section 353.27, subdivision 7, 41.29 paragraph (a), clause (1). 41.30 (b) The termination of membership must be reported to the 41.31 association by the governmental subdivision. 41.32 (c) If the employee subsequently returns to a position in 41.33 the same governmental subdivision, the employee shall not again 41.34 be required to earn a salary in excess of $425 per month to 41.35 qualify for membership, unless the employee has taken a refund 41.36 of accumulated employee deduction plus interest under section 42.1 353.34, subdivision 1. 42.2 Sec. 4. Minnesota Statutes 2001 Supplement, section 42.3 353.01, subdivision 16, is amended to read: 42.4 Subd. 16. [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 42.5 "Allowable service" means: 42.6 (1) service during years of actual membership in the course 42.7 of which employee contributions were made, periods covered by 42.8 payments in lieu of salary deductions under section 353.35; 42.9 (2) service in years during which the public employee was 42.10 not a member but for which the member later elected, while a 42.11 member, to obtain credit by making payments to the fund as 42.12 permitted by any law then in effect; 42.13 (3) a period of authorized leave of absence with pay from 42.14 which deductions for employee contributions are made, deposited, 42.15 and credited to the fund; 42.16 (4) a period of authorized personal, parental, or medical 42.17 leave of absence without pay, including a leave of absence 42.18 covered under the federal Family Medical Leave Act, that does 42.19 not exceed one year, and during or for which a member obtained 42.20full or fractionalservice credit for each month in the leave 42.21 period by payments to the fund made in place of salary 42.22 deductions. The payments must be made in an amount or amounts 42.23 based on the member's average salary on which deductions were 42.24 paid for the last six months of public service, or for that 42.25 portion of the last six months while the member was in public 42.26 service, to apply to the period in either case that immediately 42.27 precedes the commencement of the leave of absence. If the 42.28 employee elects to pay the employee contributions for the period 42.29 of any authorized personal, parental, or medical leave of 42.30 absence without pay, or for any portion of the leave, the 42.31 employee shall also, as a condition to the exercise of the 42.32 election, pay to the fund an amount equivalent to the required 42.33 employer and the additional employer contributions, if any, for 42.34 the employee. The payment must be made within one year from the 42.35 expiration of the leave of absence or within 20 days after 42.36 termination of public service under subdivision 11a, whichever 43.1 is earlier. The employer,ifby appropriate action of its 43.2 governing body,which is made a part of its official records,43.3 and which is adopted before the date of the first payment of the 43.4 employee contribution, may certify to the association in writing 43.5 its commitment to pay the employer and additional employer 43.6 contributions from the proceeds of a tax levy made under section 43.7 353.28. Payments under this paragraph must include interest at 43.8 an annual rate of 8.5 percent compounded annually from the date 43.9 of the termination of the leave of absence to the date payment 43.10 is made. An employee shall return to public service and render 43.11 a minimum of three months of allowable service in order to be 43.12 eligible to pay employee and employer contributions for a 43.13 subsequent authorized leave of absence without pay. Upon 43.14 payment, the employee must be granted allowable service credit 43.15 forfull calendar months or fractions of a month duringthe 43.16leavepurchased periodas described in paragraph (d), clauses (1)43.17and (2), based on the salary or the compensated hours used in43.18computing the payment amount; 43.19 (5) a periodic, repetitive leave that is offered to all 43.20 employees of a governmental subdivision. The leave program may 43.21 not exceed 208 hours per annual normal work cycle as certified 43.22 to the association by the employer. A participating member 43.23 obtains service credit by making employee contributions in an 43.24 amount or amounts based on the member's average salary that 43.25 would have been paid if the leave had not been taken. The 43.26 employer shall pay the employer and additional employer 43.27 contributions on behalf of the participating member. The 43.28 employee and the employer are responsible to pay interest on 43.29 their respective shares at the rate of 8.5 percent a year, 43.30 compounded annually, from the end of the normal cycle until full 43.31 payment is made. An employer shall also make the employer and 43.32 additional employer contributions, plus 8.5 percent interest, 43.33 compounded annually, on behalf of an employee who makes employee 43.34 contributions but terminates public service. The employee 43.35 contributions must be made within one year after the end of the 43.36 annual normal working cycle or within 20 days after termination 44.1 of public service, whichever is sooner. The association shall 44.2 prescribe the manner and forms to be used by a governmental 44.3 subdivision in administering a periodic, repetitive leave. Upon 44.4 payment, the member must be granted allowable service credit for 44.5full calendar months or fractions of a month duringtheleave44.6 purchased periodas described in paragraph (d), clauses (1) and44.7(2), based on the salary or the compensated hours used in44.8computing the payment amount; 44.9 (6) an authorized temporary layoff under subdivision 12.44.10For temporary layoffs that begin before January 1, 2002,44.11allowable service credit is, limited to three months allowable 44.12 service per authorized temporary layoff in one calendar year. 44.13For temporary layoffs that begin on or after January 1, 2002,44.14allowable service credit for the calendar month in which the44.15member does not receive salary due to the layoff must be44.16determined using the following formula:44.17(i) members who earned one month of allowable service44.18credit for each of the nine calendar months of compensated44.19employment with the governmental subdivision authorizing the44.20layoff that immediately preceded the layoff shall receive one44.21month of allowable service credit, limited to three months of44.22allowable service credit per year, for each month of the44.23temporary layoff; or44.24(ii) members who earned less than nine months of allowable44.25service credit in the year of compensated employment with the44.26governmental subdivision authorizing the layoff that immediately44.27preceded the layoff shall receive allowable service credit on a44.28fractional basis for each month of the authorized layoff,44.29limited to three months of allowable service credit, determined44.30by dividing the total number of months of service credit earned44.31for the compensated employment by nine and multiplying the44.32resulting number by the total number of months in the layoff44.33period that are not compensatedAn employee who has received the 44.34 maximum service credit allowed for an authorized temporary 44.35 layoff must return to public service and must obtain a minimum 44.36 of three months of allowable service subsequent to the layoff in 45.1 order to receive allowable service for a subsequent authorized 45.2 temporary layoff; or 45.3 (7) a period during which a member is on an authorized 45.4 leave of absence to enter military service in the armed forces 45.5 of the United States, provided thatif the member returns to 45.6 public service upon discharge from military service under 45.7 section 192.262 and pays into the fund employee contributions 45.8 based upon the employee's salary at the date of return from 45.9 military service. Payment must be made within a period that is 45.10 three times the length of the military leave period, or within 45.11 five years of the date of discharge from the military service, 45.12 whichever is less. Payment may not be accepted following 20 45.13 days after termination of public service under subdivision 11a. 45.14 The amount of these contributions must be in accord with the 45.15 contribution rates and salary limitations, if any, in effect 45.16 during the leave, plus interest at an annual rate of 8.5 percent 45.17 compounded annually from the date of return to public service to 45.18 the date payment is made. Thematchingcorresponding employer 45.19 contribution, and additional employer contributionunder section45.20353.27, subdivisions 3 and 3a, if applicable, must be paid by 45.21 the governmental subdivision employing the member upon the 45.22 person's return to public service if the member makes the 45.23 employee contributions. The governmental subdivision involved 45.24 may appropriate money for those payments. A member may not 45.25 receive credit for a voluntary extension of military service at 45.26 the instance of the member beyond the initial period of 45.27 enlistment, induction, or call to active duty. Upon payment, 45.28 the employee must be granted allowable service credit forfull45.29calendar months or fractions of a month duringtheleave45.30 purchased periodas described in paragraph (d), clauses (1) and45.31(2), based on the salary or compensated hours used in computing45.32the payment amount. 45.33 (b) For calculating benefits under sections 353.30, 353.31, 45.34 353.32, and 353.33 for state officers and employees displaced by 45.35 the Community Corrections Act, chapter 401, and transferred into 45.36 county service under section 401.04, "allowable service" 46.1 means the combined years of allowable service as defined in 46.2 paragraph (a), clauses (1) to (6), and section 352.01, 46.3 subdivision 11. 46.4 (c) For a public employee who has prior service covered by 46.5 a local police or firefighters relief association that has 46.6 consolidated with the public employees retirement association or 46.7 to which section 353.665 applies, and who has elected the type 46.8 of benefit coverage provided by the public employees police and 46.9 fire fund either under section 353A.08 following the 46.10 consolidation or under section 353.665, subdivision 4, 46.11 "applicable service" is a period of service credited by the 46.12 local police or firefighters relief association as of the 46.13 effective date of the consolidation based on law and on bylaw 46.14 provisions governing the relief association on the date of the 46.15 initiation of the consolidation procedure. 46.16 (d)For persons who, after January 1, 2002, either first46.17become members or terminated membership under subdivision 11b,46.18and again become members, of the public employees retirement46.19plan, the public employees police and fire plan under this46.20chapter, or the local government correctional employee46.21retirement plan under chapter 353E, whichever applies,46.22"allowable service" means credit for compensated hours from46.23which deductions are made, or for which payments are made in46.24lieu of salary deductions as provided under this subdivision,46.25and which are deposited and credited in the fund as provided in46.26section 353.27, determined as follows:46.27(1) one month of allowable service credit for each month46.28during which the employee has received salary for 80 or more46.29compensated hours; or46.30(2) a fraction of one month of allowable service for each46.31month for which the employee has received salary for less than46.3280 compensated hours equal to the percentage relationship that46.33the number of compensated hours bear to 80 hours.46.34(e) Elected officials and other public employees who are46.35compensated solely on an annual basis shall be granted a full46.36year of credit for each year for which compensation is earned.47.1(f) Allowable service that is determined and credited on a47.2fractional basis must be used only in calculating the amount of47.3benefits payable. In determining the length of service required47.4for vesting, a member shall be granted a month of service credit47.5for each month in which the member received compensation from47.6which employee contributions were deducted. For periods of47.7part-time service that are duplicated service credit, section47.8356.30, subdivision 1, paragraphs (g) and (h), govern.47.9(g)No membershallmay receive more than 12 months of 47.10 allowable service credit in a year either for vesting purposes 47.11 or for benefit calculation purposes. 47.12(h)(e) "Allowable service" also means a period purchased 47.13 under section 356.555. 47.14 Sec. 5. Minnesota Statutes 2000, section 353.01, is 47.15 amended by adding a subdivision to read: 47.16 Subd. 40. [REDUCED SALARY DURING PERIOD OF WORKERS' 47.17 COMPENSATION.] (a) A member who is receiving temporary workers' 47.18 compensation payments related to the member's service to the 47.19 public employer and who either is receiving a reduced salary 47.20 from the employer during that period or is receiving no salary 47.21 from the employer during that period is entitled to receive 47.22 allowable service and salary credit for the period of time that 47.23 the member is receiving the workers' compensation payments upon 47.24 making the payments specified in this subdivision. 47.25 (b) The differential salary amount is the difference 47.26 between the average rate of salary received by the member, if 47.27 any, during the period of time that the member is collecting 47.28 temporary workers' compensation payments and the average rate of 47.29 salary of the member on which contributions to the applicable 47.30 plan were made during the period of the last six months of 47.31 covered employment occurring immediately before beginning to 47.32 collect the temporary workers' compensation payments, applied to 47.33 the member's normal employment period, measured in hours or 47.34 otherwise, as applicable. 47.35 (c) To receive eligible service credit, the member shall 47.36 pay an amount equal to the applicable employee contribution rate 48.1 under section 353.27, subdivision 2; 353.65, subdivision 2; or 48.2 353E.03, subdivision 1, as applicable, multiplied by the 48.3 differential salary amount; plus an employer equivalent payment 48.4 equal to the applicable employer contribution rate in section 48.5 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, 48.6 subdivision 2, as applicable, multiplied by the differential 48.7 salary amount; plus, if applicable, an equivalent employer 48.8 additional amount equal to the additional employer contribution 48.9 rate in section 353.27, subdivision 3a, multiplied by the 48.10 differential salary amount. 48.11 (d) The employer may, by appropriate action of its 48.12 governing body and documented in its official records, pay the 48.13 employer equivalent contributions and, as applicable, the 48.14 equivalent employer additional contributions on behalf of the 48.15 member. 48.16 (e) Payment under this subdivision must include interest on 48.17 the contribution amount or amounts, whichever applies, at an 8.5 48.18 percent annual rate, prorated for applicable months from the 48.19 date on which the temporary workers' compensation payments 48.20 terminate to the date on which the payment or payments are 48.21 received by the executive director. Payment under this 48.22 subdivision must be completed within one year after the 48.23 termination of the temporary workers' compensation payments to 48.24 the member, or within 20 days after the termination of public 48.25 service by the employee under subdivision 11a, whichever is 48.26 earlier. 48.27 Sec. 6. Minnesota Statutes 2001 Supplement, section 48.28 353.27, subdivision 4, is amended to read: 48.29 Subd. 4. [EMPLOYER REPORTING REQUIREMENTS; CONTRIBUTIONS; 48.30 MEMBER STATUS.] (a) A representative authorized by the head of 48.31 each department shall deduct employee contributions from the 48.32 salary of each employee who qualifies for membership under this 48.33 chapter and remit payment in a manner prescribed by the 48.34 executive director for the aggregate amount of the employee 48.35 contributions, the employer contributions and the additional 48.36 employer contributions to be received within 14 calendar days. 49.1 The head of each department or the person's designee shall for 49.2 each pay period submit to the association a salary deduction 49.3 report in the format prescribed by the executive director. Data 49.4 required to be submitted as part of salary deduction reporting 49.5 must include, but are not limited to: 49.6 (1) the legal names and social security numbers of 49.7 employees who are members; 49.8 (2) the amount of each employee's salary deduction; 49.9 (3) the amount of salary from which each deduction was 49.10 made; 49.11 (4) the beginning and ending dates of the payroll period 49.12 covered and the date of actual payment; and 49.13 (5) adjustments or corrections covering past pay periods;49.14and49.15(6) the number of compensated hours of each employee during49.16the payroll period. 49.17 (b) Employers must furnish the data required for enrollment 49.18 for each new employee who qualifies for membership in the format 49.19 prescribed by the executive director. The required enrollment 49.20 data on new employees must be submitted to the association prior 49.21 to or concurrent with the submission of the initial employee 49.22 salary deduction. The employer shall also report to the 49.23 association all member employment status changes, such as leaves 49.24 of absence, terminations, and death, and shall report the 49.25 effective dates of those changes, on an ongoing basis for the 49.26 payroll cycle in which they occur. The employer shall furnish 49.27 data, forms, and reports as may be required by the executive 49.28 director for proper administration of the retirement system. 49.29 Before implementing new or different computerized reporting 49.30 requirements, the executive director shall give appropriate 49.31 advance notice to governmental subdivisions to allow time for 49.32 system modifications. 49.33 (c) Notwithstanding paragraph (a), the association may 49.34 provide for less frequent reporting and payments for small 49.35 employers. 49.36 Sec. 7. Minnesota Statutes 2001 Supplement, section 50.1 353.27, subdivision 11, is amended to read: 50.2 Subd. 11. [EMPLOYERS; REQUIRED TO FURNISH REQUESTED 50.3 INFORMATION.] All governmental subdivisions shall furnish 50.4 promptly such other information relative to the employment 50.5 status of all employees or former employees, including but not 50.6 limited to payroll abstracts pertaining to all past and present 50.7 employees, as may be requested by the association or its 50.8 executive director, including schedules of salaries applicable 50.9 to various categories of employment, and the number of actual or50.10estimated compensated hours for employees. In the event payroll 50.11 abstract records have been lost or destroyed, for whatever 50.12 reason or in whatever manner, so that such schedules of salaries 50.13 cannot be furnished therefrom, the employing governmental 50.14 subdivision, in lieu thereof, shall furnish to the association 50.15 an estimate of the earnings of any employee or former employee 50.16 for any period as may be requested by the association or its 50.17 executive director. Should the association receive such 50.18 schedules of estimated earnings, the executive director is 50.19 hereby authorized to use the same as a basis for making whatever 50.20 computations might be necessary for determining obligations of 50.21 the employee and employer to the retirement fund. If estimates 50.22 are not furnished by the employer pursuant to the request of the 50.23 association or its executive director, the association may 50.24 estimate the obligations of the employee and employer to the 50.25 retirement fund based upon such records as are in its 50.26 possession. Where payroll abstracts have been lost or 50.27 destroyed, the governmental agency need not furnish any 50.28 information pertaining to employment prior to July 1, 1963. The 50.29 association shall make no estimate of any obligation of any 50.30 employee, former employee, or employer covering employment prior 50.31 to July 1, 1963. 50.32 Sec. 8. Minnesota Statutes 2000, section 353.64, 50.33 subdivision 7a, is amended to read: 50.34 Subd. 7a. [PENSION COVERAGE FOR CERTAIN METROPOLITAN 50.35 TRANSIT POLICE OFFICERS.] A person who is employed as a 50.36full-timepolice officer on or after the first day of the first 51.1 payroll period after July 1, 1993, by the metropolitan council 51.2 and who is not eligible for coverage under the agreement with 51.3 the Secretary of the federal Department of Health and Human 51.4 Services making the provisions of the federal Old Age, 51.5 Survivors, and Disability Insurance Act because the person's 51.6 position is excluded from application under United States Code, 51.7 sections 418(d)(5)(A) and 418(d)(8)(D), and under section 51.8 355.07, is a member of the public employees police and fire fund 51.9 and is considered to be a police officer within the meaning of 51.10 this section. The metropolitan council shall deduct the 51.11 employee contribution from the salary of eachfull-timepolice 51.12 officer as required by section 353.65, subdivision 2, shall make 51.13 the employer contribution for eachfull-timepolice officer as 51.14 required by section 353.65, subdivision 3, and shall meet the 51.15 employer recording and reporting requirements in section 353.65, 51.16 subdivision 4. 51.17 Sec. 9. [REPEALER.] 51.18 Minnesota Statutes 2001 Supplement, section 353.01, 51.19 subdivision 39, is repealed. 51.20 Sec. 10. [APPLICATION.] 51.21 Section 8 applies in the counties of Anoka, Carver, Dakota, 51.22 Hennepin, Ramsey, Scott, and Washington. 51.23 Sec. 11. [EFFECTIVE DATE.] 51.24 (a) Except as provided in paragraphs (c) and (d), sections 51.25 1, 2, and 3 are effective on July 1, 2002. 51.26 (b) Sections 4, 6, 7, and 9 are effective retroactively 51.27 from January 1, 2002. 51.28 (c) The amendment to Minnesota Statutes, section 353.01, 51.29 subdivision 2b, clause (12), in section 2, is effective on the 51.30 day after the date on which the governing body of Hennepin 51.31 county and the chief clerical officer of the county complete in 51.32 a timely manner their compliance with Minnesota Statutes, 51.33 section 645.021, subdivisions 2 and 3. 51.34 (d) The amendments to Minnesota Statutes, section 353.01, 51.35 subdivision 2b, clauses (8) and (20), are effective 51.36 retroactively from January 1, 2002. 52.1 (e) Section 5 is effective on the day following final 52.2 enactment. 52.3 (f) Section 8 is effective July 1, 2002, and applies to 52.4 salaries earned by part-time metropolitan transit police 52.5 officers after June 30, 2002. 52.6 ARTICLE 4 52.7 PERA LOCAL GOVERNMENT CORRECTIONAL 52.8 RETIREMENT PLAN MODIFICATIONS 52.9 Section 1. Minnesota Statutes 2000, section 353E.02, 52.10 subdivision 1, is amended to read: 52.11 Subdivision 1. [RETIREMENT COVERAGE.]Local government52.12correctional service employees areThe members of the local 52.13 government correctional service retirement plan established by 52.14 this chapter are: 52.15 (1) local government correctional service employees as 52.16 defined in subdivision 2; and 52.17 (2) medical center protection officers as defined in 52.18 subdivision 2a. 52.19 Sec. 2. Minnesota Statutes 2000, section 353E.02, is 52.20 amended by adding a subdivision to read: 52.21 Subd. 2a. [MEDICAL CENTER PROTECTION OFFICER.] (a) A 52.22 medical center protection officer, for purposes of subdivision 52.23 1, is a person whom the employer certifies: 52.24 (1) is employed by the Hennepin county medical center as a 52.25 protection officer; 52.26 (2) is directly responsible for the direct security of the 52.27 medical center; 52.28 (3) is expected to respond to any incidents within the 52.29 medical center as part of the person's regular employment duties 52.30 and is trained to do so; and 52.31 (4) is a "public employee" as defined in section 353.01, 52.32 but is not a member of the public employees police and fire plan. 52.33 (b) The certification required under paragraph (a) must be 52.34 made in writing on a form prescribed by the executive director 52.35 of the public employees retirement association. 52.36 Sec. 3. Minnesota Statutes 2000, section 353E.03, is 53.1 amended to read: 53.2 353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.] 53.3 Subdivision 1. [MEMBER CONTRIBUTIONS.] A member of the 53.4 local government correctional serviceemployeeretirement plan 53.5 shall make an employee contribution in an amount equal to6.0153.6 5.83 percent of salary. 53.7 Subd. 2. [EMPLOYER CONTRIBUTIONS.] The employer shall 53.8 contribute for a member of the local government correctional 53.9 serviceemployeeretirement plan an amount equal to9.028.75 53.10 percent of salary. 53.11 Sec. 4. Laws 2000, chapter 461, article 10, section 3, as 53.12 amended by Laws 2001, First Special Session chapter 10, article 53.13 3, section 28, is amended to read: 53.14 Sec. 3. [EFFECTIVE DATE.] 53.15 Section 1 is effective on the day following final enactment. 53.16Section 2 is effective on the first day of the first full pay53.17period beginning after January 1, 2003.53.18 Sec. 5. [REPEALER.] 53.19 Laws 2000, chapter 461, article 10, section 2, is repealed. 53.20 Sec. 6. [EFFECTIVE DATE.] 53.21 (a) Sections 1, 2, and 3 are effective on July 1, 2002. 53.22 (b) Section 4 is effective on the day following final 53.23 enactment. 53.24 (c) Section 5 is effective on August 1, 2002. 53.25 ARTICLE 5 53.26 PENSION COVERAGE FOR 53.27 PRIVATIZED PUBLIC HOSPITALS 53.28 Section 1. Minnesota Statutes 2000, section 353F.02, 53.29 subdivision 4, is amended to read: 53.30 Subd. 4. [MEDICAL FACILITY.] "Medical facility" means: 53.31 (1) the Glencoe area health center; 53.32 (2) the Luverne public hospital;and53.33 (3) the Waconia-Ridgeview medical center.; and 53.34 (4) the Kanabec hospital. 53.35 Sec. 2. [EFFECTIVE DATE.] 53.36 Section 1 is effective upon the latter of: 54.1 (1) the day after the governing body of Kanabec county and 54.2 its chief clerical officer timely complete their compliance with 54.3 Minnesota Statutes, section 645.021, subdivisions 2 and 3; and 54.4 (2) the first day of the month next following certification 54.5 to the Kanabec county board by the executive director of the 54.6 public employees retirement association that the actuarial 54.7 accrued liability of the special benefit coverage proposed for 54.8 extension to the privatized Kanabec hospital employees under 54.9 section 1 does not exceed the actuarial gain otherwise to be 54.10 accrued by the public employees retirement association, as 54.11 calculated by the consulting actuary retained by the legislative 54.12 commission on pensions and retirement. The cost of the 54.13 actuarial calculations must be borne by the Kanabec hospital. 54.14 ARTICLE 6 54.15 CLOSED CHARTER SCHOOL 54.16 UNPAID RETIREMENT CONTRIBUTIONS 54.17 Section 1. Minnesota Statutes 2001 Supplement, section 54.18 354.05, subdivision 2, is amended to read: 54.19 Subd. 2. [TEACHER.] (a) "Teacher" means: 54.20 (1) a person who renders service as a teacher, supervisor, 54.21 principal, superintendent, librarian, nurse, counselor, social 54.22 worker, therapist, or psychologist inthea publicschools54.23 school of the state located outside of the corporate limits of 54.24the citiesa city of the first class, or in any charter school, 54.25 irrespective of the location of the school, or in any 54.26 charitable, penal, or correctional institutions of a 54.27 governmental subdivision, or who is engaged in educational 54.28 administration in connection with the state public school 54.29 system, but excluding the University of Minnesota, whether the 54.30 position be a public office or an employment, not including 54.31 members or officers of any general governing or managing board 54.32 or body; 54.33 (2) an employee of the teachers retirement association; 54.34 (3) a person who renders teaching service on a part-time 54.35 basis and who also renders other services for a single employing 54.36 unit. A person whose teaching service comprises at least 50 55.1 percent of the combined employment salary is a member of the 55.2 association for all services with the single employing unit. If 55.3 the person's teaching service comprises less than 50 percent of 55.4 the combined employment salary, the executive director must 55.5 determine whether all or none of the combined service is covered 55.6 by the association; or 55.7 (4) a person who is not covered by the plans established 55.8 under chapter 352D, 354A, or 354B and who is employed by the 55.9 board of trustees of the Minnesota state colleges and 55.10 universities system in an unclassified position as: 55.11 (i) a president, vice-president, or dean; 55.12 (ii) a manager or a professional in an academic or an 55.13 academic support program other than specified in item (i); 55.14 (iii) an administrative or a service support faculty 55.15 position; or 55.16 (iv) a teacher or a research assistant. 55.17 (b)Teacher"Teacher" does not mean: 55.18 (1) a person who works for a school or institution as an 55.19 independent contractor as defined by the Internal Revenue 55.20 Service; 55.21 (2) a person employed in subsidized on-the-job training, 55.22 work experience or public service employment as an enrollee 55.23 under the federal Comprehensive Employment and Training Act from 55.24 and after March 30, 1978, unless the person has, as of the later 55.25 of March 30, 1978, or the date of employment, sufficient service 55.26 credit in the retirement association to meet the minimum vesting 55.27 requirements for a deferred retirement annuity, or the employer 55.28 agrees in writing on forms prescribed by the executive director 55.29 to make the required employer contributions, including any 55.30 employer additional contributions, on account of that person 55.31 from revenue sources other than funds provided under the federal 55.32 Comprehensive Training and Employment Act, or the person agrees 55.33 in writing on forms prescribed by the executive director to make 55.34 the required employer contribution in addition to the required 55.35 employee contribution; 55.36 (3) a person holding a part-time adult supplementary 56.1 technical college license who renders part-time teaching service 56.2 or a customized trainer as defined by the Minnesota state 56.3 colleges and universities system in a technical college if (i) 56.4 the service is incidental to the regular nonteaching occupation 56.5 of the person; and (ii) the applicable technical college 56.6 stipulates annually in advance that the part-time teaching 56.7 service or customized training service will not exceed 300 hours 56.8 in a fiscal year and retains the stipulation in its records; and 56.9 (iii) the part-time teaching service or customized training 56.10 service actually does not exceed 300 hours in a fiscal year; or 56.11 (4) a person exempt from licensure under section 122A.30. 56.12 Sec. 2. Minnesota Statutes 2000, section 354A.011, 56.13 subdivision 27, is amended to read: 56.14 Subd. 27. [TEACHER.] (a) "Teacher" means any person who 56.15 renders serviceinfor a public school district, other than a 56.16 charter school, located in the corporate limits of one of the 56.17 cities of the first class which was so classified on January 1, 56.18 1979, as any of the following: 56.19(a)(1) a full-time employee in a position for which a 56.20 valid license from the state department of children, families, 56.21 and learning is required; 56.22(b)(2) an employee of the teachers retirement fund 56.23 association located in the city of the first class unless the 56.24 employee has exercised the option pursuant to Laws 1955, chapter 56.25 10, section 1, to retain membership in the Minneapolis employees 56.26 retirement fund established pursuant to chapter 422A; 56.27(c)(3) a part-time employee in a position for which a 56.28 valid license from the state department of children, families, 56.29 and learning is required; or 56.30(d)(4) a part-time employee in a position for which a 56.31 valid license from the state department of children, families, 56.32 and learning is required who also renders other nonteaching 56.33 services for the school district, unless the board of trustees 56.34 of the teachers retirement fund association determines that the 56.35 combined employment is on the whole so substantially dissimilar 56.36 to teaching service that the serviceshallmay not be covered by 57.1 the association. 57.2 (b) The termshalldoes not mean any person who renders 57.3 service in the school district as any of the following: 57.4 (1) an independent contractor or the employee of an 57.5 independent contractor; 57.6 (2) an employee who is a full-time teacher covered by the 57.7 teachers retirement association or by another teachers 57.8 retirement fund association established pursuant to this chapter 57.9 or chapter 354; 57.10 (3) an employee exempt from licensure pursuant to section 57.11 122A.30; 57.12 (4) an employee who is a teacher in a technical college 57.13 located in a city of the first class unless the person elects 57.14 coverage by the applicable first class city teacher retirement 57.15 fund association under section 354B.21, subdivision 2;or57.16 (5) a teacher employed by a charter school, irrespective of 57.17 the location of the school; or 57.18 (6) an employee who is a part-time teacher in a technical 57.19 college in a city of the first class and who has elected 57.20 coverage by the applicable first class city teacher retirement 57.21 fund association under section 354B.21, subdivision 2, but (i) 57.22 the teaching service is incidental to the regular nonteaching 57.23 occupation of the person; (ii) the applicable technical college 57.24 stipulates annually in advance that the part-time teaching 57.25 service will not exceed 300 hours in a fiscal year; and (iii) 57.26 the part-time teaching actually does not exceed 300 hours in the 57.27 fiscal year to which the certification applies. 57.28 Sec. 3. Minnesota Statutes 2000, section 354A.12, 57.29 subdivision 3d, is amended to read: 57.30 Subd. 3d. [SUPPLEMENTAL ADMINISTRATIVE EXPENSE 57.31 ASSESSMENT.] (a) The active and retired membership of the 57.32 Minneapolis teachers retirement fund association and of the St. 57.33 Paul teachers retirement fund association is responsible for 57.34 defraying supplemental administrative expenses other than 57.35 investment expenses of the respective teacher retirement fund 57.36 association. 58.1 (b) Investment expenses of the teachers retirement fund 58.2 association are those expenses incurred by or on behalf of the 58.3 retirement fund in connection with the investment of the assets 58.4 of the retirement fund other than investment security 58.5 transaction costs. Other administrative expenses are all 58.6 expenses incurred by or on behalf of the retirement fund for all 58.7 other retirement fund functions other than the investment of 58.8 retirement fund assets. Investment and other administrative 58.9 expenses must be accounted for using generally accepted 58.10 accounting principles and in a manner consistent with the 58.11 comprehensive annual financial report of the teachers retirement 58.12 fund association for the immediately previous fiscal year under 58.13 section 356.20. 58.14 (c) Supplemental administrative expenses other than 58.15 investment expenses of a first class city teacher retirement 58.16 fund association are those expenses for the fiscal year that: 58.17 (1) exceed, for the St. Paul teachers retirement fund 58.18 association $443,745, or for the Minneapolis teacher retirement 58.19 fund association $671,513, plus, in each case, an additional 58.20 amount derived by applying the percentage increase in the 58.21 consumer price index for urban wage earners and clerical workers 58.22 all items index published by the Bureau of Labor Statistics of 58.23 the United States Department of Labor since July 1, 2001, to the 58.24 applicable dollar amount; and 58.25 (2) exceed the amount computed by applying the most recent 58.26 percentage of pay administrative expense amount, other than 58.27 investment expenses, for the teachers retirement association 58.28 governed by chapter 354 to the covered payroll of the respective 58.29 teachers retirement fund association for the fiscal year. 58.30 (d) The board of trustees of each first class city teachers 58.31 retirement fund association shall allocate the total dollar 58.32 amount of supplemental administrative expenses other than 58.33 investment expenses determined under paragraph (c), clause (2), 58.34 among the various active and retired membership groups of the 58.35 teachers retirement fund association and shall assess the 58.36 various membership groups their respective share of the 59.1 supplemental administrative expenses other than investment 59.2 expenses, in amounts determined by the board of trustees. The 59.3 supplemental administrative expense assessments must be paid by 59.4 the membership group in a manner determined by the board of 59.5 trustees of the respective teachers retirement association. 59.6 Supplemental administrative expenses payable by the active 59.7 members of the pension plan must be picked up by the employer in 59.8 accordance with section 356.62. 59.9 (e) With respect to the St. Paul teachers retirement fund 59.10 association, the supplemental administrative expense assessment 59.11 must be fully disclosed to the various active and retired 59.12 membership groups of the teachers retirement fund association. 59.13 The chief administrative officer of the St. Paul teachers 59.14 retirement fund association shall prepare a supplemental 59.15 administrative expense assessment disclosure notice, which must 59.16 include the following: 59.17 (1) the total amount of administrative expenses of the St. 59.18 Paul teachers retirement fund association, the amount of the 59.19 investment expenses of the St. Paul teachers retirement fund 59.20 association, and the net remaining amount of administrative 59.21 expenses of the St. Paul teachers retirement fund association; 59.22 (2) the amount of administrative expenses for the St. Paul 59.23 teachers retirement fund association that would be equivalent to 59.24 the teachers retirement association noninvestment administrative 59.25 expense level described in paragraph (c); 59.26 (3) the total amount of supplemental administrative 59.27 expenses required for assessment calculated under paragraph (c); 59.28 (4) the portion of the total amount of the supplemental 59.29 administrative expense assessment allocated to each membership 59.30 group and the rationale for that allocation; 59.31 (5) the manner of collecting the supplemental 59.32 administrative expense assessment from each membership group, 59.33 the number of assessment payments required during the year, and 59.34 the amount of each payment or the procedure used to determine 59.35 each payment; and 59.36 (6) any other information that the chief administrative 60.1 officer determines is necessary to fairly portray the manner in 60.2 which the supplemental administrative expense assessment was 60.3 determined and allocated. 60.4 (f) The disclosure notice must be provided annually in the 60.5 annual report of the association. 60.6 (g) The supplemental administrative expense assessments 60.7 must be deposited in the applicable teachers retirement fund 60.8 upon receipt. 60.9 (h) Any omitted active membership group assessments that 60.10 remain undeducted and unpaid to the teachers retirement fund 60.11 association for 90 days must be paid by the respective school 60.12 district. The school district may recover any omitted active 60.13 membership group assessment amounts that it has previously 60.14 paid. The teachers retirement fund association shall deduct any 60.15 omitted retired membership group assessment amounts from the 60.16 benefits next payable after the discovery of the omitted amounts. 60.17 Sec. 4. [STATE PAYMENT OF CERTAIN UNPAID CHARTER SCHOOL 60.18 RETIREMENT CONTRIBUTIONS.] 60.19 Subdivision 1. [UNPAID CONTRIBUTIONS.] (a) The state of 60.20 Minnesota shall make any unpaid employee, employer, and employer 60.21 additional contributions to the applicable retirement 60.22 association for teaching or other service in a designated 60.23 charter school which closed before April 1, 2002, without having 60.24 paid the required contributions to the retirement association. 60.25 (b) By June 1, 2002, the chief administrative officer of 60.26 the retirement association shall certify to the commissioner of 60.27 children, families, and learning the amount of accrued 60.28 contributions, plus applicable interest, which were not paid by 60.29 each designated charter school before its closure. On July 1, 60.30 2002, the commissioner of children, families, and learning shall 60.31 pay the amounts certified from the state total building lease 60.32 aid otherwise payable under Minnesota Statutes, section 124D.11, 60.33 subdivision 4a, to the affected retirement associations. The 60.34 forecasted amount of charter school lease aid must not be 60.35 adjusted to reflect the amount remitted under this section. 