HF 3581

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; Public Employees Retirement Association; creating a
postsentencing officers and emergency dispatchers retirement plan; appropriating
money; amending Minnesota Statutes 2004, sections 352.01, subdivision 2b;
355.01, by adding subdivisions; 355.02, subdivision 3; 356.20, subdivision 2;
356.215, subdivision 11; 356.30, subdivision 3; 356.302, subdivision 7; 356.303,
subdivision 4; 356.315, by adding a subdivision; 356.465, subdivision 3;
Minnesota Statutes 2005 Supplement, sections 353.01, subdivision 2b; 356.215,
subdivision 8; proposing coding for new law as Minnesota Statutes, chapter
353G.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

POSTSENTENCING OFFICERS AND EMERGENCY DISPATCHERS
RETIREMENT PLAN CREATION

Section 1.

new text begin [353G.01] POSTSENTENCING OFFICERS AND EMERGENCY
DISPATCHERS RETIREMENT PLAN; DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin In general. new text end

new text begin For purposes of this chapter, unless the language or the
context clearly indicates that a different meaning is intended, the following terms have
the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Accumulated contributions. new text end

new text begin "Accumulated contributions" means the total
of member contributions made by salary deductions or by assessments or payments made
in lieu of salary deductions, if authorized, which are credited by the retirement plan and
entered into the member's individual record.
new text end

new text begin Subd. 3. new text end

new text begin Actuarial equivalent. new text end

new text begin "Actuarial equivalent" means the condition of one
annuity or benefit having an equal actuarial present value as another annuity or benefit,
determined as of a given date with each actuarial present value based on the appropriate
mortality table adopted by the board of trustees based on the experience of that retirement
fund association as recommended by the actuary retained by the Legislative Commission
on Pensions and Retirement and using the applicable preretirement or postretirement
interest rate assumption specified in section 356.215, subdivision 8.
new text end

new text begin Subd. 4. new text end

new text begin Allowable service. new text end

new text begin "Allowable service" means any service rendered by a
postsentencing officer or an emergency dispatcher during a period in which the officer
or dispatcher receives salary from a public employer from which member contribution
salary deductions are made to and credited by the postsentencing officers and emergency
dispatchers retirement plan.
new text end

new text begin Subd. 5. new text end

new text begin Annuity. new text end

new text begin "Annuity" means the payments made by the postsentencing
officers and emergency dispatchers retirement plan in the form of a retirement annuity or
an optional annuity.
new text end

new text begin Subd. 6. new text end

new text begin Approved actuary. new text end

new text begin "Approved actuary" means (1) any actuary who is
either a fellow of the Society of Actuaries or who has at least 15 years of service to major
public employee retirement funds, or (2) any firm which retains such an actuary on its staff.
new text end

new text begin Subd. 7. new text end

new text begin Average salary. new text end

new text begin "Average salary" means the average of the highest five
successive years of salary in which the postsentencing officer or emergency dispatcher has
made contributions to the retirement fund by payroll deduction. If the officer or dispatcher
has less than five years of allowable service, the term means the average of salary for the
entire period of allowable service.
new text end

new text begin Subd. 8. new text end

new text begin Benefit. new text end

new text begin "Benefit" means the allowance paid or payable by the
postsentencing officers and emergency dispatchers retirement plan to a surviving spouse,
designated beneficiary, surviving child, or estate, or in periodic payments to a member or
former member of the retirement plan who is permanently and totally disabled.
new text end

new text begin Subd. 9. new text end

new text begin Board. new text end

new text begin "Board" means the Board of Trustees of the Public Employees
Retirement Association.
new text end

new text begin Subd. 10. new text end

new text begin Dependent child. new text end

new text begin "Dependent child" means any biological or adopted
child of a deceased postsentencing officer or emergency dispatcher who has not reached
the age of 20 and is dependent on the officer or dispatcher for more than one-half of the
child's support at the time of the death of the officer or dispatcher. Dependent child also
means a child of the officer or dispatcher conceived during the lifetime of the officer or
dispatcher and born after the death of the officer or the dispatcher.
new text end

new text begin Subd. 11. new text end

new text begin Designated beneficiary. new text end

new text begin "Designated beneficiary" means the person who
is designated by an active or retired postsentencing officer or emergency dispatcher to
receive the benefits to which a beneficiary is entitled to receive under this chapter. A
beneficiary designation is valid only if it is made on the applicable form prescribed by
the director, is properly completed and signed, and is received by the Public Employees
Retirement Association or is postmarked on or before the date of the death of the officer or
dispatcher. If no beneficiary is designated or if the designated beneficiary predeceases the
officer or dispatcher, the term means the estate of the deceased officer or dispatcher.
new text end

new text begin Subd. 12. new text end

new text begin Director or executive director. new text end

new text begin "Director" or "executive director" means
the executive director of the Public Employees Retirement Association.
new text end

new text begin Subd. 13. new text end

new text begin Disability or total and permanent disability. new text end

new text begin "Disability" or "total
and permanent disability" means the inability of a postsentencing officer or emergency
dispatcher to engage in any substantial gainful employment activity by reason of a
medically determinable physical or mental impairment which is reasonably expected to be
of a long-continued and indefinite duration, which in no event may be less than one year.
new text end

new text begin Subd. 14. new text end

new text begin Dispatcher. new text end

new text begin "Dispatcher" means an emergency dispatcher.
new text end

new text begin Subd. 15. new text end

new text begin Emergency dispatcher. new text end

new text begin "Emergency dispatcher" means a governmental
employee who is employed at a primary public safety answering point, whose primary
employment responsibility is receiving emergency "911" telephone communications from
the public which require subsequent contact with and response by police, fire, or medical
resources, and who is certified by the governmental employer as regularly and consistently
spending at least a majority of the person's employment time in those duties.
new text end

new text begin Subd. 16. new text end

new text begin Member. new text end

new text begin "Member" means a postsentencing officer or an emergency
dispatcher who makes regular member contributions to the retirement plan in that capacity.
new text end

new text begin Subd. 17. new text end

new text begin Normal retirement age. new text end

new text begin "Normal retirement age" means age 55.
new text end

new text begin Subd. 18. new text end

new text begin Normal retirement annuity. new text end

new text begin "Normal retirement annuity" means a
retirement annuity computed under section 353G.07, subdivision 2, that is paid or is
payable to a member upon meeting the age and service requirements specified in section
353G.07, subdivision 1.
new text end

new text begin Subd. 19. new text end

new text begin Officer. new text end

new text begin "Officer" means a postsentencing officer.
new text end

new text begin Subd. 20. new text end

new text begin Optional annuity form. new text end

new text begin "Optional annuity form" means an alternate
means for the receipt of an annuity established by the board under section 353G.07,
subdivision 5.
new text end

new text begin Subd. 21. new text end

new text begin Postsentencing officer. new text end

new text begin "Postsentencing officer" means a governmental
employee who is responsible for the control, supervision, and care of convicted offenders
on probation in lieu of imprisonment or of offenders conditionally released on parole
after imprisonment and who is certified by the governmental employer as regularly and
consistently spending at least a majority of the person's employment time in the direct
control, supervision, and care of convicted offenders who represent a risk of violence or
physical harm to the employee.
new text end

new text begin Subd. 22. new text end

new text begin Primary public safety answering point. new text end

new text begin "Primary public safety
answering point" is a communications facility that is operated by a governmental
entity and that is operated on a 24-hour basis to be the initial emergency "911"
telephone communications from persons in a 911 service area and that is authorized, as
appropriate, to directly dispatch public safety services or to extend, transfer, or relay the
communications to the appropriate public safety agency.
new text end

new text begin Subd. 23. new text end

new text begin Reduced retirement annuity. new text end

new text begin "Reduced retirement annuity" means an
annuity paid between age 50 and age 55 under section 353G.07, subdivision 3.
new text end

new text begin Subd. 24. new text end

new text begin Retirement. new text end

new text begin "Retirement" means the time after the date of cessation
of active service by a postsentencing officer or emergency dispatcher who is thereafter
entitled to an accrued retirement annuity which is payable under an application filed by the
former officer or dispatcher. The provisions of law in effect on the date that the officer
or dispatcher ceases rendering active service in that capacity thereafter determines the
rights of the person with respect to the plan.
new text end

new text begin Subd. 25. new text end

new text begin Retirement annuity. new text end

new text begin "Retirement annuity" means an annuity computed
under section 353G.07 and paid by the director to the retired postsentencing officer or
emergency dispatcher or to the specified remainder recipient under an optional annuity
form.
new text end

new text begin Subd. 26. new text end

new text begin Salary or covered salary. new text end

new text begin (a) "Salary" or "covered salary" means:
new text end

new text begin (1) the wages paid to a postsentencing officer or an emergency dispatcher before
deductions for deferred compensation, supplemental retirement plans, or other voluntary
salary reductions;
new text end

new text begin (2) other periodic compensation, paid to an officer or dispatcher before deductions
for deferred compensation, supplemental retirement plans, or other voluntary salary
reductions; and
new text end

new text begin (3) during a period of receipt of worker's compensation while on a leave of absence,
the differential between the salary that the officer or dispatcher would normally receive
during the leave and the salary received, if any, on which the officer or dispatcher makes a
member contribution equivalent amount.
new text end

new text begin (b) "Salary" or "covered salary" does not mean:
new text end

new text begin (1) lump sum sick leave payments;
new text end

new text begin (2) severance payments;
new text end

new text begin (3) lump sum annual leave payments;
new text end

new text begin (4) overtime payments made at the time of separation from state service;
new text end

new text begin (5) payments in lieu of employer-paid group insurance coverage, including the
difference between single rates and family rates for an officer or dispatcher with single
coverage;
new text end

new text begin (6) employer contributions to a deferred compensation or tax-sheltered annuity
program; and
new text end

new text begin (7) amounts contributed under a benevolent vacation or sick leave donation program.
new text end

new text begin Subd. 27. new text end

new text begin Spouse. new text end

new text begin "Spouse" means the person who was legally married to the
postsentencing officer or the emergency dispatcher immediately prior to the death of
the officer or dispatcher.
new text end

Sec. 2.

