HF 599

as introduced - 89th Legislature (2015 - 2016) Posted on 02/05/2015 01:50pm

A bill for an act
relating to retirement; establishing a voluntary statewide monthly benefit
volunteer firefighter retirement plan to permit transfers of local monthly
benefit volunteer firefighters relief association plan administration to the Public
Employees Retirement Association; amending Minnesota Statutes 2014,
sections 11A.17, subdivision 2; 353G.01, subdivisions 6, 7, 11, 12, by adding
subdivisions; 353G.02; 353G.03; 353G.04; 353G.05; 353G.06; 353G.07;
353G.08; 353G.09; 353G.10; 353G.11; 353G.115; 353G.12, subdivision 2,
by adding a subdivision; 353G.13; 353G.14; 353G.15; 353G.16; 356.215,
subdivision 8; proposing coding for new law in Minnesota Statutes, chapter 353G.

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

Section 1.

Minnesota Statutes 2014, section 11A.17, subdivision 2, is amended to read:

Subd. 2.

Assets.

(a) The assets of the supplemental investment fund consist of the
money certified and transmitted to the state board from the participating public retirement
plans and funds and from the voluntary statewide deleted text begin lump-sum deleted text end volunteer firefighter
retirement plan under section 353G.08.

(b) With the exception of the assets of the voluntary statewide deleted text begin lump-sum deleted text end volunteer
firefighter retirement fund, the assets must be used to purchase investment shares in
the investment accounts as specified by the plan or fund. The assets of the voluntary
statewide deleted text begin lump-sum deleted text end volunteer firefighter retirement fund must be invested in the volunteer
firefighter account.

(c) These accounts must be valued at least on a monthly basis but may be valued
more frequently as determined by the State Board of Investment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 2.

Minnesota Statutes 2014, section 353G.01, subdivision 6, is amended to read:

Subd. 6.

Fund.

"Fund" means the voluntary statewide deleted text begin lump-sum deleted text end volunteer
firefighter retirement fund established under section 353G.02, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 3.

Minnesota Statutes 2014, section 353G.01, subdivision 7, is amended to read:

Subd. 7.

Good time service credit.

"Good time service credit" means the length of
service credit for an active firefighter that is reported by the applicable fire chief based
on the minimum firefighter activity standards of the fire department. The credit may be
deleted text begin recognized deleted text end new text begin reported new text end on an annual or monthly basis.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 4.

Minnesota Statutes 2014, section 353G.01, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Lump-sum account. new text end

new text begin "Lump-sum account" means that portion of the
retirement fund that contains the assets applicable to the lump-sum retirement division.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 5.

Minnesota Statutes 2014, section 353G.01, is amended by adding a subdivision
to read:

new text begin Subd. 7b. new text end

new text begin Lump-sum retirement division. new text end

new text begin "Lump-sum retirement division" means
the division of the plan governed by section 353G.11.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 6.

Minnesota Statutes 2014, section 353G.01, is amended by adding a subdivision
to read:

new text begin Subd. 8a. new text end

new text begin Monthly benefit account. new text end

new text begin "Monthly benefit account" means that portion
of the retirement fund that contains the assets applicable to the monthly benefit retirement
division.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 7.

Minnesota Statutes 2014, section 353G.01, is amended by adding a subdivision
to read:

new text begin Subd. 8b. new text end

new text begin Monthly benefit retirement division. new text end

new text begin "Monthly benefit retirement
division" means the division of the plan governed by section 353G.113.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 8.

Minnesota Statutes 2014, section 353G.01, subdivision 11, is amended to read:

Subd. 11.

Retirement fund.

"Retirement fund" means the voluntary statewide
deleted text begin lump-sum deleted text end volunteer firefighter retirement fund established under section 353G.02,
subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 9.

Minnesota Statutes 2014, section 353G.01, subdivision 12, is amended to read:

Subd. 12.

Retirement plan.

"Retirement plan" means the retirement plan new text begin , either
the lump-sum retirement division or the monthly benefit retirement division, new text end established
by this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 10.

Minnesota Statutes 2014, section 353G.02, is amended to read:

353G.02 PLAN AND FUND CREATION.

Subdivision 1.

Retirement plan.

The voluntary statewide deleted text begin lump-sum deleted text end volunteer
firefighter retirement plan new text begin , consisting of a lump-sum retirement division and a monthly
benefit retirement division, new text end is created.

Subd. 2.

Administration.

The policy-making, management, and administrative
functions related to the voluntary statewide deleted text begin lump-sum deleted text end volunteer firefighter retirement
plan and fund are vested in the board of trustees and the executive director of the Public
Employees Retirement Association. Their duties, authority, and responsibilities are as
provided in section 353.03. Fiduciary activities of the plan and fund must be undertaken
in a manner consistent with chapter 356A.

Subd. 3.

Retirement fund.

(a) The voluntary statewide deleted text begin lump-sum deleted text end volunteer
firefighter retirement fund new text begin , consisting of a lump-sum account and a monthly benefit
account, new text end is created. The fund contains the assets attributable to the voluntary statewide
deleted text begin lump-sum deleted text end volunteer firefighter retirement plan.

(b) The State Board of Investment shall invest those portions of the retirement
fund not required for immediate purposes in the voluntary statewide lump-sum volunteer
firefighter retirement plan in the statewide deleted text begin lump-sum deleted text end volunteer firefighter account of the
Minnesota supplemental investment fund under section 11A.17.

(c) The commissioner of management and budget is the ex officio treasurer of the
voluntary statewide deleted text begin lump-sum deleted text end volunteer firefighter retirement fund. The commissioner of
management and budget's general bond to the state covers all liability for actions taken as
the treasurer of the retirement fund.

(d) The revenues of the retirement plan beyond investment returns are governed by
section 353G.08 and must be deposited in the retirement fund. The disbursements of the
retirement plan are governed by section 353G.08. The commissioner of management and
budget shall transmit a detailed statement showing all credits to and disbursements from
the retirement fund to the executive director monthly.

Subd. 4.

Audit; actuarial valuation.

(a) The legislative auditor shall periodically
audit the voluntary statewide deleted text begin lump-sum deleted text end volunteer firefighter retirement fund.

(b) An actuarial valuation of the new text begin lump-sum retirement division of the new text end voluntary
statewide deleted text begin lump-sum deleted text end volunteer firefighter retirement plan may be performed periodically as
determined to be appropriate or useful by the board. new text begin An actuarial valuation of the monthly
benefit retirement division of the voluntary statewide volunteer firefighter retirement plan
must be performed as frequently as required by government sector generally accepted
accounting standards. new text end An actuarial valuation must be performed by the approved
actuary retained under section 356.214 and must conform with section 356.215 and the
standards for actuarial work. An actuarial valuation must contain sufficient detail for each
participating employing entity to ascertain the actuarial condition of its account in the
fund and the contribution requirement towards its account.

Subd. 5.

Legal advisor; attorney general.

