Minnesota Legislature
HF 656
1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to retirement; modifying provisions relating 1.3 to the state board of investment; providing for early 1.4 retirement incentives and certain voluntary employee 1.5 reductions; making certain changes to the public 1.6 employees retirement association; providing for prior 1.7 service credit purchase; making general retirement 1.8 changes; providing for volunteer firefighter relief 1.9 association changes; providing for certain teachers 1.10 retirement changes; amending Minnesota Statutes 2002, 1.11 sections 11A.17, subdivision 2; 352.96, subdivision 2; 1.12 353.01, subdivisions 2d, 6; 353D.01, subdivision 2; 1.13 353D.02, by adding a subdivision; 356.55, subdivision 1.14 7; 356B.05; 383B.49; 383B.493; 423C.08; 424A.02, 1.15 subdivision 3; Laws 1978, chapter 685, sections 1, as 1.16 amended, 2, 3, 6; Laws 1999, chapter 222, article 16, 1.17 section 16, as amended; Laws 2000, chapter 461, 1.18 article 4, section 4; Laws 2000, chapter 461, article 1.19 12, section 20, as amended; Laws 2000, chapter 461, 1.20 article 19, section 6; Laws 2001, First Special 1.21 Session chapter 10, article 6, section 21, as amended; 1.22 repealing Minnesota Statutes 2002, sections 354.541; 1.23 354A.109; Laws 1978, chapter 685, section 5. 1.24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.25 ARTICLE 1 1.26 STATE BOARD OF INVESTMENT 1.27 CHANGES 1.28 Section 1. Minnesota Statutes 2002, section 11A.17, 1.29 subdivision 2, is amended to read: 1.30 Subd. 2. [ASSETS.] The assets of the supplemental 1.31 investment fund shall consist of the money certified and 1.32 transmitted to the state board from the participating public 1.33 retirement plans and funds or from the board of the Minnesota 1.34 state colleges and universities under section 136F.45. The 2.1 assets must be used to purchase investment shares in the 2.2 investment accounts specified by the plan or fund. These 2.3 accounts must be valued at least on a monthly basis, but may be 2.4 valued more frequently as determined by the state board of 2.5 investment. 2.6 Sec. 2. Minnesota Statutes 2002, section 352.96, 2.7 subdivision 2, is amended to read: 2.8 Subd. 2. [PURCHASE OF SHARES.] The amount of compensation 2.9 so deferred may be used to purchase: 2.10 (1) shares in the Minnesota supplemental investment fund 2.11 established in section 11A.17 that are selected to be offered 2.12 under the plan by the state board of investment; 2.13 (2) saving accounts in federally insured financial 2.14 institutions; 2.15 (3) life insurance contracts, fixed annuity and variable 2.16 annuity contracts from companies that are subject to regulation 2.17 by the commissioner of commerce; 2.18 (4) investment options from open-end investment companies 2.19 registered under the federal Investment Company Act of 1940, 2.20 United States Code, title 15, sections 80a-1 to 80a-64; 2.21 (5) investment options from a firm that is a registered 2.22 investment advisor under the Investment Advisers Act of 1940, 2.23 United States Code, title 15, section 80b-1 to 80b-21; 2.24 (6) investment options of a bank as defined in United 2.25 States Code, title 15, section 80b-2, subsection (a), paragraph 2.26 (2), or a bank holding company as defined in the Bank Holding 2.27 Company Act of 1956, United States Code, title 12, section 1841, 2.28 subsection (a), paragraph (1); or 2.29 (7) a combination of clause (1), (2), (3), (4), (5), or 2.30 (6), as provided by the plan as specified by the participant. 2.31 All amounts contributed to the deferred compensation plan 2.32 and all earnings on those amounts will be held for the exclusive 2.33 benefit of the plan participants and beneficiaries. These 2.34 amounts will be held in trust, in custodial accounts, or in 2.35 qualifying annuity contracts as required by federal law and in 2.36 accordance with section 356A.06, subdivision 1. This 3.1 subdivision does not authorize an employer contribution, except 3.2 as authorized in section 356.24, subdivision 1, paragraph (a), 3.3 clause (5). The state, political subdivision, or other 3.4 employing unit is not responsible for any loss that may result 3.5 from investment of the deferred compensation. 3.6 Sec. 3. [EFFECTIVE DATE.] 3.7 Sections 1 and 2 are effective July 1, 2003. 3.8 ARTICLE 2 3.9 EARLY RETIREMENT INCENTIVE PROGRAMS 3.10 Section 1. [APPLICATION.] 3.11 Unless otherwise specified, this article applies to 3.12 governmental subdivisions as specified in Minnesota Statutes, 3.13 section 353.01, subdivision 6, and public employees providing 3.14 service to the applicable employer and covered by the public 3.15 employees retirement association general plan or police and fire 3.16 plan under Minnesota Statutes, chapter 353, or the public 3.17 employees retirement association local government correctional 3.18 service retirement plan under Minnesota Statutes, chapter 353E. 3.19 Sec. 2. [EMPLOYEE EXCLUSION.] 3.20 This article does not apply to any employee who provides 3.21 service to more than one governmental subdivision, or who earns 3.22 service credit during the time period covered by this article in 3.23 any Minnesota public employee plan other than a volunteer fire 3.24 plan. 3.25 Sec. 3. [PHASED RETIREMENT.] 3.26 (a) This section applies to a public employee who: 3.27 (1) on the effective date of this section is regularly 3.28 scheduled to work 1,040 or more hours a year in a position 3.29 covered by an applicable retirement plan; 3.30 (2) enters into an agreement with the governmental 3.31 subdivision to work a reduced schedule that is both: 3.32 (i) a reduction of at least 25 percent from the number of 3.33 regularly scheduled work hours; and 3.34 (ii) 1,040 hours or less in the covered position; and 3.35 (3) at the time of entering into the agreement under clause 3.36 (2), meets the age and service requirements necessary to receive 4.1 a retirement benefit from the applicable plan. 4.2 (b) Notwithstanding any law to the contrary, for service 4.3 under an agreement entered into under paragraph (a), an employee 4.4 agrees to terminate public employment meeting requirements of 4.5 Minnesota Statutes, section 353.01, subdivision 11a, except that 4.6 the minimum 30-day break-in-service requirement under that 4.7 subdivision shall not apply, and agrees to reemployment with the 4.8 applicable governmental subdivision under terms and conditions 4.9 specified in this section. If an eligible public employee 4.10 commences receipt of an annuity from a plan specified in 4.11 paragraph (a), the provisions of Minnesota Statutes, section 4.12 353.37, governing annuities of reemployed annuitants shall not 4.13 apply for the duration of the agreement. 4.14 (c) The number of hours worked, the work schedule, and the 4.15 duration of the phased retirement employment must be mutually 4.16 agreed to by the employee and the governmental subdivision. The 4.17 governmental subdivision may not require a person to waive any 4.18 rights under a collective bargaining agreement as a condition of 4.19 participation in this section. The governmental subdivision has 4.20 sole discretion to determine if and the extent to which phased 4.21 retirement under this section is available to an employee. 4.22 (d) Notwithstanding any law to the contrary, a person may 4.23 not earn service credit in the public employees retirement 4.24 association for employment covered under this section, and 4.25 employer contributions and payroll deductions for the retirement 4.26 fund must not be made based on earnings of a person working 4.27 under this section. No change shall be made to a monthly 4.28 annuity or retirement allowance based on employment under this 4.29 section. 4.30 (e) A person who works under this section and meets the 4.31 definition of public employee under Minnesota Statutes, section 4.32 179A.03, subdivision 14, is a member of the appropriate 4.33 bargaining unit, is covered by the appropriate collective 4.34 bargaining contract or personnel policy, and is eligible for 4.35 health care coverage as provided in the collective bargaining 4.36 contract or personnel policy. 5.1 (f) An agreement under this section may apply only to work 5.2 through June 30, 2005. 5.3 Sec. 4. [VOLUNTARY HOUR REDUCTION PLAN.] 5.4 (a) This section applies to a public employee who: 5.5 (1) on the effective date of this section is regularly 5.6 scheduled to work 1,040 or more hours a year in a position 5.7 covered by a pension plan administered by the public employees 5.8 retirement association; and 5.9 (2) enters into an agreement with a governmental 5.10 subdivision to work a reduced schedule of 1,040 or less hours in 5.11 the covered position. 