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Capital IconMinnesota Legislature

SF 1398

3rd Engrossment - 89th Legislature (2015 - 2016) Posted on 05/27/2015 12:09pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 3rd Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21
2.22 2.23
2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 2.37 2.38 2.39 2.40 2.41 2.42 2.43 2.44 2.45 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 3.37 3.38 3.39 3.40 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 4.36 4.37 4.38 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 5.36 5.37 5.38 5.39 5.40 5.41 5.42 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 6.35 6.36 6.37 6.38 6.39 6.40 6.41 6.42 6.43 6.44 6.45 6.46 6.47 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35 7.36 7.37 7.38 7.39 7.40 7.41 7.42 7.43 8.1 8.2 8.3 8.4
8.5 8.6
8.7 8.8 8.9
8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26
8.27 8.28 8.29 8.30 8.31 8.32 8.33 9.1 9.2 9.3 9.4 9.5 9.6
9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28
9.29 9.30 9.31 9.32 9.33 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15
10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31
10.32 10.33 10.34 11.1 11.2 11.3 11.4 11.5 11.6
11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18
11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 12.1 12.2 12.3 12.4 12.5 12.6 12.7
12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 12.35
13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 13.35 13.36 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8
14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26
14.27 14.28 14.29 14.30 14.31
14.32 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13
15.14 15.15 15.16 15.17 15.18 15.19
15.20 15.21 15.22 15.23 15.24 15.25
15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12
16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24
16.25 16.26
16.27 16.28 16.29
16.30 16.31 16.32 16.33 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21
17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 17.34 17.35 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31
18.32 18.33 18.34 18.35 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33 19.34 19.35 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12
20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 20.35 21.1 21.2
21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17
21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27
22.28 22.29 22.30 22.31 22.32 22.33 22.34 22.35 23.1 23.2
23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 23.35 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 24.35 24.36 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 25.35
26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22
26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 26.35 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 27.35
28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21
28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 28.35 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12
29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33
29.34 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22
30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 30.35 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28
31.29 31.30 31.31 31.32 31.33 31.34 31.35 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14
32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 32.35 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22
33.23 33.24
33.25 33.26 33.27
33.28 33.29 33.30 33.31 33.32 33.33 33.34 34.1 34.2 34.3 34.4
34.5
34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32
34.33
34.34 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31
35.32
35.33 35.34 35.35 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16
36.17
36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 36.34 36.35 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 37.34 37.35 37.36 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8
38.9
38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 38.33 38.34 38.35 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20
39.21
39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 39.35 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 40.34 40.35 40.36 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13
41.14
41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34 41.35 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34 42.35
42.36
43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 43.35 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19
44.20
44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34 44.35 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14
45.15
45.16 45.17
45.18
45.19 45.20
45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 46.34 46.35 46.36 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 47.35 47.36 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28
48.29 48.30 48.31 48.32 48.33 48.34 48.35 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 49.34 49.35 49.36 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 50.34 50.35 50.36 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26
51.27
51.28 51.29 51.30 51.31 51.32 51.33 51.34 51.35 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22
52.23
52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32
52.33
53.1 53.2
53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13
53.14 53.15 53.16
53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10
54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34 54.35 54.36 54.37 55.1 55.2
55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15
55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30
55.31 56.1 56.2 56.3
56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11
56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20
56.21 56.22
56.23 56.24 56.25
56.26 56.27 56.28 56.29 56.30 56.31 56.32 57.1 57.2 57.3 57.4 57.5
57.6 57.7 57.8
57.9 57.10 57.11 57.12 57.13
57.14 57.15 57.16 57.17
57.18 57.19 57.20 57.21
57.22 57.23 57.24 57.25 57.26
57.27 57.28 57.29 57.30
58.1 58.2 58.3 58.4 58.5 58.6 58.7
58.8 58.9 58.10 58.11
58.12 58.13 58.14 58.15
58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 59.35 59.36 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14
60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 60.34 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19
61.20 61.21 61.22 61.23 61.24
61.25 61.26 61.27 61.28 61.29 61.30 61.31
61.32 61.33 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 62.34 62.35 62.36 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 63.34 63.35 63.36 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 64.34
65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 65.35 65.36 66.1 66.2 66.3 66.4
66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 66.35 67.1 67.2 67.3 67.4 67.5 67.6
67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 67.34 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 68.34 68.35 68.36 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 69.35 69.36 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 70.34 70.35 70.36 71.1 71.2 71.3 71.4 71.5
71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 71.34 71.35 71.36 71.37 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 72.34 72.35 72.36 72.37
73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11
73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 73.34 73.35 73.36 73.37 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23
74.24 74.25 74.26 74.27 74.28
74.29 74.30 74.31 74.32 74.33 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14
75.15 75.16 75.17 75.18 75.19
75.20 75.21 75.22 75.23 75.24 75.25
75.26 75.27 75.28 75.29 75.30 75.31 75.32 75.33 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27
76.28 76.29 76.30 76.31 76.32 76.33 76.34 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12
77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24
77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 77.34 78.1 78.2 78.3
78.4 78.5 78.6 78.7
78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 78.33 78.34 78.35 78.36 78.37 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 79.34 79.35 79.36 79.37 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 80.34 80.35 80.36 80.37 80.38 80.39 80.40 80.41 80.42 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 81.34 81.35 81.36 81.37 81.38 81.39 81.40 81.41 81.42 81.43 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 82.34 82.35 82.36 82.37 82.38 82.39 82.40 83.1 83.2 83.3 83.4
83.5
83.6 83.7
83.8 83.9 83.10
83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 83.33 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17
84.18 84.19
84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 84.34 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20
85.21
85.22 85.23 85.24 85.25 85.26 85.27
85.28
85.29 85.30 85.31 85.32 85.33 86.1 86.2
86.3
86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 86.33 86.34 86.35 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13
87.14
87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 87.33 87.34 87.35 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 88.33 88.34 88.35 88.36 88.37 88.38 88.39 88.40 88.41 88.42 88.43 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 89.33 89.34 89.35 89.36 89.37 89.38 89.39 89.40 89.41 89.42 89.43 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 90.32 90.33 90.34 90.35 90.36 90.37 90.38 90.39 90.40 90.41 90.42 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27 91.28 91.29 91.30 91.31 91.32 91.33 91.34 91.35 91.36 91.37 91.38 91.39 91.40 91.41 91.42 91.43 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 92.35 92.36 92.37 92.38 92.39 92.40 92.41 92.42 92.43 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 93.33 93.34 93.35 93.36 93.37 93.38 93.39 93.40 93.41 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15
94.16
94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 94.33 94.34 94.35 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17
95.18
95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30
95.31
95.32 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14
96.15
96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 96.33 96.34 96.35 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12
97.13
97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32 97.33 97.34 97.35 98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 98.32 98.33 98.34 98.35 98.36 99.1 99.2 99.3 99.4 99.5 99.6
99.7
99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 99.32 99.33 99.34 99.35 100.1 100.2 100.3 100.4 100.5 100.6 100.7
100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 100.34 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19
101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 101.32 101.33 101.34 101.35 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16
102.17
102.18 102.19 102.20
102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18
103.19 103.20 103.21
103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 103.33 103.34 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33 104.34 104.35 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15
105.16 105.17 105.18 105.19
105.20 105.21
105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 106.34 106.35 106.36 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11
107.12
107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 107.33 107.34 107.35 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 108.32 108.33 108.34 108.35 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9
109.10 109.11
109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33 109.34 109.35 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30
110.31
110.32 110.33 110.34 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 111.34 111.35 111.36 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 112.32 112.33 112.34 112.35 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33 113.34 113.35 113.36 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22
114.23
114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33
114.34
115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 115.33 115.34 115.35 115.36
116.1
116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 116.32 116.33 116.34 116.35 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10
117.11
117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 117.32 117.33 117.34 117.35 118.1 118.2 118.3 118.4 118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18
118.19
118.20 118.21
118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 118.34 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16
119.17
119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30
119.31
119.32 119.33 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20
120.21
120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 120.33 120.34 120.35 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 121.33 121.34 121.35 122.1 122.2 122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 122.33 122.34 122.35 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16
123.17
123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 123.32 123.33 124.1 124.2 124.3
124.4
124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 124.34 124.35 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 125.33 125.34 125.35 125.36 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 126.33 126.34 126.35 127.1 127.2 127.3
127.4
127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26
127.27
127.28 127.29 127.30 127.31 127.32
127.33
128.1 128.2 128.3 128.4 128.5
128.6
128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29 128.30 128.31 128.32 128.33 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21
129.22
129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 129.32 129.33 129.34 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31 130.32 130.33 130.34 130.35 131.1 131.2 131.3 131.4
131.5
131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13
131.14
131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23
131.24
131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11
132.12
132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30
132.31
132.32 133.1 133.2 133.3 133.4 133.5 133.6 133.7
133.8
133.9 133.10 133.11 133.12 133.13 133.14 133.15
133.16
133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 133.32 134.1 134.2
134.3
134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30 134.31 134.32 134.33 134.34 134.35
135.1
135.2 135.3 135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22 135.23 135.24 135.25 135.26 135.27 135.28 135.29 135.30 135.31 135.32 135.33 135.34 135.35
136.1
136.2 136.3 136.4 136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12 136.13 136.14 136.15 136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24 136.25
136.26
136.27 136.28 136.29 136.30 136.31 136.32 136.33 137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15
137.16
137.17 137.18 137.19 137.20 137.21 137.22 137.23 137.24 137.25 137.26 137.27 137.28 137.29 137.30 137.31 137.32 137.33 137.34 137.35 138.1 138.2 138.3 138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16 138.17 138.18 138.19
138.20
138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 138.33 138.34
139.1
139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19 139.20 139.21 139.22 139.23
139.24 139.25
139.26 139.27 139.28 139.29 139.30 139.31 139.32 139.33 140.1 140.2
140.3
140.4 140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12
140.13
140.14 140.15 140.16 140.17 140.18 140.19
140.20
140.21 140.22 140.23 140.24 140.25
140.26
140.27 140.28 140.29 141.1 141.2 141.3 141.4 141.5 141.6 141.7 141.8 141.9 141.10 141.11
141.12
141.13 141.14 141.15 141.16 141.17
141.18
141.19 141.20 141.21 141.22 141.23 141.24
141.25
141.26 141.27 141.28 141.29
141.30
142.1 142.2 142.3 142.4 142.5 142.6 142.7 142.8 142.9 142.10 142.11 142.12 142.13 142.14 142.15 142.16 142.17 142.18 142.19 142.20 142.21 142.22 142.23 142.24 142.25 142.26 142.27 142.28 142.29 142.30 142.31 142.32 142.33 142.34 142.35 142.36 143.1 143.2 143.3 143.4 143.5 143.6 143.7 143.8 143.9 143.10 143.11 143.12 143.13 143.14 143.15 143.16 143.17 143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29 143.30 143.31 143.32
143.33
144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9 144.10 144.11 144.12 144.13 144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30 144.31 144.32 144.33 144.34 144.35 144.36
145.1 145.2 145.3
145.4 145.5 145.6 145.7 145.8 145.9 145.10 145.11 145.12 145.13 145.14 145.15 145.16 145.17 145.18 145.19 145.20 145.21 145.22 145.23 145.24 145.25 145.26 145.27 145.28 145.29 145.30 145.31 145.32 145.33 145.34 145.35
146.1
146.2 146.3 146.4 146.5 146.6 146.7 146.8 146.9 146.10 146.11 146.12 146.13 146.14 146.15 146.16 146.17 146.18 146.19 146.20 146.21 146.22 146.23 146.24 146.25 146.26 146.27 146.28 146.29 146.30 146.31 146.32 146.33 146.34 147.1 147.2
147.3
147.4 147.5 147.6 147.7 147.8 147.9 147.10 147.11 147.12 147.13 147.14 147.15 147.16 147.17 147.18 147.19
147.20
147.21 147.22 147.23 147.24 147.25 147.26 147.27 147.28 147.29 147.30 147.31 147.32 148.1 148.2 148.3 148.4 148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13 148.14 148.15 148.16 148.17 148.18 148.19 148.20 148.21 148.22 148.23 148.24 148.25 148.26
148.27
148.28 148.29 148.30 148.31 148.32 148.33 148.34 148.35 149.1 149.2 149.3 149.4
149.5
149.6 149.7 149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16 149.17 149.18 149.19 149.20
149.21
149.22 149.23 149.24
149.25
149.26 149.27
149.28 149.29 150.1 150.2 150.3 150.4 150.5 150.6 150.7 150.8 150.9 150.10 150.11 150.12 150.13 150.14 150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24 150.25 150.26 150.27 150.28 150.29 150.30 150.31 150.32 150.33 150.34 150.35 151.1 151.2 151.3 151.4 151.5 151.6 151.7 151.8 151.9 151.10 151.11 151.12 151.13 151.14
151.15 151.16 151.17 151.18 151.19
151.20 151.21 151.22 151.23 151.24 151.25 151.26 151.27 151.28
151.29 151.30 151.31 151.32 151.33 152.1 152.2 152.3 152.4 152.5 152.6 152.7
152.8 152.9 152.10 152.11 152.12 152.13 152.14
152.15 152.16 152.17 152.18 152.19 152.20
152.21 152.22 152.23 152.24 152.25 152.26 152.27 152.28 152.29 152.30 152.31 152.32
153.1 153.2 153.3 153.4 153.5 153.6 153.7 153.8 153.9
153.10 153.11 153.12 153.13 153.14 153.15 153.16 153.17 153.18 153.19 153.20 153.21 153.22 153.23 153.24 153.25 153.26 153.27 153.28 153.29
153.30 153.31 153.32 153.33 154.1 154.2
154.3 154.4 154.5 154.6 154.7 154.8 154.9 154.10 154.11
154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26 154.27 154.28 154.29 154.30 154.31 154.32
155.1 155.2 155.3 155.4 155.5 155.6 155.7 155.8
155.9 155.10 155.11 155.12 155.13 155.14 155.15 155.16 155.17 155.18
155.19 155.20 155.21 155.22 155.23 155.24 155.25 155.26 155.27 155.28 155.29 155.30 155.31 155.32 155.33 155.34 156.1 156.2 156.3 156.4 156.5 156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17 156.18 156.19 156.20 156.21 156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30 156.31 156.32 156.33 156.34 156.35 156.36 157.1 157.2 157.3 157.4 157.5 157.6 157.7 157.8 157.9 157.10 157.11 157.12 157.13 157.14 157.15 157.16 157.17 157.18 157.19 157.20 157.21 157.22 157.23 157.24 157.25 157.26 157.27 157.28 157.29 157.30 157.31 157.32 157.33 157.34 157.35 157.36 158.1 158.2 158.3 158.4 158.5 158.6 158.7 158.8 158.9 158.10 158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19 158.20 158.21 158.22 158.23 158.24 158.25 158.26 158.27 158.28 158.29 158.30 158.31 158.32 158.33 158.34 158.35 159.1 159.2 159.3 159.4 159.5
159.6 159.7 159.8 159.9 159.10 159.11 159.12 159.13 159.14 159.15 159.16 159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28 159.29 159.30 159.31 159.32 159.33 159.34 159.35 160.1 160.2 160.3 160.4 160.5 160.6 160.7 160.8 160.9 160.10 160.11 160.12 160.13 160.14 160.15 160.16 160.17 160.18 160.19
160.20 160.21 160.22 160.23 160.24 160.25 160.26 160.27 160.28 160.29 160.30 160.31 160.32 160.33 160.34 160.35 161.1 161.2 161.3 161.4 161.5 161.6 161.7 161.8 161.9 161.10 161.11 161.12 161.13 161.14 161.15 161.16 161.17 161.18 161.19 161.20 161.21 161.22 161.23 161.24 161.25 161.26 161.27 161.28 161.29 161.30 161.31 161.32 161.33 161.34 161.35 161.36 162.1 162.2 162.3 162.4 162.5 162.6 162.7 162.8 162.9 162.10 162.11 162.12 162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22 162.23 162.24 162.25 162.26 162.27 162.28 162.29 162.30 162.31 162.32 162.33 162.34 162.35 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15
163.16 163.17 163.18 163.19 163.20
163.21 163.22 163.23 163.24 163.25
163.26 163.27 163.28 163.29 163.30 163.31 163.32 164.1 164.2
164.3 164.4 164.5 164.6 164.7 164.8 164.9 164.10 164.11 164.12 164.13 164.14 164.15 164.16
164.17 164.18 164.19 164.20 164.21 164.22 164.23 164.24 164.25 164.26 164.27 164.28 164.29 164.30 164.31 164.32
164.33 165.1 165.2 165.3 165.4 165.5 165.6 165.7 165.8 165.9 165.10 165.11 165.12 165.13
165.14 165.15 165.16 165.17 165.18 165.19 165.20 165.21 165.22 165.23 165.24 165.25 165.26 165.27 165.28 165.29 165.30 165.31 165.32 165.33 165.34 165.35
166.1 166.2 166.3 166.4 166.5 166.6 166.7 166.8 166.9 166.10 166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30
166.31 166.32 166.33 166.34 166.35
167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18 167.19 167.20 167.21 167.22 167.23 167.24 167.25 167.26 167.27 167.28 167.29 167.30 167.31 167.32 167.33 167.34 167.35 167.36 168.1 168.2 168.3 168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11 168.12 168.13 168.14 168.15 168.16 168.17 168.18 168.19
168.20 168.21 168.22 168.23 168.24 168.25 168.26 168.27 168.28 168.29 168.30 168.31 168.32 168.33 168.34 169.1 169.2 169.3 169.4
169.5 169.6 169.7 169.8 169.9 169.10 169.11 169.12 169.13 169.14 169.15 169.16 169.17 169.18 169.19
169.20 169.21 169.22 169.23 169.24 169.25 169.26
169.27 169.28 169.29 169.30 169.31 169.32 169.33 170.1 170.2 170.3 170.4 170.5
170.6 170.7 170.8 170.9 170.10 170.11 170.12 170.13 170.14
170.15 170.16 170.17 170.18 170.19 170.20
170.21 170.22 170.23 170.24 170.25 170.26 170.27 170.28 170.29 170.30 170.31 170.32 171.1 171.2
171.3 171.4 171.5 171.6 171.7 171.8 171.9 171.10 171.11 171.12 171.13 171.14 171.15 171.16 171.17 171.18 171.19 171.20 171.21 171.22 171.23 171.24 171.25 171.26 171.27 171.28 171.29 171.30 171.31 171.32 171.33 171.34 171.35
172.1 172.2 172.3 172.4 172.5 172.6
172.7 172.8 172.9 172.10 172.11 172.12 172.13 172.14 172.15 172.16 172.17 172.18 172.19 172.20 172.21 172.22 172.23 172.24 172.25 172.26 172.27 172.28 172.29 172.30 172.31 172.32 172.33 172.34 173.1 173.2 173.3 173.4 173.5 173.6 173.7 173.8 173.9 173.10 173.11 173.12 173.13 173.14 173.15 173.16 173.17 173.18 173.19 173.20 173.21
173.22 173.23 173.24 173.25 173.26 173.27 173.28
173.29 173.30 173.31 173.32 173.33 173.34 174.1 174.2 174.3 174.4 174.5 174.6 174.7
174.8 174.9 174.10 174.11 174.12
174.13 174.14 174.15 174.16 174.17 174.18 174.19 174.20 174.21 174.22 174.23 174.24 174.25 174.26 174.27 174.28 174.29 174.30 174.31 174.32 174.33 174.34 175.1 175.2 175.3 175.4
175.5 175.6 175.7 175.8 175.9 175.10 175.11 175.12 175.13 175.14 175.15 175.16 175.17 175.18 175.19 175.20 175.21
175.22 175.23 175.24 175.25 175.26 175.27 175.28 175.29 175.30 175.31 175.32 175.33 175.34 176.1 176.2 176.3 176.4 176.5 176.6 176.7 176.8 176.9 176.10 176.11 176.12 176.13 176.14 176.15 176.16 176.17 176.18 176.19
176.20 176.21 176.22 176.23 176.24 176.25 176.26 176.27 176.28 176.29 176.30 176.31 176.32 176.33 176.34 176.35 176.36 176.37 177.1 177.2 177.3 177.4 177.5 177.6 177.7 177.8 177.9 177.10 177.11 177.12 177.13 177.14 177.15 177.16 177.17 177.18 177.19 177.20 177.21 177.22 177.23 177.24 177.25 177.26 177.27 177.28 177.29 177.30 177.31 177.32 177.33 177.34 177.35 178.1 178.2 178.3 178.4 178.5 178.6 178.7 178.8 178.9 178.10
178.11 178.12 178.13 178.14 178.15 178.16 178.17 178.18 178.19 178.20 178.21 178.22 178.23 178.24 178.25 178.26 178.27 178.28 178.29
178.30 178.31 178.32 178.33 178.34 179.1 179.2
179.3 179.4 179.5 179.6 179.7 179.8 179.9 179.10 179.11 179.12
179.13 179.14 179.15 179.16 179.17 179.18 179.19 179.20 179.21 179.22 179.23 179.24 179.25
179.26 179.27 179.28 179.29 179.30 179.31 179.32 180.1 180.2 180.3 180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11
180.12 180.13 180.14 180.15 180.16 180.17 180.18 180.19 180.20 180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28 180.29 180.30 180.31 180.32 180.33 180.34 180.35 181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9 181.10 181.11 181.12 181.13
181.14 181.15 181.16 181.17 181.18 181.19 181.20 181.21 181.22 181.23 181.24 181.25 181.26 181.27 181.28 181.29 181.30 181.31 181.32 181.33 181.34 181.35 182.1 182.2 182.3 182.4 182.5 182.6 182.7 182.8 182.9 182.10 182.11 182.12 182.13 182.14 182.15 182.16 182.17 182.18 182.19 182.20 182.21 182.22 182.23 182.24
182.25 182.26 182.27 182.28 182.29 182.30 182.31 182.32 182.33 182.34 182.35 183.1 183.2 183.3 183.4 183.5 183.6 183.7 183.8 183.9 183.10 183.11 183.12 183.13 183.14 183.15 183.16 183.17 183.18 183.19 183.20 183.21 183.22 183.23 183.24 183.25 183.26 183.27 183.28 183.29 183.30 183.31 183.32 183.33 183.34
183.35 184.1 184.2 184.3 184.4 184.5 184.6 184.7 184.8 184.9 184.10 184.11 184.12 184.13 184.14 184.15 184.16 184.17 184.18 184.19 184.20 184.21 184.22 184.23 184.24 184.25 184.26 184.27
184.28 184.29 184.30 184.31 184.32 184.33 184.34 184.35 185.1 185.2
185.3 185.4 185.5 185.6 185.7 185.8 185.9 185.10 185.11 185.12 185.13 185.14 185.15 185.16 185.17 185.18 185.19 185.20 185.21 185.22 185.23 185.24 185.25 185.26 185.27 185.28 185.29 185.30 185.31 185.32 185.33 185.34
186.1 186.2 186.3 186.4 186.5 186.6 186.7 186.8 186.9 186.10 186.11 186.12 186.13
186.14 186.15 186.16 186.17 186.18 186.19 186.20 186.21 186.22 186.23 186.24 186.25 186.26 186.27 186.28 186.29 186.30 186.31 186.32 186.33 186.34 186.35 187.1 187.2 187.3 187.4 187.5 187.6 187.7 187.8 187.9 187.10 187.11 187.12 187.13 187.14 187.15 187.16 187.17 187.18 187.19 187.20 187.21 187.22 187.23 187.24 187.25 187.26 187.27 187.28 187.29 187.30 187.31 187.32 187.33 187.34 187.35 187.36 188.1 188.2 188.3 188.4 188.5 188.6 188.7 188.8 188.9 188.10 188.11 188.12 188.13 188.14 188.15 188.16
188.17 188.18 188.19 188.20 188.21 188.22 188.23 188.24 188.25 188.26 188.27 188.28
188.29 188.30 188.31 188.32 188.33 189.1 189.2 189.3 189.4 189.5 189.6
189.7 189.8 189.9 189.10 189.11 189.12 189.13
189.14 189.15 189.16 189.17 189.18 189.19 189.20 189.21 189.22 189.23 189.24 189.25 189.26 189.27 189.28 189.29 189.30 189.31 189.32 189.33
190.1 190.2 190.3 190.4 190.5 190.6 190.7 190.8 190.9 190.10 190.11 190.12 190.13 190.14 190.15 190.16 190.17 190.18 190.19 190.20 190.21 190.22 190.23 190.24 190.25 190.26 190.27 190.28 190.29 190.30 190.31 190.32 190.33 190.34 190.35 190.36 191.1 191.2 191.3 191.4 191.5 191.6 191.7
191.8 191.9 191.10 191.11 191.12 191.13 191.14 191.15 191.16 191.17 191.18 191.19 191.20 191.21 191.22 191.23
191.24 191.25 191.26 191.27
191.28 191.29 191.30 191.31 191.32 191.33
192.1 192.2
192.3 192.4
192.5 192.6 192.7 192.8 192.9 192.10 192.11 192.12 192.13 192.14 192.15 192.16 192.17 192.18 192.19 192.20 192.21 192.22 192.23 192.24
192.25 192.26 192.27 192.28 192.29 192.30 192.31 192.32 192.33 193.1 193.2 193.3 193.4 193.5 193.6 193.7 193.8 193.9 193.10 193.11 193.12 193.13 193.14 193.15 193.16 193.17 193.18 193.19 193.20 193.21 193.22 193.23 193.24 193.25 193.26 193.27 193.28 193.29 193.30 193.31 193.32 193.33 193.34 193.35 194.1 194.2 194.3 194.4 194.5 194.6 194.7
194.8 194.9 194.10 194.11 194.12 194.13 194.14 194.15 194.16 194.17 194.18 194.19 194.20 194.21 194.22 194.23 194.24 194.25 194.26 194.27 194.28 194.29 194.30 194.31 194.32 194.33 194.34 195.1 195.2 195.3 195.4 195.5 195.6 195.7 195.8 195.9 195.10 195.11 195.12 195.13 195.14 195.15 195.16 195.17 195.18 195.19 195.20 195.21 195.22
195.23 195.24 195.25 195.26 195.27 195.28
195.29 195.30 195.31 195.32 195.33 195.34 196.1 196.2 196.3 196.4 196.5 196.6 196.7 196.8
196.9 196.10 196.11 196.12 196.13 196.14 196.15 196.16 196.17 196.18 196.19 196.20 196.21
196.22 196.23 196.24 196.25 196.26 196.27 196.28 196.29 196.30 196.31
196.32 197.1 197.2 197.3 197.4 197.5 197.6 197.7 197.8 197.9 197.10 197.11 197.12 197.13 197.14 197.15 197.16 197.17 197.18 197.19 197.20 197.21 197.22 197.23 197.24 197.25 197.26 197.27 197.28 197.29 197.30 197.31 197.32 197.33 197.34 197.35 197.36 198.1 198.2 198.3 198.4 198.5 198.6 198.7 198.8 198.9 198.10 198.11 198.12 198.13 198.14 198.15 198.16 198.17 198.18 198.19 198.20 198.21 198.22 198.23 198.24 198.25 198.26 198.27 198.28 198.29 198.30 198.31 198.32 198.33 198.34 198.35 198.36 199.1 199.2 199.3 199.4 199.5 199.6 199.7 199.8 199.9 199.10 199.11 199.12 199.13 199.14 199.15 199.16
199.17 199.18 199.19 199.20 199.21 199.22 199.23 199.24 199.25 199.26 199.27 199.28 199.29 199.30 199.31 199.32 199.33 199.34 200.1 200.2 200.3 200.4 200.5 200.6 200.7 200.8 200.9 200.10 200.11 200.12 200.13
200.14 200.15 200.16 200.17 200.18 200.19 200.20 200.21 200.22 200.23 200.24 200.25 200.26 200.27 200.28 200.29 200.30 200.31 200.32 200.33 200.34
201.1 201.2 201.3 201.4 201.5 201.6 201.7 201.8 201.9 201.10 201.11 201.12 201.13 201.14 201.15 201.16 201.17 201.18 201.19
201.20 201.21 201.22 201.23 201.24 201.25 201.26 201.27 201.28 201.29 201.30 201.31 201.32
201.33 202.1 202.2 202.3 202.4 202.5 202.6 202.7 202.8 202.9 202.10 202.11 202.12 202.13 202.14 202.15 202.16 202.17 202.18 202.19 202.20
202.21 202.22 202.23 202.24 202.25 202.26 202.27 202.28 202.29 202.30 202.31 202.32 202.33 202.34 202.35 203.1 203.2 203.3 203.4 203.5 203.6
203.7 203.8 203.9 203.10 203.11 203.12 203.13 203.14 203.15 203.16 203.17 203.18 203.19 203.20 203.21 203.22 203.23 203.24 203.25 203.26 203.27 203.28 203.29 203.30 203.31 203.32 203.33 203.34 203.35 204.1 204.2 204.3 204.4 204.5 204.6 204.7 204.8 204.9 204.10 204.11 204.12
204.13 204.14 204.15 204.16 204.17 204.18 204.19
204.20 204.21 204.22 204.23 204.24 204.25 204.26 204.27 204.28 204.29 204.30 204.31 204.32 204.33 205.1 205.2 205.3 205.4 205.5 205.6 205.7 205.8 205.9 205.10 205.11 205.12 205.13 205.14 205.15 205.16 205.17 205.18 205.19 205.20 205.21 205.22 205.23 205.24 205.25 205.26 205.27 205.28 205.29 205.30 205.31 205.32 205.33 205.34 205.35 206.1 206.2 206.3 206.4 206.5
206.6 206.7 206.8 206.9 206.10 206.11 206.12 206.13 206.14 206.15 206.16 206.17 206.18 206.19 206.20 206.21 206.22 206.23 206.24 206.25 206.26 206.27 206.28 206.29 206.30 206.31 206.32 206.33 206.34 206.35 207.1 207.2 207.3 207.4 207.5 207.6 207.7 207.8 207.9 207.10 207.11 207.12 207.13 207.14 207.15 207.16 207.17 207.18 207.19 207.20 207.21 207.22 207.23 207.24 207.25 207.26 207.27 207.28 207.29 207.30 207.31 207.32 207.33 207.34 207.35 208.1 208.2 208.3 208.4 208.5 208.6 208.7 208.8 208.9 208.10 208.11 208.12 208.13 208.14 208.15 208.16 208.17 208.18 208.19 208.20 208.21 208.22 208.23 208.24 208.25
208.26 208.27 208.28 208.29 208.30 208.31 208.32 208.33 208.34 208.35 209.1 209.2 209.3 209.4 209.5 209.6 209.7 209.8 209.9 209.10 209.11
209.12 209.13 209.14 209.15 209.16 209.17 209.18 209.19 209.20 209.21 209.22 209.23 209.24 209.25 209.26 209.27 209.28 209.29 209.30 209.31
209.32 209.33 209.34 210.1 210.2 210.3 210.4 210.5 210.6 210.7 210.8 210.9 210.10 210.11 210.12 210.13 210.14 210.15 210.16 210.17 210.18 210.19
210.20 210.21 210.22 210.23 210.24 210.25 210.26 210.27 210.28 210.29 210.30 210.31 210.32 210.33 210.34 210.35
211.1 211.2 211.3 211.4 211.5 211.6 211.7 211.8 211.9 211.10 211.11 211.12 211.13 211.14 211.15 211.16 211.17 211.18 211.19 211.20 211.21 211.22 211.23 211.24 211.25 211.26 211.27
211.28 211.29 211.30 211.31 211.32 211.33 211.34 211.35 212.1 212.2 212.3 212.4
212.5 212.6 212.7 212.8 212.9 212.10 212.11 212.12 212.13 212.14 212.15 212.16 212.17 212.18 212.19 212.20 212.21 212.22 212.23
212.24 212.25 212.26 212.27 212.28 212.29 212.30 212.31 212.32 212.33 212.34 213.1 213.2 213.3 213.4 213.5 213.6 213.7 213.8 213.9
213.10 213.11 213.12 213.13 213.14 213.15 213.16 213.17 213.18 213.19 213.20 213.21 213.22 213.23 213.24 213.25 213.26 213.27 213.28 213.29
213.30 213.31 213.32 213.33 214.1 214.2 214.3 214.4 214.5 214.6 214.7 214.8 214.9 214.10 214.11 214.12 214.13 214.14 214.15 214.16 214.17 214.18 214.19 214.20 214.21 214.22 214.23 214.24 214.25 214.26 214.27 214.28 214.29 214.30
214.31 214.32 214.33 214.34 214.35 215.1 215.2 215.3 215.4 215.5 215.6 215.7
215.8 215.9 215.10
215.11 215.12