new text begin [353G.02] RETIREMENT PLAN AND FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The postsentencing officers and emergency
dispatchers retirement plan is established.
new text end

new text begin Subd. 2. new text end

new text begin Fund. new text end

new text begin (a) A postsentencing officers and emergency dispatchers retirement
fund is established within the state treasury.
new text end

new text begin (b) Member contributions under section 353G.05, subdivision 1, employer
contributions under section 353G.05, subdivision 2, and revenue derived from the
investment of fund assets must be deposited in the postsentencing officers and emergency
dispatchers retirement fund.
new text end

new text begin (c) Refunds of member contributions under section 353G.05, retirement annuities
under section 353G.07, disability benefits under section 353G.09, survivorship benefits
under section 353G.10, and necessary and reasonable expenses of administering the
plan and fund are payable from the postsentencing officers and emergency dispatchers
retirement fund.
new text end

new text begin Subd. 3. new text end

new text begin Audit. new text end

new text begin The legislative auditor shall audit the plan and fund.
new text end

Sec. 3.

new text begin [353G.03] ADMINISTRATION.
new text end

new text begin The postsentencing officers and emergency dispatchers retirement plan and fund
must be administered by the Board of Trustees and the executive director of the Public
Employees Retirement Association. Fiduciary activities regarding the plan and the fund
must be undertaken in a manner consistent with chapter 356A.
new text end

Sec. 4.

new text begin [353G.04] INVESTMENTS; PARTICIPATION IN POSTRETIREMENT
INVESTMENT FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Investments. new text end

new text begin The State Board of Investment shall invest and
reinvest the postsentencing officers and emergency dispatchers retirement fund under
chapters 11A and 356A.
new text end

new text begin Subd. 2. new text end

new text begin Treasurer. new text end

new text begin The commissioner of finance is the ex officio treasurer of the
postsentencing officers and emergency dispatchers retirement fund. The treasurer shall
provide the executive director of the Public Employees Retirement Association with a
detailed statement of revenues and disbursements.
new text end

new text begin Subd. 3. new text end

new text begin Postretirement investment fund. new text end

new text begin (a) The postsentencing officers and
emergency dispatchers retirement plan must participate in the Minnesota postretirement
investment fund. Assets representing the retirement annuities payable by the plan must
be deposited in the investment fund and necessary amounts must be withdrawn to pay
annuity amounts due and payable. The amounts necessary are annually appropriated
for this purpose.
new text end

new text begin (b) For former plan members beginning the receipt of annuities, the required
reserves must be determined in accordance with the appropriate mortality table based on
the experience of the plan as recommended by the actuary retained by the Legislative
Commission on Pensions and Retirement and approved by the commission under section
356.215 and using the applicable postretirement interest rate assumption specified in
section 356.215, subdivision 8. Assets representing the required reserves for those
annuities must be transferred to the Minnesota postretirement investment fund as of the
last business day of the month in which the retirement annuity begins as specified in
section 11A.18.
new text end

Sec. 5.

new text begin [353G.05] CONTRIBUTION RATES.
new text end

new text begin Subdivision 1. new text end

new text begin Member contribution; salary deduction. new text end

new text begin (a) A member of the
postsentencing officers and emergency dispatchers retirement plan shall pay an amount
equal to ... percent of the salary of the member, which constitutes the member contribution
to the fund.
new text end

new text begin (b) Member contribution amounts must be deducted from the salary payable to the
member each pay period by the department head. The employing agency shall have
the deduction paid to the fund treasurer for deposit into the postsentencing officers and
emergency dispatchers retirement fund and shall make a detailed report of deductions made
each pay period to the executive director of the Public Employees Retirement Association.
new text end

new text begin Subd. 2. new text end

new text begin Employer contribution. new text end

new text begin The employer of a member of the postsentencing
officers and emergency dispatchers retirement plan shall pay an amount equal to ... percent
of the salary of the member, which constitutes the employer contribution to the fund.
new text end

new text begin Subd. 3. new text end

new text begin Omitted deductions. new text end

new text begin (a) If the employer fails to take deductions which are
past due for a period of less than 61 days, those deductions must be taken from a later
member salary payment.
new text end

new text begin (b) If the employer fails to take deductions which are past due for a period longer
than 60 days or if the plan member is no longer employed in covered employment, the
employer must pay the amount of the omitted deduction, the amount of any unpaid
employer contribution, plus an amount equal to 8.5 percent of the total amount due if the
failure to make a payment is of less than one year in duration and plus annual compound
interest at the rate of 8.5 percent per annum if the failure to make a payment is a period
of 12 months or greater.
new text end

Sec. 6.

new text begin [353G.06] PLAN MEMBERSHIP; SOCIAL SECURITY COVERAGE.
new text end

new text begin (a) Except as provided in paragraph (b), a postsentencing officer or an emergency
dispatcher, by accepting employment in that capacity or by continuing employment in
that capacity, accepts coverage by the postsentencing officers and emergency dispatchers
retirement plan in lieu of any other Minnesota public pension plan coverage.
new text end

new text begin (b) A person who was employed in a postsentencing officer position or in an
emergency dispatcher position on July 1, 2005, and who is at least 45 years of age on that
date, may make a onetime election to retain the person's existing retirement coverage
and to decline a transfer to coverage by the postsentencing officers and emergency
dispatchers retirement plan. The election must be made in writing on a form prescribed by
the executive director and is irrevocable.
new text end

new text begin (c) Members of the postsentencing officers and emergency dispatchers retirement
plan must be covered by the federal old age, survivors, disability and health insurance
program under chapter 355 by virtue of employment covered by the plan.
new text end

Sec. 7.

new text begin [353G.07] RETIREMENT ANNUITY.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin (a) After terminating employment, a former
postsentencing officer or a former emergency dispatcher who has attained the age of 55
years and who has credit for three years of allowable service under section 353G.01,
subdivision 4, is entitled, upon application, to a normal retirement annuity.
new text end

new text begin (b) In lieu of a normal retirement annuity, a retiring former postsentencing officer or
emergency dispatcher may elect to receive an optional annuity form under subdivision 5.
new text end

new text begin Subd. 2. new text end

new text begin Annuity amount. new text end

new text begin The retirement annuity amount is the average salary
under section 353G.01, subdivision 4, of the retiring postsentencing officer or the retiring
emergency dispatcher multiplied by the percentage amount specified in section 356.315,
subdivision 5b, for each year of allowable service of the person and the appropriate
fractional amount for the number of months of allowable service less than a full year.
new text end

new text begin Subd. 3. new text end

new text begin Early retirement. new text end

new text begin A former postsentencing officer or a former emergency
dispatcher who has attained the age of at least 50 years and has credit for not less than
three years of allowable service credit under section 353G.01, subdivision 4, is entitled,
upon application, to a reduced retirement annuity. The reduced retirement annuity is an
amount equal to the annuity calculated under subdivision 2 reduced so that the subsequent
reduced annuity is the actuarial equivalent at that age of the annuity that would be payable
if the person deferred receipt of the annuity from the day that the annuity begins to
accrue until age 55.
new text end

new text begin Subd. 4. new text end

new text begin Accrual and duration. new text end

new text begin The retirement annuity under this section
accrues on the first day of the first calendar month after the date on which the former
postsentencing officer or the former emergency dispatcher terminates covered service.
The annuity must be paid in equal monthly installments each year and does not accrue
beyond the end of the month in which entitlement to the annuity ends or is terminated. If
the annuitant dies prior to negotiating the check for the month in which the annuitant's
death occurs, payment must be made to the person's surviving spouse, or if none, to the
designated beneficiary of the person, or if none, to the estate of the person. The retirement
annuity is payable for the life of the recipient or in accord with the terms of any optional
annuity form that was selected by the retiring plan member.
new text end

new text begin Subd. 5. new text end

new text begin Optional annuity forms. new text end

new text begin (a) The board of trustees shall establish optional
annuity forms, including a joint and survivor annuity. Except as provided in paragraph
(b), the optional annuity forms must be the actuarial equivalent to the normal retirement
annuity, the early reduced retirement annuity, or the disability benefit, whichever
applies. In establishing the optional annuity forms, the board shall obtain the written
recommendation of the consulting actuary retained by the Legislative Commission on
Pensions and Retirement and must retain those recommendations as part of the permanent
records of the board. A retiring plan member may select an optional annuity form in lieu
of any other available annuity or benefit form.
new text end

new text begin (b) If a retiring plan member or a disabilitant selects a joint and survivor optional
annuity form under paragraph (a), the retiring plan member or disabilitant must receive a
normal single life annuity if the designated optional annuity beneficiary dies before the
primary annuity receipt. No reduction under this option may be made in the person's
annuity to provide for the restoration of the normal single life annuity in the event of the
death of the designated optional annuity beneficiary.
new text end

Sec. 8.

new text begin [353G.08] AUGMENTATION OF CERTAIN ANNUITIES.
new text end

new text begin (a) Unless a combined service annuity under section 356.30 has been elected, a
person who becomes a member of this plan after having been a member of the general
employees retirement plan of the Public Employees Retirement Association, of the
public employees police and fire retirement plan, of the local government correctional
service retirement plan of the Public Employees Retirement Association, of the general
state employees retirement plan of the Minnesota State Retirement System, or of the
correctional state employees retirement plan of the Minnesota State Retirement System is
covered under section 352.72, subdivision 2, or 353.71, subdivision 2, whichever applies,
with respect to that prior service.
new text end

new text begin (b) A person who becomes a member of one of the retirement plans cited in
paragraph (a) after having been a member of this plan is also covered under section
352.72, subdivision 2, or 353.71, subdivision 2, whichever applies, with respect to that
prior service, unless the annuity is calculated under section 356.30.
new text end

Sec. 9.