60.36 Rather, charter school lease aid must be prorated by the amount 61.1 remitted. The commissioner shall remit directly to the 61.2 retirement association the amounts certified under this 61.3 section. The applicable retirement association shall credit 61.4 employee contribution payments to the applicable member accounts 61.5 and shall credit to the applicable members allowable and formula 61.6 service and covered salary for the period when the teaching or 61.7 other service was actually performed in the charter school. 61.8 State payments representing unpaid employee contributions must 61.9 be considered accumulated employee or member deductions for 61.10 purposes of Minnesota Statutes, section 353.34; 354.49; or 61.11 354A.37. 61.12 Subd. 2. [COVERED RETIREMENT ASSOCIATIONS.] This section 61.13 applies to the following public retirement associations 61.14 providing retirement coverage for employees in charter schools: 61.15 (1) the teachers retirement association; 61.16 (2) the Minneapolis teachers retirement fund association; 61.17 (3) the St. Paul teachers retirement fund association; 61.18 (4) the Duluth teachers retirement fund association; and 61.19 (5) the public employees retirement association. 61.20 Subd. 3. [DESIGNATED CLOSED CHARTER SCHOOLS.] This section 61.21 applies to the Frederick Douglass charter school and any other 61.22 charter school that is determined by the commissioner of 61.23 children, families, and learning to have closed before April 1, 61.24 2002. 61.25 Sec. 5. [CONTINUING RECOVERY AUTHORITY.] 61.26 Nothing in section 4 relieves the sponsor of a closed 61.27 charter school and the operator of a closed charter school from 61.28 any financial responsibility that those parties may have to pay 61.29 unpaid employee, employer, or employer additional contributions 61.30 to the applicable public retirement plans. The commissioner of 61.31 revenue shall undertake all reasonable efforts to recover these 61.32 amounts. Any recovered amounts must be deposited in the general 61.33 fund and are appropriated to the department of children, 61.34 families, and learning to offset the payment of unpaid 61.35 contributions under section 4. 61.36 Sec. 6. [EFFECTIVE DATE.] 62.1 (a) Sections 1 and 2 are effective on July 1, 2002. 62.2 (b) Sections 4 and 5 are effective on the day following 62.3 final enactment. 62.4 ARTICLE 7 62.5 TEACHER RETIREMENT PLANS 62.6 SERVICE CREDIT PURCHASE 62.7 DEADLINE EXTENSION 62.8 Section 1. Laws 1999, chapter 222, article 16, section 16, 62.9 is amended to read: 62.10 Sec. 16. [REPEALER.] 62.11 Sections 1 to 13 are repealed on May 16,20022003. 62.12 Sec. 2. Laws 2000, chapter 461, article 12, section 20, is 62.13 amended to read: 62.14 Sec. 20. [EFFECTIVE DATE.] 62.15 (a) Sections 4, 5, and 11 to 20 are effective on the day 62.16 following final enactment. 62.17 (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 62.18 following final enactment and apply retroactively to a faculty 62.19 member of the Lake Superior College who was granted an extended 62.20 leave of absence under article 19, section 4, of the united 62.21 technical college educators master agreement for the 1999-2000 62.22 academic year prior to March 20, 2000. 62.23 (c) Sections 5, 11, and 14, paragraph (c), expire on May 62.24 16,20022003. 62.25 Sec. 3. Laws 2001, First Special Session chapter 10, 62.26 article 6, section 21, is amended to read: 62.27 Sec. 21. [EXPIRATION DATE.] 62.28 (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 62.29 18, 19, and 20 expire May 16, 2003. 62.30 (b) Sections 9 and 15 expire May 16,20022003. 62.31 Sec. 4. [EFFECTIVE DATE.] 62.32 Sections 1 to 3 are effective on the day following final 62.33 enactment. 62.34 ARTICLE 8 62.35 RECODIFICATION OF SOCIAL 62.36 SECURITY COVERAGE PROVISIONS 63.1 Section 1. Minnesota Statutes 2000, section 355.01, 63.2 subdivision 1, is amended to read: 63.3 Subdivision 1. [IN GENERAL.] For the purposes of this 63.4 chapter,as amended,each of the terms defined in this section 63.5havehas themeaningsmeaning ascribed to them herein. 63.6 Sec. 2. Minnesota Statutes 2000, section 355.01, is 63.7 amended by adding a subdivision to read: 63.8 Subd. 2a. [CONSTITUTIONAL OFFICER.] "Constitutional 63.9 officer" means a person who serves as the governor, lieutenant 63.10 governor, attorney general, secretary of state, state auditor, 63.11 or state treasurer, who is duly elected and who was sworn into 63.12 office. 63.13 Sec. 3. Minnesota Statutes 2000, section 355.01, is 63.14 amended by adding a subdivision to read: 63.15 Subd. 2b. [DIRECTOR.] "Director" means the executive 63.16 director of the public employees retirement association. 63.17 Sec. 4. Minnesota Statutes 2000, section 355.01, is 63.18 amended by adding a subdivision to read: 63.19 Subd. 2c. [DULUTH TEACHER.] "Duluth teacher" means a 63.20 person employed by independent school district No. 709, Duluth, 63.21 who holds a position covered by the Duluth teachers retirement 63.22 fund association established under chapter 354A. 63.23 Sec. 5. Minnesota Statutes 2000, section 355.01, is 63.24 amended by adding a subdivision to read: 63.25 Subd. 2d. [EDUCATIONAL EMPLOYEE.] "Educational employee" 63.26 means an employee of the state of Minnesota or of a public 63.27 subdivision of the state who performs services in a position 63.28 covered by the teachers retirement association under chapter 354. 63.29 Sec. 6. Minnesota Statutes 2000, section 355.01, is 63.30 amended by adding a subdivision to read: 63.31 Subd. 2e. [EMPLOYEE.] "Employee" means a person employed 63.32 by the state of Minnesota or by a political subdivision of the 63.33 state and includes an officer of the state of Minnesota or of a 63.34 political subdivision of the state. 63.35 Sec. 7. Minnesota Statutes 2000, section 355.01, is 63.36 amended by adding a subdivision to read: 64.1 Subd. 2f. [EMPLOYEE TAX.] "Employee tax" means the tax 64.2 imposed by section 3101 of the Internal Revenue Code of 1986. 64.3 Sec. 8. Minnesota Statutes 2000, section 355.01, 64.4 subdivision 3, is amended to read: 64.5 Subd. 3. [EMPLOYMENT.]The term(a) "Employment" means any 64.6 service performed by an employee in the employ of the state, or 64.7 any political subdivision thereof, forsuchthat employer, 64.8 except: 64.9 (1) service which in the absence of an agreement entered 64.10 into under this chapter, as amended, would constitute 64.11 "employment" as defined in the Social Security act; or 64.12 (2) service which under the Social Security Actmayis not 64.13 permitted to be included in an agreement between the state and 64.14 the federal Secretary of Health, Education,andWelfareHuman 64.15 Services entered into under this chapter, as amended. 64.16 (b) Service which under the Social Security Actmayis 64.17 permitted to be included in an agreement only upon certification 64.18 by the governor in accordance with section 218(d) (3) of that 64.19 actshallmust be included in the term "employment" if and when 64.20 the governor issues, with respect tosuchthat service,athe 64.21 appropriate federal certificate to the federal Secretary of 64.22 Health, Education,andWelfareHuman Services. 64.23 Sec. 9. Minnesota Statutes 2000, section 355.01, is 64.24 amended by adding a subdivision to read: 64.25 Subd. 3a. [FEDERAL INSURANCE CONTRIBUTIONS ACT.] "Federal 64.26 Insurance Contributions Act" means subchapters A and B of 64.27 chapter 21 of the Internal Revenue Code of 1986, as amended 64.28 through December 31, 2000. 64.29 Sec. 10. Minnesota Statutes 2000, section 355.01, is 64.30 amended by adding a subdivision to read: 64.31 Subd. 3b. [GOVERNMENTAL EMPLOYER.] "Governmental employer" 64.32 means any political subdivision as defined in section 218 of the 64.33 Social Security Act. The term includes a city, county, town, 64.34 hospital district, or other body, politic and corporate, located 64.35 in Minnesota. 64.36 Sec. 11. Minnesota Statutes 2000, section 355.01, is 65.1 amended by adding a subdivision to read: 65.2 Subd. 3c. [HIGHER EDUCATION EMPLOYEE.] "Higher education 65.3 employee" means an employee of the state of Minnesota who 65.4 performs services in a Minnesota state colleges and universities 65.5 system in a position covered by the individual retirement 65.6 account plan under section 354B.21 and who remains a member of 65.7 the teachers retirement association for purposes of social 65.8 security coverage only. 65.9 Sec. 12. Minnesota Statutes 2000, section 355.01, is 65.10 amended by adding a subdivision to read: 65.11 Subd. 3d. [HOSPITAL EMPLOYEE.] "Hospital employee" means 65.12 an officer or employee of a public hospital who performs 65.13 services in a position covered by the public employees 65.14 retirement association under chapter 353. 65.15 Sec. 13. Minnesota Statutes 2000, section 355.01, is 65.16 amended by adding a subdivision to read: 65.17 Subd. 3e. [JUDGE.] "Judge" means a judge as defined in 65.18 section 490.121, subdivision 3. 65.19 Sec. 14. Minnesota Statutes 2000, section 355.01, is 65.20 amended by adding a subdivision to read: 65.21 Subd. 3f. [LEGISLATOR.] "Legislator" means a member of the 65.22 legislature who is duly elected and who was sworn into office. 65.23 Sec. 15. Minnesota Statutes 2000, section 355.01, is 65.24 amended by adding a subdivision to read: 65.25 Subd. 3g. [LOCAL GOVERNMENTAL SUBDIVISION.] "Local 65.26 governmental subdivision" means: 65.27 (1) a political subdivision as defined in section 218(b) of 65.28 the Social Security Act; 65.29 (2) an instrumentality of the state; 65.30 (3) an instrumentality of one or more of the political 65.31 subdivisions of the state, including the league of Minnesota 65.32 cities; 65.33 (4) an instrumentality of the state and one or more of its 65.34 political subdivisions; 65.35 (5) a governmental subdivision as defined in section 65.36 353.01, subdivision 6; and 66.1 (6) any instrumentality established under a joint powers 66.2 agreement under section 471.59 wherein the instrumentality is 66.3 responsible for the employment and the payment of the salaries 66.4 of the employees of the instrumentality. 66.5 Sec. 16. Minnesota Statutes 2000, section 355.01, is 66.6 amended by adding a subdivision to read: 66.7 Subd. 3h. [MINNEAPOLIS TEACHER.] "Minneapolis teacher" 66.8 means a person employed by special school district No. 1, 66.9 Minneapolis, who holds a position covered by the Minneapolis 66.10 teachers retirement fund association established under chapter 66.11 354A. 66.12 Sec. 17. Minnesota Statutes 2000, section 355.01, is 66.13 amended by adding a subdivision to read: 66.14 Subd. 3i. [POLITICAL SUBDIVISION.] "Political subdivision" 66.15 means any political subdivision as defined in section 218(b) of 66.16 the Social Security Act, and includes any instrumentality of the 66.17 state, any instrumentality of one or more of its political 66.18 subdivisions, including the league of Minnesota municipalities, 66.19 any instrumentality of the state and one or more of its 66.20 political subdivisions, and an instrumentality established under 66.21 a joint powers agreement under section 471.59, wherein the 66.22 instrumentality is responsible for the employment and payment of 66.23 the salaries of employees of the instrumentality. 66.24 Sec. 18. Minnesota Statutes 2000, section 355.01, is 66.25 amended by adding a subdivision to read: 66.26 Subd. 3j. [PUBLIC EMPLOYEE.] "Public employee" means an 66.27 officer or an employee of a local governmental subdivision of 66.28 the state who performs services in a position covered by the 66.29 public employees retirement association established under 66.30 chapter 353. 66.31 Sec. 19. Minnesota Statutes 2000, section 355.01, is 66.32 amended by adding a subdivision to read: 66.33 Subd. 3k. [PUBLIC HOSPITAL.] "Public hospital" means a 66.34 hospital that is owned or operated by a governmental employer or 66.35 a combination of governmental employers, or a hospital that is 66.36 an integral part of a governmental employer or of a combination 67.1 of governmental employers. 67.2 Sec. 20. Minnesota Statutes 2000, section 355.01, is 67.3 amended by adding a subdivision to read: 67.4 Subd. 3l. [ST. PAUL TEACHER.] "St. Paul teacher" means a 67.5 person employed by independent school district No. 625, St. 67.6 Paul, who holds a position covered by the St. Paul teachers 67.7 retirement fund association established under chapter 354A. 67.8 Sec. 21. Minnesota Statutes 2000, section 355.01, 67.9 subdivision 6, is amended to read: 67.10 Subd. 6. [SECRETARY OF HEALTH AND HUMAN SERVICES.]The67.11term"Secretary of Health, Education,andWelfareHuman Services" 67.12 means the secretary of the federal Department of Health and 67.13 Human Services and includes any individual to whom the Secretary 67.14 of Health, Education,andWelfareHuman Services has delegated 67.15anyfunctions under the Social Security Act with respect to 67.16 coverageunder such actof employees of states and their 67.17 political subdivisions. 67.18 Sec. 22. Minnesota Statutes 2000, section 355.01, 67.19 subdivision 8, is amended to read: 67.20 Subd. 8. [SOCIAL SECURITY ACT.]The term"Social Security 67.21 Act" means the Act of Congress approved August 14, 1935, chapter 67.22 531, Statutes at Large, volume 49, page 620, officially cited as 67.23 the "Social Security Act," assuch act has been and may from67.24time to time beamended (including the relevant regulations and 67.25 requirementsissued pursuant thereto). 67.26 Sec. 23. Minnesota Statutes 2000, section 355.01, is 67.27 amended by adding a subdivision to read: 67.28 Subd. 11. [SPECIAL AUTHORITY OR DISTRICT.] "Special 67.29 authority or district" means a municipal housing and 67.30 redevelopment authority organized under sections 469.001 to 67.31 469.047, a soil and water conservation district organized under 67.32 chapter 103C, a port authority organized under sections 469.048 67.33 to 469.068, an economic development authority organized under 67.34 sections 469.090 to 469.108, or a hospital district organized or 67.35 reorganized under sections 447.31 to 447.37. 67.36 Sec. 24. Minnesota Statutes 2000, section 355.01, is 68.1 amended by adding a subdivision to read: 68.2 Subd. 12. [SPECIAL AUTHORITY OR DISTRICT 68.3 EMPLOYEE.] "Special authority or district employee" means an 68.4 employee, other than an elected official, of a municipal housing 68.5 and redevelopment authority organized under sections 469.001 to 68.6 469.047, of a soil and water conservation district organized 68.7 under chapter 103C, of a port authority organized under sections 68.8 469.048 to 469.068, of an economic development authority 68.9 organized under sections 469.090 to 469.108, or of a hospital 68.10 district organized or reorganized under sections 447.31 to 68.11 447.37. 68.12 Sec. 25. Minnesota Statutes 2000, section 355.01, is 68.13 amended by adding a subdivision to read: 68.14 Subd. 13. [STATE EMPLOYEE.] "State employee" means an 68.15 employee of the state of Minnesota or of a political subdivision 68.16 who performs services in a position covered by the general state 68.17 employees retirement plan of the Minnesota state retirement 68.18 system governed by chapter 352, except any position for which 68.19 the compensation is on a fee basis. 68.20 Sec. 26. Minnesota Statutes 2000, section 355.01, is 68.21 amended by adding a subdivision to read: 68.22 Subd. 14. [WAGES.] "Wages" means all remuneration for 68.23 employment, including the cash value of all remuneration paid in 68.24 any medium other than cash. The term does not include that part 68.25 of the remuneration which, even if it were for employment within 68.26 the meaning of the Federal Insurance Contributions Act, would 68.27 not constitute wages within the meaning of that act. 68.28 Sec. 27. Minnesota Statutes 2000, section 355.02, is 68.29 amended to read: 68.30 355.02 [AGREEMENTS.] 68.31 Subdivision 1. [GENERAL AUTHORITY.] (a) Thestate agency68.32 director, with the approval of the governor, is hereby 68.33 authorized to enter into an agreement on behalf of the state 68.34 with the federal Secretary of Health, Education,andWelfare68.35 Human Services, consistent with the terms and provisions of this 68.36 chapter, as amended, for the purpose of extending the benefits 69.1 of the federal old ageand, survivors, and disability insurance 69.2 system to employees of the state or any political subdivision 69.3 thereof with respect to services specified insuchthe agreement 69.4 which constitute "employment," whenever so specifically 69.5 authorized by the statutory provisions of this state pertaining 69.6 to any coverage group of such employees to which the agreement 69.7 may become applicable under the Social Security Act. 69.8Pursuant to such(b) Under this specific authorization the 69.9 agreement may containsuchthose provisions relating to 69.10 coverage, benefits, contributions, effective date, modification 69.11 and termination of the agreement, administration, and other 69.12 appropriate provisions as thestate agencydirector and the 69.13 federal Secretary of Health, Education,andWelfareHuman 69.14 Services shall agree upon, but, except as may be otherwise 69.15 required by or under the Social Security Act as to the services 69.16 to be covered, such agreementshallmust provide in effect that: 69.17 (1) benefits will be provided for employees whose services 69.18 are covered by the agreement (and their dependents and 69.19 survivors) on the same basis as thoughsuchthose services 69.20 constituted employment within the meaning of title II of the 69.21 Social Security Act; 69.22 (2) the state or other employer will pay to the federal 69.23 Secretary of the Treasury, at such time or times as may be 69.24 prescribed under the Social Security Act, contributions with 69.25 respect to wages, equal to the sum of the taxes which would be 69.26 imposed by the Federal Insurance Contributions Act if the 69.27 services covered by the agreement constituted employment within 69.28 the meaning of that act; 69.29 (3)Suchthe agreementshall beis effective with respect 69.30 to services in employment covered by the agreement performed 69.31 after a date specified thereinbut in no event may it be69.32effective with respect to any such services performed prior to69.33the first day of the calendar year in which such agreement is69.34entered into or in which the modification of the agreement69.35making it applicable to such services, is entered into except69.36that an agreement or modification entered into prior to January70.11, 1960, may be effective with respect to services performed70.2after December 31, 1955, or after a later date specified in such70.3agreement or modification; and 70.4 (4) all services which constitute employment and are 70.5 performed in the employ of the state or any of its political 70.6 subdivisions by employees thereof, may be covered bysuchthe 70.7 agreement whenever so specifically authorized by the statutory 70.8 provisions of this state pertaining to any coverage group of 70.9 such employees to which the agreement may become applicable 70.10 under the Social Security Act. 70.11 Subd. 2. [INTERSTATE INSTRUMENTALITY.] (a) Any 70.12 instrumentality jointly created by this state and any other 70.13 state or states isherebyauthorized, upon the granting of like 70.14 authority bysuchthe other state or states, to: 70.15 (1)toenter into an agreement with the federal Secretary 70.16 of Health, Education,andWelfareHuman Services whereby the 70.17 benefits of the federal old ageand, survivors, and disability 70.18 insurance systemshall beare extended to employees ofsuchthe 70.19 instrumentality,; 70.20 (2)torequire its employees to pay (and for that purpose 70.21 to deduct from their wages) contributions equal to the amounts 70.22 which they would be required to pay under section 355.03, 70.23 subdivision 1, if they were covered by an agreement made 70.24pursuant tounder subdivision 1,; and 70.25 (3)tomake payments to the federal Secretary of the 70.26 Treasury in accordance withsuchthat agreement, including 70.27 payments from its own funds, and otherwise to comply withsuch70.28 those agreements.Such70.29 (b) The agreementsshallmust, to the extent practicable, 70.30 be consistent with the terms and provisions of subdivision 1 and 70.31 other provisions of this chapter, as amended. 70.32 Subd. 3. [GROUPS COVERED BY SOCIAL SECURITY.] The 70.33 following groups must be covered by an agreement or a 70.34 modification to an agreement between the state agency and the 70.35 federal Secretary of Health and Human Services: 70.36 (1) constitutional officers; 71.1 (2) Duluth teachers; 71.2 (3) educational employees; 71.3 (4) higher education employees; 71.4 (5) hospital employees; 71.5 (6) judges; 71.6 (7) legislators; 71.7 (8) Minneapolis teachers; 71.8 (9) public employees; 71.9 (10) St. Paul teachers; 71.10 (11) special authority or district employees; and 71.11 (12) state employees. 71.12 Sec. 28. Minnesota Statutes 2000, section 355.03, is 71.13 amended to read: 71.14 355.03 [EMPLOYEES AND EMPLOYERS, CONTRIBUTIONS.] 71.15 Subdivision 1. [EMPLOYEE CONTRIBUTION AMOUNT.] Every 71.16 employee of the state, or of any of its political subdivisions, 71.17 whose services are covered by the agreement entered into under 71.18 section 355.02shall be required tomust pay for the period 71.19 ofsuchthe coverage,into the contribution fund established by71.20section 355.04,contributions,with respect to wages, equal to 71.21 the amount of the employee's tax which would be imposed by the 71.22 Federal Insurance Contributions Act ifsuchthose services 71.23 constituted employment within the meaning of that act. 71.24SuchThis liabilityshall arisearises in consideration of the 71.25 employee's retention in the service of the state, or any of its 71.26 political subdivisions, or the employee's entry uponsuchthat 71.27 service, after the enactment of this chapter, as amended. 71.28 Subd. 2. [EMPLOYEE DEDUCTION.] The contribution imposed by 71.29 this sectionshallmust be collected by the covered employee's 71.30 employer by deducting the amount of the contribution from wages 71.31 as and when paid, but. The failure to make such deductionshall71.32 does not relieve the employee from liability for such 71.33 contribution. 71.34 Subd. 2a. [EMPLOYER CONTRIBUTION.] (a) Employer 71.35 contributions that are required under the agreement must be paid 71.36 by the applicable employing unit. 72.1 (b) Employer contributions on behalf of St. Paul teachers, 72.2 Duluth teachers, Minneapolis teachers, or education employees 72.3 may be paid from normal school operating funds. Employer 72.4 contributions on behalf of state employees must be paid by the 72.5 applicable department or agency from its appropriation or other 72.6 revenue, in the same proportion as salaries are paid, and must 72.7 be charged as an administrative cost of the state governmental 72.8 unit. 72.9 (c) Employing units may pay the employer contribution from 72.10 taxes collected or from other governmental revenue. An 72.11 employing unit may include in its tax levy the amount necessary 72.12 to pay its social security obligations. If the taxes authorized 72.13 to be levied cause the total levy amount to exceed any 72.14 limitation on the power of the employing unit to levy taxes, the 72.15 unit may still levy the necessary amount. The employing unit, 72.16 in the event of a deficit, may issue debt obligations, payable 72.17 in not more than two years, in an amount which may cause its 72.18 indebtedness to exceed any limitation without holding an 72.19 election and may levy taxes to amortize the indebtedness. The 72.20 authorized social security expenditures must not be included in 72.21 computing the cost of government for purposes of any home rule 72.22 charter or other charter. 72.23 (d) If the required employer contribution for social 72.24 security is increased and, as a result of that increase, there 72.25 is insufficient money available to a state governmental unit, 72.26 there is appropriated to the state department or agency from the 72.27 general fund the amount required to meet the deficiency, based 72.28 on certifications from the director to the commissioner of 72.29 finance. The transfer of the appropriated amount may only occur 72.30 after the commissioner of finance notifies the chair and ranking 72.31 minority member of the house committee on ways and means and the 72.32 chair and ranking minority member of the senate finance 72.33 committee of the amount to be transferred. 72.34 (e) For members of the general state employees retirement 72.35 plan of the Minnesota state retirement system who are employed 72.36 by the state horticultural society, the department of Minnesota 73.1 for the disabled American veterans organization, the department 73.2 of Minnesota of the veterans of foreign wars organization, the 73.3 Minnesota crop improvement association, the Minnesota historical 73.4 society, the armory building commission, and the 73.5 Minnesota-Wisconsin-Minneapolis-St. Paul survival plan project, 73.6 the applicable employing unit must pay the employer contribution 73.7 from any revenue source that it has. 73.8 Subd. 3. [ADJUSTMENTS; REFUNDS.] If more or less than the 73.9 correct amount of the contribution imposed by this section is 73.10 paid or deducted with respect to any remuneration, proper 73.11 adjustments, or refund if adjustment is impracticable,shall73.12 must be made, without interest, in such manner and at such times 73.13 as thestate agency shall prescribedirector prescribes. 73.14 Subd. 4. [DELINQUENT PAYMENTS.] Delinquent payments that 73.15 are due under this chapter, with compound interest at the rate 73.16 of six percent per annum, may be recovered by legal action in a 73.17 court of competent jurisdiction against an employing unit that 73.18 is liable for the amount. The director may request that the 73.19 delinquent payment and interest amount be deducted from any 73.20 other money that is payable to the applicable employing unit by 73.21 any department or agency of the state. An action for the 73.22 recovery of delinquent payments is not subject to any statutory 73.23 provision that would otherwise limit the time within which an 73.24 action may be commenced. 73.25 Sec. 29. [355.035] [REIMBURSEMENT BY EMPLOYING UNITS.] 73.26 An employing unit which employs a member of a covered group 73.27 must reimburse the state agency for its pro rata share of the 73.28 cost of the administration of the agency with respect to social 73.29 security coverage in accordance with the rules of the director 73.30 pertaining to this reimbursement. 73.31 Sec. 30. [355.036] [REPORTS.] 73.32 An employing unit which employs a member of a covered group 73.33 must make any reports in the form required and must include the 73.34 information that the director requires. An employing unit also 73.35 must comply with the reporting requirements that the director or 73.36 the federal Secretary of Health and Human Services may from time 74.1 to time determine are necessary to ensure the correctness and 74.2 verification of relevant information. 74.3 Sec. 31. [355.037] [PROCEEDS OF SPECIAL BENEFIT TAXES.] 74.4 The proceeds of the special benefit taxes that are 74.5 authorized to be levied for redevelopment purposes under section 74.6 469.033, subdivision 6, may be used to defray all or part of the 74.7 costs incurred by any housing and redevelopment authority under 74.8 this chapter. 74.9 Sec. 32. Minnesota Statutes 2000, section 355.05, is 74.10 amended to read: 74.11 355.05 [RULES.] 74.12 Thestate agency shall make and publish suchdirector may 74.13 promulgate those rules, not inconsistent with the provisions of 74.14 this chapter, as amended, as it finds necessary or appropriate 74.15 to the efficient administration of the functions with which it 74.16 is charged under this chapter, as amended. 74.17 Sec. 33. Minnesota Statutes 2000, section 355.07, is 74.18 amended to read: 74.19 355.07 [DECLARATION OF POLICY.] 74.20 (a) In order to extend to employees of the stateand, its 74.21 political subdivisions, and its other governmental employers, 74.22 and to the dependents and survivors ofsuchthe employees of 74.23 those employing units, the basic protection accorded to others 74.24 by the old ageand, survivors, and disability insurance system 74.25 embodied in the Social Security Act, it is hereby declared to be 74.26 the policy of the legislature, subject to the limitations of 74.27 this chapter, that these steps are taken to provide protection 74.28 to employees of the state and its political subdivisions on as 74.29 broad a basis as may be authorized by the legislature and is 74.30 permitted under the Social Security Act. 74.31 (b) It is also the policy of the legislature that the 74.32 protection afforded employees in positions covered by a 74.33 retirement system on the date an agreement under this chapter is 74.34 made applicable to service performed in those positions, or 74.35 receiving periodic benefits under the retirement system at that 74.36 time, will not be impaired as a result of making the agreement 75.1 so applicable or as a result of legislative enactment in 75.2 anticipation thereof when combined with the benefits accorded 75.3 the employee by the Social Security Act. 75.4 (c) To this end, the agreement referred to in section 75.5 355.02shallmust not be made applicable to any service 75.6 performed in any position covered by a retirement system unless 75.7 a referendum is first held by secret ballot in which a majority 75.8 of "eligible employees," as defined in section 218(d) (3) of the 75.9 Social Security Act, vote in favor thereof, or unless a 75.10 retirement system is divided in two divisions or parts, one of 75.11 which is composed of positions of members of the system who 75.12 desire coverage and one of which is composed of positions of 75.13 members of the system who do not desire coverage under section 75.14 218(d) (3) of the Social Security Act, in accordance with 75.15 subsections (6) and (7) thereof. 75.16 (d) Nothing in any provision of this chaptershall75.17authorizeauthorizes the extension of the insurance system 75.18 established by this chapter, as amended, to service in any 75.19 police officer's or firefighter's position or in any position 75.20 covered by a retirement system applicable exclusively to 75.21 positions in one or more law enforcement or fire fighting units, 75.22 agencies or departments. 75.23 Sec. 34. Minnesota Statutes 2000, section 355.08, is 75.24 amended to read: 75.25 355.08 [APPLICATION OF SOCIAL SECURITY ACT.] 75.26 The provisions of the Social Security Act, and all acts75.27amendatory thereof, shallgovern relative to employees of the 75.28 stateand, its political subdivisions, and its other 75.29 governmental employers subject toMinnesota Statutes,this 75.30 chapter355, as amended, anything insaidthis chapter to the 75.31 contrary notwithstanding. 75.32 Sec. 35. [355.091] [DIVISION OF RETIREMENT PLANS.] 75.33 (a) The public retirement plans enumerated in paragraph (b) 75.34 must be divided into two parts in accordance with section 75.35 218(d)(6)(c) of the Social Security Act, with one part composed 75.36 of plan members who did not elect social security coverage in 76.1 the applicable referendum and the other part composed of plan 76.2 members who did elect social security coverage in the applicable 76.3 referendum. 76.4 (b) The applicable public retirement plans are: 76.5 (1) the elective state officers retirement plan; 76.6 (2) the judges retirement plan; 76.7 (3) the legislators retirement plan; 76.8 (4) the Minneapolis teachers retirement fund association; 76.9 (5) the general employees retirement plan of the public 76.10 employees retirement association; 76.11 (6) the St. Paul teachers retirement fund association; and 76.12 (7) the teachers retirement association. 76.13 (c) Plan participants and persons electing participation 76.14 under section 354B.21 remain members of the teachers retirement 76.15 association for purposes of social security coverage only, and 76.16 remain covered by the applicable agreement entered into under 76.17 section 355.01, but are not members of the teachers retirement 76.18 association for any other purpose while employed in covered 76.19 employment. 76.20 Sec. 36. [REPEALER.] 76.21 Minnesota Statutes 2000, sections 355.01, subdivisions 2, 76.22 4, 5, 9, and 10; 355.11; 355.12; 355.13; 355.14; 355.15; 355.16; 76.23 355.17; 355.201; 355.202; 355.203; 355.204; 355.205; 355.206; 76.24 355.207; 355.208; 355.209; 355.21; 355.22; 355.23; 355.24; 76.25 355.25; 355.26; 355.27; 355.28; 355.281; 355.282; 355.283; 76.26 355.284; 355.285; 355.286; 355.287; 355.288; 355.29; 355.291; 76.27 355.292; 355.293; 355.294; 355.295; 355.296; 355.297; 355.298; 76.28 355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 355.41; 76.29 355.42; 355.43; 355.44; 355.45; 355.46; 355.48; 355.49; 355.50; 76.30 355.51; 355.52; 355.54; 355.55; 355.56; 355.57; 355.58; 355.59; 76.31 355.60; 355.61; 355.621; 355.622; 355.623; 355.624; 355.625; 76.32 355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 355.74; 76.33 355.75; 355.76; 355.77; 355.78; 355.79; 355.80; 355.81; and 76.34 355.90, are repealed. 76.35 Sec. 37. [EFFECTIVE DATE.] 76.36 Sections 1 to 36 are effective on July 1, 2002. 77.1 ARTICLE 9 77.2 PUBLIC PENSION PLAN 77.3 ACTUARIAL ASSUMPTION REVISIONS 77.4 Section 1. Minnesota Statutes 2000, section 356.215, 77.5 subdivision 4d, is amended to read: 77.6 Subd. 4d. [INTEREST AND SALARY ASSUMPTIONS.] (a) The 77.7 actuarial valuation must use the applicable following 77.8 preretirement interest assumption and the applicable following 77.9 postretirement interest assumption: 77.10 preretirement postretirement 77.11 interest rate interest rate 77.12 plan assumption assumption 77.13 general state employees 77.14 retirement plan 8.5% 6.0% 77.15 correctional state employees 77.16 retirement plan 8.5 6.0 77.17 state patrol retirement plan 8.5 6.0 77.18 legislators retirement plan 8.5 6.0 77.19 elective state officers 77.20 retirement plan 8.5 6.0 77.21 judges retirement plan 8.5 6.0 77.22 general public employees 77.23 retirement plan 8.5 6.0 77.24 public employees police and fire 77.25 retirement plan 8.5 6.0 77.26 local government correctional 77.27 service retirement plan 8.5 6.0 77.28 teachers retirement plan 8.5 6.0 77.29 Minneapolis employees 77.30 retirement plan 6.0 5.0 77.31 Duluth teachers retirement plan 8.5 8.5 77.32 Minneapolis teachers retirement 77.33 plan 8.5 8.5 77.34 St. Paul teachers retirement 77.35 plan 8.5 8.5 77.36 Minneapolis police relief 77.37 association 6.0 6.0 77.38other localFairmont police relief 77.39associationsassociation 5.0 5.0 77.40 Minneapolis fire department 77.41 relief association 6.0 6.0 77.42other local salaried firefighters77.43 Virginia fire department 77.44 reliefassociationsassociation 5.0 5.0 77.45 local monthly benefit volunteer 77.46 firefighters relief associations 5.0 5.0 77.47 (b) The actuarial valuation must use the applicable 77.48 following single rate future salary increase assumption or the 77.49 applicable following graded rate future salary increase 77.50 assumption: 77.51 (1) single rate future salary increase assumption 77.52 future salary 77.53 plan increase assumption 77.54 legislators retirement plan 5.0% 77.55 elective state officers retirement 77.56 plan 5.0 78.1 judges retirement plan 5.0 78.2 Minneapolis police relief association 4.0 78.3other localFairmont police relief 78.4associationsassociation 3.5 78.5 Minneapolis fire department relief 78.6 association 4.0 78.7other local salaried firefighters78.8 Virginia fire department 78.9 reliefassociationsassociation 3.5 78.10 (2) modified single rate future salary increase assumption 78.11 future salary 78.12 plan increase assumption 78.13 Minneapolis employees the prior calendar year 78.14 retirement plan amount increased first by 78.15 1.0198 percent to prior 78.16 fiscal year date and 78.17 then increased by 4.0 78.18 percent annually for 78.19 each future year 78.20 (3) select and ultimate future salary increase assumption 78.21 or graded rate future salary increase assumption 78.22 future salary 78.23 plan increase assumption 78.24 general state employees select calculation and 78.25 retirement plan assumption A 78.26 correctional state employees 78.27 retirement plan assumption H 78.28 state patrol retirement plan assumption H 78.29 general public employees select calculation and 78.30 retirement plan assumption B 78.31 public employees police and fire 78.32 fund retirement plan assumption C 78.33 local government correctional service 78.34 retirement plan assumption H 78.35 teachers retirement plan assumption D 78.36 Duluth teachers retirement plan assumption E 78.37 Minneapolis teachers retirement plan assumption F 78.38 St. Paul teachers retirement plan assumption G 78.39 78.40 The select calculation:is, 78.41 during the ten-year select period,0.2a designated percent 78.42 is multiplied by the result of ten minus T, where T is 78.43 the number of completed years of service, and is added 78.44 to the applicable future salary increase assumption. The 78.45 designated percent is 0.2 percent for the correctional state 78.46 employees retirement plan, the state patrol retirement 78.47 plan, the public employees police and fire plan, and the 78.48 local government correctional service plan; 0.3 percent 78.49 for the general state employees retirement plan, the 78.50 general public employees retirement plan, the teachers 78.51 retirement plan, the Duluth teachers retirement fund 78.52 association, and the St. Paul teachers retirement fund 78.53 association; and 0.4 percent for the Minneapolis teachers 78.54 retirement fund association. 78.55 78.56 The ultimate future salary increase assumption is: 78.57 78.58 age A B C D E F G H 78.59 16 6.95% 6.95% 11.50% 8.20% 8.00%7.50%7.25% 7.7500 78.60 6.50 6.90 78.61 17 6.90 6.90 11.50 8.15 8.007.507.257.7500 78.62 6.50 6.90 78.63 18 6.85 6.85 11.50 8.10 8.007.507.257.7500 78.64 6.50 6.90 78.65 19 6.80 6.80 11.50 8.05 8.007.507.257.7500 78.66 6.50 6.90 79.1 20 6.756.7511.508.008.007.507.257.7500 79.2 6.40 6.00 6.90 6.50 6.90 79.3 216.706.7011.507.958.007.507.257.1454 79.4 6.75 6.40 6.00 6.90 6.50 6.90 79.5 226.656.6511.007.908.007.507.257.0725 79.6 6.75 6.40 6.00 6.90 6.50 6.90 79.7 23 6.75 6.40 10.50 6.00 6.85 6.50 6.85 7.0544 79.8 246.666.5510.007.807.807.307.207.0363 79.9 6.75 6.40 6.00 6.80 6.50 6.80 79.10 256.506.509.507.757.707.207.157.0000 79.11 6.75 6.40 6.00 6.75 6.50 6.75 79.12 266.456.459.207.707.607.107.107.0000 79.13 6.75 6.36 6.00 6.70 6.50 6.70 79.14 276.406.408.907.657.507.007.057.0000 79.15 6.75 6.32 6.00 6.65 6.50 6.65 79.16 286.356.358.607.607.406.907.007.0000 79.17 6.75 6.28 6.00 6.60 6.50 6.60 79.18 296.306.308.307.557.306.806.957.0000 79.19 6.75 6.24 6.00 6.55 6.50 6.55 79.20 306.256.308.007.507.206.706.907.0000 79.21 6.75 6.20 6.00 6.50 6.50 6.50 79.22 316.206.257.807.457.106.606.857.0000 79.23 6.75 6.16 6.00 6.45 6.50 6.45 79.24 326.156.217.607.407.006.506.807.0000 79.25 6.75 6.12 6.00 6.40 6.50 6.40 79.26 336.106.177.407.306.906.406.757.0000 79.27 6.75 6.08 6.00 6.35 6.50 6.35 79.28 346.056.097.207.106.806.306.707.0000 79.29 6.75 6.04 6.00 6.30 6.50 6.30 79.30 356.006.057.007.006.706.206.657.0000 79.31 6.75 6.00 6.00 6.25 6.50 6.25 79.32 366.956.016.806.856.606.106.606.9019 79.33 6.75 5.96 6.00 6.20 6.50 6.20 79.34 375.905.976.606.706.506.006.556.8074 79.35 6.75 5.92 6.00 6.15 6.50 6.15 79.36 385.855.936.406.556.405.906.506.7125 79.37 6.75 5.88 5.90 6.10 6.50 6.10 79.38 395.805.896.206.406.305.806.406.6054 79.39 6.75 5.84 5.80 6.05 6.50 6.05 79.40 405.755.856.006.256.205.706.306.5000 79.41 6.75 5.80 5.70 6.00 6.50 6.00 79.42 415.705.815.906.106.105.606.206.3540 79.43 6.75 5.76 5.60 5.90 6.50 5.95 79.44 425.655.775.805.956.005.506.106.2087 79.45 6.75 5.72 5.50 5.80 6.50 5.90 79.46 435.605.735.705.805.905.456.006.0622 79.47 6.65 5.68 5.40 5.70 6.50 5.85 79.48 445.555.695.605.655.805.405.905.9048 79.49 6.55 5.64 5.30 5.60 6.50 5.80 79.50 455.505.655.505.505.705.355.805.7500 79.51 6.45 5.60 5.20 5.50 6.50 5.75 79.52 465.455.625.455.455.605.305.705.6940 79.53 6.35 5.56 5.10 5.40 6.40 5.70 79.54 475.405.595.405.405.505.255.65 5.6375 79.55 6.25 5.52 5.00 5.30 6.30 79.56 485.355.565.355.355.455.205.60 5.5822 79.57 6.15 5.48 5.00 5.20 6.20 79.58 495.305.535.305.305.405.155.55 5.5404 79.59 6.05 5.44 5.00 5.10 6.10 79.60 505.255.505.255.255.355.105.50 5.5000 79.61 5.95 5.40 5.00 5.00 6.00 79.62 515.205.455.255.205.305.055.45 5.4384 79.63 5.85 5.36 5.00 5.00 5.90 79.64 525.155.405.255.155.255.005.40 5.3776 79.65 5.75 5.32 5.00 5.00 5.80 79.66 535.105.355.255.105.255.005.35 5.3167 79.67 5.65 5.28 5.00 5.00 5.70 79.68 545.055.305.255.055.255.005.30 5.2826 79.69 5.55 5.24 5.00 5.00 5.60 79.70 555.005.255.25 5.005.255.005.25 5.2500 79.71 5.45 5.20 5.00 5.50 80.1 565.005.205.25 5.005.255.005.255.2500 80.2 5.35 5.16 5.00 5.40 5.20 80.3 575.005.155.25 5.005.255.005.255.2500 80.4 5.25 5.12 5.00 5.30 5.15 80.5 585.005.105.255.005.255.005.255.2500 80.6 5.25 5.08 5.10 5.00 5.20 5.10 80.7 595.005.055.255.005.255.005.255.2500 80.8 5.25 5.04 5.20 5.00 5.10 5.05 80.9 605.005.00 5.255.005.255.005.255.2500 80.10 5.25 5.30 5.00 5.00 80.11 615.005.00 5.255.005.255.005.255.2500 80.12 5.25 5.40 5.00 5.00 80.13 625.005.00 5.255.005.255.005.255.2500 80.14 5.25 5.50 5.00 5.00 80.15 635.005.00 5.255.005.255.005.255.2500 80.16 5.25 5.60 5.00 5.00 80.17 645.005.00 5.255.005.255.005.255.2500 80.18 5.25 5.70 5.00 5.00 80.19 655.005.00 5.255.005.255.005.255.2500 80.20 5.25 5.70 5.00 5.00 80.21 665.005.00 5.255.005.255.005.255.2500 80.22 5.25 5.70 5.00 5.00 80.23 675.005.00 5.255.005.255.005.255.2500 80.24 5.25 5.70 5.00 5.00 80.25 685.005.00 5.255.005.255.005.255.2500 80.26 5.25 5.70 5.00 5.00 80.27 695.005.00 5.255.005.255.005.255.2500 80.28 5.25 5.70 5.00 5.00 80.29 705.005.00 5.255.005.255.005.255.2500 80.30 5.25 5.70 5.00 5.00 80.31 715.005.005.0080.32 5.25 5.70 80.33 (c) The actuarial valuation must use the applicable 80.34 following payroll growth assumption for calculating the 80.35 amortization requirement for the unfunded actuarial accrued 80.36 liability where the amortization retirement is calculated as a 80.37 level percentage of an increasing payroll: 80.38 payroll growth 80.39 plan assumption 80.40 general state employees retirement plan 5.00% 80.41 correctional state employees retirement plan 5.00 80.42 state patrol retirement plan 5.00 80.43 legislators retirement plan 5.00 80.44 elective state officers retirement plan 5.00 80.45 judges retirement plan 5.00 80.46 general public employees retirement plan 6.00 80.47 public employees police and fire 80.48 retirement plan 6.00 80.49 local government correctional service 80.50 retirement plan 6.00 80.51 teachers retirement plan 5.00 80.52 Duluth teachers retirement plan 5.00 80.53 Minneapolis teachers retirement plan 5.00 80.54 St. Paul teachers retirement plan 5.00 80.55 Sec. 2. [EFFECTIVE DATE.] 80.56 Section 1 is effective on June 30, 2002. 