(a) The legal advisor of the board
and the executive director with respect to the voluntary statewide deleted text begin lump-sum deleted text end volunteer
firefighter retirement plan is the attorney general.

(b) The board may sue, petition, be sued, or be petitioned under this chapter with
respect to the plan or the fund in the name of the board.

(c) The attorney general shall represent the board in all actions by the board or
against the board with respect to the plan or the fund.

(d) Venue of all actions related to the plan or fund is in the court for the first judicial
district unless the action is an appeal to the Court of Appeals under section 356.96.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 11.

Minnesota Statutes 2014, section 353G.03, is amended to read:

353G.03 VOLUNTARY STATEWIDE deleted text begin LUMP-SUM deleted text end VOLUNTEER
FIREFIGHTER RETIREMENT PLAN ADVISORY BOARD.

Subdivision 1.

Establishment.

A Voluntary Statewide deleted text begin Lump-Sum deleted text end Volunteer
Firefighter Retirement Plan Advisory Board is created.

Subd. 2.

Function; purpose.

The advisory board shall new text begin meet periodically to new text end provide
advice to the board of trustees of the Public Employees Retirement Association about the
retirement coverage needs of volunteer firefighters who are members of the new text begin retirement
new text end plan and about the legislative and administrative changes that would assist the retirement
plan in accommodating volunteer firefighters who are not members of the new text begin retirement new text end plan.

Subd. 3.

Composition.

(a) The advisory board consists of deleted text begin seven deleted text end new text begin eight new text end members.

(b) The advisory board members are:

(1) one representative of Minnesota townships, appointed by the Minnesota
Association of Townships;

(2) two representatives of Minnesota cities, appointed by the League of Minnesota
Cities;

(3) one representative of Minnesota fire chiefs, who is a fire chief, appointed by the
Minnesota State Fire Chiefs Association;

(4) deleted text begin two deleted text end new text begin three new text end representatives of Minnesota volunteer firefighters, new text begin all new text end who are active
volunteer firefighters, new text begin two of whom are covered by the lump-sum retirement division and
one of whom is covered by the monthly benefit retirement division, new text end appointed by the
Minnesota State Fire Departments Association; and

(5) one representative of the Office of the State Auditor, designated by the state
auditor.

Subd. 4.

Term.

(a) deleted text begin The initial terms on the advisory board for the Minnesota
townships representative and the Minnesota fire chiefs representative are one year. The
initial terms on the advisory board for one of the Minnesota cities representatives and one
of the Minnesota active volunteer firefighter representatives are two years. The initial
terms on the advisory board for the other Minnesota cities representative and the other
Minnesota active volunteer firefighter representative are three years. deleted text end The term for the
Office of the State Auditor representative is determined by the state auditor.

(b) deleted text begin Subsequent deleted text end Terms on the advisory board other than the Office of the State
Auditor representative are three years.

Subd. 5.

Compensation of advisory board.

The compensation of members of the
advisory board new text begin , new text end other than the Office of the State Auditor representative new text begin , new text end is governed by
section 15.0575, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin (a) The amendments to subdivisions 1, 2, 4, and 5 are
effective July 1, 2015.
new text end

new text begin (b) The amendment to subdivision 3 is effective on the July 1 next following the
date on which one or more volunteer firefighters relief associations providing monthly
service pensions in whole or in part transfers its administration to the Public Employees
Retirement Association under Minnesota Statutes, chapter 353G.
new text end

Sec. 12.

Minnesota Statutes 2014, section 353G.04, is amended to read:

353G.04 INFORMATION FROM MUNICIPALITIES AND FIRE
DEPARTMENTS.

The chief executive officers of municipalities and fire departments with volunteer
firefighters covered by the voluntary deleted text begin lump-sum deleted text end new text begin statewide new text end volunteer firefighter retirement
plan shall provide all relevant information and records requested by the board, the
executive director, and the State Board of Investment as required to perform their duties.

Sec. 13.

Minnesota Statutes 2014, section 353G.05, is amended to read:

353G.05 PLAN COVERAGE ELECTION.

Subdivision 1.

Coverage.

Any municipality or independent nonprofit firefighting
corporation may elect to have its volunteer firefighters covered by the new text begin lump-sum
retirement division or the monthly benefit retirement division of the new text end retirement plan new text begin ,
whichever applies new text end .

Subd. 2.

Election of coverage new text begin ; lump sum new text end .

(a) The process for electing coverage of
volunteer firefighters by the new text begin lump-sum new text end retirement deleted text begin plan deleted text end new text begin division new text end is initiated by a request
to the executive director for a cost analysis of the prospective retirement coverage new text begin under
the lump-sum retirement division new text end .

(b) If the volunteer firefighters are currently covered by a new text begin lump-sum volunteer
firefighters relief association or a defined contribution new text end volunteer firefighters' relief
association governed by chapter 424A, the cost analysis of the prospective retirement
coverage must be requested jointly by the secretary of the volunteer firefighters relief
association, following approval of the request by the board of the volunteer firefighters
relief association, and the chief administrative officer of the entity associated with the relief
association, following approval of the request by the governing body of the entity associated
with the relief association. If the relief association is associated with more than one
entity, the chief administrative officer of each associated entity must execute the request.
If the volunteer firefighters are not currently covered by a volunteer firefighters relief
association, the cost analysis of the prospective retirement coverage must be requested by
the chief administrative officer of the entity operating the fire department. The request
must be made in writing and must be made on a form prescribed by the executive director.

(c) The cost analysis of the prospective retirement coverage by the new text begin lump-sum
retirement division of the new text end statewide retirement plan must be based on the service pension
amount under section 353G.11 closest to the service pension amount provided by the
volunteer firefighters relief association if the relief association is a lump-sum defined
benefit plan, or the amount equal to 95 percent of the most current average account
balance per relief association member if the relief association is a defined contribution
plan, or to the lowest service pension amount under section 353G.11 if there is no
volunteer firefighters relief association, rounded up, and any other service pension amount
designated by the requester or requesters. The cost analysis must be prepared using a
mathematical procedure certified as accurate by an approved actuary retained by the
Public Employees Retirement Association.