5.12 (b) Notwithstanding any law to the contrary, for service 5.13 under an agreement entered into under paragraph (a), 5.14 contributions may be made to the applicable plan of the public 5.15 employees retirement association as if the employee had not 5.16 reduced hours. The employee must pay the employee contributions 5.17 and the employer must pay employer and additional employer 5.18 contributions necessary to bring the service credit and salary 5.19 up to the level prior to the voluntary reduction in hours. 5.20 Contributions must be made in a time and manner prescribed by 5.21 the executive director of the public employees retirement 5.22 association. 5.23 (c) The number of hours worked, the work schedule, and the 5.24 duration of the voluntary hour reduction must be mutually agreed 5.25 to by the employee and the governmental subdivision. The 5.26 governmental subdivision may not require a person to waive any 5.27 rights under a collective bargaining agreement as a condition of 5.28 participation under this section. The governmental subdivision 5.29 has sole discretion to determine if and the extent to which 5.30 voluntary hour reduction under this section is available to an 5.31 employee. 5.32 (d) A person who works under this section and meets the 5.33 definition of public employee under Minnesota Statutes, section 5.34 179A.03, subdivision 14, is a member of an appropriate 5.35 bargaining unit, is covered by an appropriate collective 5.36 bargaining contract or personnel policy, and is eligible for 6.1 health care coverage as provided in a collective bargaining 6.2 contract or personnel policy. 6.3 (e) An agreement under this section may apply only to work 6.4 through June 30, 2005. 6.5 Sec. 5. [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 6.6 (a) Governmental subdivisions may allow employees to take 6.7 unpaid leaves of absence between June 1, 2003, and June 30, 6.8 2005. Each governmental subdivision approving a leave shall 6.9 allow the employee to continue accruing vacation and sick leave, 6.10 be eligible for paid holidays and insurance benefits, accrue 6.11 seniority, and accrue service credit and credited salary in the 6.12 public employees retirement association as if the employee had 6.13 actually been employed during the time of leave. If the leave 6.14 of absence is for one full pay period or longer, any holiday pay 6.15 shall be included in the first payroll warrant after return from 6.16 the leave of absence. The governmental subdivision shall 6.17 attempt to grant requests for the unpaid leaves of absence 6.18 consistent with the need to continue efficient operation of the 6.19 governmental subdivision. However, each governmental 6.20 subdivision shall retain discretion to grant or refuse to grant 6.21 requests for leaves of absence and to schedule and cancel 6.22 leaves, subject to the applicable provisions of collective 6.23 bargaining agreements and personnel policy. 6.24 (b) To receive eligible service credit, the member shall 6.25 pay an amount equal to the applicable employee contribution 6.26 rates. If an employee pays the employee contribution for the 6.27 period of the leave under this section, the governmental 6.28 subdivision must pay the employer contribution and the 6.29 additional employer contribution. The governmental subdivision 6.30 may, at its discretion, pay employee, employer, and additional 6.31 employer contributions to the public employees retirement 6.32 association for the period of leave under this section. 6.33 Contributions must be made in a time and manner prescribed by 6.34 the executive director of the public employees retirement 6.35 association. 6.36 Sec. 6. [DESIGNATION OF POSITIONS; EMPLOYER DISCRETION.] 7.1 Before agreeing to an option under this article, a 7.2 governmental subdivision must designate the job classifications 7.3 or positions within job classifications that qualify for each 7.4 option. The governmental subdivision may modify this 7.5 designation at any time. Designation of positions eligible for 7.6 the options and participation of individual employees under this 7.7 article are at the sole discretion of the governmental 7.8 subdivision. Implementation of this article by the employer is 7.9 not an unfair labor practice under Minnesota Statutes, chapter 7.10 179A, or an unfair discriminatory practice under Minnesota 7.11 Statutes, chapter 363. 7.12 Sec. 7. [PROGRAM APPLICATION REQUIREMENTS.] 7.13 (a) No agreement between an eligible public employee and a 7.14 governmental subdivision under this article is effective unless 7.15 the employee acknowledges acceptance of the terms of the 7.16 agreement in writing on a form prescribed by the public 7.17 employees retirement association executive director. 7.18 (b) A copy of the signed agreement must be transmitted to 7.19 the public employees retirement association executive director 7.20 within 30 days after the agreement is executed. 7.21 Sec. 8. [RELATIONSHIP OF SECTIONS.] 7.22 (a) An employee covered by a phased retirement agreement 7.23 under section 3 may not be covered by the voluntary hour 7.24 reduction provisions of section 4 or by a voluntary unpaid leave 7.25 of absence agreement under section 5 during the same time period 7.26 or any later time period. 7.27 (b) An employee covered by the voluntary hour reduction 7.28 provisions of section 4: 7.29 (1) may not be covered by a phased retirement agreement 7.30 under section 3 during the same time period, but may be covered 7.31 by a phased retirement agreement under section 3 during a later 7.32 time period; and 7.33 (2) may be covered by the voluntary leave of absence 7.34 provision of section 5 during an earlier or later time period. 7.35 Sec. 9. [GOVERNMENTAL SUBDIVISION LIMITATION.] 7.36 Notwithstanding Minnesota Statutes, section 353.01, 8.1 subdivision 6, paragraph (b), to the contrary, for purposes of 8.2 this article the public employees retirement association is not 8.3 a governmental subdivision. 8.4 Sec. 10. [EFFECTIVE DATE.] 8.5 Sections 1 to 9 are effective the day following final 8.6 enactment. 8.7 ARTICLE 3 8.8 PUBLIC EMPLOYEES RETIREMENT 8.9 ASSOCIATION CHANGES 8.10 Section 1. Minnesota Statutes 2002, section 353.01, 8.11 subdivision 2d, is amended to read: 8.12 Subd. 2d. [OPTIONAL MEMBERSHIP.] (a) Membership in the 8.13 association is optional by action of the individual employee for 8.14 the following public employees who meet the conditions set forth 8.15 in subdivision 2a: 8.16 (1) members of the coordinated plan who are also employees 8.17 of labor organizations as defined in section 353.017, 8.18 subdivision 1, for their employment by the labor organization 8.19 only if they elect to have membership under section 353.017, 8.20 subdivision 2; 8.21 (2) persons who are elected or persons who are appointed to 8.22 elected positions other than local governing body elected 8.23 positions who elect to participate by filing a written election 8.24 for membership; 8.25 (3) members of the association who are appointed by the 8.26 governor to be a state department head and who elect not to be 8.27 covered by the general state employees retirement plan of the 8.28 Minnesota state retirement system under section 352.021;and8.29 (4) city managers as defined in section 353.028, 8.30 subdivision 1, who do not elect to be excluded from membership 8.31 in the association under section 353.028, subdivision 2; and 8.32 (5) employees of the port authority of the city of St. Paul 8.33 who were at least age 45 on January 1, 2003, and who elect to 8.34 participate by filing a written election for membership. 8.35 (b) Membership in the association is optional by action of 8.36 the governmental subdivision for the employees of the following 9.1 governmental subdivisions under the conditions specified: 9.2 (1) the Minnesota association of townships if the board of 9.3 the association, at its option, certifies to the executive 9.4 director that its employees are to be included for purposes of 9.5 retirement coverage, in which case the status of the association 9.6 as a participating employer is permanent; and 9.7 (2) a county historical society if the county in which the 9.8 historical society is located, at its option, certifies to the 9.9 executive director that the employees of the historical society 9.10 are to be county employees for purposes of retirement coverage 9.11 under this chapter. The status as a county employee must be 9.12 accorded to all similarly situated county historical society 9.13 employees and, once established, must continue as long as a 9.14 person is an employee of the county historical society. 