80.57 ARTICLE 10 80.58 AUTHORIZATION OF ADDITIONAL 80.59 SUPPLEMENTAL RETIREMENT PLANS 81.1 Section 1. Minnesota Statutes 2001 Supplement, section 81.2 356.24, subdivision 1, is amended to read: 81.3 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 81.4 for a school district or other governmental subdivision or state 81.5 agency to levy taxes for, or contribute public funds to a 81.6 supplemental pension or deferred compensation plan that is 81.7 established, maintained, and operated in addition to a primary 81.8 pension program for the benefit of the governmental subdivision 81.9 employees other than: 81.10 (1) to a supplemental pension plan that was established, 81.11 maintained, and operated before May 6, 1971; 81.12 (2) to a plan that provides solely for group health, 81.13 hospital, disability, or death benefits; 81.14 (3) to the individual retirement account plan established 81.15 by chapter 354B; 81.16 (4) to a plan that provides solely for severance pay under 81.17 section 465.72 to a retiring or terminating employee; 81.18 (5) for employees other than personnel employed by the 81.19 board of trustees of the Minnesota state colleges and 81.20 universities and covered under the higher education supplemental 81.21 retirement plan under chapter 354C, if provided for in a 81.22 personnel policy of the public employer or in the collective 81.23 bargaining agreement between the public employer and the 81.24 exclusive representative of public employees in an appropriate 81.25 unit, in an amount matching employee contributions on a dollar 81.26 for dollar basis, but not to exceed an employer contribution of 81.27 $2,000 a year per employee; 81.28 (i) to the state of Minnesota deferred compensation plan 81.29 under section 352.96; or 81.30 (ii) in payment of the applicable portion of the 81.31 contribution made to any investment eligible under section 81.32 403(b) of the Internal Revenue Code, if the employing unit has 81.33 complied with any applicable pension plan provisions of the 81.34 Internal Revenue Code with respect to the tax-sheltered annuity 81.35 program during the preceding calendar year; 81.36 (6) for personnel employed by the board of trustees of the 82.1 Minnesota state colleges and universities and not covered by 82.2 clause (5), to the supplemental retirement plan under chapter 82.3 354C, if provided for in a personnel policy or in the collective 82.4 bargaining agreement of the public employer with the exclusive 82.5 representative of the covered employees in an appropriate unit, 82.6 in an amount matching employee contributions on a dollar for 82.7 dollar basis, but not to exceed an employer contribution of 82.8 $2,700 a year for each employee; 82.9 (7) to a supplemental plan or to a governmental trust to 82.10 save for postretirement health care expenses qualified for 82.11 tax-preferred treatment under the Internal Revenue Code, if 82.12 provided for in a personnel policy or in the collective 82.13 bargaining agreement of a public employer with the exclusive 82.14 representative of the covered employees in an appropriate unit; 82.15or82.16 (8) to the laborer's national industrial pension fund for 82.17 the employees of a governmental subdivision who are covered by a 82.18 collective bargaining agreement that provides for coverage by 82.19 that fund and that sets forth a fund contribution rate, but not 82.20 to exceed an employer contribution of $2,000 per year per 82.21 employee; 82.22 (9) to the plumbers' and pipefitters' national pension fund 82.23 for the employees of a governmental subdivision who are covered 82.24 by a collective bargaining agreement that provides for coverage 82.25 by that fund and that sets forth a fund contribution rate, but 82.26 not to exceed an employer contribution of $2,000 per year per 82.27 employee; 82.28 (10) to the international union of operating engineers 82.29 pension fund for the employees of a governmental subdivision who 82.30 are covered by a collective bargaining agreement that provides 82.31 for coverage by that fund and that sets forth a fund 82.32 contribution rate, but not to exceed an employer contribution of 82.33 $2,000 per year per employee; or 82.34 (11) to a supplemental plan organized and operated under 82.35 the federal Internal Revenue Code, as amended, that is wholly 82.36 and solely funded by the employee's accumulated sick leave, 83.1 accumulated vacation leave, and accumulated severance pay. 83.2 Sec. 2. Minnesota Statutes 2000, section 356.25, is 83.3 amended to read: 83.4 356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 83.5 EXCLUSIONS.] 83.6 Notwithstanding any other provision of law or charter, no 83.7 city, county, public agency or instrumentality, or other 83.8 political subdivisionshall, after August 1, 1975,is required 83.9 or permitted to establish for any of its employees any local 83.10 pension plan or fund financed in whole or in part from public 83.11 funds, other than: 83.12 (1) a supplemental pension or deferred compensation plan 83.13 authorized under section 356.24; or 83.14 (2) a volunteer firefighter's relief association 83.15 establishedpursuant tounder chapter 424A and governed by 83.16 sections 69.771 to 69.776. 83.17 Sec. 3. [RATIFICATION AND VALIDATION OF CERTAIN PAST 83.18 ACTIONS.] 83.19 Any supplemental pension plan that is organized and 83.20 operated under section 401(a) of the federal Internal Revenue 83.21 Code, as amended, that is wholly and solely funded by an 83.22 employee's accumulated sick leave, accumulated vacation leave, 83.23 and accumulated severance pay, and that was established before 83.24 the effective date of this act and any contributions to the plan 83.25 that may be characterized as public funds within the meaning of 83.26 Minnesota Statutes, section 356.24, are hereby ratified and 83.27 validated. 83.28 Sec. 4. [EFFECTIVE DATE.] 83.29 Sections 1 to 3 are effective on the day following final 83.30 enactment. 83.31 ARTICLE 11 83.32 GENERAL RETIREMENT LAW 83.33 REORGANIZATION AND RECODIFICATION 83.34 PUBLIC RETIREMENT PLAN PURPOSE 83.35 Section 1. Minnesota Statutes 2000, section 356.001, is 83.36 amended to read: 84.1 356.001 [PURPOSE OF PUBLIC PLANS.] 84.2 Subdivision 1. [EXCLUSIVE BENEFIT OF MEMBERS AND 84.3 BENEFICIARIES.] (a) The public plans and funds specified in 84.4 subdivision 4 are established to provide for the retirement of 84.5 their members and to provide funds for the beneficiaries of 84.6 members in the event of death of a member. 84.7 (b) The public plans and funds are established andshall84.8 must be maintained for the exclusive benefit of the members and 84.9 the beneficiaries of the members. Except as provided in 84.10 subdivisions 2 and 3, no part of the moneys of the plans and 84.11 fundsshallmay revert to the plan or fund or be used for or 84.12 diverted to purposes other than the exclusive benefit of the 84.13 members or their beneficiaries. 84.14 Subd. 2. [ALLOWABLE EXPENSES.] The necessary, reasonable, 84.15 and direct expenses of maintaining, protecting, and 84.16 administering the public plan or fund, as authorized in the laws 84.17 governing the plan or fund,shallmust be considered as 84.18 expenditures for the exclusive benefit of the members or their 84.19 beneficiaries. 84.20 Subd. 3. [EFFECT OF AMENDMENTS OR TERMINATION.] (a) If a 84.21 public plan or fundasdefined in subdivision 4 is terminated or 84.22 the plan or fund provisions are amended, no part of the moneys 84.23 held in the plan or fundshallmay be used for or diverted to 84.24 any purpose other than the exclusive benefit of the members or 84.25 their beneficiaries, except as provided in this subdivision. 84.26 (b) If a plan or fund is terminated, all affected members 84.27 have a nonforfeitable interest in their benefits that were 84.28 accrued and funded to date. The value of the accrued benefits 84.29 to be credited to the account of each affected membershallmust 84.30 be calculated as of the date of termination and the funding 84.31 ratio of the plan or fund must be applied to the accrued benefit 84.32 of each affected member. 84.33 (c) The board of trustees of the plan or fund shallthen, 84.34 as soon as administratively feasible following the termination, 84.35 pay each eligible member or beneficiary on behalf of a member 84.36 the amount in the member's account in a lump sum. In the case 85.1 of a member whose whereabouts is unknown, the board shall notify 85.2 the member at the last known address by certified mail with 85.3 return receipt requested advising the member of the member's 85.4 right to a pending distribution. If the member cannot be 85.5 located in this manner, the board shall establish a custodial 85.6 account for the member's benefit in a federally insured bank, 85.7 savings association, or credit union in which the member's 85.8 account balanceshallmust be deposited. If the board receives 85.9 proof of death of a member that is satisfactory to the board, 85.10 the account balanceshallmust be paid to the beneficiary of the 85.11 member. 85.12 Subd. 4. [COVERED PLANS AND FUNDS.] This section applies 85.13 to all public pension and retirement plans and funds established 85.14pursuant tounder the laws of the state of Minnesota that 85.15 receive contributions from moneys derived from taxation. 85.16 Subd. 5. [CONSTRUCTION.] Nothing contained in this section 85.17shallmay be construed to authorize, or otherwise imply, a 85.18 legislative policy or intent favoring the termination of any 85.19 plan or fund to which this section applies. 85.20 PUBLIC PENSION PLAN ACTUARIAL, FINANCIAL, 85.21 AND INVESTMENT REPORTING 85.22 Sec. 2. Minnesota Statutes 2000, section 356.20, 85.23 subdivision 1, is amended to read: 85.24 Subdivision 1. [REPORT REQUIRED.] (a) The governing or 85.25 managing board or administrative officials of the public pension 85.26 and retirement funds enumerated in subdivision 2 shall annually 85.27 prepare and file a financial report following the close of each 85.28 fiscal year. 85.29 (b) This requirementshallalsoapplyapplies to any plan 85.30 or fund which may be a successor to any organization so 85.31 enumerated or to any newly formed retirement plan, fund or 85.32 association operating under the control or supervision of any 85.33 public employee group, governmental unit, or institution 85.34 receiving a portion of its support through legislative 85.35 appropriations. 85.36 (c) The reportshallmust be prepared under the supervision 86.1 and at the direction of the management of each fund andshall86.2 must be signed by the presiding officer of the managing board of 86.3 the fund and the chief administrative official of the fund. 86.4 Sec. 3. Minnesota Statutes 2000, section 356.20, 86.5 subdivision 2, is amended to read: 86.6 Subd. 2. [COVERED PUBLIC PENSION PLANS AND FUNDS.] This 86.7 section applies to the following public pension plans: 86.8 (1) the general state employees retirementfund.plan of 86.9 the Minnesota state retirement system; 86.10 (2) the general employees retirement plan of the public 86.11 employees retirementfund.association; 86.12 (3) the teachers retirement association.; 86.13 (4) the state patrol retirementfund.plan; 86.14 (5) the Minneapolis teachers retirement fund association.; 86.15 (6) the St. Paul teachers retirement fund association.; 86.16 (7) the Duluth teachers retirement fund association.; 86.17 (8) the Minneapolis employees retirement fund.; 86.18 (9) the University of Minnesota faculty retirement plan.; 86.19 (10) the University of Minnesota faculty supplemental 86.20 retirement plan.; 86.21 (11) the judges retirement fund.; 86.22 (12)Anya police or firefighter's relief association 86.23enumeratedspecified or described in section 69.77, subdivision 86.24 1a, or 69.771, subdivision 1.; 86.25 (13) the public employees police and firefund.plan of the 86.26 public employees retirement association; 86.27 (14) the correctional state employees retirement plan of 86.28 the Minnesota state retirement systemcorrectional officers86.29retirement fund.; and 86.30 (15)public employeesthe local government correctional 86.31 service retirement plan of the public employees retirement 86.32 association. 86.33 Sec. 4. Minnesota Statutes 2000, section 356.20, 86.34 subdivision 3, is amended to read: 86.35 Subd. 3. [FILING REQUIREMENT.] The financial report is a 86.36 public record. A copy of the report or a synopsis of the report 87.1 containing the information required by this sectionshallmust 87.2 be distributed annually to each member of the fund and to the 87.3 governing body of each governmental subdivision of the state 87.4 which makes employers contributions thereto or in whose behalf 87.5 taxes are levied for the employers' contribution. A signed copy 87.6 of the reportshallmust be delivered to the executive director 87.7 of the legislative commission on pensions and retirement and to 87.8 the legislative reference library not later than six months 87.9 after the close of each fiscal year or one month following the 87.10 completion and delivery to the retirement fund of the actuarial 87.11 valuation report of the fund by the actuary retained by the 87.12 legislative commission on pensions and retirement, if 87.13 applicable, whichever is later. 87.14 Sec. 5. Minnesota Statutes 2000, section 356.20, 87.15 subdivision 4, is amended to read: 87.16 Subd. 4. [CONTENTS OF FINANCIAL REPORT.] (a) The financial 87.17 report required by this section must contain financial 87.18 statements and disclosures that indicate the financial 87.19 operations and position of the retirement plan and fund. The 87.20 report must conform with generally accepted governmental 87.21 accounting principles, applied on a consistent basis. The 87.22 report must be audited. The report must include, as part of its 87.23 exhibits or footnotes, an actuarial disclosure item based on the 87.24 actuarial valuation calculations prepared by the 87.25 commission-retained actuary or by the actuary retained by the 87.26 retirement fund or plan, if applicable, according to applicable 87.27 actuarial requirements enumerated in section 356.215, and 87.28 specified in the most recent standards for actuarial work 87.29 adopted by the legislative commission on pensions and 87.30 retirement. The accrued assets, the accrued liabilities, 87.31 including accrued reserves, and the unfunded actuarial accrued 87.32 liability of the fund or plan must be disclosed. The disclosure 87.33 item must contain a declaration by the actuary retained by the 87.34 legislative commission on pensions and retirement or the actuary 87.35 retained by the fund or plan, whichever applies, specifying that 87.36 the required reserves for any retirement, disability, or 88.1 survivor benefits provided under a benefit formula are computed 88.2 in accordance with the entry age actuarial cost method and with 88.3 the most recent applicable standards for actuarial work adopted 88.4 by the legislative commission on pensions and retirement. 88.5(a)(b) Assets of the fund or plan contained in the 88.6 disclosure item must include the following statement of the 88.7 actuarial value of current assets as defined in section 356.215, 88.8 subdivision 1: 88.9 Value Value 88.10 at cost at market 88.11 Cash, cash equivalents, and 88.12 short-term securities ......... ......... 88.13 Accounts receivable ......... ......... 88.14 Accrued investment income ......... ......... 88.15 Fixed income investments ......... ......... 88.16 Equity investments other 88.17 than real estate ......... ......... 88.18 Real estate investments ......... ......... 88.19 Equipment ......... ......... 88.20 Equity in the Minnesota 88.21 postretirement investment 88.22 fund ......... ......... 88.23 Other ......... ......... 88.24 88.25 Total assets 88.26 Value at cost ......... 88.27 Value at market ......... 88.28 Value of current assets ......... 88.29(b)(c) The unfunded actuarial accrued liability of the 88.30 fund or plan contained in the disclosure item must include the 88.31 following measures of unfunded actuarial accrued liability, 88.32 using the value of current assets: 88.33 (1) unfunded actuarial accrued liability, determined by 88.34 subtracting the current assets and the present value of future 88.35 normal costs from the total current and expected future benefit 88.36 obligations; and 89.1 (2) unfunded pension benefit obligation, determined by 89.2 subtracting the current assets from the actuarial present value 89.3 of credited projected benefits. 89.4 If the current assets of the fund or plan exceed the 89.5 actuarial accrued liabilities, the excess must be disclosed and 89.6 indicated as a surplus. 89.7(c)(d) The pension benefit obligations schedule included 89.8 in the disclosure must contain the following information on the 89.9 benefit obligations: 89.10 (1) the pension benefit obligation, determined as the 89.11 actuarial present value of credited projected benefits on 89.12 account of service rendered to date, separately identified as 89.13 follows: 89.14 (i) for annuitants; 89.15 retirement annuities; 89.16 disability benefits; 89.17 surviving spouse and child benefits; 89.18 (ii) for former members without vested rights; 89.19 (iii) for deferred annuitants' benefits, including 89.20 any augmentation; 89.21 (iv) for active employees; 89.22 accumulated employee contributions, 89.23 including allocated investment income; 89.24 employer-financed benefits vested; 89.25 employer-financed benefits nonvested; 89.26 total pension benefit obligation; and 89.27 (2) if there are additional benefits not appropriately 89.28 covered by the foregoing items of benefit obligations, a 89.29 separate identification of the obligation. 89.30(d)(e) Any additional statements or exhibits or more 89.31 detailed or subdivided itemization of a disclosure item that 89.32 will enable the management of the fund to portray a true 89.33 interpretation of the fund's financial condition must be 89.34 included in the additional statements or exhibits. 89.35 Sec. 6. Minnesota Statutes 2000, section 356.20, 89.36 subdivision 4a, is amended to read: 90.1 Subd. 4a. [FINANCIAL REPORT FOR POLICE OR FIREFIGHTERS 90.2 RELIEF ASSOCIATION.] For any police or firefighter's relief 90.3 association referred to in subdivision 2, clause (12), a 90.4 financial report duly filedpursuant toand meeting the 90.5 requirements of section 69.051shallmust be deemed to have met 90.6 the requirements of subdivision 4. 90.7 Sec. 7. Minnesota Statutes 2000, section 356.215, as 90.8 amended by Laws 2001, First Special Session chapter 10, article 90.9 11, section 18, is amended to read: 90.10 356.215 [ACTUARIAL VALUATIONS AND EXPERIENCE STUDIES.] 90.11 Subdivision 1. [DEFINITIONS.] (a) For the purposes of 90.12 sections 3.85 and 356.20 to 356.23, each of the terms in the 90.13 following paragraphs have the meaning given. 90.14 (b) "Actuarial valuation" means a set of calculations 90.15 prepared by the actuary retained by the legislative commission 90.16 on pensions and retirement if so required under section 3.85, or 90.17 otherwise, by an approved actuary, to determine the normal cost 90.18 and the accrued actuarial liabilities of a benefit plan, 90.19 according to the entry age actuarial cost method and based upon 90.20 stated assumptions including, but not limited to rates of 90.21 interest, mortality, salary increase, disability, withdrawal, 90.22 and retirement and to determine the payment necessary to 90.23 amortize over a stated period any unfunded accrued actuarial 90.24 liability disclosed as a result of the actuarial valuation of 90.25 the benefit plan. 90.26 (c) "Approved actuary" means a person who is regularly 90.27 engaged in the business of providing actuarial services and who 90.28 has at least 15 years of service to major public employee 90.29 pension or retirement funds or who is a fellow in the society of 90.30 actuaries. 90.31 (d) "Entry age actuarial cost method" means an actuarial 90.32 cost method under which the actuarial present value of the 90.33 projected benefits of each individual currently covered by the 90.34 benefit plan and included in the actuarial valuation is 90.35 allocated on a level basis over the service of the individual, 90.36 if the benefit plan is governed by section 69.773, or over the 91.1 earnings of the individual, if the benefit plan is governed by 91.2 any other law, between the entry age and the assumed exit age, 91.3 with the portion ofthisthe actuarial present value which is 91.4 allocated to the valuation year to be the normal cost and the 91.5 portion ofthisthe actuarial present value not provided for at 91.6 the valuation date by the actuarial present value of future 91.7 normal costs to be the actuarial accrued liability, with 91.8 aggregation in the calculation process to be the sum of the 91.9 calculated result for each covered individual and with 91.10 recognition given to any different benefit formulas which may 91.11 apply to various periods of service. 91.12 (e) "Experience study" means a report providing experience 91.13 data and an actuarial analysis of the adequacy of the actuarial 91.14 assumptions on which actuarial valuations are based. 91.15 (f) "Current assets" means: 91.16 (1)for the July 1, 1999, actuarial valuation, the value of91.17all assets at cost, including realized capital gains or losses,91.18plus one-third of any unrealized capital gains or losses;91.19(2) for the July 1, 2000, actuarial valuation, the market91.20value of all assets as of June 30, 2000, reduced by:91.21(i) 60 percent of the difference between the market value91.22of all assets as of June 30, 1999, and the actuarial value of91.23assets used in the July 1, 1999, actuarial valuation, and91.24(ii) 80 percent of the difference between the actual net91.25change in the market value of assets between June 30, 1999, and91.26June 30, 2000, and the computed increase in the market value of91.27assets between June 30, 1999, and June 30, 2000, if the assets91.28had increased at the percentage preretirement interest rate91.29assumption used in the July 1, 1999, actuarial valuation;91.30(3)for the July 1, 2001, actuarial valuation, the market 91.31 value of all assets as of June 30, 2001, reduced by: 91.32 (i) 30 percent of the difference between the market value 91.33 of all assets as of June 30, 1999, and the actuarial value of 91.34 assets used in the July 1, 1999, actuarial valuation; 91.35 (ii) 60 percent of the difference between the actual net 91.36 change in the market value of assets between June 30, 1999, and 92.1 June 30, 2000, and the computed increase in the market value of 92.2 assets between June 30, 1999, and June 30, 2000, if the assets 92.3 had increased at the percentage preretirement interest rate 92.4 assumption used in the July 1, 1999, actuarial valuation; and 92.5 (iii) 80 percent of the difference between the actual net 92.6 change in the market value of assets between June 30, 2000, and 92.7 June 30, 2001, and the computed increase in the market value of 92.8 assets between June 30, 2000, and June 30, 2001, if the assets 92.9 had increased at the percentage preretirement interest rate 92.10 assumption used in the July 1, 2000, actuarial valuation; 92.11(4)(2) for the July 1, 2002, actuarial valuation, the 92.12 market value of all assets as of June 30, 2002, reduced by: 92.13 (i) ten percent of the difference between the market value 92.14 of all assets as of June 30, 1999, and the actuarial value of 92.15 assets used in the July 1, 1999, actuarial valuation; 92.16 (ii) 40 percent of the difference between the actual net 92.17 change in the market value of assets between June 30, 1999, and 92.18 June 30, 2000, and the computed increase in the market value of 92.19 assets between June 30, 1999, and June 30, 2000, if the assets 92.20 had increased at the percentage preretirement interest rate 92.21 assumption used in the July 1, 1999, actuarial valuation; 92.22 (iii) 60 percent of the difference between the actual net 92.23 change in the market value of assets between June 30, 2000, and 92.24 June 30, 2001, and the computed increase in the market value of 92.25 assets between June 30, 2000, and June 30, 2001, if the assets 92.26 had increased at the percentage preretirement interest rate 92.27 assumption used in the July 1, 2000, actuarial valuation; and 92.28 (iv) 80 percent of the difference between the actual net 92.29 change in the market value of assets between June 30, 2001, and 92.30 June 30, 2002, and the computed increase in the market value of 92.31 assets between June 30, 2001, and June 30, 2002, if the assets 92.32 had increased at the percentage preretirement interest rate 92.33 assumption used in the July 1, 2001, actuarial valuation; or 92.34(5)(3) for any actuarial valuation after July 1, 2002, the 92.35 market value of all assets as of the preceding June 30, reduced 92.36 by: 93.1 (i) 20 percent of the difference between the actual net 93.2 change in the market value of assets between the June 30 that 93.3 occurred three years earlier and the June 30 that occurred four 93.4 years earlier and the computed increase in the market value of 93.5 assets over that fiscal year period if the assets had increased 93.6 at the percentage preretirement interest rate assumption used in 93.7 the actuarial valuation for the July 1 that occurred four years 93.8 earlier; 93.9 (ii) 40 percent of the difference between the actual net 93.10 change in the market value of assets between the June 30 that 93.11 occurred two years earlier and the June 30 that occurred three 93.12 years earlier and the computed increase in the market value of 93.13 assets over that fiscal year period if the assets had increased 93.14 at the percentage preretirement interest rate assumption used in 93.15 the actuarial valuation for the July 1 that occurred three years 93.16 earlier; 93.17 (iii) 60 percent of the difference between the actual net 93.18 change in the market value of assets between the June 30 that 93.19 occurred one year earlier and the June 30 that occurred two 93.20 years earlier and the computed increase in the market value of 93.21 assets over that fiscal year period if the assets had increased 93.22 at the percentage preretirement interest rate assumption used in 93.23 the actuarial valuation for the July 1 that occurred two years 93.24 earlier; and 93.25 (iv) 80 percent of the difference between the actual net 93.26 change in the market value of assets between the immediately 93.27 prior June 30 and the June 30 that occurred one year earlier and 93.28 the computed increase in the market value of assets over that 93.29 fiscal year period if the assets had increased at the percentage 93.30 preretirement interest rate assumption used in the actuarial 93.31 valuation for the July 1 that occurred one year earlier. 93.32 (g) "Unfunded actuarial accrued liability" means the total 93.33 current and expected future benefit obligations, reduced by the 93.34 sum of current assets and the present value of future normal 93.35 costs. 93.36 (h) "Pension benefit obligation" means the actuarial 94.1 present value of credited projected benefits, determined as the 94.2 actuarial present value of benefits estimated to be payable in 94.3 the future as a result of employee service attributing an equal 94.4 benefit amount, including the effect of projected salary 94.5 increases and any step rate benefit accrual rate differences, to 94.6 each year of credited and expected future employee service. 94.7 Subd. 2. [REQUIREMENTS.] (a) It is the policy of the 94.8 legislature that it is necessary and appropriate to determine 94.9 annually the financial status of tax supported retirement and 94.10 pension plans for public employees. To achieve this goal: 94.11 (1) the legislative commission on pensions and retirement 94.12 shall have prepared by the actuary retained by the commission 94.13 annual actuarial valuations of the retirement plans enumerated 94.14 in section 3.85, subdivision 11, paragraph (b), and quadrennial 94.15 experience studies of the retirement plans enumerated in section 94.16 3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7); 94.17 and 94.18 (2) the commissioner of finance may have prepared by the 94.19 actuary retained by the commission, two years after each set of 94.20 quadrennial experience studies, quadrennial projection 94.21 valuations of at least one of the retirement plans enumerated in 94.22 section 3.85, subdivision 11, paragraph (b), for which the 94.23 commissioner determines that the analysis may be beneficial. 94.24 (b) The governing or managing board or administrative 94.25 officials of each public pension and retirement fund or plan 94.26 enumerated in section 356.20, subdivision 2, clauses (9), (10), 94.27 and (12), shall have prepared by an approved actuary annual 94.28 actuarial valuations of their respective funds as provided in 94.29 this section. This requirement also applies to any fund or plan 94.30 that is the successor to any organization enumerated in section 94.31 356.20, subdivision 2, or to the governing or managing board or 94.32 administrative officials of any newly formed retirement fund, 94.33 plan, or association operating under the control or supervision 94.34 of any public employee group, governmental unit, or institution 94.35 receiving a portion of its support through legislative 94.36 appropriations, and any local police or fire fundcoming within95.1the provisions ofto which section 356.216 applies. 95.2 Subd. 2a. [PROJECTION VALUATION REQUIREMENTS.] (a) A 95.3 quadrennial projection valuationrequiredauthorized under 95.4 subdivision 2 is intended to serve as an additional analytical 95.5 tool with which policy makers may assess the future funding 95.6 status of public plans through forecasting and testing various 95.7 potential outcomes over time if certain plan assumptions or 95.8 valuation methods were to be modified. 95.9 (b) In consultation with the retirement fund directors, the 95.10 state economist, the state demographer, the commissioner of 95.11 finance, and the commissioner of employee relations, the actuary 95.12 retained by the legislative commission on pensions and 95.13 retirement shall perform the quadrennial projection valuations 95.14 on behalf of the commissioner of finance, testing future 95.15 implications for plan funding by modifying assumptions and 95.16 methods currently in place. The commission-retained actuary 95.17 shall provide advice to the commissioner as to the periods over 95.18 which such projections should be made, the nature and scope of 95.19 the scenarios to be analyzed, and the measures of funding status 95.20 to be employed, and shall report the results of these analyses 95.21 in the same manner as for quadrennial experience studies. 95.22 Subd. 3. [REPORTS.] (a) The actuarial valuations required 95.23 annually must be made as of the beginning of each fiscal year. 95.24 (b) Two copies of the valuation must be delivered to the 95.25 executive director of the legislative commission on pensions and 95.26 retirement, to the commissioner of finance and to the 95.27 legislative reference library, not later than the first day of 95.28 the sixth month occurring after the end of the previous fiscal 95.29 year. 95.30 (c) Two copies of a quadrennial experience study must be 95.31 filed with the executive director of the legislative commission 95.32 on pensions and retirement, with the commissioner of finance, 95.33 and with the legislative reference library, not later than the 95.34 first day of the 11th month occurring after the end of the last 95.35 fiscal year of the four-year period which the experience study 95.36 covers. 96.1 (d) For actuarial valuations and experience studies 96.2 prepared at the direction of the legislative commission on 96.3 pensions and retirement, two copies of the document must be 96.4 delivered to the governing or managing board or administrative 96.5 officials of the applicable public pension and retirement fund 96.6 or plan. 96.7 Subd. 4. [ACTUARIAL VALUATION; CONTENTS.] (a) The 96.8 actuarial valuation must be made in conformity with the 96.9 requirements of the definition contained in subdivision 1 and 96.10 the most recent standards for actuarial work adopted by the 96.11 legislative commission on pensions and retirement. 96.12 (b) The actuarial valuation must measure all aspects of the 96.13 benefit plan of the fund in accordance with changes in benefit 96.14 plans, if any, and salaries reasonably anticipated to be in 96.15 force during the ensuing fiscal year. The actuarial valuation 96.16 must be prepared in accordance with the entry age actuarial cost 96.17 method. The actuarial valuation required under this section 96.18 must include the information required in subdivisions4a5 to4k96.19 15. 96.20 Subd.4a5. [NORMAL COST.] For a fund providing benefits 96.21 in whole or in part under a defined benefit plan, the actuarial 96.22 valuation must indicate the level normal cost of the benefits 96.23 providedbyunder the laws governing the fund as of the date of 96.24 the valuation, calculated in accordance with the entry age 96.25 actuarial cost method. The normal cost must be expressed as a 96.26 level percentage of the present value of future payrolls of the 96.27 active participants of the fund as of the date of the valuation. 96.28 Subd.4b6. [ACCRUED LIABILITY.] For a fund providing 96.29 benefits under a defined benefit plan, the actuarial valuation 96.30 must contain an exhibit indicating the actuarial accrued 96.31 liabilities of the fund. This figure is the present value of 96.32 future benefits,reduced by the present value of future normal 96.33 costs, calculated in accordance with the entry age actuarial 96.34 cost method. 96.35 Subd.4c7. [DEFINED CONTRIBUTION PLAN ACCUMULATIONS.] For 96.36 each fund providing benefits underthea money purchase or 97.1 defined contribution plan, the actuarial valuationshallmust 97.2 contain an exhibit indicating the member contributions 97.3 accumulated at interest, as apportioned to members accounts, to 97.4 the date of the valuation. These accumulationsshallmust be 97.5 separately tabulated in a manner which properly reflects any 97.6 differences in money purchase or defined contribution annuity 97.7 rates which may apply. 97.8 Subd.4d8. [INTEREST AND SALARY ASSUMPTIONS.] (a) The 97.9 actuarial valuation must use the applicable following 97.10 preretirement interest assumption and the applicable following 97.11 postretirement interest assumption: 97.12 preretirement postretirement 97.13 interest rate interest rate 97.14 plan assumption assumption 97.15 general state employees 97.16 retirement plan 8.5% 6.0% 97.17 correctional state employees 97.18 retirement plan 8.5 6.0 97.19 state patrol retirement plan 8.5 6.0 97.20 legislators retirement plan 8.5 6.0 97.21 elective state officers 97.22 retirement plan 8.5 6.0 97.23 judges retirement plan 8.5 6.0 97.24 general public employees 97.25 retirement plan 8.5 6.0 97.26 public employees police and fire 97.27 retirement plan 8.5 6.0 97.28 local government correctional 97.29 service retirement plan 8.5 6.0 97.30 teachers retirement plan 8.5 6.0 97.31 Minneapolis employees 97.32 retirement plan 6.0 5.0 97.33 Duluth teachers retirement plan 8.5 8.5 97.34 Minneapolis teachers retirement 97.35 plan 8.5 8.5 97.36 St. Paul teachers retirement 97.37 plan 8.5 8.5 97.38 Minneapolis police relief 97.39 association 6.0 6.0 97.40other localFairmont police relief 97.41associationsassociation 5.0 5.0 97.42 Minneapolis fire department 97.43 relief association 6.0 6.0 97.44other local salaried firefighters97.45 Virginia fire department 97.46 reliefassociationsassociation 5.0 5.0 97.47 local monthly benefit volunteer 97.48 firefighters relief associations 5.0 5.0 97.49 (b) The actuarial valuation must use the applicable 97.50 following single rate future salary increase assumption, the 97.51 applicable following modified single rate future salary increase 97.52 assumption, or the applicable following graded rate future 97.53 salary increase assumption: 97.54 (1) single rate future salary increase assumption 98.1 future salary 98.2 plan increase assumption 98.3 legislators retirement plan 5.0% 98.4 elective state officers retirement 98.5 plan 5.0 98.6 judges retirement plan 5.0 98.7 Minneapolis police relief association 4.0 98.8other localFairmont police relief 98.9associationsassociation 3.5 98.10 Minneapolis fire department relief 98.11 association 4.0 98.12other local salaried firefighters98.13 Virginia fire department 98.14 reliefassociationsassociation 3.5 98.15 (2) modified single rate future salary increase assumption 98.16 future salary 98.17 plan increase assumption 98.18 Minneapolis employees the prior calendar year 98.19 retirement plan amount increased first by 98.20 1.0198 percent to prior 98.21 fiscal year date and 98.22 then increased by 4.0 98.23 percent annually for 98.24 each future year 98.25 (3) select and ultimate future salary increase assumption 98.26 or graded rate future salary increase assumption 98.27 future salary 98.28 plan increase assumption 98.29 general state employees select calculation and 98.30 retirement plan assumption A 98.31 correctional state employees 98.32 retirement plan assumption H 98.33 state patrol retirement plan assumption H 98.34 general public employees select calculation and 98.35 retirement plan assumption B 98.36 public employees police and fire 98.37 fund retirement plan assumption C 98.38 local government correctional service 98.39 retirement plan assumption H 98.40 teachers retirement plan assumption D 98.41 Duluth teachers retirement plan assumption E 98.42 Minneapolis teachers retirement plan assumption F 98.43 St. Paul teachers retirement plan assumption G 98.44 98.45 The select calculation is: 98.46 during the ten-year select period,0.2a designated percent 98.47 is multiplied by the result of ten minus T, where T is 98.48 the number of completed years of service, and is added 98.49 to the applicable future salary increase assumption. The 98.50 designated percent is 0.2 percent for the correctional state 98.51 employees retirement plan, the state patrol retirement 98.52 plan, the public employees police and fire plan, and the 98.53 local government correctional service plan; 0.3 percent 98.54 for the general state employees retirement plan, the 98.55 general public employees retirement plan, the teachers 98.56 retirement plan, the Duluth teachers retirement fund 98.57 association, and the St. Paul teachers retirement fund 98.58 association; and 0.4 percent for the Minneapolis teachers 98.59 retirement fund association. 