SF 1139

as introduced - 89th Legislature (2015 - 2016) Posted on 09/03/2015 03:40pm

A bill for an act
relating to retirement; modifying the Public Employees Retirement Association
general plan provisions; merging the Minneapolis employees retirement fund
division into the general employees retirement plan; eliminating obsolete
language resulting from the merger; amending Minnesota Statutes 2014, sections
256D.21; 353.01, subdivisions 2a, 6, 48; 353.03, subdivision 1; 353.05; 353.06;
353.27, subdivisions 1, 3b, by adding a subdivision; 353.34, subdivision
1; 353.37, subdivision 1; 353.46, subdivisions 2, 6; 353.50, subdivision 6;
353.505; 356.214, subdivision 1; 356.215, subdivision 11; 356.30, subdivision
3; 356.302, subdivision 7; 356.303, subdivision 4; 356.32, subdivision 2;
356.401, subdivision 3; 356.407, subdivision 2; 356.415, subdivision 2; 356.461,
subdivision 2; 356.465, subdivision 3; 480.181, subdivision 2; repealing
Minnesota Statutes 2014, sections 353.01, subdivision 49; 353.27, subdivision
1a; 353.50, subdivisions 1, 2, 3, 4, 5, 7, 8, 9, 10; 354.71.

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

Section 1.

Minnesota Statutes 2014, section 256D.21, is amended to read:

256D.21 CONTINUATION OF BENEFITS; FORMER MINNEAPOLIS
EMPLOYEES.

Subdivision 1.

Continuation of benefits.

Each employee of the city of Minneapolis
who deleted text begin is deleted text end new text begin was new text end transferred to and employed by the county under the provisions of section
256D.20 and who deleted text begin is deleted text end new text begin was new text end a contributing member of a retirement system organized under
the provisions of Minnesota Statutes 2008, chapter 422A, is a member of the deleted text begin MERF
division of the deleted text end Public Employees Retirement Association and is entitled to all of the
applicable benefits conferred by and new text begin is new text end subject to all the restrictions of section 353.50.

Subd. 2.

City obligation.

The cost to the public of that portion of the retirement
allowances or other benefits accrued while any such employee was in the service of the city
of Minneapolis must remain an obligation of the city and a tax must be levied and collected
by it to discharge its obligation as provided in section deleted text begin 353.50 deleted text end new text begin 353.27 new text end , subdivision deleted text begin 7 deleted text end new text begin 3c new text end .

Subd. 3.

County obligation.

The cost to the public of the retirement allowances or
other benefits accruing to employees so transferred to and employed by the county is the
obligation of and paid by the county in section deleted text begin 353.50 deleted text end new text begin 353.27 new text end , subdivision deleted text begin 7 deleted text end new text begin 3c new text end . The county
shall pay to the general employees retirement fund of the Public Employees Retirement
Association those amounts. The cost to the public of the retirement coverage under this
section must be paid from the county revenue fund by the county auditor, and the county
board is authorized to levy and collect such taxes as may be necessary to pay such costs.

Sec. 2.

Minnesota Statutes 2014, section 353.01, subdivision 2a, is amended to read:

Subd. 2a.

Included employees; mandatory membership.

(a) Public employees
whose annual salary from one governmental subdivision is stipulated in advance to exceed
$5,100 if the person is not a school year employee or $3,800 if the person is a school year
employee and who are not specifically excluded under subdivision 2b or who have not
been provided an option to participate under subdivision 2d, whether individually or by
action of the governmental subdivision, must participate as members of the association
with retirement coverage by the general employees retirement plan under this chapter,
the public employees police and fire retirement plan under this chapter, or the local
government correctional employees retirement plan under chapter 353E, whichever
applies. Membership commences as a condition of their employment on the first day of
their employment or on the first day that the eligibility criteria are met, whichever is later.
Public employees include but are not limited to:

(1) persons whose salary meets the threshold in this paragraph from employment in
one or more positions within one governmental subdivision;

(2) elected county sheriffs;

(3) persons who are appointed, employed, or contracted to perform governmental
functions that by law or local ordinance are required of a public officer, including, but
not limited to:

(i) town and city clerk or treasurer;

(ii) county auditor, treasurer, or recorder;

(iii) city manager as defined in section 353.028 who does not exercise the option
provided under subdivision 2d; or

(iv) emergency management director, as provided under section 12.25;

(4) physicians under section 353D.01, subdivision 2, who do not elect public
employees defined contribution plan coverage under section 353D.02, subdivision 2;

(5) full-time employees of the Dakota County Agricultural Society;

(6) employees of the Red Wing Port Authority who were first employed by the
Red Wing Port Authority before May 1, 2011, and who are not excluded employees
under subdivision 2b;

(7) employees of the Seaway Port Authority of Duluth who are not excluded
employees under subdivision 2b;

(8) employees of the Stevens County Housing and Redevelopment Authority who
were first employed by the Stevens County Housing and Redevelopment Authority before
May 1, 2014, and who are not excluded employees under subdivision 2b; and

(9) employees of the Public Employees Retirement Association.

(b) A public employee or elected official who was a member of the association on
June 30, 2002, based on employment that qualified for membership coverage by the public
employees retirement plan or the public employees police and fire plan under this chapter,
or the local government correctional employees retirement plan under chapter 353E as of
June 30, 2002, retains that membership for the duration of the person's employment in that
position or incumbency in elected office. Except as provided in subdivision 28, the person
shall participate as a member until the employee or elected official terminates public
employment under subdivision 11a or terminates membership under subdivision 11b.

(c) If in any subsequent year the annual salary of an included public employee is
less than the minimum salary threshold specified in this subdivision, the member retains
membership eligibility.

(d) For the purpose of participation in the deleted text begin MERF division of the deleted text end general employees
retirement plan, public employees include employees who were members of the former
Minneapolis Employees Retirement Fund on June 29, 2010 deleted text begin , and who participate as
members of the MERF division of the association deleted text end .