9.15 (c) For employees who are covered by paragraph (a), clause 9.16 (1), (2), or (3), or covered by paragraph (b), if the necessary 9.17 membership election is not made, the employee is excluded from 9.18 retirement coverage under this chapter. For employees who are 9.19 covered by paragraph (a), clause (4), if the necessary election 9.20 is not made, the employee must become a member and have 9.21 retirement coverage under this chapter. The option to become a 9.22 member, once exercised under this subdivision, may not be 9.23 withdrawn until termination of public service as defined under 9.24 subdivision 11a. 9.25 Sec. 2. Minnesota Statutes 2002, section 353.01, 9.26 subdivision 6, is amended to read: 9.27 Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 9.28 subdivision" means a county, city, town, school district within 9.29 this state, or a department or unit of state government, or any 9.30 public body whose revenues are derived from taxation, fees, 9.31 assessments or from other sources. 9.32 (b) Governmental subdivision also means the public 9.33 employees retirement association, the league of Minnesota 9.34 cities, the association of metropolitan municipalities, public 9.35 hospitals owned or operated by, or an integral part of, a 9.36 governmental subdivision or governmental subdivisions, the 10.1 association of Minnesota counties, the metropolitan intercounty 10.2 association, the Minnesota municipal utilities association, the 10.3 metropolitan airports commission, the Minneapolis employees 10.4 retirement fund for employment initially commenced after June 10.5 30, 1979, the range association of municipalities and schools, 10.6 soil and water conservation districts, economic development 10.7 authorities created or operating under sections 469.090 to 10.8 469.108, the port authority of the city of St. Paul, the Spring 10.9 Lake Park fire department, incorporated, the Red Wing 10.10 environmental learning center, and the Dakota county 10.11 agricultural society. 10.12 (c) Governmental subdivision does not mean any municipal 10.13 housing and redevelopment authority organized under the 10.14 provisions of sections 469.001 to 469.047; or any port authority 10.15 organized under sections 469.048 to 469.089 other than the port 10.16 authority of the city of St. Paul; or any hospital district 10.17 organized or reorganized prior to July 1, 1975, under sections 10.18 447.31 to 447.37 or the successor of the district, nor the 10.19 Minneapolis community development agency. 10.20 Sec. 3. Minnesota Statutes 2002, section 353D.01, 10.21 subdivision 2, is amended to read: 10.22 Subd. 2. [ELIGIBILITY.] (a) Eligibility to participate in 10.23 the defined contribution plan is available to: 10.24 (1) elected local government officials of a governmental 10.25 subdivision who elect to participate in the plan under section 10.26 353D.02, subdivision 1, and who, for the elected service 10.27 rendered to a governmental subdivision, are not members of the 10.28 public employees retirement association within the meaning of 10.29 section 353.01, subdivision 7; 10.30 (2) physicians who, if they did not elect to participate in 10.31 the plan under section 353D.02, subdivision 2, would meet the 10.32 definition of member under section 353.01, subdivision 7; 10.33 (3) basic and advanced life support emergency medical 10.34 service personnel employed by or providing services for any 10.35 public ambulance service or privately operated ambulance service 10.36 that receives an operating subsidy from a governmental entity 11.1 that elects to participate under section 353D.02, subdivision 3; 11.2and11.3 (4) members of a municipal rescue squad associated with 11.4 Litchfield in Meeker county, or of a county rescue squad 11.5 associated with Kandiyohi county, if an independent nonprofit 11.6 rescue squad corporation, incorporated under chapter 317A, 11.7 performing emergency management services, and if not affiliated 11.8 with a fire department or ambulance service and if its members 11.9 are not eligible for membership in that fire department's or 11.10 ambulance service's relief association or comparable pension 11.11 plan; and 11.12 (5) employees of the port authority of the city of St. Paul 11.13 who elect to participate in the plan under section 353D.02, 11.14 subdivision 5, and who are not members of the public employees 11.15 retirement association under section 353.01, subdivision 7. 11.16 (b) For purposes of this chapter, an elected local 11.17 government official includes a person appointed to fill a 11.18 vacancy in an elective office. Service as an elected local 11.19 government official only includes service for the governmental 11.20 subdivision for which the official was elected by the 11.21 public-at-large. Service as an elected local government 11.22 official ceases and eligibility to participate terminates when 11.23 the person ceases to be an elected official. An elected local 11.24 government official does not include an elected county sheriff. 11.25 (c)Elected local government officials, physicians, first11.26response personnel and emergency medical service personnel, and11.27rescue squad personnelIndividuals otherwise eligible to 11.28 participate in the plan under this subdivision who are currently 11.29 covered by a public or private pension plan because of their 11.30 employment or provision of services are not eligible to 11.31 participate in the public employees defined contribution plan. 11.32 (d) A former participant is a person who has terminated 11.33 eligible employment or service and has not withdrawn the value 11.34 of the person's individual account. 11.35 Sec. 4. Minnesota Statutes 2002, section 353D.02, is 11.36 amended by adding a subdivision to read: 12.1 Subd. 5. [ST. PAUL PORT AUTHORITY PERSONNEL.] Employees of 12.2 the port authority of the city of St. Paul who do not elect to 12.3 participate in the general employees retirement plan may elect 12.4 to participate in the plan by filing a membership application on 12.5 a form prescribed by the executive director of the association 12.6 authorizing contributions to be deducted from the employee's 12.7 salary. Participation begins on the first day of the pay period 12.8 for which the contributions were deducted or, if pay period 12.9 coverage dates are not provided, the date on which the 12.10 membership application or the contributions are received in the 12.11 office of the association, whichever is received first, if the 12.12 membership application is received by the association within 60 12.13 days of the receipt of the contributions. An election to 12.14 participate in the plan is irrevocable. 12.15 Sec. 5. [RED WING ENVIRONMENTAL LEARNING CENTER.] 12.16 (a) The legislature finds that the Red Wing environmental 12.17 learning center has a long and very close relationship with 12.18 independent school district No. 256, Red Wing, that Red Wing 12.19 environmental learning center employees have been treated as 12.20 independent school district No. 256, Red Wing, employees for 12.21 retirement coverage purposes for 33 years, and that the current 12.22 learning center employees would suffer a significant loss in 12.23 their pension benefit coverage if their membership in the 12.24 general employees retirement plan of the public employees 12.25 retirement association was disrupted. 12.26 (b) Notwithstanding the provisions of any other law to the 12.27 contrary, independent school district No. 256, Red Wing, may 12.28 certify to the executive director of the public employees 12.29 retirement association that employees of the Red Wing 12.30 environmental learning center are considered school district 12.31 employees solely for purposes of retirement coverage by the 12.32 general employees retirement plan under Minnesota Statutes, 12.33 chapter 353. This status must be accorded to all similarly 12.34 situated Red Wing environmental learning center employees. 12.35 Sec. 6. [PERA-GENERAL; PRIOR ST. PAUL PORT AUTHORITY 12.36 SERVICE CREDIT PURCHASE.] 