98.60 98.61 The ultimate future salary increase assumption is: 98.62 98.63 age A B C D E F G H 98.64 16 6.95% 6.95% 11.50% 8.20% 8.00%7.50%7.25% 7.7500 98.65 6.50 6.90 98.66 17 6.90 6.90 11.50 8.15 8.007.507.257.7500 99.1 6.50 6.90 99.2 18 6.85 6.85 11.50 8.10 8.007.507.257.7500 99.3 6.50 6.90 99.4 19 6.80 6.80 11.50 8.05 8.007.507.257.7500 99.5 6.50 6.90 99.6 20 6.756.7511.508.008.007.507.257.7500 99.7 6.40 6.00 6.90 6.50 6.90 99.8 216.706.7011.507.958.007.507.257.1454 99.9 6.75 6.40 6.00 6.90 6.50 6.90 99.10 226.656.6511.007.908.007.507.257.0725 99.11 6.75 6.40 6.00 6.90 6.50 6.90 99.12 23 6.75 6.40 10.50 6.00 6.85 6.50 6.85 7.0544 99.13 246.666.5510.007.807.807.307.207.0363 99.14 6.75 6.40 6.00 6.80 6.50 6.80 99.15 256.506.509.507.757.707.207.157.0000 99.16 6.75 6.40 6.00 6.75 6.50 6.75 99.17 266.456.459.207.707.607.107.107.0000 99.18 6.75 6.36 6.00 6.70 6.50 6.70 99.19 276.406.408.907.657.507.007.057.0000 99.20 6.75 6.32 6.00 6.65 6.50 6.65 99.21 286.356.358.607.607.406.907.007.0000 99.22 6.75 6.28 6.00 6.60 6.50 6.60 99.23 296.306.308.307.557.306.806.957.0000 99.24 6.75 6.24 6.00 6.55 6.50 6.55 99.25 306.256.308.007.507.206.706.907.0000 99.26 6.75 6.20 6.00 6.50 6.50 6.50 99.27 316.206.257.807.457.106.606.857.0000 99.28 6.75 6.16 6.00 6.45 6.50 6.45 99.29 326.156.217.607.407.006.506.807.0000 99.30 6.75 6.12 6.00 6.40 6.50 6.40 99.31 336.106.177.407.306.906.406.757.0000 99.32 6.75 6.08 6.00 6.35 6.50 6.35 99.33 346.056.097.207.106.806.306.707.0000 99.34 6.75 6.04 6.00 6.30 6.50 6.30 99.35 356.006.057.007.006.706.206.657.0000 99.36 6.75 6.00 6.00 6.25 6.50 6.25 99.37 366.956.016.806.856.606.106.606.9019 99.38 6.75 5.96 6.00 6.20 6.50 6.20 99.39 375.905.976.606.706.506.006.556.8074 99.40 6.75 5.92 6.00 6.15 6.50 6.15 99.41 385.855.936.406.556.405.906.506.7125 99.42 6.75 5.88 5.90 6.10 6.50 6.10 99.43 395.805.896.206.406.305.806.406.6054 99.44 6.75 5.84 5.80 6.05 6.50 6.05 99.45 405.755.856.006.256.205.706.306.5000 99.46 6.75 5.80 5.70 6.00 6.50 6.00 99.47 415.705.815.906.106.105.606.206.3540 99.48 6.75 5.76 5.60 5.90 6.50 5.95 99.49 425.655.775.805.956.005.506.106.2087 99.50 6.75 5.72 5.50 5.80 6.50 5.90 99.51 435.605.735.705.805.905.456.006.0622 99.52 6.65 5.68 5.40 5.70 6.50 5.85 99.53 445.555.695.605.655.805.405.905.9048 99.54 6.55 5.64 5.30 5.60 6.50 5.80 99.55 455.505.655.505.505.705.355.805.7500 99.56 6.45 5.60 5.20 5.50 6.50 5.75 99.57 465.455.625.455.455.605.305.705.6940 99.58 6.35 5.56 5.10 5.40 6.40 5.70 99.59 475.405.595.405.405.505.255.65 5.6375 99.60 6.25 5.52 5.00 5.30 6.30 99.61 485.355.565.355.355.455.205.60 5.5822 99.62 6.15 5.48 5.00 5.20 6.20 99.63 495.305.535.305.305.405.155.55 5.5404 99.64 6.05 5.44 5.00 5.10 6.10 99.65 505.255.505.255.255.355.105.50 5.5000 99.66 5.95 5.40 5.00 5.00 6.00 99.67 515.205.455.255.205.305.055.45 5.4384 99.68 5.85 5.36 5.00 5.00 5.90 99.69 525.155.405.255.155.255.005.40 5.3776 99.70 5.75 5.32 5.00 5.00 5.80 99.71 535.105.355.255.105.255.005.35 5.3167 100.1 5.65 5.28 5.00 5.00 5.70 100.2 545.055.305.255.055.255.005.30 5.2826 100.3 5.55 5.24 5.00 5.00 5.60 100.4 555.005.255.25 5.005.255.005.25 5.2500 100.5 5.45 5.20 5.00 5.50 100.6 565.005.205.25 5.005.255.005.255.2500 100.7 5.35 5.16 5.00 5.40 5.20 100.8 575.005.155.25 5.005.255.005.255.2500 100.9 5.25 5.12 5.00 5.30 5.15 100.10 585.005.105.255.005.255.005.255.2500 100.11 5.25 5.08 5.10 5.00 5.20 5.10 100.12 595.005.055.255.005.255.005.255.2500 100.13 5.25 5.04 5.20 5.00 5.10 5.05 100.14 605.005.00 5.255.005.255.005.255.2500 100.15 5.25 5.30 5.00 5.00 100.16 615.005.00 5.255.005.255.005.255.2500 100.17 5.25 5.40 5.00 5.00 100.18 625.005.00 5.255.005.255.005.255.2500 100.19 5.25 5.50 5.00 5.00 100.20 635.005.00 5.255.005.255.005.255.2500 100.21 5.25 5.60 5.00 5.00 100.22 645.005.00 5.255.005.255.005.255.2500 100.23 5.25 5.70 5.00 5.00 100.24 655.005.00 5.255.005.255.005.255.2500 100.25 5.25 5.70 5.00 5.00 100.26 665.005.00 5.255.005.255.005.255.2500 100.27 5.25 5.70 5.00 5.00 100.28 675.005.00 5.255.005.255.005.255.2500 100.29 5.25 5.70 5.00 5.00 100.30 685.005.00 5.255.005.255.005.255.2500 100.31 5.25 5.70 5.00 5.00 100.32 695.005.00 5.255.005.255.005.255.2500 100.33 5.25 5.70 5.00 5.00 100.34 705.005.00 5.255.005.255.005.255.2500 100.35 5.25 5.70 5.00 5.00 100.36 715.005.005.00100.37 5.25 5.70 100.38 (c) The actuarial valuation must use the applicable 100.39 following payroll growth assumption for calculating the 100.40 amortization requirement for the unfunded actuarial accrued 100.41 liability where the amortization retirement is calculated as a 100.42 level percentage of an increasing payroll: 100.43 payroll growth 100.44 plan assumption 100.45 general state employees retirement plan 5.00% 100.46 correctional state employees retirement plan 5.00 100.47 state patrol retirement plan 5.00 100.48 legislators retirement plan 5.00 100.49 elective state officers retirement plan 5.00 100.50 judges retirement plan 5.00 100.51 general public employees retirement plan 6.00 100.52 public employees police and fire 100.53 retirement plan 6.00 100.54 local government correctional service 100.55 retirement plan 6.00 100.56 teachers retirement plan 5.00 100.57 Duluth teachers retirement plan 5.00 100.58 Minneapolis teachers retirement plan 5.00 100.59 St. Paul teachers retirement plan 5.00 100.60 Subd.4e9. [OTHER ASSUMPTIONS.] The actuarial valuation 100.61 must use assumptions concerning mortality, disability, 100.62 retirement, withdrawal, retirement age, and any other relevant 101.1 demographic or economic factor. These assumptions must be set 101.2 at levels consistent with those determined in the most recent 101.3 quadrennial experience study completed under subdivision516, 101.4 if required, or representative of the best estimate of future 101.5 experience, if a quadrennial experience study is not required. 101.6 The actuarial valuation must contain an exhibit indicating any 101.7 actuarial assumptions used in preparing the valuation report. 101.8 Subd.4f10. [PUBLIC SECTOR ACCOUNTING DISCLOSURE 101.9 INFORMATION.] The actuarial valuation must contain those 101.10 actuarial calculations that are necessary to allow the 101.11 retirement plan administration or participating employing units 101.12 to prepare the pension-related portions of annual financial 101.13 reporting that meet generally accepted accounting principles for 101.14 the public sector. 101.15 Subd.4g11. [AMORTIZATION CONTRIBUTIONS.] (a) In addition 101.16 to the exhibit indicating the level normal cost, the actuarial 101.17 valuation must contain an exhibit indicating the additional 101.18 annual contribution sufficient to amortize the unfunded 101.19 actuarial accrued liability. For funds governed by chapters 3A, 101.20 352, 352B, 352C, 353, 354, 354A, and 490, the additional 101.21 contribution must be calculated on a level percentage of covered 101.22 payroll basis by the established date for full funding in effect 101.23 when the valuation is prepared. For funds governed by chapter 101.24 3A, sections 352.90 through 352.951, chapters 352B, 352C, 101.25 sections 353.63 through 353.68, and chapters 353C, 354A, and 101.26 490, the level percent additional contribution must be 101.27 calculated assuming annual payroll growth of 6.5 percent. For 101.28 funds governed by sections 352.01 through 352.86 and chapter 101.29 354, the level percent additional contribution must be 101.30 calculated assuming an annual payroll growth of five percent. 101.31 For the fund governed by sections 353.01 through 353.46, the 101.32 level percent additional contribution must be calculated 101.33 assuming an annual payroll growth of six percent. For all other 101.34 funds, the additional annual contribution must be calculated on 101.35 a level annual dollar amount basis. 101.36 (b) For any fund other than the Minneapolis employees 102.1 retirement fund and the public employees retirement association 102.2 general plan, if there has not been a change in the actuarial 102.3 assumptions used for calculating the actuarial accrued liability 102.4 of the fund, a change in the benefit plan governing annuities 102.5 and benefits payable from the fund, a change in the actuarial 102.6 cost method used in calculating the actuarial accrued liability 102.7 of all or a portion of the fund, or a combination of the three, 102.8 which change or changes by itself or by themselves without 102.9 inclusion of any other items of increase or decrease produce a 102.10 net increase in the unfunded actuarial accrued liability of the 102.11 fund, the established date for full funding is the first 102.12 actuarial valuation date occurring after June 1, 2020. 102.13 (c) For any fund or plan other than the Minneapolis 102.14 employees retirement fund and the public employees retirement 102.15 association general plan, if there has been a change in any or 102.16 all of the actuarial assumptions used for calculating the 102.17 actuarial accrued liability of the fund, a change in the benefit 102.18 plan governing annuities and benefits payable from the fund, a 102.19 change in the actuarial cost method used in calculating the 102.20 actuarial accrued liability of all or a portion of the fund, or 102.21 a combination of the three, and the change or changes, by itself 102.22 or by themselves and without inclusion of any other items of 102.23 increase or decrease, produce a net increase in the unfunded 102.24 actuarial accrued liability in the fund, the established date 102.25 for full funding must be determined using the following 102.26 procedure: 102.27 (i) the unfunded actuarial accrued liability of the fund 102.28 must be determined in accordance with the plan provisions 102.29 governing annuities and retirement benefits and the actuarial 102.30 assumptions in effect before an applicable change; 102.31 (ii) the level annual dollar contribution or level 102.32 percentage, whichever is applicable, needed to amortize the 102.33 unfunded actuarial accrued liability amount determined under 102.34 item (i) by the established date for full funding in effect 102.35 before the change must be calculated using the interest 102.36 assumption specified in subdivision4d8 in effect before the 103.1 change; 103.2 (iii) the unfunded actuarial accrued liability of the fund 103.3 must be determined in accordance with any new plan provisions 103.4 governing annuities and benefits payable from the fund and any 103.5 new actuarial assumptions and the remaining plan provisions 103.6 governing annuities and benefits payable from the fund and 103.7 actuarial assumptions in effect before the change; 103.8 (iv) the level annual dollar contribution or level 103.9 percentage, whichever is applicable, needed to amortize the 103.10 difference between the unfunded actuarial accrued liability 103.11 amount calculated under item (i) and the unfunded actuarial 103.12 accrued liability amount calculated under item (iii) over a 103.13 period of 30 years from the end of the plan year in which the 103.14 applicable change is effective must be calculated using the 103.15 applicable interest assumption specified in subdivision4d8 in 103.16 effect after any applicable change; 103.17 (v) the level annual dollar or level percentage 103.18 amortization contribution under item (iv) must be added to the 103.19 level annual dollar amortization contribution or level 103.20 percentage calculated under item (ii); 103.21 (vi) the period in which the unfunded actuarial accrued 103.22 liability amount determined in item (iii) is amortized by the 103.23 total level annual dollar or level percentage amortization 103.24 contribution computed under item (v) must be calculated using 103.25 the interest assumption specified in subdivision4d8 in effect 103.26 after any applicable change, rounded to the nearest integral 103.27 number of years, but not to exceed 30 years from the end of the 103.28 plan year in which the determination of the established date for 103.29 full funding using the procedure set forth in this clause is 103.30 made and not to be less than the period of years beginning in 103.31 the plan year in which the determination of the established date 103.32 for full funding using the procedure set forth in this clause is 103.33 made and ending by the date for full funding in effect before 103.34 the change; and 103.35 (vii) the period determined under item (vi) must be added 103.36 to the date as of which the actuarial valuation was prepared and 104.1 the date obtained is the new established date for full funding. 104.2 (d) For the Minneapolis employees retirement fund, the 104.3 established date for full funding is June 30, 2020. 104.4 (e) For the general employees retirement plan of the public 104.5 employees retirement associationgeneral plan, the established 104.6 date for full funding is June 30, 2031. 104.7 (f) For the retirement plans for which the annual actuarial 104.8 valuation indicates an excess of valuation assets over the 104.9 actuarial accrued liability, the valuation assets in excess of 104.10 the actuarial accrued liability must be recognized as a 104.11 reduction in the current contribution requirements by an amount 104.12 equal to the amortization of the excess expressed as a level 104.13 percentage of pay over a 30-year period beginning anew with each 104.14 annual actuarial valuation of the plan. 104.15 Subd.4h12. [ACTUARIAL GAINS AND LOSSES.] The actuarial 104.16 valuation must contain an exhibit consisting of an analysis by 104.17 the actuary explaining the net increase or decrease in the 104.18 unfunded actuarial accrued liability since the last valuation. 104.19 The explanation must subdivide the net increase or decrease in 104.20 the unfunded actuarial accrued liability into at least the 104.21 following parts: 104.22(a)(1) increases or decreases in the unfunded actuarial 104.23 accrued liability because of changes in benefits; 104.24(b)(2) increases and decreases in the unfunded actuarial 104.25 accrued liability because of changes in actuarial assumptions; 104.26(c)(3) increases or decreases in the unfunded actuarial 104.27 accrued liability attributable to actuarial gains or losses 104.28 resulting from any experience deviations from the assumptions on 104.29 which the valuation is based, as follows: 104.30 (i) actual investment earnings; 104.31 (ii) actual postretirement mortality rates; 104.32 (iii) actual salary increase rates; and 104.33 (iv) the remainder of the increase or decrease not 104.34 attributable to any separate source; 104.35(d)(4) increases or decreases in unfunded actuarial 104.36 accrued liability because of other reasons, including the effect 105.1 of any amortization contribution paid or additional amortization 105.2 contribution previously calculated but unpaid; and 105.3(e)(5) increases or decreases in unfunded actuarial 105.4 accrued liability because of changes in eligibility requirements 105.5 or groups included in the membership of the fund. 105.6 Subd.4i13. [MEMBERSHIP TABULATION.] (a) The actuarial 105.7 valuation must contain a tabulation of active membership and 105.8 annuitants in the fund. If the membership of a fund is under 105.9 more than one general benefit program, a separate tabulation 105.10 must be made for each general benefit program. 105.11 (b) The tabulations must be prepared by the administration 105.12 of the pension fund and must contain the following information: 105.13 (1) Active members Number 105.14 As of last valuation date 105.15 New entrants 105.16 Total 105.17 Separations from active service 105.18 Refund of contributions 105.19 Separation with deferred annuity 105.20 Separation with neither refund 105.21 nor deferred annuity 105.22 Disability 105.23 Death 105.24 Retirement with service annuity 105.25 Total separations 105.26 As of current valuation date 105.27 (2) Annuitants Number 105.28 As of last valuation date 105.29 New entrants 105.30 Total 105.31 Terminations 105.32 Deaths 105.33 Other 105.34 Total terminations 105.35 As of current valuation date 105.36 (c) The tabulation required under paragraph (b), clause 106.1 (2), must be made separately for each of the following classes 106.2 of benefit recipients: 106.3 (1) service retirement annuitants; 106.4 (2) disability benefit recipients; 106.5 (3) survivor benefit recipients; and 106.6 (4) deferred annuitants. 106.7 Subd.4j14. [ADMINISTRATIVE EXPENSES.] (a) The actuarial 106.8 valuation must indicate the administrative expenses of the fund, 106.9 expressed both in dollars and as a percentage of covered payroll. 106.10 (b) Administrative expenses are the costs incurred by the 106.11 retirement plans in the course of operating the plan, excluding 106.12 investment expenses. Investment expenses include all expenses 106.13 incurred for the retention of professional external investment 106.14 managers and professional investment consultants, custodian bank 106.15 fees, investment transaction costs, and the costs incurred by 106.16 the retirement plans to manage investment portfolios or assets 106.17 internally. Investment expenses must be deducted from the 106.18 investment return used in the actuarial valuation, and must not 106.19 be included in administrative expenses when calculating the 106.20 allowance for expenses. 106.21 Subd.4k15. [BENEFIT PLAN SUMMARY.] The actuarial 106.22 valuation must contain a summary of the principal provisions of 106.23 the benefit plan upon which the valuation is based. 106.24 Subd.516. [QUADRENNIAL EXPERIENCE STUDY; CONTENTS.] A 106.25 quadrennial experience study, if required, must contain an 106.26actuarialanalysis by the approved actuary of the experience of 106.27 the fund and a comparison of the experience with the actuarial 106.28 assumptions on which the most recent actuarial valuation of the 106.29 retirement fund was based. 106.30 Subd.617. [ACTUARIAL SERVICES BY APPROVED ACTUARIES.] 106.31 (a) The actuarial valuation or quadrennial experience study must 106.32 be made and any actuarial consulting services for a retirement 106.33 fund or plan must be provided by an approved actuary. The 106.34 actuarial valuation or quadrennial experience study must include 106.35 a signed written declaration that it has been prepared according 106.36 to sections 356.20 to 356.23 and according to the most recent 107.1 standards for actuarial work adopted by the legislative 107.2 commission on pensions and retirement. 107.3 (b) Actuarial valuations,or experience studies prepared by 107.4 an approved actuary retained by a retirement fund or plan must 107.5 be submitted to the legislative commission on pensions and 107.6 retirement within ten days of the submission of the document to 107.7 the retirement fund or plan. 107.8 Subd.718. [ESTABLISHMENT OF ACTUARIAL ASSUMPTIONS.] (a) 107.9 The actuarial assumptions used for the preparation of actuarial 107.10 valuations under this section that are other than those set 107.11 forth in this section may be changed only with the approval of 107.12 the legislative commission on pensions and retirement. 107.13 (b) A change in the applicable actuarial assumptions may be 107.14 proposed by the governing board of the applicable pension fund 107.15 or relief association, by the actuary retained by the 107.16 legislative commission on pensions and retirement, by the 107.17 actuarial advisor to a pension fund governed by chapter 352, 107.18 353, 354, or 354A, or by the actuary retained by a local police 107.19 or firefighters relief association governed by sections 69.77 or 107.20 69.771 to 69.776, if one is retained. 107.21 Sec. 8. Minnesota Statutes 2000, section 356.216, is 107.22 amended to read: 107.23 356.216 [CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE 107.24 AND FIRE FUNDS.] 107.25 (a) The provisions of section 356.215governingthat govern 107.26 the contents of actuarial valuationsshallmust apply to any 107.27 local police or fire pension fund or relief association required 107.28 to make an actuarial report under this section, except as 107.29 follows: 107.30 (1) in calculating normal cost and other requirements, if 107.31 required to be expressed as a level percentage of covered 107.32 payroll, the salaries used in computing covered payrollshall107.33 must be the maximum rate of salaryfromon which retirement and 107.34 survivorship credits and amounts of benefits are determined and 107.35 from which any member contributions are calculated and deducted; 107.36 (2) in lieu of the amortization date specified in section 108.1 356.215, subdivision4g11, the appropriate amortization target 108.2 date specified in section 69.77, subdivision 2b, or 69.773, 108.3 subdivision 4, clause (c),shallmust be used in calculating any 108.4 required amortization contribution; 108.5 (3) in addition to the tabulation of active members and 108.6 annuitants provided for in section 356.215, subdivision4i13, 108.7 the member contributions for active members for the calendar 108.8 year and the prospective annual retirement annuities under the 108.9 benefit plan for active membersshallmust be reported; 108.10 (4) actuarial valuations requiredpursuant tounder section 108.11 69.773, subdivision 2,shallmust be made at least every four 108.12 years and actuarial valuations requiredpursuant tounder 108.13 section 69.77 shall be made annually;and108.14 (5) the actuarial balance sheet showing accrued assets 108.15 valued at market value if the actuarial valuation is required to 108.16 be prepared at least every four years or valued as current 108.17 assets under section 356.215, subdivision 1, clause (6), or 108.18 paragraph (b), whichever applies, if the actuarial valuation is 108.19 required to be prepared annually, actuarial accrued liabilities, 108.20 and the unfunded actuarial accrued liabilityshallmust include 108.21 the following required reserves: 108.22(a)(i) For active members 108.23 1. Retirement benefits 108.24 2. Disability benefits 108.25 3. Refund liability due to death or withdrawal 108.26 4. Survivors' benefits 108.27(b)(ii) For deferred annuitants' benefits 108.28(c)(iii) For former members without vested rights 108.29(d)(iv) For annuitants 108.30 1. Retirement annuities 108.31 2. Disability annuities 108.32 3. Surviving spouses' annuities 108.33 4. Surviving children's annuities 108.34 In addition to those required reserves, separate items 108.35shallmust be shown for additional benefits, if any, which may 108.36 not be appropriately included in the reserves listed above.; and 109.1 (6) actuarial valuationsshall beare due by the first day 109.2 of the seventh month after the end of the fiscal year which the 109.3 actuarial valuation covers. 109.4 (b) Forathe Minneapolis firefighters relief association 109.5 or the Minneapolis police relief associationin a city of the109.6first class with a population of more than 300,000, the 109.7 following provisions additionally apply: 109.8 (1) in calculating the actuarial balance sheet, unfunded 109.9 actuarial accrued liability, and amortization contribution of 109.10 the relief association, "current assets" means the value of all 109.11 assets at cost, including realized capital gains and losses, 109.12 plus or minus, whichever applies, the average value of total 109.13 unrealized capital gains or losses for the most recent 109.14 three-year period ending with the end of the plan year 109.15 immediately preceding the actuarial valuation report 109.16 transmission date; and 109.17 (2) in calculating the applicable portions of the actuarial 109.18 valuation, an annual preretirement interest assumption of six 109.19 percent, an annual postretirement interest assumption of six 109.20 percent, and an annual salary increase assumption of four 109.21 percent must be used. 109.22 Sec. 9. Minnesota Statutes 2000, section 356.217, is 109.23 amended to read: 109.24 356.217 [MODIFICATIONS IN ACTUARIAL SERVICES.] 109.25 (a) The cost of any requested benefit projections prepared 109.26 by the commission-retained actuary relating to the Minnesota 109.27 postretirement investment fundforat the request of the state 109.28 board of investment is payable by the state board of investment. 109.29 (b) Actuarial valuations under section 356.215, for July 1, 109.30 1991, and thereafter, are not required to have an individual 109.31 commentary section. The commentary section, if omitted from the 109.32 individual plan actuarialvaluationvaluations, must be included 109.33 in an appropriate generalized format as part of the report to 109.34 the legislature under section 3.85, subdivision 11. 109.35 (c) Actuarial valuations under section 356.215, for July 1, 109.36 1991, and thereafter, are not required to contain separate 110.1 actuarial valuation results for basic and coordinated programs 110.2 unless each program has a membership of at least ten percent of 110.3 the total membership of the fund. Actuarial valuations under 110.4 section 356.215, for July 1, 1991, and thereafter, are not 110.5 required to contain cash flow forecasts. 110.6 (d) Actuarial valuations of the public employees police and 110.7 fire fund local consolidation accounts for July 1, 1991, and 110.8 thereafter, are not required to contain separate tabulations or 110.9 summaries of active member, service retirement, disability 110.10 retirement, and survivor data for each local consolidation 110.11 account. 110.12 (e) The commission-retained actuary is: 110.13 (1) required to publish experience findings for those 110.14 retirement plans for which experience findings are required only 110.15 on a quadrennial basis for the four-year period ending June 30, 110.16 1992, and every four years thereafter; 110.17 (2) not required to prepare a separate experience analysis 110.18 or publish separate experience findings for basic and 110.19 coordinated programs if separate actuarial valuation results for 110.20 the programs are not required; and 110.21 (3) not required to calculate investment rate of return 110.22 experience results on any basis other than current asset value 110.23 as defined in section 356.215, subdivision 1,clause110.24(6)paragraph (f). 110.25 Sec. 10. Minnesota Statutes 2000, section 356.219, is 110.26 amended to read: 110.27 356.219 [DISCLOSURE OF PUBLIC PENSION PLAN INVESTMENT 110.28 PORTFOLIO AND PERFORMANCE INFORMATION.] 110.29 Subdivision 1. [REPORT REQUIRED.] (a) Except as indicated 110.30 in subdivision 4, the state board of investment, on behalf of 110.31 the public pension funds and programs for which it is the 110.32 investment authority, and any Minnesota public pension plan that 110.33 is not fully invested through the state board of investment, 110.34 including a local police or firefighters' relief association 110.35 governed by sections 69.77 or 69.771 to 69.775, shall report the 110.36 information specified in subdivision 3 to the state auditor. 111.1 The state auditor may prescribe a form or forms for the purposes 111.2 of the reporting requirements contained in this section. 111.3 (b) A local police or firefighters' relief association 111.4 governed by section 69.77 or sections 69.771 to 69.775 is fully 111.5 invested during a given calendar year for purposes of this 111.6 section if all assets of the applicable pension plan beyond 111.7 sufficient cash equivalent investments to cover six months 111.8 expected expenses are invested under section 11A.17. The board 111.9 of any fully invested public pension plan remains responsible 111.10 for submitting investment policy statements and subsequent 111.11 revisions as required by subdivision 3, paragraph (a). 111.12 (c) For purposes of this section, the state board of 111.13 investment is considered to be the investment authority for any 111.14 Minnesota public pension fund required to be invested by the 111.15 state board of investment under section 11A.23, or for any 111.16 Minnesota public pension fund authorized to invest in the 111.17 supplemental investment fund under section 11A.17 and which is 111.18 fully invested by the state board of investment. 111.19 Subd. 2. [ASSET CLASS DEFINITION.] (a) For purposes of 111.20 this section, "asset class" means any of the following asset 111.21 groupings as authorized in applicable law, bylaws, or articles 111.22 of incorporation: 111.23 (1) cash and any cash equivalent investments with 111.24 maturities of one year or less when issued; 111.25 (2) debt securities with maturities greater than one year 111.26 when issued, including but not limited to mortgage participation 111.27 certificates and pools, asset backed securities, guaranteed 111.28 investment contracts, and authorized government and corporate 111.29 obligations of corporations organized under laws of the United 111.30 States or any state, or the Dominion of Canada or its provinces; 111.31 (3) stocks or convertible issues of any corporation 111.32 organized under laws of the United States or any state, or the 111.33 Dominion of Canada or its provinces, or any corporation listed 111.34 on the New York Stock Exchange or the American Stock Exchange; 111.35 (4) international stocks or convertible issues; 111.36 (5) international debt securities; and 112.1 (6) real estate and venture capital. 112.2 (b) If the pension plan is investing under section 69.77, 112.3 subdivision 2g, section 69.775, or any other applicable law, in 112.4 open-end investment companies registered under the federal 112.5 Investment Company Act of 1940, or in the Minnesota supplemental 112.6 investment fund under section 11A.17, this investment must be 112.7 included under an asset class indicated in paragraph (a), 112.8 clauses (1) through (6), as appropriate. If the investment 112.9 vehicle includes underlying securities from more than one asset 112.10 class as indicated by paragraph (a), clauses (1) through (6), 112.11 the investment may be treated as a separate asset class. 112.12 Subd. 3. [CONTENT OF REPORTS.] (a) The report required by 112.13 subdivision 1 must include a written statement of the investment 112.14 policy in effect on June 30, 1997, if that statement has not 112.15 been previously submitted. Following that date, subsequent 112.16 reports must include investment policy changes and the effective 112.17 date of each policy change rather than a complete statement of 112.18 investment policy, unless the state auditor requests submission 112.19 of a complete current statement. The report must also include 112.20 the information required by the following paragraphs, as 112.21 applicable. 112.22 (b) If a public pension plan has a total market value of 112.23 $10,000,000 or more as of the beginning of the calendar year, 112.24 the report required by subdivision 1 must include the market 112.25 value of the total portfolio and the market value of each 112.26 investment account, investment portfolio, or asset class 112.27 included in the pension fund as of the beginning of the calendar 112.28 year and for each month, and the amount and date of each 112.29 injection and withdrawal to the total portfolio and to each 112.30 investment account, investment portfolio, or asset class. If a 112.31 public pension plan once files a report under this paragraph, it 112.32 must continue reporting under this paragraph for any subsequent 112.33 year in which the public pension plan is not fully invested as 112.34 specified in subdivision 1, paragraph (b), even if asset values 112.35 drop below $10,000,000 in market value inathat subsequent year. 112.36 (c) For public pension plans to which paragraph (b) 113.1 applies, the report required by subdivision 1 must also include 113.2 a calculation of the total time-weighted rate of return 113.3 available from index-matching investments assuming the asset 113.4 class performance targets and target asset mix indicated in the 113.5 written statement of investment policy. The provided 113.6 information must include a description of indices used in the 113.7 analyses and an explanation of why those indices are 113.8 appropriate. This paragraph does not apply to any fully 113.9 invested plan, as defined by subdivision 1, paragraph (b). 113.10 Reporting by the state board of investment under this paragraph 113.11 is limited to information on the Minnesota public pension plans 113.12 required to be invested by the state board of investment under 113.13 section 11A.23. 113.14 (d) If a public pension plan has a total market value of 113.15 less than $10,000,000 as of the beginning of the calendar year 113.16 and was never required to file under paragraph (b), the report 113.17 required by subdivision 1 must include the amount and date of 113.18 each total portfolio injection and withdrawal. In addition, the 113.19 report must include the market value of the total portfolio as 113.20 of the beginning of the calendar year and for each quarter. 113.21 (e) Any public pension plan reporting under paragraph (b) 113.22 or (d) may include computed time-weighted rates of return with 113.23 the report, in addition to all other required information, as 113.24 applicable. If these returns are supplied, the individual who 113.25 computed the returns must certify that the returns are net of 113.26 all costs and fees, including investment management fees, and 113.27 that the procedures used to compute the returns are consistent 113.28 with bank administration institute studies of investment 113.29 performance measurement and association of investment management 113.30 and research presentation standards. 113.31 (f) For public pension plans reporting under paragraph (d), 113.32 the public pension plan must retain supporting information 113.33 specifying the date and amount of each injection and withdrawal 113.34 to each investment account and investment portfolio. The public 113.35 pension plan must also retain the market value of each 113.36 investment account and investment portfolio at the beginning of 114.1 the calendar year and for each quarter. Information that is 114.2 required to be collected and retained for any given year or 114.3 years under this paragraph must be submitted to the office of 114.4 the state auditor if the office of the state auditor requests in 114.5 writing that the information be submitted by a public pension 114.6 plan or plans, or be submitted by the state board of investment 114.7 for any plan or plans for which the state board of investment is 114.8 the investment authority under this section. If the state 114.9 auditor requests information under this subdivision, and the 114.10 public plan fails to comply, the pension planwill beis subject 114.11 to penalties under subdivision 5, unless penalties are waived by 114.12 the state auditor under that subdivision. 114.13 Subd. 4. [ALTERNATIVE REPORTING; CERTAIN PLANS.] In lieu 114.14 of requirements in subdivision 3, the applicable administration 114.15 for the individual retirement account plans under chapters 354B 114.16 and 354D and for the University of Minnesota faculty retirement 114.17 plan shall submit computed time-weighted rates of return to the 114.18 office of the state auditor. These time-weighted rates of 114.19 return must cover the most recent complete calendar year, and 114.20 must be computed separately for each investment option available 114.21 to plan members. To the extent feasible, the returns must be 114.22 computed net of all investment costs, fees, and charges, so that 114.23 the computed return reflects the net time-weighted return 114.24 available to the investor. If this is not practical, the 114.25 existence of any remaining investment cost, fee, or charge which 114.26 could further lower the net return must be disclosed. The 114.27 procedures used to compute the returns must be consistent with 114.28 bank administration institute studies of investment performance 114.29 measurement and association of investment management and 114.30 research presentation standards, or, if applicable, securities 114.31 exchange commission requirements. The individual who computes 114.32 the returns must certify that the supplied returns comply with 114.33 this subdivision. The applicable plan administrator must also 114.34 submit, with the return information, the total amounts invested 114.35 by the plan members, in aggregate, in each investment option as 114.36 of the last day of the calendar year. 115.1 Subd. 5. [PENALTY FOR NONCOMPLIANCE.] Failure to comply 115.2 with the reporting requirements of this sectionshallmust 115.3 result in a withholding of all state aid or state appropriation 115.4 to which the pension plan may otherwise be directly or 115.5 indirectly entitled until the pension plan has complied with the 115.6 reporting requirements. The state auditor shall instruct the 115.7 commissioners of revenue and finance to withhold any state aid 115.8 or state appropriation from any pension plan that fails to 115.9 comply with the reporting requirements contained in this 115.10 section, until the pension plan has complied with the reporting 115.11 requirements. The state auditor may waive the withholding of 115.12 state aid or state appropriations if the state auditor 115.13 determines in writing that compliance would create an excessive 115.14 hardship for the pension plan. 115.15 Subd. 6. [INVESTMENT DISCLOSURE REPORT.] (a) The state 115.16 auditor shall prepare an annual report to the legislature on the 115.17 investment performance of the various public pension plans 115.18 subject to this section. The content of the report is specified 115.19 in paragraphs (b) to (e). 115.20 (b) For each public pension plan reporting under 115.21 subdivision 3, paragraph (b), the state auditor shall compute 115.22 and report total portfolio and asset class time-weighted rates 115.23 of return, net of all investment-related costs and fees. 115.24 (c) For each public pension plan reporting under 115.25 subdivision 3, paragraph (d), the state auditor shall compute 115.26 and report total portfolio time-weighted rates of return, net of 115.27 all costs and fees. If the state auditor has requested data for 115.28 a plan under subdivision 3, paragraph (f), the state auditor may 115.29 also compute and report asset class time-weighted rates of 115.30 return, net of all costs and fees. 115.31 (d) The report by the state auditor must include the 115.32 information submitted by the pension plans under subdivision 3, 115.33 paragraph (c), or a synopsis of that information. 115.34 (e) The report by the state auditor may also include a 115.35 presentation of multiyear performance, information collected 115.36 under subdivision 4, and any other information or analysis 116.1 deemed appropriate by the state auditor. 116.2 Subd. 7. [EXPENSE OF REPORT.] All administrative expenses 116.3 incurred relating to the investment report by the state auditor 116.4 described in subdivision 6 must be borne by the office of the 116.5 state auditor and may not be charged back to the entities 116.6 described in subdivisions 1 or 4. 116.7 Subd. 8. [TIMING OF REPORTS.] (a) For salaried firefighter 116.8 relief associations, police relief associations, and volunteer 116.9 firefighter relief associations, the information required under 116.10 this section must be submitted by the due date for reports 116.11 required under section 69.051, subdivision 1 or 1a, as 116.12 applicable. If a relief association satisfies the definition of 116.13 a fully invested plan under subdivision 1, paragraph (b), for 116.14 the calendar year covered by the report required under section 116.15 69.051, subdivision 1 or 1a, as applicable, the chief 116.16 administrative officer of the covered pension plan shall certify 116.17 that compliance on a form prescribed by the state auditor. The 116.18 state auditor shall transmit annually to the state board of 116.19 investment a list or lists of covered pension plans which 116.20 submitted certifications,in order to facilitate reporting by 116.21 the state board of investment under paragraph (c) of this 116.22 subdivision. 116.23 (b) For the Minneapolis teachers retirement fund 116.24 association, the St. Paul teachers retirement fund association, 116.25 the Duluth teachers retirement fund association, the Minneapolis 116.26 employees retirement fund, the University of Minnesota faculty 116.27 supplemental retirement plan, and the applicable administrators 116.28 for the University of Minnesota faculty retirement plan and the 116.29 individual retirement account plans under chapters 354B and 116.30 354D, the information required under this section must be 116.31 submitted to the state auditor by June 1 of each year. 116.32 (c) The state board of investment, on behalf of pension 116.33 funds specified in subdivision 1, paragraph (c), must report 116.34 information required under this section by September 1 of each 116.35 year. 116.36 Sec. 11. Minnesota Statutes 2000, section 356.22, is 117.1 amended to read: 117.2 356.22 [INTERPRETATION.] 117.3 Subdivision 1. [PROVISION OF ADDITIONAL VALUATIONS.] No 117.4 provision in sections 356.20 to 356.23shallmay be construedto117.5 in any way to limit any of the enumerated pension and retirement 117.6 funds from furnishing additional actuarial valuations or 117.7 experience studies, or additional data and actuarial 117.8 calculations, as may be requested by the legislature or any 117.9 standing committee or by the legislative commission on pensions 117.10 and retirement. 117.11 Subd. 2. [ACCELERATED AMORTIZATION.] No provision in 117.12 sections 356.20 to 356.23shallmay be construed to preclude any 117.13 public pension and retirement fund enumerated in section 356.20, 117.14 subdivision 2, from requesting, or the legislature from 117.15 providing for, the amortization of any unfunded actuarial 117.16 accrued liability in a shorter period of time than by the 117.17 established date for full funding as determinedpursuant to117.18 under section 356.215, subdivision4g11. 117.19 Subd. 3. [ADDITIONAL REQUIRED VALUATIONS.] The legislature 117.20 or any committee or commissionthereof now in existence or117.21hereafter createdwhich has assigned to it the subject of public 117.22 pensions or public retirement plans may require actuarial 117.23 valuations and experience studies in conformity with the 117.24 provisions of sections 356.20 to 356.23 from any public pension 117.25 and retirement plan or fund, whether enumerated in sections 117.26 356.20 to 356.23 or otherwise. 117.27 Sec. 12. Minnesota Statutes 2000, section 356.23, is 117.28 amended to read: 117.29 356.23 [SUPPLEMENTAL VALUATIONS; ALTERNATIVE REPORTS AND 117.30 VALUATIONS.] 117.31 Subdivision 1. [SUPPLEMENTAL ACTUARIAL VALUATIONS.] Any 117.32 supplemental actuarial valuations prepared on behalf of any 117.33 governing or managing board of any pension and retirement fund 117.34 enumerated in section 356.20, subdivision 2, by an approved 117.35 actuary,shallmust be prepared in accordance with the 117.36 applicable provisions of sections 356.20 to 356.23 and with the 118.1 standards adopted by the legislative commission on pensions and 118.2 retirement. Any pension and retirement fund which prepares an 118.3 alternative actuarial valuation under subdivision 2shallalso 118.4 must have a supplemental actuarial valuation prepared. 