new text begin [353G.09] DISABILITY BENEFITS.
new text end

new text begin Subdivision 1. new text end

new text begin Age and service requirements. new text end

new text begin A postsentencing officer or an
emergency dispatcher who is covered by the plan, who is less than normal retirement age,
and who becomes totally and permanently disabled after rendering three or more years of
allowable service is entitled to a disability benefit in an amount provided in subdivision 3.
If the disabled officer or dispatcher's allowable service has terminated at any time, the
officer or dispatcher must have rendered at least two years of allowable service after last
becoming an officer or dispatcher covered by the plan. Refunds may be repaid under
section 11 before the effective accrual date of the disability benefit under subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Application; accrual of benefits. new text end

new text begin A postsentencing officer or an
emergency dispatcher making claim for a total and permanent disability benefit, or
someone acting on behalf of the officer or dispatcher upon proof of authority satisfactory to
the executive director of the Public Employees Retirement Association, shall file a written
application for benefits in the office of the Public Employees Retirement Association.
The application must be in a form and manner prescribed by the executive director of
the Public Employees Retirement Association. The benefit begins to accrue on the day
following the start of disability or on the day following the last day paid, whichever is
later, but not earlier than 180 days before the date the application is filed with the director.
new text end

new text begin Subd. 3. new text end

new text begin Computation of benefits. new text end

new text begin The total and permanent disability benefit must
be computed in the manner provided in section 353G.06. The disability benefit is an
amount equal to the normal annuity without reduction for each month the postsentencing
officer or emergency dispatcher is under the normal retirement age at the time of becoming
disabled. A disabled officer or dispatcher may choose to receive the normal disability
benefit or an optional annuity as provided in section 353G.07, subdivision 5. This choice
must be made before the start of payment of the disability benefit and is effective on the
date on which the disability begins to accrue as provided in subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Medical or psychological examinations; authorization for payment
of benefit. new text end

new text begin (a) An applicant shall provide medical or psychological evidence to support
an application for total and permanent disability. The executive director of the Public
Employees Retirement Association shall have the postsentencing officer or emergency
dispatcher examined by at least one additional licensed chiropractor, physician, or
psychologist designated by the medical adviser. The examining chiropractors, physicians,
or psychologists shall make written reports to the director concerning the officer or
dispatcher's disability, including medical opinions as to whether the officer or dispatcher is
permanently and totally disabled within the meaning of section 353G.01, subdivision 13.
new text end

new text begin (b) The director shall also obtain written certification from the employer stating
whether the employment has ceased or whether the officer or dispatcher is on a leave of
absence because of a disability that will prevent further service to the employer, and as a
consequence the officer or dispatcher is not entitled to compensation from the employer.
new text end

new text begin (c) The medical adviser shall consider the reports of the physicians, psychologists,
and chiropractors, and any other evidence supplied by the officer or dispatcher or other
interested parties. If the medical adviser finds the officer or dispatcher totally and
permanently disabled, the adviser shall make the appropriate recommendation to the
director in writing together with the date from which the officer or dispatcher has been
totally disabled. The director shall then determine if the disability occurred within 180
days of filing the application, if the disability occurred while still in covered employment,
and the propriety of authorizing payment of a disability benefit as provided in this section.
A terminated officer or dispatcher may apply for a disability benefit within 180 days of the
termination of covered employment as long as the disability occurred while in covered
employment. The fact that the officer or dispatcher is placed on a leave of absence without
compensation because of disability does not bar that officer or dispatcher from receiving
a disability benefit.
new text end

new text begin Subd. 5. new text end

new text begin Disability benefit termination. new text end

new text begin Unless payment of a disability benefit has
terminated because the postsentencing officer or the emergency dispatcher is no longer
totally disabled, or because the officer or dispatcher has reached normal retirement age as
provided in this section, the disability benefit must cease with the last payment which was
received by the disabilitant or which had accrued during the lifetime of the disabilitant
unless there is a surviving spouse. If there is a surviving spouse, the surviving spouse is
entitled to the disability benefit payment for the calendar month in which the disabilitant
died.
new text end

new text begin Subd. 6. new text end

new text begin Regular medical or psychological examinations. new text end

new text begin At least once each
year during the first five years following the allowance of a disability benefit to any
postsentencing officer or emergency dispatcher, and at least once in every three-year
period thereafter, the executive director of the Public Employees Retirement Association
may require the disability benefit recipient to undergo a medical or psychological
examination. The examination must be made at the place of residence of the disabilitant,
or at any place mutually agreed upon by the disabilitant and the director, and must be
made by a physician or physicians designated by the medical adviser and engaged by the
director. If any examination indicates to the medical adviser that the disability benefit
recipient is no longer permanently and totally disabled, or is engaged in or can engage in a
gainful occupation, payments of the disability benefit by the plan must be discontinued.
The payments must discontinue as soon as the officer or dispatcher is reinstated to the
payroll following the sick leave, but in no case may the payment be made for more
than 60 days after the medical adviser finds that the officer or dispatcher is no longer
permanently and totally disabled.
new text end

new text begin Subd. 7. new text end

new text begin Partial reemployment. new text end

new text begin If the disabilitant resumes a gainful occupation
from which earnings are less than the salary of the postsentencing officer or emergency
dispatcher at the date of disability or the salary currently paid for similar positions, the
director shall continue the disability benefit in an amount which, when added to earnings,
does not exceed the salary at the date of disability, provided that the disability benefit in
this case does not exceed the disability benefit originally allowed. Deductions for the
retirement fund must not be taken from the salary of a disabilitant who is receiving a
disability benefit as provided in this subdivision.
new text end

new text begin Subd. 8. new text end

new text begin Refusal of examination. new text end

new text begin If a disability benefit recipient refuses to submit
to a medical examination as required, disability benefit payments must be discontinued
and the director shall revoke all rights of the postsentencing officer or emergency
dispatcher to any disability benefit.
new text end

new text begin Subd. 9. new text end

new text begin Return to state service. new text end

new text begin Any disability benefit recipient who is restored to
active service, except postsentencing officers or emergency dispatchers receiving benefits
as provided in subdivision 7, must have deductions taken for the retirement fund and,
upon retirement, have the payable retirement annuity based upon all allowable service,
including that allowable service upon which the disability benefits were based. No
postsentencing officer or emergency dispatcher is entitled to receive disability benefits
and a retirement annuity at the same time.
new text end

new text begin Subd. 10. new text end

new text begin Disabilitant again disabled after resuming employment. new text end

new text begin If a disabled
benefit recipient resumes gainful employment and is not entitled to continued payment
of a disability benefit as provided in subdivision 7, the right to a disability benefit ends
when the postsentencing officer or emergency dispatcher has been employed for one year
thereafter. If the officer or dispatcher again becomes totally and permanently disabled
before reaching the normal retirement age, an application for a disability benefit may
again be made. If the officer or dispatcher is entitled to a disability benefit, it must be
computed as provided in subdivision 9.
new text end

new text begin Subd. 11. new text end

new text begin Recomputation of benefit. new text end

new text begin If a disabled postsentencing officer or
emergency dispatcher who has resumed employment as provided in subdivision 10
is reemployed for more than three months, but cannot continue employment for one
year, the disability benefit must be recomputed allowing additional service credit for the
period of reemployment. If the period of reemployment does not exceed three months,
the deductions taken from salary after resuming employment must be returned to the
officer or dispatcher. The officer or dispatcher is not entitled to service credit for the
period covered by the returned deductions.
new text end

new text begin Subd. 12. new text end

new text begin Retirement status at normal retirement age. new text end

new text begin The disability benefit paid
to a disability benefit recipient under this section ends when the postsentencing officer or
emergency dispatcher reaches normal retirement age. If the disabled officer or dispatcher
is still totally and permanently disabled when the officer or dispatcher reaches normal
retirement age, the officer or dispatcher must be considered to be a retired member. If the
officer or dispatcher had chosen an optional annuity under subdivision 3, the officer or
dispatcher must receive an annuity in accordance with the terms of the optional annuity
previously chosen. If the officer or dispatcher had not chosen an optional annuity under
subdivision 3, the officer or dispatcher may then choose to receive either a normal
retirement annuity equal in amount to the disability benefit paid before the person reached
normal retirement age or an optional annuity as provided in section 353G.06, subdivision
5. The choice of an optional annuity must be made before reaching normal retirement age.
If an optional annuity is chosen, the choice is effective on the date on which the person
attains normal retirement age and the optional annuity must begin to accrue the first of the
month next following the month in which the person attains this age.
new text end

Sec. 10.

new text begin [353G.10] DEATH AND SURVIVORSHIP BENEFITS.
new text end

new text begin Subdivision 1. new text end

new text begin Death before termination of service. new text end

new text begin If a postsentencing officer or
emergency dispatcher dies before active employment has terminated and neither a survivor
annuity nor a reversionary annuity is payable, or if a former postsentencing officer or
emergency dispatcher who has sufficient service credit to be entitled to an annuity dies
before the benefit has become payable, the executive director of the Public Employees
Retirement Association shall make a refund to the last designated beneficiary or, if there is
none, to the surviving spouse or, if none, to the officer or dispatcher's surviving children in
equal shares or, if none, to the officer or dispatcher's surviving parents in equal shares or,
if none, to the representative of the estate in an amount equal to the accumulated member
contributions, plus interest at the rate of six percent per annum compounded annually.
Interest must be computed to the first day of the month in which the refund is processed.
Upon the death of an officer or dispatcher who has received a refund that was later repaid
in full, interest must be paid on the repaid refund only from the date of repayment. If the
repayment was made in installments, interest must be paid only from the date installment
payments began. The designated beneficiary, surviving spouse, or representative of the
estate of an officer or dispatcher who had received a disability benefit is not entitled to
interest upon any balance remaining to the decedent's credit in the fund at the time of
death, unless the death occurred before any payment could be negotiated.
new text end

new text begin Subd. 2. new text end

new text begin Surviving spouse benefit. new text end

new text begin (a) If a postsentencing officer or emergency
dispatcher or former officer or dispatcher has credit for at least three years allowable service
and dies before an annuity or disability benefit has become payable, notwithstanding any
designation of beneficiary to the contrary, the surviving spouse of the officer or dispatcher
may elect to receive, in lieu of the refund with interest under subdivision 1, an annuity
equal to the joint and 100 percent survivor annuity which the officer or dispatcher or
former officer or dispatcher could have qualified for on the date of death.
new text end

new text begin (b) If the officer or dispatcher was under age 55 and has credit for at least 30 years
of allowable service on the date of death, the surviving spouse may elect to receive a
100 percent joint and survivor annuity based on the age of the officer or dispatcher
and surviving spouse on the date of death. The annuity is payable using the full early
retirement reduction under section 353G.06, subdivision 3, to age 55 and one-half of the
early retirement reduction from age 55 to the age at which payment begins.
new text end

new text begin (c) If the officer or dispatcher was under age 55 and has credit for at least three years
of allowable service credit on the date of death but did not yet qualify for retirement, the
surviving spouse may elect to receive a 100 percent joint and survivor annuity based on
the age of the person and surviving spouse at the time of death. The annuity is payable
using the full early retirement reduction under section 353G.06, subdivision 3, to age 55
and one-half of the early retirement reduction from age 55 to the age payment begins.
new text end

new text begin (d) The surviving spouse eligible for benefits under paragraph (a) may apply for the
annuity at any time after the date on which the officer or dispatcher or former officer or
dispatcher would have attained the required age for retirement based on the allowable
service earned. The surviving spouse eligible for surviving spouse benefits under
paragraph (b) or (c) may apply for the annuity at any time after the officer or dispatcher's
death. The annuity must be computed under section 353G.06. Section 353G.07 applies to
a deferred annuity or surviving spouse benefit payable under this subdivision. The annuity
must cease with the last payment received by the surviving spouse in the lifetime of the
surviving spouse, or upon expiration of a term certain benefit payment to a surviving
spouse under subdivision 2a. An amount equal to the excess, if any, of the accumulated
contributions credited to the account of the deceased officer or dispatcher in excess of the
total of the benefits paid and payable to the surviving spouse must be paid to the last
designated beneficiary of the officer or the dispatcher or of the former officer or former
dispatcher or, if none, as specified under subdivision 1.
new text end