(d) If a cost analysis is requested and a volunteer firefighters' relief association exists
that has filed the information required under section 69.051 in a timely fashion, upon
request by the executive director, the state auditor shall provide the most recent data
available on the financial condition of the volunteer firefighters relief association, the most
recent firefighter demographic data available, and a copy of the current relief association
bylaws. If a cost analysis is requested, but no volunteer firefighters relief association
exists, the chief administrative officer of the entity operating the fire department shall
provide the demographic information on the volunteer firefighters serving as members
of the fire department requested by the executive director.

deleted text begin (e) If a cost analysis is requested, the executive director of the State Board of
Investment shall review the investment portfolio of the relief association, if applicable,
for compliance with the applicable provisions of chapter 11A and for appropriateness
for retention under the established investment objectives and investment policies of the
State Board of Investment. If the prospective retirement coverage change is approved
under paragraph (f), the State Board of Investment may require that the relief association
deleted text end deleted text begin liquidate any investment security or other asset which the executive director of the State
Board of Investment has determined to be an ineligible or inappropriate investment for
retention by the State Board of Investment. The security or asset liquidation must occur
before the effective date of the transfer of retirement plan coverage. If requested to do so by
the chief administrative officer of the relief association, the executive director of the State
Board of Investment shall provide advice about the best means to conduct the liquidation.
deleted text end

deleted text begin (f) Upon receipt of the cost analysis, the governing body of the municipality
or independent nonprofit firefighting corporation associated with the fire department
shall either approve or disapprove the retirement coverage change within 120 days. If
the retirement coverage change is not acted upon within 120 days, it is deemed to be
disapproved. If the retirement coverage change is approved by the applicable governing
body, coverage by the voluntary statewide lump-sum volunteer firefighter retirement plan
is effective on the next following January 1.
deleted text end

new text begin Subd. 3. new text end

new text begin Election of coverage; monthly benefit. new text end

new text begin (a) The process for electing
coverage of volunteer firefighters by the monthly retirement division is initiated by a
request to the executive director for an actuarial cost analysis of the prospective retirement
coverage under the monthly benefit retirement division. This request must be made by
the secretary of the volunteer firefighters relief association and the chief administrative
officer of the entity associated with the relief association, both of which must first obtain
approval of the request from their respective municipal governing body or independent
nonprofit firefighting corporation. The request must be made in writing and must be made
on a form prescribed by the executive director.
new text end

new text begin (b) Coverage by the monthly benefit retirement division may only be elected if
the volunteer firefighters are covered by a monthly benefit volunteer firefighters relief
association governed by chapter 424A.
new text end

new text begin (c) The cost analysis under paragraph (a) must be prepared by the approved actuary
retained by the Public Employees Retirement Association. The cost analysis must be
based on:
new text end

new text begin (1) the service pension and other retirement benefit types and amounts in effect for
the volunteer firefighters relief association as of the date of the request and any other
amount or amounts designated by the requesters, as disclosed in a special actuarial
valuation prepared under sections 356.215 and 356.216; and
new text end

new text begin (2) the standards for actuarial work, and the actuarial assumptions utilized in the
most recent prior actuarial valuation, except that the applicable interest rate actuarial
assumption is six percent.
new text end

new text begin (d) The secretary of the volunteer firefighters relief association making the request
must supply the demographic and financial data necessary for the cost analysis to be
prepared.
new text end

new text begin Subd. 4. new text end

new text begin Invested assets review. new text end

new text begin If a cost analysis is requested under subdivision 2
or 3, the executive director of the State Board of Investment shall review the investment
portfolio of the relief association, if applicable, for compliance with the applicable
provisions of chapter 11A and for appropriateness for retention under the established
investment objectives and investment policies of the State Board of Investment. If the
prospective retirement coverage change is approved under subdivision 5, the State
Board of Investment may require that the relief association liquidate any investment
security or other asset which the executive director of the State Board of Investment has
determined to be an ineligible or inappropriate investment for retention by the State Board
of Investment. The security or asset liquidation must occur before the effective date of
the transfer of retirement plan coverage. If requested to do so by the chief administrative
officer of the relief association, the executive director of the State Board of Investment
shall provide advice about the best means to conduct the liquidation.
new text end

new text begin Subd. 5. new text end

new text begin Finalization; coverage transfer. new text end

new text begin Upon receipt of the cost analysis
requested under subdivision 2 or 3, the governing body of the municipality or independent
nonprofit firefighting corporation associated with the fire department shall either approve
or disapprove the retirement coverage change within 120 days. If the retirement coverage
change is not acted upon within 120 days, it is deemed to be disapproved. If the retirement
coverage change is approved by the applicable governing body, coverage by the voluntary
statewide volunteer firefighter retirement plan is effective on the January 1 next following
the approval date.
new text end

Sec. 14.

Minnesota Statutes 2014, section 353G.06, is amended to read:

353G.06 DISESTABLISHMENT OF PRIOR VOLUNTEER FIREFIGHTERS
RELIEF ASSOCIATION SPECIAL FUND UPON RETIREMENT COVERAGE
CHANGE.

Subdivision 1.

Special fund disestablishment.

On the deleted text begin date deleted text end new text begin December 31
new text end immediately prior to the effective date of the coverage change, the special fund of the
applicable volunteer firefighters relief association, if one exists, ceases to exist as a
pension fund of the association and legal title to the assets of the special fund transfers
to the State Board of Investment, with the new text begin undivided new text end beneficial title to the assets of the
special fund remaining in the applicable volunteer firefighters new text begin as a group new text end .

Subd. 2.

Other relief association changes.

In addition to the transfer and
disestablishment of the special fund under subdivision 1, notwithstanding any provisions
of chapter 424A or 424B to the contrary, upon the effective date of the change in
volunteer firefighter retirement coverage, if the relief association membership elects to
retain the relief association new text begin as a fraternal organization new text end after the benefit coverage election,
the following changes must be implemented with respect to the applicable volunteer
firefighters relief association:

(1) the relief association board of trustees membership is reduced to five, comprised
of the fire chief of the fire department and four trustees elected by and from the relief
association membership;

(2) the relief association may only maintain a general fund, which continues to
be governed by section 424A.06;

(3) the relief association is not authorized to receive the proceeds of any state aid or
to receive any municipal funds; and

(4) the relief association may not pay any service pension or benefit that was not
authorized as a general fund disbursement under the articles of incorporation or bylaws of
the relief association in effect new text begin immediately new text end prior to the plan coverage election process.

Subd. 3.

Successor in interest.

Upon the disestablishment of the special fund of
the volunteer firefighters relief association under this section, the voluntary statewide
deleted text begin lump-sum deleted text end volunteer firefighter retirement plan is the successor in interest of the special
fund of the volunteer firefighters relief association for all claims against the special fund
other than a claim against the special fund, the volunteer firefighters relief association,
the municipality, the fire department, or any person connected with the volunteer
firefighters relief association in a fiduciary capacity under chapter 356A or common law
that was based on any act or acts which were not performed in good faith and which
constituted a breach of a fiduciary obligation. As the successor in interest of the special
fund of the volunteer firefighters relief association, the voluntary statewide deleted text begin lump-sum deleted text end
volunteer firefighter retirement plan may assert any applicable defense in any judicial
proceeding which the board of trustees of the volunteer firefighters relief association or the
municipality would have been entitled to assert.

Sec. 15.

Minnesota Statutes 2014, section 353G.07, is amended to read:

353G.07 CERTIFICATION OF GOOD TIME SERVICE CREDIT.