118.5 Subd. 2. [ALTERNATIVE REPORTS AND VALUATIONS.] In addition 118.6 to the financial reports and actuarial valuations required by 118.7 sections 356.20 to 356.23, the governing or managing board of 118.8 any fund concerned may submit alternative reports and actuarial 118.9 valuations for distribution to the legislature, any of its 118.10 committees, or the legislative commission on pensions and 118.11 retirement on a different basis or on different assumptions than 118.12 are specified in sections 356.20 to 356.23. The assumptions and 118.13 basis of any alternative reports and valuationsshallmust be 118.14 clearly stated in the document. 118.15 LIMITATIONS ON SUPPLEMENTAL AND 118.16 LOCAL RETIREMENT PLANS 118.17 Sec. 13. Minnesota Statutes 2001 Supplement, section 118.18 356.24, subdivision 1, is amended to read: 118.19 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 118.20 for a school district or other governmental subdivision or state 118.21 agency to levy taxes for, or to contribute public funds to a 118.22 supplemental pension or deferred compensation plan that is 118.23 established, maintained, and operated in addition to a primary 118.24 pension program for the benefit of the governmental subdivision 118.25 employees other than: 118.26 (1) to a supplemental pension plan that was established, 118.27 maintained, and operated before May 6, 1971; 118.28 (2) to a plan that provides solely for group health, 118.29 hospital, disability, or death benefits; 118.30 (3) to the individual retirement account plan established 118.31 by chapter 354B; 118.32 (4) to a plan that provides solely for severance pay under 118.33 section 465.72 to a retiring or terminating employee; 118.34 (5) for employees other than personnel employed by the 118.35 board of trustees of the Minnesota state colleges and 118.36 universities and covered under the higher education supplemental 119.1 retirement plan under chapter 354C, if the supplemental plan 119.2 coverage is provided for in a personnel policy of the public 119.3 employer or in the collective bargaining agreement between the 119.4 public employer and the exclusive representative of public 119.5 employees in an appropriate unit, in an amount matching employee 119.6 contributions on a dollar for dollar basis, but not to exceed an 119.7 employer contribution of $2,000 a year per employee; 119.8 (i) to the state of Minnesota deferred compensation plan 119.9 under section 352.96; or 119.10 (ii) in payment of the applicable portion of the 119.11 contribution made to any investment eligible under section 119.12 403(b) of the Internal Revenue Code, if the employing unit has 119.13 complied with any applicable pension plan provisions of the 119.14 Internal Revenue Code with respect to the tax-sheltered annuity 119.15 program during the preceding calendar year; 119.16 (6) for personnel employed by the board of trustees of the 119.17 Minnesota state colleges and universities and not covered by 119.18 clause (5), to the supplemental retirement plan under chapter 119.19 354C, if the supplemental plan coverage is provided for in a 119.20 personnel policy or in the collective bargaining agreement of 119.21 the public employer with the exclusive representative of the 119.22 covered employees in an appropriate unit, in an amount matching 119.23 employee contributions on a dollar for dollar basis, but not to 119.24 exceed an employer contribution of $2,700 a year for each 119.25 employee; 119.26 (7) to a supplemental plan or to a governmental trust to 119.27 save for postretirement health care expenses qualified for 119.28 tax-preferred treatment under the Internal Revenue Code, if the 119.29 supplemental plan coverage is provided for in a personnel policy 119.30 or in the collective bargaining agreement of a public employer 119.31 with the exclusive representative of the covered employees in an 119.32 appropriate unit;or119.33 (8) to the laborer's national industrial pension fund for 119.34 the employees of a governmental subdivision who are covered by a 119.35 collective bargaining agreement that provides for coverage by 119.36 that fund and that sets forth a fund contribution rate, but not 120.1 to exceed an employer contribution of $2,000 per year per 120.2 employee; 120.3 (9) to the plumbers' and pipefitters' national pension fund 120.4 for the employees of a governmental subdivision who are covered 120.5 by a collective bargaining agreement that provides for coverage 120.6 by that fund and that sets forth a fund contribution rate, but 120.7 not to exceed an employer contribution of $2,000 per year per 120.8 employee; 120.9 (10) to the international union of operating engineers 120.10 pension fund for the employees of a governmental subdivision who 120.11 are covered by a collective bargaining agreement that provides 120.12 for coverage by that fund and that sets forth a fund 120.13 contribution rate, but not to exceed an employer contribution of 120.14 $2,000 per year per employee; or 120.15 (11) to a supplemental plan organized and operated under 120.16 the federal Internal Revenue Code, as amended, that is wholly 120.17 and solely funded by the employee's accumulated sick leave, 120.18 accumulated vacation leave, and accumulated severance pay. 120.19 Sec. 14. Minnesota Statutes 2000, section 356.24, 120.20 subdivision 1b, is amended to read: 120.21 Subd. 1b. [VENDOR RESTRICTIONS.] A personnel policy for 120.22 unrepresented employeesor, a collective bargaining agreement 120.23 for represented employees, or a school board for school district 120.24 employees may establish limits on the number of vendors of plans 120.25 covered by the exceptions set forth in subdivision 1 that it 120.26 will utilize and conditions under whichthethose vendors may 120.27 contact employees both during working hours and after working 120.28 hours. 120.29 Sec. 15. Minnesota Statutes 2000, section 356.24, 120.30 subdivision 1c, is amended to read: 120.31 Subd. 1c. [STATE BOARD OF INVESTMENT REVIEW.] (a) Any 120.32 insurance company, mutual fund company, or similar company 120.33 providing investments eligible under section 403(b) of the 120.34 Internal Revenue Code and eligible to receive employer 120.35 contributions under this section may request the state board of 120.36 investment, in conjunction with the department of commerce, to 121.1 review the financial standing of the company, the 121.2 competitiveness of its investment options and returns, and the 121.3 level of all charges and fees impacting those returns. 121.4 (b) The state board of investment may establish a fee for 121.5 each review. The state board of investment must maintain and 121.6 have available a list of all reviewed companies. 121.7 (c) In reviewing companies under this section, the state 121.8 board of investment must not be considered to be acting as a 121.9 fiduciary or to be engaged in a fiduciary activity under chapter 121.10 356A or common law. 121.11 Sec. 16. Minnesota Statutes 2000, section 356.24, 121.12 subdivision 2, is amended to read: 121.13 Subd. 2. [LIMIT ON CERTAIN CONTRIBUTIONS OR BENEFIT 121.14 CHANGES.] No change in benefits or employer contributions in a 121.15 supplemental pension plan to which this section applies that 121.16 occurs after May 6, 1971, is effective without prior legislative 121.17 authorization. 121.18 Sec. 17. Minnesota Statutes 2000, section 356.245, is 121.19 amended to read: 121.20 356.245 [LOCAL ELECTED OFFICIALS.] 121.21 An elected official who is covered by section 353.01, 121.22 subdivision 2a, is eligible to participate in the state of 121.23 Minnesota deferred compensation plan under section 356.24.A121.24 The applicable local governmental unit may make the matching 121.25 employer contributions authorized by that section on the part of 121.26 a participating elected official. 121.27 Sec. 18. Minnesota Statutes 2000, section 356.25, is 121.28 amended to read: 121.29 356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 121.30 EXCLUSIONS.] 121.31 Notwithstanding any other provision of law or charter to 121.32 the contrary, no city, county, public agency or instrumentality, 121.33 or other political subdivisionshall, after August 1, 1975,is 121.34 required or permitted to establish for any of its employeesany121.35 a local pension plan or fund financed in whole or in part from 121.36 public funds, other than a volunteer firefighter's relief 122.1 association that is establishedpursuant tounder chapter 424A 122.2 and is governed by sections 69.771 to 69.776. 122.3 PUBLIC RETIREMENT PLAN PORTABILITY MECHANISMS 122.4 Sec. 19. Minnesota Statutes 2000, section 356.30, is 122.5 amended to read: 122.6 356.30 [COMBINED SERVICE ANNUITY.] 122.7 Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] (a) 122.8 Notwithstanding any provisions of the laws governing the 122.9 retirement plans enumerated in subdivision 3, a person who has 122.10 met the qualifications of paragraph (b) may elect to receive a 122.11 retirement annuity from each enumerated retirement plan in which 122.12 the person has at least one-half year of allowable service, 122.13 based on the allowable service in each plan, subject to the 122.14 provisions of paragraph (c). 122.15 (b) A person may receive, upon retirement, a retirement 122.16 annuity from each enumerated retirement plan in which the person 122.17 has at least one-half year of allowable service, and 122.18 augmentation of a deferred annuity calculated under the laws 122.19 governing each public pension plan or fund named in subdivision 122.20 3, from the date the person terminated all public service if: 122.21 (1) the person has allowable service totaling an amount 122.22 that allows the person to receive an annuity in any two or more 122.23 of the enumerated plans; and 122.24 (2) the person has not begun to receive an annuity from any 122.25 enumerated plan or the person has made application for benefits 122.26 from each applicable plan and the effective dates of the 122.27 retirement annuity with each plan under which the person chooses 122.28 to receive an annuity are within a one-year period. 122.29 (c) The retirement annuity from each plan must be based 122.30 upon the allowable service, accrual rates, and average salary in 122.31 the applicable plan except as further specified or modified in 122.32 the following clauses: 122.33 (1) the laws governing annuities must be the law in effect 122.34 on the date of termination from the last period of public 122.35 service under a covered retirement plan with which the person 122.36 earned a minimum of one-half year of allowable service credit 123.1 during that employment; 123.2 (2) the "average salary" on which the annuity from each 123.3 covered plan in which the employee has credit in a formula plan 123.4shallmust be based on the employee's highest five successive 123.5 years of covered salary during the entire service in covered 123.6 plans; 123.7 (3) the accrual rates to be used by each plan must be those 123.8 percentages prescribed by each plan's formula as continued for 123.9 the respective years of allowable service from one plan to the 123.10 next, recognizing all previous allowable service with the other 123.11 covered plans; 123.12 (4) the allowable service in all the plans must be combined 123.13 in determining eligibility for and the application of each 123.14 plan's provisions in respect to reduction in the annuity amount 123.15 for retirement prior to normal retirement age; and 123.16 (5) the annuity amount payable for any allowable service 123.17 under a nonformula plan of a covered plan must not be affected, 123.18 but such service and covered salary must be used in the above 123.19 calculation. 123.20 (d) This section does not apply to any person whose final 123.21 termination from the last public service under a covered planis123.22prior towas before May 1, 1975. 123.23 (e) For the purpose of computing annuities under this 123.24 section, the accrual rates used by any covered plan, except the 123.25 public employees police and fire plan, the judges' retirement 123.26 fund, and the state patrol retirement plan, must not exceed the 123.27 percent specified in section356.19356.315, subdivision 4, per 123.28 year of service for any year of service or fraction thereof. 123.29 The formula percentage used by the judges' retirement fund must 123.30 not exceed thepercentpercentage rate specified in section 123.31356.19356.315, subdivision 8, per year of service for any year 123.32 of service or fraction thereof. The accrual rate used by the 123.33 public employees police and fire plan and the state patrol 123.34 retirement plan must not exceed thepercentpercentage rate 123.35 specified in section356.19356.315, subdivision 6, per year of 123.36 service for any year of service or fraction thereof. The 124.1 accrual rate or rates used by the legislators retirement plan 124.2 and the elective state officers retirement plan must not exceed 124.3 2.5 percent, but this limit does not apply to the adjustment 124.4 provided under section 3A.02, subdivision 1, paragraph (c), or 124.5 352C.031, paragraph (b). 124.6 (f) Any period of time for which a person has credit in 124.7 more than one of the covered plans must be used only once for 124.8 the purpose of determining total allowable service. 124.9 (g) If the period of duplicated service credit is more than 124.10 one-half year, or the person has credit for more than one-half 124.11 year, with each of the plans, each plan must apply its formula 124.12 to a prorated service credit for the period of duplicated 124.13 service based on a fraction of the salary on which deductions 124.14 were paid to that fund for the period divided by the total 124.15 salary on which deductions were paid to all plans for the period. 124.16 (h) If the period of duplicated service credit is less than 124.17 one-half year, or when added to other service credit with that 124.18 plan is less than one-half year, the service credit must be 124.19 ignored and a refund of contributions made to the person in 124.20 accord with that plan's refund provisions. 124.21 Subd. 2. [REPAYMENT OF REFUNDS.] A person who has service 124.22 credit in one of thefundsretirement plans enumerated in 124.23 subdivision 3 and who is employed or was formerly employed in a 124.24 position covered by one of thesefundscovered plans but also 124.25 has received a refund from any other of thesefundscovered 124.26 plans, may repay the refund to the respectivefundplan under 124.27 terms and conditions that are consistent with the laws governing 124.28 the otherfundplan, except that the person need not be a 124.29 currently contributing member of thefundplan to which the 124.30 refund is repaid at the time the repayment is made. Unless 124.31 otherwise provided by statute, the repayment of a refund under 124.32 this subdivision may only be made within six months following 124.33 termination of employment from a position covered by one of the 124.34fundscovered plans enumerated in subdivision 3 or before the 124.35 date of retirement from thefundplan to which the refund is 124.36 repaid, whichever is earlier. 125.1 Subd. 2a. [PURCHASES OF PRIOR SERVICE.] If a purchase of 125.2 prior service is made under the provisions of Laws 1988, chapter 125.3 709, article 3, or any similar special or general law provision 125.4 which allows a purchase of service credit in any of thefunds125.5 retirement plans enumerated in subdivision 3, the amount of 125.6 required reserves calculated as prescribed in Laws 1988, chapter 125.7 709, article 3, must be paid to eachfundplan based on the 125.8 amount of benefit increase payable from thatfundplan as a 125.9 result of the purchase of prior service. 125.10 Subd. 3. [COVEREDFUNDSPLANS.] This section applies to 125.11 the following retirementfundsplans: 125.12 (1) the general state employees retirementfundplan of the 125.13 Minnesota state retirement system, establishedpursuant tounder 125.14 chapter 352; 125.15 (2) the correctional state employees retirementprogram125.16 plan of the Minnesota state retirement system, 125.17 establishedpursuant tounder chapter 352; 125.18 (3) the unclassified employees retirementplanprogram, 125.19 establishedpursuant tounder chapter 352D; 125.20 (4) the state patrol retirementfundplan, established 125.21pursuant tounder chapter 352B; 125.22 (5) the legislators retirement plan, establishedpursuant125.23tounder chapter 3A; 125.24 (6) the elective state officers' retirement plan, 125.25 establishedpursuant tounder chapter 352C; 125.26 (7) the general employees retirement plan of the public 125.27 employees retirement association, establishedpursuant tounder 125.28 chapter 353; 125.29 (8) the public employees police and firefundretirement 125.30 plan of the public employees retirement association, established 125.31pursuant tounder chapter 353; 125.32 (9)public employeesthe local government correctional 125.33 service retirement plan of the public employees retirement 125.34 association, establishedpursuant tounder chapter 353E; 125.35 (10) the teachers retirement association, established 125.36pursuant tounder chapter 354; 126.1 (11) the Minneapolis employees retirement fund, established 126.2pursuant tounder chapter 422A; 126.3 (12) the Minneapolis teachers retirement fund association, 126.4 establishedpursuant tounder chapter 354A; 126.5 (13) the St. Paul teachers retirement fund association, 126.6 establishedpursuant tounder chapter 354A; 126.7 (14) the Duluth teachers retirement fund association, 126.8 establishedpursuant tounder chapter 354A; and 126.9 (15) the judges' retirement fund, established by sections 126.10 490.121 to 490.132. 126.11 Sec. 20. Minnesota Statutes 2000, section 356.302, is 126.12 amended to read: 126.13 356.302 [DISABILITY BENEFIT WITH COMBINED SERVICE.] 126.14 Subdivision 1. [DEFINITIONS.] (a) The terms used in this 126.15 section are defined in this subdivision. 126.16 (b) "Average salary" means the highest average of covered 126.17 salary for the appropriate period of credited service that is 126.18 required for the calculation of a disability benefit by the 126.19 covered retirement plan and that is drawn from any period of 126.20 credited service and successive years of covered salary in a 126.21 covered retirement plan. 126.22 (c) "Covered retirement plan" or "plan" means a retirement 126.23 plan listed in subdivision 7. 126.24 (d) "Duty-related" means a disabling illness or injury that 126.25 occurred while the person was actively engaged in employment 126.26 duties or that arose out of the person's active employment 126.27 duties. 126.28 (e) "General employee retirement plan" means a covered 126.29 retirement plan listed in subdivision 7, clauses (1) to (8) and 126.30 (13). 126.31 (f) "Occupationally disabled" means the condition of having 126.32 a medically determinable physical or mental impairment that 126.33 makes a person unable to satisfactorily perform the minimum 126.34 requirements of the person's employment position or a 126.35 substantially similar employment position. 126.36 (g) "Public safety employee retirement plan" means a 127.1 covered retirement plan listed in subdivision 7, clauses (9) to 127.2(11)(12). 127.3 (h) "Totally and permanently disabled" means the condition 127.4 of having a medically determinable physical or mental impairment 127.5 that makes a person unable to engage in any substantial gainful 127.6 activity and that is expected to continue or has continued for a 127.7 period of at least one year or that is expected to result 127.8 directly in the person's death. 127.9 Subd. 2. [ENTITLEMENT.] Notwithstanding any provision of 127.10 law to the contrary governing any covered retirement plan, a 127.11 member of a covered retirement plan may receive a combined 127.12 service disability benefit from each covered retirement plan in 127.13 which the person has credit for at least one-half year of 127.14 allowable service if that person meets the applicable qualifying 127.15 conditions. Subdivision 3 applies to a member of a general 127.16 employee retirement plan. Subdivision 4 applies to a member of 127.17 a public safety employee retirement plan. Subdivision 5 applies 127.18 to a member of a covered retirement plan with both general 127.19 employee and public safety employee retirement plan service. 127.20 Subd. 3. [GENERAL EMPLOYEE PLAN ELIGIBILITY REQUIREMENTS.] 127.21 A disabled member of a covered retirement plan who has credit 127.22 for allowable service in a combination of general employee 127.23 retirement plans is entitled to a combined service disability 127.24 benefit if the member: 127.25 (1) is less than 65 years of age on the date of the 127.26 application for the disability benefit; 127.27 (2) has become totally and permanently disabled; 127.28 (3) has credit for allowable service in any combination of 127.29 general employee retirement plans totaling at least three years; 127.30 (4) has credit for at least one-half year of allowable 127.31 service with the current general employee retirement plan before 127.32 the commencement of the disability; 127.33 (5) has at least three continuous years of allowable 127.34 service credit by the general employee retirement plan or has at 127.35 least a total of three years of allowable service credit by a 127.36 combination of general employee retirement plans in a 72-month 128.1 period during which no interruption of allowable service credit 128.2 from a termination of employment exceeded 29 days; and 128.3 (6)iswas not receiving a retirement annuity or disability 128.4 benefit from any covered general employee retirement plan at the 128.5 time of the commencement of the disability. 128.6 Subd. 4. [PUBLIC SAFETY PLAN ELIGIBILITY REQUIREMENTS.] A 128.7 disabled member of a covered retirement plan who has credit for 128.8 allowable service in a combination of public safety employee 128.9 retirement plans is entitled to a combined service disability 128.10 benefit if the member: 128.11 (1) has become occupationally disabled; 128.12 (2) has credit for allowable service in any combination of 128.13 public safety employee retirement plans totaling at least one 128.14 year if the disability is duty-related or totaling at least 128.15 three years if the disability is not duty-related; 128.16 (3) has credit for at least one-half year of allowable 128.17 service with the current public safety employee retirement plan 128.18 before the commencement of the disability; and 128.19 (4)iswas not receiving a retirement annuity or disability 128.20 benefit from any covered public safety employee retirement plan 128.21 at the time of the commencement of the disability. 128.22 Subd. 5. [GENERAL AND PUBLIC SAFETY PLAN ELIGIBILITY 128.23 REQUIREMENTS.] A disabled member of a covered retirement plan 128.24 who has credit for allowable service in a combination of both a 128.25 public safety employee retirementplansplan and general 128.26 employee retirementplansplan must meet the qualifying 128.27 requirements in subdivisions 3 and 4 to receive a combined 128.28 service disability benefit from the applicable general employee 128.29 and public safety employee retirement plans, except that the 128.30 person need only be a member of a covered retirement plan at the 128.31 time of the commencement of the disability and that the minimum 128.32 allowable service requirements of subdivisions 3, clauses (3) 128.33 and (5), and 4, clauses (3) and (4), may be met in any 128.34 combination of covered retirement plans. 128.35 Subd. 6. [COMBINED SERVICE DISABILITY BENEFIT 128.36 COMPUTATION.] (a) The combined service disability benefit from 129.1 each covered retirement plan must be based on the allowable 129.2 service in each retirement plan, except as specified in 129.3 paragraphs (b) to (f). 129.4 (b) The disability benefit must be governed by the law in 129.5 effect for each covered retirement plan on the date of the 129.6 commencement of the member's most recent qualifying disability 129.7 as a member of a covered retirement plan. 129.8 (c) All plans must base the disability benefit on the same 129.9 average salary figure to the extent practicable. 129.10 (d) If the method of the covered retirement plan used to 129.11 compute a disability benefit varies based on the length of 129.12 allowable service credit, the benefit accrual formula 129.13 percentages used by the plan must recognize the allowable 129.14 service credit in the plan as a continuation of any previous 129.15 allowable service credit with other covered retirement plans. 129.16 (e) If the covered retirement plan is a defined benefit or 129.17 formula plan and the method used to compute a disability benefit 129.18 does not vary based on the length of allowable service credit, 129.19 the portion of the specified benefit amount from the plan must 129.20 bear the same proportion to the total specified benefit amount 129.21 as the allowable service credit in that plan bears to the total 129.22 allowable service credit in all covered retirement plans. If 129.23 the covered retirement plan is a defined contribution or 129.24 nonformula plan, the disability benefit amount for allowable 129.25 service under the plan is not affected, but the service and the 129.26 covered salary under the plan must be used as applicable in 129.27 calculations by other covered retirement plans. 129.28 (f) A period for which a person has allowable service 129.29 credit in more than one covered retirement plan must be used 129.30 only once in determining the total allowable service credit for 129.31 calculating the combined service disability benefit, with any 129.32 period of duplicated service credit handledunderas provided in 129.33 section 356.30, subdivision 1,clause (3), items (i) and129.34(j)paragraphs (g) and (h). 129.35 (g) If a person is entitled to a minimum benefit payable 129.36 from one of the public pension plansnamedenumerated in section 130.1 356.30, subdivision 3, the person may receive additional credit 130.2 for only those years of service in another covered pension plan 130.3 that, when added to the years of service in the pension plan 130.4 that is paying the minimum benefit, exceed the years of service 130.5 on which the minimum benefit is based. 130.6 (h) A partially employed recipient of a disability benefit 130.7 must have any current reemployment income plus the total 130.8 disabilitypaymentpayments from all planslistedenumerated in 130.9 subdivision 7 added together, and then compared to their final 130.10 salary rate as a public employee. If current income plus the 130.11 total disability payments exceed the final salary of the person 130.12 at the time of retirement, then disability benefit payments from 130.13 all the planswillmust be reduced on a prorated basis relative 130.14 to the years of service in each fund so that earnings plus 130.15 benefit payments do not exceedtheirthe final salary rate. 130.16 Subd. 7. [COVERED RETIREMENT PLANS.] This section applies 130.17 to the following retirement plans: 130.18 (1) the general state employees retirementfundplan of the 130.19 Minnesota state retirement system, established by chapter 352; 130.20 (2) the unclassified state employees retirementplan130.21 program of the Minnesota state retirement system, established by 130.22 chapter 352D; 130.23 (3) the general employees retirement plan of the public 130.24 employees retirement association, established by chapter 353; 130.25 (4) the teachers retirement association, established by 130.26 chapter 354; 130.27 (5) the Duluth teachers retirement fund association, 130.28 established by chapter 354A; 130.29 (6) the Minneapolis teachers retirement fund association, 130.30 established by chapter 354A; 130.31 (7) the St. Paul teachers retirement fund association, 130.32 established by chapter 354A; 130.33 (8) the Minneapolis employees retirement fund, established 130.34 by chapter 422A; 130.35 (9) the state correctional employees retirement plan of the 130.36 Minnesota state retirement system, established by chapter 352; 131.1 (10) the state patrol retirementfundplan, established by 131.2 chapter 352B; 131.3 (11) the public employees police and firefundplan of the 131.4 public employees retirement association, established by chapter 131.5 353; 131.6 (12)public employeesthe local government correctional 131.7 service retirement plan of the public employees retirement 131.8 association, established by chapter 353E; and 131.9 (13) the judges' retirementfundplan, established by 131.10 sections 490.121 to 490.132. 131.11 Sec. 21. Minnesota Statutes 2000, section 356.303, is 131.12 amended to read: 131.13 356.303 [SURVIVOR BENEFIT WITH COMBINED SERVICE.] 131.14 Subdivision 1. [DEFINITIONS.] (a) The terms used in this 131.15 section are defined in this subdivision. 131.16 (b) "Average salary" means the highest average of covered 131.17 salary for the appropriate period of credited service that is 131.18 required for the calculation of a survivor annuity or a survivor 131.19 benefit, whichever applies, by the covered retirement plan and 131.20 that is drawn from any period of credited service and covered 131.21 salary in a covered retirement plan. 131.22 (c) "Covered retirement plan" or "plan" means a retirement 131.23 planlistedenumerated in subdivision 4. 131.24 (d) "Deceased member" means a person who on the date of 131.25 death was an active member of a covered retirement plan and who 131.26 has reached the minimum age, if any, that is required by the 131.27 covered retirement plan as part of qualifying for a survivor 131.28 annuity or survivor benefit. 131.29 (e) "Surviving child" means a child of a deceased member 131.30 (1) who is unmarried,; (2) who has not reached age 18, or, if a 131.31 full-time student, who has not reached a higher age as specified 131.32inby the applicable covered retirement plan,; and (3) if 131.33 specified by that plan, who was actually dependent on the 131.34 deceased member for a specified proportion of support before the 131.35 deceased member's death. "Surviving child" includes a natural 131.36 child, an adopted child, or a child of a deceased member who is 132.1 conceived during the member's lifetime and who is born after the 132.2 member's death. 132.3 (f) "Surviving spouse" means the legally married husband or 132.4 wife, whichever applies, of the deceased member who was residing 132.5 with the deceased member on the date of death and who, if 132.6 specified by the applicable covered retirement plan, had been 132.7 married to the deceased member for a specified period of time 132.8 before the death of the deceased member. 132.9 (g) "Survivor annuity" means the entitlement to a future 132.10 amount payable to a survivor as the remainder interest of an 132.11 optional annuity form implied by law as having been chosen by a 132.12 deceased member before the date of death and effective on the 132.13 date of death or provided automatically. 132.14 (h) "Survivor benefit" means an entitlement to a future 132.15 amount payable to a survivor that is not included in the 132.16 definition of a survivor annuity. 132.17 Subd. 2. [ENTITLEMENT; ELIGIBILITY.] Notwithstanding 132.18 any provision of law to the contrary governing a covered 132.19 retirement plan, a person who is the survivor of a deceased 132.20 member of a covered retirement plan may receive a combined 132.21 service survivor benefit from each covered retirement plan in 132.22 which the deceased member had credit for at least one-half year 132.23 of allowable service if the deceased member: 132.24 (1) had credit for sufficient allowable service in any 132.25 combination of covered retirement plans to meet any minimum 132.26 allowable service credit requirement of the covered retirement 132.27 fund for qualification for a survivor benefit or annuity; 132.28 (2) had credit for at least one-half year of allowable 132.29 service with the most recent covered retirement plan before the 132.30 date of death and was an active member of that covered 132.31 retirement plan on the date of death; and 132.32 (3) was not receiving a retirement annuity from any covered 132.33 retirement plan on the date of death. 132.34 Subd. 3. [COMBINED SERVICE SURVIVOR BENEFIT COMPUTATION.] 132.35 (a) The combined service survivor annuity or survivor benefit 132.36 from each covered retirement plan must be based on the allowable 133.1 service in each covered retirement plan, except as provided by 133.2 paragraphs (b) to (f). 133.3 (b) The survivor annuity or survivor benefit must be 133.4 governed by the law in effect for each covered retirement plan 133.5 on the date of the death of the deceased member. 133.6 (c) All plans must base the survivor annuity or survivor 133.7 benefit on the same average salary figure if the annuity or 133.8 benefit is salary related. 133.9 (d) If the method of the covered retirement plan used to 133.10 compute a survivor benefit or annuity varies based on the length 133.11 of allowable service credit, the benefit accrual formula 133.12 percentages used by the plan must recognize the allowable 133.13 service credit in the plan as a continuation of any previous 133.14 allowable service credit with other covered retirement plans. 133.15 (e) If the covered retirement plan is a defined benefit or 133.16 formula plan and the method used to compute a survivor benefit 133.17 or annuity does not vary based on the length of allowable 133.18 service credit, the portion of the specified benefit or annuity 133.19 amount from the covered retirement plan must bear the same 133.20 proportion to the total specified benefit or annuity amount as 133.21 the allowable service credit in that plan bears to the total 133.22 allowable service credit in all covered retirement plans. If 133.23 the covered retirement plan is a defined contribution or 133.24 nonformula plan, the survivor benefit amount for allowable 133.25 service under the plan is not affected, but the service and 133.26 covered salary under the plan must be used in calculations by 133.27 other covered retirement plans. 133.28 (f) A period for which aperson hasdeceased member had 133.29 allowable service credit in more than one covered retirement 133.30 plan must be used only once in determining the total allowable 133.31 service credit for calculating the combined service survivor 133.32 annuity or survivor benefit. A period of duplicated service 133.33 credit must be handled as provided in section 356.30, 133.34 subdivision 1,clause (3), items (i) and (j)paragraphs (g) and 133.35 (h). 133.36 (g) If a person is entitled to a minimum benefit payable 134.1 from a public pension plan named in section 356.30, subdivision 134.2 3, the person may receive additional credit for only those years 134.3 of service in another covered pension plan that, when added to 134.4 the years of service in the pension plan that is paying the 134.5 minimum benefit, exceed the years of service on which the 134.6 minimum benefit is based. 134.7 Subd. 4. [COVERED RETIREMENT PLANS.] This section applies 134.8 to the following retirement plans: 134.9 (1) the legislators retirement plan, established by chapter 134.10 3A; 134.11 (2) the general state employees retirementfundplan of the 134.12 Minnesota state retirement system, established by chapter 352; 134.13 (3) the correctional state employees retirement plan of the 134.14 Minnesota state retirement system, established by chapter 352; 134.15 (4) the state patrol retirementfundplan, established by 134.16 chapter 352B; 134.17 (5) the elective state officers retirement plan, 134.18 established by chapter 352C; 134.19 (6) the unclassified state employees retirementplan134.20 program, established by chapter 352D; 134.21 (7) the general employees retirement plan of the public 134.22 employees retirement association, established by chapter 353; 134.23 (8) the public employees police and firefundplan of the 134.24 public employees retirement association, established by chapter 134.25 353; 134.26 (9)public employeesthe local government correctional 134.27 service retirement plan of the public employees retirement 134.28 association, established by chapter 353E; 134.29 (10) the teachers retirement association, established by 134.30 chapter 354; 134.31 (11) the Duluth teachers retirement fund association, 134.32 established by chapter 354A; 134.33 (12) the Minneapolis teachers retirement fund association, 134.34 established by chapter 354A; 134.35 (13) the St. Paul teachers retirement fund association, 134.36 established by chapter 354A; 135.1 (14) the Minneapolis employees retirement fund, established 135.2 by chapter 422A; and 135.3 (15) the judges' retirement fund, established by sections 135.4 490.121 to 490.132. 135.5 RETIREMENT ANNUITIES 135.6 Sec. 22. [356.315] [RETIREMENT BENEFIT FORMULA 135.7 PERCENTAGES.] 135.8 Subdivision 1. [COORDINATED PLAN MEMBERS.] The applicable 135.9 benefit accrual rate is 1.2 percent. 135.10 Subd. 2. [COORDINATED PLAN MEMBERS.] The applicable 135.11 benefit accrual rate is 1.7 percent. 135.12 Subd. 2a. [COORDINATED MEMBERS.] The applicable benefit 135.13 accrual rate is 2.0 percent. 135.14 Subd. 3. [BASIC PLAN MEMBERS.] The applicable benefit 135.15 accrual rate is 2.2 percent. 135.16 Subd. 4. [BASIC PLAN MEMBERS.] The applicable benefit 135.17 accrual rate is 2.7 percent. 135.18 Subd. 5. [CORRECTIONAL PLAN MEMBERS.] The applicable 135.19 benefit accrual rate is 2.4 percent. 135.20 Subd. 5a. [LOCAL GOVERNMENT CORRECTIONAL SERVICE PLAN.] 135.21 The applicable benefit accrual rate is 1.9 percent. 135.22 Subd. 6. [STATE TROOPERS PLAN AND POLICE AND FIRE PLAN 135.23 MEMBERS.] The applicable benefit accrual rate is 3.0 percent. 135.24 Subd. 7. [JUDGES PLAN.] The applicable benefit accrual 135.25 rate is 2.7 percent. 135.26 Subd. 8. [JUDGES PLAN.] The applicable benefit accrual 135.27 rate is 3.2 percent. 135.28 Subd. 9. [FUTURE BENEFIT ACCRUAL RATE INCREASES.] After 135.29 January 2, 1998, benefit accrual rate increases under this 135.30 section must apply only to allowable service or formula service 135.31 rendered after the effective date of the benefit accrual rate 135.32 increase. 135.33 Sec. 23. Minnesota Statutes 2000, section 356.32, is 135.34 amended to read: 135.35 356.32 [PROPORTIONATE ANNUITY AT AGE 65.] 135.36 Subdivision 1. [PROPORTIONATE RETIREMENT ANNUITY.] (a) 136.1 Notwithstanding any provision to the contrary of the laws 136.2 governing any of the retirement fundsreferred toenumerated in 136.3 subdivision 2, any person who is an active member of any 136.4 applicable fund, who has credit for at least one year but less 136.5 than ten years of allowable service in one or more of 136.6 theapplicable fundscovered plans, and who terminates active 136.7 servicepursuant tounder a mandatory retirement law or policy 136.8 or at age 65 or older, or at the normal retirement age if this 136.9 age is not age 65, for any reasonshall beis entitled upon 136.10 making written application on the form prescribed byexecutive136.11director or executive secretarythe chief administrative officer 136.12 of thefundplan to a proportionate retirement annuity from each 136.13applicable fundcovered plan in which the person has allowable 136.14 service credit. 136.15 (b) The proportionate annuityshallmust be calculated 136.16 under the applicable laws governing annuities based upon 136.17 allowable service credit at the time of retirement and the 136.18 person's average salary for the highest five successive years of 136.19 allowable service or the average salary for the entire period of 136.20 allowable service if less than five years. 136.21 (c) Nothing in this sectionshall preventprevents the 136.22 imposition of the appropriate early retirement reduction of an 136.23 annuity which commencesprior tobefore the normal retirement 136.24 age. 136.25 Subd. 2. [COVEREDFUNDSRETIREMENT PLANS.] The provisions 136.26 of this sectionshallapply to the following retirement 136.27fundsplans: 136.28 (1) the general state employees retirementfundplan of the 136.29 Minnesota state retirement system, establishedpursuant tounder 136.30 chapter 352; 136.31 (2) the correctional state employees retirementprogram136.32 plan of the Minnesota state retirement system, established 136.33pursuant tounder chapter 352; 136.34 (3) the state patrol retirementfundplan, 136.35 establishedpursuant tounder chapter 352B; 136.36 (4) the general employees retirement plan of the public 137.1 employees retirementfundassociation, establishedpursuant to137.2 under chapter 353; 137.3 (5) the public employees police and firefundplan of the 137.4 public employees retirement association, establishedpursuant to137.5 under chapter 353; 137.6 (6) the teachers retirement association, established 137.7pursuant tounder chapter 354; 137.8 (7) the Minneapolis employees retirement fund, established 137.9pursuant tounder chapter 422A; 137.10 (8) the Duluth teachers retirement fund association, 137.11 establishedpursuant tounder chapter 354A; 137.12 (9) the Minneapolis teachers retirement fund association, 137.13 establishedpursuant tounder chapter 354A; and 137.14 (10) the St. Paul teachers retirement fund association, 137.15 establishedpursuant tounder chapter 354A. 137.16 Sec. 24. Minnesota Statutes 2000, section 356.40, is 137.17 amended to read: 137.18 356.40 [DATE FOR PAYMENT OF ANNUITIES AND BENEFITS.] 137.19 (a) Notwithstanding any law to the contrary, all annuities 137.20 and benefits payable on and after December 1, 1977 by a covered 137.21 retirement fund, as defined in section 356.30, subdivision 3, 137.22shallmust be paid in advance for each month during the first 137.23 week of that month. The bylaws ofmunicipallocal retirement 137.24 fundsshallmust be amended accordingly. 