A bill for an act
relating to retirement; modifying actuarial assumptions; modifying postretirement
adjustment triggers; modifying contribution stabilizers; amending police and
firefighter retirement state supplemental aid; creating a monthly benefit division
of the statewide volunteer firefighter retirement plan; adopting recommendations
of the volunteer firefighter relief association working group; modifying local
firefighter relief associations; making small group retirement changes; making
administrative changes to the Minnesota State Retirement System, Teachers
Retirement Association, and Public Employees Retirement Association; making
technical and conforming changes; merging the Minneapolis Employees
Retirement Fund Division into PERA-General; requiring a state financial
contribution to fund the merger; permanently extending supplemental fire state
aid to volunteer firefighter relief associations; amending Minnesota Statutes
2014, sections 3A.03, subdivision 2; 11A.17, subdivision 2; 69.051, subdivision
1a; 69.80; 256D.21; 352.01, subdivisions 2a, 11, 13a, 15; 352.017, subdivision 2;
352.021, subdivisions 1, 3, 4; 352.029, subdivision 2; 352.04, subdivisions 8,
9; 352.045; 352.22, subdivisions 8, 10; 352.23; 352.27; 352.75, subdivision 2;
352.87, subdivision 8; 352.91, subdivision 3e; 352.955, subdivision 3; 352B.011,
subdivision 3; 352B.013, subdivision 2; 352B.07; 352B.085; 352B.086;
352B.10, subdivision 5; 352B.105; 352B.11, subdivision 4; 352B.25; 352D.02,
subdivision 1; 352D.05, subdivision 4; 352D.11, subdivision 2; 352D.12; 353.01,
subdivisions 2a, 2b, 6, 10, 11a, 16, 17, 28, 36, 48; 353.0161, subdivision 2, by
adding a subdivision; 353.0162; 353.017, subdivision 2; 353.03, subdivision 3;
353.031, subdivisions 5, 10; 353.05; 353.06; 353.27, subdivisions 1, 3b, 7a, 10,
12, 12a, by adding a subdivision; 353.28, subdivision 5; 353.29, subdivision
7; 353.33, subdivisions 6, 13; 353.34, subdivision 1; 353.35, subdivision
1; 353.37, subdivision 1; 353.46, subdivisions 2, 6; 353.50, subdivision 6;
353.505; 353.64, subdivisions 7a, 8, 9, 10; 353.656, subdivisions 1a, 1b, 2, 4,
5a; 353D.03, subdivision 3; 353D.071, subdivision 2; 353E.06, subdivisions
5, 6; 353F.01; 353F.02, subdivisions 3, 5a; 353F.04, subdivision 2; 353F.051,
subdivisions 1, 2, 3; 353G.01, subdivisions 6, 7, 11, 12, by adding subdivisions;
353G.02; 353G.03; 353G.04; 353G.05; 353G.06; 353G.07; 353G.08; 353G.09;
353G.10; 353G.11; 353G.115; 353G.12, subdivision 2, by adding a subdivision;
353G.13; 353G.14; 353G.15; 353G.16; 354.05, subdivisions 10, 13, 25;
354.07, subdivision 5; 354.092, subdivision 4; 354.42, subdivisions 1a, 4b, 4d;
354.44, subdivisions 8, 9; 354.445; 354.45, subdivision 1a; 354.48, subdivision
3; 354.51, subdivisions 1, 5; 354.52, subdivision 4c; 354.55, subdivision
10; 354.72, subdivision 2; 354A.011, subdivision 6; 354A.092; 354A.093,
subdivision 6; 354A.096; 354A.108; 354A.12, subdivision 3c; 354A.29,
subdivisions 7, 8, 9; 354A.31, subdivision 7; 354A.38, subdivision 3; 355.01,
subdivision 3j; 355.07; 356.195, subdivision 2; 356.214, subdivision 1; 356.215,
subdivisions 1, 8, 11, 18; 356.245; 356.30, subdivision 3; 356.302, subdivision 7;
356.303, subdivision 4; 356.32, subdivisions 1, 2; 356.40; 356.401, subdivision
3; 356.407, subdivisions 1, 2; 356.415, subdivisions 1, 1a, 1b, 1c, 1d, 1e, 1f,
2; 356.431; 356.44; 356.461, subdivision 2; 356.465, subdivision 3; 356.50,
subdivision 2; 356.551, subdivision 2; 356.62; 356.635, subdivision 9, by adding
a subdivision; 356B.10, subdivisions 2, 3, 4, 5, 6, 7; 423A.02, subdivision 1b;
423A.022, subdivision 5; 424A.001, subdivision 10, by adding a subdivision;
424A.002, subdivision 1; 424A.016, subdivision 4; 424A.02, subdivisions 3,
3a, 9a; 424A.05, subdivisions 2, 3; 424A.092, subdivisions 3, 6; 424A.093,
subdivisions 5, 6; 480.181, subdivision 2; 490.121, subdivision 4; 490.1211;
490.124, subdivision 12; proposing coding for new law in Minnesota Statutes,
chapter 353G; repealing Minnesota Statutes 2014, sections 352.271; 352.75,
subdivisions 1, 3, 4, 5, 6; 352.76; 352.91, subdivisions 3a, 3b; 352B.29; 353.01,
subdivision 49; 353.025; 353.27, subdivision 1a; 353.50, subdivisions 1, 2, 3,
4, 5, 7, 8, 9, 10; 353.83; 353.84; 353.85; 353D.03, subdivision 4; 354.146,
subdivisions 1, 3; 354.33, subdivisions 5, 6; 354.39; 354.55, subdivisions 13,
16, 19; 354.58; 354.71; 354A.35, subdivision 2a; 354A.42; 356.405; 356.49,
subdivision 2; 424A.03, subdivision 3.

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

ARTICLE 1

INTEREST, SALARY, AND PAYROLL GROWTH ASSUMPTION CHANGES

Section 1.

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


Subd. 8.

Interest and salary assumptions.

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

(1) select and ultimate interest rate assumption

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

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

(2) single rate interest rate assumption

plan
interest rate
assumption
new text begin general state employees retirement plan
new text end
new text begin 8%
new text end
new text begin correctional state employees retirement plan
new text end
new text begin 8
new text end
new text begin State Patrol retirement plan
new text end
new text begin 8
new text end
new text begin legislators retirement plan, and for the
constitutional officers calculation of total plan
liabilities
new text end
new text begin 0
new text end
new text begin judges retirement plan
new text end
new text begin 8
new text end
new text begin general public employees retirement plan
new text end
new text begin 8
new text end
new text begin public employees police and fire retirement plan
new text end
new text begin 8
new text end
new text begin local government correctional service retirement
plan
new text end
new text begin 8
new text end
new text begin St. Paul teachers retirement plan
new text end
new text begin 8
new text end
Bloomington Fire Department Relief Association
6
local monthly benefit volunteer firefighters relief
associations
5

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

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

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

(1) single rate future salary increase assumption

plan
future salary increase assumption
legislators retirement plan
5%
judges retirement plan
deleted text begin 3 deleted text end new text begin 2.75
new text end
Bloomington Fire Department Relief
Association
4

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

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

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

The ultimate future salary increase assumption is:

age
A
B
16
5.9%
deleted text begin 9% deleted text end new text begin 8.75%
new text end
17
5.9
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new text end
18
5.9
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new text end
19
5.9
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new text end
20
5.9
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new text end
21
5.9
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new text end
22
5.9
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new text end
23
5.85
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new text end
24
5.8
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new text end
25
5.75
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new text end
26
5.7
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new text end
27
5.65
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new text end
28
5.6
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29
5.55
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new text end
30
5.5
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31
5.45
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32
5.4
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5.35
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34
5.3
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new text end
35
5.25
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new text end
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5.2
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5.15
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38
5.1
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39
5.05
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new text end
40
5
deleted text begin 5.75 deleted text end new text begin 5.5
new text end
41
4.95
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new text end
42
4.9
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new text end
43
4.85
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new text end
44
4.8
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new text end
45
4.75
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new text end
46
4.7
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new text end
47
4.65
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new text end
48
4.6
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new text end
49
4.55
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new text end
50
4.5
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new text end
51
4.45
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new text end
52
4.4
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new text end
53
4.35
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new text end
54
4.3
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new text end
55
4.25
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new text end
56
4.2
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new text end
57
4.15
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new text end
58
4.1
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new text end
59
4.05
deleted text begin 4.25 deleted text end new text begin 4
new text end
60
4
deleted text begin 4.25 deleted text end new text begin 4
new text end
61
4
deleted text begin 4.25 deleted text end new text begin 4
new text end
62
4
deleted text begin 4.25 deleted text end new text begin 4
new text end
63
4
deleted text begin 4.25 deleted text end new text begin 4
new text end
64
4
deleted text begin 4.25 deleted text end new text begin 4
new text end
65
4
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new text end
66
4
deleted text begin 4 deleted text end new text begin 3.75
new text end
67
4
deleted text begin 4 deleted text end new text begin 3.75
new text end
68
4
deleted text begin 4 deleted text end new text begin 3.75
new text end
69
4
deleted text begin 4 deleted text end new text begin 3.75
new text end
70
4
deleted text begin 4 deleted text end new text begin 3.75
new text end

(3) service-related ultimate future salary increase assumption

general state employees retirement plan of the
Minnesota State Retirement System
assumption A
general employees retirement plan of the Public
Employees Retirement Association
assumption B
Teachers Retirement Association
assumption C
public employees police and fire retirement plan
assumption D
State Patrol retirement plan
assumption E
correctional state employees retirement plan of the
Minnesota State Retirement System
assumption F
service
length
A
B
C
D
E
F
1
deleted text begin 10.5%
deleted text end new text begin 10.25%
new text end
deleted text begin 12.03%
deleted text end new text begin 11.78%
new text end
12%
deleted text begin 13%
deleted text end new text begin 12.75%
new text end
deleted text begin 8%
deleted text end new text begin 7.75%
new text end
deleted text begin 6%
deleted text end new text begin 5.75%
new text end
2
deleted text begin 8.1
deleted text end new text begin 7.85
new text end
deleted text begin 8.9
deleted text end new text begin 8.65
new text end
9
deleted text begin 11
deleted text end new text begin 10.75
new text end
deleted text begin 7.5
deleted text end new text begin 7.25
new text end
deleted text begin 5.85
deleted text end new text begin 5.6
new text end
3
deleted text begin 6.9
deleted text end new text begin 6.65
new text end
deleted text begin 7.46
deleted text end new text begin 7.21
new text end
8
deleted text begin 9
deleted text end new text begin 8.75
new text end
deleted text begin 7
deleted text end new text begin 6.75
new text end
deleted text begin 5.7
deleted text end new text begin 5.45
new text end
4
deleted text begin 6.2
deleted text end new text begin 5.95
new text end
deleted text begin 6.58
deleted text end new text begin 6.33
new text end
7.5
deleted text begin 8
deleted text end new text begin 7.75
new text end
deleted text begin 6.75
deleted text end new text begin 6.5
new text end
deleted text begin 5.55
deleted text end new text begin 5.3
new text end
5
deleted text begin 5.7
deleted text end new text begin 5.45
new text end
deleted text begin 5.97
deleted text end new text begin 5.72
new text end
7.25
deleted text begin 6.5
deleted text end new text begin 6.25
new text end
deleted text begin 6.5
deleted text end new text begin 6.25
new text end
deleted text begin 5.4
deleted text end new text begin 5.15
new text end
6
deleted text begin 5.3
deleted text end new text begin 5.05
new text end
deleted text begin 5.52
deleted text end new text begin 5.27
new text end
7
deleted text begin 6.1
deleted text end new text begin 5.85
new text end
deleted text begin 6.25
deleted text end new text begin 6
new text end
deleted text begin 5.25
deleted text end new text begin 5
new text end
7
deleted text begin 5
deleted text end new text begin 4.75
new text end
deleted text begin 5.16
deleted text end new text begin 4.91
new text end
6.85
deleted text begin 5.8
deleted text end new text begin 5.55
new text end
deleted text begin 6
deleted text end new text begin 5.75
new text end
deleted text begin 5.1
deleted text end new text begin 4.85
new text end
8
deleted text begin 4.7
deleted text end new text begin 4.45
new text end
deleted text begin 4.87
deleted text end new text begin 4.62
new text end
6.7
deleted text begin 5.6
deleted text end new text begin 5.35
new text end
deleted text begin 5.85
deleted text end new text begin 5.6
new text end
deleted text begin 4.95
deleted text end new text begin 4.7
new text end
9
deleted text begin 4.5
deleted text end new text begin 4.25
new text end
deleted text begin 4.63
deleted text end new text begin 4.38
new text end
6.55
deleted text begin 5.4
deleted text end new text begin 5.15
new text end
deleted text begin 5.7
deleted text end new text begin 5.45
new text end
deleted text begin 4.8
deleted text end new text begin 4.55
new text end
10
deleted text begin 4.4
deleted text end new text begin 4.15
new text end
deleted text begin 4.42
deleted text end new text begin 4.17
new text end
6.4
deleted text begin 5.3
deleted text end new text begin 5.05
new text end
deleted text begin 5.55
deleted text end new text begin 5.3
new text end
deleted text begin 4.65
deleted text end new text begin 4.4
new text end
11
deleted text begin 4.2
deleted text end new text begin 3.95
new text end
deleted text begin 4.24
deleted text end new text begin 3.99
new text end
6.25
deleted text begin 5.2
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new text end
deleted text begin 5.4
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new text end
deleted text begin 4.55
deleted text end new text begin 4.3
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12
deleted text begin 4.1
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new text end
deleted text begin 4.08
deleted text end new text begin 3.83
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6
deleted text begin 5.1
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new text end
deleted text begin 5.25
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new text end
deleted text begin 4.45
deleted text end new text begin 4.2
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13
deleted text begin 4
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new text end
deleted text begin 3.94
deleted text end new text begin 3.69
new text end
5.75
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new text end
deleted text begin 5.1
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new text end
deleted text begin 4.35
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14
deleted text begin 3.8
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new text end
deleted text begin 3.82
deleted text end new text begin 3.57
new text end
5.5
deleted text begin 4.9
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new text end
deleted text begin 4.95
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new text end
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new text end
15
deleted text begin 3.7
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new text end
deleted text begin 3.7
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new text end
5.25
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new text end
deleted text begin 4.8
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new text end
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16
deleted text begin 3.6
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new text end
deleted text begin 3.6
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5
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new text end
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17
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new text end
deleted text begin 3.51
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4.75
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18
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new text end
deleted text begin 3.5
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4.5
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new text end
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new text end
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19
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new text end
deleted text begin 3.5
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new text end
4.25
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deleted text begin 4.2
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20
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new text end
deleted text begin 3.5
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4
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new text end
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21
deleted text begin 3.5
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new text end
deleted text begin 3.5
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new text end
3.9
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new text end
deleted text begin 3.75
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22
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new text end
deleted text begin 3.5
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new text end
3.8
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23
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new text end
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new text end
3.7
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24
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new text end
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3.6
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25
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3.5
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26
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new text end
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3.5
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27
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new text end
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3.5
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28
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3.5
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29
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new text end
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3.5
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30 or more
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new text end
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new text end
3.5
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(d) The actuarial valuation must use the applicable following payroll growth
assumption for calculating the amortization requirement for the unfunded actuarial
accrued liability where the amortization retirement is calculated as a level percentage
of an increasing payroll:

plan
payroll growth assumption
general state employees retirement plan of the
Minnesota State Retirement System
deleted text begin 3.75% deleted text end new text begin 3.5%
new text end
correctional state employees retirement plan
deleted text begin 3.75 deleted text end new text begin 3.5
new text end
State Patrol retirement plan
deleted text begin 3.75 deleted text end new text begin 3.5
new text end
judges retirement plan
deleted text begin 3 deleted text end new text begin 2.75
new text end
general employees retirement plan of the Public
Employees Retirement Association
deleted text begin 3.75 deleted text end new text begin 3.5
new text end
public employees police and fire retirement plan
deleted text begin 3.75 deleted text end new text begin 3.5
new text end
local government correctional service retirement plan
deleted text begin 3.75 deleted text end new text begin 3.5
new text end
teachers retirement plan
3.75
St. Paul teachers retirement plan
4

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015, and applies to
actuarial valuations prepared for an actuarial valuation date after that date.
new text end

ARTICLE 2

CONFORMING CHANGES IN REFUND REPAYMENT PROVISIONS
RELATED TO INTEREST ASSUMPTION CHANGE

Section 1.

Minnesota Statutes 2014, section 3A.03, subdivision 2, is amended to read:


Subd. 2.

Refund.

(a) A former member who has made contributions under
subdivision 1 and who is no longer a member of the legislature is entitled to receive, upon
written application to the executive director on a form prescribed by the executive director,
a refund from the general fund of all contributions credited to the member's account with
interest computed as provided in section 352.22, subdivision 2.

(b) The refund of contributions as provided in paragraph (a) terminates all rights of a
former member of the legislature and the survivors of the former member under this chapter.

(c) If the former member of the legislature again becomes a member of the legislature
after having taken a refund as provided in paragraph (a), the member is a member of the
unclassified employees retirement program of the Minnesota State Retirement System.

(d) However, the member may reinstate the rights and credit for service previously
forfeited under this chapter if the member repays all refunds taken, plus interest at deleted text beginan
deleted text enddeleted text beginannualdeleted text end new text beginthenew text end rate of 8.5 percent new text beginuntil June 30, 2015, and eight percent thereafter new text endcompounded
annually from the date on which the refund was taken to the date on which the refund
is repaid.

(e) No person may be required to apply for or to accept a refund.

Sec. 2.

Minnesota Statutes 2014, section 352.01, subdivision 13a, is amended to read:


Subd. 13a.

Reduced salary during period of workers' compensation.

An
employee on leave of absence receiving temporary workers' compensation payments and a
reduced salary or no salary from the employer who is entitled to allowable service credit
for the period of absence, may make payment to the fund for the difference between salary
received, if any, and the salary the employee would normally receive if not on leave of
absence during the period. The employee shall pay an amount equal to the employee and
employer contribution rate under section 352.04, subdivisions 2 and 3, on the differential
salary amount for the period of the leave of absence.

The employing department, at its option, may pay the employer amount on behalf
of its employees. Payment made under this subdivision must include interest at the rate
of 8.5 percent new text beginuntil June 30, 2015, and eight percent thereafter new text end per year, and must be
completed within one year of the return from leave of absence.

Sec. 3.

Minnesota Statutes 2014, section 352.04, subdivision 8, is amended to read:


Subd. 8.

Department required to pay omitted salary deductions.

(a) If a
department fails to take deductions past due for a period of 60 days or less from an
employee's salary as provided in this section, those deductions must be taken on later
payroll abstracts.

(b) If a department fails to take deductions past due for a period in excess of 60
days from an employee's salary as provided in this section, the department, and not the
employee, must pay on later payroll abstracts the employee and employer contributions
and an amount equivalent to 8.5 percent new text begin until June 30, 2015, and eight percent thereafter
new text endof the total amount due in lieu of interest, or if the delay in payment exceeds one year, 8.5
percent new text begin until June 30, 2015, and eight percent thereafter new text endcompound annual interest.

(c) If a department fails to take deductions past due for a period of 60 days or less
and the employee is no longer in state service so that the required deductions cannot be
taken from the salary of the employee, the department must nevertheless pay the required
employer contributions. If any department fails to take deductions past due for a period in
excess of 60 days and the employee is no longer in state service, the omitted contributions
must be recovered under paragraph (b).

(d) If an employee from whose salary required deductions were past due for a period
of 60 days or less leaves state service before the payment of the omitted deductions and
subsequently returns to state service, the unpaid amount is considered the equivalent of a
refund. The employee accrues no right by reason of the unpaid amount, except that the
employee may pay the amount of omitted deductions as provided in section 352.23.

Sec. 4.

Minnesota Statutes 2014, section 352.04, subdivision 9, is amended to read:


Subd. 9.

Erroneous deductions, canceled warrants.

(a) Deductions taken from
the salary of an employee for the retirement fund in excess of required amounts must,
upon discovery and verification by the department making the deduction, be refunded to
the employee.

(b) If a deduction for the retirement fund is taken from a salary warrant or check,
and the check is canceled or the amount of the warrant or check returned to the funds of
the department making the payment, the sum deducted, or the part of it required to adjust
the deductions, must be refunded to the department or institution if the department applies
for the refund on a form furnished by the director. The department's payments must
likewise be refunded to the department.

(c) If erroneous employee deductions and employer contributions are caused by an
error in plan coverage involving the plan and any other plans specified in section 356.99,
that section applies. If the employee should have been covered by the plan governed by
chapter 352D, 353D, 354B, or 354D, the employee deductions and employer contributions
taken in error must be directly transferred to the applicable employee's account in the
correct retirement plan, with interest at the rate of 0.71 percent per monthnew text begin until June 30,
2015, and 0.667 percent per month thereafter
new text end, compounded annually, from the first day of
the month following the month in which coverage should have commenced in the correct
defined contribution plan until the end of the month in which the transfer occurs.

Sec. 5.

Minnesota Statutes 2014, section 352.23, is amended to read:


352.23 TERMINATION OF RIGHTS.

When any employee accepts a refund as provided in section 352.22, all existing
service credits and all rights and benefits to which the employee was entitled before
accepting the refund terminate. They must not again be restored until the former employee
acquires at least six months of allowable service credit after taking the last refund. In that
event, the employee may repay all refunds previously taken from the retirement fund.
Repayment of refunds entitles the employee only to credit for service covered by (1)
salary deductions; (2) payments made in lieu of salary deductions; (3) payments made
to obtain credit for service as permitted by laws in effect when payment was made; and
(4) allowable service once credited while receiving temporary workers' compensation as
provided in section 352.01, subdivision 11, clause (5). Payments under this section for
repayment of refunds are to be paid with interest at deleted text beginan annualdeleted text end new text beginthe new text endrate of 8.5 percent new text beginuntil
June 30, 2015, and eight percent thereafter
new text endcompounded annually. They may be paid in a
lump sum or by payroll deduction in the manner provided in section 352.04. Payment may
be made in a lump sum up to six months after termination from service.

Sec. 6.

Minnesota Statutes 2014, section 352B.11, subdivision 4, is amended to read:


Subd. 4.

Reentry into state service.

When a former member, who has become
separated from state service that entitled the member to membership and has received a
refund of retirement payments, reenters the state service in a position that entitles the
member to membership, that member shall receive credit for the period of prior allowable
state service if the member repays into the fund the amount of the refund, plus interest
on it at deleted text beginan annualdeleted text end new text beginthe new text endrate of 8.5 percent new text beginuntil June 30, 2015, and eight percent thereafter
new text endcompounded annually, at any time before subsequent retirement. Repayment may be made
in installments or in a lump sum.

Sec. 7.

Minnesota Statutes 2014, section 352D.05, subdivision 4, is amended to read:


Subd. 4.

Repayment of refund.

(a) A participant in the unclassified program may
repay regular refunds taken under section 352.22, as provided in section 352.23.

(b) A participant in the unclassified program or an employee covered by the general
employees retirement plan who has withdrawn the value of the total shares may repay the
refund taken and thereupon restore the service credit, rights and benefits forfeited by paying
into the fund the amount refunded plus interest at deleted text beginan annualdeleted text end new text beginthe new text endrate of 8.5 percent new text beginuntil
June 30, 2015, and eight percent thereafter
new text endcompounded annually from the date that the
refund was taken until the date that the refund is repaid. If the participant had withdrawn
only the employee shares as permitted under prior laws, repayment must be pro rata.

(c) Except as provided in section 356.441, the repayment of a refund under this
section must be made in a lump sum.

Sec. 8.

Minnesota Statutes 2014, section 352D.12, is amended to read:


352D.12 TRANSFER OF PRIOR SERVICE CONTRIBUTIONS.

(a) An employee who is a participant in the unclassified program and who has prior
service credit in a covered plan under chapter 352, 353, 354, 354A, or 422A may, within
the time limits specified in this section, elect to transfer to the unclassified program prior
service contributions to one or more of those plans.

(b) For participants with prior service credit in a plan governed by chapter 352, 353,
354, 354A, or 422A, "prior service contributions" means the accumulated employee and
equal employer contributions with interest at deleted text beginan annualdeleted text end new text beginthe new text endrate of 8.5 percent new text beginuntil June
30, 2015, and eight percent thereafter
new text endcompounded annually, based on fiscal year balances.

(c) If a participant has taken a refund from a retirement plan listed in this section,
the participant may repay the refund to that plan, notwithstanding any restrictions on
repayment to that plan, plus 8.5 percent interest new text beginuntil June 30, 2015, and eight percent
interest thereafter
new text endcompounded annually and have the accumulated employee and equal
employer contributions transferred to the unclassified program with interest at deleted text beginan annualdeleted text end new text beginthe
new text endrate of 8.5 percent new text beginuntil June 30, 2015, and eight percent thereafter new text endcompounded annually
based on fiscal year balances. If a person repays a refund and subsequently elects to have
the money transferred to the unclassified program, the repayment amount, including
interest, is added to the fiscal year balance in the year which the repayment was made.

(d) A participant electing to transfer prior service contributions credited to a
retirement plan governed by chapter 352, 353, 354, 354A, or 422A as provided under this
section must complete a written application for the transfer and repay any refund within
one year of the commencement of the employee's participation in the unclassified program.

Sec. 9.

Minnesota Statutes 2014, section 353.27, subdivision 7a, is amended to read:


Subd. 7a.

Deductions or contributions transmitted by error.

(a) If employee
deductions and employer contributions under this section, section 353.50, 353.65, or
353E.03 were erroneously transmitted to the association, but should have been transmitted
to a plan covered by chapter 352D, 353D, 354B, or 354D, the executive director shall
transfer the erroneous employee deductions and employer contributions to the appropriate
retirement fund or individual account, as applicable. The time limitations specified in
subdivisions 7 and 12 do not apply. The transfer to the applicable defined contribution
plan account must include interest at the rate of 0.71 percent per monthnew text begin until June 30,
2015, and 0.667 percent per month thereafter
new text end, compounded annually, from the first day of
the month following the month in which coverage should have commenced in the defined
contribution plan until the end of the month in which the transfer occurs.

(b) A potential transfer under paragraph (a) that is reasonably determined to cause
the plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue
Code, as amended, must not be made by the executive director of the association. Within
30 days after being notified by the Public Employees Retirement Association of an
unmade potential transfer under this paragraph, the employer of the affected person
must transmit an amount representing the applicable salary deductions and employer
contributions, without interest, to the retirement fund of the appropriate Minnesota public
pension plan, or to the applicable individual account if the proper coverage is by a defined
contribution plan. The association must provide the employing unit a credit for the amount
of the erroneous salary deductions and employer contributions against future contributions
from the employer. If the employing unit receives a credit under this paragraph, the
employing unit is responsible for refunding to the applicable employee any amount that
had been erroneously deducted from the person's salary.

(c) If erroneous employee deductions and employer contributions reflect a plan
coverage error involving any Public Employees Retirement Association plan specified in
section 356.99 and any other plan specified in that section, section 356.99 applies.

Sec. 10.

Minnesota Statutes 2014, section 353.27, subdivision 12, is amended to read:


Subd. 12.

Omitted salary deductions; obligations.

(a) In the case of omission of
required deductions for the general employees retirement plan, the public employees police
and fire retirement plan, or the local government correctional employees retirement plan
from the salary of an employee, the department head or designee shall immediately, upon
discovery, report the employee for membership and deduct the employee deductions under
subdivision 4 during the current pay period or during the pay period immediately following
the discovery of the omission. Payment for the omitted obligations may only be made in
accordance with reporting procedures and methods established by the executive director.

(b) When the entire omission period of an employee does not exceed 60 days, the
governmental subdivision may report and submit payment of the omitted employee
deductions and the omitted employer contributions through the reporting processes under
subdivision 4.

(c) When the omission period of an employee exceeds 60 days, the governmental
subdivision shall furnish to the association sufficient data and documentation upon which
the obligation for omitted employee and employer contributions can be calculated.
The omitted employee deductions must be deducted from the employee's subsequent
salary payment or payments and remitted to the association for deposit in the applicable
retirement fund. The employee shall pay omitted employee deductions due for the 60
days prior to the end of the last pay period in the omission period during which salary
was earned. The employer shall pay any remaining omitted employee deductions and any
omitted employer contributions, plus cumulative interest at deleted text beginandeleted text end new text beginthe new text endannual rate of 8.5
percent new text beginuntil June 30, 2015, and eight percent thereafter new text endcompounded annually, from the
date or dates each omitted employee contribution was first payable.

(d) An employer shall not hold an employee liable for omitted employee deductions
beyond the pay period dates under paragraph (c), nor attempt to recover from the employee
those employee deductions paid by the employer on behalf of the employee. Omitted
deductions due under paragraph (c) which are not paid by the employee constitute a
liability of the employer that failed to deduct the omitted deductions from the employee's
salary. The employer shall make payment with interest at deleted text beginandeleted text end new text beginthe new text endannual rate of 8.5 percent
new text beginuntil June 30, 2015, and eight percent thereafter new text endcompounded annually. Omitted employee
deductions are no longer due if an employee terminates public service before making
payment of omitted employee deductions to the association, but the employer remains
liable to pay omitted employer contributions plus interest at deleted text beginandeleted text end new text beginthe new text endannual rate of 8.5
percent new text beginuntil June 30, 2015, and eight percent thereafter new text endcompounded annually from the
date the contributions were first payable.