Sec. 3.

Minnesota Statutes 2014, section 353.01, subdivision 6, is amended to read:

Subd. 6.

Governmental subdivision.

(a) "Governmental subdivision" means a
county, city, town, school district within this state, or a department, unit or instrumentality
of state or local government, or any public body established under state or local
authority that has a governmental purpose, is under public control, is responsible for the
employment and payment of the salaries of employees of the entity, and receives a major
portion of its revenues from taxation, fees, assessments or from other public sources.

(b) Governmental subdivision also means the Public Employees Retirement
Association, the League of Minnesota Cities, the Association of Metropolitan
Municipalities, charter schools formed under section 124D.10, service cooperatives
exercising retirement plan participation under section 123A.21, subdivision 5, joint
powers boards organized under section 471.59, subdivision 11, paragraph (a), family
service collaboratives and children's mental health collaboratives organized under
section 471.59, subdivision 11, paragraph (b) or (c), provided that the entities creating
the collaboratives are governmental units that otherwise qualify for retirement plan
membership, public hospitals owned or operated by, or an integral part of, a governmental
subdivision or governmental subdivisions, the Association of Minnesota Counties, the
Minnesota Inter-county Association, the Minnesota Municipal Utilities Association, the
Metropolitan Airports Commission, the University of Minnesota with respect to police
officers covered by the public employees police and fire retirement plan, deleted text begin the Minneapolis
Employees Retirement Fund for employment initially commenced after June 30, 1979, deleted text end the
Range Association of Municipalities and Schools, soil and water conservation districts,
economic development authorities created or operating under sections 469.090 to 469.108,
the Port Authority of the city of St. Paul, the Seaway Port Authority of Duluth, the Red
Wing Port Authority, the Spring Lake Park Fire Department, incorporated, the Lake
Johanna Volunteer Fire Department, incorporated, the Red Wing Environmental Learning
Center, the Dakota County Agricultural Society, and Hennepin Healthcare System, Inc.

(c) Governmental subdivision does not mean any municipal housing and
redevelopment authority organized under the provisions of sections 469.001 to 469.047;
or any port authority organized under sections 469.048 to 469.089 other than the Port
Authority of the city of St. Paul or the Seaway Port Authority of Duluth and other than
the Red Wing Port Authority; or any hospital district organized or reorganized prior to
July 1, 1975, under sections 447.31 to 447.37 or the successor of the district; or the board
of a family service collaborative or children's mental health collaborative organized
under sections 124D.23, 245.491 to 245.495, or 471.59, if that board is not controlled
by representatives of governmental units.

(d) A nonprofit corporation governed by chapter 317A or organized under Internal
Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a
governmental subdivision unless the entity has obtained a written advisory opinion from
the United States Department of Labor or a ruling from the Internal Revenue Service
declaring the entity to be an instrumentality of the state so as to provide that any future
contributions by the entity on behalf of its employees are contributions to a governmental
plan within the meaning of Internal Revenue Code, section 414(d).

(e) A public body created by state or local authority may request membership on
behalf of its employees by providing sufficient evidence that it meets the requirements in
paragraph (a).

(f) An entity determined to be a governmental subdivision is subject to the reporting
requirements of this chapter upon receipt of a written notice of eligibility from the
association.

Sec. 4.

Minnesota Statutes 2014, section 353.01, subdivision 48, is amended to read:

Subd. 48.

MERF deleted text begin division deleted text end .

"MERF deleted text begin division deleted text end " means the deleted text begin separate retirement
plan within deleted text end new text begin former Minneapolis Employees Retirement Fund of which the actuarial
liabilities and assets are merged with new text end the general employees retirement plan of the Public
Employees Retirement Association deleted text begin containing deleted text end new text begin , and the benefits of which are governed by new text end
the applicable provisions of Minnesota Statutes 2008, chapter 422A.

Sec. 5.

Minnesota Statutes 2014, section 353.03, subdivision 1, is amended to read:

Subdivision 1.

Management; composition; election.

(a) The management of the
Public Employees Retirement Association is vested in an 11-member board of trustees
consisting of ten members and the state auditor. The state auditor may designate a deputy
auditor with expertise in pension matters as the auditor's representative on the board.
The governor shall appoint five trustees to four-year terms, one of whom deleted text begin shall deleted text end new text begin must new text end be
designated to represent school boards, one to represent cities, one to represent counties,
one who is a retired annuitant, and one who is a public member knowledgeable in pension
matters. The membership of the association, including recipients of retirement annuities
and disability and survivor benefits, shall elect five trustees for terms of four years deleted text begin , deleted text end new text begin . new text end One
of deleted text begin whom deleted text end new text begin the trustees new text end must be a member of the police and fire fund deleted text begin and deleted text end new text begin . new text end One of deleted text begin whom deleted text end new text begin
the trustees new text end must be new text begin :
new text end

new text begin (1) new text end a former member who met the definition of public employee under section
353.01, subdivisions 2 and 2a, for at least five years prior to terminating membership and
who is receiving a retirement annuity deleted text begin or deleted text end new text begin ;
new text end

new text begin (2) new text end a member who receives a disability benefit new text begin ; or
new text end

new text begin (3) a member who retired from the former Minneapolis Retirement Fund Association
or from the former MERF division and was transferred to the general employees
retirement plan new text end .

Terms expire on January 31 of the fourth year, and positions are vacant until newly elected
members are seated. Except as provided in this subdivision, trustees elected by the
membership of the association must be public employees and members of the association.

(b) For seven days beginning October 1 of each year preceding a year in which an
election is held, the association shall accept filings of candidates for the board of trustees.
A candidate shall submit at the time of filing a nominating petition signed by 25 or more
members of the association. No name may be withdrawn from nomination by the nominee
after October 15. At the request of a candidate for an elected position on the board of
trustees, the board shall provide a statement of up to 300 words prepared by the candidate
to all persons eligible to vote in the election of the candidate. The board may adopt
policies and procedures to govern the form and length of these statements and the timing
and deadlines for submitting materials to be distributed to the eligible voters.