(a) Annually, by March 31, the fire chief of the fire department with firefighters who
are active members of new text begin either new text end the new text begin lump-sum new text end retirement deleted text begin plan deleted text end new text begin division or the monthly benefit
retirement division new text end shall certify to the executive director the good time service credit for the
previous calendar year of each firefighter rendering active service with the fire department.

(b) The fire chief shall provide to each firefighter rendering active service with
the fire department notification of the amount of good time service credit rendered by
the firefighter for the calendar year. The good time service credit notification must be
provided to the firefighter 60 days before its certification to the executive director of the
Public Employees Retirement Association, along with an indication of the process for the
firefighter to challenge the fire chief's determination of good time service credit. If the
good time service credit amount is challenged in a timely fashion, the fire chief shall hold
a hearing on the challenge, accept and consider any additional pertinent information,
and make a final determination of good time service credit. The final determination of
good time service credit by the fire chief is not reviewable by the executive director of
the Public Employees Retirement Association or by the board of trustees of the Public
Employees Retirement Association.

(c) The good time service credit certification is an official public document. If a
false good time service credit certification is filed or if false information regarding good
time service credits is provided, section 353.19 applies.

(d) The good time service credit certification must be expressed as a percentage of a
full year of service during which an active firefighter rendered at least the minimum level
and quantity of fire suppression, emergency response, fire prevention, or fire education
duties required by the fire department under the rules and regulations applicable to the
fire department. No more than one year of good time service credit may be certified
for a calendar year.

(e) If a firefighter covered by the retirement plan leaves active firefighting service
to render active military service that is required to be deleted text begin covered deleted text end new text begin governed new text end by the federal
Uniformed Services Employment and Reemployment Rights Act, as amended, the person
must be certified as providing a full year of good time service credit in each year of the
military service, up to the applicable limit of the federal Uniformed Services Employment
and Reemployment Rights Act. If the firefighter does not return from the military service
in compliance with the federal Uniformed Services Employment and Reemployment
Rights Act, the good time service credits applicable to that military service credit period
are forfeited and cancel at the end of the calendar year in which the federal law time
limit occurs.

Sec. 16.

Minnesota Statutes 2014, section 353G.08, is amended to read:

353G.08 RETIREMENT PLAN FUNDING; DISBURSEMENTS.

Subdivision 1.

Annual funding requirements new text begin ; lump-sum retirement division new text end .

(a)
Annually, the executive director shall determine the funding requirements of each account
in the new text begin lump-sum retirement division of the new text end voluntary statewide deleted text begin lump-sum deleted text end volunteer
firefighter retirement plan on or before August 1. The funding requirements deleted text begin as directed deleted text end
new text begin computed new text end under this deleted text begin section, deleted text end new text begin subdivision new text end must be determined using a mathematical
procedure developed and certified as accurate by deleted text begin an deleted text end new text begin the new text end approved actuary retained by the
Public Employees Retirement Association and new text begin must be new text end based on present value factors
using a six percent interest rate, without any decrement assumptions. The funding
requirements must be certified to the entity or entities associated with the fire department
whose active firefighters are covered by the retirement plan.

(b) The overall funding balance of each new text begin lump-sum new text end account for the current calendar
year must be determined in the following manner:

(1) The total accrued liability for all active and deferred members of the account as
of December 31 of the current year must be calculated based on the good time service
credit of active and deferred members as of that date.

(2) The total present assets of the account projected to December 31 of the current
year, including receipts by and disbursements from the account anticipated to occur on or
before December 31, must be calculated. To the extent possible, the market value of assets
must be utilized in making this calculation.

(3) The amount of the total present assets calculated under clause (2) must be
subtracted from the amount of the total accrued liability calculated under clause (1). If the
amount of total present assets exceeds the amount of the total accrued liability, then the
account is considered to have a surplus over full funding. If the amount of the total present
assets is less than the amount of the total accrued liability, then the account is considered
to have a deficit from full funding. If the amount of total present assets is equal to the
amount of the total accrued liability, then the special fund is considered to be fully funded.

(c) The financial requirements of each new text begin lump-sum new text end account for the following calendar
year must be determined in the following manner:

(1) The total accrued liability for all active and deferred members of the account
as of December 31 of the calendar year next following the current calendar year must be
calculated based on the good time service used in the calculation under paragraph (b),
clause (1), increased by one year.

(2) The increase in the total accrued liability of the account for the following calendar
year over the total accrued liability of the account for the current year must be calculated.

(3) The amount of anticipated future administrative expenses of the account must be
calculated by multiplying the dollar amount of the administrative expenses for the most
recent prior calendar year by the factor of 1.035.

(4) If the account is fully funded, the financial requirement of the account for the
following calendar year is the total of the amounts calculated under clauses (2) and (3).

(5) If the account has a deficit from full funding, the financial requirement of the
account for the following calendar year is the total of the amounts calculated under clauses
(2) and (3) plus an amount equal to one-tenth of the amount of the deficit from full
funding of the account.

(6) If the account has a surplus over full funding, the financial requirement of
the account for the following calendar year is the financial requirement of the account
calculated as though the account was fully funded under clause (4) and, if the account has
also had a surplus over full funding during the prior two years, additionally reduced by an
amount equal to one-tenth of the amount of the surplus over full funding of the account.

(d) The required contribution of the entity or entities associated with the fire
department whose active firefighters are covered by the new text begin lump-sum new text end retirement deleted text begin plan deleted text end new text begin division
new text end is the annual financial requirements of the new text begin lump-sum new text end account of the retirement plan under
paragraph (c) reduced by the amount of any fire state aid payable under sections 69.011
to 69.051 new text begin or any police and firefighter supplemental state aid payable under section
423A.022 that is new text end reasonably anticipated to be received by the retirement plan attributable
to the entity or entities during the following calendar year, and an amount of interest on
the assets projected to be received during the following calendar year calculated at the
rate of six percent per annum. The required contribution must be allocated between the
entities if more than one entity is involved. A reasonable amount of anticipated fire state
aid is an amount that does not exceed the fire state aid actually received in the prior year
multiplied by the factor 1.035.