(e) The association may not commence action for the recovery of omitted employee
deductions and employer contributions after the expiration of three calendar years after
the calendar year in which the contributions and deductions were omitted. Except as
provided under paragraph (b), no payment may be made or accepted unless the association
has already commenced action for recovery of omitted deductions. An action for recovery
commences on the date of the mailing of any written correspondence from the association
requesting information from the governmental subdivision upon which to determine
whether or not omitted deductions occurred.

Sec. 11.

Minnesota Statutes 2014, section 353.27, subdivision 12a, is amended to read:


Subd. 12a.

Terminated employees: omitted deductions.

A terminated employee
who was a member of 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 and who has a period of employment
in which previously omitted employer contributions were made under subdivision 12
but for whom no, or only partial, omitted employee contributions have been made, or
a member who had prior coverage in the association for which previously omitted
employer contributions were made under subdivision 12 but who terminated service
before required omitted employee deductions could be withheld from salary, may pay the
omitted employee deductions for the period on which omitted employer contributions
were previously paid plus interest at deleted text beginandeleted text end new text beginthe new text endannual rate of 8.5 percent new text beginuntil June 30, 2015,
and eight percent thereafter
new text endcompounded annually. A terminated employee may pay the
omitted employee deductions plus interest within six months of an initial notification from
the association of eligibility to pay those omitted deductions. If a terminated employee
is reemployed in a position covered under a public pension fund under section 356.30,
subdivision 3
, and elects to pay omitted employee deductions, payment must be made no
later than six months after a subsequent termination of public service.

Sec. 12.

Minnesota Statutes 2014, section 353.28, subdivision 5, is amended to read:


Subd. 5.

Interest chargeable on amounts due.

Any amount due under this section
or section 353.27, subdivision 4, is payable with interest at deleted text beginandeleted text end new text beginthe new text endannual compound rate
of 8.5 percent new text beginuntil June 30, 2015, and eight percent thereafter new text endfrom the date due until the
date payment is received by the association, with a minimum interest charge of $10.

Sec. 13.

Minnesota Statutes 2014, section 353.35, subdivision 1, is amended to read:


Subdivision 1.

Refund rights.

(a) Except as provided in paragraph (b), when any
former member accepts a refund, all existing service credits and all rights and benefits to
which the person was entitled prior to the acceptance of the refund must terminate.

(b) A refund under section 353.651, subdivision 3, paragraph (c), does not result in a
forfeiture of salary credit for the allowable service credit covered by the refund.

(c) The rights and benefits of a former member must not be restored until the person
returns to active service and acquires at least six months of allowable service credit after
taking the last refund and repays the refund or refunds taken and interest received under
section 353.34, subdivisions 1 and 2, plus interest at deleted text beginandeleted text end new text beginthe new text endannual rate of 8.5 percent new text beginuntil
June 30, 2015, and eight percent thereafter
new text endcompounded annually. If the person elects to
restore service credit in a particular fund from which the person has taken more than one
refund, the person must repay all refunds to that fund. All refunds must be repaid within
six months of the last date of termination of public service.

Sec. 14.

Minnesota Statutes 2014, section 354A.093, subdivision 6, is amended to read:


Subd. 6.

Interest requirements.

The employer shall pay interest on all equivalent
employee and employer contribution amounts payable under this section. Interest must
be computed at deleted text beginadeleted text end new text beginthe new text endrate of 8.5 percent new text beginuntil June 30, 2015, and eight percent thereafter
new text endcompounded annually from the end of each fiscal year of the leave or break in service to
the end of the month in which payment is received.

Sec. 15.

Minnesota Statutes 2014, section 354A.38, subdivision 3, is amended to read:


Subd. 3.

Computation of refund repayment amount.

If the coordinated member
elects to repay a refund under subdivision 2, the repayment to the fund must be in an
amount equal to refunds the member has accepted plus interest at the rate of 8.5 percent
new text beginuntil June 30, 2015, and eight percent thereafter new text endcompounded annually from the date that
the refund was accepted to the date that the refund is repaid.

Sec. 16.

Minnesota Statutes 2014, section 356.44, is amended to read:


356.44 PARTIAL PAYMENT OF PENSION PLAN REFUND.

(a) Notwithstanding any provision of law to the contrary, a member of a pension
plan listed in section 356.30, subdivision 3, with at least two years of forfeited service
taken from a single pension plan, may repay a portion of all refunds. A partial refund
repayment must comply with this section.

(b) The minimum portion of a refund repayment is one-third of the total service
credit period of all refunds taken from a single plan.

(c) The cost of the partial refund repayment is the product of the cost of the total
repayment multiplied by the ratio of the restored service credit to the total forfeited service
credit. The total repayment amount includes interest at the annual rate of 8.5 percent new text beginfor
any period for the Teachers Retirement Association and is 8.5 percent until June 30, 2015,
and 8 percent thereafter for any other retirement plan listed in section 356.30, subdivision
3
new text end, compounded annually, from the refund date to the date repayment is received.

(d) The restored service credit must be allocated based on the relationship the
restored service bears to the total service credit period for all refunds taken from a single
pension plan.

(e) This section does not authorize a public pension plan member to repay a refund
if the law governing the plan does not authorize the repayment of a refund of member
contributions.

Sec. 17.

Minnesota Statutes 2014, section 490.124, subdivision 12, is amended to read:


Subd. 12.

Refund.

(a) A person who ceases to be a judge is entitled to a refund
in an amount that is equal to all of the member's employee contributions to the judges'
retirement fund plus interest computed under section 352.22, subdivision 2.

(b) A refund of contributions under paragraph (a) terminates all service credits and
all rights and benefits of the judge and the judge's survivors under this chapter.

(c) A person who becomes a judge again after taking a refund under paragraph (a)
may reinstate the previously terminated allowable service credit, rights, and benefits
by repaying the total amount of the previously received refund. The refund repayment
must include interest on the total amount previously received at deleted text beginandeleted text end new text beginthe new text endannual rate of 8.5
percent, new text beginuntil June 30, 2015, and eight percent thereafter new text endcompounded annually, from the
date on which the refund was received until the date on which the refund is repaid.

Sec. 18. new text beginEFFECTIVE DATE.
new text end

new text begin Unless otherwise specified, this article is effective July 1, 2015.
new text end

ARTICLE 3

CONFORMING CHANGES IN LEAVE AND PRIOR SERVICE CREDIT
PURCHASE PROVISIONS RELATED TO INTEREST ASSUMPTION CHANGE

Section 1.

Minnesota Statutes 2014, section 352.017, subdivision 2, is amended to read:


Subd. 2.

Purchase procedure.

(a) An employee covered by a plan specified in
this chapter may purchase credit for allowable service in that plan for a period specified
in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c),
whichever applies. The employing unit, at its option, may pay the employer portion of the
amount specified in paragraph (b) on behalf of its employees.

(b) If payment is received by the executive director within one year from the date the
employee returned to work following the authorized leave, the payment amount is equal to
the employee and employer contribution rates specified in law for the applicable plan at
the end of the leave period multiplied by the employee's hourly rate of salary on the date
of return from the leave of absence and by the days and months of the leave of absence for
which the employee is eligible for allowable service credit. The payment must include
compound interest at deleted text beginadeleted text end new text beginthe new text endmonthly rate of 0.71 percent new text begin until June 30, 2015, and 0.667
percent per month thereafter
new text end from the last day of the leave period until the last day of the
month in which payment is received. If payment is received by the executive director
after one year, the payment amount is the amount determined under section 356.551.
Payment under this paragraph must be made before the date of termination from public
employment covered under this chapter.

(c) If the employee terminates employment covered by this chapter during the leave
or following the leave rather than returning to covered employment, payment must be
received by the executive director within 30 days after the termination date. The payment
amount is equal to the employee and employer contribution rates specified in law for the
applicable plan on the day prior to the termination date, multiplied by the employee's
hourly rate of salary on that date and by the days and months of the leave of absence
prior to termination.

Sec. 2.

Minnesota Statutes 2014, section 352.27, is amended to read:


352.27 CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED
SERVICE.

(a) An employee who is absent from employment by reason of service in the
uniformed services, as defined in United States Code, title 38, section 4303(13), and who
returns to state service upon discharge from service in the uniformed service within the
time frames required in United States Code, title 38, section 4312(e), may obtain service
credit for the period of the uniformed service as further specified in this section, provided
that the employee did not separate from uniformed service with a dishonorable or bad
conduct discharge or under other than honorable conditions.

(b) The employee may obtain credit by paying into the fund an equivalent employee
contribution based upon the contribution rate or rates in effect at the time that the
uniformed service was performed multiplied by the full and fractional years being
purchased and applied to the annual salary rate. The annual salary rate is the average
annual salary during the purchase period that the employee would have received if the
employee had continued to be employed in covered employment rather than to provide
uniformed service, or, if the determination of that rate is not reasonably certain, the annual
salary rate is the employee's average salary rate during the 12-month period of covered
employment rendered immediately preceding the period of the uniformed service.

(c) The equivalent employer contribution and, if applicable, the equivalent additional
employer contribution provided in this chapter must be paid by the department employing
the employee from funds available to the department at the time and in the manner
provided in this chapter, using the employer and additional employer contribution rate or
rates in effect at the time that the uniformed service was performed, applied to the same
annual salary rate or rates used to compute the equivalent employee contribution.

(d) If the employee equivalent contributions provided in this section are not paid in
full, the employee's allowable service credit must be prorated by multiplying the full and
fractional number of years of uniformed service eligible for purchase by the ratio obtained
by dividing the total employee contribution received by the total employee contribution
otherwise required under this section.

(e) To receive service credit under this section, the contributions specified in this
section must be transmitted to the Minnesota State Retirement System during the period
which begins with the date on which the individual returns to state service and which has a
duration of three times the length of the uniformed service period, but not to exceed five
years. If the determined payment period is less than one year, the contributions required
under this section to receive service credit may be made within one year of the discharge
date.

(f) The amount of service credit obtainable under this section may not exceed five
years unless a longer purchase period is required under United States Code, title 38,
section 4312.

(g) The employing unit shall pay interest on all equivalent employee and employer
contribution amounts payable under this section. Interest must be computed at deleted text beginadeleted text end new text beginthe new text endrate
of 8.5 percent new text beginuntil June 30, 2015, and eight percent thereafter new text endcompounded annually from
the end of each fiscal year of the leave or the break in service to the end of the month in
which the payment is received.

Sec. 3.

Minnesota Statutes 2014, section 352.955, subdivision 3, is amended to read:


Subd. 3.

Payment of additional equivalent contributions.

(a) An eligible
employee who is transferred to plan coverage and who elects to transfer past service
credit under this section must pay an additional member contribution for that prior service
period. The additional member contribution is the amount computed under paragraph
(b), plus the greater of the amount computed under paragraph (c), or 40 percent of the
unfunded actuarial accrued liability attributable to the past service credit transfer.

(b) The executive director shall compute, for the most recent 12 months of service
credit eligible for transfer, or for the entire period eligible for transfer if less than 12
months, the difference between the employee contribution rate or rates for the general state
employees retirement plan and the employee contribution rate or rates for the correctional
state employees retirement plan applied to the eligible employee's salary during that
transfer period, plus compound interest at deleted text beginadeleted text end new text beginthe new text endmonthly rate of 0.71 percentnew text begin until June 30,
2015, and 0.667 percent per month thereafter
new text end.

(c) The executive director shall compute, for any service credit being transferred
on behalf of the eligible employee and not included under paragraph (b), the difference
between the employee contribution rate or rates for the general state employees retirement
plan and the employee contribution rate or rates for the correctional state employees
retirement plan applied to the eligible employee's salary during that transfer period, plus
compound interest at deleted text beginadeleted text end new text beginthe new text endmonthly rate of 0.71 percentnew text begin until June 30, 2015, and 0.667
percent per month thereafter
new text end.

(d) The executive director shall compute an amount using the process specified in
paragraph (b), but based on differences in employer contribution rates between the general
state employees retirement plan and the correctional state employees retirement plan
rather than employee contribution rates.

(e) The executive director shall compute an amount using the process specified in
paragraph (c), but based on differences in employer contribution rates between the general
state employees retirement plan and the correctional state employees retirement plan
rather than employee contribution rates.

(f) The additional equivalent member contribution under this subdivision must be
paid in a lump sum. Payment must accompany the election to transfer the prior service
credit. No transfer election or additional equivalent member contribution payment may be
made by a person or accepted by the executive director after the one year anniversary date
of the effective date of the retirement coverage transfer, or the date on which the eligible
employee terminates state employment, whichever is earlier.

(g) If an eligible employee elects to transfer past service credit under this section
and pays the additional equivalent member contribution amount under paragraph (a), the
applicable department shall pay an additional equivalent employer contribution amount.
The additional employer contribution is the amount computed under paragraph (d), plus
the greater of the amount computed under paragraph (e), or 60 percent of the unfunded
actuarial accrued liability attributable to the past service credit transfer.

(h) The unfunded actuarial accrued liability attributable to the past service credit
transfer is the present value of the benefit obtained by the transfer of the service credit
to the correctional state employees retirement plan reduced by the amount of the asset
transfer under subdivision 4, by the amount of the member contribution equivalent
payment computed under paragraph (b), and by the amount of the employer contribution
equivalent payment computed under paragraph (d).

(i) The additional equivalent employer contribution under this subdivision must be
paid in a lump sum and must be paid within 30 days of the date on which the executive
director of the Minnesota State Retirement System certifies to the applicable department
that the employee paid the additional equivalent member contribution.

Sec. 4.

Minnesota Statutes 2014, section 352B.013, subdivision 2, is amended to read:


Subd. 2.

Purchase procedure.

(a) An employee covered by the plan specified in
this chapter may purchase credit for allowable service in the plan for a period specified
in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c),
whichever applies. The employing unit, at its option, may pay the employer portion of the
amount specified in paragraph (b) on behalf of its employees.

(b) If payment is received by the executive director within one year from the date
the employee returned to work following the authorized leave, the payment amount is
equal to the employee and employer contribution rates specified in section 352B.02 at the
end of the leave period multiplied by the employee's hourly rate of salary on the date of
return from the leave of absence and by the days and months of the leave of absence for
which the employee is eligible for allowable service credit. The payment must include
compound interest at deleted text beginadeleted text end new text beginthe new text endmonthly rate of 0.71 percent new text begin until June 30, 2015, and 0.667
percent per month thereafter
new text end from the last day of the leave period until the last day of the
month in which payment is received. If payment is received by the executive director after
one year from the date the employee returned to work following the authorized leave, the
payment amount is the amount determined under section 356.551. Payment under this
paragraph must be made before the date of termination from public employment covered
under this chapter.

(c) If the employee terminates employment covered by this chapter during the leave
or following the leave rather than returning to covered employment, payment must be
received by the executive director within 30 days after the termination date. The payment
amount is equal to the employee and employer contribution rates specified in section
352B.02 on the day prior to the termination date, multiplied by the employee's hourly rate of
salary on that date and by the days and months of the leave of absence prior to termination.

Sec. 5.

Minnesota Statutes 2014, section 352B.085, is amended to read:


352B.085 SERVICE CREDIT FOR CERTAIN DISABILITY LEAVES OF
ABSENCE.

A member on leave of absence receiving temporary workers' compensation
payments and a reduced salary or no salary from the employer who is entitled to allowable
service credit for the period of absence under section 352B.011, subdivision 3, paragraph
(b), may make payment to the fund for the difference between salary received, if any,
and the salary that the member would normally receive if the member was not on leave
of absence during the period. The member shall pay an amount equal to the member
and employer contribution rate under section 352B.02, subdivisions 1b and 1c, on
the differential salary amount for the period of the leave of absence. The employing
department, at its option, may pay the employer amount on behalf of the member.
Payment made under this subdivision must include interest at the rate of 8.5 percent new text beginuntil
June 30, 2015, and eight percent thereafter
new text endper year, and must be completed within one
year of the member's return from the leave of absence.

Sec. 6.

Minnesota Statutes 2014, section 352B.086, is amended to read:


352B.086 SERVICE CREDIT FOR UNIFORMED SERVICE.

(a) A member who is absent from employment by reason of service in the uniformed
services, as defined in United States Code, title 38, section 4303(13), and who returns to
state employment in a position covered by the plan upon discharge from service in the
uniformed services within the time frame required in United States Code, title 38, section
4312(e), may obtain service credit for the period of the uniformed service, provided that
the member did not separate from uniformed service with a dishonorable or bad conduct
discharge or under other than honorable conditions.

(b) The member may obtain credit by paying into the fund an equivalent member
contribution based on the member contribution rate or rates in effect at the time that
the uniformed service was performed multiplied by the full and fractional years being
purchased and applied to the annual salary rate. The annual salary rate is the average
annual salary during the purchase period that the member would have received if the
member had continued to provide employment services to the state rather than to provide
uniformed service, or if the determination of that rate is not reasonably certain, the annual
salary rate is the member's average salary rate during the 12-month period of covered
employment rendered immediately preceding the purchase period.

(c) The equivalent employer contribution and, if applicable, the equivalent employer
additional contribution, must be paid by the employing unit, using the employer and
employer additional contribution rate or rates in effect at the time that the uniformed
service was performed, applied to the same annual salary rate or rates used to compute the
equivalent member contribution.

(d) If the member equivalent contributions provided for in this section are not paid
in full, the member's allowable service credit must be prorated by multiplying the full and
fractional number of years of uniformed service eligible for purchase by the ratio obtained
by dividing the total member contributions received by the total member contributions
otherwise required under this section.

(e) To receive allowable service credit under this section, the contributions specified
in this section must be transmitted to the fund during the period which begins with the
date on which the individual returns to state employment covered by the plan and which
has a duration of three times the length of the uniformed service period, but not to exceed
five years. If the determined payment period is calculated to be less than one year, the
contributions required under this section to receive service credit must be transmitted to
the fund within one year from the discharge date.

(f) The amount of allowable service credit obtainable under this section may not
exceed five years, unless a longer purchase period is required under United States Code,
title 38, section 4312.

(g) The employing unit shall pay interest on all equivalent member and employer
contribution amounts payable under this section. Interest must be computed at deleted text beginadeleted text end new text beginthe new text endrate
of 8.5 percent new text beginuntil June 30, 2015, and eight percent thereafter new text endcompounded annually from
the end of each fiscal year of the leave or break in service to the end of the month in
which payment is received.

Sec. 7.

Minnesota Statutes 2014, section 352D.11, subdivision 2, is amended to read:


Subd. 2.

Payments by employee.

An employee entitled to purchase service credit
may make the purchase by paying to the state retirement system an amount equal to
the current employee contribution rate in effect for the state retirement system applied
to the current or final salary rate multiplied by the months and days of prior temporary,
intermittent, or contract legislative service. Payment shall be made in one lump sum
unless the executive director of the state retirement system agrees to accept payment in
installments over a period of not more than three years from the date of the agreement.
Installment payments shall be charged interest at deleted text beginan annualdeleted text end new text beginthe new text endrate of 8.5 percent new text beginuntil
June 30, 2015, and eight percent thereafter
new text end compounded annually.

Sec. 8.

Minnesota Statutes 2014, section 353.01, subdivision 16, is amended to read:


Subd. 16.

Allowable service; limits and computation.

(a) "Allowable service"
means:

(1) service during years of actual membership in the course of which employee
deductions were withheld from salary and contributions were made at the applicable rates
under section 353.27, 353.65, or 353E.03;

(2) periods of service covered by payments in lieu of salary deductions under
sections 353.27, subdivision 12, and 353.35;

(3) service in years during which the public employee was not a member but for
which the member later elected, while a member, to obtain credit by making payments to
the fund as permitted by any law then in effect;

(4) a period of authorized leave of absence with pay from which deductions for
employee contributions are made, deposited, and credited to the fund;

(5) a period of authorized personal, parental, or medical leave of absence without
pay, including a leave of absence covered under the federal Family Medical Leave Act,
that does not exceed one year, and for which a member obtained service credit for each
month in the leave period by payment under section 353.0161 to the fund made in place of
salary deductions. An employee must return to public service and render a minimum of
three months of allowable service in order to be eligible to make payment under section
353.0161 for a subsequent authorized leave of absence without pay. Upon payment, the
employee must be granted allowable service credit for the purchased period;

(6) a periodic, repetitive leave that is offered to all employees of a governmental
subdivision. The leave program may not exceed 208 hours per annual normal work cycle
as certified to the association by the employer. A participating member obtains service
credit by making employee contributions in an amount or amounts based on the member's
average salary, excluding overtime pay, that would have been paid if the leave had not
been taken. The employer shall pay the employer and additional employer contributions
on behalf of the participating member. The employee and the employer are responsible to
pay interest on their respective shares at the rate of 8.5 percent deleted text begina yeardeleted text end new text begin until June 30, 2015,
and eight percent thereafter
new text end, compounded annually, from the end of the normal cycle
until full payment is made. An employer shall also make the employer and additional
employer contributions, plus 8.5 percent interestnew text begin until June 30, 2015, and eight percent
interest thereafter
new text end, compounded annually, on behalf of an employee who makes employee
contributions but terminates public service. The employee contributions must be made
within one year after the end of the annual normal working cycle or within 30 days after
termination of public service, whichever is sooner. The executive director shall prescribe
the manner and forms to be used by a governmental subdivision in administering a
periodic, repetitive leave. Upon payment, the member must be granted allowable service
credit for the purchased period;

(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
months allowable service per authorized temporary or seasonal layoff in one calendar year.
An employee who has received the maximum service credit allowed for an authorized
temporary or seasonal layoff must return to public service and must obtain a minimum of
three months of allowable service subsequent to the layoff in order to receive allowable
service for a subsequent authorized temporary or seasonal layoff;

(8) a period during which a member is absent from employment by a governmental
subdivision by reason of service in the uniformed services, as defined in United States
Code, title 38, section 4303(13), if the member returns to public service with the same
governmental subdivision upon discharge from service in the uniformed service within the
time frames required under United States Code, title 38, section 4312(e), provided that
the member did not separate from uniformed service with a dishonorable or bad conduct
discharge or under other than honorable conditions. The service must be credited if the
member pays into the fund equivalent employee contributions based upon the contribution
rate or rates in effect at the time that the uniformed service was performed multiplied by
the full and fractional years being purchased and applied to the annual salary rate. The
annual salary rate is the average annual salary during the purchase period that the member
would have received if the member had continued to be employed in covered employment
rather than to provide uniformed service, or, if the determination of that rate is not
reasonably certain, the annual salary rate is the member's average salary rate during the
12-month period of covered employment rendered immediately preceding the period of the
uniformed service. Payment of the member equivalent contributions must be made during
a period that begins with the date on which the individual returns to public employment
and that is three times the length of the military leave period, or within five years of the
date of discharge from the military service, whichever is less. If the determined payment
period is less than one year, the contributions required under this clause to receive service
credit may be made within one year of the discharge date. Payment may not be accepted
following 30 days after termination of public service under subdivision 11a. If the member
equivalent contributions provided for in this clause are not paid in full, the member's
allowable service credit must be prorated by multiplying the full and fractional number
of years of uniformed service eligible for purchase by the ratio obtained by dividing the
total member contributions received by the total member contributions otherwise required
under this clause. The equivalent employer contribution, and, if applicable, the equivalent
additional employer contribution must be paid by the governmental subdivision employing
the member if the member makes the equivalent employee contributions. The employer
payments must be made from funds available to the employing unit, using the employer
and additional employer contribution rate or rates in effect at the time that the uniformed
service was performed, applied to the same annual salary rate or rates used to compute the
equivalent member contribution. The governmental subdivision involved may appropriate
money for those payments. The amount of service credit obtainable under this section
may not exceed five years unless a longer purchase period is required under United States
Code, title 38, section 4312. The employing unit shall pay interest on all equivalent
member and employer contribution amounts payable under this clause. Interest must be
computed at deleted text beginadeleted text end new text beginthe new text endrate of 8.5 percent new text beginuntil June 30, 2015, and eight percent thereafter
new text endcompounded annually from the end of each fiscal year of the leave or the break in service
to the end of the month in which the payment is received. Upon payment, the employee
must be granted allowable service credit for the purchased period; or

(9) a period specified under section 353.0162.

(b) For calculating benefits under sections 353.30, 353.31, 353.32, and 353.33 for
state officers and employees displaced by the Community Corrections Act, chapter 401,
and transferred into county service under section 401.04, "allowable service" means the
combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
section 352.01, subdivision 11.

(c) No member may receive more than 12 months of allowable service credit in a
year either for vesting purposes or for benefit calculation purposes. For an active member
who was an active member of the former Minneapolis Firefighters Relief Association
on December 29, 2011, "allowable service" is the period of service credited by the
Minneapolis Firefighters Relief Association as reflected in the transferred records of the
association up to December 30, 2011, and the period of service credited under paragraph
(a), clause (1), after December 30, 2011. For an active member who was an active member
of the former Minneapolis Police Relief Association on December 29, 2011, "allowable
service" is the period of service credited by the Minneapolis Police Relief Association as
reflected in the transferred records of the association up to December 30, 2011, and the
period of service credited under paragraph (a), clause (1), after December 30, 2011.

(d) MS 2002 [Expired]

Sec. 9.

Minnesota Statutes 2014, section 353.0161, subdivision 2, is amended to read:


Subd. 2.

Purchase procedure.

(a) An employee covered by a plan specified in
subdivision 1 may purchase credit for allowable service in that plan for a period specified
in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c),
whichever applies. The employing unit, at its option, may pay the employer portion of the
amount specified in paragraph (b) on behalf of its employees.

(b) If payment is received by the executive director within one year from the date
the member returned to work following the authorized leave, or within 30 days after the
date of termination of public service if the member did not return to work, the payment
amount is equal to the employee and employer contribution rates specified in law for
the applicable plan at the end of the leave period, or at termination of public service,
whichever is earlier, multiplied by the employee's average monthly salary, excluding
overtime, upon which deductions were paid during the six months, or portion thereof,
before the commencement of the leave of absence and by the number of months of the
leave of absence for which the employee wants allowable service credit. Payments made
under this paragraph must include compound interest at deleted text beginadeleted text end new text beginthe new text endmonthly rate of 0.71 percent
new text beginuntil June 30, 2015, and 0.667 percent per month thereafter new text endfrom the last day of the leave
period until the last day of the month in which payment is received.

(c) If payment is received by the executive director after one year, the payment
amount is the amount determined under section 356.551. Payment under this paragraph
must be made before the date the person terminates public service under section 353.01,
subdivision 11a.

Sec. 10.

Minnesota Statutes 2014, section 353.0162, is amended to read:


353.0162 REDUCED SALARY PERIODS SALARY CREDIT PURCHASE.

(a) A member may purchase additional salary credit for a period specified in this
section.

(b) The applicable period is a period during which the member is receiving a reduced
salary from the employer while the member is:

(1) receiving temporary workers' compensation payments related to the member's
service to the public employer;

(2) on an authorized medical leave of absence; or

(3) on an authorized partial paid leave of absence as a result of a budgetary or salary
savings program offered or mandated by a governmental subdivision.

(c) The differential salary amount is the difference between the average monthly
salary received by the member during the period of reduced salary under this section and
the average monthly salary of the member, excluding overtime, on which contributions
to the applicable plan were made during the period of the last six months of covered
employment occurring immediately before the period of reduced salary, applied to the
member's normal employment period, measured in hours or otherwise, as applicable.

(d) To receive eligible salary credit, the member shall pay an amount equal to:

(1) the applicable employee contribution rate under section 353.27, subdivision
2
; 353.65, subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the
differential salary amount;

(2) plus an employer equivalent payment equal to the applicable employer
contribution rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03,
subdivision 2
, as applicable, multiplied by the differential salary amount;

(3) plus, if applicable, an equivalent employer additional amount equal to the
additional employer contribution rate in section 353.27, subdivision 3a, multiplied by the
differential salary amount.

(e) The employer, by appropriate action of its governing body and documented in its
official records, may pay the employer equivalent contributions and, as applicable, the
equivalent employer additional contributions on behalf of the member.

(f) Payment under this section must include interest on the contribution amount or
amounts, whichever applies, at an 8.5 percent annual rate new text beginuntil June 30, 2015, and at an
eight percent annual rate thereafter
new text end, prorated for applicable months from the date on which
the period of reduced salary specified under this section terminates to the date on which
the payment or payments are received by the executive director. Payment under this
section must be completed within the earlier of 30 days from termination of public service
by the employee under section 353.01, subdivision 11a, or one year after the termination
of the period specified in paragraph (b), as further restricted under this section.

(g) The period for which additional allowable salary credit may be purchased is
limited to the period during which the person receives temporary workers' compensation
payments or for those business years in which the governmental subdivision offers or
mandates a budget or salary savings program, as certified to the executive director by a
resolution of the governing body of the governmental subdivision. For an authorized
medical leave of absence, the period for which allowable salary credit may be purchased
may not exceed 12 consecutive months of authorized medical leave.

(h) To purchase salary credit for a subsequent period of temporary workers'
compensation benefits or subsequent authorized medical leave of absence, the member
must return to public service and render a minimum of three months of allowable service.

Sec. 11.

Minnesota Statutes 2014, section 354A.096, is amended to read:


354A.096 MEDICAL LEAVE.

Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund
Association who is on an authorized medical leave of absence and subsequently returns
to teaching service is entitled to receive allowable service credit, not to exceed one year,
for the period of leave, upon making the prescribed payment to the fund. This payment
must include the required employee and employer contributions at the rates specified in
section 354A.12, subdivisions 1 and 2a, as applied to the member's average full-time
monthly salary rate on the date the leave of absence commenced plus annual interest at
the rate of 8.5 percent new text beginuntil June 30, 2015, and eight percent thereafter new text endper year from the
end of the fiscal year during which the leave terminates to the end of the month during
which payment is made. The member must pay the total amount required unless the
employing unit, at its option, pays the employer contributions. The total amount required
must be paid by the end of the fiscal year following the fiscal year in which the leave of
absence terminated or before the member retires, whichever is earlier. Payment must be
accompanied by a copy of the resolution or action of the employing authority granting the
leave and the employing authority, upon granting the leave, must certify the leave to the
association in a manner specified by the executive director. A member may not receive
more than one year of allowable service credit during any fiscal year by making payment
under this section. A member may not receive disability benefits under section 354A.36
and receive allowable service credit under this section for the same period of time.

Sec. 12.

Minnesota Statutes 2014, section 354A.108, is amended to read:


354A.108 PAYMENT BY TEACHERS COLLECTING WORKERS'
COMPENSATION.