137.25 (b) In no event, however,shallmay this sectionauthorize137.26more than one payment in any one month where the law governing137.27the applicable retirement fund as of June 30, 1977 already137.28provides for the full payment or accrual of annuities and137.29benefits in advance for each month or as of the first day of the137.30month, nor shall itauthorize the payment of both a retirement 137.31 annuity and a surviving spouse's benefit in one month where the 137.32 law governing the applicable retirement fund provides for the 137.33 payment of the retired member's retirement annuity to the 137.34 surviving spouse for the month in which the retired member dies. 137.35 Sec. 25. [356.403] [NORMAL RETIREMENT AGE; SAVINGS 137.36 CLAUSE.] 138.1 The intent of the legislature in sections 352.01, 138.2 subdivision 25; 353.01, subdivision 37; 354.05, subdivision 38; 138.3 and 354A.011, subdivision 15a, is to create a normal retirement 138.4 age for persons first covered by those sections after May 16, 138.5 1989, that is the same as the retirement age in the federal 138.6 Social Security law, including future amendments to that law. 138.7 If a court determines that the legislature may not incorporate 138.8 by reference the future changes in federal Social Security law, 138.9 the legislature reserves the right to amend the appropriate 138.10 sections to make the normal retirement age conform to the 138.11 retirement age in the federal Social Security law. No person 138.12 first covered by any of those sections after May 16, 1989, has a 138.13 right to a normal retirement age that is less than the 138.14 retirement age in the federal Social Security law. 138.15 Sec. 26. [356.405] [COMBINED PAYMENT OF RETIREMENT 138.16 ANNUITIES.] 138.17 (a) The public employees retirement association and the 138.18 Minnesota state retirement system are permitted to combine 138.19 payments to retirees. The total payment must be equal to the 138.20 amount that is payable if payments were kept separate. The 138.21 retiree must agree, in writing, to have the payment combined. 138.22 (b) Each plan must calculate the benefit amounts under the 138.23 laws governing the plan and the required reserves and future 138.24 mortality losses or gains must be paid or accrued to the plan 138.25 from which the service was earned. Each plan must account for 138.26 its portion of the payment separately, and there may be no 138.27 additional actuarial liabilities realized by either plan. 138.28 (c) The plan making the payment would be responsible for 138.29 issuing one payment and making address changes, tax withholding 138.30 changes, and other administrative functions needed to process 138.31 the payment. 138.32 SURVIVOR BENEFITS 138.33 Sec. 27. [356.406] [LOSS OF ENTITLEMENT TO BENEFITS FOR 138.34 SURVIVOR CAUSING DEATH OF PENSION PLAN MEMBER.] 138.35 Subdivision 1. [DEFINITIONS.] (a) Each of the words or 138.36 terms defined in this subdivision has the meaning indicated. 139.1 (b) "Public pension plan" means any retirement plan or fund 139.2 enumerated in section 356.20, subdivision 2, or 356.30, 139.3 subdivision 3, any relief association governed by section 69.77 139.4 or sections 69.771 to 69.775, any retirement plan governed by 139.5 chapter 354B or 354C, the Hennepin county supplemental 139.6 retirement plan governed by sections 383B.46 to 383B.52, or any 139.7 housing and redevelopment authority retirement plan. 139.8 (c) "Public pension plan member" means a person who is a 139.9 participant covered by a public pension plan; a former 139.10 participant of a public pension plan who has sufficient service 139.11 to be entitled to receive a future retirement annuity or service 139.12 pension; a recipient of a retirement annuity, service pension, 139.13 or disability benefit from a public pension plan; or a former 139.14 participant of a public pension plan who has member or employee 139.15 contributions to the person's credit in the public pension plan. 139.16 (d) "Survivor" means the surviving spouse, a former spouse, 139.17 a surviving child, a joint annuitant, a designated recipient of 139.18 a second or remainder portion of an optional annuity form, a 139.19 beneficiary, or the estate of a deceased public pension plan 139.20 member, as those terms are commonly understood or defined in the 139.21 benefit plan document of the public pension plan. 139.22 (e) "Survivor benefit" means a surviving spouse benefit, 139.23 surviving child benefit, second or remainder portion of an 139.24 optional annuity form, a death benefit, a funeral benefit, or a 139.25 refund of member or employee contributions payable on account of 139.26 the death of a public pension plan member as provided for in the 139.27 benefit plan document of the public pension plan. 139.28 Subd. 2. [SUSPENSION OF SURVIVOR BENEFITS UPON FELONY 139.29 CHARGE.] During the pendency of a charge of a survivor of a 139.30 felony that caused the death of a public pension plan member, of 139.31 criminal liability for a death by wrongful act felony, or of 139.32 conspiracy to commit a death by wrongful act felony, the 139.33 entitlement of that survivor to receive a survivor benefit is 139.34 suspended. 139.35 Subd. 3. [FORFEITURE OF SURVIVOR BENEFITS UPON FELONY 139.36 CONVICTION.] On final conviction of a survivor of a felony that 140.1 caused the death of a public pension plan member, of criminal 140.2 liability for a death by wrongful act felony, or of conspiracy 140.3 to commit a death by wrongful act felony, the entitlement of 140.4 that survivor to receive a survivor benefit is forfeited, 140.5 including entitlement for any previously suspended survivor 140.6 benefits under subdivision 2. 140.7 Subd. 4. [SUSPENSION OR FORFEITURE ACTIONS SEPARATE.] The 140.8 charge of one survivor under subdivision 2 or the conviction of 140.9 one survivor under subdivision 3 does not affect the entitlement 140.10 of another survivor to a survivor benefit. 140.11 Subd. 5. [RECOVERY OF CERTAIN BENEFITS.] If monthly 140.12 benefits or a refund of the balance of a participant or former 140.13 participant's account have already been paid to an individual 140.14 who is later charged or convicted as described under this 140.15 section, the executive director or chief administrative officer 140.16 of the public pension plan shall attempt to recover the amounts 140.17 paid. Payment may be made to the next beneficiary or survivor 140.18 only in an amount equal to the amount recovered and in the 140.19 amount of any future payments that would legally accrue to 140.20 another survivor under the applicable laws of the retirement 140.21 plan. 140.22 Subd. 6. [DISPOSITION OF FORFEITED SURVIVOR BENEFITS.] If 140.23 the benefit plan document governing the public pension plan does 140.24 not provide for the disposition of forfeited benefits, survivor 140.25 benefits forfeited under this section must be deposited in the 140.26 general fund of the state. 140.27 Sec. 28. [356.407] [RESTORATION OF SURVIVOR BENEFITS.] 140.28 Subdivision 1. [RESTORATION UPON TERMINATION OF 140.29 REMARRIAGE.] Notwithstanding any provision to the contrary of 140.30 the laws governing any of the retirement plans enumerated in 140.31 subdivision 2, any person who was receiving a surviving spouse's 140.32 benefit from any of those plans and whose benefit terminated 140.33 solely because of remarriage is, if the remarriage terminates 140.34 for any reason, again entitled upon reapplication to a surviving 140.35 spouse's benefit; provided, however, that the person is not 140.36 entitled to retroactive payments for the period of remarriage. 141.1 The benefit resumes at the level which the person would have 141.2 been receiving if there had been no remarriage. This section 141.3 applies prospectively to any person who first becomes entitled 141.4 to receive a surviving spouse's benefit on or after May 18, 141.5 1975, and also applies retroactively to any person who first 141.6 became entitled to receive a surviving spouse's benefit before 141.7 May 18, 1975; provided, however, that no person is entitled to 141.8 retroactive payments for any period of time before May 18, 1975. 141.9 Subd. 2. [COVERED FUNDS.] The provisions of this section 141.10 apply to the following retirement funds: 141.11 (1) the general employees retirement plan of the public 141.12 employees retirement association established under chapter 353; 141.13 (2) the public employees police and fire plan of the public 141.14 employees retirement association established under chapter 353; 141.15 (3) the state patrol retirement plan established under 141.16 chapter 352B; 141.17 (4) the legislators retirement plan established under 141.18 chapter 3A; 141.19 (5) the elective state officers retirement plan established 141.20 under chapter 352C; 141.21 (6) the teachers retirement association established under 141.22 chapter 354; and 141.23 (7) the Minneapolis employees retirement fund established 141.24 under chapter 422A. 141.25 POSTRETIREMENT INCREASES 141.26 Sec. 29. Minnesota Statutes 2000, section 356.41, is 141.27 amended to read: 141.28 356.41 [BENEFIT ADJUSTMENTS FOR CERTAIN DISABILITY AND 141.29 SURVIVOR BENEFITS.] 141.30 Disability benefits payable to a disabilitant, if not 141.31 otherwise included in the participation in the Minnesota 141.32 postretirement investment fund, and survivor benefits payable to 141.33 a survivor from any public pensionfundplan which participates 141.34 in the Minnesota postretirement investment fundshallmust be 141.35 adjusted in the same manner, at the same times and in the same 141.36 amounts as are benefits payable from the Minnesota 142.1 postretirement investment fund to eligible benefit recipients of 142.2 that public pensionfundplan. If a disability benefit is not 142.3 included in the participation in the Minnesota postretirement 142.4 investment fund, the disability benefit is recomputed as a 142.5 retirement annuity and the recipient would have been eligible 142.6 for an adjustmentpursuant tounder this section if the 142.7 disability benefit was not recomputed, the recipientwill142.8continue to beremains eligible for the adjustmentpursuant to142.9 under this section after the recomputation. For the survivor of 142.10 a deceased annuitant who receives a survivor benefit 142.11 calculatedpursuant tounder a prior law rather than the second 142.12 portion of a joint and survivor annuity, any period of receipt 142.13 of a retirement annuity by the annuitantshallmust be utilized 142.14 in determining the period of receipt for eligibility to receive 142.15 an adjustmentpursuant tounder this section. No recipient 142.16shall, however,beis entitled to more than one adjustment 142.17pursuant tounder this section or section 11A.18 applicable to 142.18 one benefit at one time by reason of this section. 142.19 Sec. 30. [356.42] [POSTRETIREMENT ADJUSTMENT; LUMP SUM 142.20 PAYMENTS.] 142.21 Subdivision 1. [ENTITLEMENT.] A person who is receiving a 142.22 retirement annuity, a disability benefit, or a surviving 142.23 spouse's annuity or benefit from a retirement fund specified in 142.24 subdivision 3, clauses (1) to (8), is entitled to receive a 142.25 postretirement adjustment from the applicable retirement fund in 142.26 the amount specified in subdivision 2, if the annuity or benefit 142.27 was computed under: 142.28 (1) the laws in effect before June 1, 1973, if the person 142.29 is receiving an annuity or benefit from the retirement fund 142.30 specified in subdivision 3, clause (4); 142.31 (2) the laws in effect before July 1, 1973, if the person 142.32 is receiving an annuity or benefit from a retirement fund 142.33 specified in subdivision 3, clause (1), (2), (3), or (5); 142.34 (3) the metropolitan transit commission transit operating 142.35 division employees retirement fund plan document in effect on or 142.36 before December 31, 1977, if the person is receiving a 143.1 retirement annuity, a disability benefit, or a surviving 143.2 spouse's annuity or benefit from the retirement fund specified 143.3 in subdivision 3, clause (5); 143.4 (4) the laws in effect before May 1, 1974, and before any 143.5 adjustment under Laws 1987, chapter 372, article 3, if the 143.6 person is receiving an annuity or benefit from the retirement 143.7 fund specified in subdivision 3, clause (6); 143.8 (5) the laws in effect before January 1, 1970, if the 143.9 person is receiving an annuity or benefit from the retirement 143.10 fund specified in subdivision 3, clause (7); or 143.11 (6) the laws in effect before June 30, 1971, if the person 143.12 is receiving an annuity or benefit from the retirement fund 143.13 specified in subdivision 3, clause (8). 143.14 Subd. 2. [AMOUNT OF POSTRETIREMENT ADJUSTMENT; PAYMENT.] 143.15 (a) For any person receiving an annuity or benefit on November 143.16 30, 1989, and entitled to receive a postretirement adjustment 143.17 under subdivision 1, the postretirement adjustment is a lump-sum 143.18 payment calculated under paragraph (b) or (c). 143.19 (b) For coordinated plan annuity or benefit recipients, the 143.20 postretirement adjustment in 1989 is $25 for each full year of 143.21 allowable service credited to the person by the respective 143.22 retirement fund. In 1990 and each following year, the 143.23 postretirement adjustment is the amount payable in the preceding 143.24 year increased by the same percentage applied to regular 143.25 annuities paid from the postretirement fund or, for the 143.26 retirement funds specified in subdivision 3, clauses (6), (7), 143.27 and (8), by the same percentage applied under the articles of 143.28 incorporation and bylaws of these funds. 143.29 (c) For basic plan annuity or benefit recipients, the 143.30 postretirement adjustment in 1989 is the greater of: 143.31 (1) $25 for each full year of allowable service credited to 143.32 the person by the respective retirement fund; or 143.33 (2) the difference between: 143.34 (i) the product of $400 times the number of full years of 143.35 allowable service credited to the person by the respective 143.36 retirement fund; and 144.1 (ii) the sum of the benefits payable to the person from any 144.2 Minnesota public employee pension plan, and cash benefits 144.3 payable to the person from the Social Security Administration. 144.4 In 1990 and each following year, each eligible basic plan 144.5 annuity or benefit recipient shall receive the amount received 144.6 in the preceding year increased by the same percentage applied 144.7 to regular annuities paid from the postretirement fund or, for 144.8 the retirement funds specified in subdivision 3, clauses (6), 144.9 (7), and (8), by the same percentage applied under the articles 144.10 of incorporation and bylaws of these funds. 144.11 (d) The postretirement adjustment provided for in this 144.12 section must be paid on December 1 to those persons receiving an 144.13 annuity or benefit on the preceding November 30. This section 144.14 does not authorize the payment of a postretirement adjustment to 144.15 an estate if the annuity or benefit recipient dies before the 144.16 November 30 eligibility date. The postretirement adjustment 144.17 provided for in this section must be paid automatically unless 144.18 the intended recipient files a written notice with the 144.19 retirement fund requesting that the postretirement adjustment 144.20 not be paid or returns the amount of adjustment to the 144.21 retirement fund. Written notice of the waiver of the 144.22 postretirement adjustment is irrevocable for the year during 144.23 which it was made. 144.24 Subd. 3. [COVERED RETIREMENT PLANS.] The postretirement 144.25 adjustment provided in this section applies to the following 144.26 retirement funds: 144.27 (1) the general employees retirement plans of the public 144.28 employees retirement association; 144.29 (2) the public employees police and fire plan of the public 144.30 employees retirement association; 144.31 (3) the teachers retirement association; 144.32 (4) the state patrol retirement plan; 144.33 (5) the state employees retirement plan of the Minnesota 144.34 state retirement system; 144.35 (6) the Minneapolis teachers retirement fund association 144.36 established under chapter 354A; 145.1 (7) the St. Paul teachers retirement fund association 145.2 established under chapter 354A; and 145.3 (8) the Duluth teachers retirement fund association 145.4 established under chapter 354A. 145.5 Sec. 31. [356.43] [SUPPLEMENTAL BENEFIT; LUMP-SUM 145.6 PAYMENTS; MINNEAPOLIS EMPLOYEES RETIREMENT FUND.] 145.7 Subdivision 1. [ENTITLEMENT.] Any person who is receiving 145.8 either an annuity that was computed under the laws in effect 145.9 before March 5, 1974, or a "$2 bill and annuity" annuity from 145.10 the Minneapolis employees retirement fund is entitled to receive 145.11 a supplemental benefit lump-sum payment from the retirement fund 145.12 in the amount specified in subdivision 2. 145.13 Subd. 2. [AMOUNT OF PAYMENT.] (a) For any person receiving 145.14 an annuity or benefit on November 30, 1991, and entitled to 145.15 receive a supplemental benefit lump-sum payment under 145.16 subdivision 1, the payment is $28 for each full year of 145.17 allowable service credited to the person by the retirement fund. 145.18 In 1992 and each following year, each eligible benefit 145.19 recipient is entitled to receive the amount received in the 145.20 preceding year increased by the same percentage applied on the 145.21 most recent January 1 to regular annuities paid from the 145.22 Minneapolis employees retirement fund. 145.23 (b) The payment provided for in this section is payable on 145.24 December 1, 1991, to those persons receiving an annuity or 145.25 benefit on November 30, 1991. In subsequent years, the payment 145.26 must be made on December 1 to those persons receiving an annuity 145.27 or benefit on the preceding November 30. This section does not 145.28 authorize payment to an estate if the annuity or benefit 145.29 recipient dies before the November 30 eligibility date. The 145.30 payment provided for in this section must be paid automatically 145.31 unless the intended recipient files a written notice with the 145.32 retirement fund requesting that it not be paid. 145.33 Subd. 3. [STATE APPROPRIATION.] Payments under this 145.34 section are the responsibility of the Minneapolis employees 145.35 retirement fund. A separate state aid is provided toward the 145.36 level dollar amortized cost of the payments. For state fiscal 146.1 years 1992 to 2001 inclusive, there is appropriated annually 146.2 $550,000 from the general fund to the commissioner of finance to 146.3 be added, in quarterly installments, to the annual state 146.4 contribution amount determined under section 422A.101, 146.5 subdivision 3. After fiscal year 2001, any difference between 146.6 the cumulative benefit amounts actually paid under this section 146.7 after fiscal year 1991 and the amounts paid to the retirement 146.8 fund by the state under this subdivision, plus investment 146.9 earnings on the aid, shall be included by the retirement fund 146.10 board and the actuary retained by the legislative commission on 146.11 pensions and retirement in determining the financial 146.12 requirements of the fund and contributions under section 146.13 422A.101. 146.14 Sec. 32. [356.431] [CONVERSION OF LUMP-SUM POSTRETIREMENT 146.15 AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.] 146.16 Subdivision 1. [LUMP-SUM POSTRETIREMENT PAYMENT 146.17 CONVERSION.] For benefits paid after December 31, 2001, to 146.18 eligible persons under sections 356.42 and 356.43, the amount of 146.19 the most recent lump-sum benefit payable to an eligible 146.20 recipient under sections 356.86 and 356.865 must be divided by 146.21 12. The result must be added to the monthly annuity or benefit 146.22 otherwise payable to an eligible recipient, must become a 146.23 permanent part of the benefit recipient's pension, and must be 146.24 included in any pension benefit subject to future increases. 146.25 Subd. 2. [TRANSFER OF REQUIRED RESERVES TO MINNESOTA 146.26 POSTRETIREMENT INVESTMENT FUND.] Public employee retirement 146.27 funds participating in the state board of investment 146.28 postretirement investment fund shall transfer the required 146.29 reserves for the postretirement conversion under subdivision 1 146.30 to the postretirement investment fund by January 31, 2002. 146.31 REFUNDS 146.32 Sec. 33. [356.44] [PARTIAL PAYMENT OF PENSION PLAN 146.33 REFUND.] 146.34 (a) Notwithstanding any provision of law to the contrary, a 146.35 member of a pension plan listed in section 356.30, subdivision 146.36 3, with at least two years of forfeited service taken from a 147.1 single pension plan, may repay a portion of all refunds. A 147.2 partial refund repayment must comply with this section. 147.3 (b) The minimum portion of a refund repayment is one-third 147.4 of the total service credit period of all refunds taken from a 147.5 single plan. 147.6 (c) The cost of the partial refund repayment is the product 147.7 of the cost of the total repayment multiplied by the ratio of 147.8 the restored service credit to the total forfeited service 147.9 credit. The total repayment amount includes interest at the 147.10 annual rate of 8.5 percent, compounded annually, from the refund 147.11 date to the date repayment is received. 147.12 (d) The restored service credit must be allocated based on 147.13 the relationship the restored service bears to the total service 147.14 credit period for all refunds taken from a single pension plan. 147.15 (e) This section does not authorize a public pension plan 147.16 member to repay a refund if the law governing the plan does not 147.17 authorize the repayment of a refund of member contributions. 147.18 Sec. 34. [356.441] [REPAYMENT OF REFUNDS.] 147.19 Repayment of a refund and interest on that refund permitted 147.20 under laws governing any public pension plan in Minnesota may be 147.21 made with funds distributed from a plan qualified under the 147.22 federal Internal Revenue Code of 1986, section 401(a), as 147.23 amended through December 31, 1988, or an annuity qualified under 147.24 the federal Internal Revenue Code of 1986, section 403(a). 147.25 Repayment may also be made with funds distributed from an 147.26 individual retirement account used solely to receive a 147.27 nontaxable rollover from that type of a plan or annuity. The 147.28 repaid refund must be separately accounted for as member 147.29 contributions not previously taxed. Before accepting any 147.30 transfers to which this section applies, the executive director 147.31 must require the member to provide written documentation to 147.32 demonstrate that the amounts to be transferred are eligible for 147.33 a tax-free rollover and qualify for that treatment under the 147.34 federal Internal Revenue Code of 1986. 147.35 OPTIONAL ANNUITY FORMS 147.36 Sec. 35. [356.46] [APPLICATION FOR RETIREMENT ANNUITY; 148.1 PROCEDURE FOR ELECTING ANNUITY FORM.] 148.2 Subdivision 1. [DEFINITIONS.] As used in this section, 148.3 each of the following terms shall have the meaning given. 148.4 (a) "Annuity form" means the payment procedure and duration 148.5 of a retirement annuity or disability benefit available to a 148.6 member of a public pension fund, based on the period over which 148.7 a retirement annuity or disability benefit is payable, 148.8 determined by the number of persons to whom the retirement 148.9 annuity or disability benefit is payable, and the amount of the 148.10 retirement annuity or disability benefit which is payable to 148.11 each person. 148.12 (b) "Joint and survivor optional annuity" means an optional 148.13 annuity form which provides a retirement annuity or disability 148.14 benefit to a retired member and the spouse of the member on a 148.15 joint basis during the lifetime of the retired member and all or 148.16 a portion of the original retirement annuity or disability 148.17 benefit amount to the surviving spouse in the event of the death 148.18 of the retired member. 148.19 (c) "Optional annuity form" means an annuity form which is 148.20 elected by a member and is not provided automatically as the 148.21 standard annuity form of the public pension plan. 148.22 (d) "Public pension plan" means a public pension plan as 148.23 defined under section 356.615, paragraph (b). 148.24 (e) "Retirement annuity" means a series of monthly payments 148.25 to which a former or retired member of a public pension fund is 148.26 entitled due to attaining a specified age and acquiring credit 148.27 for a specified period of service, which includes a retirement 148.28 annuity, retirement allowance, or service pension. 148.29 (f) "Disability benefit" means a series of monthly payments 148.30 to which a former or disabled member of a public pension fund is 148.31 entitled due to a physical or mental inability to engage in 148.32 specified employment. 148.33 Subd. 2. [PROVISION OF INFORMATION ON ANNUITY FORMS.] 148.34 Every public pension plan which provides for an annuity form 148.35 other than a single life retirement annuity as an option which 148.36 can be elected by an active, disabled, or retiring member shall 149.1 provide as a part of, or accompanying the annuity application 149.2 form, a written statement summarizing the optional annuity forms 149.3 which are available, a general indication of the consequences of 149.4 selecting one annuity form over another, a calculation of the 149.5 actuarial reduction in the amount of the retirement annuity 149.6 which would be required for each optional annuity form, and the 149.7 procedure to be followed to obtain more information from the 149.8 public pension fund concerning the optional annuity forms 149.9 provided by the plan. 149.10 Subd. 3. [REQUIREMENT OF NOTICE TO MEMBER'S SPOUSE.] (a) 149.11 If a public pension plan provides optional retirement annuity 149.12 forms which include a joint and survivor optional retirement 149.13 annuity form potentially applicable to the surviving spouse of a 149.14 member, the executive director of the public pension plan shall 149.15 send a copy of the written statement required by subdivision 2 149.16 to the spouse of the member before the member's election of an 149.17 optional retirement annuity. 149.18 (b) Following the election of a retirement annuity by the 149.19 member, a copy of the completed retirement annuity application 149.20 and retirement annuity beneficiary form, if applicable, must be 149.21 sent by the public pension plan to the spouse of the retiring 149.22 member. A signed acknowledgment must be required from the 149.23 spouse confirming receipt of a copy of the completed retirement 149.24 annuity application and retirement annuity beneficiary form, 149.25 unless the spouse's signature confirming the receipt is on the 149.26 annuity application form. If the required signed acknowledgment 149.27 is not received from the spouse within 30 days, the public 149.28 pension plan must send another copy of the completed retirement 149.29 annuity application and retirement annuity beneficiary form, if 149.30 applicable, to the spouse by certified mail with restricted 149.31 delivery. 149.32 Sec. 36. [356.465] [SUPPLEMENTAL NEEDS TRUST AS OPTIONAL 149.33 ANNUITY FORM RECIPIENT.] 149.34 Subdivision 1. [INCLUSION AS RECIPIENT.] Notwithstanding 149.35 any provision to the contrary of the laws, articles of 149.36 incorporation, or bylaws governing a covered retirement plan 150.1 specified in subdivision 3, a retiring member may designate a 150.2 qualified supplemental needs trust under subdivision 2 as the 150.3 remainder recipient on an optional retirement annuity form for a 150.4 period not to exceed the lifetime of the beneficiary of the 150.5 supplemental needs trust. 150.6 Subd. 2. [DEFINITION OF QUALIFIED SUPPLEMENTAL NEEDS 150.7 TRUST.] A qualified supplemental needs trust is a trust that: 150.8 (1) was established on or after July 1, 1992; 150.9 (2) was established solely for the benefit of one person 150.10 who has a disability under federal Social Security 150.11 Administration supplemental security income or retirement, 150.12 survivors, and disability insurance disability determination 150.13 standards and who was determined as such before the creation of 150.14 the trust; 150.15 (3) is funded, in whole or in part, by the primary 150.16 recipient of the optional annuity form and, unless the trust is 150.17 a Zebley trust, is not funded by the beneficiary, the 150.18 beneficiary's spouse, or a person who is required to pay a sum 150.19 to or for the trust beneficiary under the terms of litigation or 150.20 a litigation settlement; 150.21 (4) is established to cover reasonable living expenses and 150.22 other basic needs of the disabilitant, in whole or in part, in 150.23 instances when public assistance does not provide sufficiently 150.24 for these needs; 150.25 (5) is not permitted to make disbursement to replace or 150.26 reduce public assistance otherwise available; 150.27 (6) is irrevocable; 150.28 (7) terminates upon the death of the disabled person for 150.29 whose benefit it was established; and 150.30 (8) is determined by the executive director to be a trust 150.31 that contains excluded assets for purposes of the qualification 150.32 for public entitlement benefits under the applicable federal and 150.33 state laws and regulations. 150.34 Subd. 3. [COVERED RETIREMENT PLANS.] The provisions of 150.35 this section apply to the following retirement plans: 150.36 (1) the general state employees retirement plan of the 151.1 Minnesota state retirement system established under chapter 352; 151.2 (2) the correctional state employees retirement plan of the 151.3 Minnesota state retirement system established under chapter 352; 151.4 (3) the state patrol retirement plan established under 151.5 chapter 352B; 151.6 (4) the legislators retirement plan established under 151.7 chapter 3A; 151.8 (5) the judges retirement plan established under chapter 151.9 490; 151.10 (6) the general employees retirement plan of the public 151.11 employees retirement association established under chapter 353; 151.12 (7) the public employees police and fire plan of the public 151.13 employees retirement association established under chapter 353; 151.14 (8) the teachers retirement plan established under chapter 151.15 354; 151.16 (9) the Duluth teachers retirement fund association 151.17 established under chapter 354A; 151.18 (10) the St. Paul teachers retirement fund association 151.19 established under chapter 354A; 151.20 (11) the Minneapolis teachers retirement fund association 151.21 established under chapter 354A; 151.22 (12) the Minneapolis employees retirement plan established 151.23 under chapter 422A; 151.24 (13) the Minneapolis firefighters relief association 151.25 established under chapter 423C; 151.26 (14) the Minneapolis police relief association established 151.27 under chapter 423B; and 151.28 (15) the local government correctional service retirement 151.29 plan of the public employees retirement association established 151.30 under chapter 353E. 151.31 REEMPLOYED ANNUITANT EARNINGS DISPOSITION 151.32 Sec. 37. [356.47] [DISPOSITION OF AMOUNT IN EXCESS OF 151.33 REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.] 151.34 Subdivision 1. [APPLICATION.] This section applies to the 151.35 balance of annual retirement annuities on the amount of 151.36 retirement annuity reductions after reemployed annuitant 152.1 earnings limitations for retirement plans governed by section 152.2 352.115, subdivision 10; 353.37; 354.44, subdivision 5; or 152.3 354A.31, subdivision 3. 152.4 Subd. 2. [RECORDKEEPING; REPORTING.] The chief 152.5 administrative officer of each retirement plan shall keep 152.6 records for each reemployed annuitant of the amount of the 152.7 annuity reduction. This amount must be reported to each member 152.8 at least once each year. 152.9 Subd. 3. [PAYMENT.] (a) Upon the retired member attaining 152.10 the age of 65 years or upon the first day of the month next 152.11 following the month occurring one year after the termination of 152.12 the reemployment that gave rise to the limitation, whichever is 152.13 later, and the filing of a written application, the retired 152.14 member is entitled to the payment, in a lump sum, of the value 152.15 of the person's amount under subdivision 2, plus interest at the 152.16 compound annual rate of six percent from the date that the 152.17 amount was deducted from the retirement annuity to the date of 152.18 payment. 152.19 (b) The written application must be on a form prescribed by 152.20 the chief administrative officer of the applicable retirement 152.21 plan. 152.22 (c) If the retired member dies before the payment provided 152.23 for in paragraph (a) is made, the amount is payable, upon 152.24 written application, to the deceased person's surviving spouse, 152.25 or if none, to the deceased person's designated beneficiary, or 152.26 if none, to the deceased person's estate. 152.27 MARRIAGE DISSOLUTION RETIREMENT 152.28 COVERAGE INFORMATION 152.29 Sec. 38. [356.49] [PROVISION OF INFORMATION IN THE EVENT 152.30 OF MARRIAGE DISSOLUTION.] 152.31 Subdivision 1. [INFORMATION FOR A PENDING MARRIAGE 152.32 DISSOLUTION.] (a) Upon receipt of a written request by a person 152.33 with access to the data under subdivision 3 who cites this 152.34 statute, a public or private pension plan administrator must 152.35 provide the court and the parties to a marriage dissolution 152.36 action involving a plan member or former plan member with 153.1 information regarding pension benefits or rights of the plan 153.2 member or former plan member. The pension plan shall provide 153.3 this information upon the request of the court or a party to the 153.4 action without requiring a signed authorization from the plan 153.5 member or former plan member. 153.6 (b) The information must include the pension benefits or 153.7 rights of the plan member or former plan member as of the first 153.8 day of the month following the date of the request, or as of the 153.9 end of the previous fiscal year for the plan, and as of the date 153.10 of valuation of marital assets under section 518.58, if the 153.11 person requesting the information specifies that date. The 153.12 information must include the accrued service credit of the 153.13 person, the credited salary of the person for the most current 153.14 five-year period, a summary of the benefit plan, and any other 153.15 information relevant to the calculation of the present value of 153.16 the benefits or rights. 153.17 Subd. 2. [INFORMATION FOR AN EXISTING DISSOLUTION DECREE.] 153.18 If a marriage dissolution decree rendered by a court of 153.19 competent jurisdiction prior to August 1, 1987, provided a 153.20 procedure for the distribution of future pension plan payments, 153.21 upon request the applicable pension plan administrator shall 153.22 provide on a timely basis to the court and the parties to the 153.23 action, the required information to implement that procedure 153.24 without requiring a signed authorization from the plan member or 153.25 former plan member. 153.26 Subd. 3. [ACCESS TO DATA.] Notwithstanding any provision 153.27 of chapter 13 to the contrary, an administrator may release 153.28 private or confidential data on individuals to the court, the 153.29 parties to a marriage dissolution, their attorneys, and an 153.30 actuary appointed under section 518.582, to the extent necessary 153.31 to comply with this section, but only if the administrator has 153.32 received a copy of the legal petition showing that an action for 153.33 marriage dissolution has commenced and a copy of the affidavit 153.34 of service showing that the petition has been served on the 153.35 responding party to the action. 153.36 SERVICE AND SALARY CREDIT UPON 154.1 WRONGFUL DISCHARGE 154.2 Sec. 39. Minnesota Statutes 2000, section 356.50, is 154.3 amended to read: 154.4 356.50 [SERVICE AND SALARY CREDIT FROM BACK PAY AWARDS IN 154.5 THE EVENT OF WRONGFUL DISCHARGE.] 154.6 (a) A person who is wrongfully discharged from public 154.7 employment that gave rise to coverage by a public employee 154.8 pension planlistedenumerated in section 356.30, subdivision 3, 154.9 is entitled to obtain allowable service credit from the 154.10 applicable public employee pension plan for the applicable 154.11 period caused by the wrongful discharge. 154.12 (b) A person is wrongfully discharged for purposes of this 154.13 section if: 154.14 (1) the person has been determined by a court of competent 154.15 jurisdiction or by an arbitrator in binding arbitration, 154.16 whichever applies, to have been wrongfully discharged from 154.17 public employment; 154.18 (2) the person received an award of back pay with respect 154.19 to that discharge; and 154.20 (3) the award does not include any amount for any lost or 154.21 interrupted public pension plan coverage. 154.22(b)(c) To obtain the public pension plan allowable service 154.23 credit, the person shall pay the required member contribution 154.24 amount. The required member contribution amount is the member 154.25 contribution rate or rates in effect for the pension plan during 154.26 the period of service covered by the back pay award, applied to 154.27 the unpaid gross salary amounts of the back pay award including 154.28 reemployment insurance, workers' compensation or wages from 154.29 other sources which reduced the back award. No contributions 154.30 shall be made under this clause for compensation covered by a 154.31 public pension plan listed in section 356.30, subdivision 3, for 154.32 employment during the removal period. The person shall pay the 154.33 required member contribution amount within 60 days of the date 154.34 of receipt of the back pay award, within 60 days of April 14, 154.35 1992, or within 60 days of a billing from the retirement fund, 154.36 whichever is later. 155.1(c)(d) The public employer who wrongfully discharged the 155.2 public employee must pay an employer contribution on the back 155.3 pay award. The employer contribution must be based on the 155.4 employer contribution rate or rates in effect for the pension 155.5 plan during the period of service covered by the back pay award, 155.6 applied to the salary amount on which the member contribution 155.7 amount was determined under paragraph(b)(c). Interest on both 155.8 the required member and employer contribution amount must be 155.9 paid by the employer at the annual compound rate of 8.5 percent 155.10 per year, expressed monthly, between the date the contribution 155.11 amount would have been paid to the date of actual payment. The 155.12 employer payment must be made within 30 days of the payment 155.13 under paragraph(b)(c). 155.14 Sec. 40. Minnesota Statutes 2000, section 356.55, as 155.15 amended by Laws 2001, First Special Session chapter 10, article 155.16 6, section 16, is amended to read: 155.17 356.55 [PRIOR SERVICE CREDIT PURCHASE PAYMENT AMOUNT 155.18 DETERMINATION PROCEDURE.] 155.19 Subdivision 1. [APPLICATION.] (a) Unless the prior service 155.20 credit purchase authorization special law or general statute 155.21 provision explicitly specifies a different purchase payment 155.22 amount determination procedure, this section governs the 155.23 determination of the prior service credit purchase payment 155.24 amount of any prior service credit purchase. 155.25 (b) The purchase payment amount determination procedure 155.26 must recognize any service credit accrued to the purchaser in a 155.27 pension planlistedenumerated in section 356.30, subdivision 3. 155.28 (c) Any service credit in a Minnesota defined benefit 155.29 public employee pension plan available to be reinstated by the 155.30 purchaser through the repayment of a refund of member or 155.31 employee contributions previously received must be repaid in 155.32 full before any purchase of prior service credit payment is made 155.33 under this section. 155.34 Subd. 2. [DETERMINATION.] (a) Unless the prior service 155.35 credit purchase minimum purchase payment amount determined under 155.36 paragraph (d) is greater, the prior service credit purchase 156.1 amount is the result obtained by subtracting the amount 156.2 determined under paragraph (c) from the amount determined under 156.3 paragraph (b). 156.4 (b) The present value of the unreduced single life 156.5 retirement annuity, with the purchase of the additional service 156.6 credit included, must be calculated as follows: 156.7 (1) the age at first eligibility for an unreduced single 156.8 life retirement annuity, including the purchase of the 156.9 additional service credit, must be determined; 156.10 (2) the length of total service credit, including the 156.11 period of the purchase of the additional service credit, at the 156.12 age determined under clause (1) must be determined; 156.13 (3) the highest five successive years average salary at the 156.14 age determined under clause (1), assuming five percent annual 156.15 compounding salary increases from the most current annual salary 156.16 amount at the age determined under clause (1), must be 156.17 determined; 156.18 (4) using the benefit accrual rate or rates applicable to 156.19 the prospective purchaser of the service credit based on the 156.20 prospective purchaser's actual date of entry into covered 156.21 service, the length of service determined under clause (2), and 156.22 the final average salary determined under clause (3), the annual 156.23 unreduced single life retirement annuity amount must be 156.24 determined; 156.25 (5) the actuarial present value of the projected annual 156.26 unreduced single life retirement annuity amount determined under 156.27 clause (4) at the age determined under clause (1), using the 156.28 same actuarial factor that the plan would use to determine 156.29 actuarial equivalence for optional annuity forms and related 156.30 purposes, must be determined; and 156.31 (6) the discounted value of the amount determined under 156.32 clause (5) to the date of the prospective purchase, using an 156.33 interest rate of 8.5 percent and no mortality probability 156.34 decrement, must be determined. 