new text begin (e) An officer or former officer or a dispatcher or former dispatcher may request in
writing that this subdivision not apply and that payment be made only to a designated
beneficiary as otherwise provided by this chapter.
new text end

new text begin Subd. 2a. new text end

new text begin Surviving spouse coverage term certain. new text end

new text begin (a) In lieu of the 100 percent
optional annuity under subdivision 2, or refund under subdivision 1, the surviving spouse
of a deceased officer or dispatcher or former officer or dispatcher may elect to receive
survivor coverage in a term certain of five, ten, 15, or 20 years, but monthly payments
must not exceed 75 percent of the average high-five monthly salary of the decedent. The
monthly term certain annuity must be actuarially equivalent to the 100 percent optional
annuity under subdivision 2.
new text end

new text begin (b) If a survivor elects a term certain annuity and dies before the expiration of the
specified term certain period, the commuted value of the remaining annuity payments
must be paid in a lump sum to the survivor's estate.
new text end

new text begin Subd. 2b. new text end

new text begin Dependent child survivor coverage. new text end

new text begin If there is no surviving spouse
eligible for benefits under subdivision 2, a dependent child or children as defined in section
353G.01, subdivision 10, are eligible for monthly payments. Payments to a dependent
child must be paid from the date of the postsentencing officer or emergency dispatcher's
death to the date on which the dependent child attains the age of 20 if the child is under
age 15 on the date of death. If the child is 15 years or older on the date of death, payment
must be made for five years. The payment to a dependent child is an amount actuarially
equivalent to the value of a 100 percent optional annuity under subdivision 2 using the
age of the officer or dispatcher and the age of the dependent child at the date of death in
lieu of the age of the surviving spouse. If there is more than one dependent child, each
dependent child shall be entitled to receive a proportionate share of the actuarial value
of the account of the officer or dispatcher.
new text end

new text begin Subd. 3. new text end

new text begin Refund of $3,000 or less. new text end

new text begin If a postsentencing officer or emergency
dispatcher or a former officer or dispatcher dies without having designated a beneficiary, or
if the beneficiary dies before applying for a refund of the sum to the credit of the deceased
officer or dispatcher or former officer or dispatcher, and there is no surviving spouse, and
the amount of the refund does not exceed $3,000, exclusive of interest, the executive
director of the Public Employees Retirement Association may refund the amount to the
deceased person's next of kin. The amount may be refunded 90 days after the date of death
of the person in the absence of probate proceedings, and upon proper application. The
next of kin must be determined by the director with the concurrence of the board and is
entitled to the refund consistent with the laws of descent. A determination and payment
without notice are conclusive and final and are a bar against claims of all other persons.
new text end

new text begin Subd. 4. new text end

new text begin Refund to minor beneficiary. new text end

new text begin If a postsentencing officer or emergency
dispatcher or former officer or dispatcher dies having named as a beneficiary a person who
is a minor at the time of the application for refund, and the amount of the refund does not
exceed $3,000, exclusive of interest, the executive director of the Public Employees
Retirement Association in the absence of guardianship or probate proceedings may make
payment to the natural guardian having custody of the minor beneficiary, for the benefit
of the child. Any annuity, retirement allowance, or disability benefit accrued at the time
of death of a disabled or retired person, payable to a minor beneficiary, may similarly be
paid. Payment is a bar to a recovery by any other person or persons.
new text end

new text begin Subd. 5. new text end

new text begin Recovery bar. new text end

new text begin A determination and a payment under subdivision 3 or a
payment under subdivision 4 is a bar to a recovery by any other person, whether the
person had notice or otherwise.
new text end

new text begin Subd. 6. new text end

new text begin Death after service termination. new text end

new text begin Except as provided in subdivision
1, if a former postsentencing officer or emergency dispatcher covered by the plan dies
and has not received an annuity or a disability benefit, a refund must be made to the
last designated beneficiary or, if there is none, to the surviving spouse or, if none, to
the person's surviving children in equal shares or, if none, to the person's surviving
parents in equal shares or, if none, to the representative of the estate in an amount equal
to accumulated member contributions. The refund must include interest at the rate of
six percent per year compounded annually. The interest must be computed as provided
in section 352.22, subdivision 2.
new text end

new text begin Subd. 7. new text end

new text begin Absence of optional or reversionary annuity. new text end

new text begin Upon the death of a retired
postsentencing officer or emergency dispatcher who selected neither an optional annuity
nor a reversionary annuity, a refund must be paid in an amount equal to the excess, if
any, of the accumulated contributions to the credit of the former officer or dispatcher
immediately before retirement in excess of the sum of (1) all annuities and disability
benefits that had been received and had accrued in the lifetime of the decedent, and (2)
the annuity or disability benefit, if not negotiated, payable to the surviving spouse under
section 353G.06, for the calendar month in which the retired officer or dispatcher died.
The refund must be paid to the named beneficiary or, if there is none, to the surviving
spouse or, if none, to the person's surviving children in equal shares or, if none, to the
person's surviving parents in equal shares or, if none, to the representative of the estate.
new text end

new text begin Subd. 8. new text end

new text begin Optional or reversionary annuity. new text end

new text begin If the last eligible recipient of an
optional annuity dies and the total amounts paid under it are less than the accumulated
contributions to the credit of the retired postsentencing officer or emergency dispatcher
immediately before retirement, the balance of accumulated contributions must be paid to
the person designated by the retired officer or dispatcher in writing to receive payment. If
no designation has been made by the retired officer or dispatcher, the remaining balance of
accumulated contributions must be paid to the surviving children of the deceased recipient
of the optional annuity in equal shares. If there are no surviving children, payment
must be made to the deceased recipient's parents or, if none, to the representative of
the deceased recipient's estate.
new text end

new text begin Subd. 9. new text end

new text begin Beneficiary designation. new text end

new text begin The designation of a beneficiary or person to
receive any accumulated contributions remaining to the credit of a postsentencing officer
or emergency dispatcher, a former officer or dispatcher, or a retired officer or dispatcher, at
the time of death, as provided in this section, must be in writing and must be filed with
the director before the death of the officer or dispatcher, former officer or dispatcher,
or retired officer or dispatcher.
new text end

new text begin Subd. 10. new text end

new text begin Death of beneficiary before refund. new text end

new text begin If the last designated beneficiary or
beneficiaries and the surviving spouse of a deceased officer or dispatcher, former officer or
dispatcher, or retired officer or dispatcher dies before receiving a refund of the sum to the
credit of the deceased person at the time of death, the refund must be made to the estate
of the deceased person or as provided in subdivision 3 if the amount of the refund does
not exceed $3,000, exclusive of interest.
new text end

new text begin Subd. 11. new text end

new text begin Death of disability annuitant. new text end

new text begin If a postsentencing officer or emergency
dispatcher who has received a disability benefit dies, a payment must be made of an
amount equal to the excess, if any, of the accumulated contributions to the credit of the
officer or dispatcher at the time the disability benefit began to accrue over and above
the aggregate of (1) all disability benefits received and which had accrued during the
person's life, and (2) the benefit for the month in which the disabled person died, payable,
if applicable, to the surviving spouse under section 353G.08. The payment must be paid,
upon a written application, to the last designated beneficiary or, if there is none, to the
surviving spouse or, if none, to the officer or dispatcher's surviving children in equal
shares or, if none, to the officer or dispatcher's surviving parents in equal shares or, if
none, to the representative of the estate.
new text end

new text begin Subd. 12. new text end

new text begin Refund, failure to request. new text end

new text begin If the last designated beneficiary, surviving
spouse, legal representative, or next of kin, as determined by the executive director of the
Public Employees Retirement Association, with the concurrence of the board, fails to
claim the refund as provided in this section (1) within five years from the date of death
of a retired postsentencing officer or emergency dispatcher or the disabled officer or
dispatcher, or (2) within five years after the last deduction was taken from the salary of a
deceased officer or dispatcher or deceased former officer or dispatcher, the accumulated
contributions of the deceased person must be credited to the retirement fund. However,
if the claim to the refund is made within ten years after the transfer of accumulated
contributions to the fund or within ten years after the date of death, whichever is later, and
the amount transferred to the fund is over $25, the sum must be restored to the account
of the deceased person. The refund must then be paid, upon a written application, to the
surviving spouse or, if none, to the legal representative of the estate irrespective of any
designation of beneficiary made by the deceased person.
new text end

new text begin Subd. 13. new text end

new text begin Refund, beneficiary. new text end

new text begin If, upon death, a former postsentencing officer or
emergency dispatcher has in possession a commissioner of finance's warrant which does
not exceed $1,000, covering a refund of accumulated contributions in the retirement
fund, in the absence of probate proceedings the commissioner of finance's warrant may
be returned for cancellation, and then, upon application made by the last designated
beneficiary of the deceased former officer or dispatcher, a refund of the accumulated
contributions must be paid, upon a written application, to the last designated beneficiary.
Payments made under this subdivision are a bar to recovery by any other person or persons.
new text end

Sec. 11.

new text begin [353G.11] EXEMPTION FROM PROCESS AND TAXATION.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; exceptions. new text end

new text begin None of the money, annuities, or other
benefits mentioned in this chapter is assignable either in law or in equity or subject to state
estate tax, or to execution, levy, attachment, garnishment, or other legal process, except as
provided in subdivision 2 or section 518.58, 518.581, or 518.6111.
new text end

new text begin Subd. 2. new text end

new text begin Automatic deposits. new text end

new text begin The executive director may remit, through an
automatic deposit system, annuity, benefit, or refund payments only to a financial
institution associated with the National Automated Clearinghouse Association or a
comparable successor organization that is the trustee for a person eligible to receive the
annuity, benefit, or refund. Upon the request of the retiree, disabilitant, survivor, or former
officer or dispatcher, the executive director may remit the annuity, benefit, or refund check
to the applicable financial institution for deposit in the person's account or joint account.
The board of trustees may prescribe the conditions under which payments will be made.
new text end

Sec. 12.