(a) A member of the Duluth Teachers Retirement Fund Association who is receiving
temporary workers' compensation payments related to the member's teaching service
and who either is receiving a reduced salary from the employer or is receiving no salary
from the employer is entitled to receive allowable service credit for the period of time
that the member is receiving the workers' compensation payments upon making the
required payment amount.

(b) The required amount payable by the member must be calculated first by
determining the differential salary amount, which is the difference between the salary
received, if any, during the period of time that the member is collecting workers'
compensation payments, and the salary that the member received for an identical length
period immediately before collecting the workers' compensation payments. The member
shall pay an amount equal to the employee contribution rate under section 354A.12,
subdivision 1
, multiplied by the differential salary amount.

(c) If the member makes the employee payment under this section, the employing
unit shall make an employer payment to the Duluth Teachers Retirement Fund Association
equal to the employer contribution rate under section 354A.12, subdivision 2a, multiplied
by the differential salary amount.

(d) Payments made under this subdivision are payable without interest if paid by
June 30 of the year during which the workers' compensation payments are received by
the member. If paid after June 30, payments made under this subdivision must include
interest at the rate of 8.5 percent new text beginuntil June 30, 2015, and eight percent thereafter new text endper year.
Payment under this section must be completed within one year of the termination of the
workers' compensation payments to the member.

Sec. 13.

Minnesota Statutes 2014, section 356.195, subdivision 2, is amended to read:


Subd. 2.

Purchase procedure for strike periods.

(a) An employee covered by a
plan specified in subdivision 1 may purchase allowable service credit in the applicable
plan for any period of time during which the employee was on a public employee strike
without pay, not to exceed a period of one year, if the employee makes a payment in
lieu of salary deductions as specified in paragraph (b) or (c), whichever applies. The
employing unit, at its option, may pay the employer portion of the amount specified in
paragraph (b) on behalf of its employees.

(b) If payment is received by the applicable pension plan executive director within
one year from the end of the strike, the payment amount is equal to the applicable
employee and employer contribution rates specified in law for the applicable plan during
the strike period, applied to the employee's rate of salary in effect at the conclusion of the
strike for the period of the strike without pay, plus compound interest at deleted text beginadeleted text end new text beginthe new text endmonthly
rate of 0.71 percent new text beginfor any period for the Teachers Retirement Association and at the
monthly rate of 0.71 percent until June 30, 2015, and 0.667 percent thereafter for any
other retirement plan listed in section 356.30, subdivision 3
new text end from the last day of the strike
period until the date payment is received.

(c) If payment is received by the applicable pension fund director after one year and
before five years from the end of the strike, the payment amount is the amount determined
under section 356.551.

(d) Payments may not be made more than five years after the end of the strike.

Sec. 14.

Minnesota Statutes 2014, section 356.50, subdivision 2, is amended to read:


Subd. 2.

Service credit procedure.

(a) To obtain the public pension plan
allowable service credit, the eligible person under subdivision 1 shall pay the required
member contribution amount. The required member contribution amount is the member
contribution rate or rates in effect for the pension plan during the period of service covered
by the back pay award, applied to the unpaid gross salary amounts of the back pay award
including unemployment insurance, workers' compensation, or wages from other sources
which reduced the back award. No contributions may be made under this clause for
compensation covered by a public pension plan listed in section 356.30, subdivision 3,
for employment during the removal period. The person shall pay the required member
contribution amount within 60 days of the date of receipt of the back pay award or within
60 days of a billing from the retirement fund, whichever is later.

(b) The public employer who wrongfully discharged the public employee must pay
an employer contribution on the back pay award. The employer contribution must be based
on the employer contribution rate or rates in effect for the pension plan during the period of
service covered by the back pay award, applied to the salary amount on which the member
contribution amount was determined under paragraph (a). Interest on both the required
member and employer contribution amount must be paid by the employer at the annual
compound rate of 8.5 percent new text beginfor any period for the Teachers Retirement Association and
8.5 percent until June 30, 2015, and 8 percent thereafter, for any other retirement plan
listed in section 356.30, subdivision 3,
new text endper year, expressed monthly, between the date the
contribution amount would have been paid to the date of actual payment. The employer
payment must be made within 30 days of the payment under paragraph (a).

Sec. 15.

Minnesota Statutes 2014, section 356.551, subdivision 2, is amended to read:


Subd. 2.

Determination.

(a) Unless the minimum purchase amount set forth in
paragraph (c) applies, the prior service credit purchase amount is an amount equal to the
actuarial present value, on the date of payment, as calculated by the chief administrative
officer of the pension plan and reviewed by the actuary retained under section 356.214,
of the amount of the additional retirement annuity obtained by the acquisition of the
additional service credit in this section.

(b) Calculation of this amount must be made using the preretirement interest rate
applicable to the public pension plan specified in section 356.215, subdivision 8, and
the mortality table adopted for the public pension plan. The calculation must assume
continuous future service in the public pension plan until, and retirement at, the age at
which the minimum requirements of the fund for normal retirement or retirement with an
annuity unreduced for retirement at an early age, including section 356.30, are met with
the additional service credit purchased. The calculation must also assume a full-time
equivalent salary, or actual salary, whichever is greater, and a future salary history that
includes annual salary increases at the applicable salary increase rate for the plan specified
in section 356.215, subdivision 4d.

(c) The prior service credit purchase amount may not be less than the amount
determined by applying, for each year or fraction of a year being purchased, the sum of the
employee contribution rate, the employer contribution rate, and the additional employer
contribution rate, if any, applicable during that period, to the person's annual salary during
that period, or fractional portion of a year's salary, if applicable, plus interest at the annual
rate of 8.5 percent new text beginuntil June 30, 2015, and eight percent thereafter new text endcompounded annually
from the end of the year in which contributions would otherwise have been made to
the date on which the payment is received.

(d) Unless otherwise provided by statutes governing a specific plan, payment must
be made in one lump sum within one year of the prior service credit authorization or prior
to the member's effective date of retirement, whichever is earlier. Payment of the amount
calculated under this section must be made by the applicable eligible person.

(e) However, the current employer or the prior employer may, at its discretion, pay
all or any portion of the payment amount that exceeds an amount equal to the employee
contribution rates in effect during the period or periods of prior service applied to the
actual salary rates in effect during the period or periods of prior service, plus interest at the
rate of 8.5 percent a year compounded annually from the date on which the contributions
would otherwise have been made to the date on which the payment is made. If the
employer agrees to payments under this subdivision, the purchaser must make the
employee payments required under this subdivision within 90 days of the prior service
credit authorization. If that employee payment is made, the employer payment under this
subdivision must be remitted to the chief administrative officer of the public pension plan
within 60 days of receipt by the chief administrative officer of the employee payments
specified under this subdivision.

Sec. 16.

Minnesota Statutes 2014, section 490.121, subdivision 4, is amended to read:


Subd. 4.

Allowable service.

(a) "Allowable service" means any calendar month,
subject to the service credit limit in subdivision 22, served as a judge at any time, during
which the judge received compensation for that service from the state, municipality,
or county, whichever applies, and for which the judge made any required member
contribution. It also includes any month served as a referee in probate for all referees in
probate who were in office before January 1, 1974.

(b) "Allowable service" also means a period of authorized leave of absence for
which the judge has made a payment in lieu of contributions, not in an amount in excess
of the service credit limit under subdivision 22. To obtain the service credit, the judge
shall pay an amount equal to the normal cost of the judges retirement plan on the date of
return from the leave of absence, as determined in the most recent actuarial report for the
plan filed with the Legislative Commission on Pensions and Retirement, multiplied by the
judge's average monthly salary rate during the authorized leave of absence and multiplied
by the number of months of the authorized leave of absence, plus annual compound
interest at the rate of 8.5 percent new text beginuntil June 30, 2015, and eight percent thereafter new text endfrom
the date of the termination of the leave to the date on which payment is made. The
payment must be made within one year of the date on which the authorized leave of
absence terminated. Service credit for an authorized leave of absence is in addition to a
uniformed service leave under section 490.1211.

(c) "Allowable service" does not mean service as a retired judge.

Sec. 17.

Minnesota Statutes 2014, section 490.1211, is amended to read:


490.1211 UNIFORMED SERVICE.

(a) A judge who is absent from employment by reason of service in the uniformed
services, as defined in United States Code, title 38, section 4303(13), and who returns
to state employment as a judge upon discharge from service in the uniformed service
within the time frame required in United States Code, title 38, section 4312(e), may obtain
service credit for the period of the uniformed service, provided that the judge did not
separate from uniformed service with a dishonorable or bad conduct discharge or under
other than honorable conditions.

(b) The judge may obtain credit by paying into the fund equivalent member
contribution based on the contribution rate or rates in effect at the time that the uniformed
service was performed multiplied by the full and fractional years being purchased and
applied to the annual salary rate. The annual salary rate is the average annual salary
during the purchase period that the judge would have received if the judge had continued
to provide employment services to the state rather than to provide uniformed service, or
if the determination of that rate is not reasonably certain, the annual salary rate is the
judge's average salary rate during the 12-month period of judicial employment rendered
immediately preceding the purchase period.

(c) The equivalent employer contribution and, if applicable, the equivalent employer
additional contribution, must be paid by the employing unit, using the employer and
employer additional contribution rate or rates in effect at the time that the uniformed
service was performed, applied to the same annual salary rate or rates used to compute the
equivalent member contribution.

(d) If the member equivalent contributions provided for in this section are not paid
in full, the judge's allowable service credit must be prorated by multiplying the full and
fractional number of years of uniformed service eligible for purchase by the ratio obtained
by dividing the total member contributions received by the total member contributions
otherwise required under this section.

(e) To receive allowable service credit under this section, the contributions specified
in this section and section 490.121 must be transmitted to the fund during the period
which begins with the date on which the individual returns to judicial employment and
which has a duration of three times the length of the uniformed service period, but not
to exceed five years. If the determined payment period is calculated to be less than one
year, the contributions required under this section to receive service credit may be within
one year from the discharge date.

(f) The amount of allowable service credit obtainable under this section and section
490.121 may not exceed five years, unless a longer purchase period is required under
United States Code, title 38, section 4312.

(g) The state court administrator shall pay interest on all equivalent member and
employer contribution amounts payable under this section. Interest must be computed
at deleted text beginadeleted text end new text beginthe new text endrate of 8.5 percent new text beginuntil June 30, 2015, and eight percent thereafter new text endcompounded
annually from the end of each fiscal year of the leave or break in service to the end of
the month in which payment is received.

Sec. 18. new text beginEFFECTIVE DATE.
new text end

new text begin Unless otherwise specified, this article is effective July 1, 2015.
new text end

ARTICLE 4

POSTRETIREMENT ADJUSTMENT FINANCIAL SUSTAINABILITY
TRIGGER MODIFICATIONS

Section 1.

Minnesota Statutes 2014, section 354A.29, subdivision 7, is amended to read:


Subd. 7.

Eligibility for payment of postretirement adjustments.

(a) Annually,
after June 30, the board of trustees of the St. Paul Teachers Retirement Fund Association
must determine the amount of any postretirement adjustment using the procedures in this
subdivision and subdivision 8 or 9, whichever is applicable.

(b) On January 1, each deleted text begineligibledeleted text end person who has been receiving an annuity or benefit
under the articles of incorporation, the bylaws, or this chapter deleted text beginfor at least three calendar
months as of the end of the last day of the previous calendar year
deleted text endnew text begin, whose effective date
of benefit commencement occurred on or before July 1 of the calendar year immediately
before the adjustment,
new text end is eligible to receive a postretirement increase as specified in
subdivision 8 or 9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 2.

Minnesota Statutes 2014, section 354A.29, subdivision 8, is amended to read:


Subd. 8.

Calculation of postretirement adjustments; deleted text begintransitional provision
deleted text endnew text beginpercentage basednew text end.

(a) For purposes of computing postretirement adjustments for eligible
benefit recipients of the St. Paul Teachers Retirement Fund Association, the accrued
liability funding ratio based on the actuarial value of assets of the plan as determined by
the two most recent actuarial valuations prepared under sections 356.214 and 356.215
determines the postretirement increase, as follows:

Funding ratio
Postretirement increase
Less than 80 percent
1 percent
At least 80 percent but less than 90
percent
2 percent

(b) The amount determined under paragraph (a) is the full postretirement increase to
be applied as a permanent increase to the regular payment of each eligible member on
January 1 of the next calendar year. For any eligible member whose effective date of
benefit commencement occurred deleted text beginduringdeleted text end new text beginafter January 1 of new text endthe calendar year new text beginimmediately
new text endbefore the postretirement increase is applied, the deleted text beginfull increasedeleted text end amount new text begindetermined under
paragraph (a)
new text endmust be deleted text beginprorated on the basis of whole calendar quarters in benefit payment
status in the calendar year prior to the January 1 on which the postretirement increase is
applied, calculated to the third decimal place
deleted text endnew text begin reduced by 50 percentnew text end.

(c) If the accrued liability funding ratio based on the actuarial value of assets is at
least 90 percent in two consecutive actuarial valuations, deleted text beginthis subdivision expires and
deleted text endsubsequent postretirement increases must be paid as specified in subdivision 9.

new text begin (d) If, following a postretirement increase under paragraph (a), the accrued liability
funding ratio, based on the actuarial value of assets, falls below 80 percent for two
consecutive actuarial valuations, the applicable postretirement increase must be reduced
to one percent until January 1 of the calendar year next following the date on which the
requirements for an increase under paragraph (a) are again satisfied.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 3.

Minnesota Statutes 2014, section 354A.29, subdivision 9, is amended to read:


Subd. 9.

Calculation of postretirement adjustments.

(a) This subdivision applies
if new text beginthe requirements of new text endsubdivision 8 deleted text beginhas expireddeleted text endnew text begin, paragraph (c), have been satisfiednew text end.

(b) A percentage adjustment must be deleted text begincomputed anddeleted text end paid under this subdivision to
eligible persons under subdivision 7. deleted text beginThis adjustment is determined by reference to the
Consumer Price Index for urban wage earners and clerical workers all items index as
reported by the Bureau of Labor Statistics within the United States Department of Labor
each year as part of the determination of annual cost-of-living adjustments to recipients of
federal old-age, survivors, and disability insurance. For calculations of postretirement
adjustments under paragraph (c), the term "average third quarter Consumer Price Index
value" means the sum of the monthly index values as initially reported by the Bureau of
Labor Statistics for the months of July, August, and September, divided by three.
deleted text end

deleted text begin (c) Before January 1 of each year, the executive director must calculate the amount
of the postretirement adjustment by dividing the most recent average third quarter index
value by the same average third quarter index value from the previous year, subtract one
from the resulting quotient, and express the result as a percentage amount, which must be
rounded to the nearest one-tenth of one percent.
deleted text end

deleted text begin (d)deleted text end new text begin(c) new text endThe amount deleted text begincalculated under paragraph (c)deleted text end new text beginof 2.5 percent new text endis the full
postretirement adjustment to be applied as a permanent increase to the regular payment of
each eligible member on January 1 of the next calendar year. For any eligible member
whose effective date of benefit commencement occurred deleted text beginduring thedeleted text end new text beginafter January 1
of the
new text endcalendar year new text beginimmediately new text endbefore the postretirement adjustment is applied, the
deleted text beginfull increasedeleted text end new text beginpostretirement adjustment new text endamount must be deleted text beginprorated on the basis of whole
calendar quarters in benefit payment status in the calendar year prior
deleted text enddeleted text beginto the January 1 on
which the postretirement adjustment is applied, calculated to the third decimal place
deleted text endnew text beginreduced by 50 percentnew text end.

deleted text begin (e) The adjustment must not be less than zero nor greater than five percent.
deleted text end

new text begin (d) In the event the accrued liability funding ratio based on the actuarial value of
assets falls below 90 percent for two consecutive actuarial valuations, the applicable
postretirement increase must be determined under subdivision 8 until January 1 of the
calendar year next following the date on which the requirements of subdivision 8,
paragraph (c), are again satisfied.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 4.

Minnesota Statutes 2014, section 356.415, subdivision 1, is amended to read:


Subdivision 1.

Annual postretirement adjustments; generally.

(a) Except as
otherwise provided in subdivision 1a, 1b, 1c, 1d, 1e, or 1f, retirement annuity, disability
benefit, or survivor benefit recipients of a covered retirement plan are entitled to a
postretirement adjustment annually on January 1, as follows:

(1) a postretirement increase of 2.5 percent must be applied each year, effective
January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least 12 full months deleted text beginprior to the January 1
increase
deleted text endnew text begin as of the June 30new text endnew text begin of the calendar year immediately before the adjustmentnew text end; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or a
benefit amount for at least one full month, new text beginbut less than 12 full months as of the June 30 of
the calendar year immediately before the adjustment,
new text endan annual postretirement increase of
1/12 of 2.5 percent for each month that the person has been receiving an annuity or benefit
must be applieddeleted text begin, effective on January 1 following the calendar year in which the person
has been retired for less than 12 months
deleted text end.

(b) The increases provided by this subdivision commence on January 1, 2010.

(c) An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the covered retirement plan requesting that the increase not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 5.

Minnesota Statutes 2014, section 356.415, subdivision 1a, is amended to read:


Subd. 1a.

Annual postretirement adjustments; Minnesota State Retirement
System plans other than State Patrol retirement plan.

(a) Retirement annuity, disability
benefit, or survivor benefit recipients of the legislators retirement plans, including
constitutional officers as specified in chapter 3A, the general state employees retirement
plan, the correctional state employees retirement plan, new text beginand new text endthe unclassified state employees
retirement programdeleted text begin, and the judges retirement plandeleted text end are entitled to a postretirement
adjustment annually on January 1, as follows:

(1) new text beginfor each successive January 1, if the definition of funding stability under paragraph
(b) has not been met as of the prior July 1 for or with respect to the applicable retirement
plan,
new text enda postretirement increase of two percent must be applied each year, effective on
January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least deleted text begin18deleted text end new text begin12new text end full months deleted text beginbefore the January 1
increase
deleted text endnew text begin as of the June 30new text endnew text begin of the calendar year immediately before the adjustmentnew text end; and

(2) new text beginfor each successive January 1, if the definition of funding stability under
paragraph (b) has not been met as of the prior July 1 for or with respect to the applicable
retirement plan,
new text endfor each annuitant or benefit recipient who has been receiving an annuity
or a benefit for at least deleted text beginsixdeleted text end new text beginone full month, but less than 12 new text endfull monthsnew text begin as of the June 30new text endnew text begin of
the calendar year immediately before the adjustment
new text end, an annual postretirement increase of
1/12 of two percent for each month that the person has been receiving an annuity or benefit
must be applieddeleted text begin, effective January 1, following the calendar year in which the person has
been retired for at least six months, but has been retired for less than 18 months
deleted text end.

(b) deleted text beginThe increases provided by this subdivision commence on January 1, 2011.
deleted text endIncreases under this subdivision for the general state employees retirement plandeleted text begin,deleted text end new text beginor new text endthe
correctional state employees retirement plandeleted text begin, or the judges retirement plandeleted text end terminate on
December 31 of the calendar year in which two prior consecutive actuarial valuations
prepared by the approved actuary under sections 356.214 and 356.215 and the standards for
actuarial work promulgated by the Legislative Commission on Pensions and Retirement
indicates that the market value of assets of the retirement plan equals or exceeds 90 percent
of the actuarial accrued liability of the retirement plan and increases under subdivision 1
recommence after that date. Increases under this subdivision for the legislators retirement
plan deleted text beginor the elected state officers retirement plandeleted text endnew text begin, including the constitutional officers, and
for the unclassified state employees retirement program,
new text end terminate on December 31 of the
calendar year in which deleted text beginthedeleted text end new text begintwo prior consecutive new text endactuarial deleted text beginvaluationdeleted text end new text beginvaluations new text endprepared
by the approved actuary under sections 356.214 and 356.215 and the standards for
actuarial work promulgated by the Legislative Commission on Pensions and Retirement
indicates that the market value of assets of the general state employees retirement plan
equals or exceeds 90 percent of the actuarial accrued liability of the retirement plan and
increases under subdivision 1 recommence after that date.

new text begin (c) After having met the definition of funding stability under paragraph (b), the
increase provided in paragraph (a), clauses (1) and (2), rather than an increase under
subdivision 1, for the general state employees retirement plan or the correctional state
employees retirement plan, is again to be applied in a subsequent year or years if the
market value of assets of the applicable plan equals or is less than:
new text end

new text begin (1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
consecutive actuarial valuations; or
new text end

new text begin (2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
recent actuarial valuation.
new text end

new text begin (d) After having met the definition of funding stability under paragraph (b), the
increase provided in paragraph (a), clauses (1) and (2), rather than an increase under
subdivision 1, for the legislators retirement plan, including the constitutional officers,
and for the unclassified state employees retirement program, is again to be applied in a
subsequent year or years if the market value of assets of the general state employees
retirement plan equals or is less than:
new text end

new text begin (1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
consecutive actuarial valuations; or
new text end

new text begin (2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
recent actuarial valuation.
new text end

deleted text begin (c)deleted text end new text begin(e) new text endAn increase in annuity or benefit payments under this subdivision must be
made automatically unless written notice is filed by the annuitant or benefit recipient
with the executive director of the applicable covered retirement plan requesting that the
increase not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 6.

Minnesota Statutes 2014, section 356.415, subdivision 1b, is amended to read:


Subd. 1b.

Annual postretirement adjustments; PERA; general employees
retirement plan and local government correctional retirement plan.

(a) Retirement
annuity, disability benefit, or survivor benefit recipients of the general employees
retirement plan of the Public Employees Retirement Association and the local government
correctional service retirement plan are entitled to a postretirement adjustment annually
on January 1, as follows:

(1) for each successive January 1 until funding stability is restored for the applicable
retirement plan, a postretirement increase of one percent must be applied each year,
effective on January 1, to the monthly annuity or benefit amount of each annuitant or
benefit recipient who has been receiving an annuity or benefit for at least 12 full months as
of the deleted text begincurrentdeleted text end June 30new text begin of the calendar year immediately before the adjustmentnew text end;

(2) for each successive January 1 until funding stability is restored for the applicable
retirement plan, for each annuitant or benefit recipient who has been receiving an annuity
or a benefit for at least one full month, but less than 12 full months as of the deleted text begincurrentdeleted text end June
30new text begin of the calendar year immediately before the adjustmentnew text end, an annual postretirement
increase of 1/12 of one percent for each month the person has been receiving an annuity or
benefit must be applied;

(3) for each January 1 following the restoration of funding stability for the applicable
retirement plan, a postretirement increase of 2.5 percent must be applied each year,
effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit
recipient who has been receiving an annuity or benefit for at least 12 full months as of the
deleted text begincurrentdeleted text end June 30new text begin of the calendar year immediately before the adjustmentnew text end; and

(4) for each January 1 following restoration of funding stability for the applicable
retirement plan, for each annuity or benefit recipient who has been receiving an annuity or
a benefit for at least one full month, but less than 12 full months as of the deleted text begincurrentdeleted text end June
30new text begin of the calendar year immediately before the adjustmentnew text end, an annual postretirement
increase of 1/12 of 2.5 percent for each month the person has been receiving an annuity or
benefit must be applied.

(b) Funding stability is restored when the market value of assets of the applicable
retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the
applicable plan in the two most recent consecutive actuarial valuations prepared under
section 356.215 and the standards for actuarial work by the approved actuary retained by
the Public Employees Retirement Association under section 356.214.

(c) After having met the definition of funding stability under paragraph (b), the
increase provided in paragraph (a), clauses (1) and (2), rather than an increase under
subdivision 1, is again to be applied in a subsequent year or years if the market value of
assets of the applicable plan equals or is less than:

(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
consecutive actuarial valuations; or

(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
recent actuarial valuation.

(d) An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the Public Employees Retirement Association requesting that the
increase not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 7.

Minnesota Statutes 2014, section 356.415, subdivision 1c, is amended to read:


Subd. 1c.

Annual postretirement adjustments; PERA-police and fire.

(a)
Retirement annuity, disability benefit, or survivor benefit recipients of the public
employees police and fire retirement plan are entitled to a postretirement adjustment
annually on January 1, deleted text beginuntildeleted text end new text beginif the definition of new text endfunding stability deleted text beginis restoreddeleted text endnew text begin under
paragraph (c) has not been met
new text end, as follows:

(1) for each annuitant or benefit recipient whose annuity or benefit effective date is
on or before June 1, 2014, who has been receiving the annuity or benefit for at least 12
full months as of the immediate preceding June 30, an amount equal to one percent in
each year; or

(2) for each annuitant or benefit recipient whose annuity or benefit effective date
is on or before June 1, 2014, who has been receiving the annuity or benefit for at least
one full month, but deleted text beginnotdeleted text end less than deleted text begin11deleted text end new text begin12 new text endmonths, as of the immediate preceding June 30, an
amount equal to 1/12 of one percent for each month of annuity or benefit receipt; and

(3) for each annuitant or benefit recipient whose annuity or benefit effective date is
after June 1, 2014, unless Laws 2014, chapter 296, article 13, section 27, applies, who will
have been receiving an annuity or benefit for at least 36 full months as of the immediate
preceding June 30, an amount equal to one percent; or

(4) for each annuitant or benefit recipient whose annuity or benefit effective date is
after June 1, 2014, unless Laws 2014, chapter 296, article 13, section 27, applies, who
has been receiving the annuity or benefit for at least 25 full months, but less than 36
months as of the immediate preceding June 30, an amount equal to 1/12 of one percent for
each full month of annuity or benefit receipt during the fiscal year in which the annuity
or benefit was effective.

(b) Retirement annuity, disability benefit, or survivor benefit recipients of the public
employees police and fire retirement plan are entitled to a postretirement adjustment
annually on each January 1 following the restoration of funding stability as defined under
paragraph (c) and during the continuation of funding stability as defined under paragraph
(c), as follows:

(1) for each annuitant or benefit recipient who has been receiving the annuity or
benefit for at least 36 full months as of the immediate preceding June 30, an amount
equal to deleted text beginthe percentage increase in the Consumer Price Index for urban wage earners and
clerical workers all items index published by the Bureau of Labor Statistics of the United
States Department of Labor between the immediate preceding June 30 and the June 30
occurring 12 months previous, but not to exceed
deleted text end 2.5 percent; and

(2) for each annuitant or benefit recipient who has been receiving the annuity
or benefit for at least 25 full months, but less than 36 full months, as of the immediate
preceding June 30, an amount equal to 1/12 of deleted text beginthe percentage increase in the Consumer
Price Index for urban wage earners and clerical workers all items index published by
the Bureau of Labor Statistics of the United States Department of Labor between the
immediate preceding June 30 and the June 30 occurring 12 months previous for each full
month of annuity or benefit receipt during the fiscal year in which the annuity or benefit
was effective, but not to exceed 1/12 of
deleted text end 2.5 percent for each full month of annuity or
benefit receipt during the fiscal year in which the annuity or benefit was effective.

(c) Funding stability is restored when the market value of assets of the public
employees police and fire retirement plan equals or exceeds 90 percent of the actuarial
accrued liabilities of the applicable plan in the two most recent consecutive actuarial
valuations prepared under section 356.215 and under the standards for actuarial work of
the Legislative Commission on Pensions and Retirement by the approved actuary retained
by the Public Employees Retirement Association under section 356.214.

(d) After having met the definition of funding stability under paragraph (c), a full
or prorated increase, as provided in paragraph (a), clause (1), (2), (3), or (4), whichever
applies, rather than adjustments under paragraph (b), is again applied in a subsequent year
or years if the market value of assets of the public employees police and fire retirement
plan equals or is less than:

(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
consecutive actuarial valuations; or

(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
recent actuarial valuation.

(e) An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the Public Employees Retirement Association requesting that the
increase not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 8.

Minnesota Statutes 2014, section 356.415, subdivision 1d, is amended to read:


Subd. 1d.

Teachers Retirement Association annual postretirement adjustments.

(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers
Retirement Association are entitled to a postretirement adjustment annually on January
1, as follows:

deleted text begin (1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable;
deleted text end

deleted text begin (2)deleted text endnew text begin (1)new text end for deleted text beginJanuary 1, 2013, anddeleted text end each successive January 1 until funding stability is
restored, a postretirement increase of two percent must be applied each year, effective on
January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient
who has been receiving an annuity or a benefit for at least deleted text begin18deleted text end new text begin12 new text endfull months deleted text beginprior to the
January 1 increase
deleted text endnew text begin as of the June 30new text endnew text begin of the calendar year immediately before the adjustmentnew text end;

deleted text begin (3)deleted text end new text begin(2) new text endfor deleted text beginJanuary 1, 2013, anddeleted text end each successive January 1 until funding stability
is restored, for each annuitant or benefit recipient who has been receiving an annuity or
a benefit for at least deleted text beginsixdeleted text end new text beginone full month, but less than 12 new text endfull months deleted text beginbefore the January
1 increase
deleted text endnew text begin as of the June 30new text endnew text begin of the calendar year immediately before the adjustmentnew text end, an
annual postretirement increase of 1/12 of two percent for each month the person has been
receiving an annuity or benefit must be applieddeleted text begin, effective January 1, for which the person
has been retired for at least six months but less than 18 months
deleted text end;

deleted text begin (4)deleted text end new text begin(3) new text endfor each January 1 following the restoration of funding stability, a
postretirement increase of 2.5 percent must be applied each year, effective January 1, to
the monthly annuity or benefit amount of each annuitant or benefit recipient who has been
receiving an annuity or a benefit for at least deleted text begin18deleted text end new text begin12 new text endfull months deleted text beginprior to the January 1
increase
deleted text endnew text begin as of the June 30new text endnew text begin of the calendar year immediately before the adjustmentnew text end; and

deleted text begin (5)deleted text end new text begin(4) new text endfor each January 1 following the restoration of funding stability, for each
annuitant or benefit recipient who has been receiving an annuity or a benefit for at least
deleted text beginsix deleted text endnew text beginone month, but less than 12 new text endfull months deleted text beginbefore the January 1 increasedeleted text endnew text begin as of the June
30
new text endnew text begin of the calendar year immediately before the adjustmentnew text end, an annual postretirement
increase of 1/12 of 2.5 percent for each month the person has been receiving an annuity or
benefit must be applieddeleted text begin, effective January 1, for which the person has been retired for at
least six months but less than 18 months
deleted text end.