13.1 Subdivision 1. [ELIGIBILITY.] A full-time salaried 13.2 employee or a permanent part-time salaried employee of the port 13.3 authority of the city of St. Paul who was employed by the port 13.4 authority during all or part of the period from July 1, 1993, to 13.5 July 1, 2003, and who is a member of the general employees 13.6 retirement plan of the public employees retirement association 13.7 may purchase allowable service credit from the general employees 13.8 retirement plan. 13.9 Subd. 2. [PURCHASABLE SERVICE; MAXIMUM.] (a) The service 13.10 credit that is purchasable under subdivision 1 is a period or 13.11 periods of employment by the port authority of the city of St. 13.12 Paul that would have been eligible service for coverage by the 13.13 general employees retirement plan of the public employees 13.14 retirement association if the service had been rendered after 13.15 July 1, 2003. 13.16 (b) The maximum period of allowable service credit in the 13.17 general employees retirement plan of the public employees 13.18 retirement association for purchase under this section is ten 13.19 years. 13.20 Subd. 3. [PURCHASE PAYMENT REQUIREMENT.] (a) To purchase 13.21 the service credit, the payment amount must be calculated under 13.22 Minnesota Statutes, section 356.55. 13.23 (b) Notwithstanding any provision of Minnesota Statutes, 13.24 section 356.55, to the contrary, the prior service credit 13.25 purchase payment may be made in whole or in part on an 13.26 institution-to-institution basis from a plan qualified under the 13.27 federal Internal Revenue Code, sections 401(a), 401(k), or 13.28 414(h), or from an annuity qualified under the federal Internal 13.29 Revenue Code, section 403, or from a deferred compensation plan 13.30 under the federal Internal Revenue Code, section 457, to the 13.31 extent permitted by the applicable federal law. In no event may 13.32 a prior service credit purchase transfer be paid directly to the 13.33 person purchasing the service. 13.34 Subd. 4. [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An 13.35 eligible person described in subdivision 1 must provide any 13.36 documentation related to eligibility to make this service credit 14.1 purchase required by the executive director of the public 14.2 employees retirement association. 14.3 (b) Allowable service credit for the purchase period or 14.4 periods must be granted by the general employees retirement plan 14.5 of the public employees retirement association on behalf of the 14.6 eligible person upon receipt of the prior service credit 14.7 purchase payment amount. 14.8 Subd. 5. [SUNSET.] Authority to purchase service credit 14.9 under this section expires on December 31, 2004. 14.10 Sec. 7. [PRIOR SERVICE; VESTING.] 14.11 For purposes of vesting under section 353.29, subdivision 14.12 1, only, a full-time salaried employee or a permanent part-time 14.13 salaried employee of the port authority of the city of St. Paul 14.14 who was employed by the port authority on July 1, 2003, and who 14.15 is a member of the general employees retirement plan of the 14.16 public employees retirement association may use months of 14.17 employment with the port authority before that date. This 14.18 service may not be used to calculate a retirement annuity or a 14.19 disability benefit provided for under Minnesota Statutes, 14.20 chapter 353. 14.21 Sec. 8. [DEFINED CONTRIBUTION PLAN; ONETIME ELECTION.] 14.22 Employees of the port authority of the city of St. Paul who 14.23 do not exercise the right to become members of the general 14.24 employees retirement plan of the public employees retirement 14.25 association under section 1 may, by onetime election, choose to 14.26 participate in the public employees retirement association's 14.27 defined contribution plan under Minnesota Statutes, sections 14.28 353D.01 to 353D.12. The election is irrevocable. 14.29 Sec. 9. [EFFECTIVE DATE.] 14.30 (a) Section 2 with respect to the Red Wing environmental 14.31 learning center, and section 5 are effective the day after the 14.32 school board of independent school district No. 256, Red Wing, 14.33 and its chief clerical officer timely complete their compliance 14.34 with Minnesota Statutes, section 645.021, subdivisions 2 and 3, 14.35 and certification to the executive director of the public 14.36 employees retirement association. 15.1 (b) Section 2, with respect to the port authority of the 15.2 city of St. Paul, is effective the day following final enactment 15.3 (c) Sections 1, 3, 4, 5, 7, and 8 are effective the day 15.4 following final enactment. 15.5 (d) Coverage by the general employees retirement plan of 15.6 the public employees retirement association under sections 1 and 15.7 2 commences July 1, 2003. 15.8 ARTICLE 4 15.9 PRIOR SERVICE CREDIT PURCHASE 15.10 PROVISIONS 15.11 Section 1. Minnesota Statutes 2002, section 356.55, 15.12 subdivision 7, is amended to read: 15.13 Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 15.14 PROCEDURE.] (a) This section expires and is repealed on July 15.15 1,20032004. 15.16 (b) Authority for any public pension plan to accept a prior 15.17 service credit payment that is calculated in a timely fashion 15.18 under this section expires on October 1,20032004. 15.19 Sec. 2. Laws 1999, chapter 222, article 16, section 16, as 15.20 amended by Laws 2002, chapter 392, article 7, section 1, is 15.21 amended to read: 15.22 Sec. 16. [REPEALER.] 15.23 Sections 1 to 13 are repealed on May 16,20032004. 15.24 Sec. 3. Laws 2000, chapter 461, article 4, section 4, is 15.25 amended to read: 15.26 Sec. 4. [EFFECTIVE DATE; SUNSET REPEALER.] 15.27 (a) Sections 1, 2, and 3 are effective on the day following 15.28 final enactment. 15.29 (b) Sections 1, 2, and 3 are repealed on May 16,20032004. 15.30 Sec. 4. Laws 2000, chapter 461, article 12, section 20, as 15.31 amended by Laws 2002, chapter 392, article 7, section 2, is 15.32 amended to read: 15.33 Sec. 20. [EFFECTIVE DATE.] 15.34 (a) Sections 4, 5, and 11 to 20 are effective on the day 15.35 following final enactment. 15.36 (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 16.1 following final enactment and apply retroactively to a faculty 16.2 member of the Lake Superior College who was granted an extended 16.3 leave of absence under article 19, section 4, of the united 16.4 technical college educators master agreement for the 1999-2000 16.5 academic year prior to March 20, 2000. 16.6 (c) Sections 5, 11, and 14, paragraph (c), expire on May 16.7 16,20032004. 16.8 Sec. 5. Laws 2001, First Special Session chapter 10, 16.9 article 6, section 21, as amended by Laws 2002, chapter 392, 16.10 article 7, section 3, is amended to read: 16.11 Sec. 21. [EXPIRATION DATE.] 16.12 (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 16.13 18, 19, and 20 expire May 16,20032004. 16.14 (b) Sections 9 and 15 expire May 16,20032004. 16.15 Sec. 6. [PERA-GENERAL; SERVICE CREDIT PURCHASE 16.16 AUTHORIZED.] 16.17 (a) Notwithstanding any provision of law to the contrary, 16.18 an eligible person described in paragraph (b), (c), or (d) is 16.19 authorized to purchase allowable service credit from the general 16.20 employees retirement plan of the public employees retirement 16.21 association under Minnesota Statutes, section 356.55 or 356.551, 16.22 for the applicable period of prior employment as a council 16.23 member of the city of St. Louis Park which was not credited by 16.24 the general employees retirement plan of the public employees 16.25 retirement association as indicated in paragraph (e). 16.26 (b) An eligible person is a person who: 16.27 (1) is a current member of the St. Louis Park city council 16.28 and is a current member of the general employees retirement plan 16.29 of the public employees retirement association; 16.30 (2) was born on September 26, 1941; 16.31 (3) became a St. Louis Park city council member on January 16.32 1, 1996; and 16.33 (4) was not a member of the general employees retirement 16.34 plan of the public employees retirement association for the 16.35 period January 1, 1996, to January 29, 2000. 16.36 (c) An eligible person is a person who: 17.1 (1) is a current member of the St. Louis Park city council 17.2 and is a current member of the general employees retirement plan 17.3 of the public employees retirement association; 17.4 (2) was born on October 8, 1949; 17.5 (3) became a St. Louis Park city council member on June 8, 17.6 1999; and 17.7 (4) was not a member of the general employees retirement 17.8 plan of the public employees retirement association for the 17.9 period June 8, 1999, to January 12, 2002. 17.10 (d) An eligible person is a person who: 17.11 (1) is a current member of the St. Louis Park city council 17.12 and is a current member of the general employees retirement plan 17.13 of the public employees retirement association; 17.14 (2) was born on June 4, 1964; 17.15 (3) became a St. Louis Park city council member on November 17.16 18, 1997; and 17.17 (4) was not a member of the general employees retirement 17.18 plan of the public employees retirement association for the 17.19 period November 18, 1997, to March 9, 2002. 