new text begin [353G.12] REFUND OR DEFERRED ANNUITY.
new text end

new text begin Subdivision 1. new text end

new text begin Refund. new text end

new text begin A postsentencing officer or an emergency dispatcher who
terminates that employment or who is laid off from that employment is entitled, upon
application, to a refund if the person is not reemployed by the person's prior employer,
by another employer covered by the retirement plan, or by the state. The refund is an
amount equal to the accumulated member contributions of the officer or the dispatcher,
plus interest at an annual compound rate of six percent per year. The refund must include
the interest that was paid as part of a previous repayment of a prior refund, plus interest
from the date of that repayment. Interest must be computed to the first day of the month
in which the refund is processed and must be based on fiscal year or monthly balances,
whichever applies. Acceptance of a refund under this subdivision terminates all allowable
service and salary credit of the person in the retirement plan and terminates all entitlement
to rights or benefits under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Deferred annuity. new text end

new text begin A postsentencing officer or an emergency dispatcher
who terminates that employment may elect to have the accumulated member contributions
in the retirement fund and to remain entitled to a deferred retirement annuity. The deferred
retirement annuity must be computed under the law in effect when the employment of
the officer or dispatcher terminated on the basis of the allowable service credited before
the termination of employment. No application for a deferred retirement annuity may be
made more than 60 days before the date when the former officer or the former dispatcher
reaches the required age for annuity entitlement. The deferred annuity begins to accrue no
earlier than 60 days before the date when the retirement annuity application is filed with
the executive director of the Public Employees Retirement Association, but not before
the date on which the officer or dispatcher reaches the annuity entitlement required age
or before the termination of employment.
new text end

Sec. 13.

new text begin [353G.13] SERVICE IN MORE THAN ONE RETIREMENT PLAN.
new text end

new text begin (a) A postsentencing officer or emergency dispatcher who also has been a member of
one retirement plan or a combination of retirement plans listed in paragraph (b) is entitled,
when qualified, to an annuity from each plan if the total allowable service credit in all
retirement plans totals at least three years.
new text end

new text begin (b) Applicable retirement plans are any retirement plan administered by the
Minnesota State Retirement System, any retirement plan administered by the Public
Employees Retirement Association, the Teachers Retirement Association, the Minneapolis
Employees Retirement Fund, the Duluth Teachers Retirement Fund Association, the
Minneapolis Teachers Retirement Fund Association, or the St. Paul Teachers Retirement
Fund Association.
new text end

new text begin (c) No portion of the allowable service upon which the retirement annuity from one
retirement plan is based may be again used in the computation for benefits from another
retirement plan. No refund may have been taken from any one of these retirement plans
since service entitling the person to coverage under the plan or the person's membership
in any of the plans last terminated. The annuity from each retirement plan must be
determined by the appropriate provisions of the law, except that the requirement that a
person must have at least three years allowable service in the respective retirement plan
does not apply for the purposes of this section if the combined service in two or more of
these retirement plans equals three or more years.
new text end

Sec. 14.

new text begin [353G.14] DEFERRED ANNUITY AUGMENTATION.
new text end

new text begin (a) The deferred annuity must be computed as provided in section 353G.07 on
the basis of allowable service rendered before the termination of covered service and
augmented as provided in paragraph (b).
new text end

new text begin (b) The required reserves applicable to a deferred annuity, to an annuity for which a
former postsentencing officer or emergency dispatcher was eligible but had not applied,
or to any deferred segment of an annuity must be determined as of the date the benefit
begins to accrue and is augmented by interest compounded annually from the first day of
the month following the month in which the officer or dispatcher ceased to be an officer or
dispatcher to the first day of the month in which the annuity begins to accrue. The rates of
interest used for this purpose must be three percent compounded annually until January 1
of the year following the year in which the former officer or dispatcher attains age 55.
From that date to the effective date of retirement, the rate is five percent compounded
annually. If a person has more than one period of uninterrupted service, the required
reserves related to each period must be augmented by interest under this subdivision. The
sum of the augmented required reserves so determined is the present value of the annuity.
"Uninterrupted service" for the purpose of this subdivision means periods of covered
employment during which the officer or dispatcher has not been separated from covered
employment for more than two years. If a person repays a refund, the service restored by
the repayment must be considered continuous with the next period of service for which the
officer or dispatcher has credit with this system. The formula percentages used for each
period of uninterrupted service must be those applicable to a new officer or dispatcher.
The mortality table and interest assumption used to compute the annuity must be those in
effect when the officer or dispatcher files an application for annuity. This section may not
cause a reduction in the annuity otherwise payable under this chapter.
new text end

Sec. 15. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 14 are effective July 1, 2007.
new text end

ARTICLE 2

CONFORMING CHANGES

Section 1.

Minnesota Statutes 2004, section 352.01, subdivision 2b, is amended to read:

Subd. 2b.

Excluded employees.

"State employee" does not include:

(1) students employed by the University of Minnesota, or the state colleges and
universities, unless approved for coverage by the Board of Regents or the Board of
Trustees of the Minnesota State Colleges and Universities, as the case may be;

(2) employees who are eligible for membership in the state Teachers Retirement
Association, except employees of the Department of Education who have chosen or may
choose to be covered by the general state employees retirement plan of the Minnesota
State Retirement System instead of the Teachers Retirement Association;

(3) employees of the University of Minnesota who are excluded from coverage by
action of the Board of Regents;

(4) officers and enlisted personnel in the National Guard and the naval militia who
are assigned to permanent peacetime duty and who under federal law are or are required to
be members of a federal retirement system;

(5) election officers;

(6) persons who are engaged in public work for the state but who are employed
by contractors when the performance of the contract is authorized by the legislature or
other competent authority;

(7) officers and employees of the senate, or of the house of representatives, or of a
legislative committee or commission who are temporarily employed;

(8) receivers, jurors, notaries public, and court employees who are not in the judicial
branch as defined in section 43A.02, subdivision 25, except referees and adjusters
employed by the Department of Labor and Industry;

(9) patient and inmate help in state charitable, penal, and correctional institutions
including the Minnesota Veterans Home;

(10) persons who are employed for professional services where the service is
incidental to their regular professional duties and whose compensation is paid on a per
diem basis;

(11) employees of the Sibley House Association;

(12) the members of any state board or commission who serve the state intermittently
and are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer of those
boards if their compensation is $5,000 or less per year, or, if they are legally prohibited
from serving more than three years; and the board of managers of the State Agricultural
Society and its treasurer unless the treasurer is also its full-time secretary;

(13) state troopers;

(14) temporary employees of the Minnesota State Fair who are employed on or
after July 1 for a period not to extend beyond October 15 of that year; and persons who
are employed at any time by the state fair administration for special events held on the
fairgrounds;

(15) emergency employees who are in the classified service; except that if an
emergency employee, within the same pay period, becomes a provisional or probationary
employee on other than a temporary basis, the employee shall be considered a "state
employee" retroactively to the beginning of the pay period;

(16) persons who are described in section 352B.01, subdivision 2, clauses (2) to (6);

(17) temporary employees in the classified service, and temporary employees in the
unclassified service who are appointed for a definite period of not more than six months
and who are employed less than six months in any one-year period;

(18) trainee employees, except those listed in subdivision 2a, clause (10);

(19) persons whose compensation is paid on a fee basis;

(20) state employees who are employed by the Board of Trustees of the Minnesota
State Colleges and Universities in unclassified positions enumerated in section 43A.08,
subdivision 1, clause (9);

(21) state employees who in any year have credit for 12 months service as teachers
in the public schools of the state and as teachers are members of the Teachers Retirement
Association or a retirement system in St. Paul, Minneapolis, or Duluth;

(22) employees of the adjutant general who are employed on an unlimited
intermittent or temporary basis in the classified or unclassified service for the support of
Army and Air National Guard training facilities;

(23) chaplains and nuns who are excluded from coverage under the federal Old
Age, Survivors, Disability, and Health Insurance Program for the performance of service
as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no
irrevocable election of coverage has been made under section 3121(r) of the Internal
Revenue Code of 1986, as amended through December 31, 1992;

(24) examination monitors who are employed by departments, agencies,
commissions, and boards to conduct examinations required by law;

(25) persons who are appointed to serve as members of fact-finding commissions or
adjustment panels, arbitrators, or labor referees under chapter 179;

(26) temporary employees who are employed for limited periods under any state or
federal program for training or rehabilitation, including persons who are employed for
limited periods from areas of economic distress, but not including skilled and supervisory
personnel and persons having civil service status covered by the system;

(27) full-time students who are employed by the Minnesota Historical Society
intermittently during part of the year and full-time during the summer months;

(28) temporary employees who are appointed for not more than six months, of
the Metropolitan Council and of any of its statutory boards, if the board members are
appointed by the Metropolitan Council;

(29) persons who are employed in positions designated by the Department of
Employee Relations as student workers;

(30) members of trades who are employed by the successor to the Metropolitan
Waste Control Commission, who have trade union pension plan coverage under a
collective bargaining agreement, and who are first employed after June 1, 1977;

(31) deleted text begin persons who are employed in subsidized on-the-job training, work experience,
or public service employment as enrollees under the federal Comprehensive Employment
and Training Act after March 30, 1978, unless the person has as of the later of March 30,
1978, or the date of employment sufficient service credit in the retirement system to meet
the minimum vesting requirements for a deferred annuity, or the employer agrees in
writing on forms prescribed by the director to make the required employer contributions,
including any employer additional contributions, on account of that person from revenue
sources other than funds provided under the federal Comprehensive Employment and
Training Act, or the person agrees in writing on forms prescribed by the director to make
the required employer contribution in addition to the required employee contribution deleted text end new text begin state
employees who, in the capacity of postsentencing officers or emergency dispatchers, are
members of the postsentencing officers and emergency dispatchers retirement plan new text end ;

(32) off-duty peace officers while employed by the Metropolitan Council;

(33) persons who are employed as full-time police officers by the Metropolitan
Council and as police officers are members of the public employees police and fire fund;

(34) persons who are employed as full-time firefighters by the Department of Military
Affairs and as firefighters are members of the public employees police and fire fund;

(35) foreign citizens with a work permit of less than three years, or an H-1b/JV visa
valid for less than three years of employment, unless notice of extension is supplied which
allows them to work for three or more years as of the date the extension is granted, in
which case they are eligible for coverage from the date extended; and

(36) persons who are employed by the Board of Trustees of the Minnesota State
Colleges and Universities and who elect to remain members of the Public Employees
Retirement Association or the Minneapolis Employees Retirement Fund, whichever
applies, under section 136C.75.

Sec. 2.

Minnesota Statutes 2005 Supplement, section 353.01, subdivision 2b, is
amended to read:

Subd. 2b.

Excluded employees.