(c) By January 10 of each year in which elections are to be held, the board shall
distribute to the eligible voters the instructions and materials necessary to vote for the
candidates seeking terms on the board of trustees. Eligible voters are the members,
retirees, and other benefit recipients. No voter may vote for more than one candidate for
each board position to be filled. A vote for more than one person for any position is void.
No special marking may be used to indicate incumbents. Votes cast by using paper ballots
mailed to the association must be postmarked no later than January 31. Votes cast by using
telephone or other electronic means authorized under the board's procedures must be
entered by the end of the day on January 31. The design of the voting response media
must ensure that each voter's vote is secret.

(d) A candidate who receives contributions, who makes expenditures in excess
of $100, or who has given implicit or explicit consent for any other person to receive
contributions or make expenditures in excess of $100 for the purpose of bringing about the
candidate's election shall file a report with the campaign finance and public disclosure
board disclosing the source and amount of all contributions to the candidate's campaign.
The campaign finance and public disclosure board shall prescribe forms governing these
disclosures. Expenditures and contributions have the meaning defined in section 10A.01.
These terms do not include any distribution made by the association board on behalf of the
candidate. A candidate shall file a report within 30 days from the day that the results of
the election are announced. The Campaign Finance and Public Disclosure Board shall
maintain these reports and make them available for public inspection in the same manner
as the board maintains and makes available other reports filed with it.

(e) The secretary of state shall review and comment on the procedures defined by
the board of trustees for conducting the elections specified in this subdivision, including
board policies adopted under paragraph (b).

(f) The board of trustees and the executive director shall undertake their activities
consistent with chapter 356A.

Sec. 6.

Minnesota Statutes 2014, section 353.05, is amended to read:

353.05 CUSTODIAN OF FUNDS.

The commissioner of management and budget shall be ex officio treasurer of the
retirement funds of the association deleted text begin , including the MERF division, deleted text end and the general bond
of the commissioner of management and budget to the state must be so conditioned as
to cover all liability for acts as treasurer of these funds. All money of the association
received by the commissioner of management and budget must be set aside in the state
treasury to the credit of the proper fund or account. The commissioner of management
and budget shall transmit monthly to the executive director a detailed statement of all
amounts so received and credited to the funds deleted text begin , including the MERF division deleted text end . Payments
out of the funds deleted text begin , including the MERF division, deleted text end may only be made on warrants issued by
the commissioner of management and budget, upon abstracts signed by the executive
director; provided that abstracts for investment may be signed by the executive director of
the State Board of Investment.

Sec. 7.

Minnesota Statutes 2014, section 353.06, is amended to read:

353.06 STATE BOARD OF INVESTMENT TO INVEST FUNDS.

The executive director shall from time to time certify to the State Board of Investment
for investment such portions of the funds of the association deleted text begin , including the MERF division, deleted text end
as in the director's judgment may not be required for immediate use. The State Board of
Investment shall thereupon invest and reinvest the sum so certified, or transferred, in
such securities as are duly authorized as legal investments under section 11A.24 and has
authority to sell, convey, and exchange such securities and invest and reinvest the securities
when it deems it desirable to do so and shall sell securities upon request of the executive
director when such funds are needed for its purposes. All of the provisions regarding
accounting procedures and restrictions and conditions for the purchase and sale of securities
under chapter 11A must apply to the accounting, purchase and sale of securities for the
funds of the Public Employees Retirement Association deleted text begin , including the MERF division deleted text end .

Sec. 8.

Minnesota Statutes 2014, section 353.27, subdivision 1, is amended to read:

Subdivision 1.

Income; disbursements.

There is a special fund known as the
"general employees retirement fund," the "retirement fund," or the "fund," which must
include all the assets of the general employees retirement plan of the association. This
fund must be credited with all contributions, all interest and all other income of the
general employees retirement plan of the Public Employees Retirement Association that
are authorized by law. From this fund there is appropriated the payments authorized by
sections 353.01 to 353.46 new text begin and by Minnesota Statutes 2008, chapter 422A, new text end in the amounts
and at such time provided herein, including the expenses of administering the general
employees retirement plan and fund.

Sec. 9.

Minnesota Statutes 2014, section 353.27, subdivision 3b, is amended to read:

Subd. 3b.

Change in employee and employer contributions in certain instances.

(a) For purposes of this section:

(1) a contribution sufficiency exists if the total of the employee contribution under
subdivision 2, the employer contribution under subdivision 3, the additional employer
contribution under subdivision 3a, and any additional contribution previously imposed
under this subdivision exceeds the total of the normal cost, the administrative expenses,
and the amortization contribution of the general employees retirement plan as reported in
the most recent actuarial valuation of the retirement plan prepared by the actuary retained
under section 356.214 and prepared under section 356.215 and the standards for actuarial
work of the Legislative Commission on Pensions and Retirement; and

(2) a contribution deficiency exists if the total of the employee contributions under
subdivision 2, the employer contributions under subdivision 3, the additional employer
contribution under subdivision 3a, and any additional contribution previously imposed
under this subdivision is less than the total of the normal cost, the administrative expenses,
and the amortization contribution of the general employees retirement plan as reported in
the most recent actuarial valuation of the retirement plan prepared by the actuary retained
under section 356.214 and prepared under section 356.215 and the standards for actuarial
work of the Legislative Commission on Pensions and Retirement.

(b) Employee and employer contributions to the general employees retirement plan
under subdivisions 2 and 3 must be adjusted:

(1) if the regular actuarial valuation of the general employees retirement plan of the
Public Employees Retirement Association under section 356.215 indicates that there is a
contribution sufficiency under paragraph (a) greater than one percent of covered payroll
and that the sufficiency has existed for at least two consecutive years, the coordinated
program employee and employer contribution rates must be decreased as determined
under paragraph (c) to a level such that the sufficiency is no greater than one percent of
covered payroll based on the most recent actuarial valuation; or

(2) if the regular actuarial valuation of the general employees retirement plan of the
Public Employees Retirement Association under section 356.215 indicates that there is a
contribution deficiency equal to or greater than 0.5 percent of covered payroll and that the
deficiency has existed for at least two consecutive years, the coordinated program employee
and employer contribution rates must be increased as determined under paragraph (d) to a
level such that no deficiency exists based on the most recent actuarial valuation.