(e) The required contribution calculated in paragraph (d) must be paid to the
retirement plan on or before December 31 of the year for which it was calculated. If
the contribution is not received by the retirement plan by December 31, it is payable
with interest at an annual compound rate of six percent from the date due until the date
payment is received by the retirement plan. If the entity does not pay the full amount of
the required contribution, the executive director shall collect the unpaid amount under
section 353.28, subdivision 6.

new text begin Subd. 1a. new text end

new text begin Annual funding requirements; monthly benefit retirement division.
new text end

new text begin (a) Annually, the executive director shall determine the funding requirements of each
monthly benefit account in the voluntary statewide volunteer firefighter retirement plan on
or before August 1.
new text end

new text begin (b) The executive director must determine the funding requirements of a monthly
benefit account under this subdivision from:
new text end

new text begin (1) the most recent actuarial valuation normal cost, administrative expense, and
amortization results for the account determined by the approved actuary retained by the
retirement association under sections 356.215 and 356.216; and
new text end

new text begin (2) the standards for actuarial work, utilizing a six percent interest rate actuarial
assumption and other actuarial assumptions approved under section 356.215, subdivision
18:
new text end

new text begin (i) with that portion of any unfunded actuarial accrued liability attributable to a benefit
increase to be amortized over a period of 20 years from the date of the benefit change;
new text end

new text begin (ii) with that portion of any unfunded actuarial accrued liability attributable to an
assumption change or an actuarial method change to be amortized over a period of 20
years from the date of the assumption or method change;
new text end

new text begin (iii) with that portion of any unfunded actuarial accrued liability attributable to an
investment loss to be amortized over a period of ten years from the date of investment
loss; and
new text end

new text begin (iv) with the balance of any net unfunded actuarial accrued liability to be amortized
over a period of five years from the date of the actuarial valuation.
new text end

new text begin (c) The required contributions of the entity or entities associated with the fire
department whose active firefighters are covered by the monthly benefit retirement
division are the annual financial requirements of the monthly benefit account of the
retirement plan under paragraph (b) reduced by the amount of any fire state aid payable
under sections 69.011 to 69.051, or any police and firefighter supplemental state aid
payable under section 423A.022, that is reasonably anticipated to be received by the
retirement plan attributable to the entity or entities during the following calendar year.
The required contribution must be allocated between the entities if more than one entity
is involved. A reasonable amount of anticipated fire state aid is an amount that does not
exceed the fire state aid actually received in the prior year multiplied by the factor 1.035.
new text end

new text begin (d) The required contribution calculated in paragraph (c) must be paid to the
retirement plan on or before December 31 of the year for which it was calculated. If
the contribution is not received by the retirement plan by December 31, it is payable
with interest at an annual compound rate of six percent from the date due until the date
payment is received by the retirement plan. If the entity does not pay the full amount of
the required contribution, the executive director shall collect the unpaid amount under
section 353.28, subdivision 6.
new text end

Subd. 2.

Cash flow funding requirement.

If the executive director determines
that deleted text begin an deleted text end new text begin a lump-sum retirement or a monthly benefit retirement new text end account in the voluntary
statewide deleted text begin lump-sum deleted text end volunteer firefighter retirement plan has insufficient assets to meet the
service pensions deleted text begin determined deleted text end new text begin expected to be new text end payable from the account new text begin over the succeeding
two years new text end , the executive director shall certify the amount of the potential service pension
shortfall to the municipality or municipalities and the municipality or municipalities shall
make an additional employer contribution to the account within ten days of the certification.
If more than one municipality is associated with the account, unless the municipalities agree
to new text begin and implement new text end a different allocation, the municipalities shall allocate the additional
employer contribution one-half in proportion to the population of each municipality and
one-half in proportion to the estimated market value of the property of each municipality.

Subd. 2a.

Additional municipal contributions authorized.

(a) At the discretion of
the municipality or the independent nonprofit firefighting corporation associated with a fire
department covered by a voluntary statewide deleted text begin lump-sum deleted text end volunteer firefighter retirement
plan account, the municipality or the corporation may make additional contributions
to the applicable account.

(b) The executive director of the Public Employees Retirement Association
may specify requirements as to the form, timing, and accompanying information for
contributions made under this subdivision.

(c) Any contributions made under this subdivision must be included as total present
assets of the account for the calculation of any subsequent annual funding requirements
for the account under subdivision 1 or new text begin 1a or new text end for the calculation of any cash flow funding
requirement under subdivision 2.

Subd. 3.

Authorized account disbursements.

The assets new text begin of a lump-sum retirement
account or of a monthly benefit retirement account new text end of the retirement fund may only be
disbursed for:

(1) the administrative expenses of the retirement plan;

(2) the investment expenses of the retirement fund;

(3) the service pensions payable under section 353G.10, 353G.11, 353G.14, or
353G.15;

(4) the survivor benefits payable under section 353G.12; and

(5) the disability benefit coverage insurance premiums under section 353G.115.

Sec. 17.

Minnesota Statutes 2014, section 353G.09, is amended to read:

353G.09 RETIREMENT BENEFIT ELIGIBILITY.

Subdivision 1.

Entitlement.

Except as provided in subdivision 3, an active member
of the retirement plan is entitled to a deleted text begin lump-sum deleted text end service pension from the retirement plan
if the person:

(1) has separated from active service with the fire department for at least 30 days;

(2) has attained the age of at least 50 years;

(3) has completed at least five years of good time service credit as a member of the
retirement plan new text begin if the person is a member of the lump-sum retirement division or has
completed at least the minimum number of years of good time service credit as a member
of the retirement plan specified in the retirement benefit plan document attributable to the
applicable fire department if the person is a member of the monthly benefit retirement
division new text end ; and

(4) applies in a manner prescribed by the executive director for the service pension.

Subd. 2.

Vesting schedule; nonforfeitable portion of service pension.

new text begin (a) new text end If an
active member new text begin of the lump-sum retirement division new text end has completed less than 20 years of
good time service credit new text begin as a member of the lump-sum retirement division of the plan new text end , the
person's entitlement new text begin to a service pension new text end is new text begin equal new text end to the nonforfeitable percentage of the
applicable service pension amount, as follows:

	Completed years of good time service credit		Nonforfeitable percentage of the service pension
		5		40 percent
		6		44 percent
		7		48 percent
		8		52 percent
		9		56 percent
		10		60 percent
		11		64 percent
		12		68 percent
		13		72 percent
		14		76 percent
		15		80 percent
		16		84 percent
		17		88 percent
		18		92 percent
		19		96 percent
		deleted text begin 20 and thereafter deleted text end		deleted text begin 100 percent deleted text end

new text begin (b) If an active member of the monthly benefit retirement division has completed less
than 20 years of good time service credit as a member of the monthly benefit retirement
division of the plan, the person's entitlement to a service pension must be governed by the
retirement benefit plan document attributable to the applicable fire department.
new text end

Subd. 3.

Alternative new text begin lump-sum new text end pension eligibility and computation.

(a) An
active member of the new text begin lump-sum retirement division of the new text end retirement plan is entitled to an
alternative lump-sum service pension from the retirement plan if the person:

(1) has separated from active service with the fire department for at least 30 days;

(2) has attained the age of at least 50 years or the age for receipt of a service pension
under the benefit plan of the applicable former volunteer firefighters relief association as
of the date immediately prior to the election of the retirement coverage change, whichever
is later;

(3) has completed at least five years of active service with the fire department and
at least five years in total as a member of the applicable former volunteer firefighters
relief association or of the new text begin lump-sum retirement division of the new text end retirement plan, but has
not rendered at least five years of good time service credit as a member of the new text begin lump-sum
new text end retirement new text begin division of the new text end plan; and

(4) applies in a manner prescribed by the executive director for the service pension.