The following public employees are not eligible
to participate as members of the association with retirement coverage by the public
employees retirement plan, the local government correctional employees retirement plan
under chapter 353E, or the public employees police and fire retirement plan:

(1) public officers, other than county sheriffs, who are elected to a governing body,
or persons who are appointed to fill a vacancy in an elective office of a governing body,
whose term of office commences on or after July 1, 2002, for the service to be rendered
in that elective position. Elected governing body officials who were active members of
the association's coordinated or basic retirement plans as of June 30, 2002, continue
participation throughout incumbency in office until termination of public service occurs as
defined in subdivision 11a;

(2) election officers or election judges;

(3) patient and inmate personnel who perform services for a governmental
subdivision;

(4) except as otherwise specified in subdivision 12a, employees who are hired for
a temporary position as defined under subdivision 12a, and employees who resign from
a nontemporary position and accept a temporary position within 30 days in the same
governmental subdivision;

(5) employees who are employed by reason of work emergency caused by fire,
flood, storm, or similar disaster;

(6) employees who by virtue of their employment in one governmental subdivision
are required by law to be a member of and to contribute to any of the plans or funds
administered by the Minnesota State Retirement System, the Teachers Retirement
Association, the Duluth Teachers Retirement Fund Association, the Minneapolis Teachers
Retirement Fund Association, the St. Paul Teachers Retirement Fund Association, the
Minneapolis Employees Retirement Fund, or any police or firefighters relief association
governed by section 69.77 that has not consolidated with the Public Employees Retirement
Association, or any local police or firefighters consolidation account who have not elected
the type of benefit coverage provided by the public employees police and fire fund under
sections 353A.01 to 353A.10, or any persons covered by section 353.665, subdivision 4,
5, or 6, who have not elected public employees police and fire plan benefit coverage. This
clause must not be construed to prevent a person from being a member of and contributing
to the Public Employees Retirement Association and also belonging to and contributing to
another public pension plan or fund for other service occurring during the same period
of time. A person who meets the definition of "public employee" in subdivision 2 by
virtue of other service occurring during the same period of time becomes a member of the
association unless contributions are made to another public retirement fund on the salary
based on the other service or to the Teachers Retirement Association by a teacher as
defined in section 354.05, subdivision 2;

(7) persons who are members of a religious order and are excluded from coverage
under the federal Old Age, Survivors, Disability, and Health Insurance Program for the
performance of service as specified in United States Code, title 42, section 410(a)(8)(A),
as amended through January 1, 1987, if no irrevocable election of coverage has been made
under section 3121(r) of the Internal Revenue Code of 1954, as amended;

(8) employees of a governmental subdivision who have not reached the age of
23 and are enrolled on a full-time basis to attend or are attending classes on a full-time
basis at an accredited school, college, or university in an undergraduate, graduate, or
professional-technical program, or a public or charter high school;

(9) resident physicians, medical interns, and pharmacist residents and pharmacist
interns who are serving in a degree or residency program in public hospitals;

(10) students who are serving in an internship or residency program sponsored
by an accredited educational institution;

(11) persons who hold a part-time adult supplementary technical college license who
render part-time teaching service in a technical college;

(12) except for employees of Hennepin County or Hennepin Healthcare System,
Inc., foreign citizens working for a governmental subdivision with a work permit of less
than three years, or an H-1b visa valid for less than three years of employment. Upon
notice to the association that the work permit or visa extends beyond the three-year period,
the foreign citizens must be reported for membership from the date of the extension;

(13) public hospital employees who elected not to participate as members of the
association before 1972 and who did not elect to participate from July 1, 1988, to October
1, 1988;

(14) except as provided in section 353.86, volunteer ambulance service personnel,
as defined in subdivision 35, but persons who serve as volunteer ambulance service
personnel may still qualify as public employees under subdivision 2 and may be members
of the Public Employees Retirement Association and participants in the public employees
retirement fund or the public employees police and fire fund, whichever applies, on the
basis of compensation received from public employment service other than service as
volunteer ambulance service personnel;

(15) except as provided in section 353.87, volunteer firefighters, as defined in
subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties;
provided that a person who is a volunteer firefighter may still qualify as a public
employee under subdivision 2 and may be a member of the Public Employees Retirement
Association and a participant in the public employees retirement fund or the public
employees police and fire fund, whichever applies, on the basis of compensation received
from public employment activities other than those as a volunteer firefighter;

(16) pipefitters and associated trades personnel employed by Independent School
District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
pipefitters local 455 pension plan who were either first employed after May 1, 1997, or,
if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter
241, article 2, section 12;

(17) electrical workers, plumbers, carpenters, and associated trades personnel
employed by Independent School District No. 625, St. Paul, or the city of St. Paul,
who have retirement coverage under a collective bargaining agreement by the Electrical
Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan,
or the Carpenters Local 87 pension plan who were either first employed after May 1,
2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000,
chapter 461, article 7, section 5;

(18) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers,
painters, allied tradesworkers, and plasterers employed by the city of St. Paul or
Independent School District No. 625, St. Paul, with coverage under a collective
bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan,
the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324
pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities
Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if
first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special
Session chapter 10, article 10, section 6;

(19) plumbers employed by the Metropolitan Airports Commission, with coverage
under a collective bargaining agreement by the Plumbers Local 34 pension plan, who either
were first employed after May 1, 2001, or if first employed before May 2, 2001, elected to
be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;

(20) employees who are hired after June 30, 2002, to fill seasonal positions under
subdivision 12b which are limited in duration by the employer to 185 consecutive calendar
days or less in each year of employment with the governmental subdivision;

(21) persons who are provided supported employment or work-study positions
by a governmental subdivision and who participate in an employment or industries
program maintained for the benefit of these persons where the governmental subdivision
limits the position's duration to three years or less, including persons participating in a
federal or state subsidized on-the-job training, work experience, senior citizen, youth, or
unemployment relief program where the training or work experience is not provided as a
part of, or for, future permanent public employment;

(22) independent contractors and the employees of independent contractors; deleted text begin and
deleted text end

(23) new text begin local governmental employees who, in the capacity of postsentencing officers
or emergency dispatchers, are members of the postsentencing officers and emergency
dispatchers retirement plan; and
new text end

new text begin (24) new text end reemployed annuitants of the association during the course of that
reemployment.

Sec. 3.

Minnesota Statutes 2004, section 355.01, is amended by adding a subdivision
to read:

new text begin Subd. 2g. new text end

new text begin Emergency dispatcher. new text end

new text begin "Emergency dispatcher" means a full-time
employee of the state or local governmental unit who is employed at a primary public
safety answering point, whose primary employment responsibility is receiving emergency
"911" telephone communications from the public which requires the subsequent contact
with and the response by police, fire, or medical resources, who is certified by the
governmental employer as regularly and consistently spending at least 75 percent of the
person's employment time in these duties, and who, in that capacity, is a member of the
postsentencing officers and emergency dispatchers retirement plan under chapter 353G.
new text end

Sec. 4.

Minnesota Statutes 2004, section 355.01, is amended by adding a subdivision
to read:

new text begin Subd. 3m. new text end

new text begin Postsentencing officer. new text end

new text begin "Postsentencing officer" means a full-time
employee of the state or local governmental unit who is responsible for the control,
supervision, and care of convicted offenders on probation in lieu of imprisonment or of
offenders conditionally released on parole after imprisonment where the employee is
certified by the governmental employer as regularly and consistently spending at least 75
percent of the person's employment time in the direct control, supervision, and care of
convicted offenders who represent a risk of violence or physical harm to the employee
and who, in that capacity, is a member of the postsentencing officers and emergency
dispatchers retirement plan under chapter 353G.
new text end

Sec. 5.

Minnesota Statutes 2004, section 355.02, subdivision 3, is amended to read:

Subd. 3.

Groups covered by Social Security.

The following groups must be
covered by an agreement or a modification to an agreement between the director and the
federal Secretary of Health and Human Services:

(1) constitutional officers;

(2) Duluth teachers;

(3) educational employees;

(4) higher education employees;

(5) hospital employees;

(6) judges;

(7) legislators;

(8) Minneapolis teachers;

(9) public employees new text begin , including members of the local government correctional
service retirement plan new text end ;

(10) St. Paul teachers;

(11) special authority or district employees; deleted text begin and
deleted text end

(12) state employees new text begin ;
new text end

new text begin (13) emergency dispatchers; and
new text end

new text begin (14) postsentencing officers new text end .

Sec. 6.

Minnesota Statutes 2004, section 356.20, subdivision 2, is amended to read:

Subd. 2.

Covered public pension plans and funds.

This section applies to the
following public pension plans:

(1) the general state employees retirement plan of the Minnesota State Retirement
System;

(2) the general employees retirement plan of the Public Employees Retirement
Association;

(3) the Teachers Retirement Association;

(4) the State Patrol retirement plan;

(5) the Minneapolis Teachers Retirement Fund Association;

(6) the St. Paul Teachers Retirement Fund Association;

(7) the Duluth Teachers Retirement Fund Association;

(8) the Minneapolis Employees Retirement Fund;

(9) the University of Minnesota faculty retirement plan;

(10) the University of Minnesota faculty supplemental retirement plan;

(11) the judges retirement fund;

(12) a police or firefighter's relief association specified or described in section 69.77,
subdivision 1a, or 69.771, subdivision 1;

(13) the public employees police and fire plan of the Public Employees Retirement
Association;

(14) the correctional state employees retirement plan of the Minnesota State
Retirement System; deleted text begin and
deleted text end

(15) the local government correctional service retirement plan of the Public
Employees Retirement Association new text begin ; and
new text end

new text begin (16) the postsentencing officers and emergency dispatchers retirement plan of the
Public Employees Retirement Association new text end .

Sec. 7.

Minnesota Statutes 2005 Supplement, section 356.215, subdivision 8, is
amended to read:

Subd. 8.

Interest and salary assumptions.