(c) If the actuarially required contribution of the general employees retirement plan is
less than the total support provided by the combined employee and employer contribution
rates under subdivisions 2, 3, and 3a, by more than one percent of covered payroll,
the general employees retirement plan coordinated program employee and employer
contribution rates under subdivisions 2 and 3 must be decreased incrementally over one or
more years by no more than 0.25 percent of pay each for employee and employer matching
contribution rates to a level such that there remains a contribution sufficiency of at least one
percent of covered payroll. No contribution rate decrease may be made until at least two
years have elapsed since any adjustment under this subdivision has been fully implemented.

(d) If the actuarially required contribution exceeds the total support provided by the
combined employee and employer contribution rates under subdivisions 2, 3, and 3a,
the employee and matching employer contribution rates must be increased equally to
eliminate that contribution deficiency. If the contribution deficiency is:

(1) less than two percent, the incremental increase may be up to 0.25 percent for the
general employees retirement plan employee and matching employer contribution rates;

(2) greater than 1.99 percent and less than 4.01 percent, the incremental increase
may be up to 0.5 percent for the employee and matching employer contribution rates; or

(3) greater than four percent, the incremental increase may be up to 0.75 percent for
the employee and matching employer contribution.

(e) The general employees retirement plan contribution sufficiency or deficiency
determination under paragraphs (a) to (d) must be made deleted text begin without the inclusion of deleted text end new text begin including
new text end the contributions deleted text begin to, the funded condition of, or the actuarial funding requirements of the
MERF division deleted text end new text begin credited under section 353.27, subdivision 3c, and state aid under section
353.505 new text end .

(f) Any recommended adjustment to the contribution rates must be reported to
the chair and the executive director of the Legislative Commission on Pensions and
Retirement by January 15 following the receipt of the most recent annual actuarial
valuation prepared under section 356.215. If the Legislative Commission on Pensions
and Retirement does not recommend against the rate change or does not recommend
a modification in the rate change, the recommended adjustment becomes effective for
any salary paid on or after the January 1 next following the legislative session in which
the Legislative Commission on Pensions and Retirement did not take any action to
disapprove or modify the Public Employees Retirement Association Board of Trustees'
recommendation to adjust the employee and employer rates.

(g) A contribution sufficiency of up to one percent of covered payroll must be held in
reserve to be used to offset any future actuarially required contributions that are more than
the total combined employee and employer contributions under subdivisions 2, 3, and 3a.

(h) Before any reduction in contributions to eliminate a sufficiency in excess of one
percent of covered pay may be recommended, the executive director must review any
need for a change in actuarial assumptions, as recommended by the actuary retained under
section 356.214 in the most recent experience study of the general employees retirement
plan prepared under section 356.215 and the standards for actuarial work promulgated by
the Legislative Commission on Pensions and Retirement that may result in an increase
in the actuarially required contribution and must report to the Legislative Commission
on Pensions and Retirement any recommendation by the board to use the sufficiency
exceeding one percent of covered payroll to offset the impact of an actuarial assumption
change recommended by the actuary retained under section 356.214, subdivision 1, and
reviewed by the actuary retained by the commission under section 356.214, subdivision 4.

(i) No contribution sufficiency in excess of one percent of covered pay may be
proposed to be used to increase benefits, and no benefit increase may be proposed that
would initiate an automatic adjustment to increase contributions under this subdivision.
Any proposed benefit improvement must include a recommendation, prepared by the
actuary retained under section 356.214, subdivision 1, and reviewed by the actuary
retained by the Legislative Commission on Pensions and Retirement as provided under
section 356.214, subdivision 4, on how the benefit modification will be funded.

Sec. 10.

Minnesota Statutes 2014, section 353.27, is amended by adding a subdivision
to read:

new text begin Subd. 3c. new text end

new text begin Former MERF members; member and employer contributions. new text end

new text begin (a)
For the period July 1, 2015, until June 30, 2031, the member contributions for former
members of the Minneapolis Employees Retirement Fund and by the former Minneapolis
Employees Retirement Fund-covered employing units are governed by this subdivision.
new text end

new text begin (b) The member contribution for a public employee who was a member of the
former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the
salary of the employee.
new text end

new text begin (c) The employer regular contribution with respect to a public employee who was
a member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is
9.75 percent of the salary of the employee.
new text end

new text begin (d) The employer additional contribution for any public employees who were
members of the former Minneapolis Employees Retirement Fund on June 29, 2010, is
2.68 percent of the salary of each applicable employee plus an annual amount equal to
the employing unit's share of $3,900,000 that was paid or was payable during calendar
year 2014.
new text end

new text begin (e) The employer supplemental contribution is the employing unit's share of $.......,
allocated between each employing unit in the portion equal to the unit's employer
supplemental contribution paid or payable under Minnesota Statutes 2012, section 353.50,
during calendar year 2014. The employer supplemental contribution amount for calendar
year 2015 must be invoiced by the executive director of the Public Employees Retirement
Association by July 1, 2015. The calendar year 2015 payment is payable in a single
amount on or before September 30, 2015. For subsequent calendar years, the employer
supplemental contribution must be invoiced on January 31 of each year and is payable
in two parts, with the first half payable on or before July 31 and with the second half
payable on or before December 15. Late payments are payable with compound interest at
the rate of 0.71 percent per month for each month or portion of a month that has elapsed
after the due date.
new text end

Sec. 11.

Minnesota Statutes 2014, section 353.34, subdivision 1, is amended to read:

Subdivision 1.