17.20 (e) The allowable service credit purchase period is limited 17.21 to the period of St. Louis Park city council service that was 17.22 not covered by the general employees retirement plan of the 17.23 public employees retirement association. 17.24 (f) The eligible person must provide all relevant 17.25 documentation of the applicability of the requirements set forth 17.26 in paragraph (b), (c), or (d) and any other applicable 17.27 information that the executive director of the public employees 17.28 retirement association may request. 17.29 (g) Allowable service credit for the purchase period must 17.30 be granted by the general employees retirement plan of the 17.31 public employees retirement association to the eligible person 17.32 upon receipt of the prior service credit purchase payment amount. 17.33 (h) Notwithstanding Minnesota Statutes, section 356.55, 17.34 subdivision 5, or 356.551, subdivision 2, whichever applies, the 17.35 city of St. Louis Park is not permitted to pay any portion of 17.36 the service credit purchase payment amount. 18.1 (i) The prior service credit purchase authority expires on 18.2 July 1, 2004, or on the date of the termination of active St. 18.3 Louis Park city council service by the eligible person, 18.4 whichever occurs earlier. 18.5 Sec. 7. [REPEALER.] 18.6 Minnesota Statutes 2002, sections 354.541 and 354A.109, are 18.7 repealed May 16, 2004. 18.8 Sec. 8. [EFFECTIVE DATE.] 18.9 Sections 1 to 7 are effective the day following final 18.10 enactment. 18.11 ARTICLE 5 18.12 GENERAL RETIREMENT CHANGES 18.13 Section 1. Minnesota Statutes 2002, section 356B.05, is 18.14 amended to read: 18.15 356B.05 [PUBLIC PENSION ADMINISTRATION LEGISLATION.] 18.16 (a) Proposed administrative legislation recommended by or 18.17 on behalf of the Minnesota state retirement system, the public 18.18 employees retirement association, the teachers retirement 18.19 association, the Minneapolis employees retirement fund,ora 18.20 first class city teachers retirement fund association, or the 18.21 Minnesota state colleges and universities system must be 18.22 presented to the legislative commission on pensions and 18.23 retirement, the state and local governmental operations 18.24 committee of the senate, and the governmental operations and 18.25 veterans affairs policy committee of the house of 18.26 representatives on or before October 1 of each year in order for 18.27 the proposed administrative legislation to be acted upon during 18.28 the upcoming legislative session. The executive director or the 18.29 deputy executive director of the legislative commission on 18.30 pensions and retirement shall provide written comments on the 18.31 proposed administrative provisions to the public pension plans 18.32 by November 15 of each year. 18.33 (b) Proposed administrative legislation recommended by or 18.34 on behalf of a public employee pension plan or system under 18.35 paragraph (a) must address provisions: 18.36 (1) authorizing allowable service credit for leaves of 19.1 absence and related circumstances; 19.2 (2) governing offsets or deductions from the amount of 19.3 disability benefits; 19.4 (3) authorizing the purchase of allowable service credit 19.5 for prior uncredited periods; 19.6 (4) governing subsequent employment earnings by reemployed 19.7 annuitants; and 19.8 (5) authorizing retroactive effect for retirement annuity 19.9 or benefit applications. 19.10 (c) Where possible and desirable, taking into account the 19.11 differences among the public pension plans in existing law and 19.12 the unique characteristics of the individual public pension fund 19.13 memberships, uniform provisions relating to paragraph (b) for 19.14 all applicable public pension plans must be presented for 19.15 consideration during the legislative session. Supporting 19.16 documentation setting forth the policy rationale for each set of 19.17 uniform provisions must accompany the proposed administrative 19.18 legislation. 19.19 Sec. 2. [ACTUARIAL STUDY OF COSTS TO RESTRUCTURE TEACHER 19.20 PLANS.] 19.21 Subdivision 1. [STUDY MANDATED.] The actuary retained by 19.22 the legislative commission on pensions and retirement shall 19.23 prepare an additional actuarial valuation report, using the 19.24 results of the 2003 actuarial valuation reports prepared under 19.25 Minnesota Statutes, section 356.215, that considers the 19.26 feasibility of restructuring the Minnesota teachers retirement 19.27 association, the Minneapolis teachers retirement fund 19.28 association, the St. Paul teachers retirement fund association, 19.29 and the Duluth teachers retirement plan and fund association 19.30 into a new restructured fund. 19.31 Subd. 2. [CONTENTS OF STUDY.] The actuarial valuation 19.32 report must be based on the proposals put forth in the report 19.33 mandated by the legislature in Laws 2001, First Special Session 19.34 chapter 10, article 11, section 20, and filed February 15, 2002, 19.35 including changes to the postretirement adjustment, benefits, 19.36 and restructuring administrative costs and including asset 20.1 transfers. 20.2 Subd. 3. [INFORMATION PROVIDED.] The executive director of 20.3 the teachers retirement association, the executive secretary of 20.4 the Duluth teachers retirement fund association, the executive 20.5 director of the St. Paul teachers retirement fund association, 20.6 and the executive director of the Minneapolis teachers 20.7 retirement fund association must consult with the task force 20.8 established under Laws 2001, First Special Session chapter 10, 20.9 article 11, section 20, and must provide the commission-retained 20.10 actuary with all necessary information requested for the 20.11 preparation of this report. 20.12 Subd. 4. [COSTS.] The cost of the actuarial valuation 20.13 report mandated in this section will be paid by the pension 20.14 funds named in this legislation. The cost must be allocated 20.15 equally between the four pension funds. The executive director 20.16 of the Minneapolis teachers retirement fund association shall 20.17 serve as the fiscal agent for this study, shall pay its cost, 20.18 and shall be reimbursed by the other three retirement funds for 20.19 their appropriate share. 20.20 Subd. 5. [FILING DATE.] The report must be filed by 20.21 January 15, 2004, with the chair of the legislative commission 20.22 on pensions and retirement, the chair of the senate committee on 20.23 state and local government operations, and the chair of the 20.24 house committee on government operations and veterans affairs 20.25 policy. 20.26 Sec. 3. [EFFECTIVE DATE.] 20.27 Sections 1 and 2 are effective the day following final 20.28 enactment. 20.29 ARTICLE 6 20.30 MINNEAPOLIS FIREFIGHTERS RELIEF 20.31 ASSOCIATION CHANGES 20.32 Section 1. Minnesota Statutes 2002, section 423C.08, is 20.33 amended to read: 20.34 423C.08 [MEMBER CONTRIBUTION REFUND TO BENEFICIARY UPON 20.35 DEATH.] 20.36 If an active, deferred, or retired member of the 21.1 association dies and no survivor benefit is payable, the 21.2 designated beneficiary of the decedent or, if none, the legal 21.3 representative of the estate of the decedent is entitled, upon 21.4 application, to a refund. The refund shall be an amount equal 21.5 to the member contributions to the credit of the decedent, plus 21.6 interest on those contributions at an annual compounded rate of 21.7 five percent from the first day of the month following the date 21.8 of the contribution to the first day of the month following the 21.9 date of death of the decedent, reduced by the sum of any service 21.10 pension or disability benefit previously paid by the fund to the 21.11 decedent. 21.12 Sec. 2. [INTENT.] 21.13 Section 1 is intended to bring the Minneapolis firefighters 21.14 relief association's statutory provision which provides for a 21.15 refund of member contributions where the decedent does not leave 21.16 a surviving spouse or children in conformance with Minnesota 21.17 Statutes 2002, section 423A.18. 21.18 Sec. 3. [EFFECTIVE DATE.] 21.19 Section 1 is effective retroactively from September 25, 21.20 2001. Section 2 is effective the day following final enactment. 21.21 ARTICLE 7 21.22 PLYMOUTH VOLUNTEER FIREFIGHTER RELIEF 21.23 ASSOCIATION CHANGES 21.24 Section 1. Laws 1978, chapter 685, section 1, as amended 21.25 by Laws 1979, chapter 201, section 41, is amended to read: 21.26 Section 1. [PLYMOUTH VOLUNTEER FIREFIGHTERS' RELIEF 21.27 ASSOCIATION.] 