(b) Funding stability is restored when the market value of assets of the Teachers
Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities
of the Teachers Retirement Association in the two most recent prior actuarial valuations
prepared under section 356.215 and the standards for actuarial work by the approved
actuary retained by the Teachers Retirement Association under section 356.214.

new text begin (c) After having met the definition of funding stability under paragraph (b), the
increase provided in paragraph (a), clauses (1) and (2), rather than an increase under
subdivision 1, or the increase under paragraph (a), clauses (3) and (4), is again to be applied
in a subsequent year or years if the market value of assets of the plan equals or is less than:
new text end

new text begin (1) 85 percent of the actuarial accrued liabilities of the plan for two consecutive
actuarial valuations; or
new text end

new text begin (2) 80 percent of the actuarial accrued liabilities of the plan for the most recent
actuarial valuation.
new text end

deleted text begin (c)deleted text end new text begin(d) new text endAn increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the Teachers Retirement Association requesting that the increase
not be made.

deleted text begin (d)deleted text end new text begin(e) new text endThe retirement annuity payable to a person who retires before becoming
eligible for Social Security benefits and who has elected the optional payment as provided
in section 354.35 must be treated as the sum of a period-certain retirement annuity
and a life retirement annuity for the purposes of any postretirement adjustment. The
period-certain retirement annuity plus the life retirement annuity must be the annuity
amount payable until age 62, 65, or normal retirement age, as selected by the member
at retirement, for an annuity amount payable under section 354.35. A postretirement
adjustment granted on the period-certain retirement annuity must terminate when the
period-certain retirement annuity terminates.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 9.

Minnesota Statutes 2014, section 356.415, subdivision 1e, is amended to read:


Subd. 1e.

Annual postretirement adjustments; State Patrol retirement plan.

(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol
retirement plan are entitled to a postretirement adjustment annually on January 1new text begin if the
definition of funding stability under paragraph (b) has not been met
new text end, as follows:

(1) a postretirement increase of one percent must be applied each year, effective on
January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least deleted text begin18deleted text end new text begin12 new text endfull months deleted text beginbefore the January 1
increase
deleted text endnew text begin as of the June 30new text endnew text begin of the calendar year immediately before the adjustmentnew text end; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least deleted text beginsixdeleted text end new text beginone full month, but less than 12 new text endfull monthsnew text begin as of the June 30new text endnew text begin of the
calendar year immediately before the adjustment
new text end, an annual postretirement increase of
1/12 of one percent for each month that the person has been receiving an annuity or benefit
must be applieddeleted text begin, effective January 1, following the calendar year in which the person has
been retired for at least six months, but has been retired for less than 18 months
deleted text end.

(b) deleted text beginThe increases provided by this subdivision commence on January 1, 2014.
deleted text endIncreases under paragraph (a) for the State Patrol retirement plan terminate on December
31 of the calendar year in which two prior consecutive actuarial valuations new text beginfor the
plan
new text endprepared by the approved actuary under sections 356.214 and 356.215 and the
standards for actuarial work promulgated by the Legislative Commission on Pensions
and Retirement indicates that the market value of assets of the retirement plan equals or
exceeds 85 percent of the actuarial accrued liability of the retirement plannew text begin. Thereafter,
increases under paragraph (a) become effective again on the December 31 of the calendar
year in which the actuarial valuation, or prior consecutive actuarial valuations for the
plan prepared by the approved actuary under sections 356.214 and 356.215 and the
standards for actuarial work promulgated by the Legislative Commission on Pensions and
Retirement indicates that the market value of the assets of the retirement plan equals or is
less than 80 percent of the actuarial accrued liability of the retirement plan for two years,
or equals or is less than 75 percent of the actuarial accrued liability of the retirement plan
for one year
new text end and increases under paragraph (c) deleted text beginrecommencedeleted text end new text begincommence new text endafter that date.

(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State
Patrol retirement plan are entitled to a postretirement adjustment annually on January
1, as follows:

(1) a postretirement increase of 1.5 percent must be applied each year, effective on
January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least deleted text begin18deleted text end new text begin12 new text endfull months deleted text beginbefore the January 1
increase
deleted text endnew text begin as of the June 30new text endnew text begin of the calendar year immediately before the adjustmentnew text end; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least deleted text beginsixdeleted text end new text beginone full month, but less than 12 new text endfull monthsnew text begin as of the June 30new text endnew text begin of the
calendar year immediately before the adjustment
new text end, an annual postretirement increase of
1/12 of 1.5 percent for each month that the person has been receiving an annuity or benefit
must be applieddeleted text begin, effective January 1, following the calendar year in which the person has
been retired for at least six months, but has been retired for less than 18 months
deleted text end.

(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on
December 31 of the calendar year in which two prior consecutive actuarial valuations
prepared by the approved actuary under sections 356.214 and 356.215 and the standards
for actuarial work adopted by the Legislative Commission on Pensions and Retirement
indicates that the market value of assets of the retirement plan equals or exceeds 90
percent of the actuarial accrued liability of the retirement plan and increases under
subdivision 1 recommence after that date.

(e) An increase in annuity or benefit payments under this subdivision must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the applicable covered retirement plan requesting that the increase
not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 10.

Minnesota Statutes 2014, section 356.415, subdivision 1f, is amended to read:


Subd. 1f.

Annual postretirement adjustments; Minnesota State Retirement
System judges retirement plan.

(a) The increases provided under this subdivision begin
on January 1, 2014, and are in lieu of increases under subdivision 1 or 1a for retirement
annuity, disability benefit, or survivor benefit recipients of the judges retirement plan.

(b) Retirement annuity, disability benefit, or survivor benefit recipients of the
judges retirement plan are entitled to a postretirement adjustment annually on January
1, as follows:

(1) a postretirement increase of 1.75 percent must be applied each year, effective on
January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least deleted text begin18deleted text end new text begin12 new text endfull months deleted text beginbefore the January 1
increase
deleted text endnew text begin as of the June 30new text endnew text begin of the calendar year immediately before the adjustmentnew text end; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least deleted text beginsixdeleted text end new text beginone full month, but less than 12 new text endfull monthsnew text begin as of the June 30new text endnew text begin of
the calendar year immediately before the adjustment
new text end, an annual postretirement increase
of 1/12 of 1.75 percent for each month that the person has been receiving an annuity or
benefit must be applieddeleted text begin, effective January 1, following the calendar year in which the
person has been retired for at least six months, but has been retired for less than 18 months
deleted text end.

(c) Increases under this subdivision terminate on December 31 of the calendar year
in which two prior consecutive actuarial valuations prepared by the approved actuary
under sections 356.214 and 356.215 and the standards for actuarial work promulgated
by the Legislative Commission on Pensions and Retirement indicates that the market
value of assets of the judges retirement plan equals or exceeds 70 percent of the actuarial
accrued liability of the retirement plan. Increases under subdivision 1 or 1a, whichever is
applicable, begin on the January 1 next following that date.

(d) An increase in annuity or benefit payments under this subdivision must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the applicable covered retirement plan requesting that the increase
not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 354A.42, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

ARTICLE 5

CONTRIBUTION STABILIZER PROVISION MODIFICATIONS

Section 1.

Minnesota Statutes 2014, section 352.045, is amended to read:


352.045 PROCEDURE FOR REVISING EMPLOYEE AND EMPLOYER
CONTRIBUTIONS IN CERTAIN INSTANCES.

Subdivision 1.

Application.

This section applies to the general state employees
retirement plan deleted text beginand todeleted text endnew text begin established under this chapter,new text end the correctional state employees
retirement plan new text beginestablished new text endunder this chapter, and deleted text begintodeleted text end the state patrol retirement plan
new text beginestablished new text endunder chapter 352B.

Subd. 2.

Determination.

For purposes of this section, a contribution sufficiency
exists if, for deleted text beginpurposes ofdeleted text end the applicable plan, the total of the employee contributions, the
employer contributions, and any additional employer contributions, if applicable, exceeds
the total of the normal cost, the administrative expenses, and the amortization contribution
of the retirement plan as reported in the most recent actuarial valuation of the retirement
plan prepared by the new text beginapproved new text endactuary 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. For purposes of this section, a contribution deficiency exists
if, for the applicable plan, the total employee contributions, employer contributions,
and any additional employer contributions are less than the total of the normal cost, the
administrative expenses, and the amortization contribution of the retirement plan as
reported in the most recent actuarial valuation of the retirement plan prepared by the
new text beginapproved new text endactuary 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.

Subd. 3a.

Contribution rate revision; general state employees retirement plan.

(a) Notwithstanding the contribution rates deleted text beginstated in plan lawdeleted text endnew text begin as specified in law governing
the applicable retirement plan
new text end, the new text beginboard of directors of the Minnesota State Retirement
System may adjust the
new text endemployee and employer contribution rates for the general state
employees retirement plan deleted text beginmust be adjusted:
deleted text end

deleted text begin (1)deleted text end if the regular actuarial valuation of the plan new text beginprepared new text endunder section 356.215
indicates that there is a contribution sufficiency greater than one percent of covered payroll
deleted text beginand that the sufficiency has existed for at least two consecutive years, the employee and
employer contribution rates must be decreased as determined under paragraph (b) to a
level such that the sufficiency is no greater than one percent of covered payroll based
on the most recent actuarial valuation;
deleted text end or

deleted text begin (2) if the regular actuarial valuation of the plan under section 356.215 indicatesdeleted text end that
there is a contribution deficiency new text beginunder subdivision 2 new text endequal to or greater than deleted text begin0.5deleted text end new text beginone-half
of one
new text endpercent of covered payroll deleted text beginand that the deficiency has existed for at least two
consecutive years, the employee and employer contribution rates must be increased as
determined under paragraph (c) to a level such that no deficiency exists based on the
most recent actuarial valuation
deleted text end.

(b) If the actuarially deleted text beginrequireddeleted text end new text begindetermined new text endcontribution of the plan is less than the
total support provided by the combined employee and employer contribution rates by
more than one percent of covered payroll, the plan employee and employer contribution
rates deleted text beginmustdeleted text end new text beginmay new text endbe decreased incrementally over one or more years deleted text beginby no more than
0.25 percent of pay each for employee and employer contribution rates
deleted text end to a level such
that there remains a contribution sufficiency of at least one percent of covered payroll.
deleted text beginNo contribution ratedeleted text end new text beginAny new text enddecrease deleted text beginmay be made until at least two years have elapsed
since any adjustment under this paragraph has been fully implemented
deleted text endnew text begin in employee and
employer contribution rates must not result in total contributions that are less than the sum
of the normal cost and administrative expenses of the retirement plan
new text end.

(c) If the actuarially required contribution exceeds the total support provided by
the employee and employer contribution rates, new text beginthe board of directors may increase new text endthe
employee and employer contribution rates deleted text beginmust be increaseddeleted text end equally to eliminate that
contribution deficiency. deleted text beginIf the contribution deficiency is:
deleted text end

deleted text begin (1) less than two percent, the incremental increase may be up to 0.25 percent each
for the employee and employer contribution rates;
deleted text end

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

deleted text begin (3) greater than four percent, the incremental increase may be up to 0.75 percent
each for the employee and employer contribution.
deleted text end

(d) new text beginTo determine if an adjustment is to be made, the board of directors shall consult
with the approved actuary retained under section 356.214 and shall take into consideration
factors that include, but are not limited to, the contribution rates calculated based on the
actuarial value of assets and calculated based on the market value of assets; the funded
ratio calculated based on the actuarial value of assets; the funded ratio calculated based on
the market value of assets; the remaining number of years to the amortization target date;
the recent experience of the investment markets; and the results of the 30-year funding,
disbursements, and contribution projections prepared every other year as required under
the standards for actuarial work adopted by the Legislative Commission on Pensions
and Retirement.
new text end

new text begin (e) new text endAny deleted text beginrecommendeddeleted text end 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 receipt of the most recent annual actuarial valuation
prepared under section 356.215. The report must include draft legislation to revise the
employee and employer contributions stated in plan law. 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 deleted text beginrecommendeddeleted text end adjustment becomes
effective on the first day of the first full payroll period in the fiscal year following receipt
of the most recent actuarial valuation that gave rise to the adjustment.

deleted text begin (e)deleted text end new text begin(f) new text endA contribution sufficiency of up to one percent of covered payroll must be
held in reserve to be used to offset any future actuarially deleted text beginrequireddeleted text end new text begindetermined new text endcontributions
that are more than the total combined employee and employer contributions.

deleted text begin (f)deleted text end new text begin(g) new text endBefore any reduction in contributions to eliminate a sufficiency in excess of
one percent of covered pay may be deleted text beginrecommendeddeleted text endnew text begin madenew text end, the executive director must
review any need for a change in actuarial assumptions, as recommended by the new text beginapproved
new text endactuary 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 deleted text beginrequireddeleted text end new text begindetermined new text endcontribution and must report to
the Legislative Commission on Pensions and Retirement any deleted text beginrecommendationdeleted text end new text begindecision
new text endby 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.

deleted text begin (g)deleted text end new text begin(h) new text endNo 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 deleted text beginautomaticdeleted text end adjustment to increase contributions under this subdivision.
Any proposed benefit improvement must include a recommendation, prepared by the
new text beginapproved new text endactuary 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.

Subd. 3b.

Contribution rate revision; correctional state employees retirement
plan and State Patrol retirement plan.

(a) Subdivision 3a applies to the correctional
state employees retirement plan under this chapter and to the State Patrol retirement
plan established under chapter 352B, except as deleted text beginstated in this subdivisiondeleted text endnew text begin specified in
paragraph (b) or (c)
new text end.

(b) Any limitations on the amount of contribution rate changes stated in subdivision
3a apply only to the amount of the employee contribution revision. The employer
contribution for the correctional state employees retirement plan or the State Patrol
retirement plan, whichever is applicable, must be adjusted so that the employer
contribution is equal to 60 percent of the sum of employee plus employer contributions.

(c) For the State Patrol retirement plan, a contribution sufficiency of up to two
percent of covered payroll, rather than one percent, may be held in reserves without taking
action to reduce employee and employer contributions.

Sec. 2.

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) new text beginNotwithstanding the contribution rate provision specified under subdivisions 2,
3, and 3a, the board of trustees of the Public Employees Retirement Association may
adjust the
new text endemployee and employer contributions to the general employees retirement plan
under subdivisions 2 and 3 deleted text beginmust be adjusted:
deleted text end

deleted text begin (1)deleted text end if the regular actuarial valuation of the general employees retirement plan of
the Public Employees Retirement Association new text beginprepared new text endunder section 356.215 indicates
that there is a contribution sufficiency under paragraph (a) greater than one percent of
covered payroll deleted text beginand 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;
deleted text end or

deleted text begin (2) if the regular actuarial valuation of the general employees retirement plan of the
Public Employees Retirement Association under section 356.215 indicates
deleted text end that there
is a contribution deficiency new text beginunder paragraph (a) new text endequal to or greater than deleted text begin0.5deleted text end new text beginone-half
of one
new text endpercent of covered payroll deleted text beginand 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
deleted text end.

(c) If the actuarially deleted text beginrequireddeleted text end new text begindetermined new text endcontribution 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 deleted text beginmustdeleted text end new text beginmay new text endbe decreased
deleted text beginincrementallydeleted text end over one or more years deleted text beginby no more than 0.25 percent of pay each for
employee and employer matching contribution rates
deleted text end to a level such that there remains a
contribution sufficiency of at least one percent of covered payroll. deleted text beginNo contribution rate
decrease may be made until at least two years have elapsed since any adjustment under
this subdivision has been fully implemented.
deleted text endnew text begin Any decrease in employee and employer
contribution rates must not result in total contributions that are less than the total of the
normal cost of the retirement plan and the administrative expenses of the retirement plan.
new text end

(d) If the actuarially deleted text beginrequireddeleted text end new text begindetermined new text endcontribution exceeds the total support
provided by the combined employee and employer contribution rates under subdivisions
2, 3, and 3a, the new text beginboard of trustees may increase the new text endemployee and matching employer
contribution rates deleted text beginmust be increased equallydeleted text end to eliminate that contribution deficiency.
deleted text beginIf the contribution deficiency is:
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (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
deleted text end

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

(e) deleted text beginThe general employees retirement plan contribution sufficiency or deficiency
determination under paragraphs (a) to (d) must be made without the inclusion of the
contributions to, the funded condition of, or the actuarial funding requirements of the
MERF division.
deleted text endnew text begin To determine if an adjustment is to be made, the board of trustees shall
consult with the approved actuary retained under section 356.214 and shall take into
consideration factors that include, but are not limited to, the contribution rates based on
actuarial value of assets and contribution rates based on the market value of assets; the
funded ratio based on the actuarial value of assets and based on the market value of assets;
the number of years remaining to the amortization target date; the recent experience
of the investment markets; and the results of the 30-year funding, disbursements, and
contributions projections prepared every other year as required under the standards for
actuarial work adopted by the Legislative Commission on Pensions and Retirement.
new text end

(f) Any deleted text beginrecommendeddeleted text end 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'
deleted text beginrecommendation to adjustdeleted text end new text beginadjustment to new text endthe 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 deleted text beginrequireddeleted text end new text begindetermined new text endcontributions
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 deleted text beginrecommendeddeleted text endnew text begin madenew text end, 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 deleted text beginrequireddeleted text end new text begindetermined new text endcontribution and must report to the
Legislative Commission on Pensions and Retirement any deleted text beginrecommendationdeleted text end new text begindecision new text endby 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 deleted text beginautomaticdeleted text end adjustment to increase contributions under this subdivision.
Any proposed benefit improvement must include a recommendation, prepared by the
new text beginapproved new text endactuary 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2014, section 354.42, subdivision 4b, is amended to read:


Subd. 4b.

Contribution rate revision.

new text begin(a) new text endNotwithstanding the contribution rate
provisions under subdivisions 2 and 3, thenew text begin Board of Trustees of the Teachers Retirement
Association may adjust the
new text end employee and employer contribution rates deleted text beginmay be adjusted
as follows:
deleted text end

deleted text begin (1)deleted text end ifdeleted text begin, after June 30, 2015,deleted text end the regular actuarial valuation of the plan under section
356.215 indicates that there is a contribution sufficiency under subdivision 4a equal to or
greater than one percent of covered payroll deleted text beginand the sufficiency has existed for at least two
consecutive years, the employee and employer contribution rates for the plan may each be
decreased to a level such that the sufficiency equals no more than one percent of covered
payroll based on the most recent actuarial valuation;
deleted text end or

deleted text begin (2)deleted text end ifdeleted text begin, after June 30, 2015,deleted text end the regular valuation of the plan under section 356.215
indicates that there is a deficiency equal to or greater than deleted text begin0.25deleted text endnew text begin one-half of onenew text end percent
of covered payroll deleted text beginand the deficiency has existed for at least two consecutive years, the
employee and employer contribution rates for the applicable plan may each be increased by:
deleted text end

deleted text begin (i) 0.25 percent if the deficiency is less than two percent of covered payroll;
deleted text end

deleted text begin (ii) 0.5 percent if the deficiency is equal to or greater than two percent of covered
payroll and less than or equal to four percent; and
deleted text end

deleted text begin (iii) 0.75 percent if the deficiency is greater than four percentdeleted text end.new text begin Any decrease in
employee and employer contribution rates must not result in the total of contribution rates
that is less than the total of normal cost and administrative expenses.
new text end

new text begin (b) To determine if an adjustment is to be made, the board of trustees shall consult
with the approved actuary retained under section 356.214 and shall take into consideration
factors that include, but are not limited to, the contribution rates based on actuarial value of
assets and contribution rates based on the market value of assets; the funded ratio based on
the actuarial value of assets and based on the market value of assets; the number of years
remaining to the amortization target date; the recent experience of the investment markets;
and the results of the 30-year funding, disbursements, and contributions projections
prepared every other year as required under the standards for actuarial work adopted by
the Legislative Commission on Pensions and Retirement.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2014, section 354.42, subdivision 4d, is amended to read:


Subd. 4d.

Reporting; commission review.

A contribution rate increase or decrease
new text beginmade new text endunder subdivision 4bdeleted text begin, as determined by the executive director of the Teachers
Retirement Association,
deleted text end must be reported to the chair and the executive director of the
Legislative Commission on Pensions and Retirement on or before the next February 1 and,
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, is effective on the next
July 1 following the determination deleted text beginby the executive directordeleted text end that a contribution deficiency
or sufficiency exists based on the most recent actuarial valuation under section 356.215.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 6

POLICE AND FIREFIGHTER RETIREMENT SUPPLEMENTAL STATE AID

Section 1.

Minnesota Statutes 2014, section 423A.022, subdivision 5, is amended to
read:


Subd. 5.

Aid termination.

new text begin(a) new text endThe aid deleted text beginprogramdeleted text end under deleted text beginthis sectiondeleted text end new text beginsubdivision 2,
paragraph (a), clauses (1) and (3),
new text endends on the December 1 next following the actuarial
valuation date on which the assets of the retirement plan on a market value basis equals
or exceeds 90 percent of the total actuarial accrued liabilities of the retirement plan as
disclosed in an actuarial valuation prepared under section 356.215 and the Standards for
Actuarial Work promulgated by the Legislative Commission on Pensions and Retirement,
for the State Patrol retirement plan or the public employees police and fire retirement
plan, whichever occurs last.

new text begin (b) The aid under subdivision 2, paragraph (a), clause (2), does not terminate.
new text end

ARTICLE 7

STATEWIDE VOLUNTEER FIREFIGHTER RETIREMENT PLAN LUMP
SUM RETIREMENT DIVISION MODIFICATIONS

Section 1.

Minnesota Statutes 2014, section 353G.09, subdivision 3, is amended to read:


Subd. 3.

Alternative pension eligibility and computation.

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

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

(2) has attained the age of at least 50 years or the age for receipt of a service pension
under the benefit plan of the applicable former volunteer firefighters relief association as
of the date immediately deleted text beginprior todeleted text end new text beginbefore new text endthe election of the retirement coverage change,
whichever is later;

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

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

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

Sec. 2.

Minnesota Statutes 2014, section 353G.11, subdivision 1, is amended to read:


Subdivision 1.

new text beginService pension new text endlevels.

new text beginExcept as provided in subdivision 1a, new text endthe
retirement plan provides the following levels of service pension amounts new text beginper full year of
good time service credit
new text endto be selected at the election of coveragedeleted text begin, or, if fully funded,
thereafter
deleted text end:

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

new text begin (1) a minimum service pension level of $500 per year;
new text end

new text begin (2) a maximum service pension level of $7,500 per year; and
new text end

new text begin (3) 69 service pension levels between the minimum level and the maximum level
in $100 increments.
new text end

Sec. 3.

Minnesota Statutes 2014, section 353G.11, subdivision 1a, is amended to read:


Subd. 1a.

Continuation of prior service pension levels.

new text begin(a) new text endIf a municipality or
independent nonprofit firefighting corporation elects to be covered by the retirement plan
deleted text beginprior todeleted text end new text beginbefore new text endJanuary 1, 2010, and selects the $750 per year of good time service credit
service pension amount effective for January 1, 2010, that level continues for the volunteer
firefighters of that municipality or independent nonprofit firefighting corporation until a
different service pension amount is selected under subdivision 2 after January 1, 2010.

new text begin (b) If a municipality or independent nonprofit firefighting corporation elected to be
covered by the retirement plan before January 1, 2015, and selected a service pension
level under subdivision 1, other than a good time service credit service pension amount
under subdivision 1, that level continues for the volunteer firefighters of the municipality
or independent nonprofit firefighting corporation until a different service pension amount
is selected under subdivision 2 after January 1, 2014.
new text end

Sec. 4.

Minnesota Statutes 2014, section 353G.11, subdivision 2, is amended to read:


Subd. 2.

Level selection.

deleted text beginAt the time ofdeleted text end new text beginAfter new text endthe deleted text beginelection todeleted text end transfer new text beginof new text endretirement
coveragedeleted text begin, or on April 30 thereafterdeleted text endnew text begin to the retirement plannew text end, the governing body or bodies of
the entity or entities operating the fire department whose firefighters are covered by the
retirement plan may request a cost estimate from the executive director of an increase in
the service pension level applicable to the active firefighters of the fire department. Within
deleted text begin90deleted text end new text begin120 new text enddays of the receipt of the cost estimate prepared by the executive director using a
procedure certified as accurate by the approved actuary retained by the Public Employees
Retirement Association, the governing body or bodies may approve the service pension
level change, effective for new text beginJanuary 1 of new text endthe following calendar yearnew text begin unless the governing
body or bodies specify in the approved document an effective date as the January 1 of the
second year following the level increase approval. If the approval occurs after April 30,
the required municipal contribution for the following calendar year must be recalculated
and the results reported to the municipality or municipalities
new text end. If not approved in a timely
fashion, the service pension level change is considered to have been disapproved.

Sec. 5.

Minnesota Statutes 2014, section 353G.11, subdivision 4, is amended to read:


Subd. 4.

Ancillary benefits.

new text beginExcept as provided under section 353G.115, new text endno
disability, death, funeral, or other ancillary benefit beyond a service pension or a survivor
benefit is payable from the retirement plan.

Sec. 6.

Minnesota Statutes 2014, section 353G.13, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

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

Sec. 7.

Minnesota Statutes 2014, section 353G.13, subdivision 2, is amended to read:


Subd. 2.

Combined service pension computation.

The service pension payable to
a firefighter who qualifies under subdivision 1 is the per year of good time service credit
service pension amount in effect for each account in which the firefighter has new text beginone or more
years of
new text endgood time service credit as of the date on which the firefighter terminated active
service with the fire department associated with the applicable account, multiplied by
the number of years of good time service credit that the firefighter has in the applicable
accountnew text begin and adjusted for the vesting percentage based on the total number of years of good
time service covered in the applicable accounts
new text end.

Sec. 8. new text beginEFFECTIVE DATE.
new text end

new text begin Unless otherwise specified, this article is effective July 1, 2015.
new text end

ARTICLE 8

STATEWIDE VOLUNTEER FIREFIGHTER RETIREMENT PLAN MONTHLY
BENEFIT RETIREMENT DIVISION CREATION

Section 1.

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


Subd. 2.

Assets.

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

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

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

Sec. 2.

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


Subd. 6.

Fund.

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

Sec. 3.

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


Subd. 7.

Good time service credit.

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

Sec. 4.

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


new text begin Subd. 7a. new text end

new text begin Lump-sum account. new text end

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

Sec. 5.

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


new text begin Subd. 7b. new text end

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

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

Sec. 6.

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


new text begin Subd. 8a. new text end

new text begin Monthly benefit account. new text end

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

Sec. 7.

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


new text begin Subd. 8b. new text end

new text begin Monthly benefit retirement division. new text end

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

Sec. 8.

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


new text begin Subd. 10a. new text end

new text begin Retirement benefit plan document. new text end

new text begin "Retirement benefit plan
document", for an account in the monthly benefit retirement division, means the articles of
incorporation and bylaws of the prior former volunteer firefighters relief association in
effect on the day before the date on which the retirement coverage transfer under section
353G.05 occurred or as provided in the most recent modification under section 353G.121.
new text end

Sec. 9.

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


Subd. 11.

Retirement fund.

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

Sec. 10.

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


Subd. 12.

Retirement plan.

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

Sec. 11.

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


353G.02 PLAN AND FUND CREATION.

Subdivision 1.

Retirement plan.

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

Subd. 2.

Administration.

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

Subd. 3.

Retirement fund.

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

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

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

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

Subd. 4.

Audit; actuarial valuation.

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

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

Subd. 5.

Legal advisor; attorney general.

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

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

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

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

new text begin Subd. 6. new text end

new text begin Initial administrative expenses of the monthly benefit retirement
division; allocation of reimbursement.
new text end

new text begin (a) The administration expenses incurred by the
Public Employees Retirement Association in the establishment of the monthly benefit
retirement division of the voluntary statewide volunteer firefighters retirement plan,
including any computer programming expenses and any actuarial consultant expenses, are
payable from the assets of the initial monthly benefit volunteer firefighter relief association
that elects to transfer its administration to the voluntary statewide volunteer firefighter
retirement plan, following the transfer of assets.
new text end

new text begin (b) The administrative expenses in excess of $33,600 paid under paragraph (a) must
be reimbursed by the next nine monthly benefit volunteer firefighter relief associations that
transfer plan administration to the voluntary statewide volunteer firefighters retirement
plan. The reimbursement charge for each of the nine is three-tenths of one percent of the
market value of assets of the volunteer firefighter relief association as of December 31,
2012. The reimbursement amounts, up to the amount of administrative expenses actually
incurred under paragraph (a) in excess of $33,600, must be credited to the account of the
fire department associated with the former monthly benefit volunteer firefighter relief
association that first transferred plan administration to the volunteer firefighter retirement
plan.
new text end

Sec. 12.

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


353G.03 VOLUNTARY STATEWIDE deleted text beginLUMP-SUMdeleted text end VOLUNTEER
FIREFIGHTER RETIREMENT PLAN ADVISORY BOARD.

Subdivision 1.

Establishment.

A Voluntary Statewide deleted text beginLump-Sumdeleted text end Volunteer
Firefighter Retirement Plan Advisory Board is created.

Subd. 2.

Function; purpose.

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

Subd. 3.

Composition.

(a) The advisory board consists of deleted text beginsevendeleted text end new text begineight new text endmembers.

(b) The advisory board members are:

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

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

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

(4) two representatives of Minnesota volunteer firefighters, new text beginall new text endwho are active
volunteer firefighters, new text beginone of whom is covered by the lump-sum retirement division and
one of whom is covered by the monthly benefit retirement division, appointed by the
Minnesota State Fire Chiefs Association;
new text end

new text begin (5) one representative of Minnesota volunteer firefighters who is covered by
the lump-sum retirement division,
new text endappointed by the Minnesota State Fire Departments
Association; and

deleted text begin (5)deleted text endnew text begin (6)new text end one representative of the Office of the State Auditor, designated by the state
auditor.

Subd. 4.

Term.

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

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

Subd. 5.

Compensation of advisory board.

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

new text begin EFFECTIVE DATE. new text end

new text begin Subdivisions 1, 2, 4, and 5 are effective July 1, 2015.
Subdivision 3 is effective the July 1 next following the day on which one or more
volunteer firefighter relief associations providing monthly service pensions in whole or in
part transfer administration of the retirement plan to the Public Employees Retirement
Association under Minnesota Statutes, chapter 353G.
new text end

Sec. 13.

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


353G.04 INFORMATION FROM MUNICIPALITIES AND FIRE
DEPARTMENTS.

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

Sec. 14.

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


353G.05 PLAN COVERAGE ELECTION.

Subdivision 1.

Coverage.

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

Subd. 2.

Election of coveragenew text begin; lump sumnew text end.

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

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

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

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

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

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

new text begin Subd. 3. new text end

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

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

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

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

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

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

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

new text begin Subd. 4. new text end

new text begin Invested assets review. new text end

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

new text begin Subd. 5. new text end

new text begin Finalization; coverage transfer. new text end

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

Sec. 15.

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


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

Subdivision 1.

Special fund disestablishment.

On the deleted text begindatedeleted text end new text beginDecember 31
new text endimmediately prior to the effective date of the coverage change, the special fund of the
applicable volunteer firefighters relief association, if one exists, ceases to exist as a
pension fund of the association and legal title to the assets of the special fund transfers
to the State Board of Investment, with the new text beginundivided new text endbeneficial title to the assets of the
special fund remaining in the applicable volunteer firefightersnew text begin as a groupnew text end.

Subd. 2.

Other relief association changes.

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

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

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

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

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

Subd. 3.

Successor in interest.

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

Sec. 16.

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


353G.07 CERTIFICATION OF GOOD TIME SERVICE CREDIT.