(b) If retirement coverage prior to statewide retirement plan coverage was provided
by a defined benefit new text begin lump-sum retirement new text end plan volunteer firefighters relief association,
the alternative lump-sum service pension is the service pension amount specified in the
bylaws of the applicable former volunteer firefighters relief association either as of the
date immediately deleted text begin prior to deleted text end new text begin before new text end the election of the retirement coverage change or as of
the date immediately before the termination of firefighting services, whichever is earlier,
multiplied by the total number of years of service as a member of that volunteer firefighters
relief association and as a member of the retirement plan. If retirement coverage deleted text begin prior to deleted text end
new text begin before new text end statewide retirement plan coverage was provided by a defined contribution plan
volunteer firefighters relief association, the alternative lump-sum service pension is an
amount equal to the person's account balance as of the date immediately deleted text begin prior to deleted text end new text begin before
new text end the date on which statewide retirement plan coverage was first provided to the person plus
six percent annual compound interest from that date until the date immediately deleted text begin prior
to deleted text end new text begin before new text end the date of retirement.

Sec. 18.

Minnesota Statutes 2014, section 353G.10, is amended to read:

353G.10 DEFERRED SERVICE PENSION AMOUNT.

A person who was an active member of a fire department covered by new text begin either the
lump-sum retirement division or the monthly benefit retirement division of new text end the retirement
plan who has separated from active firefighting service for at least 30 days and who has
completed at least five years of good time service credit, but has not attained the age of 50
years, is entitled to a deferred service pension on or after attaining the age of 50 years
and applying in a manner specified by the executive director for the service pension. The
service pension payable is the nonforfeitable percentage of the service pension under
section 353G.09, subdivision 2, and is payable without any interest new text begin on or increase in the
service pension new text end over the period of deferral.

Sec. 19.

Minnesota Statutes 2014, section 353G.11, is amended to read:

353G.11 new text begin LUMP-SUM RETIREMENT DIVISION new text end SERVICE PENSION
LEVELS.

Subdivision 1.

Levels new text begin ; lump-sum retirement division new text end .

The new text begin lump-sum retirement
division of the new text end retirement plan provides the following levels of service pension amounts to
be selected at the election of coverage, or, if fully funded, thereafter:

	Level A	$500 per year of good time service credit
	Level B	$600 per year of good time service credit
	Level C	$700 per year of good time service credit
	Level D	$800 per year of good time service credit
	Level E	$900 per year of good time service credit
	Level F	$1,000 per year of good time service credit
	Level G	$1,250 per year of good time service credit
	Level H	$1,500 per year of good time service credit
	Level I	$2,000 per year of good time service credit
	Level J	$2,500 per year of good time service credit
	Level K	$3,000 per year of good time service credit
	Level L	$3,500 per year of good time service credit
	Level M	$4,000 per year of good time service credit
	Level N	$4,500 per year of good time service credit
	Level O	$5,000 per year of good time service credit
	Level P	$5,500 per year of good time service credit
	Level Q	$6,000 per year of good time service credit
	Level R	$6,500 per year of good time service credit
	Level S	$7,000 per year of good time service credit
	Level T	$7,500 per year of good time service credit

Subd. 1a.

Continuation of prior new text begin lump-sum new text end service pension levels.

If a
municipality or independent nonprofit firefighting corporation deleted text begin elects deleted text end new text begin elected new text end to be covered
by the new text begin lump-sum retirement division of the new text end retirement plan deleted text begin prior to deleted text end new text begin before new text end January 1,
2010, and deleted text begin selects deleted text end new text begin selected new text end the $750 per year of good time service credit service pension
amount effective for January 1, 2010, that level continues for the volunteer firefighters of
that municipality or independent nonprofit firefighting corporation until a different service
pension amount is selected under subdivision 2 after January 1, 2010.

Subd. 2.

new text begin Lump-sum retirement division new text end level selection.

At the time of the election
to transfer retirement coverage new text begin to the lump-sum retirement division of the retirement plan new text end ,
or on April 30 thereafter, the governing body or bodies of the entity or entities operating
the fire department whose firefighters are covered by the retirement plan may request
a cost estimate from the executive director of an increase in the service pension level
applicable to the active firefighters of the fire department. Within 90 days of the receipt of
the cost estimate prepared by the executive director using a procedure certified as accurate
by the approved actuary retained by the Public Employees Retirement Association, the
governing body or bodies may approve the service pension level change, effective for the
following calendar year. If not approved in a timely fashion, the service pension level
change is considered to have been disapproved.

Subd. 3.

Supplemental benefit.

The new text begin lump-sum retirement account of the new text end retirement
plan also shall pay a supplemental benefit as provided for in section 424A.10.

Subd. 4.

Ancillary benefits.

new text begin Except as provided in section 353G.115 or 353G.12,
new text end no disability, death, funeral, or other ancillary benefit beyond a service pension or a
survivor benefit is payable from the new text begin lump-sum retirement account of the new text end retirement plan.

Sec. 20.

new text begin [353G.112] MONTHLY BENEFIT RETIREMENT DIVISION SERVICE
PENSION LEVELS.
new text end

new text begin The service pension amount for the firefighters of a fire department covered by
the monthly benefit retirement division of the retirement plan is the amount specified in
the articles of incorporation or bylaws of the applicable former volunteer firefighters
relief association in effect as of the last day before the date on which retirement coverage
transferred to the voluntary statewide volunteer firefighter retirement plan unless modified
as provided in section 353G.121.
new text end

Sec. 21.

Minnesota Statutes 2014, section 353G.115, is amended to read:

353G.115 DISABILITY BENEFIT COVERAGE; AUTHORITY FOR
CASUALTY INSURANCE.

(a) Except as provided in paragraph (b) new text begin or (c) new text end , no disability benefit is payable from
the statewide retirement plan.

(b) If the board approves the arrangement, disability coverage for new text begin the lump-sum
retirement division of the new text end statewide retirement plan members may be provided through
a group disability insurance policy obtained from an insurance company licensed to do
business in this state. The new text begin lump-sum retirement account of the new text end voluntary statewide
deleted text begin lump-sum deleted text end volunteer new text begin firefighter new text end retirement plan is authorized to pay the premium for the
disability insurance authorized by this paragraph. The proportional amount of the total
annual disability insurance premium must be added to the required contribution amount
determined under section 353G.08.

new text begin (c) The disability benefit coverage for the monthly benefit retirement division is the
disability service pension amount specified in the articles of incorporation or bylaws of the
applicable former volunteer firefighters relief association in effect as of the last day before
the date on which retirement coverage transferred to the voluntary statewide volunteer
firefighter retirement plan, subject to all conditions and limitations in the disability service
pension specified therein, unless modified as provided in section 353G.121.
new text end

Sec. 22.

Minnesota Statutes 2014, section 353G.12, subdivision 2, is amended to read:

Subd. 2.

new text begin Lump-sum retirement plan; new text end survivor benefit amount.