21.28 The bylaws of the Plymouth firefighter's relief association 21.29 may be amended to provide for payment of a disability pension in 21.30 an amountequal to $8.50 per month per year of service, to a21.31maximum of $255 per monthconsistent with the ancillary benefit 21.32 requirements specified in Minnesota Statutes, section 424A.02, 21.33 subdivision 9, to a firefighterqualified pursuant todetermined 21.34 to be disabled, as defined in the bylaws of the association and 21.35 under procedures specified in those bylaws. No member shall be 21.36 entitled to draw both a disability pension and a service pension. 22.1 Sec. 2. Laws 1978, chapter 685, section 2, is amended to 22.2 read: 22.3 Sec. 2. The Plymouth firefighter's relief association may 22.4 provide for a benefit to the surviving spouse of a volunteer 22.5 firefighter who died, providing that the surviving spouse 22.6 qualifies under the terms of the bylaws, such benefit to be paid22.7as the bylaws of the association may provide, except that the22.8bylaws may not provide for a spouse's benefit of more than22.9$127.50 per month, and provided the benefit shall cease as of22.10the date of the spouse's remarriageand the benefit is 22.11 consistent with ancillary benefit requirements specified in 22.12 Minnesota Statutes, section 424A.02, subdivision 9. 22.13 Sec. 3. Laws 1978, chapter 685, section 3, is amended to 22.14 read: 22.15 Sec. 3. The Plymouth firefighter's relief association may 22.16 pay a pension for the children of deceased members, as the 22.17 association's bylaws may provide, consistent with ancillary 22.18 benefit requirements specified in Minnesota Statutes, section 22.19 424A.02, subdivision 9. 22.20 Sec. 4. Laws 1978, chapter 685, section 6, is amended to 22.21 read: 22.22 Sec. 6. (a) The bylaws of the Plymouth firefighter's 22.23 relief association may further provide that when any active or 22.24 deferred member of the association or anypensioner who is a22.25former memberdisabilitant or service pension recipient dies, 22.26 there may be paid a death or funeral benefit to defray or assist 22.27 the family of the deceased with funeral expenses. 22.28 (b) A benefit paid under this section due to the death of 22.29 an active or deferred member must conform to Minnesota Statutes, 22.30 section 424A.02, subdivision 9. 22.31 (c) A death or funeral benefit may be paid under this 22.32 section to the family of a deceased disabilitant or service 22.33 pensioner notwithstanding Minnesota Statutes, section 424A.02, 22.34 subdivision 9, providing that liabilities relating to this 22.35 benefit are recognized in determinations of actuarial condition 22.36 and funding costs, as determined under section 69.772 or 69.773, 23.1 whichever is applicable. Notwithstanding any law to the 23.2 contrary, the association is authorized to use a load factor or 23.3 factors to recognize liabilities relating to funeral or death 23.4 benefits paid to the family of a deceased disabilitant or 23.5 service pensioner. Benefits are not payable under this 23.6 paragraph if the city council does not approve the load factor 23.7 or factors used in determinations of actuarial conditions and 23.8 funding costs. 23.9 Sec. 5. [REPEALER.] 23.10 Laws 1978, chapter 685, section 5, is repealed. 23.11 Sec. 6. [EFFECTIVE DATE.] 23.12 Sections 1 to 5 are effective on the day after the date on 23.13 which the Plymouth city council and the chief clerical officer 23.14 of the city of Plymouth complete in a timely manner their 23.15 compliance with Minnesota Statutes, section 645.021, 23.16 subdivisions 2 and 3. 23.17 ARTICLE 8 23.18 VOLUNTEER FIREFIGHTER RELIEF 23.19 ASSOCIATION CHANGES 23.20 Section 1. Minnesota Statutes 2002, section 424A.02, 23.21 subdivision 3, is amended to read: 23.22 Subd. 3. [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) Annually 23.23 on or before August 1of each yearas part of the certification 23.24 of the financial requirements and minimum municipal 23.25 obligationmade pursuant todetermined under section 69.772, 23.26 subdivision 4, or 69.773, subdivision 5, as applicable, the 23.27 secretary or some other official of the relief association 23.28 designated in the bylaws of each relief association shall 23.29 calculate and certify to the governing body of the applicable 23.30 qualified municipality the average amount of available financing 23.31 per active covered firefighter for the most recent three-year 23.32 period. The amount of available financing shall include any 23.33 amounts of fire state aid received or receivable by the relief 23.34 association, any amounts of municipal contributions to the 23.35 relief association raised from levies on real estate or from 23.36 other available revenue sources exclusive of fire state aid, and 24.1 one-tenth of the amount of assets in excess of the accrued 24.2 liabilities of the relief association calculatedpursuant to24.3sectionsunder section 69.772, subdivision 2; 69.773, 24.4 subdivisions 2 and 4; or 69.774, subdivision 2, if any. 24.5 (b) The maximum service pension which the relief 24.6 association has authority to provide for in its bylaws for 24.7 payment to a member retiring after the calculation date when the 24.8 minimum age and service requirements specified in subdivision 1 24.9 are met must be determined using the table in paragraph (c) or 24.10 (d), whichever applies. 24.11 (c) For a relief association where the governing bylaws 24.12 provide for a monthly service pension to a retiring member, the 24.13 maximum monthly service pension amount per month for each year 24.14 of service credited that may be provided for in the bylaws is 24.15 the maximum service pension figure corresponding to the average 24.16 amount of available financing per active covered firefighter: 24.17 Minimum Average Amount of Maximum Service Pension 24.18 Available Financing per Amount Payable per Month 24.19 Firefighter for Each Year of Service 24.20 $... $ .25 24.21 42 .50 24.22 84 1.00 24.23 126 1.50 24.24 168 2.00 24.25 209 2.50 24.26 252 3.00 24.27 294 3.50 24.28 335 4.00 24.29 378 4.50 24.30 420 5.00 24.31 503 6.00 24.32 587 7.00 24.33 672 8.00 24.34 755 9.00 24.35 839 10.00 24.36 923 11.00 25.1 1007 12.00 25.2 1090 13.00 25.3 1175 14.00 25.4 1259 15.00 25.5 1342 16.00 25.6 1427 17.00 25.7 1510 18.00 25.8 1594 19.00 25.9 1677 20.00 25.10 1762 21.00 25.11 1845 22.00 25.12 1888 22.50 25.13 1929 23.00 25.14 2014 24.00 25.15 2098 25.00 25.16 2183 26.00 25.17 2267 27.00 25.18 2351 28.00 25.19 2436 29.00 25.20 2520 30.00 25.21 2604 31.00 25.22 2689 32.00 25.23 2773 33.00 25.24 2857 34.00 25.25 2942 35.00 25.26 3026 36.00 25.27 3110 37.00 25.2839633194 38.00 25.2940473278 39.00 25.3041373362 40.00 25.31Effective beginning December 31, 2000:25.3242273446 41.00 25.3343173530 42.00 25.3444073614 43.00 25.3544973698 44.00 25.36Effective beginning December 31, 2001:26.145873782 45.00 26.246773866 46.00 26.347673950 47.00 26.448574034 48.00 26.5Effective beginning December 31, 2002:26.649474118 49.00 26.750374202 50.00 26.851274286 51.00 26.952174370 52.00 26.10 Effective beginning December 31, 2003: 26.1153074454 53.00 26.1253974538 54.00 26.1354874622 55.00 26.1455774706 56.00 26.15 (d) For a relief association in which the governing bylaws 26.16 provide for a lump sum service pension to a retiring member, the 26.17 maximum lump sum service pension amount for each year of service 26.18 credited that may be provided for in the bylaws is the maximum 26.19 service pension figure corresponding to the average amount of 26.20 available financing per active covered firefighter for the 26.21 applicable specified period: 26.22 Minimum Average Amount Maximum Lump Sum Service 26.23 of Available Financing Pension Amount Payable 26.24 per Firefighter for Each Year of Service 26.25 $.. $10 26.26 11 20 26.27 16 30 26.28 23 40 26.29 27 50 26.30 32 60 26.31 43 80 26.32 54 100 26.33 65 120 26.34 77 140 26.35 86 160 26.36 97 180 27.1 108 200 27.2 131 240 27.3 151 280 27.4 173 320 27.5 194 360 27.6 216 400 27.7 239 440 27.8 259 480 27.9 281 520 27.10 302 560 27.11 324 600 27.12 347 640 27.13 367 680 27.14 389 720 27.15 410 760 27.16 432 800 27.17 486 900 27.18 540 1000 27.19 594 1100 27.20 648 1200 27.21 702 1300 27.22 756 1400 27.23 810 1500 27.24 864 1600 27.25 918 1700 27.26 972 1800 27.27 1026 1900 27.28 1080 2000 27.29 1134 2100 27.30 1188 2200 27.31 1242 2300 27.32 1296 2400 27.33 1350 2500 27.34 1404 2600 27.35 1458 2700 