156.35 (c) The present value of the unreduced single life 156.36 retirement annuity, without the purchase of the additional 157.1 service credit included, must be calculated as follows: 157.2 (1) the age at first eligibility for an unreduced single 157.3 life retirement annuity, not including the purchase of 157.4 additional service credit, must be determined; 157.5 (2) the length of accrued service credit, without the 157.6 period of the purchase of the additional service credit, at the 157.7 age determined under clause (1), must be determined; 157.8 (3) the highest five successive years average salary at the 157.9 age determined under clause (1), assuming five percent annual 157.10 compounding salary increases from the most current annual salary 157.11 amount to the age determined under clause (1), must be 157.12 determined; 157.13 (4) using the benefit accrual rate or rates applicable to 157.14 the prospective purchaser of the service credit based on the 157.15 prospective purchaser's actual date of entry into covered 157.16 service the length of service credit determined under clause 157.17 (2), and the final average salary determined under clause (3), 157.18 the annual unreduced single life retirement annuity amount must 157.19 be determined; 157.20 (5) the actuarial present value of the projected annual 157.21 unreduced single life retirement annuity amount determined under 157.22 clause (4) at the age determined under clause (1), using the 157.23 same actuarial factor that the plan would use to determine 157.24 actuarial equivalence for optional annuity forms and related 157.25 purposes, must be determined; 157.26 (6) the discounted value of the amount determined under 157.27 clause (5) to the date of the prospective purchase, using an 157.28 interest rate of 8.5 percent and no mortality probability 157.29 decrement, must be determined; and 157.30 (7) the net value of the discounted value determined under 157.31 clause (6), must be determined by applying a service ratio, 157.32 where the numerator is the total length of credited service 157.33 determined under paragraph (b), clause (2), reduced by the 157.34 period of the additional service credit proposed to be 157.35 purchased, and where the denominator is the total length of 157.36 service credit determined under clause (2). 158.1 (d) The minimum prior service credit purchase payment 158.2 amount is the amount determined by multiplying the most current 158.3 annual salary of the prospective purchaser by the combined 158.4 current employee, employer, and any additional employer 158.5 contribution rates for the applicable pension plan and by 158.6 multiplying that result by the number of years of service or 158.7 fractions of years of service of the potential service credit 158.8 purchase. 158.9 Subd. 3. [SOURCE OF DETERMINATION.] The prior service 158.10 credit purchase payment amounts under subdivision 2 must be 158.11 calculated by the chief administrative officer of the public 158.12 pension plan using a prior service credit purchase payment 158.13 amount determination process that has been verified for accuracy 158.14 and consistency under this section by the commission-retained 158.15 actuary. That verification must be in writing and must occur 158.16 before the first prior service credit purchase for the plan 158.17 under this section is accepted and every five years thereafter 158.18 or whenever the preretirement interest rate, postretirement 158.19 interest rate, payroll growth, or mortality actuarial assumption 158.20 for the applicable pension plan is modified under section 158.21 356.215, whichever occurs first. 158.22 Subd. 4. [PRIOR SERVICE CREDIT PURCHASE PROCESSING FEE.] A 158.23 public pension plan may establish a fee to be charged to the 158.24 prospective purchaser for processing a prior service credit 158.25 purchase application and the prior service credit purchase 158.26 payment amount calculation. The fee must be established by the 158.27 governing board of the pension plan and must be uniform for 158.28 comparable service credit purchase situations or actuarial 158.29 calculation requests. The prior service credit purchase 158.30 processing fee structure must be published by the chief 158.31 administrative officer of the applicable retirement plan in the 158.32 State Register. 158.33 Subd. 5. [PAYMENT RESPONSIBILITY; EMPLOYER OPTION.] Unless 158.34 the prior service credit purchase authorization special law or 158.35 general statute provision explicitly specifies otherwise, the 158.36 prior service credit purchase payment amount determined under 159.1 subdivision 2 is payable by the purchaser, but. However, the 159.2 former employer of the purchaser or the current employer of the 159.3 purchaser may, at its discretion, pay all or a portion of the 159.4 purchase payment amount in excess of an amount equal to the 159.5 employee contribution rate or rates in effect during the prior 159.6 service period applied to the actual salary rates in effect 159.7 during the prior service period, plus annual compound interest 159.8 at the rate of 8.5 percent from the date on which the 159.9 contributions would have been made if made contemporaneous with 159.10 the service period to the date on which the payment is actually 159.11 made. 159.12 Subd. 6. [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a) 159.13 As part of the regular data reporting provided to the consulting 159.14 actuary retained by the legislative commission on pensions and 159.15 retirement annually, the chief administrative officer of each 159.16 public pension plan that has accepted a prior service credit 159.17 purchase payment under this section shall report for any 159.18 purchase, the purchaser, the purchaser's employer, the age of 159.19 the purchaser, the period of the purchase, the purchaser's 159.20 prepurchase accrued service credit, the purchaser's postpurchase 159.21 accrued service credit, the purchaser's prior service credit 159.22 payment, the prior service credit payment made by the 159.23 purchaser's employer, and the amount of the additional benefit 159.24 or annuity purchased. 159.25 (b) As a supplemental report to the regular annual 159.26 actuarial valuation for the applicable public pension plan 159.27 prepared by the consulting actuary retained by the legislative 159.28 commission on pensions and retirement,there must bethe actuary 159.29 shall provide a comparison for each purchase showing the total 159.30 prior service credit payment received from all sources and the 159.31 increased public pension plan actuarial accrued liability 159.32 resulting from each purchase. 159.33 Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 159.34 PROCEDURE.] (a) This section expires and is repealed on July 1, 159.35 2003. 159.36 (b) Authority for any public pension plan to accept a prior 160.1 service credit payment that is calculated in a timely fashion 160.2 under this section expires on October 1, 2003. 160.3 Sec. 41. Minnesota Statutes 2000, section 356.551, is 160.4 amended to read: 160.5 356.551 [POST JULY 1,20012003, PRIOR SERVICE CREDIT 160.6 PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.] 160.7(a)Subdivision 1. [APPLICATION.] Unless the prior service 160.8 credit purchase authorization special law or general statute 160.9 provision explicitly specifies a different purchase payment 160.10 amount determination procedure, and if section 356.55 has 160.11 expired, this section governs the determination of the prior 160.12 service credit purchase payment amount of any prior service 160.13 credit purchase. 160.14(b)Subd. 2. [DETERMINATION.] The prior service credit 160.15 purchase amount is an amount equal to the actuarial present 160.16 value, on the date of payment, as calculated by the chief 160.17 administrative officer of the pension plan and reviewed by the 160.18 actuary retained by the legislative commission on pensions and 160.19 retirement, of the amount of the additional retirement annuity 160.20 obtained by the acquisition of the additional service credit in 160.21 this section. Calculation of this amount must be made using the 160.22 preretirement interest rate applicable to the public pension 160.23 plan specified in section 356.215, subdivision 4d, and the 160.24 mortality table adopted for the public pension plan. The 160.25 calculation must assume continuous future service in the public 160.26 pension plan until, and retirement at, the age at which the 160.27 minimum requirements of the fund for normal retirement or 160.28 retirement with an annuity unreduced for retirement at an early 160.29 age, including section 356.30, are met with the additional 160.30 service credit purchased. The calculation must also assume a 160.31 full-time equivalent salary, or actual salary, whichever is 160.32 greater, and a future salary history that includes annual salary 160.33 increases at the applicable salary increase rate for the plan 160.34 specified in section 356.215, subdivision 4d. Payment must be 160.35 made in one lump sum within one year of the prior service credit 160.36 authorization. Payment of the amount calculated under this 161.1 section must be made by the applicable eligible person. 161.2 However, the current employer or the prior employer may, at its 161.3 discretion, pay all or any portion of the payment amount that 161.4 exceeds an amount equal to the employee contribution rates in 161.5 effect during the period or periods of prior service applied to 161.6 the actual salary rates in effect during the period or periods 161.7 of prior service, plus interest at the rate of 8.5 percent a 161.8 year compounded annually from the date on which the 161.9 contributions would otherwise have been made to the date on 161.10 which the payment is made. If the employer agrees to payments 161.11 under thisparagraphsubdivision, the purchaser must make the 161.12 employee payments required under thisparagraphsubdivision 161.13 within 290 days of the prior service credit authorization. If 161.14 that employee payment is made, the employer payment under 161.15 thisparagraphsubdivision must be remitted to the chief 161.16 administrative officer of the public pension plan within 60 days 161.17 of receipt by the chief administrative officer of the employee 161.18 payments specified under thisparagraphsubdivision. 161.19(c)Subd. 3. [DOCUMENTATION.] The prospective purchaser 161.20 must provide any relevant documentation required by the chief 161.21 administrative officer of the public pension plan to determine 161.22 eligibility for the prior service credit under this section. 161.23(d)Subd. 4. [PAYMENT PRECONDITION FOR CREDIT GRANT.] 161.24 Service credit for the purchase period must be granted by the 161.25 public pension plan to the purchaser upon receipt of the 161.26 purchase payment amount specified inparagraph (b)subdivision 2. 161.27 Sec. 42. Minnesota Statutes 2001 Supplement, section 161.28 356.555, is amended to read: 161.29 356.555 [PARENTAL OR FAMILY LEAVE SERVICE CREDIT PURCHASE.] 161.30 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZATION.] 161.31 (a) Notwithstanding any provision to the contrary of the laws 161.32 governing a covered pension plan enumerated in subdivision 4, a 161.33 member of the pension plan who has at least three years of 161.34 allowable service covered by the applicable pension plan and who 161.35 was granted by the employer a parental leave of absence as 161.36 defined in paragraph (b), or who was granted by the employer a 162.1 family leave of absence as defined in paragraph (c), or who had 162.2 a parental or family-related break in employment, as defined in 162.3 paragraph (d), for which the person did not previously receive 162.4 service credit or for which the person did not receive or 162.5 purchase service credit from another defined benefit public 162.6 employee pension plan, is entitled to purchase the actual period 162.7 of the leave or of the break in service, up to five years, of 162.8 allowable service credit in the applicable retirement plan. The 162.9 purchase payment amount is governed by section 356.55. 162.10 (b) For purposes of this section, a parental leave of 162.11 absence is a temporary period of interruption of or separation 162.12 from active employment for the purposes of handling maternity or 162.13 paternity duties that has been approved by the employing unit 162.14 and that includes the right of reinstatement to employment. 162.15 (c) For purposes of this section, a family leave of absence 162.16 is a family leave under United States Code, title 42, section 162.17 12631, as amended. 162.18 (d) For purposes of this section, a parental or 162.19 family-related break in employment is a period following a 162.20 termination of active employment primarily for the purpose of 162.21 the birth of a child, the adoption of a child, or the provision 162.22 of care to a near relative or in-law, after which the person 162.23 returned to the prior employing unit or to an employing unit 162.24 covered by the same pension plan that provided retirement 162.25 coverage immediately prior to the termination of employment. 162.26 Subd. 2. [APPLICATION AND DOCUMENTATION.] (a) A person who 162.27 desires to purchase service credit under subdivision 1 must 162.28 apply for the service credit purchase with the chief 162.29 administrative officer of the enumerated pension plan. 162.30 (b) The application must include all necessary 162.31 documentation of the qualifications of the person to make the 162.32 purchase, signed written permission to allow the chief 162.33 administrative officer to request and receive necessary 162.34 verification of all applicable facts and eligibility 162.35 requirements, and any other relevant information that the chief 162.36 administrative officer may require. 163.1 Subd. 3. [SERVICE CREDIT GRANT.] Allowable and formula 163.2 service credit in the applicable enumerated pension plan for the 163.3 purchase period must be granted to the purchaser upon receipt of 163.4 the purchase payment amount calculated under section 356.55. 163.5 Payment of the purchase amount must be made before the person 163.6 retires. 163.7 Subd. 4. [COVERED PENSION PLANS.] This section applies to 163.8 the following pension plans: 163.9 (1) the general state employees retirement plan governed by 163.10 chapter 352; 163.11 (2) the correctional state employees retirement plan 163.12 governed by chapter 352; 163.13 (3) the generalpublicemployees retirement plan of the 163.14 public employees retirement association governed by chapter 353; 163.15 (4) the public employees police and fire plan governed by 163.16 chapter 353; 163.17 (5) the teachers retirement plan governed by chapter 354; 163.18 (6) the Minneapolis teachers retirement fund association 163.19 governed by chapter 354A; 163.20 (7) the Saint Paul teachers retirement fund association 163.21 governed by chapter 354A; 163.22 (8) the Duluth teachers retirement fund association 163.23 governed by chapter 354A; 163.24 (9) the Minneapolis employees retirement plan governed by 163.25 chapter 422A; 163.26 (10) the Minneapolis police relief association governed by 163.27 chapter 423B; and 163.28 (11) the Minneapolis fire department relief association 163.29 governed bysections 69.25 to 69.53 and augmented by Laws 1959,163.30chapters 213, 491, and 568, and other special local legislation163.31 chapter 423C. 163.32 COVERED SALARY LIMITATION 163.33 Sec. 43. Minnesota Statutes 2000, section 356.611, is 163.34 amended to read: 163.35 356.611 [LIMITATION ON PUBLIC EMPLOYEE SALARIES FOR PENSION 163.36 PURPOSES.] 164.1 Subdivision 1. [STATE SALARY LIMITATIONS.] (a) 164.2 Notwithstanding any provision of law, bylaws, articles of 164.3 incorporation, retirement and disability allowance plan 164.4 agreements, or retirement plan contracts to the contrary, the 164.5 covered salary for pension purposes for a plan participant of a 164.6 covered retirement fundunderenumerated in section 356.30, 164.7 subdivision 3, may not exceed 95 percent of the salary 164.8 established for the governor under section 15A.082 at the time 164.9 the person received the salary. 164.10 (b) This section does not apply to a salary paid: 164.11 (1) to the governor; 164.12 (2) to an employee of a political subdivision in a position 164.13 that is excluded from the limit as specified under section 164.14 43A.17, subdivision 9; or 164.15 (3) to a state employee in a position for which the 164.16 commissioner of employee relations has approved a salary rate 164.17 that exceeds 95 percent of the governor's salary. 164.18 (c) The limited covered salary determined under this 164.19 section must be used in determining employee and employer 164.20 contributions and in determining retirement annuities and other 164.21 benefits under the respective covered retirement fund and under 164.22 this chapter. 164.23 Subd. 2. [FEDERAL COMPENSATION LIMITS.] For members first 164.24 contributing to a covered pension plancovered underenumerated 164.25 in section 356.30, subdivision 3, on or after July 1, 1995, 164.26 compensation in excess of the limitation set forth in Internal 164.27 Revenue Code 401(a)(17)shallmay not be included for 164.28 contribution and benefit computation purposes. The compensation 164.29 limit set forth in Internal Revenue Code 401(a)(17) on June 30, 164.30 1993,shall applyapplies to members first contributing before 164.31 July 1, 1995. 164.32 MEMBER CONTRIBUTION EMPLOYER PICK UP 164.33 Sec. 44. Minnesota Statutes 2001 Supplement, section 164.34 356.62, is amended to read: 164.35 356.62 [PAYMENT OF EMPLOYEE CONTRIBUTION.] 164.36 (a) For purposes of any public pension plan, as defined in 165.1 section 365.615, paragraph (b), each employer shall pick up the 165.2 employee contributions required pursuant to law or the pension 165.3 plan for all salary payable after December 31, 1982. If the 165.4 United States Treasury department rules thatpursuant tounder 165.5 section 414(h) of the Internal Revenue Code of 1986, as amended 165.6 through December 31, 1992, that these picked up contributions 165.7 are not includable in the employee's adjusted gross income until 165.8 they are distributed or made available, then these picked up 165.9 contributionsshallmust be treated as employer contributions in 165.10 determining tax treatmentpursuant tounder the Internal Revenue 165.11 Code of 1986, as amended through December 31, 1992, and the 165.12 employer shall discontinue withholding federal income taxes on 165.13 the amount of these contributions. The employer shall pay these 165.14 picked up contributions from the same source of funds as is used 165.15 to pay the salary of the employee. The employer shall pick up 165.16 these employee contributions by a reduction in the cash salary 165.17 of the employee. 165.18 (b) Employee contributions that are picked upshallmust be 165.19 treated for all purposes of the public pension plan in the same 165.20 manner and to the same extent as employee contributions that 165.21 were made prior to the date on which the employee contributions 165.22 pick up began. The amount of the employee contributions that 165.23 are picked upshallmust be included in the salary upon which 165.24 retirement coverage is credited and retirement and survivor's 165.25 benefits are determined. For purposes of this section, 165.26 "employee" means any person covered by a public pension plan. 165.27 For purposes of this section, "employee contributions" include 165.28 any sums deducted from the employee's salary or wages or 165.29 otherwise paid in lieu thereof, regardless of whether they are 165.30 denominated contributions by the public pension plan. 165.31 (c) For any calendar year in which withholding has been 165.32 reducedpursuant tounder this section, the employing unit shall 165.33 supply each employee and the commissioner of revenue with an 165.34 information return indicating the amount of the employer's 165.35 picked-up contributions for the calendar year that were not 165.36 subject to withholding. This returnshallmust be provided to 166.1 the employee not later than January 31 of the succeeding 166.2 calendar year. The commissioner of revenue shall prescribe the 166.3 form of the return and the provisions of section 289A.12shall166.4 must apply to the extent not inconsistent with the provisions of 166.5 this section. 166.6 PENSION ASSET AND INVESTMENT 166.7 LIMITATIONS 166.8 Sec. 45. [356.63] [LIMITATION ON USE OF PUBLIC PENSION 166.9 PLAN ASSETS.] 166.10 (a) Money held by or credited to a public pension plan as 166.11 assets, including employer and employee contributions, state 166.12 aid, appropriations from the state or a governmental 166.13 subdivision, and accrued earnings on investments, constitutes a 166.14 dedicated fund. The dedicated fund may be used exclusively to 166.15 pay retirement annuities, service pensions, disability benefits, 166.16 survivor benefits, refunds of contributions, or other benefits 166.17 provided under the benefit plan document or documents governing 166.18 the public pension plan, and to pay reasonable administrative 166.19 expenses approved by the governing board of the public pension 166.20 plan or by another appropriate authority. No assets of a public 166.21 pension plan may be loaned or transferred to the state or a 166.22 governmental subdivision or be used to amortize an unfunded 166.23 actuarial accrued liability in another public pension plan or 166.24 fund, whether or not the plan providing the assets consolidates 166.25 or has consolidated with the plan receiving the assets. Nothing 166.26 in this section prohibits a public pension plan or the state 166.27 board of investment from investing the assets of a plan as 166.28 authorized by law, including the investment of the assets of 166.29 public pension plans by the state board of investment in a 166.30 commingled investment fund. 166.31 (b) A public pension plan for purposes of this section 166.32 means a pension plan or fund specified in section 356.20, 166.33 subdivision 2, or 356.30, subdivision 3, or a retirement or 166.34 pension plan or fund, including a supplemental retirement plan 166.35 or fund, established, maintained, or supported by a governmental 166.36 subdivision or public body whose revenues are derived from 167.1 taxation, fees, assessments, or other public sources. 167.2 Sec. 46. [356.64] [REAL ESTATE INVESTMENTS.] 167.3 (a) Notwithstanding any law to the contrary, any public 167.4 pension plan whose assets are not invested by the state board of 167.5 investment may invest its funds in Minnesota situs nonfarm real 167.6 estate ownership interests or loans secured by mortgages or 167.7 deeds of trust if the investment is consistent with section 167.8 356A.04. 167.9 (b) Except to the extent authorized in the case of the 167.10 Minneapolis employees retirement fund under section 422A.05, 167.11 subdivision 2c, paragraph (a), an investment otherwise 167.12 authorized by this section must also comply with the 167.13 requirements and limitations of section 11A.24, subdivision 6. 167.14 ABANDONED PENSION FUND AMOUNTS 167.15 Sec. 47. Minnesota Statutes 2001 Supplement, section 167.16 356.65, subdivision 1, is amended to read: 167.17 Subdivision 1. [DEFINITIONS.] For purposes of this 167.18 section, unless the context clearly indicates otherwise, each of 167.19 the following termsshall havehas themeaningsmeaning given to 167.20themit: 167.21 (a) "Public pension fund" means any public pension plan as 167.22 defined in section356.615356.63, paragraph (b), and any 167.23 Minnesota volunteer firefighters relief association which is 167.24 establishedpursuant tounder chapter 424A and governedpursuant167.25tounder sections 69.771 to 69.776. 167.26 (b) "Unclaimed public pension fund amounts" means any 167.27 amounts representing accumulated member contributions, any 167.28 outstanding unpaid annuity, service pension or other retirement 167.29 benefit payments, including those made on warrants issued by the 167.30 commissioner of finance, which have been issued and delivered 167.31 for more than six months prior to the date of the end of the 167.32 fiscal year applicable to the public pension fund, and any 167.33 applicable interest to the credit of: 167.34 (1) an inactive or former member of a public pension fund 167.35 who is not entitled to a defined retirement annuity and who has 167.36 not applied for a refund of those amounts within five years 168.1 after the last member contribution was made; or 168.2 (2) a deceased inactive or former member of a public 168.3 pension fund if no survivor is entitled to a survivor benefit 168.4 and no survivor, designated beneficiary or legal representative 168.5 of the estate has applied for a refund of those amounts within 168.6 five years after the date of death of the inactive or former 168.7 member. 168.8 Sec. 48. Minnesota Statutes 2000, section 356.65, 168.9 subdivision 2, is amended to read: 168.10 Subd. 2. [DISPOSITION OF ABANDONED AMOUNTS.] Any unclaimed 168.11 public pension fund amounts existing in any public pension 168.12 fundshall beare presumed to be abandoned, butshallare not 168.13besubject to the provisions of sections 345.31 to 345.60. 168.14 Unless the benefit plan of the public pension fund specifically 168.15 provides for a different disposition of unclaimed or abandoned 168.16 funds or amounts, any unclaimed public pension fund 168.17 amountsshallcancel andshallmust be credited to the public 168.18 pension fund. If the unclaimed public pension fund amount 168.19 exceeds $25 and the inactive or former member again becomes a 168.20 member of the applicable public pensionfundplan or applies for 168.21 a retirement annuitypursuant tounder section 3A.12, 352.72, 168.22 352B.30, 352C.051, 353.71, 354.60, 356.30, or 422A.16, 168.23 subdivision 8, whicheveris applicable,applies, the canceled 168.24 amountshallmust be restored to the credit of the person. 168.25 HEALTH INSURANCE WITHHOLDING 168.26 Sec. 49. Minnesota Statutes 2000, section 356.87, is 168.27 amended to read: 168.28 356.87 [HEALTH INSURANCE WITHHOLDING.] 168.29 (a) Upon authorization of a person entitled to receive a 168.30 retirement annuity, disability benefit or survivor benefit, the 168.31 executive director of a public pension fundlistedenumerated in 168.32 section 356.20, subdivision 2, shall withhold health insurance 168.33 premium amounts from the retirement annuity, disability benefit 168.34 or survivor benefit, and shall pay the premium amounts to the 168.35 public employees insurance program. 168.36 (b) The public employees insurance program shall reimburse 169.1 a public pension fund for the administrative expense of 169.2 withholding the premium amounts and shall assume liability for 169.3 the failure of a public pension fund to properly withhold the 169.4 premium amounts. 169.5 RETIREMENT PLAN 169.6 ADMINISTRATION 169.7 Sec. 50. [356B.05] [PUBLIC PENSION ADMINISTRATION 169.8 LEGISLATION.] 169.9 (a) Proposed administrative legislation recommended by or 169.10 on behalf of the Minnesota state retirement system, the public 169.11 employees retirement association, the teachers retirement 169.12 association, the Minneapolis employees retirement fund, or a 169.13 first class city teachers retirement fund association must be 169.14 presented to the legislative commission on pensions and 169.15 retirement, the state and local governmental operations 169.16 committee of the senate, and the governmental operations and 169.17 veterans affairs policy committee of the house of 169.18 representatives on or before October 1 of each year in order for 169.19 the proposed administrative legislation to be acted upon during 169.20 the upcoming legislative session. The executive director or the 169.21 deputy executive director of the legislative commission on 169.22 pensions and retirement shall provide written comments on the 169.23 proposed administrative provisions to the public pension plans 169.24 by November 15 of each year. 169.25 (b) Proposed administrative legislation recommended by or 169.26 on behalf of a public employee pension plan or system under 169.27 paragraph (a) must address provisions: 169.28 (1) authorizing allowable service credit for leaves of 169.29 absence and related circumstances; 169.30 (2) governing offsets or deductions from the amount of 169.31 disability benefits; 169.32 (3) authorizing the purchase of allowable service credit 169.33 for prior uncredited periods; 169.34 (4) governing subsequent employment earnings by reemployed 169.35 annuitants; and 169.36 (5) authorizing retroactive effect for retirement annuity 170.1 or benefit applications. 170.2 (c) Where possible and desirable, taking into account the 170.3 differences among the public pension plans in existing law and 170.4 the unique characteristics of the individual public pension fund 170.5 memberships, uniform provisions relating to paragraph (b) for 170.6 all applicable public pension plans must be presented for 170.7 consideration during the legislative session. Supporting 170.8 documentation setting forth the policy rationale for each set of 170.9 uniform provisions must accompany the proposed administrative 170.10 legislation. 170.11 Sec. 51. [356B.10] [PUBLIC PENSION FACILITIES.] 170.12 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 170.13 subdivision apply to this section. 170.14 (b) "Boards" mean the board of directors of the Minnesota 170.15 state retirement system, the board of trustees of the public 170.16 employees retirement association, and the board of trustees of 170.17 the teachers retirement association. 170.18 (c) "Commissioner" means the commissioner of administration. 170.19 Subd. 2. [BUILDING; RELATED FACILITIES.] (a) The 170.20 commissioner of administration may provide a building and 170.21 related facilities to be jointly occupied by the board of 170.22 directors of the Minnesota state retirement system, the board of 170.23 trustees of the public employees retirement association, and the 170.24 board of trustees of the teachers retirement association for the 170.25 administration of their public pension systems. 170.26 (b) Design of the facilities is not subject to section 170.27 16B.33. The competitive acquisition process set forth in 170.28 chapter 16C does not apply if the process set forth in 170.29 subdivision 3 is followed. 170.30 (c) The boards and the commissioner must submit the plans 170.31 for a public pension facility under this section to the chair of 170.32 the house ways and means committee and to the chair of the 170.33 senate state government finance committee for their approval 170.34 before the plans are implemented. 170.35 Subd. 3. [CONTRACTING PROCEDURES.] (a) The commissioner 170.36 may enter into a contract for facilities with a contractor to 171.1 furnish the architectural, engineering, and related services as 171.2 well as the labor, materials, supplies, equipment, and related 171.3 construction services on the basis of a request for 171.4 qualifications and competitive responses received through a 171.5 request for proposals process that must include the items listed 171.6 in paragraphs (b) to (i). 171.7 (b) Before issuing a request for qualifications and a 171.8 request for proposals, the commissioner, with the assistance of 171.9 the boards, shall prepare performance criteria and 171.10 specifications that include: 171.11 (1) a general floor plan or layout indicating the general 171.12 dimensions of the public building and space requirements; 171.13 (2) design criteria for the exterior and site area; 171.14 (3) performance specifications for all building systems and 171.15 components to ensure quality and cost efficiencies; 171.16 (4) conceptual floor plans for systems space; 171.17 (5) preferred types of interior finishes, styles of 171.18 windows, lighting and outlets, doors, and features such as 171.19 built-in counters and telephone wiring; 171.20 (6) mechanical and electrical requirements; 171.21 (7) special interior features required; and 171.22 (8) a completion schedule. 171.23 (c) The commissioner shall first solicit statements of 171.24 qualifications from eligible contractors and select more than 171.25 one qualified contractor based upon experience, technical 171.26 competence, past performance, capability to perform, and other 171.27 appropriate facts. Contractors selected under this process must 171.28 be, employ, or have as a partner, member, coventurer, or 171.29 subcontractor, persons licensed and registered under chapter 326 171.30 to provide the services required to design and complete the 171.31 project. The commissioner does not have to select any of the 171.32 respondents if none reasonably fulfill the criteria set forth in 171.33 this paragraph. 171.34 (d) The contractors selected shall be asked to respond to a 171.35 request for proposals. Responses must include site plans, 171.36 design concept, elevation, statement of material to be used, 172.1 floor layouts, a detailed development budget, and a total cost 172.2 to complete the project. The proposal must indicate that the 172.3 contractor obtained at least two proposals from subcontractors 172.4 for each item of work and must set forth how the subcontractors 172.5 were selected. The commissioner, with the assistance of the 172.6 boards, shall evaluate the proposals based upon design, cost, 172.7 quality, aesthetics, and the best overall value to the state 172.8 pension funds. The commissioner need not select any of the 172.9 proposals submitted and reserves the right to reject any and all 172.10 proposals, and may terminate the process or revise the request 172.11 for proposals and solicit new proposals if the commissioner 172.12 determines that the best interests of the pension funds would be 172.13 better served by doing so. Proposals submitted are nonpublic 172.14 data until the contract is awarded. 172.15 (e) The contractor selected must comply with sections 172.16 574.26 to 574.261. Before executing a final contract, the 172.17 contractor selected shall certify a firm construction price and 172.18 completion date. 172.19 (f) The commissioner may consider building sites in the 172.20 city of St. Paul and surrounding suburbs. 172.21 (g) Any land, building, or facility leased, constructed, or 172.22 acquired and any leasehold interest acquired under this section 172.23 must be held by the state in trust for the three retirement 172.24 systems as tenants in common. Each retirement system fund must 172.25 consider its interest as a fixed asset of its pension fund in 172.26 accordance with governmental accounting standards. 172.27 (h) The commissioner may lease to another governmental 172.28 subdivision, to a private company under contract with the state 172.29 board of investment, or with the board of directors of the 172.30 Minnesota state retirement system, whichever applies, to provide 172.31 deferred compensation services under section 352.96, any portion 172.32 of the funds' building and lands that is not required for their 172.33 direct use upon terms and conditions they deem to be in the best 172.34 interest of the pension funds. Any income accruing from the 172.35 rentals must be separately accounted for and utilized to offset 172.36 ongoing administrative expenses and any excess must be carried 173.1 forward for future administrative expenses. The commissioner 173.2 may also enter into lease agreements for the establishment of 173.3 satellite offices should the boards find them to be necessary in 173.4 order to assure their members reasonable access to their 173.5 services. The commissioner may lease under section 16B.24 any 173.6 portion of the facilities not required for the direct use of the 173.7 boards. 173.8 (i) The boards shall formulate and adopt a written working 173.9 agreement that sets forth the nature of each retirement system's 173.10 ownership interest, the duties and obligations of each system 173.11 toward the construction, operation, and maintenance costs of its 173.12 facilities, and identifies one retirement fund to serve as 173.13 manager for operating and maintenance purposes. The boards may 173.14 contract with independent third parties for maintenance-related 173.15 activities, services, and supplies, and may use the services of 173.16 the department of administration where economically feasible to 173.17 do so. If the boards cannot agree or resolve a dispute about 173.18 operations or maintenance of the facilities, they may request 173.19 the commissioner of administration to appoint a representative 173.20 from the department's real estate management division to serve 173.21 as arbitrator of the dispute with authority to issue a written 173.22 resolution of the dispute. 173.23 Subd. 4. [REVENUE BONDS.] The commissioner of finance, on 173.24 request of the governor, may sell and issue revenue bonds in an 173.25 aggregate principal amount up to $38,000,000 to achieve the 173.26 purposes described in subdivisions 1 and 2, plus the amount 173.27 needed to pay issuance costs and interest costs and to establish 173.28 necessary reserves to secure the bonds. The commissioner of 173.29 finance may issue bonds for the purpose of refunding bonds 173.30 issued under this subdivision. The bonds may be sold and issued 173.31 on terms and in a manner the commissioner of finance determines 173.32 to be in the best interests of the state. The proceeds of the 173.33 bonds must be credited to a bond proceeds account in the pension 173.34 building fund which the commissioner of finance must create in 173.35 the state treasury. 173.36 Subd. 5. [SECURITY.] The boards may pledge any or all 174.1 assets of the boards as security for the bonds. The bonds and 174.2 the interest on them must be paid solely from and secured by all 174.3 assets of the boards pledged and appropriated for these purposes 174.4 to the debt service fund created in subdivision 6 and any 174.5 investment income on the fund and any reserve established for 174.6 this purpose. The bonds are not public debt, and the full 174.7 faith, credit, and taxing powers of the state are not pledged 174.8 for their payment. The bonds and the interest on them must not 174.9 be paid, directly or indirectly, in whole or in part, from a tax 174.10 of statewide application on any class of property, income, 174.11 transaction, or privilege. 174.12 Subd. 6. [DEBT SERVICE FUND.] There is established in the 174.13 state treasury a separate and special pension building debt 174.14 service fund. Money in the funds managed by the boards is 174.15 appropriated to the boards for transfer to the pension building 174.16 debt service fund. Money appropriated and transferred to the 174.17 fund and investment income on it on hand or required to be 174.18 transferred to the fund must be used and is irrevocably 174.19 appropriated to pay when due the principal of and interest on 174.20 the bonds authorized in subdivision 4. 174.21 Subd. 7. [COVENANTS; AGREEMENTS.] The commissioner of 174.22 finance may, for and on behalf of the state, enter into 174.23 covenants and agreements not inconsistent with subdivisions 1 to 174.24 6 as may be necessary or desirable to facilitate the sale and 174.25 issuance of the bonds on terms favorable to the state, 174.26 including, but not limited to, covenants and agreements relating 174.27 to the payment of and security for the bonds, tax exemption, and 174.28 disclosure of information required by federal and state 174.29 securities laws. The covenants and agreements of the 174.30 commissioner of finance constitute an enforceable contract of 174.31 the state and the state pledges and agrees with the holders of 174.32 any bonds that the state will not limit or alter the rights 174.33 vested in the commissioner of finance to fulfill the terms of 174.34 the covenants or agreements made with the holders of the bonds, 174.35 or in any way impair the rights and remedies of the holders 174.36 until the bonds, together with the interest on them, with 175.1 interest on any unpaid installments of interest, and all costs 175.2 and expenses in connection with any action or proceeding by or 175.3 on behalf of the holders, are fully met and discharged. The 175.4 commissioner of finance may include this pledge and agreement of 175.5 the state in any covenant or agreement with the holders of the 175.6 bonds. Sections 16A.672 and 16A.675 apply to the bonds. 175.7 Sec. 52. [CROSS-REFERENCE CHANGES.] 175.8 In the next and subsequent editions of Minnesota Statutes, 175.9 the revisor of statutes shall, in each section indicated in 175.10 column A, replace the cross-reference specified in column B with 175.11 the cross-reference set forth in column C: 175.12 column A column B column C 175.13 3.751, subd. 1 356.89 356B.10 175.14 3A.02, subd. 1 356.215, subd. 4d 356.215, subd. 8 175.15 3A.02, subd. 4 356.215, subd. 4d 356.215, subd. 8 175.16 3A.11, subd. 1 356.215, subd. 4d 356.215, subd. 8 175.17 11A.18, subd. 6 356.215, subd. 4d 356.215, subd. 8 175.18 11A.18, subd. 9 356.215, subd. 4d 356.215, subd. 8 175.19 11A.18, subd. 11 356.215, subd. 4d 356.215, subd. 8 175.20 13.631, subd. 2 356.80 356.49 175.21 69.77, subd. 2b 356.215, subds. 