The amount of
the survivor benefit new text begin for the lump-sum retirement division new text end is the amount of the new text begin lump-sum
new text end service pension that would have been payable to the member of the new text begin lump-sum new text end retirement
deleted text begin plan deleted text end new text begin division new text end on the date of death if the member had been age 50 or older on that date.

Sec. 23.

Minnesota Statutes 2014, section 353G.12, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Monthly benefit retirement plan; survivor benefit amount. new text end

new text begin The amount
of the survivor benefit for the monthly benefit retirement division is the survivor service
pension amount specified in the articles of incorporation or bylaws of the applicable
former volunteer firefighters relief association in effect as of the last day before the date
on which retirement coverage transferred to the voluntary statewide volunteer firefighter
retirement plan, subject to all conditions and limitations for the benefit specified therein,
unless modified as provided in section 353G.121.
new text end

Sec. 24.

new text begin [353G.121] MONTHLY BENEFIT RETIREMENT DIVISION;
POST-TRANSFER BENEFIT PLAN DOCUMENT MODIFICATIONS.
new text end

new text begin (a) The fire chief of a fire department that has an active membership who are covered
by the monthly benefit retirement division of the statewide retirement plan may initiate the
process of modifying the retirement benefit plan document under this section.
new text end

new text begin (b) The modification procedure is initiated when the applicable fire chief files with
the executive director of the Public Employees Retirement Association a written summary
of the desired benefit plan document modification, the proposed benefit plan document
modification language, and a written request for the preparation of an actuarial cost
estimate for the proposed benefit plan document modification.
new text end

new text begin (c) Upon receipt of the modification request and related documents, the executive
director shall review the language of the proposed benefit plan document modification
and, if a clarification is needed in the submitted language, shall inform the fire chief
of the necessary clarification. Once the proposed benefit plan document modification
language has been clarified by the fire chief and resubmitted to the executive director, the
executive director shall arrange for the approved actuary retained by the Public Employees
Retirement Association to prepare a benefit plan document modification cost estimate
under the applicable provisions of section 356.215 and of the standards for actuarial work
adopted by the Legislative Commission on Pensions and Retirement. Upon completion of
the benefit plan document modification cost estimate, the executive director shall forward
the estimate to the fire chief who requested it and to the chief financial officer of the
municipality or entity with which the fire department is primarily associated.
new text end

new text begin (d) The fire chief, upon receipt of the cost estimate, shall circulate the cost estimate
with the active firefighters in the fire department and shall take reasonable steps to provide
the estimate results to any affected retired members of the fire department and their
beneficiaries. The chief financial officer of the municipality or entity associated with the
fire department shall present the proposed modification language and the cost estimate to
the governing body of the municipality or entity for its consideration at a public hearing
held for that purpose.
new text end

new text begin (e) If the governing body of the municipality or entity approves the modification
language, the chief administrative officer of the municipality or entity shall notify the
executive director of the Public Employees Retirement Association and the state auditor
of that approval. The benefit plan document modification is effective on the January 1
next following the date of filing the approval with the Public Employees Retirement
Association and the state auditor.
new text end

Sec. 25.

Minnesota Statutes 2014, section 353G.13, is amended to read:

353G.13 new text begin LUMP-SUM RETIREMENT DIVISION; new text end PORTABILITY.

Subdivision 1.

Eligibility.

An active firefighter who is a member of the new text begin lump-sum
retirement division of the new text end retirement plan who also renders firefighting service and has
good time service credit in the new text begin lump-sum retirement division of the new text end retirement plan from
another fire department, if the good time service credit in the plan from a combination of
periods totals at least five years, is eligible, upon complying with the other requirements of
section 353G.09, to receive a new text begin lump-sum new text end service pension upon filing an application in the
manner prescribed by the executive director, computed as provided in subdivision 2.

Subd. 2.

Combined service pension computation.

The new text begin lump-sum new text end service pension
payable to a firefighter who qualifies under subdivision 1 is the per year of good time
new text begin lump-sum new text end service credit service pension amount in effect for each new text begin lump-sum retirement
new text end account in which the firefighter has good time service credit as of the date on which the
firefighter terminated active service with the fire department associated with the applicable
account, multiplied by the number of years of good time service credit that the firefighter
has in the applicable account.

Subd. 3.

Payment.

A new text begin lump-sum new text end service pension under this section must be paid
in a single payment, with the applicable portion of the total new text begin lump-sum new text end service pension
payment amount deducted from each new text begin lump-sum retirement new text end account.

Sec. 26.

Minnesota Statutes 2014, section 353G.14, is amended to read:

353G.14 PURCHASE OF ANNUITY CONTRACTS.

The executive director may purchase an annuity contract on behalf of a retiring
firefighter new text begin retiring from the lump-sum retirement division of the statewide retirement
plan new text end with a total premium payment in an amount equal to the lump-sum service pension
payable under section 353G.09 if the purchase was requested by the retiring firefighter in a
manner prescribed by the executive director. The annuity contract must be purchased from
an insurance carrier that is licensed to do business in this state. If purchased, the annuity
contract is in lieu of any service pension or other benefit from the new text begin lump-sum retirement
plan of the new text end retirement plan. The annuity contract may be purchased at any time after the
volunteer firefighter discontinues active service, but the annuity contract must stipulate that
no annuity amounts are payable before the former volunteer firefighter attains the age of 50.

Sec. 27.

Minnesota Statutes 2014, section 353G.15, is amended to read:

353G.15 INDIVIDUAL RETIREMENT ACCOUNT TRANSFER.

Upon receipt of a determination that the new text begin voluntary statewide volunteer firefighter
new text end retirement plan is a qualified pension plan under section 401(a) of the Internal Revenue
Code, as amended, the executive director, upon request, shall transfer deleted text begin the deleted text end new text begin a lump-sum
new text end service pension amount under sections 353G.08 and 353G.11 of a former volunteer
firefighter who has terminated active firefighting services covered by the new text begin lump-sum
retirement division of the statewide new text end plan and who has attained the age of at least 50 years
to the person's individual retirement account under section 408(a) of the federal Internal
Revenue Code, as amended. The transfer request must be in a manner prescribed by the
executive director and must be filed by the former volunteer firefighter who has sufficient
service credit to be entitled to a service pension or, following the death of a participating
active firefighter, must be filed by the deceased firefighter's surviving spouse.

Sec. 28.

Minnesota Statutes 2014, section 353G.16, is amended to read:

353G.16 EXEMPTION FROM PROCESS.

The provisions of section 356.401 apply to the new text begin voluntary statewide volunteer
firefighter new text end retirement plan.

Sec. 29.

Minnesota Statutes 2014, section 356.215, subdivision 8, is amended to read:

Subd. 8.

Interest and salary assumptions.