27.36 1512 2800 28.1 1566 2900 28.2 1620 3000 28.3 1672 3100 28.4 1726 3200 28.5 1753 3250 28.6 1780 3300 28.7 1820 3375 28.8 1834 3400 28.9 1888 3500 28.10 1942 3600 28.11 1996 3700 28.12 2023 3750 28.13 2050 3800 28.14 2104 3900 28.15 2158 4000 28.16 2212 4100 28.17 2265 4200 28.18 2319 4300 28.19 2373 4400 28.20 2427 4500 28.21 2481 4600 28.22 2535 4700 28.23 2589 4800 28.24 2643 4900 28.25 2697 5000 28.26 2751 5100 28.27 2805 5200 28.28 2859 5300 28.29 2913 5400 28.30 2967 5500 28.31Effective beginning December 31, 2000:28.32 3021 5600 28.33 3075 5700 28.34 3129 5800 28.35 3183 5900 28.36 3237 6000 29.1Effective beginning December 31, 2001:29.2 3291 6100 29.3 3345 6200 29.4 3399 6300 29.5 3453 6400 29.6 3507 6500 29.7Effective beginning December 31, 2002:29.8 3561 6600 29.9 3615 6700 29.10 3669 6800 29.11 3723 6900 29.12 3777 7000 29.13 Effective beginning December 31, 2003: 29.14 3831 7100 29.15 3885 7200 29.16 3939 7300 29.17 3993 7400 29.18 4047 7500 29.19 (e) For a relief association in which the governing bylaws 29.20 provide for a monthly benefit service pension as an alternative 29.21 form of service pension payment to a lump sum service pension, 29.22 the maximum service pension amount for each pension payment type 29.23 must be determined using the applicable table contained in this 29.24 subdivision. 29.25 (f) If a relief association establishes a service pension 29.26 in compliance with the applicable maximum contained in paragraph 29.27 (c) or (d) and the minimum average amount of available financing 29.28 per active covered firefighter is subsequently reduced because 29.29 of a reduction in fire state aid or because of an increase in 29.30 the number of active firefighters, the relief association may 29.31 continue to provide the prior service pension amount specified 29.32 in its bylaws, but may not increase the service pension amount 29.33 until the minimum average amount of available financing per 29.34 firefighter under the table in paragraph (c) or (d), whichever 29.35 applies, permits. 29.36 (g) No relief association is authorized to provide a 30.1 service pension in an amount greater than the largest applicable 30.2 flexible service pension maximum amount even if the amount of 30.3 available financing per firefighter is greater than the 30.4 financing amount associated with the largest applicable flexible 30.5 service pension maximum. 30.6 Sec. 2. [BENEFIT RATIFICATION; WHITE BEAR LAKE.] 30.7 Notwithstanding Minnesota Statutes, section 424A.02, 30.8 subdivisions 3 and 3a, to the contrary, the service pension 30.9 amounts specified in the bylaws of the White Bear Lake fire 30.10 department relief association following bylaw amendments in 30.11 January 1999 and prior to the effective date of this section are 30.12 ratified. 30.13 Sec. 3. [EFFECTIVE DATE.] 30.14 Sections 1 and 2 are effective the day following final 30.15 enactment. 30.16 ARTICLE 9 30.17 LOCAL RETIREMENT CHANGES 30.18 Section 1. Minnesota Statutes 2002, section 383B.49, is 30.19 amended to read: 30.20 383B.49 [SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF 30.21 SHARES.] 30.22 When requested to do so, in writing, on forms provided by 30.23 the county, by a participant, surviving spouse, a guardian of a 30.24 surviving child or a personal representative, whichever is 30.25 applicable, the county of Hennepin shall redeem shares in the 30.26 accounts of the Minnesota supplemental investment fund standing 30.27 in a participant's share account record under the following 30.28 circumstances and in accordance with the laws and regulations 30.29 governing the Minnesota supplemental investment fund: 30.30 (1) A participant who is no longer employed by the county 30.31 of Hennepin is entitled to receive the cash realized on the 30.32 redemption of the shares to the credit of the participant's 30.33 share account record of the person. The participant may request 30.34 the redemption of all or a portion of the shares in the 30.35 participant's share account record of the person, but may not 30.36 request more than one redemption in any one calendar year. If 31.1 only a portion of the shares in the participant's share account 31.2 record is requested to be redeemed the person may request to 31.3 redeem not less than 20 percent of the shares in any one 31.4 calendar year and the redemption must be completed in no more 31.5 than five years. An election is irrevocable except that a 31.6 participant may request an amendment of the election to redeem 31.7 all of the person's remaining shares. All requests under this 31.8 paragraph are subject to application to and approval of the 31.9 Hennepin countyboardadministrator, initsthe sole 31.10 discretion of the administrator. 31.11 (2) In the event of the death of a participant leaving a 31.12 surviving spouse, the surviving spouse is entitled to receive 31.13 the cash realized on the redemption of all or a portion of the 31.14 shares in the participant's share account record of the deceased 31.15 spouse, but in no event may the spouse request more than one 31.16 redemption in each calendar year. If only a portion of the 31.17 shares in the participant's share account record is requested to 31.18 be redeemed, the surviving spouse may request the redemption of 31.19 not less than 20 percent of the shares in any one calendar 31.20 year. Redemption must be completed in no more than five years. 31.21 An election is irrevocable except that the surviving spouse may 31.22 request an amendment of the election to redeem all of the 31.23 participant's remaining shares. All requests under this 31.24 paragraph are subject to application to and approval of the 31.25 Hennepin countyboardadministrator, initsthe sole 31.26 discretion of the administrator. Upon the death of the 31.27 surviving spouse, any shares remaining in the participant's 31.28 share account record must be redeemed by the county of Hennepin 31.29 and the cash realized from the redemption distributed to the 31.30 estate of the surviving spouse. 31.31 (3) In the event of the death of a participant leaving no 31.32 surviving spouse, but leaving a minor surviving child or minor 31.33 surviving children, the guardianship estate of the minor child 31.34 is, or the guardianship estates of the minor children are, 31.35 entitled to receive the cash realized on the redemption of all 31.36 shares to the credit of the participant's share account record 32.1 of the deceased participant. In the event of minor surviving 32.2 children, the cash realized must be paid in equal shares to the 32.3 guardianship estates of the minor surviving children. 32.4 (4) In the event of the death of a participant leaving no 32.5 surviving spouse and no minor surviving children, the estate of 32.6 the deceased participant is entitled to receive the cash 32.7 realized on the redemption of all shares to the credit of the 32.8 participant's share account record of the deceased participant. 32.9 Sec. 2. Minnesota Statutes 2002, section 383B.493, is 32.10 amended to read: 32.11 383B.493 [WITHDRAWAL FROM PARTICIPATION.] 32.12 Notwithstanding Laws 1982, chapter 450, or any other law to 32.13 the contrary, a Hennepin county employee participating in the 32.14 Hennepin county supplemental retirement program pursuant to Laws 32.15 1982, chapter 450 may, in the event of an unforeseeable 32.16 emergency, apply to the county to discontinue participation in 32.17 the program. Employees who are no longer participating in the 32.18 program may apply for the redemption of all shares credited to 32.19 their share account record. Applications are subject to 32.20 approval of the Hennepin countyboard of commissioners32.21 administrator initsthe sole discretion of the administrator. 32.22 For the purposes of this section, the term "unforeseeable 32.23 emergency" shall mean a severe financial hardship to the 32.24 participant resulting from a sudden and unexpected illness or 32.25 accident of the participant or a person dependent upon the 32.26 participant, loss of participant's property due to casualty, or 32.27 other similar extraordinary and unforeseeable circumstances 32.28 arising as a result of events beyond the control of the 32.29 participant. Applications based on foreseeable expenditures 32.30 normally budgetable shall not be approved. A participant 32.31 exercising the option provided by this section shall be 32.32 ineligible for further participation in the supplemental 32.33 retirement program. 32.34 Sec. 3. [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 32.35 HOC POSTRETIREMENT ADJUSTMENT.] 