(a) Annually, by March 31, the fire chief of the fire department with firefighters who
are active members of new text begineither new text endthe new text beginlump-sum new text endretirement deleted text beginplandeleted text end new text begindivision or the monthly benefit
retirement division
new text endshall certify to the executive director the good time service credit for the
previous calendar year of each firefighter rendering active service with the fire department.

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

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

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

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

Sec. 17.

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


353G.08 RETIREMENT PLAN FUNDING; DISBURSEMENTS.

Subdivision 1.

Annual funding requirementsnew text begin; lump-sum retirement divisionnew text end.

(a)
Annually, the executive director shall determine the funding requirements of each account
in the new text beginlump-sum retirement division of the new text endvoluntary statewide deleted text beginlump-sumdeleted text end volunteer
firefighter retirement plan on or before August 1. The funding requirements deleted text beginas directed
deleted text endnew text begincomputed new text endunder this deleted text beginsection,deleted text end new text beginsubdivision new text endmust be determined using a mathematical
procedure developed and certified as accurate by deleted text beginandeleted text end new text beginthe new text endapproved actuary retained by the
Public Employees Retirement Association and new text beginmust be new text endbased on present value factors
using a six percent interest rate, without any decrement assumptions. The funding
requirements must be certified to the entity or entities associated with the fire department
whose active firefighters are covered by the retirement plan.

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

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

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

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

(c) The financial requirements of each new text beginlump-sum new text endaccount for the following calendar
year must be determined in the following manner:

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

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

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

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

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

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

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

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

new text begin Subd. 1a. new text end

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

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

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

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

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

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

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

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

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

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

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

Subd. 2.

Cash flow funding requirement.

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

Subd. 2a.

Additional municipal contributions authorized.

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

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

(c) Any contributions made under this subdivision must be included as total present
assets of the account for the calculation of any subsequent annual funding requirements
for the account under subdivision 1 or new text begin1a or new text endfor the calculation of any cash flow funding
requirement under subdivision 2.

Subd. 3.

Authorized account disbursements.

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

(1) the administrative expenses of the retirement plan;

(2) the investment expenses of the retirement fund;

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

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

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

Sec. 18.

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


353G.09 RETIREMENT BENEFIT ELIGIBILITY.

Subdivision 1.

Entitlement.

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

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

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

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

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

Subd. 2.

Vesting schedule; nonforfeitable portion of service pension.

new text begin(a) new text endIf an
active member new text beginof the lump-sum retirement division new text endhas completed less than 20 years of
good time service creditnew text begin as a member of the lump-sum retirement division of the plannew text end, the
person's entitlement new text beginto a service pension new text endis new text beginequal new text endto the nonforfeitable percentage of the
applicable service pension amount, as follows:

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

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

Subd. 3.

Alternative new text beginlump-sum new text endpension eligibility and computation.

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

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

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

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

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

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

Sec. 19.

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


353G.10 DEFERRED SERVICE PENSION AMOUNT.

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

Sec. 20.

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


353G.11 new text beginLUMP-SUM RETIREMENT DIVISION new text endSERVICE PENSION
LEVELS.

Subdivision 1.

Levelsnew text begin; lump-sum retirement divisionnew text end.

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

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

Subd. 1a.

Continuation of prior new text beginlump-sum new text endservice pension levels.

If a
municipality or independent nonprofit firefighting corporation deleted text beginelectsdeleted text end new text beginelected new text endto be covered
by the new text beginlump-sum retirement division of the new text endretirement plan deleted text beginprior todeleted text end new text beginbefore new text endJanuary 1,
2010, and deleted text beginselectsdeleted text endnew text begin selectednew text end the $750 per year of good time service credit service pension
amount effective for January 1, 2010, that level continues for the volunteer firefighters of
that municipality or independent nonprofit firefighting corporation until a different service
pension amount is selected under subdivision 2 after January 1, 2010.

Subd. 2.

new text beginLump-sum retirement division new text endlevel selection.

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

Subd. 3.

Supplemental benefit.

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

Subd. 4.

Ancillary benefits.

new text beginExcept as provided in section 353G.115 or 353G.12,
new text endno disability, death, funeral, or other ancillary benefit beyond a service pension or a
survivor benefit is payable from the new text beginlump-sum retirement account of the new text endretirement plan.

Sec. 21.

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

new text begin The service pension amount for the firefighters of a fire department covered by the
monthly benefit retirement division of the retirement plan is the amount specified in the
retirement benefit plan document applicable to the fire department.
new text end

Sec. 22.

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


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

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

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

new text begin (c) The disability benefit coverage for the monthly benefit retirement division is
the disability service pension amount specified in the retirement benefit plan document
applicable to the fire department, applicable former volunteer firefighters relief association
in effect as of the last day before the date on which retirement coverage transferred to the
voluntary statewide volunteer firefighter retirement plan, subject to all conditions and
limitations in the disability service pension specified therein.
new text end

Sec. 23.

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


Subd. 2.

new text beginLump-sum retirement plan; new text endsurvivor benefit amount.

The amount of
the survivor benefit new text beginfor the lump-sum retirement division new text endis the amount of the new text beginlump-sum
new text endservice pension that would have been payable to the member of the new text beginlump-sum new text endretirement
deleted text beginplandeleted text end new text begindivision new text endon the date of death if the member had been age 50 or older on that date.

Sec. 24.

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


new text begin Subd. 3. new text end

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

new text begin The amount
of the survivor benefit for the monthly benefit retirement division is the survivor service
pension amount specified in the retirement benefit plan document applicable to the fire
department, subject to all conditions and limitations for the benefit specified therein.
new text end

Sec. 25.

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

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

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

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

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

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

Sec. 26.

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


353G.13 new text beginLUMP-SUM RETIREMENT DIVISION; new text endPORTABILITY.

Subdivision 1.

Eligibility.

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

Subd. 2.

Combined service pension computation.

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

Subd. 3.

Payment.

A new text beginlump-sum new text endservice pension under this section must be paid
in a single payment, with the applicable portion of the total new text beginlump-sum new text endservice pension
payment amount deducted from each new text beginlump-sum retirement new text endaccount.

Sec. 27.

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


353G.14 PURCHASE OF ANNUITY CONTRACTS.

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

Sec. 28.

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


353G.15 INDIVIDUAL RETIREMENT ACCOUNT TRANSFER.

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

Sec. 29.

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


353G.16 EXEMPTION FROM PROCESS.

The provisions of section 356.401 apply to the new text beginvoluntary statewide volunteer
firefighter
new text endretirement plan.

Sec. 30.

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


Subd. 8.

Interest and salary assumptions.

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

(1) select and ultimate interest rate assumption

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

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

(2) single rate interest rate assumption

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

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

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

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

(1) single rate future salary increase assumption

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

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

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

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

The ultimate future salary increase assumption is:

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

(3) service-related ultimate future salary increase assumption

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 31. new text beginEFFECTIVE DATE.
new text end

new text begin Unless otherwise specified, this article is effective July 1, 2015.
new text end

ARTICLE 9

VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION WORKING
GROUP RECOMMENDATIONS

Section 1.

Minnesota Statutes 2014, section 69.051, subdivision 1a, is amended to read:


Subd. 1a.

Financial statement.

(a) The board of each volunteer firefighters relief
association, as defined in section 424A.001, subdivision 4, that is not required to file a
financial report and audit under subdivision 1 must prepare a detailed statement of the
financial affairs for the preceding fiscal year of the relief association's special and general
funds in the style and form prescribed by the state auditor. The detailed statement must
show:

(1) the sources and amounts of all money received;

(2) all disbursements, accounts payable and accounts receivable;

(3) the amount of money remaining in the treasury;

(4) total assets, including a listing of all investments;

(5) the accrued liabilities; and

(6) all other items necessary to show accurately the revenues and expenditures and
financial position of the relief association.

(b) The detailed financial statement new text beginof the special and general funds new text endrequired under
paragraph (a) must be certified by a certified public accountant or by the state auditordeleted text begin. In
addition to certifying the financial condition of the special and general funds of the relief
association, the accountant or auditor conducting the examination shall give an opinion
as to the condition of the special and general funds of the relief association, and shall
comment upon any exceptions to the report
deleted text endnew text begin in accordance with agreed-upon procedures
and forms prescribed by the state auditor
new text end. The accountant must have at least five years of
public accounting, auditing, or similar experience, and must not be an active, inactive, or
retired member of the relief association or the fire department.

(c) The detailed new text beginfinancial new text endstatement required under paragraph (a) must be
countersigned by:

(1) the municipal clerk or clerk-treasurer of the municipality; or

(2) where applicable, by the municipal clerk or clerk-treasurer of the largest
municipality in population which contracts with the independent nonprofit firefighting
corporation if the relief association is a subsidiary of an independent nonprofit firefighting
corporation and by the secretary of the independent nonprofit firefighting corporation; or

(3) by the chief financial official of the county in which the volunteer firefighter
relief association is located or primarily located if the relief association is associated with
a fire department that is not located in or associated with an organized municipality.

(d) The volunteer firefighters' relief association board must file the detailed new text beginfinancial
new text endstatement required under paragraph (a) in the relief association office for public inspection
and present it to the governing body of the municipality within 45 days after the close of
the fiscal year, and must submit a copy of the new text begincertified new text enddetailed new text beginfinancial new text endstatement to the
state auditor within 90 days of the close of the fiscal year.

new text begin (e) A certified public accountant or auditor who performs the agreed-upon
procedures under paragraph (b) is subject to the reporting requirements of section 6.67.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015, and applies to financial
statements prepared for calendar year 2015 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2014, section 69.80, is amended to read:


69.80 AUTHORIZED ADMINISTRATIVE EXPENSES.

(a) Notwithstanding any provision of law to the contrary, the payment of the
following necessary, reasonable and direct expenses of maintaining, protecting and
administering the special fund, when provided for in the bylaws of the association and
approved by the board of trustees, constitutes authorized administrative expenses of a
volunteer firefighters' relief association organized under any law of this state or the
Bloomington Fire Department Relief Association:

(1) office expense, including, but not limited to, rent, utilities, equipment, supplies,
postage, periodical subscriptions, furniture, fixtures, and salaries of administrative
personnel;

(2) salaries of the officers of the association, or their designees, and salaries of the
members of the board of trustees of the association if the salary amounts are approved by
the governing body of the entity that is responsible for meeting any minimum obligation
under section 424A.092 or 424A.093, or Laws 2013, chapter 111, article 5, sections 31 to
42, and the itemized expenses of relief association officers and board members that are
incurred as a result of fulfilling their responsibilities as administrators of the special fund;

(3) tuition, registration fees, organizational dues, and other authorized expenses
of the officers or members of the board of trustees incurred in attending educational
conferences, seminars, or classes relating to the administration of the relief association;

(4) auditdeleted text begin,deleted text end new text beginand audit-related services, accounting and accounting-related services, and
new text endactuarial, medical, legal, and investment and performance evaluation expenses;

(5) filing and application fees payable by the relief association to federal or other
governmental entities;

(6) reimbursement to the officers and members of the board of trustees, or their
designees, for reasonable and necessary expenses actually paid and incurred in the
performance of their duties as officers or members of the board; and

(7) premiums on fiduciary liability insurance and official bonds for the officers,
members of the board of trustees, and employees of the relief association.

(b) Any other expenses of the relief association must be paid from the general fund
of the association, if one exists. If a relief association has only one fund, that fund is the
special fund for purposes of this section. If a relief association has a special fund and
a general fund, and any expense of the relief association that is directly related to the
purposes for which both funds were established, the payment of that expense must be
apportioned between the two funds on the basis of the benefits derived by each fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2014, section 424A.001, is amended by adding a
subdivision to read:


new text begin Subd. 12. new text end

new text begin Membership start date. new text end

new text begin Membership in a volunteer firefighters relief
association begins upon the date of hire by a municipality, a joint powers board, or an
independent nonprofit firefighting corporation with which the relief association is directly
associated, unless otherwise specified in the relief association bylaws.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016.
new text end

Sec. 4.

Minnesota Statutes 2014, section 424A.002, subdivision 1, is amended to read:


Subdivision 1.

Authorization.

A municipal fire department or an independent
nonprofit firefighting corporation, with approval by the applicable municipality or
municipalities, may establish a new volunteer firefighters relief association or may retain
an existing volunteer firefighters relief association.new text begin A municipal fire department or an
independent nonprofit firefighting corporation may be associated with only one volunteer
firefighters relief association at one time.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2014, section 424A.016, subdivision 4, is amended to read:


Subd. 4.

Individual accounts.

(a) An individual account must be established for
each firefighter who is a member of the relief association.

(b) To each individual active member account must be credited an equal share of:

(1) any amounts of fire state aid new text beginand police and firefighter retirement supplemental
state aid
new text endreceived by the relief association;

(2) any amounts of municipal contributions to the relief association raised from
levies on real estate or from other available municipal revenue sources exclusive of fire
state aid; and

(3) any amounts equal to the share of the assets of the special fund to the credit of:

(i) any former member who terminated active service with the fire department to
which the relief association is associated before meeting the minimum service requirement
provided for in subdivision 2, paragraph (b), and has not returned to active service with
the fire department for a period no shorter than five years; or

(ii) any retired member who retired before obtaining a full nonforfeitable interest in
the amounts credited to the individual member account under subdivision 2, paragraph
(b), and any applicable provision of the bylaws of the relief association. In addition, any
investment return on the assets of the special fund must be credited in proportion to the
share of the assets of the special fund to the credit of each individual active member
account. Administrative expenses of the relief association payable from the special
fund may be deducted from individual accounts in a manner specified in the bylaws of
the relief association.

(c) If the bylaws so permit and as the bylaws define, the relief association may credit
any investment return on the assets of the special fund to the accounts of inactive members.

(d) Amounts to be credited to individual accounts must be allocated uniformly
for all years of active service and allocations must be made for all years of service,
except for caps on service credit if so provided in the bylaws of the relief association.
Amounts forfeited under paragraph (b), clause (3), before a resumption of active service
and membership under section 424A.01, subdivision 6, remain forfeited and may not be
reinstated upon the resumption of active service and membership. The allocation method
may utilize monthly proration for fractional years of service, as the bylaws or articles of
incorporation of the relief association so provide. The bylaws or articles of incorporation
may define a "month," but the definition must require a calendar month to have at least 16
days of active service. If the bylaws or articles of incorporation do not define a "month," a
"month" is a completed calendar month of active service measured from the member's
date of entry to the same date in the subsequent month.

(e) At the time of retirement under subdivision 2 and any applicable provision of the
bylaws of the relief association, a retiring member is entitled to that portion of the assets
of the special fund to the credit of the member in the individual member account which is
nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief
association based on the number of years of service to the credit of the retiring member.

(f) Annually, the secretary of the relief association shall certify the individual
account allocations to the state auditor at the same time that the annual financial statement
or financial report and audit of the relief association, whichever applies, is due under
section 69.051.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2014, section 424A.02, subdivision 3, is amended to read:


Subd. 3.

Flexible service pension maximums.

(a) Annually on or before August
1 as part of the certification of the financial requirements and minimum municipal
obligation determined under section 424A.092, subdivision 4, or 424A.093, subdivision 5,
as applicable, the secretary or some other official of the relief association designated in the
bylaws of each defined benefit relief association shall calculate and certify to the governing
body of the applicable municipality the average amount of available financing per active
covered firefighter for the most recent three-year period. The amount of available financing
includes any amounts of fire state aid new text beginand police and firefighter retirement supplemental
state aid
new text endreceived or receivable by the relief association, any amounts of municipal
contributions to the relief association raised from levies on real estate or from other
available revenue sources exclusive of fire state aid, and one-tenth of the amount of assets in
excess of the accrued liabilities of the relief association calculated under section 424A.092,
subdivision 2
; 424A.093, subdivisions 2 and 4; or 424A.094, subdivision 2, if any.

(b) The maximum service pension which the defined benefit relief association has
authority to provide for in its bylaws for payment to a member retiring after the calculation
date when the minimum age and service requirements specified in subdivision 1 are met
must be determined using the table in paragraph (c) or (d), whichever applies.

(c) For a defined benefit relief association where the governing bylaws provide for
a monthly service pension to a retiring member, the maximum monthly service pension
amount per month for each year of service credited that may be provided for in the bylaws
is the greater of the service pension amount provided for in the bylaws on the date of the
calculation of the average amount of the available financing per active covered firefighter
or the maximum service pension figure corresponding to the average amount of available
financing per active covered firefighter:

Minimum Average Amount of Available
Financing per Firefighter
Maximum Service Pension Amount
Payable per Month for Each
Year of Service
$ ...
$ .25
41
.50
81
1.00
122
1.50
162
2.00
203
2.50
243
3.00
284
3.50
324
4.00
365
4.50
405
5.00
486
6.00
567
7.00
648
8.00
729
9.00
810
10.00
891
11.00
972
12.00
1053
13.00
1134
14.00
1215
15.00
1296
16.00
1377
17.00
1458
18.00
1539
19.00
1620
20.00
1701
21.00
1782
22.00
1823
22.50
1863
23.00
1944
24.00
2025
25.00
2106
26.00
2187
27.00
2268
28.00
2349
29.00
2430
30.00
2511
31.00
2592
32.00
2673
33.00
2754
34.00
2834
35.00
2916
36.00
2997
37.00
3078
38.00
3159
39.00
3240
40.00
3321
41.00
3402
42.00
3483
43.00
3564
44.00
3645
45.00
3726
46.00
3807
47.00
3888
48.00
3969
49.00
4050
50.00
4131
51.00
4212
52.00
4293
53.00
4374
54.00
4455
55.00
4536
56.00
4617
57.00
4698
58.00
4779
59.00
4860
60.00
4941
61.00
5022
62.00
5103
63.00
5184
64.00
5265
65.00
5346
66.00
5427
67.00
5508
68.00
5589
69.00
5670
70.00
5751
71.00
5832
72.00
5913
73.00
5994
74.00
6075
75.00
6156
76.00
6237
77.00
6318
78.00
6399
79.00
6480
80.00
6561
81.00
6642
82.00
6723
83.00
6804
84.00
6885
85.00
6966
86.00
7047
87.00
7128
88.00
7209
89.00
7290
90.00
7371
91.00
7452
92.00
7533
93.00
7614
94.00
7695
95.00
7776
96.00
7857
97.00
7938
98.00
8019
99.00
8100
100.00
any amount in excess of
8100
100.00

(d) For a defined benefit relief association in which the governing bylaws provide
for a lump-sum service pension to a retiring member, the maximum lump-sum service
pension amount for each year of service credited that may be provided for in the bylaws is
the greater of the service pension amount provided for in the bylaws on the date of the
calculation of the average amount of the available financing per active covered firefighter
or the maximum service pension figure corresponding to the average amount of available
financing per active covered firefighter for the applicable specified period:

Minimum Average Amount of Available
Financing per Firefighter
Maximum Lump-Sum Service
Pension Amount Payable for
Each Year of Service
$ ...
$ 10
11
20
16
30
23
40
27
50
32
60
43
80
54
100
65
120
77
140
86
160
97
180
108
200
131
240
151
280
173
320
194
360
216
400
239
440
259
480
281
520
302
560
324
600
347
640
367
680
389
720
410
760
432
800
486
900
540
1000
594
1100
648
1200
702
1300
756
1400
810
1500
864
1600
918
1700
972
1800
1026
1900
1080
2000
1134
2100
1188
2200
1242
2300
1296
2400
1350
2500
1404
2600
1458
2700
1512
2800
1566
2900
1620
3000
1672
3100
1726
3200
1753
3250
1780
3300
1820
3375
1834
3400
1888
3500
1942
3600
1996
3700
2023
3750
2050
3800
2104
3900
2158
4000
2212
4100
2265
4200
2319
4300
2373
4400
2427
4500
2481
4600
2535
4700
2589
4800
2643
4900
2697
5000
2751
5100
2805
5200
2859
5300
2913
5400
2967
5500
3021
5600
3075
5700
3129
5800
3183
5900
3237
6000
3291
6100
3345
6200
3399
6300
3453
6400
3507
6500
3561
6600
3615
6700
3669
6800
3723
6900
3777
7000
3831
7100
3885
7200
3939
7300
3993
7400
4047
7500
4101
7600
4155
7700
4209
7800
4263
7900
4317
8000
4371
8100
4425
8200
4479
8300
4533
8400
4587
8500
4641
8600
4695
8700
4749
8800
4803
8900
4857
9000
4911
9100
4965
9200
5019
9300
5073
9400
5127
9500
5181
9600
5235
9700
5289
9800
5343
9900
5397
10,000
any amount in excess of
5397
10,000

(e) For a defined benefit relief association in which the governing bylaws provide
for a monthly benefit service pension as an alternative form of service pension payment
to a lump-sum service pension, the maximum service pension amount for each pension
payment type must be determined using the applicable table contained in this subdivision.

(f) If a defined benefit relief association establishes a service pension in compliance
with the applicable maximum contained in paragraph (c) or (d) and the minimum average
amount of available financing per active covered firefighter is subsequently reduced
because of a reduction in fire state aid or because of an increase in the number of active
firefighters, the relief association may continue to provide the prior service pension
amount specified in its bylaws, but may not increase the service pension amount until
the minimum average amount of available financing per firefighter under the table in
paragraph (c) or (d), whichever applies, permits.

(g) No defined benefit relief association is authorized to provide a service pension in
an amount greater than the largest applicable flexible service pension maximum amount
even if the amount of available financing per firefighter is greater than the financing
amount associated with the largest applicable flexible service pension maximum.

(h) The method of calculating service pensions must be applied uniformly for all
years of active service. Credit must be given for all years of active service except for caps
on service credit if so provided in the bylaws of the relief association.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2014, section 424A.02, subdivision 3a, is amended to read:


Subd. 3a.

Penalty for paying pension greater than applicable maximum.

(a)
If a defined benefit relief association pays a service pension greater than the maximum
service pension associated with the applicable average amount of available financing per
active covered firefighter under the table in subdivision 3, paragraph (c) or (d), whichever
applies, the maximum service pension under subdivision 3, paragraph (f), or the applicable
maximum service pension amount specified in subdivision 3, paragraph (g), whichever is
less, the state auditor shall:

(1) disqualify the municipality or the nonprofit firefighting corporation associated
with the relief association from receiving fire state aid by making the appropriate
notification to the municipality and the commissioner of revenue, with the disqualification
applicable for the next apportionment and payment of fire state aid; and

(2) order the treasurer of the applicable relief association to recover the amount of
the overpaid service pension or pensions from any retired firefighter who received an
overpayment.

(b) Fire state aid amounts from disqualified municipalities for the period of
disqualifications under paragraph (a), clause (1), must be credited to the amount of
fire insurance premium tax proceeds available for the next subsequent fire state aid
apportionment.

(c) The amount of any overpaid service pension recovered under paragraph (a),
clause (2), must be credited to the amount of fire insurance premium tax proceeds
available for the next subsequent fire state aid apportionment.

(d) The determination of the state auditor that a relief association has paid a service
pension greater than the applicable maximum must be made on the basis of the information
filed by the relief association and the municipality with the state auditor under sections
69.011, subdivision 2, and 69.051, subdivision 1 or 1a, whichever applies, and any other
relevant information that comes to the attention of the state auditor. The determination
of the state auditor is final. An aggrieved municipality, relief association, or person may
appeal the determination under section 480A.06.

new text begin (e) The state auditor may certify, upon learning that a relief association overpaid
a service pension based on an error in the maximum service pension calculation, the
municipality or nonprofit firefighting corporation associated with the relief association
for fire state aid if (1) there is evidence that the error occurred in good faith, and (2) the
relief association has initiated recovery of any overpayment amount. Notwithstanding
paragraph (c), all overpayments recovered under this paragraph must be credited to the
relief association's special fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2014, section 424A.02, subdivision 9a, is amended to read:


Subd. 9a.

Postretirement increases.

Notwithstanding any provision of general or
special law to the contrary, a defined benefit relief association paying a monthly service
pension may provide a postretirement increase to retired members and ancillary benefit
recipients of the relief association if (1) the relief association adopts an appropriate
bylaw amendment; and (2) the bylaw amendment is approved by the municipality
pursuant to subdivision 10 and section 424A.093, subdivision 6. The postretirement
increase is applicable only to retired members and ancillary benefit recipients receiving a
new text beginmonthly new text endservice pension or new text beginmonthly new text endancillary benefit as of the effective date of the bylaw
amendment. The authority to provide a postretirement increase to retired members and
ancillary benefit recipients of a relief association contained in this subdivision supersedes
any prior special law authorization relating to the provision of postretirement increases.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2014, section 424A.05, subdivision 2, is amended to read:


Subd. 2.

Special fund assets and revenues.

The special fund must be credited
with all fire state aid deleted text beginmoneysdeleted text endnew text begin and police and firefighter retirement supplemental state
aid
new text end received under sections 69.011 to 69.051new text begin and 423A.022new text end, all taxes levied by or other
revenues received from the municipality under sections 424A.091 to 424A.096 or any
applicable special law requiring municipal support for the relief association, any deleted text beginmoneys
deleted text endnew text beginfundsnew text end or property donated, given, granted or devised by any person which is specified for
use for the support of the special fund and any interest or investment return earned upon
the assets of the special fund. The treasurer of the relief association is the custodian of
the assets of the special fund and must be the recipient on behalf of the special fund of
all revenues payable to the special fund. The treasurer shall maintain adequate records
documenting any transaction involving the assets or the revenues of the special fund.
These records and the bylaws of the relief association are public and must be open for
inspection by any member of the relief association, any officer or employee of the state or
of the municipality, or any member of the public, at reasonable times and places.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2014, section 424A.05, subdivision 3, is amended to read:


Subd. 3.

Authorized disbursements from special fund.

new text begin(a) new text endDisbursements from
the special fund may not be made for any purpose other than one of the following:

(1) for the payment of service pensions to retired members of the relief association if
authorized and paid under law and the bylaws governing the relief association;

(2) for the purchase of an annuity for the applicable person under section 424A.015,
subdivision 3, for the transfer of service pension or benefit amounts to the applicable
person's individual retirement account under section 424A.015, subdivision 4, or to the
applicable person's account in the Minnesota deferred compensation plan under section
424A.015, subdivision 5;

(3) for the payment of temporary or permanent disability benefits to disabled
members of the relief association if authorized and paid under law and specified in amount
in the bylaws governing the relief association;

(4) for the payment of survivor benefits or for the payment of a death benefit to the
estate of the deceased active or deferred firefighter, if authorized and paid under law and
specified in amount in the bylaws governing the relief association;

(5) for the payment of the fees, dues and assessments to the Minnesota State Fire
Department Association and to the Minnesota State Fire Chiefs Association in order to
entitle relief association members to membership in and the benefits of these associations
or organizations;

(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit
Association, or an insurance company licensed by the state of Minnesota offering casualty
insurance, in order to entitle relief association members to membership in and the benefits
of the association or organization; and

(7) for the payment of administrative expenses of the relief association as authorized
under section 69.80.

new text begin (b) Checks or authorizations for electronic fund transfers for disbursements
authorized by this section must be signed by the relief association treasurer and at least one
other elected trustee who has been designated by the board of trustees to sign the checks or
authorizations. A relief association may make disbursements authorized by this subdivision
by electronic funds transfers only if the specific method of payment and internal control
policies and procedures regarding the method are approved by the board of trustees.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2014, section 424A.092, subdivision 3, is amended to read:


Subd. 3.

Financial requirements of relief association; minimum obligation of
municipality.

(a) During the month of July, the officers of the relief association shall
determine the overall funding balance of the special fund for the current calendar year,
the financial requirements of the special fund for the following calendar year and the
minimum obligation of the municipality with respect to the special fund for the following
calendar year in accordance with the requirements of this subdivision.

(b) The overall funding balance of the special fund for the current calendar year must
be determined in the following manner:

(1) The total accrued liability of the special fund for all active and deferred members
of the relief association as of December 31 of the current year must be calculated under
subdivisions 2 and 2a, if applicable.

(2) The total present assets of the special fund projected to December 31 of the
current year, including receipts by and disbursements from the special fund anticipated to
occur on or before December 31, must be calculated. To the extent possible, for those
assets for which a market value is readily ascertainable, the current market value as of the
date of the calculation for those assets must be utilized in making this calculation. For any
asset for which no market value is readily ascertainable, the cost value or the book value,
whichever is applicable, must be utilized in making this calculation.

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

(c) The financial requirements of the special fund for the following calendar year
must be determined in the following manner:

(1) The total accrued liability of the special fund for all active and deferred members
of the relief association as of December 31 of the calendar year next following the current
calendar year must be calculated under subdivisions 2 and 2a, if applicable.

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

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

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

(5) If the special fund has a deficit from full funding, the financial requirements of
the special fund for the following calendar year are the financial requirements of the
special fund calculated as though the special fund were fully funded under clause (4) plus
an amount equal to one-tenth of the original amount of the deficit from full funding of the
special fund as determined under clause (2) resulting either from an increase in the amount
of the service pension occurring in the last ten years or from a net annual investment loss
occurring during the last ten years until each increase in the deficit from full funding is
fully retired. The annual amortization contribution under this clause may not exceed the
amount of the deficit from full funding.

(6) If the special fund has a surplus over full funding, the financial requirements of
the special fund for the following calendar year are the financial requirements of the special
fund calculated as though the special fund were fully funded under clause (4) reduced by an
amount equal to one-tenth of the amount of the surplus over full funding of the special fund.

(d) The minimum obligation of the municipality with respect to the special fund is
the financial requirements of the special fund reduced by the amount of any fire state aid
new text beginand police and firefighter retirement supplemental state aid new text endpayable under sections 69.011
to 69.051 new text beginand 423A.022 new text endreasonably anticipated to be received by the municipality for
transmittal to the special fund during the following calendar year, an amount of interest on
the assets of the special fund projected to the beginning of the following calendar year
calculated at the rate of five percent per annum, and the amount of any contributions to
the special fund required by the relief association bylaws from the active members of the
relief association reasonably anticipated to be received during the following calendar year.
A reasonable amount of anticipated fire state aid is an amount that does not exceed the fire
state aid actually received in the prior year multiplied by the factor 1.035.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2014, section 424A.092, subdivision 6, is amended to read:


Subd. 6.

Municipal ratification for plan amendments.