(a) The actuarial valuation must use
the applicable following preretirement interest assumption and the applicable following
postretirement interest assumption:

	preretirement	postretirement
	interest rate	interest rate
plan	assumption	assumption

general state employees retirement plan		8.5%	6.0%
correctional state employees retirement plan		8.5	6.0
State Patrol retirement plan		8.5	6.0
legislators retirement plan		8.5	6.0
elective state officers retirement plan		8.5	6.0
judges retirement plan		8.5	6.0
general public employees retirement plan		8.5	6.0
public employees police and fire retirement plan		8.5	6.0
local government correctional service retirement plan		8.5	6.0
new text begin postsentencing officers and emergency dispatchers retirement plan new text end		new text begin 8.5 new text end	new text begin 6.0 new text end
teachers retirement plan		8.5	6.0
Minneapolis employees retirement plan		6.0	5.0
Duluth teachers retirement plan		8.5	8.5
Minneapolis teachers retirement plan		8.5	8.5
St. Paul teachers retirement plan		8.5	8.5
Minneapolis Police Relief Association		6.0	6.0
Fairmont Police Relief Association		5.0	5.0
Minneapolis Fire Department Relief Association		6.0	6.0
Virginia Fire Department Relief Association		5.0	5.0
Bloomington Fire Department Relief Association		6.0	6.0
local monthly benefit volunteer firefighters relief associations		5.0	5.0

(b) The actuarial valuation must use the applicable following single rate future salary
increase assumption, the applicable following modified single rate future salary increase
assumption, or the applicable following graded rate future salary increase assumption:

(1) single rate future salary increase assumption

	future salary
plan	increase assumption

legislators retirement plan		5.0%
elective state officers retirement plan		5.0
judges retirement plan		5.0
Minneapolis Police Relief Association		4.0
Fairmont Police Relief Association		3.5
Minneapolis Fire Department Relief Association		4.0
Virginia Fire Department Relief Association		3.5
Bloomington Fire Department Relief Association		4.0

(2) modified single rate future salary increase assumption

		future salary
plan		increase assumption
Minneapolis employees retirement plan		the prior calendar year amount increased first by 1.0198 percent to prior fiscal year date and then increased by 4.0 percent annually for each future year

(3) select and ultimate future salary increase assumption or graded rate future salary
increase assumption

	future salary
plan	increase assumption
general state employees retirement plan	select calculation and assumption A
correctional state employees retirement plan	assumption H
State Patrol retirement plan	assumption H
general public employees retirement plan	select calculation and assumption B
public employees police and fire fund retirement plan	assumption C
local government correctional service retirement plan	assumption H
new text begin postsentencing officers and emergency dispatchers retirement plan new text end	new text begin assumption H new text end
teachers retirement plan	assumption D
Duluth teachers retirement plan	assumption E
Minneapolis teachers retirement plan	assumption F
St. Paul teachers retirement plan	assumption G

The select calculation is: during the ten-year select period, a designated percent is
multiplied by the result of ten minus T, where T is the number of completed years
of service, and is added to the applicable future salary increase assumption. The
designated percent is 0.2 percent for the correctional state employees retirement
plan, the State Patrol retirement plan, the public employees police and fire plan,
deleted text begin and deleted text end the local government correctional service plan new text begin , and the postsentencing officers
and emergency dispatchers retirement plan new text end ; 0.3 percent for the general state
employees retirement plan, the general public employees retirement plan, the
teachers retirement plan, the Duluth Teachers Retirement Fund Association, and the
St. Paul Teachers Retirement Fund Association; and 0.4 percent for the Minneapolis
Teachers Retirement Fund Association.

The ultimate future salary increase assumption is:

age	A	B	C	D	E	F	G	H
16	6.95%	6.95%	11.50%	8.20%	8.00%	6.50%	6.90%	7.7500
17	6.90	6.90	11.50	8.15	8.00	6.50	6.90	7.7500
18	6.85	6.85	11.50	8.10	8.00	6.50	6.90	7.7500
19	6.80	6.80	11.50	8.05	8.00	6.50	6.90	7.7500
20	6.75	6.40	11.50	6.00	6.90	6.50	6.90	7.7500
21	6.75	6.40	11.50	6.00	6.90	6.50	6.90	7.1454
22	6.75	6.40	11.00	6.00	6.90	6.50	6.90	7.0725
23	6.75	6.40	10.50	6.00	6.85	6.50	6.85	7.0544
24	6.75	6.40	10.00	6.00	6.80	6.50	6.80	7.0363
25	6.75	6.40	9.50	6.00	6.75	6.50	6.75	7.0000
26	6.75	6.36	9.20	6.00	6.70	6.50	6.70	7.0000
27	6.75	6.32	8.90	6.00	6.65	6.50	6.65	7.0000
28	6.75	6.28	8.60	6.00	6.60	6.50	6.60	7.0000
29	6.75	6.24	8.30	6.00	6.55	6.50	6.55	7.0000
30	6.75	6.20	8.00	6.00	6.50	6.50	6.50	7.0000
31	6.75	6.16	7.80	6.00	6.45	6.50	6.45	7.0000
32	6.75	6.12	7.60	6.00	6.40	6.50	6.40	7.0000
33	6.75	6.08	7.40	6.00	6.35	6.50	6.35	7.0000
34	6.75	6.04	7.20	6.00	6.30	6.50	6.30	7.0000
35	6.75	6.00	7.00	6.00	6.25	6.50	6.25	7.0000
36	6.75	5.96	6.80	6.00	6.20	6.50	6.20	6.9019
37	6.75	5.92	6.60	6.00	6.15	6.50	6.15	6.8074
38	6.75	5.88	6.40	5.90	6.10	6.50	6.10	6.7125
39	6.75	5.84	6.20	5.80	6.05	6.50	6.05	6.6054
40	6.75	5.80	6.00	5.70	6.00	6.50	6.00	6.5000
41	6.75	5.76	5.90	5.60	5.90	6.50	5.95	6.3540
42	6.75	5.72	5.80	5.50	5.80	6.50	5.90	6.2087
43	6.65	5.68	5.70	5.40	5.70	6.50	5.85	6.0622
44	6.55	5.64	5.60	5.30	5.60	6.50	5.80	5.9048
45	6.45	5.60	5.50	5.20	5.50	6.50	5.75	5.7500
46	6.35	5.56	5.45	5.10	5.40	6.40	5.70	5.6940
47	6.25	5.52	5.40	5.00	5.30	6.30	5.65	5.6375
48	6.15	5.48	5.35	5.00	5.20	6.20	5.60	5.5822
49	6.05	5.44	5.30	5.00	5.10	6.10	5.55	5.5404
50	5.95	5.40	5.25	5.00	5.00	6.00	5.50	5.5000
51	5.85	5.36	5.25	5.00	5.00	5.90	5.45	5.4384
52	5.75	5.32	5.25	5.00	5.00	5.80	5.40	5.3776
53	5.65	5.28	5.25	5.00	5.00	5.70	5.35	5.3167
54	5.55	5.24	5.25	5.00	5.00	5.60	5.30	5.2826
55	5.45	5.20	5.25	5.00	5.00	5.50	5.25	5.2500
56	5.35	5.16	5.25	5.00	5.00	5.40	5.20	5.2500
57	5.25	5.12	5.25	5.00	5.00	5.30	5.15	5.2500
58	5.25	5.08	5.25	5.10	5.00	5.20	5.10	5.2500
59	5.25	5.04	5.25	5.20	5.00	5.10	5.05	5.2500
60	5.25	5.00	5.25	5.30	5.00	5.00	5.00	5.2500
61	5.25	5.00	5.25	5.40	5.00	5.00	5.00	5.2500
62	5.25	5.00	5.25	5.50	5.00	5.00	5.00	5.2500
63	5.25	5.00	5.25	5.60	5.00	5.00	5.00	5.2500
64	5.25	5.00	5.25	5.70	5.00	5.00	5.00	5.2500
65	5.25	5.00	5.25	5.70	5.00	5.00	5.00	5.2500
66	5.25	5.00	5.25	5.70	5.00	5.00	5.00	5.2500
67	5.25	5.00	5.25	5.70	5.00	5.00	5.00	5.2500
68	5.25	5.00	5.25	5.70	5.00	5.00	5.00	5.2500
69	5.25	5.00	5.25	5.70	5.00	5.00	5.00	5.2500
70	5.25	5.00	5.25	5.70	5.00	5.00	5.00	5.2500
71	5.25	5.00		5.70

(c) The actuarial valuation must use the applicable following payroll growth
assumption for calculating the amortization requirement for the unfunded actuarial
accrued liability where the amortization retirement is calculated as a level percentage
of an increasing payroll:

	payroll growth
plan	assumption

general state employees retirement plan		5.00%
correctional state employees retirement plan		5.00
State Patrol retirement plan		5.00
legislators retirement plan		5.00
elective state officers retirement plan		5.00
judges retirement plan		5.00
general public employees retirement plan		6.00
public employees police and fire retirement plan		6.00
local government correctional service retirement plan		6.00
new text begin postsentencing officers and emergency dispatchers retirement plan new text end		new text begin 5.00 new text end
teachers retirement plan		5.00
Duluth teachers retirement plan		5.00
Minneapolis teachers retirement plan		5.00
St. Paul teachers retirement plan		5.00

Sec. 8.

Minnesota Statutes 2004, section 356.215, subdivision 11, is amended to read:

Subd. 11.

Amortization contributions.

(a) In addition to the exhibit indicating the
level normal cost, the actuarial valuation must contain an exhibit indicating the additional
annual contribution sufficient to amortize the unfunded actuarial accrued liability. For
funds governed by chapters 3A, 352, 352B, 352C, 353, new text begin 353G, new text end 354, 354A, and 490, the
additional contribution must be calculated on a level percentage of covered payroll basis
by the established date for full funding in effect when the valuation is prepared. For
funds governed by chapter 3A, sections 352.90 through 352.951, chapters 352B, 352C,
sections 353.63 through 353.68, and chapters 353C, new text begin 353G, new text end 354A, and 490, the level
percent additional contribution must be calculated assuming annual payroll growth of 6.5
percent. For funds governed by sections 352.01 through 352.86 and chapter 354, the level
percent additional contribution must be calculated assuming an annual payroll growth of
five percent. For the fund governed by sections 353.01 through 353.46, the level percent
additional contribution must be calculated assuming an annual payroll growth of six
percent. For all other funds, the additional annual contribution must be calculated on a
level annual dollar amount basis.

(b) For any fund other than the Minneapolis Employees Retirement Fund and the
Public Employees Retirement Association general plan, if there has not been a change in
the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a
change in the benefit plan governing annuities and benefits payable from the fund, a
change in the actuarial cost method used in calculating the actuarial accrued liability of all
or a portion of the fund, or a combination of the three, which change or changes by itself
or by themselves without inclusion of any other items of increase or decrease produce a
net increase in the unfunded actuarial accrued liability of the fund, the established date for
full funding is the first actuarial valuation date occurring after June 1, 2020.