4 356.215, subds. 4 to 15 175.22 to 4k 175.23 69.77, subd. 2b 356.215, subd. 4d 356.215, subd. 8 175.24 69.773, subd. 2 356.215, subd. 4d 356.215, subd. 8 175.25 69.773, subd. 4 356.215, subd. 4d 356.215, subd. 8 175.26 352.01, subd. 12 356.215, subd. 4d 356.215, subd. 8 175.27 352.115, subd. 3 356.119, subd. 1 356.315, subd. 1 175.28 352.115, subd. 3 356.119, subd. 2 356.315, subd. 2 175.29 352.115, subd. 10 356.58 356.47 175.30 352.119, subd. 2 356.215, subd. 4d 356.215, subd. 8 175.31 352.72, subd. 2 356.215, subd. 4d 356.215, subd. 8 175.32 352.87, subd. 3 356.119, subd. 2a 356.315, subd. 2a 175.33 352.91, subd. 5 356.215, subd. 4d 356.215, subd. 8 175.34 352.93, subd. 2 356.119, subd. 5 356.315, subd. 5 175.35 352.95, subd. 1 356.119, subd. 5 356.315, subd. 5 175.36 352B.08, subd. 2 356.119, subd. 6 356.315, subd. 6 176.1 352B.08, subd. 3 356.215, subd. 4d 356.215, subd. 8 176.2 352B.10, subd. 1 356.119, subd. 6 356.315, subd. 6 176.3 352B.26, subd. 3 356.215, subd. 4d 356.215, subd. 8 176.4 352B.30, subd. 4 356.215, subd. 4d 356.215, subd. 8 176.5 352C.031, subd. 4 356.215, subd. 4d 356.215, subd. 8 176.6 352C.033 356.215, subd. 4d 356.215, subd. 8 176.7 353.01, subd. 14 356.215, subd. 4d 356.215, subd. 8 176.8 353.03, subd. 3 356.215, subd. 4, 356.215, subd. 8 176.9 clause (4) 176.10 353.271, subd. 2 356.215, subd. 4d 356.215, subd. 8 176.11 353.29, subd. 3 356.119, subd. 3 356.315, subd. 3 176.12 353.29, subd. 3 356.119, subd. 4 356.315, subd. 4 176.13 353.29, subd. 3 356.119, subd. 1 356.315, subd. 1 176.14 353.29, subd. 3 356.119, subd. 2 356.315, subd. 2 176.15 353.29, subd. 4 356.371, subd. 3 356.46, subd. 3 176.16 353.37, subd. 3a 356.58 356.47 176.17 353.651, subd. 3 356.119, subd. 6 356.315, subd. 6 176.18 353.656, subd. 1 356.119, subd. 6 356.315, subd. 6 176.19 353.665, subd. 8 356.215, subd. 4d 356.215, subd. 8 176.20 353.71, subd. 2 356.215, subd. 4d 356.215, subd. 8 176.21 353A.08, subd. 1 356.215, subd. 4d 356.215, subd. 8 176.22 353A.08, subd. 2 356.215, subd. 4d 356.215, subd. 8 176.23 353A.09, subd. 2 356.215, subd. 4d 356.215, subd. 8 176.24 353A.09, subd. 5 356.215, subd. 4d 356.215, subd. 8 176.25 353E.04, subd. 3 356.119, subd. 5a 356.315, subd. 5a 176.26 353E.06, subd. 1 356.119, subd. 5a 356.315, subd. 5a 176.27 354.05, subd. 7 356.215, subd. 4d 356.215, subd. 8 176.28 354.07, subd. 1 356.215, subd. 4d 356.215, subd. 8 176.29 354.44, subd. 2 356.215, subd. 4d 356.215, subd. 8 176.30 354.44, subd. 5 356.58 356.47 176.31 354.44, subd. 6 356.119, subd. 1 356.315, subd. 1 176.32 354.44, subd. 6 356.119, subd. 2 356.315, subd. 2 176.33 354.44, subd. 6 356.119, subd. 3 356.315, subd. 3 176.34 354.44 356.119 356.315 176.35 354.45, subd. 2 356.215, subd. 4d 356.215, subd. 8 176.36 354.48, subd. 3 356.215, subd. 4d 356.215, subd. 8 177.1 354.55, subd. 11 356.215, subd. 4d 356.215, subd. 8 177.2 354.63, subd. 2 356.215, subd. 4d 356.215, subd. 8 177.3 354A.011, subd. 3 356.215, subd. 4d 356.215, subd. 8 177.4 354A.026 356.215, subd. 4g 356.215, subd. 11 177.5 354A.105 356.215, subd. 4d 356.215, subd. 8 177.6 354A.12, subd. 1a 356.215, subd. 4d 356.215, subd. 8 177.7 354A.31, subd. 1a 356.371, subd. 3 356.46, subd. 3 177.8 354A.31, subd. 3 356.58 356.47 177.9 354A.31, subd. 4 356.119, subd. 1 356.315, subd. 1 177.10 354A.31, subd. 4 356.119, subd. 2 356.315, subd. 2 177.11 354A.31, subd. 4a 356.119, subd. 1 356.315, subd. 1 177.12 354A.31, subd. 4a 356.119, subd. 2 356.315, subd. 2 177.13 354A.34 356.215, subd. 4d 356.215, subd. 8 177.14 422A.01, subd. 6 356.215, subd. 4d 356.215, subd. 8 177.15 422A.06, subd. 5 356.215, subd. 4d 356.215, subd. 8 177.16 422A.08, subd. 5a 356.215, subd. 4d 356.215, subd. 8 177.17 422A.101, subd. 3 356.865 356.43 177.18 422A.15, subd. 2 356.215, subd. 4d 356.215, subd. 8 177.19 422A.15, subd. 3 356.215, subd. 4d 356.215, subd. 8 177.20 422A.16, subd. 2 356.215, subd. 4d 356.215, subd. 8 177.21 422A.17 356.215, subd. 4d 356.215, subd. 8 177.22 422A.23, subd. 12 356.215, subd. 4d 356.215, subd. 8 177.23 423A.02, subd. 1 356.215, subd. 4, 356.215, subd. 8 177.24 clause (4) 177.25 490.121, subd. 20 356.215, subd. 4d 356.215, subd. 8 177.26 490.121, subd. 22 356.119, subd. 7 356.315, subd. 7 177.27 490.124, subd. 1 356.119, subd. 7 356.315, subd. 7 177.28 490.124, subd. 1 356.119, subd. 8 356.315, subd. 8 177.29 490.124, subd. 5 356.215, subd. 4d 356.215, subd. 8 177.30 Sec. 53. [REPEALER.] 177.31 Subdivision 1. [REPEALER OF OBSOLETE 177.32 PROVISIONS.] Minnesota Statutes 2000, sections 356.325; 356.35; 177.33 356.36; 356.37; 356.38; 356.39; 356.45; 356.451; 356.452; 177.34 356.453; 356.454; and 356.455, are repealed. 177.35 Subd. 2. [REPEALER OF PROVISIONS REORGANIZED.] (a) 177.36 Minnesota Statutes 2000, sections 356.19; 356.305; 356.306; 178.1 356.31; 356.371, subdivisions 2 and 3; 356.372; 356.615; 356.71; 178.2 356.80; 356.81; 356.86; 356.865; 356.88; and 356.89, are 178.3 repealed. 178.4 (b) Minnesota Statutes 2001 Supplement, sections 356.371, 178.5 subdivision 1; and 356.866, are repealed. 178.6 Subd. 3. [REPEALER TO RESOLVE REVISOR NOTE.] Laws 1997, 178.7 chapter 233, article 1, section 58, is repealed. 178.8 Sec. 54. [EFFECTIVE DATE.] 178.9 (a) Sections 1 to 53 are effective July 1, 2002. 178.10 (b) Section 51 is the continuation of the public pension 178.11 facility authority previously contained in Minnesota Statutes 178.12 2000, section 356.89, and may not be considered a grant of 178.13 authority to build or bond for a second building. 178.14 ARTICLE 12 178.15 JOINT RETIREMENT PLAN 178.16 BUILDING LEASE AUTHORITY 178.17 Section 1. Minnesota Statutes 2000, section 356.89, 178.18 subdivision 3, is amended to read: 178.19 Subd. 3. [CONTRACTING PROCEDURES.] (a) The commissioner 178.20 may enter into a contract for facilities with a contractor to 178.21 furnish the architectural, engineering, and related services as 178.22 well as the labor, materials, supplies, equipment, and related 178.23 construction services on the basis of a request for 178.24 qualifications and competitive responses received through a 178.25 request for proposals process that must include the items listed 178.26 in paragraphs (b) to (i). 178.27 (b) Before issuing a request for qualifications and a 178.28 request for proposals, the commissioner, with the assistance of 178.29 the boards, shall prepare performance criteria and 178.30 specifications that include: 178.31 (1) a general floor plan or layout indicating the general 178.32 dimensions of the public building and space requirements; 178.33 (2) design criteria for the exterior and site area; 178.34 (3) performance specifications for all building systems and 178.35 components to ensure quality and cost efficiencies; 178.36 (4) conceptual floor plans for systems space; 179.1 (5) preferred types of interior finishes, styles of 179.2 windows, lighting and outlets, doors, and features such as 179.3 built-in counters and telephone wiring; 179.4 (6) mechanical and electrical requirements; 179.5 (7) special interior features required; and 179.6 (8) a completion schedule. 179.7 (c) The commissioner shall first solicit statements of 179.8 qualifications from eligible contractors and select more than 179.9 one qualified contractor based upon experience, technical 179.10 competence, past performance, capability to perform, and other 179.11 appropriate facts. Contractors selected under this process must 179.12 be, employ, or have as a partner, member, coventurer, or 179.13 subcontractor, persons licensed and registered under chapter 326 179.14 to provide the services required to design and complete the 179.15 project. The commissioner does not have to select any of the 179.16 respondents if none reasonably fulfill the criteria set forth in 179.17 this paragraph. 179.18 (d) The contractors selected shall be asked to respond to a 179.19 request for proposals. Responses must include site plans, 179.20 design concept, elevation, statement of material to be used, 179.21 floor layouts, a detailed development budget, and a total cost 179.22 to complete the project. The proposal must indicate that the 179.23 contractor obtained at least two proposals from subcontractors 179.24 for each item of work and must set forth how the subcontractors 179.25 were selected. The commissioner, with the assistance of the 179.26 boards, shall evaluate the proposals based upon design, cost, 179.27 quality, aesthetics, and the best overall value to the state 179.28 pension funds. The commissioner need not select any of the 179.29 proposals submitted and reserves the right to reject any and all 179.30 proposals, and may terminate the process or revise the request 179.31 for proposals and solicit new proposals if the commissioner 179.32 determines that the best interests of the pension funds would be 179.33 better served by doing so. Proposals submitted are nonpublic 179.34 data until the contract is awarded. 179.35 (e) The contractor selected must comply with sections 179.36 574.26 to 574.261. Before executing a final contract, the 180.1 contractor selected shall certify a firm construction price and 180.2 completion date. 180.3 (f) The commissioner may consider building sites in the 180.4 city of St. Paul and surrounding suburbs. 180.5 (g) Any land, building, or facility leased, constructed, or 180.6 acquired and any leasehold interest acquired under this section 180.7 must be held by the state in trust for the three retirement 180.8 systems as tenants in common. Each retirement system fund must 180.9 consider its interest as a fixed asset of its pension fund in 180.10 accordance with governmental accounting standards. 180.11 (h) The commissioner may lease to another governmental 180.12 subdivision, or to a private company under contract with the 180.13 state board of investment or with the board of directors of the 180.14 Minnesota state retirement system, whichever applies, to provide 180.15 deferred compensation services under section 352.96, any portion 180.16 of the funds' building and lands that is not required for their 180.17 direct use upon terms and conditions they deem to be in the best 180.18 interest of the pension funds. Any income accruing from the 180.19 rentals must be separately accounted for and utilized to offset 180.20 ongoing administrative expenses and any excess must be carried 180.21 forward for future administrative expenses. The commissioner 180.22 may also enter into lease agreements for the establishment of 180.23 satellite offices should the boards find them to be necessary in 180.24 order to assure their members reasonable access to their 180.25 services. The commissioner may lease under section 16B.24 any 180.26 portion of the facilities not required for the direct use of the 180.27 boards. 180.28 (i) The boards shall formulate and adopt a written working 180.29 agreement that sets forth the nature of each retirement system's 180.30 ownership interest, the duties and obligations of each system 180.31 toward the construction, operation, and maintenance costs of its 180.32 facilities, and identifies one retirement fund to serve as 180.33 manager for operating and maintenance purposes. The boards may 180.34 contract with independent third parties for maintenance-related 180.35 activities, services, and supplies, and may use the services of 180.36 the department of administration where economically feasible to 181.1 do so. If the boards cannot agree or resolve a dispute about 181.2 operations or maintenance of the facilities, they may request 181.3 the commissioner of administration to appoint a representative 181.4 from the department's real estate management division to serve 181.5 as arbitrator of the dispute with authority to issue a written 181.6 resolution of the dispute. 181.7 Sec. 2. [EFFECTIVE DATE.] 181.8 Section 1 is effective July 1, 2002. 181.9 ARTICLE 13 181.10 VOLUNTEER FIREFIGHTER RELIEF 181.11 ASSOCIATIONS SERVICE PENSION ELIGIBILITY 181.12 Section 1. Minnesota Statutes 2000, section 424A.02, 181.13 subdivision 1, is amended to read: 181.14 Subdivision 1. [AUTHORIZATION.] (a) A relief association, 181.15 when its articles of incorporation or bylaws so provide, may pay 181.16 out of the assets of its special fund a service pension to each 181.17 of its members who: (1) separates from active service with the 181.18 fire department; (2) reaches age 50; (3) completes at least five 181.19 years of active service as an active member of the municipal 181.20 fire department to which the relief association is associated; 181.21 (4) completes at least five years of active membership with the 181.22 relief association before separation from active service; and 181.23 (5) complies with any additional conditions as to age, service, 181.24 and membership that are prescribed by the bylaws of the relief 181.25 association. A service pension computed under this section may 181.26 be prorated monthly for fractional years of service, if the 181.27 bylaws or articles of incorporation of the relief association so 181.28 provide. The service pension may be paid whether or not the 181.29 municipality or nonprofit firefighting corporation to which the 181.30 relief association is associated qualifies for fire state aid 181.31 under chapter 69. 181.32 (b) In the case of a member who has completed at least five 181.33 years of active service as an active member of the fire 181.34 department to which the relief association is associated on the 181.35 date that the relief association is established and 181.36 incorporated, the requirement that the member complete at least 182.1 five years of active membership with the relief association 182.2 before separation from active service may be waived by the board 182.3 of trustees of the relief association if the member completes at 182.4 least five years of inactive membership with the relief 182.5 association before the payment of the service pension. During 182.6 the period of inactive membership, the member is not entitled to 182.7 receive disability benefit coverage, is not entitled to receive 182.8 additional service credit towards computation of a service 182.9 pension, and is considered to have the status of a person 182.10 entitled to a deferred service pension under subdivision 7. 182.11 (c) No municipality or nonprofit firefighting corporation 182.12 may delegate the power to take final action in setting a service 182.13 pension or ancillary benefit amount or level to the board of 182.14 trustees of the relief association or to approve in advance a 182.15 service pension or ancillary benefit amount or level equal to 182.16 the maximum amount or level that this chapter would allow rather 182.17 than a specific dollar amount or level. 182.18 (d) No relief association as defined in section 424A.001, 182.19 subdivision 4, may pay a service pension or disability benefit 182.20 to a former member of the relief association if that person has 182.21 not separated from active service with the fire department to 182.22 which the relief association is directly associated, unless: 182.23 (1) the person is employed subsequent to retirement by the 182.24 municipality or the independent nonprofit firefighting 182.25 corporation, whichever applies, to perform duties within the 182.26 municipal fire department or corporation on a full-time basis; 182.27 (2) the governing body of the municipality or of the 182.28 corporation has filed its determination with the board of 182.29 trustees of the relief association that the person's experience 182.30 with and service to the fire department in that person's 182.31 full-time capacity would be difficult to replace; and 182.32 (3) the bylaws of the relief association were amended to 182.33 provide for the payment of a service pension or disability 182.34 benefit for such full-time employees. 182.35 ARTICLE 14 182.36 ADDITIONAL PROVISIONS 183.1 Section 1. Laws 1997, chapter 202, article 2, section 61, 183.2 as amended by Laws 1999, chapter 250, article 1, section 106, 183.3 and Laws 2001, First Special Session chapter 10, article 2, 183.4 section 85, is amended to read: 183.5 Sec. 61. [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 183.6 Appointing authorities in state government may allow each 183.7 employee to take an unpaid leave of absence for up to 320 hours 183.8 during the period ending June 30, 2003, and an additional 160 183.9 hours during the period beginning July 1, 2003, and ending June 183.10 30, 2005. Each appointing authority approving such a leave 183.11 shall allow the employee to continue accruing vacation and sick 183.12 leave, be eligible for paid holidays and insurance benefits, 183.13 accrue seniority, and accrue service credit in state retirement 183.14 plans permitting service credits for authorized leaves of 183.15 absence as if the employee had actually been employed during the 183.16 time of the leave. If the leave of absence is for one full pay 183.17 period or longer, any holiday pay shall be included in the first 183.18 payroll warrant after return from the leave of absence. The 183.19 appointing authority shall attempt to grant requests for unpaid 183.20 leaves of absence consistent with the need to continue efficient 183.21 operation of the agency. However, each appointing authority 183.22 shall retain discretion to grant or refuse to grant requests for 183.23 leaves of absence and to schedule and cancel leaves, subject to 183.24 applicable provisions of collective bargaining agreements and 183.25 compensation plans. 183.26 Sec. 2. [CLARIFICATION OF APPROPRIATION.] 183.27 Subdivision 1. [PURPOSE.] This section clarifies treatment 183.28 extended to an individual specified in Laws 2001, chapter 169, 183.29 section 5, and is intended to eliminate any potential windfall 183.30 to the public employees retirement association police and fire 183.31 plan fund and the public employees retirement association 183.32 general employees plan fund that may result from that session 183.33 law. 183.34 Subd. 2. [ELIGIBILITY.] The eligible individual is an 183.35 individual specified in Laws 2001, chapter 169, section 5, who 183.36 was an assistant commissioner in the department of public safety 184.1 from April 30, 1994, through May 31, 1998, while on an 184.2 intergovernmental mobility assignment or assignments to the 184.3 state from the city of St. Paul police department. 184.4 Subd. 3. [SALARY INCREMENT.] The salary increment in any 184.5 applicable year or portion of a year is the difference between 184.6 the salary the eligible individual in subdivision 2 received as 184.7 assistant commissioner and the salary upon which pension 184.8 contributions were made for that year or portion of a year. 184.9 Subd. 4. [BENEFIT COMPUTATIONS.] The retirement benefits, 184.10 or disability benefits, if applicable, under the public 184.11 employees retirement association police and fire plan and the 184.12 public employees retirement association general plan are to be 184.13 computed based on plan law applicable to the eligible individual 184.14 under subdivision 2 given the eligible individual's termination 184.15 of service date or dates, or the disability benefit accrual date 184.16 or dates as applicable, except for inclusion of salary 184.17 increments under subdivision 3 for purposes of determining 184.18 average salary under sections 353.29, subdivision 2, and 184.19 353.651, subdivision 2. 184.20 Subd. 5. [ANNUITY RESERVE COMPARISONS.] The executive 184.21 director of the public employees retirement association is to 184.22 determine the increased actuarial reserves, if any, needed to 184.23 support the annuities from the two applicable public employees 184.24 retirement association retirement funds on the effective date of 184.25 retirement or disability from the applicable plans due to this 184.26 section. 184.27 Subd. 6. [COMPARISON TO APPROPRIATION AMOUNTS.] The total 184.28 amount determined under subdivision 5, if zero or positive, is 184.29 to be subtracted from the total value of any appropriation 184.30 received by the public employees retirement association under 184.31 Laws 2001, chapter 169, section 5, on the date computations 184.32 under subdivision 5 occur assuming 8.5 percent interest 184.33 compounded annually from the date the appropriation is received 184.34 until the computation date under subdivision 5. 184.35 Subd. 7. [DISPOSITION OF EXCESS.] The amount determined 184.36 under subdivision 6, net of the value of any foregone employer 185.1 contributions, including 8.5 percent interest compounded 185.2 annually relating to the salary increments under subdivision 3, 185.3 if any, is to be redeposited within 30 days following the date 185.4 of that determination in the state's general fund. 185.5 Subd. 8. [INTERNAL ALLOCATIONS.] Notwithstanding any law 185.6 to the contrary, the executive director is authorized to place 185.7 amounts received, if any, due to Laws 2001, chapter 169, section 185.8 5, in the public employees retirement association general plan 185.9 fund or the public employees retirement association police and 185.10 fire plan fund, or to allocate amounts between these funds as 185.11 deemed appropriate. Following the determinations required by 185.12 this section, the executive director may again reallocate 185.13 amounts between the two funds to reflect a reasonable allocation 185.14 of the remaining net appropriation amount. 185.15 Subd. 9. [CONTRIBUTION RATIFICATION.] Contributions and 185.16 interest paid to the association relating to the salary 185.17 increments referred to in subdivision 3 are authorized for 185.18 deposit in the public employees retirement association police 185.19 and fire plan fund and are ratified. 185.20 Sec. 3. [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; RECISION 185.21 OF ANNUITY APPLICATION IN FAVOR OF DISABILITY BENEFIT 185.22 APPLICATION.] 185.23 (a) Notwithstanding Minnesota Statutes, section 353.29, 185.24 subdivision 7, or any other law to the contrary, an eligible 185.25 person described in paragraph (b) may revoke an application for 185.26 a retirement annuity from the public employees police and fire 185.27 plan and may file an application for a disability benefit from 185.28 the public employees police and fire plan, effective the first 185.29 day of the month following the approval of the disability 185.30 application under Minnesota Statutes, section 353.33, 185.31 subdivisions 2 and 4. 185.32 (b) An eligible person is a person who: 185.33 (1) was born on August 6, 1949; 185.34 (2) was employed for 27 years with the city of West St. 185.35 Paul fire department; 185.36 (3) terminated employment with the city of West St. Paul on 186.1 January 31, 2001; 186.2 (4) filed six "first report of injury" documents for back 186.3 injuries with the city of West St. Paul between June 1984 and 186.4 December 2000; 186.5 (5) requested recision of his public employees police and 186.6 fire plan retirement annuity on February 16, 2001, and tendered 186.7 a personal check repaying the initial annuity amount; and 186.8 (6) unsuccessfully appealed to the public employees 186.9 retirement association board of trustees on May 10, 2001, for 186.10 authority to rescind a retirement annuity application and to 186.11 apply for a disability benefit. 186.12 Sec. 4. [MSRS-GENERAL; ACCELERATED OPTIONAL ANNUITY FORM.] 186.13 (a) An eligible person described in paragraph (b) is 186.14 entitled to elect from the general state employees retirement 186.15 plan of the Minnesota state retirement system the actuarial 186.16 equivalent accelerated optional annuity form specified in 186.17 paragraph (c). 186.18 (b) An eligible person is a person who: 186.19 (1) was born on October 13, 1943; 186.20 (2) was employed as a teacher by the Benson public schools 186.21 from August 1967 to June 1969; 186.22 (3) was employed as a teacher by the Richfield public 186.23 schools from January 1, 1971, to June 1973; and 186.24 (4) was initially employed by the office of the legislative 186.25 auditor on October 14, 1985, and remains an employee of the 186.26 office of the legislative auditor. 186.27 (c) The board of directors of the Minnesota state 186.28 retirement system shall establish an accelerated optional 186.29 retirement annuity for the eligible person. The accelerated 186.30 optional retirement annuity form must replicate to the extent 186.31 practicable the accelerated optional retirement annuity form 186.32 that would apply to the eligible person by the teachers 186.33 retirement association. The optional annuity form must be the 186.34 actuarial equivalent of the eligible person's single life 186.35 annuity. The accelerated optional retirement annuity form must 186.36 be established prior to October 1, 2002. The cost of the 187.1 actuarial calculations of the consulting actuary retained by the 187.2 legislative commission on pensions and retirement is payable by 187.3 the general state employees retirement plan and the plan must be 187.4 reimbursed by the eligible person for those costs upon 187.5 notification by the executive director of the Minnesota state 187.6 retirement system. 187.7 Sec. 5. [PRIOR OUT-OF-STATE TEACHING SERVICE CREDIT 187.8 PURCHASE BY PUBLIC EMPLOYEES RETIREMENT ASSOCIATION MEMBER.] 187.9 Subdivision 1. [ELIGIBILITY.] An eligible member is a 187.10 current active member of the public employees retirement 187.11 association general plan who became a member of that plan on 187.12 August 1, 1973, and who was born on December 16, 1944. An 187.13 eligible member may purchase allowable service credit in the 187.14 public employees retirement association general plan as 187.15 specified in this section. 187.16 Subd. 2. [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) An 187.17 eligible member specified in subdivision 1 is eligible to 187.18 purchase up to four years of allowable service credit from the 187.19 general employees retirement plan of the public employees 187.20 retirement association for out-of-state teaching service by 187.21 making payment under Minnesota Statutes, section 356.55 or 187.22 356.551, whichever is applicable, provided that the out-of-state 187.23 teaching service was performed for an educational institution 187.24 that was established and operated by another governmental 187.25 jurisdiction and that the eligible member is not entitled to 187.26 receive a current or deferred age and service retirement annuity 187.27 or disability benefit and has not purchased service credit from 187.28 another defined benefit public employee pension plan for that 187.29 out-of-state teaching service. 187.30 (b) For purposes of paragraph (a), "another governmental 187.31 jurisdiction" means another state of the United States or a 187.32 governmental subdivision of another state of the United States. 187.33 Subd. 3. [APPLICATION AND DOCUMENTATION.] An eligible 187.34 member under subdivision 1 who desires to purchase service 187.35 credit under this section must apply with the executive director 187.36 of the public employees retirement association to make the 188.1 purchase. The application must include all necessary 188.2 documentation of the eligible member's qualifications to make 188.3 the purchase, signed written permission to allow the executive 188.4 director to request and receive necessary verification of 188.5 applicable facts and eligibility requirements, and any other 188.6 relevant information that the executive director may require. 188.7 Payment must be made before the eligible member's effective date 188.8 of retirement or before January 1, 2003, whichever is earlier. 188.9 Subd. 4. [SERVICE CREDIT GRANT.] Allowable service credit 188.10 for the purchase period must be granted by the public employees 188.11 retirement association to the purchasing eligible member on 188.12 receipt of the required purchase payment amount. 188.13 Sec. 6. [LUMP SUM PRE-1973 RETIREE POSTRETIREMENT 188.14 ADJUSTMENT IN CERTAIN INSTANCES.] 188.15 (a) Notwithstanding any provision of Minnesota Statutes 188.16 2001 Supplement, section 356.866, or Minnesota Statutes, section 188.17 356.431, to the contrary, an eligible person described in 188.18 paragraph (b) may elect to receive the pre-1973 postretirement 188.19 adjustment in a lump sum payment rather than as an annuity 188.20 increase. The election must be made before September 1, 2002, 188.21 and is irrevocable by the annuitant or benefit recipient. For 188.22 the December 2002 lump sum payment, the amount must be the total 188.23 of the monthly amounts remaining unpaid to the annuitant or the 188.24 benefit recipient after the election. 188.25 (b) An eligible person is a person who: 188.26 (1) was born on December 5, 1908; 188.27 (2) is the survivor of a deceased annuitant of the general 188.28 employees retirement plan of the public employees retirement 188.29 association who was born on March 22, 1904, who retired on May 188.30 1, 1969, and who died on April 9, 1980; and 188.31 (3) waived an annuity from the general employees retirement 188.32 plan of the public employees retirement association in favor of 188.33 a surviving spouse benefit on May 1, 1980. 188.34 Sec. 7. [PERA AND MSRS; SERVICE CREDIT PURCHASE.] 188.35 Subdivision 1. [ELIGIBILITY.] An eligible person is a 188.36 person who: 189.1 (1) served as a legislator representing Hubbard county 189.2 during the 1961-1963 legislative session; 189.3 (2) was employed by the department of natural resources or 189.4 its predecessor at Itasca state park from 1964 to 1980; and 189.5 (3) retired from the general state employees retirement 189.6 plan of the Minnesota state retirement system on July 1, 1980, 189.7 with ten years, six months, and nine days of service credit. 189.8 Subd. 2. [PERA SERVICE CREDIT PURCHASE.] Upon the receipt 189.9 of an amount equal to the member contribution that the eligible 189.10 person would have otherwise made in 1961 and 1962, plus annual 189.11 compound interest on the total equivalent member contribution 189.12 amount at the rate of 8.5 percent from January 1, 1962, to the 189.13 date of payment, an eligible person is entitled to receive two 189.14 years of service credit from the general employees retirement 189.15 plan of the public employees retirement association for prior 189.16 uncredited service as a member of the legislature. 189.17 Subd. 3. [MSRS SERVICE CREDIT PURCHASE.] Upon the receipt 189.18 of an amount equal to the balance of the employee contribution 189.19 that the eligible person would have otherwise made during the 189.20 period 1964 to 1980 if the eligible person was employed on a 189.21 full-time basis, plus annual compound interest on the total 189.22 equivalent employee contribution amount at the rate of 8.5 189.23 percent from January 1, 1972, to the date of payment, an 189.24 eligible person is entitled to receive 5.48 years of service 189.25 credit from the general state employees retirement plan of the 189.26 Minnesota state retirement system for uncredited periods from 189.27 1964 to 1980 between seasonal Itasca state park employment. 189.28 Subd. 4. [COMBINED SERVICE ANNUITY 189.29 APPLICATION.] Notwithstanding the time that has elapsed since 189.30 initial retirement, an eligible person may apply for a 189.31 retirement annuity from the general employees retirement plan of 189.32 the public employees retirement association and may apply for a 189.33 recomputed retirement annuity from the general state employees 189.34 retirement plan of the Minnesota state retirement system under 189.35 Minnesota Statutes, section 356.30. 189.36 Subd. 5. [PAYMENT.] (a) The house of representatives shall 190.1 pay the executive director of the public employees retirement 190.2 association an amount equal to the required reserves needed to 190.3 support the retirement annuity of an eligible person under 190.4 subdivisions 2 and 4, reduced by the amount of the equivalent 190.5 member contribution, plus required interest, under subdivision 190.6 2. Payment must be made within ten days of notification by the 190.7 executive director that the equivalent member contribution 190.8 amount, plus required interest, has been received and of the 190.9 amount due. The payment and the equivalent member contribution 190.10 amount, plus interest, must be deposited in the public employees 190.11 retirement fund and transferred to the Minnesota postretirement 190.12 investment fund. 190.13 (b) The department of natural resources shall pay the 190.14 executive director of the Minnesota state retirement system an 190.15 amount equal to the required reserves needed to support the 190.16 retirement annuity of an eligible person under subdivisions 3 190.17 and 4, reduced by the amount of the equivalent employee 190.18 contribution, plus required interest, under subdivision 3. 190.19 Payment must be made within ten days of notification by the 190.20 executive director that the equivalent employee contribution 190.21 amount, plus required interest, has been received and of the 190.22 amount due. The payment and the equivalent member contribution 190.23 amount, plus interest, must be deposited in the state employees 190.24 retirement fund and transferred to the Minnesota postretirement 190.25 investment fund. 190.26 Subd. 6. [RETIREMENT ANNUITY ACCRUAL.] The retirement 190.27 annuities payable under this section accrue on the first day of 190.28 the month next following final enactment. 190.29 Sec. 8. [PRIOR SERVICE CREDIT PURCHASE REFUND.] 190.30 (a) An eligible person may receive a refund of any prior 190.31 military service credit purchase payment amount paid prior to 190.32 the applicable effective date of the federal Economic Growth and 190.33 Tax Reconciliation Act of 2001 if the eligible person transfers 190.34 pretax funds to the teachers retirement association under 190.35 Minnesota Statutes, section 356.55 or 356.551, whichever 190.36 applies, sufficient to purchase the identical period of prior 191.1 military service credit. 191.2 (b) An eligible person is a person who: 191.3 (1) was born on February 6, 1947; 191.4 (2) served in the United States armed forces from March 19, 191.5 1969, to October 22, 1970; 191.6 (3) had credit for 27 years of service from the teachers 191.7 retirement association as of June 30, 2000; and 191.8 (4) purchased 1.58 years of prior military service credit 191.9 from the teachers retirement association with the payment of 191.10 $23,958.18 on or before April 30, 2001. 191.11 (c) This section is contingent on the teachers retirement 191.12 association applying for and receiving a favorable ruling from 191.13 the federal Internal Revenue Service regarding the payment of 191.14 this refund. 191.15 Sec. 9. [PERA-P&F; EXCEPTION TO DISABILITY APPLICATION 191.16 DEADLINE.] 191.17 (a) Notwithstanding any provision of Minnesota Statutes, 191.18 section 353.33, subdivision 2, to the contrary, an eligible 191.19 person described in paragraph (b) is entitled to file a 191.20 disability benefit application with the general employees 191.21 retirement plan of the public employees retirement association 191.22 or with the public employees police and fire retirement plan 191.23 and, if otherwise qualified, to receive a disability benefit 191.24 from one or both of those retirement plans. 191.25 (b) An eligible person is a person who: 191.26 (1) was born on February 8, 1970; 191.27 (2) was an employee of the city of Bagley from May 1, 1991, 191.28 to May 31, 1992, and was covered by the coordinated program of 191.29 the general employees retirement plan of the public employees 191.30 retirement system; 191.31 (3) was employed as a police officer by the police 191.32 department of the city of Blooming Prairie from January 9, 1995, 191.33 to May 31, 1997, and was covered by the public employees police 191.34 and fire retirement plan; 191.35 (4) was struck by a motor vehicle while assisting with 191.36 traffic management at an accident site on interstate highway 35 192.1 in January 1997 resulting in various broken bones and other 192.2 injuries, necessitating at least eight surgeries; 192.3 (5) was placed on medical leave by the city of Blooming 192.4 Prairie on September 1, 1997, until January 1, 1998, upon 192.5 termination of employment; and 192.6 (6) failed to timely apply for disability benefits due to 192.7 the injuries which were diagnosed to have caused significant 192.8 depression and posttraumatic stress disorder. 192.9 (c) This section expires one year after the date of final 192.10 enactment. 192.11 Sec. 10. [EFFECTIVE DATE.] 192.12 Sections 1 to 9 are effective on the day following final 192.13 enactment. 192.14 ARTICLE 15 192.15 COORDINATED PROGRAM OF LEGISLATORS RETIREMENT PLAN; 192.16 SOCIAL SECURITY REFERENDUM 192.17 Section 1. [3A.15] [COORDINATED PROGRAM OF LEGISLATORS 192.18 RETIREMENT PLAN.] 192.19 The coordinated program of the legislators retirement plan 192.20 is created. The provisions of sections 3A.01 to 3A.13 apply to 192.21 the coordinated program. 192.22 [EFFECTIVE DATE.] This section is effective the day 192.23 following final enactment. 192.24 Sec. 2. [355.629] [SECOND SOCIAL SECURITY REFERENDUM.] 192.25 Subdivision 1. [ELECTION OF SOCIAL SECURITY COVERAGE.] Any 192.26 member of the legislators retirement plan established under 192.27 chapter 3A who did not elect coverage under an agreement under 192.28 section 218(d) of the Social Security Act as provided for in 192.29 section 355.624 is entitled to elect future social security 192.30 coverage and retroactive coverage for the period consistent with 192.31 applicable federal law, in a second social security referendum. 192.32 Any member who so elects shall become a member of the 192.33 coordinated program of the legislators retirement plan under 192.34 section 3A.15. The governor shall set a date for the referendum 192.35 and shall undertake any duties to amend the state's Social 192.36 Security Act, section 218 agreement, with the secretary of 193.1 health and human services. 193.2 Subd. 2. [PAYMENT OF RETROACTIVE SOCIAL SECURITY 193.3 TAXES.] For any service by a legislator who is in office on the 193.4 date of the agreement or modification of the agreement with the 193.5 secretary of health and human services, the executive director 193.6 of the Minnesota state retirement system shall cause to be paid 193.7 an amount for each legislator, including an amount for 193.8 retroactive coverage, equal to the taxes which would have been 193.9 imposed on the legislator and state of Minnesota by the Federal 193.10 Insurance Contributions Act had the service been covered at the 193.11 time performed. This payment shall be computed from the date of 193.12 retroactive coverage to the date that deductions are first taken 193.13 from the wages of each legislator for social security coverage. 193.14 Before making a payment on behalf of a legislator, the executive 193.15 director must receive from the legislator the funds necessary to 193.16 make the payment. Nothing in this section shall require a 193.17 legislator to elect retroactive social security coverage. 193.18 Subd. 3. [DEDUCTION FROM WAGES.] A legislator who elects 193.19 social security coverage under this section shall have a 193.20 deduction taken from wages in an amount equal to the employer 193.21 and employee contributions required by either subdivision 1 or 193.22 subdivision 2. 193.23 [EFFECTIVE DATE.] This section is effective the day 193.24 following final enactment. 193.25 ARTICLE 16 193.26 MINNEAPOLIS POLICE OPTIONAL ANNUITIES 193.27 Section 1. Minnesota Statutes 2000, section 423B.09, 193.28 subdivision 6, is amended to read: 193.29 Subd. 6. [OPTIONAL ANNUITIES.] A member who is retired or 193.30 disabled on the effective date of Laws 1997, chapter 233, 193.31 article 4, section 6, may elect an optional retirement annuity 193.32 within 60 days of the effective date of Laws 1997, chapter 233, 193.33 article 4, section 6, instead of the normal retirement annuity. 193.34 A member who retires or becomes disabled after the effective 193.35 date of Laws 1997, chapter 233, article 4, section 6, may elect 193.36 an optional retirement annuity prior to the receipt of any 194.1 benefits. The optional retirement annuity may be a 50 percent, 194.2 a 75 percent, or a 100 percent joint and survivor annuity 194.3 without reinstatement in the event of the designated beneficiary 194.4 predeceasing the member or a 50 percent, a 75 percent, or a 100 194.5 percent joint and survivor annuity with reinstatement in the 194.6 event of the designated beneficiary predeceasing the member. 194.7 Optional retirement annuity forms must be actuarially equivalent 194.8 to the service pension and automatic survivor coverage otherwise 194.9 payable to the retiring member and the member's 194.10 beneficiaries. A member may only designate the member's spouse 194.11 as the recipient of a joint and survivor annuity and no benefit 194.12 or annuity may be paid to a person who does not meet the 194.13 definition of a surviving spouse member under section 423B.01, 194.14 subdivision 17. Once selected, the optional annuity is 194.15 irrevocable. 194.16 Sec. 2. [EFFECTIVE DATE.] 194.17 Section 1 is effective the day following final enactment 194.18 and applies to all joint annuity options selected by members of 194.19 the Minneapolis police relief association.