If the special fund of the
relief association does not have a surplus over full funding under subdivision 3, paragraph
(c), clause (5), and if the municipality is required to provide financial support to the special
fund of the relief association under this section, the adoption of or any amendment to the
articles of incorporation or bylaws of a relief association which increases or otherwise
affects the retirement coverage provided by or the service pensions or retirement benefits
payable from the special fund of any relief association to which this section applies is not
effective until it is ratified by the governing body of the municipality served by the fire
department to which the relief association is directly associated or by the independent
nonprofit firefighting corporation, as applicable, and the officers of a relief association
shall not seek municipal ratification prior to preparing and certifying an estimate of
the expected increase in the accrued liability and annual accruing liability of the relief
association attributable to the amendment. If the special fund of the relief association
has a surplus over full funding under subdivision 3, paragraph (c), clause (5), and if the
municipality is not required to provide financial support to the special fund of the relief
association under this section, the relief association may adopt or amend its articles of
incorporation or bylaws which increase or otherwise affect the retirement coverage
provided by or the service pensions or retirement benefits payable from the special fund
of the relief association which are effective without municipal ratification so long as this
does not cause the amount of the resulting increase in the accrued liability of the special
fund of the relief association to exceed 90 percent of the amount of the surplus over full
funding reported in the prior year and this does not result in the financial requirements
of the special fund of the relief association exceeding the expected amount of the future
fire state aid new text beginand police and firefighter retirement supplemental state aid new text endto be received
by the relief association as determined by the board of trustees following the preparation
of an estimate of the expected increase in the accrued liability and annual accruing
liability of the relief association attributable to the change. If a relief association adopts or
amends its articles of incorporation or bylaws without municipal ratification under this
subdivision, and, subsequent to the amendment or adoption, the financial requirements
of the special fund of the relief association under this section are such so as to require
financial support from the municipality, the provision which was implemented without
municipal ratification is no longer effective without municipal ratification and any service
pensions or retirement benefits payable after that date may be paid only in accordance with
the articles of incorporation or bylaws as amended or adopted with municipal ratification.

Sec. 13.

Minnesota Statutes 2014, section 424A.093, subdivision 5, is amended to read:


Subd. 5.

Minimum municipal obligation.

(a) The officers of the relief association
shall determine the minimum obligation of the municipality with respect to the special
fund of the relief association for the following calendar year on or before August 1 of each
year in accordance with the requirements of this subdivision.

(b) The minimum obligation of the municipality with respect to the special fund is
an amount equal to the financial requirements of the special fund of the relief association
determined under subdivision 4, reduced by the estimated amount of any fire state
aid new text beginand police and firefighter retirement supplemental state aid new text endpayable under sections
69.011 to 69.051 new text beginand 423A.022 new text endreasonably anticipated to be received by the municipality
for transmittal to the special fund of the relief association during the following year
and the amount of any anticipated contributions to the special fund required by the
relief association bylaws from the active members of the relief association reasonably
anticipated to be received during the following calendar year. A reasonable amount of
anticipated fire state aid is an amount that does not exceed the fire state aid actually
received in the prior year multiplied by the factor 1.035.

(c) The officers of the relief association shall certify the financial requirements of the
special fund of the relief association and the minimum obligation of the municipality with
respect to the special fund of the relief association as determined under subdivision 4 and
this subdivision by August 1 of each year. The certification must be made to the entity that
is responsible for satisfying the minimum obligation with respect to the special fund of the
relief association. If the responsible entity is a joint powers entity, the certification must be
made in the manner specified in the joint powers agreement, or if the joint powers agreement
is silent on this point, the certification must be made to the chair of the joint powers board.

(d) The financial requirements of the relief association and the minimum municipal
obligation must be included in the financial report or financial statement under section
69.051.

(e) The municipality shall provide for at least the minimum obligation of the
municipality with respect to the special fund of the relief association by tax levy or from
any other source of public revenue. The municipality may levy taxes for the payment of the
minimum municipal obligation without any limitation as to rate or amount and irrespective
of any limitations imposed by other provisions of law or charter upon the rate or amount
of taxation until the balance of the special fund or any fund of the relief association has
attained a specified level. In addition, any taxes levied under this section must not cause
the amount or rate of any other taxes levied in that year or to be levied in a subsequent year
by the municipality which are subject to a limitation as to rate or amount to be reduced.

(f) If the municipality does not include the full amount of the minimum municipal
obligation in its levy for any year, the officers of the relief association shall certify that
amount to the county auditor, who shall spread a levy in the amount of the minimum
municipal obligation on the taxable property of the municipality.

(g) If the state auditor determines that a municipal contribution actually made in a
plan year was insufficient under section 424A.091, subdivision 3, paragraph (c), clause
(5), the state auditor may request from the relief association or from the city a copy of
the certifications under this subdivision. The relief association or the city, whichever
applies, must provide the certifications within 14 days of the date of the request from
the state auditor.

Sec. 14.

Minnesota Statutes 2014, section 424A.093, subdivision 6, is amended to read:


Subd. 6.

Municipal ratification for plan amendments.

If the special fund of the
relief association does not have a surplus over full funding under subdivision 4, and
if the municipality is required to provide financial support to the special fund of the
relief association under this section, the adoption of or any amendment to the articles of
incorporation or bylaws of a relief association which increases or otherwise affects the
retirement coverage provided by or the service pensions or retirement benefits payable from
the special fund of any relief association to which this section applies is not effective until it
is ratified by the governing body of the municipality served by the fire department to which
the relief association is directly associated or by the independent nonprofit firefighting
corporation, as applicable. If the special fund of the relief association has a surplus
over full funding under subdivision 4, and if the municipality is not required to provide
financial support to the special fund of the relief association under this section, the relief
association may adopt or amend its articles of incorporation or bylaws which increase or
otherwise affect the retirement coverage provided by or the service pensions or retirement
benefits payable from the special fund of the relief association which are effective without
municipal ratification so long as this does not cause the amount of the resulting increase in
the accrued liability of the special fund of the relief association to exceed 90 percent of
the amount of the surplus over full funding reported in the prior year and this does not
result in the financial requirements of the special fund of the relief association exceeding
the expected amount of the future fire state aid new text beginand police and firefighter retirement
supplemental state aid
new text endto be received by the relief association as determined by the
board of trustees following the preparation of an updated actuarial valuation including
the proposed change or an estimate of the expected actuarial impact of the proposed
change prepared by the actuary of the relief association. If a relief association adopts or
amends its articles of incorporation or bylaws without municipal ratification pursuant to
this subdivision, and, subsequent to the amendment or adoption, the financial requirements
of the special fund of the relief association under this section are such so as to require
financial support from the municipality, the provision which was implemented without
municipal ratification is no longer effective without municipal ratification and any service
pensions or retirement benefits payable after that date may be paid only in accordance with
the articles of incorporation or bylaws as amended or adopted with municipal ratification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 10

PARTICULAR VOLUNTEER FIREFIGHTER RELIEF
ASSOCIATION CHANGES

Section 1. new text beginROSEVILLE VOLUNTEER FIREFIGHTERS RELIEF
ASSOCIATION; GOVERNANCE AND ADMINISTRATION.
new text end

new text begin Subdivision 1. new text end

new text begin Retiree board of trustees representation. new text end

new text begin (a) Notwithstanding
any provision of Minnesota Statutes, section 424A.04, subdivision 1, to the contrary
the membership of the board of trustees of the Roseville Volunteer Firefighters Relief
Association (RVFRA) is as provided in paragraph (b), with the additional membership of
the chief of the fire department, one elected Roseville municipal official, and one elected
or appointed Roseville municipal official appointed by the Roseville City Council if:
new text end

new text begin (1) all service pensions and survivor benefits have not been annuitized as provided
under Minnesota Statutes, section 424A.015, subdivision 3; and
new text end

new text begin (2) the RVFRA is administered by a governing board.
new text end

new text begin (b)(1) Beginning the day following the effective date of this section, the RVFRA
board of trustees shall consist of three active Roseville firefighters elected from the
membership of the RVFRA and three retired members of the RVFRA elected from the
membership of the relief association.
new text end

new text begin (2) Beginning on the January 1 next following the date on which the number of active
Roseville firefighters who are members of the RVFRA totals 25 or less, the RVFRA board of
trustees shall consist of two active firefighters elected from the membership of the RVFRA,
and four retired members of the RVFRA elected from the membership of the RVFRA.
new text end

new text begin (3) Beginning on the January 1 next following the date on which the number of
active Roseville firefighters who are members of the RVFRA totals ten or less, the RVFRA
board of trustees shall consist of one active firefighter elected from the membership of
the RVFRA, and five retired members of the RVFRA elected from the membership of the
RVFRA.
new text end

new text begin (4) Beginning on the January 1 next following the date on which there are no active
Roseville firefighters who are members of the RVFRA, the RVFRA board of trustees shall
consist of six retired members of the RVFRA elected from the membership of the RVFRA.
new text end

new text begin Subd. 2. new text end

new text begin Disposition of remaining assets when obligations are paid. new text end

new text begin Upon the
death of the last benefit recipient and the last potential surviving spouse of the last benefit
recipient, the remaining assets of the RVFRA or the former RVFRA cancel to the city
treasury of the city of Roseville.
new text end

new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end

new text begin This section is effective the day after
the city council of Roseville and its chief clerical officer timely complete their compliance
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 2. new text beginCENTENNIAL VOLUNTEER FIREFIGHTERS RELIEF
ASSOCIATION; LINO LAKES FIREFIGHTER TRANSFERS.
new text end

new text begin (a) Notwithstanding any provisions of Minnesota Statutes, chapters 424A and 424B,
to the contrary, if between May 1, 2015, and December 31, 2017, a Centennial Fire District
firefighter elects to become an emergency on-call firefighter employed by a city or nonprofit
firefighting corporation adjoining or within the service area of the Centennial Fire District
as it existed on March 1, 2015, the firefighter may elect to transfer past retirement coverage
for prior firefighting service with the Centennial Fire District as provided in paragraph (b)
and to have prospective firefighting service treated as a continuation of past firefighting
service for vesting and benefit computation purposes by the volunteer firefighter relief
association of the applicable city or nonprofit firefighting corporation if the bylaws of that
relief association so permit or by the voluntary statewide volunteer firefighter retirement
plan if that plan provides retirement coverage to the applicable fire department.
new text end

new text begin (b) If a change in fire department service described in paragraph (a) is made in a
timely fashion, upon notification by the fire chief of the fire department of the municipality
or nonprofit firefighting corporation described in paragraph (a) to the secretary of the
applicable volunteer firefighter relief association or to the executive director of the Public
Employees Retirement Association, good time service credit, accrued liability associated
with the good time service credit, a proportional share of relief association assets on
an institution-to-institution basis, and a proportional share of any net accounts payable
or receivable must be transferred from the Centennial Volunteer Firefighters Relief
Association to the applicable account in the voluntary statewide volunteer firefighter
retirement plan or to the applicable volunteer firefighter relief association retirement
plan. The transferring good time service credit must be the years and months of credit
indicated in the firefighter's records in the Centennial Volunteer Firefighters Relief
Association on the date of transfer. The transferred accrued liability must be the liability
for the transferred good time service credit at the service pension level under Minnesota
Statutes, section 424A.092 or 424A.093, whichever applies, or under Minnesota Statutes,
section 353G.11, subdivision 1, whatever is applicable to the fire department successively
employing the firefighter. The transferred assets amount must be that portion of the market
value of the assets of the Centennial Volunteer Firefighters Relief Association as of the
December 31 preceding the transfer date determined by expressing the total length of good
time service credit multiplied by the applicable multiple of the applicable liability table
factor in Minnesota Statutes, section 424A.092, subdivision 2, of all active and deferred
members of the Centennial Volunteer Firefighters Relief Association, adjusted for any
deferred member deferral period interest, and applying that percentage to the asset market
value. If there are any accounts payable or accounts receivable as of the December 31
preceding the transfer date, the same percentage as applicable to the asset transfer must be
applied to the net accounts payable/receivable amount, with the result deducted from or
added to the ultimate transfer amount. Any dispute about these transfer amounts must
be referred for resolution by the volunteer firefighter relief association to the Office of
Administrative Hearings for resolution under Minnesota Statutes, chapter 14.
new text end

new text begin (c) The transfer dates under this section are January 1, 2016, January 1, 2017, or
January 1, 2018.
new text end

new text begin (d) The asset transfer under paragraph (b) must be made in cash unless the secretary
of the successor of the volunteer firefighter relief association or the executive director of
the State Board of Investment, whichever applies, determines that the transfer may be
made on an investment security basis, and if so determined, must be in the investment
security portfolio mix specified by the secretary of the successor of the volunteer firefighter
relief association or the executive director of the State Board of Investment.
new text end

new text begin (e) The transfer of good time service credit and accrued liability constitutes a
forfeiture of any claim by the transferring firefighter to any service pension or ancillary
benefit payment from the Centennial Volunteer Firefighters Relief Association as of the
transfer date and must be so reflected in any financial reporting of the Centennial Volunteer
Firefighters Relief Association as of the December 31 preceding the transfer date.
new text end

new text begin (f) With respect to any transferred firefighter under this section, the successor
volunteer firefighter relief association or the account of the voluntary statewide volunteer
firefighter retirement plan applicable to the successor fire department is the successor in
interest to the Centennial Volunteer Firefighters Relief Association and has and may assert
any applicable defense that the Centennial Volunteer Firefighters Relief Association could
have asserted if the transfer did not occur unless the act or acts constituting the cause of
action were not undertaken by the Centennial Volunteer Firefighters Relief Association in
good faith and in compliance with applicable state law.
new text end

new text begin EFFECTIVE DATE; LOCAL APPROVAL REQUIREMENT. new text end

new text begin This section is
effective the day after the latest date on which the governing bodies and the chief clerical
officers of the cities of Centerville, Circle Pines, and Lino Lakes timely complete their
compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

ARTICLE 11

SMALL GROUP RETIREMENT CHANGES

Section 1.

Minnesota Statutes 2014, section 352.01, subdivision 2a, is amended to read:


Subd. 2a.

Included employees.

(a) "State employee" includes:

(1) employees of the Minnesota Historical Society;

(2) employees of the State Horticultural Society;

(3) employees of the Minnesota Crop Improvement Association;

(4) employees of the adjutant general whose salaries are paid from federal funds and
who are not covered by any federal civilian employees retirement system;

(5) employees of the Minnesota State Colleges and Universities who are employed
under the university or college activities program;

(6) currently contributing employees covered by the system who are temporarily
employed by the legislature during a legislative session or any currently contributing
employee employed for any special service as defined in subdivision 2b, clause deleted text begin(8)deleted text endnew text begin (6)new text end;

(7) employees of the legislature who are appointed without a limit on the duration
of their employment deleted text beginand persons employed or designated by the legislature or by a
legislative committee or commission or other competent authority to conduct a special
inquiry, investigation, examination, or installation
deleted text end;

(8) trainees who are employed on a full-time established training program
performing the duties of the classified position for which they will be eligible to receive
immediate appointment at the completion of the training period;

(9) employees of the Minnesota Safety Council;

(10) any employees who are on authorized leave of absence from the Transit
Operating Division of the former Metropolitan Transit Commission and who are employed
by the labor organization which is the exclusive bargaining agent representing employees
of the Transit Operating Division;

(11) employees of the Metropolitan Council, Metropolitan Parks and Open Space
Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito
Control Commission unless excluded under subdivision 2b or are covered by another
public pension fund or plan under section 473.415, subdivision 3;

(12) judges of the Tax Court;

(13) personnel who were employed on June 30, 1992, by the University of
Minnesota in the management, operation, or maintenance of its heating plant facilities,
whose employment transfers to an employer assuming operation of the heating plant
facilities, so long as the person is employed at the University of Minnesota heating plant
by that employer or by its successor organization;

(14) personnel who are employed as seasonal employees in the classified or
unclassified service;

(15) persons who are employed by the Department of Commerce as a peace officer
in the Commerce Fraud Bureau under section 45.0135 who have attained the mandatory
retirement age specified in section 43A.34, subdivision 4;

(16) employees of the University of Minnesota unless excluded under subdivision
2b, clause (3);

(17) employees of the Middle Management Association whose employment began
after July 1, 2007, and to whom section 352.029 does not apply;

(18) employees of the Minnesota Government Engineers Council to whom section
352.029 does not apply;

(19) employees of the Minnesota Sports Facilities Authority;

(20) employees of the Minnesota Association of Professional Employees;

(21) employees of the Minnesota State Retirement System;

(22) employees of the State Agricultural Society;

(23) employees of the Gillette Children's Hospital Board who were employed in the
state unclassified service at the former Gillette Children's Hospital on March 28, 1974; and

(24) if approved for coverage by the Board of Directors of Conservation Corps
Minnesota, employees of Conservation Corps Minnesota so employed on June 30, 2003.

(b) Employees specified in paragraph (a), clause (13), are included employees under
paragraph (a) if employer and employee contributions are made in a timely manner in the
amounts required by section 352.04. Employee contributions must be deducted from
salary. Employer contributions are the sole obligation of the employer assuming operation
of the University of Minnesota heating plant facilities or any successor organizations to
that employer.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 352D.02, subdivision 1, is amended to read:


Subdivision 1.

Coverage.

(a) Employees enumerated in paragraph (c), clauses (2),
(3), (4), (6) to (14), and (16) to (18), if they are in the unclassified service of the state or
Metropolitan Council and are eligible for coverage under the general state employees
retirement plan under chapter 352, are participants in the unclassified program under this
chapter unless the employee gives notice to the executive director of the Minnesota State
Retirement System within one year following the commencement of employment in the
unclassified service that the employee desires coverage under the general state employees
retirement plan. For the purposes of this chapter, an employee who does not file notice
with the executive director is deemed to have exercised the option to participate in the
unclassified program.

(b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified
program under this chapter unless the person was eligible to elect different coverage under
section 3A.07 and elected retirement coverage by the applicable alternative retirement
plan. Persons referenced in paragraph (c), clause (15), are participants in the unclassified
program under this chapter for judicial employment in excess of the service credit limit in
section 490.121, subdivision 22.

(c) Enumerated employees and referenced persons are:

(1) the governor, the lieutenant governor, the secretary of state, the state auditor,
and the attorney general;

(2) an employee in the Office of the Governor, Lieutenant Governor, Secretary
of State, State Auditor, Attorney General;

(3) an employee of the State Board of Investment;

(4) the head of a department, division, or agency created by statute in the unclassified
service, an acting department head subsequently appointed to the position, or an employee
enumerated in section 15A.0815 or 15A.083, subdivision 4;

(5) a member of the legislature;

(6) deleted text begina full-timedeleted text end new text beginan new text endunclassified employee of the legislature or a commission or agency
of the legislature who is appointed without a limit on the duration of the employment or a
temporary legislative employee having shares in the supplemental retirement fund as a
result of former employment covered by this chapter, whether or not eligible for coverage
under the Minnesota State Retirement System;

(7) a person who is employed in a position established under section 43A.08,
subdivision 1
, clause (3), or in a position authorized under a statute creating or establishing
a department or agency of the state, which is at the deputy or assistant head of department
or agency or director level;

(8) the regional administrator, or executive director of the Metropolitan Council,
general counsel, division directors, operations managers, and other positions as designated
by the council, all of which may not exceed 27 positions at the council and the chair;

(9) the commissioner, deputy commissioner, and not to exceed nine positions
of the Minnesota Office of Higher Education in the unclassified service, as designated
by the Minnesota Office of Higher Education before January 1, 1992, or subsequently
redesignated with the approval of the board of directors of the Minnesota State Retirement
System, unless the person has elected coverage by the individual retirement account
plan under chapter 354B;

(10) the clerk of the appellate courts appointed under article VI, section 2, of the
Constitution of the state of Minnesota, the state court administrator and judicial district
administrators;

(11) the chief executive officers of correctional facilities operated by the Department
of Corrections and of hospitals and nursing homes operated by the Department of Human
Services;

(12) an employee whose principal employment is at the state ceremonial house;

(13) an employee of the Agricultural Utilization Research Institute;

(14) an employee of the State Lottery who is covered by the managerial plan
established under section 43A.18, subdivision 3;

(15) a judge who has exceeded the service credit limit in section 490.121,
subdivision 22
;

(16) an employee of Enterprise Minnesota, Inc.;

(17) a person employed by the Minnesota State Colleges and Universities as faculty
or in an eligible unclassified administrative position as defined in section 354B.20,
subdivision 6, who was employed by the former state university or the former community
college system before May 1, 1995, and elected unclassified program coverage prior to
May 1, 1995; and

(18) a person employed by the Minnesota State Colleges and Universities who
was employed in state service before July 1, 1995, who subsequently is employed in an
eligible unclassified administrative position as defined in section 354B.20, subdivision
6
, and who elects coverage by the unclassified program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any legislative employee who had that status as of that date.
new text end

Sec. 3.

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; deleted text beginand
deleted text end

new text begin (9) employees of the Minnesota River Area Agency on Aging who were first
employed by a Regional Development Commission before January 1, 2016, and who are
not excluded employees under subdivision 2b; and
new text end

deleted text begin (9)deleted text endnew text begin (10)new text end 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 MERF division of the general employees
retirement plan, public employees include employees who were members of the former
Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as
members of the MERF division of the association.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

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


Subd. 2b.

Excluded employees.

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

(1) persons whose annual salary from one governmental subdivision never exceeds
an amount, stipulated in writing in advance, of $5,100 if the person is not a school district
employee or $3,800 if the person is a school year employee. If annual compensation from
one governmental subdivision to an employee exceeds the stipulated amount in a calendar
year or a school year, whichever applies, after being stipulated in advance not to exceed
the applicable amount, the stipulation is no longer valid and contributions must be made
on behalf of the employee under section 353.27, subdivision 12, from the first month in
which the employee received salary exceeding $425 in a month;

(2) public officers who are elected to a governing body, city mayors, or persons who
are appointed to fill a vacancy in an elective office of a governing body, whose term of office
commences on or after July 1, 2002, for the service to be rendered in that elective position;

(3) election judges and persons employed solely to administer elections;

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

(5) except as otherwise specified in subdivision 12a, employees who are employed
solely in a temporary position as defined under subdivision 12a, and employees who
resign from a nontemporary position and accept a temporary position within 30 days of
that resignation in the same governmental subdivision;

(6) employees who are employed by reason of work emergency caused by fire,
flood, storm, or similar disaster, but if the person becomes a probationary or provisional
employee within the same pay period, other than on a temporary basis, the person is a
"public employee" retroactively to the beginning of the pay period;

(7) employees who by virtue of their employment in one governmental subdivision
are required by law to be a member of and to contribute to any of the plans or funds
administered by the Minnesota State Retirement System, the Teachers Retirement
Association, or the St. Paul Teachers Retirement Fund Association, but this exclusion
must not be construed to prevent a person from being a member of and contributing to
the Public Employees Retirement Association and also belonging to and contributing to
another public pension plan or fund for other service occurring during the same period
of time, and a person who meets the definition of "public employee" in subdivision 2 by
virtue of other service occurring during the same period of time becomes a member of the
association unless contributions are made to another public retirement plan on the salary
based on the other service or to the Teachers Retirement Association by a teacher as
defined in section 354.05, subdivision 2;

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

(9) persons who are:

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

(ii) employed as resident physicians, medical interns, pharmacist residents, or
pharmacist interns and are serving in a degree or residency program in a public hospital
or in a public clinic; or

(iii) students who are serving for a period not to exceed five years in an internship
or a residency program that is sponsored by a governmental subdivision, including an
accredited educational institution;

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

(11) except for employees of Hennepin County or employees of Hennepin
Healthcare System, Inc., foreign citizens who are employed by a governmental subdivision
under a work permit or under an H-1b visa initially issued or extended for a combined
period of less than three years of employment but upon extension of the employment of
the visa beyond the three-year period, the foreign citizen must be reported for membership
beginning on the first of the month following the extension if the monthly earnings
threshold as provided under subdivision 2a is met;

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

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

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

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

(16) electrical workers, plumbers, carpenters, and associated trades personnel who
are employed by Independent School District No. 625, St. Paul, or the city of St. Paul,
who have retirement coverage under a collective bargaining agreement by the Electrical
Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan,
or the pension plan applicable to Carpenters Local 322 who were either first employed
after May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under
Laws 2000, chapter 461, article 7, section 5;

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

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

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

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

(21) independent contractors and the employees of independent contractors;

(22) reemployed annuitants of the association during the course of that reemployment;

(23) persons appointed to serve on a board or commission of a governmental
subdivision or an instrumentality thereof; deleted text beginand
deleted text end

(24) persons employed as full-time fixed-route bus drivers by the St. Cloud
Metropolitan Transit Commission who are members of the International Brotherhood
of Teamsters Local 638 and who are, by virtue of that employment, members of the
International Brotherhood of Teamsters Central States pension plandeleted text begin.deleted text endnew text begin; and
new text end

new text begin (25) electricians or pipefitters employed by the Minneapolis Park and Recreation
Board, with coverage under a collective bargaining agreement by the IBEW local 292,
or pipefitters local 539 pension plan, who were first employed before May 2, 2015, and
who elected to be excluded under section 5.
new text end

(b) Any person performing the duties of a public officer in a position defined in
subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
employee of an independent contractor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5. new text beginPUBLIC PENSION COVERAGE EXCLUSION FOR CERTAIN
TRADES PERSONNEL.
new text end

new text begin An electrician or pipefitter who is employed by the Minneapolis Park and Recreation
Board on the effective date of this section and who has pension coverage under a collective
bargaining agreement by the IBEW local 292, or pipefitters local 539, may elect to be
excluded from pension coverage by the Public Employees Retirement Association. The
exclusion election must be made in writing on a form prescribed by the executive director
of the Public Employees Retirement Association and must be filed with the executive
director. The exclusion election is irrevocable. Authority to make the coverage exclusion
expires on January 1, 2016.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6. new text beginMSRS-GENERAL; EXCLUDED SEASONAL REVENUE
DEPARTMENT EMPLOYMENT SERVICE CREDIT PURCHASE.
new text end

new text begin (a) An eligible person described in paragraph (b) is eligible to make a service credit
purchase described in paragraph (c) for the period of service indicated in paragraph (d)
if made by the expiration date specified in paragraph (e).
new text end

new text begin (b) An eligible person is a person who:
new text end

new text begin (1) was born on May 7, 1963;
new text end

new text begin (2) was a seasonal employee of the Department of Revenue in fiscal years 1988,
1989, 1990, 1991, 1992, 1993, and 1994 and was excluded from general state employees
retirement plan coverage under Minnesota Statutes 1988, section 352.01, subdivision
2b, clause (20);
new text end

new text begin (3) became a full-time employee of the Department of Revenue on October 12,
1993; and
new text end

new text begin (4) was not eligible to purchase this period of service credit under Laws 1997,
chapter 241, article 8, section 7.
new text end

new text begin (c) The service credit purchase must be made as provided in Minnesota Statutes,
section 356.551, except that, because of delays admitted to by the Minnesota State
Retirement System in providing necessary information to permit an eligible person to
pursue special legislation in a timely fashion during the 2014 legislative session, the
amount payable by an eligible person, if paid before August 1, 2015, is the full actuarial
value amount calculated as if the payment was to be made on June 1, 2014, with the
balance of the liability accruing to the general state employees retirement plan of the
Minnesota State Retirement System.
new text end

new text begin (d) The period of employment available for an allowable service credit purchase
under this section is the period or periods of actual seasonal employment by the Department
of Revenue occurring in fiscal years 1988 to 1994 that was not already credited as allowable
service by a retirement plan listed in Minnesota Statutes, section 356.30, subdivision 3.
new text end

new text begin (e) The service credit purchase must be made before July 1, 2017, or before the
person's retirement date, whichever is earlier.
new text end

new text begin (f) Service credit for the seasonal Department of Revenue employment must be
granted by the general state employees retirement plan upon the receipt by the executive
director of the Minnesota State Retirement System of the purchase payment amount
under paragraph (c).
new text end

new text begin (g) The eligible person shall provide the executive director of the Minnesota State
Retirement System with any relevant information pertaining to this purchase that the
director requests.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7. new text beginPUBLIC EMPLOYEES RETIREMENT ASSOCIATION-GENERAL; ST.
PAUL PUBLIC SCHOOL EMPLOYEES WITH ERRONEOUSLY REPORTED
EMPLOYMENT TERMINATIONS.
new text end

new text begin (a) An eligible person described in paragraph (b) is entitled to purchase allowable
service credit from the general employees retirement plan of the Public Employees
Retirement Association (PERA) for the period specified in paragraph (c) upon making the
prior service credit purchase payment indicated in paragraph (d).
new text end

new text begin (b) An eligible person is a person who:
new text end

new text begin (1) was born on June 18, 1952;
new text end

new text begin (2) was initially employed by Independent School District No. 625, St. Paul, in
1987, in a nonteaching employment position;
new text end

new text begin (3) was initially covered by the general employees retirement plan of PERA;
new text end

new text begin (4) was erroneously reported to PERA by Independent School District No. 625, St.
Paul, as having terminated employment in August 1993;
new text end

new text begin (5) did not have member contributions deducted for the general employees
retirement plan of PERA for the period of August 1, 1993, through January 3, 1997; and
new text end

new text begin (6) had the error discovered in 1998 and received PERA general plan allowable
service credit for the period of July 1, 1994, through January 3, 1997.
new text end

new text begin (c) The period authorized for a purchase of prior allowable service credit is August
1, 1993, through June 30, 1994.
new text end

new text begin (d) To purchase the prior allowable service credit in paragraph (c), the eligible
person shall make the member contributions that would have been deducted from the
person's salary if the eligible person had been included in PERA general plan retirement
coverage during the period of August 1, 1993, through June 30, 1994, without compound
interest because Independent School District No. 625, St. Paul, admitted to failing to
timely and fully inform an eligible person in 1998 of its reporting error to PERA that
caused an allowable service credit loss and agreed additionally to pay the interest charge
on the equivalent member contribution amount.
new text end

new text begin (e) If an eligible person makes the payment specified under paragraph (d),
Independent School District No. 625, St. Paul, shall pay the balance of the full actuarial
value prior service credit payment amount provided for in Minnesota Statutes, section
356.551, within 60 days of the date on which the executive director of PERA certifies that
the eligible person's payment was received by PERA. If Independent School District No.
625, St. Paul, does not make the payment required by this paragraph in a timely manner,
the executive director of PERA shall certify: (1) that payment was not timely; (2) the
amount of the unpaid employer obligation under this paragraph; and (3) interest at a
monthly rate of 0.71 percent from the date on which the eligible person made the payment
under paragraph (d) until the first day of the first month next following the certification to
the commissioner of education, who shall withhold that amount from any state aid payable
to Independent School District No. 625, St. Paul.
new text end

new text begin (f) Upon receipt of the payment under paragraph (d), PERA shall grant allowable
service credit under Minnesota Statutes, section 353.01, subdivision 16, to the eligible
person.
new text end

new text begin (g) This section expires on December 31, 2016.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8. new text beginPERA-GENERAL; SERVICE CREDIT PURCHASE FOR OMITTED
CONTRIBUTION PERIOD; NASHVILLE TOWNSHIP EMPLOYEE.
new text end

new text begin (a) Notwithstanding any provision to the contrary, an eligible person described
in paragraph (b) is entitled to purchase from the general employees retirement plan of
the Public Employees Retirement Association (PERA) allowable service credit under
Minnesota Statutes, section 353.01, subdivision 16, for the period of omitted member
deductions in paragraph (c).
new text end

new text begin (b) An eligible person is a person who:
new text end

new text begin (1) was born on August 2, 1938;
new text end

new text begin (2) was first employed by Nashville Township on March 12, 1994;
new text end

new text begin (3) terminated employment on April 7, 2015;
new text end

new text begin (4) was eligible for retirement coverage by and membership in the general
employees retirement plan of PERA on July 1, 1998; and
new text end

new text begin (5) had omitted deductions paid for allowable service for Nashville Township back
to July 1, 2010.
new text end

new text begin (c) The period of prior service credit available for purchase is the period from July 1,
1998, to June 30, 2010, during which no member contributions for the general employees
retirement plan of PERA were deducted from the eligible person's salary by Nashville
Township, and which could not be corrected through the PERA omitted contribution
provision due to the three-year time limit in the provision.
new text end

new text begin (d) The purchase payment amount payable by the eligible person is the employee
contributions that should have been made, plus 8.5 percent interest compounded annually
from the date each deduction should have occurred, until the date paid to PERA. The
purchase payment amount payable by Nashville Township is the balance of the full
actuarial value prior service credit purchase payment amount determined under Minnesota
Statutes, section 356.551, as of the first day of the month next following the receipt of the
eligible person's payment that is remaining after deducting the purchase payment amount
payable by the eligible person.
new text end

new text begin (e) The payment amount due from Nashville Township under paragraph (d) must
be made on or before the 15th of the month next following the receipt of the eligible
person's payment under paragraph (d). If the Nashville Township purchase payment
amount is not paid in a timely fashion, the amount due accrues compound monthly interest
at the rate of 0.71 percent per month from the first day of the month next following the
receipt of the eligible person's payment until the Nashville Township purchase payment
amount is received by PERA. If Nashville Township fails to pay its portion of the purchase
payment amount to PERA 90 days after the receipt of the eligible person's payment, the
executive director shall collect the unpaid amount under Minnesota Statutes, section
353.28, subdivision 6, paragraph (a).
new text end

new text begin (f) The eligible person must provide the executive director of PERA with any
relevant requested information pertaining to this service credit purchase.
new text end

new text begin (g) Authority to make a service credit purchase under this section expires on June
30, 2015.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 12

MSRS, PERA, AND TRA ADMINISTRATIVE PROVISIONS

Section 1.