Refund or deferred annuity.

(a) A former member is entitled to
either a refund of accumulated employee deductions under subdivision 2, or to a deferred
annuity under subdivision 3. Application for a refund may not be made before the date of
termination of public service. A refund must be paid within 120 days following receipt
of the application unless the applicant has again become a public employee required
to be covered by the association.

(b) If an individual was placed on layoff under section 353.01, subdivision 12 or 12c,
a refund is not payable before termination of service under section 353.01, subdivision 11a.

(c) An individual who terminates public service covered by the Public Employees
Retirement Association general employees retirement plan, deleted text begin the MERF division deleted text end new text begin except
members of the former Minneapolis Employees Retirement Fund under section 353.01,
subdivision 2b, paragraph (d) new text end , the Public Employees Retirement Association police
and fire retirement plan, or the public employees local government correctional service
retirement plan, and who is employed by a different employer and who becomes an
active member covered by one of the other two plans, may receive a refund of employee
contributions plus annual compound interest from the plan from which the member
terminated service at the applicable rate specified in subdivision 2.

new text begin (d) Refunds payable to members of the former Minneapolis Employees Retirement
Fund under section 353.01, subdivision 2a, paragraph (d), are governed by Minnesota
Statutes 2008, chapter 422A.
new text end

Sec. 12.

Minnesota Statutes 2014, section 353.37, subdivision 1, is amended to read:

Subdivision 1.

Salary maximums.

(a) The annuity of a person otherwise eligible
for an annuity from the general employees retirement plan of the Public Employees
Retirement Association, the public employees police and fire retirement plan, or the local
government correctional employees retirement plan must be suspended under subdivision
2 or reduced under subdivision 3, whichever results in the higher annual annuity amount, if
the person reenters public service as a nonelective employee of a governmental subdivision
in a position covered by this chapter or returns to work as an employee of a labor
organization that represents public employees who are association members under this
chapter and salary for the reemployment service exceeds the annual maximum earnings
allowable for that age for the continued receipt of full benefit amounts monthly under the
federal Old Age, Survivors and Disability Insurance Program as set by the secretary of
health and human services under United States Code, title 42, section 403, in any calendar
year. If the person has not yet reached the minimum age for the receipt of Social Security
benefits, the maximum salary for the person is equal to the annual maximum earnings
allowable for the minimum age for the receipt of Social Security benefits.

(b) The provisions of paragraph (a) do not apply to the members of the new text begin general
employees plan of the Public Employees Retirement Association who were former
members of new text end MERF deleted text begin division deleted text end .

Sec. 13.

Minnesota Statutes 2014, section 353.46, subdivision 2, is amended to read:

Subd. 2.

Rights of deferred annuitant.

new text begin (a) new text end The entitlement of a deferred annuitant
or other former member of the general employees retirement plan of the Public Employees
Retirement Association, deleted text begin the Minneapolis Employees Retirement Fund division, deleted text end the
public employees police and fire retirement plan, or the local government correctional
employees retirement plan to receive an annuity under the law in effect at the time the
person terminated public service is herein preserved. The provisions of section 353.71,
subdivision 2, as amended by Laws 1973, chapter 753, apply to a deferred annuitant or
other former member who first begins receiving an annuity after July 1, 1973.

new text begin (b) The entitlement of a deferred annuitant or former member of the Minneapolis
Employees Retirement Fund, upon merger with the general employees retirement plan
of the Public Employees Retirement Association, continues under the provisions of
Minnesota Statutes 2008, section 422A.16.
new text end

Sec. 14.

Minnesota Statutes 2014, section 353.46, subdivision 6, is amended to read:

Subd. 6.

Computation of benefits for certain coordinated members.

Any
coordinated member of the general employees retirement plan of the Public Employees
Retirement Association who, before July 1, 1979, was a member of the former coordinated
program of the former Minneapolis Municipal Employees Retirement Fund and who,
before July 1, 1978, was a member of the basic program of the Minneapolis Municipal
Employees Retirement Fund is entitled to receive a retirement annuity when otherwise
qualified, the calculation of which must utilize the formula accrual rates specified in
Minnesota Statutes 2008, section 422A.15, subdivision 1, for that portion of credited
service which was rendered before July 1, 1978, and the formula accrual rates specified
in section 353.29, subdivision 3, for the remainder of credited service, both applied to
the average salary as specified in section 353.01, subdivision 17a. The formula accrual
rates to be used in calculating the retirement annuity must recognize the service after July
1, 1978, as a member of the former coordinated program of the former Minneapolis
Municipal Employees Retirement Fund and after July 1, 1979, as a member of the
general employees retirement plan of the Public Employees Retirement Association as a
continuation of service rendered before July 1, 1978. The annuity amount attributable
to service as a member of the basic program of the former Minneapolis Municipal
Employees Retirement Fund deleted text begin is payable from the MERF division deleted text end and the annuity amount
attributable to all other service is payable from the general employees retirement fund of
the Public Employees Retirement Association.

Sec. 15.

Minnesota Statutes 2014, section 353.50, subdivision 6, is amended to read:

Subd. 6.

Benefits new text begin for former MERF division members new text end .

(a) Retired, disabled,
deferred, and inactive member benefits. The annuities and benefits of, or attributable to,
retired, disabled, deferred, or inactive deleted text begin Minneapolis Employees Retirement Fund deleted text end members
deleted text begin with that status as of June 30, 2010 deleted text end new text begin of the former MERF division new text end , as calculated under
Minnesota Statutes 2008, sections 422A.11; 422A.12; 422A.13; 422A.14; 422A.15;
422A.151; 422A.155; 422A.156; 422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and
422A.23, continue in force new text begin and are payable from the general employees retirement plan new text end .