(c) For any fund or plan other than the Minneapolis Employees Retirement Fund and
the Public Employees Retirement Association general plan, if there has been a change in
any or all of the actuarial assumptions used for calculating the actuarial accrued liability
of the fund, a change in the benefit plan governing annuities and benefits payable from
the fund, a change in the actuarial cost method used in calculating the actuarial accrued
liability of all or a portion of the fund, or a combination of the three, and the change or
changes, by itself or by themselves and without inclusion of any other items of increase or
decrease, produce a net increase in the unfunded actuarial accrued liability in the fund, the
established date for full funding must be determined using the following procedure:

(i) the unfunded actuarial accrued liability of the fund must be determined in
accordance with the plan provisions governing annuities and retirement benefits and the
actuarial assumptions in effect before an applicable change;

(ii) the level annual dollar contribution or level percentage, whichever is applicable,
needed to amortize the unfunded actuarial accrued liability amount determined under item
(i) by the established date for full funding in effect before the change must be calculated
using the interest assumption specified in subdivision 8 in effect before the change;

(iii) the unfunded actuarial accrued liability of the fund must be determined in
accordance with any new plan provisions governing annuities and benefits payable from
the fund and any new actuarial assumptions and the remaining plan provisions governing
annuities and benefits payable from the fund and actuarial assumptions in effect before
the change;

(iv) the level annual dollar contribution or level percentage, whichever is applicable,
needed to amortize the difference between the unfunded actuarial accrued liability amount
calculated under item (i) and the unfunded actuarial accrued liability amount calculated
under item (iii) over a period of 30 years from the end of the plan year in which the
applicable change is effective must be calculated using the applicable interest assumption
specified in subdivision 8 in effect after any applicable change;

(v) the level annual dollar or level percentage amortization contribution under item
(iv) must be added to the level annual dollar amortization contribution or level percentage
calculated under item (ii);

(vi) the period in which the unfunded actuarial accrued liability amount determined
in item (iii) is amortized by the total level annual dollar or level percentage amortization
contribution computed under item (v) must be calculated using the interest assumption
specified in subdivision 8 in effect after any applicable change, rounded to the nearest
integral number of years, but not to exceed 30 years from the end of the plan year in
which the determination of the established date for full funding using the procedure set
forth in this clause is made and not to be less than the period of years beginning in the
plan year in which the determination of the established date for full funding using the
procedure set forth in this clause is made and ending by the date for full funding in effect
before the change; and

(vii) the period determined under item (vi) must be added to the date as of which
the actuarial valuation was prepared and the date obtained is the new established date
for full funding.

(d) For the Minneapolis Employees Retirement Fund, the established date for full
funding is June 30, 2020.

(e) For the general employees retirement plan of the Public Employees Retirement
Association, the established date for full funding is June 30, 2031.

(f) For the retirement plans for which the annual actuarial valuation indicates
an excess of valuation assets over the actuarial accrued liability, the valuation assets in
excess of the actuarial accrued liability must be recognized as a reduction in the current
contribution requirements by an amount equal to the amortization of the excess expressed
as a level percentage of pay over a 30-year period beginning anew with each annual
actuarial valuation of the plan.

Sec. 9.

Minnesota Statutes 2004, section 356.30, subdivision 3, is amended to read:

Subd. 3.

Covered plans.

This section applies to the following retirement plans:

(1) the general state employees retirement plan of the Minnesota State Retirement
System, established under chapter 352;

(2) the correctional state employees retirement plan of the Minnesota State
Retirement System, established under chapter 352;

(3) the unclassified employees retirement program, established under chapter 352D;

(4) the State Patrol retirement plan, established under chapter 352B;

(5) the legislators retirement plan, established under chapter 3A;

(6) the elective state officers' retirement plan, established under chapter 352C;

(7) the general employees retirement plan of the Public Employees Retirement
Association, established under chapter 353;

(8) the public employees police and fire retirement plan of the Public Employees
Retirement Association, established under chapter 353;

(9) the local government correctional service retirement plan of the Public
Employees Retirement Association, established under chapter 353E;

(10) the Teachers Retirement Association, established under chapter 354;

(11) the Minneapolis Employees Retirement Fund, established under chapter 422A;

(12) the Minneapolis Teachers Retirement Fund Association, established under
chapter 354A;

(13) the St. Paul Teachers Retirement Fund Association, established under chapter
354A;

(14) the Duluth Teachers Retirement Fund Association, established under chapter
354A; deleted text begin and
deleted text end

(15) the judges' retirement fund, established by sections 490.121 to 490.132 new text begin ; and
new text end

new text begin (16) the postsentencing officers and emergency dispatchers retirement plan
established under chapter 353G new text end .

Sec. 10.

Minnesota Statutes 2004, section 356.302, subdivision 7, is amended to read:

Subd. 7.

Covered retirement plans.

This section applies to the following
retirement plans:

(1) the general state employees retirement plan of the Minnesota State Retirement
System, established by chapter 352;

(2) the unclassified state employees retirement program of the Minnesota State
Retirement System, established by chapter 352D;

(3) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353;

(4) the Teachers Retirement Association, established by chapter 354;

(5) the Duluth Teachers Retirement Fund Association, established by chapter 354A;

(6) the Minneapolis Teachers Retirement Fund Association, established by chapter
354A;

(7) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;

(8) the Minneapolis Employees Retirement Fund, established by chapter 422A;

(9) the state correctional employees retirement plan of the Minnesota State
Retirement System, established by chapter 352;

(10) the State Patrol retirement plan, established by chapter 352B;

(11) the public employees police and fire plan of the Public Employees Retirement
Association, established by chapter 353;

(12) the local government correctional service retirement plan of the Public
Employees Retirement Association, established by chapter 353E; deleted text begin and
deleted text end

(13) the judges' retirement plan, established by sections 490.121 to 490.132 new text begin ; and
new text end

new text begin (14) the postsentencing officers and emergency dispatchers retirement plan
established under chapter 353G new text end .

Sec. 11.

Minnesota Statutes 2004, section 356.303, subdivision 4, is amended to read:

Subd. 4.

Covered retirement plans.

This section applies to the following
retirement plans:

(1) the legislators retirement plan, established by chapter 3A;

(2) the general state employees retirement plan of the Minnesota State Retirement
System, established by chapter 352;

(3) the correctional state employees retirement plan of the Minnesota State
Retirement System, established by chapter 352;

(4) the State Patrol retirement plan, established by chapter 352B;

(5) the elective state officers retirement plan, established by chapter 352C;

(6) the unclassified state employees retirement program, established by chapter
352D;

(7) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353;

(8) the public employees police and fire plan of the Public Employees Retirement
Association, established by chapter 353;

(9) the local government correctional service retirement plan of the Public
Employees Retirement Association, established by chapter 353E;

(10) the Teachers Retirement Association, established by chapter 354;

(11) the Duluth Teachers Retirement Fund Association, established by chapter 354A;

(12) the Minneapolis Teachers Retirement Fund Association, established by chapter
354A;

(13) the St. Paul Teachers Retirement Fund Association, established by chapter
354A;

(14) the Minneapolis Employees Retirement Fund, established by chapter 422A; deleted text begin and
deleted text end

(15) the judges' retirement fund, established by sections 490.121 to 490.132 new text begin ; and
new text end

new text begin (16) the postsentencing officers and emergency dispatchers retirement plan
established under chapter 353G new text end .

Sec. 12.

Minnesota Statutes 2004, section 356.315, is amended by adding a subdivision
to read:

new text begin Subd. 5b. new text end

new text begin Postsentencing officers and emergency dispatchers. new text end

new text begin The applicable
benefit accrual rate is 1.9 percent.
new text end

Sec. 13.

Minnesota Statutes 2004, section 356.465, subdivision 3, is amended to read:

Subd. 3.

Covered retirement plans.

The provisions of this section apply to the
following retirement plans:

(1) the general state employees retirement plan of the Minnesota State Retirement
System established under chapter 352;

(2) the correctional state employees retirement plan of the Minnesota State
Retirement System established under chapter 352;

(3) the State Patrol retirement plan established under chapter 352B;

(4) the legislators retirement plan established under chapter 3A;

(5) the judges retirement plan established under chapter 490;

(6) the general employees retirement plan of the Public Employees Retirement
Association established under chapter 353;

(7) the public employees police and fire plan of the Public Employees Retirement
Association established under chapter 353;

(8) the teachers retirement plan established under chapter 354;

(9) the Duluth Teachers Retirement Fund Association established under chapter
354A;

(10) the St. Paul Teachers Retirement Fund Association established under chapter
354A;

(11) the Minneapolis Teachers Retirement Fund Association established under
chapter 354A;

(12) the Minneapolis employees retirement plan established under chapter 422A;

(13) the Minneapolis Firefighters Relief Association established under chapter 423C;

(14) the Minneapolis Police Relief Association established under chapter 423B; deleted text begin and
deleted text end

(15) the local government correctional service retirement plan of the Public
Employees Retirement Association established under chapter 353E new text begin ; and
new text end

new text begin (16) the postsentencing officers and emergency dispatchers retirement plan
established under chapter 353G new text end .

Sec. 14. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 13 are effective July 1, 2007.
new text end

ARTICLE 3

ACTUARIAL COST ESTIMATE; FUNDING OF STUDY

Section 1. new text begin ACTUARIAL COST ESTIMATE.
new text end

new text begin (a) Under the direction of the Legislative Commission on Pensions and Retirement,
the consulting actuary retained by the commission shall prepare an actuarial cost estimate
of the proposed postsentencing officers and emergency dispatchers retirement plan.
new text end

new text begin (b) The actuarial cost estimate must be prepared based on the plan demographic
information assembled by the executive director of the Minnesota State Retirement
System and by the executive director of the Public Employees Retirement Association.
The executive directors shall obtain preliminary plan membership certifications of
the applicable postsentencing officers and emergency dispatchers by July 1, 2006,
and shall certify the necessary demographic data in computer-readable format to the
commission-retained actuary on or before September 1, 2006.
new text end

new text begin (c) The actuarial cost estimate must be transmitted to the executive director of
the Legislative Commission on Pensions and Retirement, the director of the Legislative
Reference Library, the commissioner of corrections, the chief of the State Patrol, the
executive director of the Public Employees Retirement Association, the executive director
of the Association of Minnesota Counties, and the executive director of the League of
Minnesota Cities on or before February 1, 2007.
new text end

new text begin (d) The director of the Legislative Reference Library shall make the results of the
actuarial cost estimate available on the Legislative Reference Library's Web site.
new text end

new text begin (e) The executive director of the Legislative Commission on Pensions and
Retirement shall take the steps to amend any contract with the commission-retained
actuary to accommodate this project.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the general fund to the executive director of the
Legislative Commission on Pensions and Retirement to fund the actuarial cost estimate
required under section 1. The money is available until expended.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective the day following final enactment.
new text end