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

(1) select and ultimate interest rate assumption

plan	ultimate interest rate assumption
general state employees retirement plan	8.5%
correctional state employees retirement plan	8.5
State Patrol retirement plan	8.5
legislators retirement plan, and for the constitutional officers calculation of total plan liabilities	0
judges retirement plan	8.5
general public employees retirement plan	8.5
public employees police and fire retirement plan	8.5
local government correctional service retirement plan	8.5
teachers retirement plan	8.5
St. Paul teachers retirement plan	8.5

Except for the legislators retirement plan and the constitutional officers calculation
of total plan liabilities, the select preretirement interest rate assumption for the period after
June 30, 2012, through June 30, 2017, is 8 percent.

(2) single rate interest rate assumption

plan	interest rate assumption
Bloomington Fire Department Relief Association	6
local monthly benefit volunteer firefighters relief associations	5
new text begin monthly benefit retirement plans in the statewide volunteer firefighter retirement plan new text end	new text begin 6 new text end

(b)(1) If funding stability has been attained, the valuation must use a postretirement
adjustment rate actuarial assumption equal to the postretirement adjustment rate specified
in section 354A.27, subdivision 7; 354A.29, subdivision 9; or 356.415, subdivision 1,
whichever applies.

(2) If funding stability has not been attained, the valuation must use a select
postretirement adjustment rate actuarial assumption equal to the postretirement adjustment
rate specified in section 354A.27, subdivision 6a; 354A.29, subdivision 8; or 356.415,
subdivision 1a, 1b, 1c, 1d, 1e, or 1f, whichever applies, for a period ending when the
approved actuary estimates that the plan will attain the defined funding stability measure,
and thereafter an ultimate postretirement adjustment rate actuarial assumption equal
to the postretirement adjustment rate under section 354A.27, subdivision 7; 354A.29,
subdivision 9; or 356.415, subdivision 1, for the applicable period or periods beginning
when funding stability is projected to be attained.

(c) 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

plan	future salary increase assumption
legislators retirement plan		5%
judges retirement plan		3
Bloomington Fire Department Relief Association		4

(2) age-related future salary increase age-related select and ultimate future salary
increase assumption or graded rate future salary increase assumption

plan	future salary increase assumption
local government correctional service retirement plan	assumption B
St. Paul teachers retirement plan	assumption A

For plans other than the St. Paul teachers
retirement plan and the local government
correctional service retirement plan, the
select calculation is: during the designated
select period, a designated percentage rate
is multiplied by the result of the designated
integer minus T, where T is the number of
completed years of service, and is added
to the applicable future salary increase
assumption. The designated select period
is ten years and the designated integer is
ten for the local government correctional
service retirement plan and 15 for the St.
Paul Teachers Retirement Fund Association.
The designated percentage rate is 0.2 percent
for the St. Paul Teachers Retirement Fund
Association.

The ultimate future salary increase assumption is:

age	A	B
16	5.9%	9%
17	5.9	9
18	5.9	9
19	5.9	9
20	5.9	9
21	5.9	8.75
22	5.9	8.5
23	5.85	8.25
24	5.8	8
25	5.75	7.75
26	5.7	7.5
27	5.65	7.25
28	5.6	7
29	5.55	6.75
30	5.5	6.75
31	5.45	6.5
32	5.4	6.5
33	5.35	6.5
34	5.3	6.25
35	5.25	6.25
36	5.2	6
37	5.15	6
38	5.1	6
39	5.05	5.75
40	5	5.75
41	4.95	5.75
42	4.9	5.5
43	4.85	5.25
44	4.8	5.25
45	4.75	5
46	4.7	5
47	4.65	5
48	4.6	5
49	4.55	5
50	4.5	5
51	4.45	5
52	4.4	5
53	4.35	5
54	4.3	5
55	4.25	4.75
56	4.2	4.75
57	4.15	4.5
58	4.1	4.25
59	4.05	4.25
60	4	4.25
61	4	4.25
62	4	4.25
63	4	4.25
64	4	4.25
65	4	4
66	4	4
67	4	4
68	4	4
69	4	4
70	4	4

(3) service-related ultimate future salary increase assumption

general state employees retirement plan of the Minnesota State Retirement System	assumption A
general employees retirement plan of the Public Employees Retirement Association	assumption B
Teachers Retirement Association	assumption C
public employees police and fire retirement plan	assumption D
State Patrol retirement plan	assumption E
correctional state employees retirement plan of the Minnesota State Retirement System	assumption F

service length	A	B	C	D	E	F
1	10.5%	12.03%	12%	13%	8%	6%
2	8.1	8.9	9	11	7.5	5.85
3	6.9	7.46	8	9	7	5.7
4	6.2	6.58	7.5	8	6.75	5.55
5	5.7	5.97	7.25	6.5	6.5	5.4
6	5.3	5.52	7	6.1	6.25	5.25
7	5	5.16	6.85	5.8	6	5.1
8	4.7	4.87	6.7	5.6	5.85	4.95
9	4.5	4.63	6.55	5.4	5.7	4.8
10	4.4	4.42	6.4	5.3	5.55	4.65
11	4.2	4.24	6.25	5.2	5.4	4.55
12	4.1	4.08	6	5.1	5.25	4.45
13	4	3.94	5.75	5	5.1	4.35
14	3.8	3.82	5.5	4.9	4.95	4.25
15	3.7	3.7	5.25	4.8	4.8	4.15
16	3.6	3.6	5	4.8	4.65	4.05
17	3.5	3.51	4.75	4.8	4.5	3.95
18	3.5	3.5	4.5	4.8	4.35	3.85
19	3.5	3.5	4.25	4.8	4.2	3.75
20	3.5	3.5	4	4.8	4.05	3.75
21	3.5	3.5	3.9	4.7	4	3.75
22	3.5	3.5	3.8	4.6	4	3.75
23	3.5	3.5	3.7	4.5	4	3.75
24	3.5	3.5	3.6	4.5	4	3.75
25	3.5	3.5	3.5	4.5	4	3.75
26	3.5	3.5	3.5	4.5	4	3.75
27	3.5	3.5	3.5	4.5	4	3.75
28	3.5	3.5	3.5	4.5	4	3.75
29	3.5	3.5	3.5	4.5	4	3.75
30 or more	3.5	3.5	3.5	4.5	4	3.75

(d) 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:

plan	payroll growth assumption
general state employees retirement plan of the Minnesota State Retirement System	3.75%
correctional state employees retirement plan	3.75
State Patrol retirement plan	3.75
judges retirement plan	3
general employees retirement plan of the Public Employees Retirement Association	3.75
public employees police and fire retirement plan	3.75
local government correctional service retirement plan	3.75
teachers retirement plan	3.75
St. Paul teachers retirement plan	4

(e) The assumptions set forth in paragraphs (c) and (d) continue to apply, unless a
different salary assumption or a different payroll increase assumption:

(1) has been proposed by the governing board of the applicable retirement plan;

(2) is accompanied by the concurring recommendation of the actuary retained under
section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the
most recent actuarial valuation report if section 356.214 does not apply; and

(3) has been approved or deemed approved under subdivision 18.