(b) Benefits; benefit eligibility for deleted text begin June 30, 2010, deleted text end active members. Persons who
were active members deleted text begin of deleted text end new text begin covered by new text end the former deleted text begin Minneapolis Employees Retirement
Fund deleted text end new text begin MERF division new text end on deleted text begin June 30, 2010 deleted text end new text begin December 31, 2014 new text end , upon satisfying eligibility
requirements stated in the applicable sections of Minnesota Statutes 2008 specified in
paragraph (a), are entitled to annuities or benefits specified in those sections. Eligibility
for a formula retirement annuity includes the requirement in Minnesota Statutes 2008,
sections 422A.13 and 422A.16, that the terminating member has attained new text begin the normal
new text end retirement age, which is age 60 if the person has at least ten years of service credit, or any
age if the person has 30 or more years of service credit.

(c) Postretirement adjustments. After December 31, deleted text begin 2010 deleted text end new text begin 2014 new text end , annuities and
benefits deleted text begin from deleted text end new text begin for former members of new text end the new text begin former new text end MERF division are eligible for annual
automatic postretirement adjustments solely under new text begin the applicable portions of new text end section
356.415.

Sec. 16.

Minnesota Statutes 2014, section 353.505, is amended to read:

353.505 STATE CONTRIBUTIONS; new text begin FORMER new text end MERF DIVISION.

(a) deleted text begin Subject to the limitation in paragraph (c), deleted text end The state shall pay to the deleted text begin MERF division
account of the Public Employees Retirement Association deleted text end new text begin general employees retirement
plan, new text end with respect to the former deleted text begin Minneapolis Employees Retirement Fund annually an
amount equal to the amount calculated under paragraph (b) deleted text end new text begin MERF division, $....... new text end .

deleted text begin (b) The payment amount is an amount equal to the financial requirements of the
MERF division of the Public Employees Retirement Association reported in the deleted text end deleted text begin actuarial
valuation of the general employees retirement plan of the Public Employees Retirement
Association prepared by the actuary retained under section 356.214 consistent with section
356.215 for the most recent year but based on a target date for full amortization of the
unfunded actuarial accrued liabilities by June 30, 2031, less the amount of employee
contributions required under section 353.50, subdivision 7, paragraph (b), and the amount
of employer contributions required under section 353.50, subdivision 7, paragraphs (c)
and (d). Payments must be made September 15 annually.
deleted text end

deleted text begin (c) The annual state contribution under this subdivision may not exceed $9,000,000,
plus the cost of the annual supplemental benefit determined under Minnesota Statutes
2008, section 356.43, through June 30, 2012, and may not exceed $9,000,000, plus the
cost of the annual supplemental benefit determined under Minnesota Statutes 2008, section
356.43, plus $13,750,000 on September 15, 2011, $13,750,000 on September 15, 2012,
and $15,000,000 on September 15, 2013, and annually thereafter.
deleted text end

deleted text begin (d) Annually and after June 30, 2012, if the amount determined under paragraph (b)
exceeds the applicable maximum amount specified in paragraph (c), the excess must be
allocated to and paid to the fund by the employers identified in Minnesota Statutes 2008,
section 422A.101, subdivisions 1a, 2, and 2a. Each employer's share of the excess is
proportionate to the employer's share of the fund's unfunded actuarial accrued liability
as disclosed in the annual actuarial valuation prepared by the actuary retained under
section 356.214 compared to the total unfunded actuarial accrued liability as of July 1,
2009, attributed to all employers identified in Minnesota Statutes 2008, section 422A.101,
subdivisions 1a and 2, other than units of metropolitan government. Payments must be
made as set forth in paragraph (b).
deleted text end

deleted text begin (e) deleted text end new text begin (b) new text end State contributions under this section end on September 15, 2031, or on
September 1 following the first date on which the current assets of the deleted text begin MERF division deleted text end new text begin
general employees retirement plan new text end of the Public Employees Retirement Association
equal or exceed the actuarial accrued liability of the deleted text begin MERF division deleted text end new text begin general employees
retirement plan new text end of the Public Employees Retirement Association new text begin in the actuarial valuation
of the retirement plan prepared by an approved actuary under section 356.215 and the
standards for actuarial work promulgated by the Legislative Commission on Pensions and
Retirement, including any actuarial accrued liability increase resulting from a change in the
interest rate actuarial assumption occurring after January 1, 2015 new text end , whichever occurs earlier.

Sec. 17.

Minnesota Statutes 2014, section 356.214, subdivision 1, is amended to read:

Subdivision 1.

Actuary retention.

(a) The governing board or managing or
administrative official of each public pension plan and retirement fund or plan enumerated
in paragraph (b) shall contract with an established actuarial consulting firm to conduct
annual actuarial valuations and related services. The principal from the actuarial
consulting firm on the contract must be an approved actuary under section 356.215,
subdivision 1, paragraph (c).

(b) Actuarial services must include the preparation of actuarial valuations and
related actuarial work for the following retirement plans:

(1) the teachers retirement plan, Teachers Retirement Association;

(2) the general state employees retirement plan, Minnesota State Retirement System;

(3) the correctional employees retirement plan, Minnesota State Retirement System;

(4) the State Patrol retirement plan, Minnesota State Retirement System;

(5) the judges retirement plan, Minnesota State Retirement System;

(6) the general employees retirement plan, Public Employees Retirement
Association deleted text begin , including the MERF division deleted text end ;

(7) the public employees police and fire plan, Public Employees Retirement
Association;

(8) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund
Association;

(9) the legislators retirement plan, Minnesota State Retirement System; and

(10) the local government correctional service retirement plan, Public Employees
Retirement Association.

(c) The actuarial valuation for the legislators retirement plan must include a separate
calculation of total plan actuarial accrued liabilities due to constitutional officer coverage
under section 3A.17.

(d) The contracts must require completion of the annual actuarial valuation
calculations on a fiscal year basis, with the contents of the actuarial valuation calculations
as specified in section 356.215, and in conformity with the standards for actuarial work
adopted by the Legislative Commission on Pensions and Retirement.