32.36 In addition to the current pensions and other retirement 33.1 benefits payable, the pensions and retirement benefits payable 33.2 to retired police officers and firefighters and their surviving 33.3 spouses by the Eveleth police and fire trust fund are increased 33.4 by $100 per month. Increases are retroactive from January 1, 33.5 2003. 33.6 Sec. 4. [MARSHALL VOLUNTEER FIRE.] 33.7 Notwithstanding any provision of Minnesota Statutes, 33.8 section 424A.02, subdivision 7, or other law to the contrary, as 33.9 a pilot project, the Marshall volunteer firefighter relief 33.10 association may amend its bylaws to pay interest on deferred 33.11 lump sum payment pensions based on a rate determined annually by 33.12 the board of trustees based on the actual time weighted total 33.13 rate of return investment performance of the special fund as 33.14 reported by the office of the state auditor under Minnesota 33.15 Statutes, section 356.219, up to five percent, and applied 33.16 consistently for all deferred service pensioners. 33.17 Sec. 5. [EFFECTIVE DATE.] 33.18 (a) Sections 1 and 2 are effective upon approval by the 33.19 Hennepin county board of commissioners and compliance with 33.20 Minnesota Statutes, section 645.021. 33.21 (b) Section 3 is effective the day after the date on which 33.22 the Eveleth city council and the chief clerical officer of the 33.23 city of Eveleth comply with Minnesota Statutes, section 645.021, 33.24 subdivisions 2 and 3. 33.25 (c) Section 4 is effective the day after the date on which 33.26 the Marshall city council and the chief clerical officer of the 33.27 city of Marshall comply with Minnesota Statutes, section 33.28 645.021, subdivisions 2 and 3. 33.29 ARTICLE 10 33.30 PRIOR SERVICE CREDIT PURCHASE PROVISIONS 33.31 Section 1. Laws 2000, chapter 461, article 19, section 6, 33.32 is amended to read: 33.33 Sec. 6. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 33.34 UNCREDITED TEACHING SERVICE PERIODS.] 33.35 (a) An eligible person described in paragraph (b) is 33.36 entitled to purchase allowable service credit from the 34.1 Minneapolis teachers retirement fund association basic program 34.2 for the periods of teaching employment specified in paragraph 34.3 (c) by making the payment required under Minnesota Statutes, 34.4 section 356.55. 34.5 (b) An eligible person is a person who: 34.6 (1) was employed by special school district No. 1 34.7 (Minneapolis) as a long call reserve teacher from October 1972 34.8 to June 1973 and was covered by the Minneapolis employees 34.9 retirement fund; 34.10 (2) was employed by special school district No. 1 34.11 (Minneapolis) as a school social worker at Franklin junior high 34.12 school from August 28, 1973, through June 12, 1974, and from 34.13 August 29, 1974, through June 11, 1975, without retirement 34.14 coverage; 34.15 (3) was employed by special school district No. 1 34.16 (Minneapolis) as a school social worker at North high school 34.17 from August 29, 1975, through December 19, 1975, covered by the 34.18 Minneapolis teachers retirement fund association; 34.19 (4) was retained by special school district No. 1 34.20 (Minneapolis) in the capacity of a school social worker at North 34.21 high school as an hourly wage social worker from August 1976 34.22 through June 1983 without retirement coverage; and 34.23 (5) is currently employed by Hennepin county covered by the 34.24 public employees retirement association. 34.25 (c) The periods for allowable service credit purchase are 34.26 August 28, 1973, through June 12, 1974; and August 29, 1974, 34.27 through June 11, 1975. 34.28 (d) An eligible person must provide any relevant 34.29 documentation related to eligibility to make this service credit 34.30 purchase required by the executive director of the Minneapolis 34.31 teachers retirement fund association. 34.32 (e) Allowable service credit for the purchase periods must 34.33 be granted by the Minneapolis teachers retirement fund 34.34 association to the account of the eligible person upon receipt 34.35 of the prior service credit purchase payment amount. Authority 34.36 provided by this section is voided if payment is not made before 35.1 December 31, 2003, or before commencing receipt of an annuity 35.2 from the Minneapolis teachers retirement fund association, 35.3 whichever is earlier. 35.4 (f) The prior service credit purchase paymentamount shall35.5be computed by the actuary retained by the legislative35.6commission on pensions and retirement. Thatcomputation must 35.7 give recognition, in applying the process stated in Minnesota 35.8 Statutes, section 356.55,give recognitionto the liabilities 35.9 that would be created in the Minneapolis teachers retirement 35.10 fund association and other Minnesota public pension funds due to 35.11 the service credit purchase. 35.12 (g) Following receipt of that purchase payment amount, the 35.13 executive director of the Minneapolis teachers retirement fund 35.14 association shall allocate and transmit that amount to the 35.15 applicable pension administrations, as determined under 35.16 paragraph (f). 35.17 Sec. 2. [TEACHERS RETIREMENT ASSOCIATION; SERVICE CREDIT 35.18 PURCHASE FOR SABBATICAL LEAVES.] 35.19 (a) Notwithstanding Minnesota Statutes, section 354.092, or 35.20 any other law to the contrary, an eligible person described in 35.21 paragraph (b) is entitled to purchase not more than three years 35.22 of allowable service credit from the teachers retirement 35.23 association for sabbatical leave as defined in Minnesota 35.24 Statutes, section 122A.49. 35.25 (b) An eligible person is a person who: 35.26 (1) worked as a teacher for independent school district No. 35.27 191, Burnsville-Eagan-Savage; 35.28 (2) was on sabbatical leave at some time between January 1, 35.29 1982, and December 31, 1989; and 35.30 (3) did not receive service credit for time on sabbatical 35.31 leave because the leave was not properly reported to the 35.32 teachers retirement association. 35.33 (c) An eligible person described in paragraph (b) must 35.34 apply with the executive director of the teachers retirement 35.35 association to make a service credit purchase under this 35.36 section. The application must be in writing and must include 36.1 all necessary documentation of the applicability of this section 36.2 and any other relevant information that the executive director 36.3 may require. 36.4 (d) Allowable service credit for the purchase periods must 36.5 be granted by the teachers retirement association to the account 36.6 of an eligible person upon receipt of the portion of the prior 36.7 service credit purchase payment amount payable under paragraph 36.8 (e) in a lump sum by the applicable eligible person. 36.9 (e) Notwithstanding Minnesota Statutes, section 356.55 or 36.10 356.551, whichever is applicable, an eligible person may pay 36.11 before September 1, 2003, or the date of termination from 36.12 service, whichever is earlier, an amount equal to the employee 36.13 contribution rate or rates in effect during the applicable 36.14 sabbatical leave period or periods specified in paragraph (b) 36.15 applied to the actual salary rate or rates in effect during that 36.16 period or periods, plus annual compound interest at the rate of 36.17 8.5 percent from the midpoint of each applicable sabbatical 36.18 leave period, to the date on which the payment is actually 36.19 made. Independent school district No. 191 must pay the 36.20 remaining balance of the prior service credit purchase payment 36.21 amount calculated under Minnesota Statutes, section 356.55 or 36.22 356.551, whichever is applicable, within 30 days of the payment 36.23 by an eligible person. The executive director of the teachers 36.24 retirement association must notify the superintendent of 36.25 independent school district No. 191 of its payment amount and 36.26 payment due date if an eligible person makes the required 36.27 payment. 36.28 (f) If independent school district No. 191 fails to pay its 36.29 portion of the required prior service credit purchase payment 36.30 amount, the executive director of the teachers retirement 36.31 association must notify the commissioner of finance of that fact 36.32 and the commissioner of finance must order that the required 36.33 employer payment be deducted from the next subsequent payment or 36.34 payments of state education aid to the school district and be 36.35 transmitted to the teachers retirement association. 36.36 Sec. 3. [EFFECTIVE DATE.] 37.1 This article is effective the day following final enactment.