The contracts must require completion of annual experience data collection and
processing and a quadrennial published experience study for the plans listed in paragraph
(b), clauses (1), (2), and (6), as provided for in the standards for actuarial work adopted by
the commission. The experience data collection, processing, and analysis must evaluate
the following:

(1) individual salary progression;

(2) the rate of return on investments based on the current asset value;

(3) payroll growth;

(4) mortality;

(5) retirement age;

(6) withdrawal; and

(7) disablement.

(e) The actuary shall annually prepare a report to the governing or managing board
or administrative official and the legislature, summarizing the results of the actuarial
valuation calculations. The actuary shall include with the report any recommendations
concerning the appropriateness of the support rates to achieve proper funding of
the retirement plans by the required funding dates. The actuary shall, as part of the
quadrennial experience study, include recommendations on the appropriateness of the
actuarial valuation assumptions required for evaluation in the study.

(f) If the actuarial gain and loss analysis in the actuarial valuation calculations
indicates a persistent pattern of sizable gains or losses, the governing or managing board
or administrative official shall direct the actuary to prepare a special experience study for
a plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), or (10), in the manner
provided for in the standards for actuarial work adopted by the commission.

Sec. 18.

Minnesota Statutes 2014, section 356.215, subdivision 11, is amended to read:

Subd. 11.

Amortization contributions.

(a) In addition to the exhibit indicating
the level normal cost, the actuarial valuation of the retirement plan must contain an
exhibit for financial reporting purposes indicating the additional annual contribution
sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit
for contribution determination purposes indicating the additional contribution sufficient
to amortize the unfunded actuarial accrued liability. For the retirement plans listed in
subdivision 8, paragraph (c), but excluding deleted text begin the MERF division of the Public Employees
Retirement Association and deleted text end the legislators retirement plan, the additional contribution
must be calculated on a level percentage of covered payroll basis by the established
date for full funding in effect when the valuation is prepared, assuming annual payroll
growth at the applicable percentage rate set forth in subdivision 8, paragraph (d). For all
other retirement plans and for the deleted text begin MERF division of the Public Employees Retirement
Association and the deleted text end legislators retirement plan, the additional annual contribution must be
calculated on a level annual dollar amount basis.

(b) For any retirement plan other than a retirement plan governed by paragraph (d),
(e), (f), (g), (h), (i), (j), or (k), if there has not been a change in the actuarial assumptions
used for calculating the actuarial accrued liability of the fund, a change in the benefit
plan governing annuities and benefits payable from the fund, a change in the actuarial
cost method used in calculating the actuarial accrued liability of all or a portion of the
fund, or a combination of the three, which change or changes by itself or by themselves
without inclusion of any other items of increase or decrease produce a net increase in the
unfunded actuarial accrued liability of the fund, the established date for full funding is the
first actuarial valuation date occurring after June 1, 2020.

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

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

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

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

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

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

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

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

deleted text begin (d) For the MERF division of the Public Employees Retirement Association, the
established date for full funding is June 30, 2031.
deleted text end

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

deleted text begin (f) deleted text end new text begin (e) new text end For the Teachers Retirement Association, the established date for full funding
is June 30, 2037.

deleted text begin (g) deleted text end new text begin (f) new text end For the correctional state employees retirement plan of the Minnesota State
Retirement System, the established date for full funding is June 30, 2038.

deleted text begin (h) deleted text end new text begin (g) new text end For the judges retirement plan, the established date for full funding is June
30, 2038.

deleted text begin (i) deleted text end new text begin (h) new text end For the public employees police and fire retirement plan, the established date
for full funding is June 30, 2038.

deleted text begin (j) deleted text end new text begin (i) new text end For the St. Paul Teachers Retirement Fund Association, the established date
for full funding is June 30, 2042. In addition to other requirements of this chapter, the
annual actuarial valuation must contain an exhibit indicating the funded ratio and the
deficiency or sufficiency in annual contributions when comparing liabilities to the market
value of the assets of the fund as of the close of the most recent fiscal year.

deleted text begin (k) deleted text end new text begin (j) new text end For the general state employees retirement plan of the Minnesota State
Retirement System, the established date for full funding is June 30, 2040.

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

Sec. 19.

Minnesota Statutes 2014, section 356.30, subdivision 3, is amended to read:

Subd. 3.

Covered plans.

This section applies to the following retirement plans:

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

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

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

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

(5) the legislators retirement plan, established under chapter 3A, including
constitutional officers as specified in that chapter;

(6) the general employees retirement plan of the Public Employees Retirement
Association, established under chapter 353 deleted text begin , including the MERF division of the Public
Employees Retirement Association deleted text end ;

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

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

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

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

(11) the judges retirement fund, established by chapter 490.

Sec. 20.

Minnesota Statutes 2014, section 356.302, subdivision 7, is amended to read:

Subd. 7.

Covered retirement plans.

This section applies to the following
retirement plans:

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

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

(3) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353 deleted text begin , including the MERF division of the Public
Employees Retirement Association deleted text end ;

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

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

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

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

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

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

(10) the judges retirement plan, established by chapter 490.

Sec. 21.

Minnesota Statutes 2014, section 356.303, subdivision 4, is amended to read:

Subd. 4.

Covered retirement plans.

This section applies to the following
retirement plans:

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

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

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

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

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

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

(7) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353 deleted text begin , including the MERF division of the Public
Employees Retirement Association deleted text end ;

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

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

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

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

(12) the judges retirement fund, established by chapter 490.

Sec. 22.

Minnesota Statutes 2014, section 356.32, subdivision 2, is amended to read:

Subd. 2.

Covered retirement plans.

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

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

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

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

(4) the general employees retirement plan of the Public Employees Retirement
Association, established under chapter 353 deleted text begin , including the MERF division of the Public
Employees Retirement Association deleted text end ;

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

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

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

Sec. 23.

Minnesota Statutes 2014, section 356.401, subdivision 3, is amended to read:

Subd. 3.

Covered retirement plans.

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

(1) the legislators retirement plan, established by chapter 3A, including constitutional
officers as specified in that chapter;

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

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

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

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

(6) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353 deleted text begin , including the MERF division of the Public
Employees Retirement Association deleted text end ;

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

(8) the public employees defined contribution plan, established by chapter 353D;

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

(10) the voluntary statewide lump-sum volunteer firefighter retirement plan,
established by chapter 353G;

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

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

(13) the individual retirement account plan, established by chapter 354B;

(14) the higher education supplemental retirement plan, established by chapter
354C; and

(15) the judges retirement fund, established by chapter 490.

Sec. 24.

Minnesota Statutes 2014, section 356.407, subdivision 2, is amended to read:

Subd. 2.

Covered funds.

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

(1) the general employees retirement plan of the Public Employees Retirement
Association established under chapter 353 deleted text begin , including the MERF division of the Public
Employees Retirement Association deleted text end ;

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

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

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

(5) the elective state officers retirement plan established under chapter 352C; and

(6) the Teachers Retirement Association established under chapter 354.

Sec. 25.

Minnesota Statutes 2014, section 356.415, subdivision 2, is amended to read:

Subd. 2.

Covered retirement plans.

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

(1) the legislators retirement plan established under chapter 3A, including
constitutional officers as specified in that chapter;

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

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

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

(5) the general employees retirement plan of the Public Employees Retirement
Association established under chapter 353 deleted text begin , including the MERF division of the Public
Employees Retirement Association deleted text end ;

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

(7) the local government correctional employees retirement plan of the Public
Employees Retirement Association established under chapter 353E;

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

(9) the judges retirement plan established under chapter 490.

Sec. 26.

Minnesota Statutes 2014, section 356.461, subdivision 2, is amended to read:

Subd. 2.

Covered plans.

This section applies to the following retirement plans:

(1) the legislators retirement plan, established under chapter 3A, including
constitutional officers as specified in that chapter;

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

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

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

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

(6) the judges retirement plan, established under chapter 490;

(7) the general employees retirement plan of the Public Employees Retirement
Association, established under chapter 353 deleted text begin , including the MERF division of the Public
Employees Retirement Association deleted text end ;

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

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

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

Sec. 27.

Minnesota Statutes 2014, section 356.465, subdivision 3, is amended to read:

Subd. 3.

Covered retirement plans.

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

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

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

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

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

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

(6) the general employees retirement plan of the Public Employees Retirement
Association established under chapter 353 deleted text begin , including the MERF division of the Public
Employees Retirement Association deleted text end ;

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

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

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

(10) the local government correctional service retirement plan of the Public
Employees Retirement Association established under chapter 353E.

Sec. 28.

Minnesota Statutes 2014, section 480.181, subdivision 2, is amended to read:

Subd. 2.

Election to retain insurance and benefits; retirement.

(a) Before a
person is transferred to state employment under this section, the person may elect to do
either or both of the following:

(1) keep life insurance; hospital, medical, and dental insurance; and vacation and
sick leave benefits and accumulated time provided by the county instead of receiving
benefits from the state under the judicial branch personnel rules; or

(2) remain a member of the general employees retirement plan of the Public
Employees Retirement Association or the MERF division of the Public Employees
Retirement Association instead of joining the Minnesota State Retirement System.

Employees who make an election under clause (1) remain on the county payroll,
but the state shall reimburse the county on a quarterly basis for the salary and cost of the
benefits provided by the county. The state shall make the employer contribution new text begin on behalf
of employees who make an election under clause (2) new text end to the general employees retirement
plan of the Public Employees Retirement Association or the employer contribution under
section deleted text begin 353.50 deleted text end new text begin 353.27 new text end , subdivision deleted text begin 7 deleted text end new text begin 3c new text end , paragraphs (c) and (d), to the deleted text begin MERF division deleted text end
new text begin general employees retirement fund new text end of the Public Employees Retirement Association deleted text begin on
behalf of employees who make an election under clause (2) deleted text end new text begin for any employees who were
members of the former Minneapolis Employees Retirement Fund on June 24, 2010 new text end .

(b) An employee who makes an election under paragraph (a), clause (1), may revoke
the election, once, at any time, but if the employee revokes the election, the employee
cannot make another election. An employee who makes an election under paragraph (a),
clause (2), may revoke the election at any time within six months after the person becomes
a state employee. Once an employee revokes this election, the employee cannot make
another election.

(c) The Supreme Court, after consultation with the Judicial Council, the
commissioner of management and budget, and the executive directors of the Public
Employees Retirement Association and the Minnesota State Retirement Association shall
adopt procedures for making elections under this section.

(d) The Supreme Court shall notify all affected employees of the options available
under this section. The executive directors of the Public Employees Retirement
Association and the Minnesota State Retirement System shall provide counseling to
affected employees on the effect of making an election to remain a member of the Public
Employees Retirement Association.

Sec. 29. new text begin MERF DIVISION MERGER INTO PERA-GENERAL.
new text end

new text begin The MERF division and division account are merged into the general employees
retirement plan and fund of the Public Employees Retirement Association as provided
under Minnesota Statutes 2014, section 353.50, subdivision 9, and no longer exist as
a component part of the association or of the general employees retirement plan. The
general employees retirement plan of the Public Employees Retirement Association is
the successor in interest of the former Minneapolis Employees Retirement Fund under
Minnesota Statutes 2014, section 353.50, subdivision 5. The beneficial title for the assets
of the former MERF division account is combined with the beneficial title for the assets of
the general employees retirement plan and is vested undivided in the benefit recipients of
the general employees retirement plan. The liabilities of the general employees retirement
fund include the liabilities under Minnesota Statutes 2014, section 353.50, subdivision 6.
new text end

Sec. 30. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 353.01, subdivision 49; 353.27, subdivision 1a;
353.50, subdivisions 1, 2, 3, 4, 5, 7, 8, 9, 10; and 354.71, new text end new text begin are repealed.
new text end

Sec. 31. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 30 are effective the day following final enactment.
new text end