Minnesota Statutes 2014, section 352.91, subdivision 3e, is amended to read:


Subd. 3e.

Minnesota Specialty Health System-Cambridge.

(a) "Covered
correctional service" means service by a state employee in one of the employment positions
with the Minnesota Specialty Health System-Cambridge specified in paragraph (b) if at
least 75 percent of the employee's working time is spent in direct contact with patients
who are in the Minnesota Specialty Health System-Cambridge and if service in such a
position is certified to the executive director by the commissioner of human services.

(b) The employment positions are:

(1) behavior analyst 1;

(2) behavior analyst 2;

(3) behavior analyst 3;

(4) group supervisor;

(5) group supervisor assistant;

(6) human services support specialist;

(7) residential program lead;

(8) psychologist 2;

(9) recreation program assistant;

(10) recreation therapist senior;

(11) registered nurse senior;

(12) skills development specialist;

(13) social worker senior;

(14) social worker specialist; and

(15) speech pathology specialist.

(c) A Department of Human Services employee who was employed at the Minnesota
Specialty Health System-Cambridge immediately preceding the 2014 conversion to the
community-based homes and was in covered correctional service at the time of the
transition shall continue to be covered by the correctional employees retirement plan while
employed new text beginbynew text end and without a break in service with the Department of Human Services in
the direct care and treatment deleted text beginservices administrationdeleted text endnew text begin of patientsnew text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from August 1, 2014.
new text end

Sec. 2.

Minnesota Statutes 2014, section 352B.10, subdivision 5, is amended to read:


Subd. 5.

Optional annuity.

A disabilitant may elect, in lieu of spousal survivorship
coverage under section 352B.11, subdivision 2b, the normal disability benefit or an
optional annuity as provided in section 352B.08, subdivision 3. The choice of an optional
annuity must be made in writing, on a form prescribed by the executive director, and deleted text beginmust
deleted text endnew text beginmay new text endbe made before the commencement of the payment of the disability benefitdeleted text begin, ordeleted text endnew text begin. If the
disabilitant did not select an optional annuity at the time of application, the disabilitant
may select an optional annuity under this section
new text end within 90 days before reaching age 55
or new text beginwithin 90 days new text endbefore reaching the five-year anniversary of the effective date of the
disability benefit, whichever is later. The optional annuity is effective on the date on
which the disability benefit begins to accrue, or the month following the attainment of age
55 or following the five-year anniversary of the effective date of the disability benefit,
whichever is later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2014, section 352B.105, is amended to read:


352B.105 TERMINATION OF DISABILITY BENEFITS.

new text begin Subdivision 1. new text end

new text begin Termination. new text end

Disability benefits payable under section 352B.10
must terminate on the deleted text begintransferdeleted text end datedeleted text begin,deleted text end new text beginon new text endwhich new text beginthe disabilitant transfers status as a
disabilitant to status as a retirement annuitant.
new text end

new text begin Subd. 2. new text end

new text begin Pre-July 1, 2015, disabilitants. new text end

new text beginThe transfer date for a person whose
disability benefits began to accrue before July 1, 2015, and who is still disabled
new text endis the end
of the month in which the disabilitant becomes 65 years old or the five-year anniversary
of the effective date of the disability benefit, whichever is later. deleted text beginIf the disabilitant is still
disabled on the transfer date, the disabilitant must be deemed to be a retired member and,
if the disabilitant had chosen an optional annuity under section 352B.10, subdivision 5,
must receive an annuity under the terms of the optional annuity previously chosen. If the
disabilitant had not chosen an optional annuity under section 352B.10, subdivision 5, the
disabilitant may then choose to receive either a normal retirement annuity computed under
section 352B.08, subdivision 2, or an optional annuity as provided in section 352B.08,
subdivision 3
. An optional annuity must be chosen within 90 days of attaining the transfer
date. If an optional annuity is chosen, the optional annuity accrues on the first of the
month next following the transfer date.
deleted text end

new text begin Subd. 3. new text end

new text begin Post-June 30, 2015, disabilitants. new text end

new text begin The transfer date for a person whose
disability benefits began to accrue after June 30, 2015, and who is still disabled is the end
of the month in which the disabilitant becomes 55 years old or the five-year anniversary of
the effective date of the disability benefit, whichever is later.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2014, section 353.01, subdivision 10, is amended to read:


Subd. 10.

Salary.

(a) Subject to the limitations of section 356.611, "salary" means:

(1) the wages or periodic compensation payable to a public employee by the
employing governmental subdivision before:

(i) employee retirement deductions that are designated as picked-up contributions
under section 356.62;

(ii) any employee-elected deductions for deferred compensation, supplemental
retirement plans, or other voluntary salary reduction programs that would have otherwise
been available as a cash payment to the employee; and

(iii) employee deductions for contributions to a supplemental plan or to a
governmental trust established under section 356.24, subdivision 1, clause (7), to save for
postretirement health care expenses, unless otherwise excluded under paragraph (b);

(2) for a public employee who is covered by a supplemental retirement plan under
section 356.24, subdivision 1, clause (8), (9), (10), or (12), the employer contributions
to the applicable supplemental retirement plan when an agreement between the parties
establishes that the contributions will either result in a mandatory reduction of employees'
wages through payroll withholdings, or be made in lieu of an amount that would otherwise
be paid as wages;

(3) a payment from a public employer through a grievance proceeding, settlement,
or court order that is attached to a specific earnings period in which the employee's regular
salary was not earned or paid to the member due to a suspension or a period of involuntary
termination that is not a wrongful discharge under section 356.50; provided the amount is
not less than the equivalent of the average of the hourly base salary rate in effect during
the last six months of allowable service prior to the suspension or period of involuntary
termination, plus any applicable increases awarded during the period that would have been
paid under a collective bargaining agreement or personnel policy but for the suspension
or involuntary termination, multiplied by the average number of regular hours for which
the employee was compensated during the six months of allowable service prior to the
suspension or period of involuntary termination, but not to exceed the compensation that
the public employee would have earned if regularly employed during the applicable period;

(4) deleted text beginthe amount paid todeleted text end new text beginfor new text enda member who is absent from employment deleted text beginby reason
of personal, parental, or military
deleted text end new text begindue to an authorized new text endleave of absencenew text begin, other than an
authorized medical leave of absence, the compensation paid during the leave
new text end if equivalent
to the hourly base salary rate in effect during the six months of allowable service, or
portions thereof, prior to the leave, multiplied by the average number of regular hours
for which the employee was compensated during the six months of allowable service
prior to the applicable leave of absence;

(5) deleted text beginthe amount paid todeleted text end new text beginfor new text enda member who is absent from employment by reason of an
authorized medical leave of absencenew text begin, the compensation paid during the leavenew text end if specified
in advance to be at least one-half new text beginof, new text endbut no more than equal tonew text begin,new text end the earnings the member
received, on which contributions were reported and allowable service credited during the
six months immediately preceding the medical leave of absence; and

(6) for a public employee who receives performance or merit bonus payment under
a written compensation plan, policy, or collective bargaining agreement in addition
to regular salary or in lieu of regular salary increases, the compensation paid to the
employee for attaining or exceeding performance goals, duties, or measures during a
specified period of employment.

(b) Salary does not mean:

(1) fees paid to district court reporters;

(2) unused annual leave, vacation, or sick leave payments, in the form of lump-sum
or periodic payments;

(3) for the donor, payment to another person of the value of hours donated under a
benevolent vacation, personal, or sick leave donation program;

(4) any form of severance or retirement incentive payments;

(5) an allowance payment or per diem payments for or reimbursement of expenses;

(6) lump-sum settlements not attached to a specific earnings period;

(7) workers' compensation payments or disability insurance payments, including
payments from employer self-insurance arrangements;

(8) employer-paid amounts used by an employee toward the cost of insurance
coverage, flexible spending accounts, cafeteria plans, health care expense accounts, day
care expenses, or any payments in lieu of any employer-paid group insurance coverage,
including the difference between single and family rates that may be paid to a member with
single coverage and certain amounts determined by the executive director to be ineligible;

(9) employer-paid fringe benefits, including, but not limited to:

(i) employer-paid premiums or supplemental contributions for employees for all
types of insurance;

(ii) membership dues or fees for the use of fitness or recreational facilities;

(iii) incentive payments or cash awards relating to a wellness program;

(iv) the value of any nonmonetary benefits;

(v) any form of payment made in lieu of an employer-paid fringe benefit;

(vi) an employer-paid amount made to a deferred compensation or tax-sheltered
annuity program; and

(vii) any amount paid by the employer as a supplement to salary, either as a
lump-sum amount or a fixed or matching amount paid on a recurring basis, that is not
available to the employee as cash;

(10) the amount equal to that which the employing governmental subdivision would
otherwise pay toward single or family insurance coverage for a covered employee when,
through a contract or agreement with some but not all employees, the employer:

(i) discontinues, or for new hires does not provide, payment toward the cost of the
employee's selected insurance coverages under a group plan offered by the employer;

(ii) makes the employee solely responsible for all contributions toward the cost of
the employee's selected insurance coverages under a group plan offered by the employer,
including any amount the employer makes toward other employees' selected insurance
coverages under a group plan offered by the employer; and

(iii) provides increased salary rates for employees who do not have any
employer-paid group insurance coverages;

(11) except as provided in section 353.86 or 353.87, compensation of any kind
paid to volunteer ambulance service personnel or volunteer firefighters, as defined in
subdivision 35 or 36;

(12) the amount of compensation that exceeds the limitation provided in section
356.611;

(13) amounts paid by a federal or state grant for which the grant specifically
prohibits grant proceeds from being used to make pension plan contributions, unless the
contributions to the plan are made from sources other than the federal or state grant; and

(14) bonus pay that is not performance or merit pay under paragraph (a), clause (6).

(c) Amounts, other than those provided under paragraph (a), clause (3), provided to
an employee by the employer through a grievance proceeding, a court order, or a legal
settlement are salary only if the settlement or court order is reviewed by the executive
director and the amounts are determined by the executive director to be consistent with
paragraph (a) and prior determinations.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2014, section 353.01, subdivision 11a, is amended to read:


Subd. 11a.

Termination of public service.

(a) "Termination of public service"
occurs deleted text begin(1)deleted text end whennew text begin:
new text end

new text begin (1)new text end a member resigns or is dismissed from public service by the employing
governmental subdivision and the employee does not, within 30 days of the date the
employment relationship ended, return to an employment position deleted text beginin the samedeleted text end new text beginwith
a
new text endgovernmental subdivision; or

(2) deleted text beginwhendeleted text end the employer-employee relationship is severed due to the expiration of a
layoff under subdivision 12 or 12c.

(b) The termination of public service must be recorded in the association records
upon receipt of an appropriate notice from the governmental subdivision.

(c) A termination of public service does not occur ifdeleted text begin,deleted text endnew text begin:
new text end

new text begin (1)new text end prior to termination of service, the member has an agreement, verbal or written,
to deleted text beginreturndeleted text end new text beginprovide service new text endto a governmental subdivision as an employeedeleted text begin,deleted text end new text beginor to the same
governmental subdivision as an
new text endindependent contractordeleted text begin,deleted text end or employee of an independent
contractordeleted text begin.deleted text endnew text begin; or
new text end

new text begin (2) within 30 days after the date the employment relationship ended, the member
provides service to the same governmental subdivision as an independent contractor or
employee of an independent contractor.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2014, section 353.01, subdivision 16, is amended to read:


Subd. 16.

Allowable service; limits and computation.

(a) "Allowable service"
means:

(1) service during years of actual membership in the course of which employee
deductions were withheld from salary and contributions were made at the applicable rates
under section 353.27, 353.65, or 353E.03;

(2) periods of service covered by payments in lieu of salary deductions under
sections 353.27, deleted text beginsubdivisiondeleted text end new text beginsubdivisions new text end12new text begin and 12anew text end, and 353.35;

(3) service in years during which the public employee was not a member but for
which the member later elected, while a member, to obtain credit by making payments to
the fund as permitted by any law then in effect;

(4) a period of authorized leave of absence deleted text beginwith paydeleted text end new text beginduring which the employee
receives pay as specified in subdivision 10, paragraph (a), clause (4) or (5),
new text endfrom which
deductions for employee contributions are made, deposited, and credited to the fund;

(5) a period of authorized deleted text beginpersonal, parental, or medicaldeleted text end leave of absence without
pay, deleted text beginincluding a leave of absence covered under the federal Family Medical Leave Act,
that does not exceed one year
deleted text endnew text begin or with pay that is not included in the definition of salary
under subdivision 10, paragraph (a), clause (4) or (5), for which salary deductions are
not authorized
new text end, and for which a member obtained service credit for deleted text begineach month indeleted text end new text beginup
to 12 months of
new text endthe new text beginauthorized new text endleave period by payment under section 353.0161 new text beginor
353.0162,
new text endto the fund made in place of salary deductionsdeleted text begin. An employee must return to
public service and render a minimum of three months of allowable service in order to be
eligible to make payment under section 353.0161 for a subsequent authorized leave of
absence without pay. Upon payment, the employee must be granted allowable service
credit for the purchased period
deleted text end;

(6) a periodic, repetitive leave that is offered to all employees of a governmental
subdivision. The leave program may not exceed 208 hours per annual normal work cycle
as certified to the association by the employer. A participating member obtains service
credit by making employee contributions in an amount or amounts based on the member's
average salary, excluding overtime pay, that would have been paid if the leave had not been
taken. The employer shall pay the employer and additional employer contributions on
behalf of the participating member. The employee and the employer are responsible to pay
interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
from the end of the normal cycle until full payment is made. An employer shall also make
the employer and additional employer contributions, plus 8.5 percent interest, compounded
annually, on behalf of an employee who makes employee contributions but terminates
public service. The employee contributions must be made within one year after the end of
the annual normal working cycle or within 30 days after termination of public service,
whichever is sooner. The executive director shall prescribe the manner and forms to be
used by a governmental subdivision in administering a periodic, repetitive leave. Upon
payment, the member must be granted allowable service credit for the purchased period;

(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
months allowable service per authorized temporary or seasonal layoff in one calendar year.
An employee who has received the maximum service credit allowed for an authorized
temporary or seasonal layoff must return to public service and must obtain a minimum of
three months of allowable service subsequent to the layoff in order to receive allowable
service for a subsequent authorized temporary or seasonal layoff;

(8) a period during which a member is absent from employment by a governmental
subdivision by reason of service in the uniformed services, as defined in United States
Code, title 38, section 4303(13), if the member returns to public service with the same
governmental subdivision upon discharge from service in the uniformed service within the
time frames required under United States Code, title 38, section 4312(e), provided that
the member did not separate from uniformed service with a dishonorable or bad conduct
discharge or under other than honorable conditions. The service must be credited if the
member pays into the fund equivalent employee contributions based upon the contribution
rate or rates in effect at the time that the uniformed service was performed multiplied by
the full and fractional years being purchased and applied to the annual salary rate. The
annual salary rate is the average annual salary during the purchase period that the member
would have received if the member had continued to be employed in covered employment
rather than to provide uniformed service, or, if the determination of that rate is not
reasonably certain, the annual salary rate is the member's average salary rate during the
12-month period of covered employment rendered immediately preceding the period of the
uniformed service. Payment of the member equivalent contributions must be made during
a period that begins with the date on which the individual returns to public employment
and that is three times the length of the military leave period, or within five years of the
date of discharge from the military service, whichever is less. If the determined payment
period is less than one year, the contributions required under this clause to receive service
credit may be made within one year of the discharge date. Payment may not be accepted
following 30 days after termination of public service under subdivision 11a. If the member
equivalent contributions provided for in this clause are not paid in full, the member's
allowable service credit must be prorated by multiplying the full and fractional number
of years of uniformed service eligible for purchase by the ratio obtained by dividing the
total member contributions received by the total member contributions otherwise required
under this clause. The equivalent employer contribution, and, if applicable, the equivalent
additional employer contribution must be paid by the governmental subdivision employing
the member if the member makes the equivalent employee contributions. The employer
payments must be made from funds available to the employing unit, using the employer
and additional employer contribution rate or rates in effect at the time that the uniformed
service was performed, applied to the same annual salary rate or rates used to compute the
equivalent member contribution. The governmental subdivision involved may appropriate
money for those payments. The amount of service credit obtainable under this section may
not exceed five years unless a longer purchase period is required under United States Code,
title 38, section 4312. The employing unit shall pay interest on all equivalent member and
employer contribution amounts payable under this clause. Interest must be computed at a
rate of 8.5 percent compounded annually from the end of each fiscal year of the leave or the
break in service to the end of the month in which the payment is received. Upon payment,
the employee must be granted allowable service credit for the purchased period; or

(9) a period specified under section 353.0162.

deleted text begin (b) For calculating benefits under sections 353.30, 353.31, 353.32, and 353.33 for
state officers and employees displaced by the Community Corrections Act, chapter 401,
and transferred into county service under section 401.04, "allowable service" means the
combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
section 352.01, subdivision 11.
deleted text end

deleted text begin (c)deleted text end new text begin(b) new text endNo member may receive more than 12 months of allowable service credit in a
year either for vesting purposes or for benefit calculation purposes. For an active member
who was an active member of the former Minneapolis Firefighters Relief Association
on December 29, 2011, "allowable service" is the period of service credited by the
Minneapolis Firefighters Relief Association as reflected in the transferred records of the
association up to December 30, 2011, and the period of service credited under paragraph
(a), clause (1), after December 30, 2011. For an active member who was an active member
of the former Minneapolis Police Relief Association on December 29, 2011, "allowable
service" is the period of service credited by the Minneapolis Police Relief Association as
reflected in the transferred records of the association up to December 30, 2011, and the
period of service credited under paragraph (a), clause (1), after December 30, 2011.

(d) MS 2002 [Expired]

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2014, section 353.01, subdivision 28, is amended to read:


Subd. 28.

Retirement.

(a) "Retirement" means the deleted text begincommencement of thedeleted text end payment
of an annuity deleted text beginbased on a date designated by the board of trusteesdeleted text endnew text begin by the associationnew text end. deleted text beginThis
date determines the rights under this chapter which occur either before or after retirement.
deleted text endA right to retirement is subject to termination of public service under subdivision 11a.
A right to retirement requires a complete and continuous separation for 30 days from
employment as a public employee deleted text beginand from the provision of paid services to that employerdeleted text end.

deleted text begin (b) An individual who separates from employment as a public employee and who,
within 30 days of separation, returns to provide service to a governmental subdivision
as an independent contractor or as an employee of an independent contractor, has not
satisfied the separation requirements under paragraph (a).
deleted text end

deleted text begin (c)deleted text end new text begin(b) new text endNotwithstanding the 30-day separation requirement under paragraph (a), a
member of a defined benefit plan under this chapter, who also participates in the public
employees defined contribution plan under chapter 353D for other public service, may be
paid, if eligible, a retirement annuity from the defined benefit plan while participating in the
defined contribution plan. A retirement annuity is also payable from a defined benefit plan
under this chapter to an eligible member who terminates public service and who, within
30 days of separation, takes office as an elected official of a governmental subdivision.

deleted text begin (d)deleted text end new text begin(c) new text endElected officials included in association membership under subdivisions 2a
and 2d meet the 30-day separation requirement under this section by resigning from office
before filing for a subsequent term in the same office and by remaining completely and
continuously separated from that office for 30 days prior to the date of the election.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2014, section 353.01, subdivision 36, is amended to read:


Subd. 36.

Volunteer firefighter.

For purposes of this chapter, a person is
considered a "volunteer firefighter" for all service for which the person receives credit
in an association or fund operating under chapter 424Anew text begin or credit in the retirement plan
established under chapter 353G
new text end.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2014, section 353.0161, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Restriction on subsequent purchases. new text end

new text begin To purchase salary credit or
service credit for a subsequent authorized leave of absence period, the member must return
to public service and render a minimum of three months of allowable service credit.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2014, section 353.0162, is amended to read:


353.0162 REDUCED SALARY PERIODS SALARY CREDIT PURCHASE.

(a) A member may purchase additional salary credit for a period specified in this
section.

(b) The applicable period is a period during which the member is receiving a reduced
salary from the employer while the member is:

(1) receiving temporary workers' compensation payments related to the member's
service to the public employer;

(2) on an authorized deleted text beginmedicaldeleted text end leave of absence; or

(3) on an authorized partial paid leave of absence as a result of a budgetary or salary
savings program offered or mandated by a governmental subdivision.

(c) The differential salary amount is the difference between the average monthly
salary received by the member during the period of reduced salary under this section and
the average monthly salary of the member, excluding overtime, on which contributions
to the applicable plan were made during the period of the last six months of covered
employment occurring immediately before the period of reduced salary, applied to the
member's normal employment period, measured in hours or otherwise, as applicable.

(d) To receive eligible salary credit, the member shall pay an amount equal to:

(1) the applicable employee contribution rate under section 353.27, subdivision
2
; 353.65, subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the
differential salary amount;

(2) plus an employer equivalent payment equal to the applicable employer
contribution rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03,
subdivision 2
, as applicable, multiplied by the differential salary amount;

(3) plus, if applicable, an equivalent employer additional amount equal to the
additional employer contribution rate in section 353.27, subdivision 3a, multiplied by the
differential salary amount.

(e) The employer, by appropriate action of its governing body and documented in its
official records, may pay the employer equivalent contributions and, as applicable, the
equivalent employer additional contributions on behalf of the member.

(f) Payment under this section must include interest on the contribution amount
or amounts, whichever applies, at an 8.5 percent annual rate, prorated for applicable
months from the date on which the period of reduced salary specified under this section
terminates to the date on which the payment or payments are received by the executive
director. Payment under this section must be completed within the earlier of 30 days from
termination of public service by the employee under section 353.01, subdivision 11a, or
one year after the termination of the period specified in paragraph (b), as further restricted
under this section.

(g) The period for which additional allowable salary credit may be purchased is
limited to the period during which the person receives temporary workers' compensation
payments or for those business years in which the governmental subdivision offers or
mandates a budget or salary savings program, as certified to the executive director by a
resolution of the governing body of the governmental subdivision. For an authorized
deleted text beginmedicaldeleted text end leave of absence, the period for which allowable salary credit may be purchased
may not exceed 12 deleted text beginconsecutivedeleted text end months of authorized deleted text beginmedicaldeleted text end leave.

(h) To purchase salary credit for a subsequent period of temporary workers'
compensation benefits or subsequent authorized medical leave of absence, the member
must return to public service and render a minimum of three months of allowable service.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2014, section 353.03, subdivision 3, is amended to read:


Subd. 3.

Duties and powers.

(a) The board shall:

(1) elect a president and vice-president;

(2) approve the staffing complement, as recommended by the executive director,
necessary to administer the fund;

(3) adopt bylaws for its own government and for the management of the fund
consistent with the laws of the state and may modify them at pleasure;

(4) adopt, alter, and enforce reasonable rules consistent with the laws of the state and
the terms of the applicable benefit plans for the administration and management of the
fund, for the payment and collection of payments from members and for the payment of
withdrawals and benefits, and that are necessary in order to comply with the applicable
federal Internal Revenue Service and Department of Labor requirements;

(5) pass upon and allow or disallow all applications for membership in the fund and
allow or disallow claims for withdrawals, pensions, or benefits payable from the fund;

new text begin (6) authorize procedures for use of electronic signatures as defined in section
325L.02, paragraph (h), on applications and forms required by the association;
new text end

deleted text begin (6)deleted text end new text begin(7) new text endadopt an appropriate mortality table based on experience of the fund as
recommended by the association actuary and approved under section 356.215, subdivision
18
, with interest set at the rate specified in section 356.215, subdivision 8;

deleted text begin (7)deleted text end new text begin(8) new text endprovide for the payment out of the fund of the cost of administering this
chapter, of all necessary expenses for the administration of the fund and of all claims for
withdrawals, pensions, or benefits allowed;

deleted text begin (8)deleted text end new text begin(9) new text endapprove or disapprove all recommendations and actions of the executive
director made subject to its approval or disapproval by subdivision 3a; and

deleted text begin (9)deleted text end new text begin(10) new text endapprove early retirement and optional annuity factors, subject to review by
the actuary retained by the Legislative Commission on Pensions and Retirement; establish
the schedule for implementation of the approved factors; and notify the Legislative
Commission on Pensions and Retirement of the implementation schedule.

(b) In passing upon all applications and claims, the board may summon, swear, hear,
and examine witnesses and, in the case of claims for disability benefits, may require the
claimant to submit to a medical examination by a physician of the board's choice, at the
expense of the fund, as a condition precedent to the passing on the claim, and, in the
case of all applications and claims, may conduct investigations necessary to determine
their validity and merit.

(c) The board may continue to authorize the sale of life insurance to members under
the insurance program in effect on January 1, 1985, but must not change that program
without the approval of the commissioner of management and budget. The association
shall not receive any financial benefit from the life insurance program beyond the amount
necessary to reimburse the association for costs incurred in administering the program.
The association shall not engage directly or indirectly in any other activity involving the
sale or promotion of goods or services, or both, whether to members or nonmembers.

(d) The board shall establish procedures governing reimbursement of expenses
to board members. These procedures must define the types of activities and expenses
that qualify for reimbursement, must provide that all out-of-state travel be authorized
by the board, and must provide for the independent verification of claims for expense
reimbursement. The procedures must comply with the applicable rules and policies of the
Department of Management and Budget and the Department of Administration.

(e) The board may purchase fiduciary liability insurance and official bonds for the
officers and members of the board of trustees and employees of the association and may
purchase property insurance or may establish a self-insurance risk reserve including, but
not limited to, data processing insurance and "extra-expense" coverage.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2014, section 353.031, subdivision 5, is amended to read:


Subd. 5.

Medical adviser.

The executive director may contract with new text beginan accredited
independent organization specializing in disability determinations or a
new text endlicensed deleted text beginphysicians
or physicians on the staff of the state commissioner of health, as designated by the
commissioner,
deleted text endnew text begin physiciannew text end to be the medical adviser of the association. The medical adviser
shall review all medical reports submitted to the association, including the findings of
an independent medical examination requested under this section, and shall advise the
executive director.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2014, section 353.031, subdivision 10, is amended to read:


Subd. 10.

Restoring forfeited servicenew text begin and salary creditnew text end.

new text begin(a) new text endTo restore forfeited
servicenew text begin and salary creditnew text end, a repayment of a refund must be made within six months after
the effective date of disability benefits or within six months after the date of the filing of
the disability application, whichever is later.

new text begin (b) Except for the salary credit purchase authorized under section 353.0162,
paragraph (b), clause (1),
new text end no purchase of prior service or payment made in lieu of salary
deductions otherwise authorized under section 353.01 new text beginor 353.0162 new text endmay be made after the
occurrence of the disability for which an application is filed under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2014, section 353.27, subdivision 10, is amended to read:


Subd. 10.

Employer exclusion reports.

(a) The head of a department new text beginor a
designated representative
new text endshall annually furnish the executive director with an exclusion
report listing new text beginand certifying new text endonly those employees in potentially PERA general employees
retirement plan-eligible positions who were not reported as members of the general
employees retirement plan and who worked during the school year for school employees
and calendar year for nonschool employees. deleted text beginThe department head must certify the
accuracy and completeness of the exclusion report to the association.
deleted text end The executive
director shall prescribe the manner and forms, including standardized exclusion codes, to
be used by a governmental subdivision in preparing and filing exclusion reports. Also, the
executive director shall check the exclusion report to ascertain whether any omissions
have been made deleted text beginby a department headdeleted text end in the reporting of new public employees for
membership. The executive director may delegate an association employee under section
353.03, subdivision 3a, paragraph (b), clause (5), to conduct a field audit to review the
payroll records of a governmental subdivision.

(b) If an employer fails to comply with the reporting requirements under this
subdivision, the executive director may assess a fine of $25 for each failure if the
association staff has notified the employer of the noncompliance and attempted to obtain
the missing data or form from the employer for a period of more than three months.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2014, section 353.29, subdivision 7, is amended to read:


Subd. 7.

Annuities; accrual.

new text begin(a) new text endExcept as to elected public officials, a retirement
annuity granted under this chapter begins with the first day of the first calendar month
after the date of termination of public service. The annuity must be paid in equal monthly
installments and does not accrue beyond the end of the month in which entitlement to the
annuity has terminated. deleted text beginIf the annuitant dies prior to negotiating the check for the month
in which death occurs, payment must be made to the surviving spouse, or if none, to the
designated beneficiary, or if none, to the estate.
deleted text end

new text begin (b) new text endAn annuity granted to an elective public official accrues on the day following
expiration of public office or expiration of the right to hold that office. The annuity for the
month during which the expiration occurred is prorated accordingly.

new text begin (c)new text end An annuity, once granted, must not be increased, decreased, or revoked except
under this chapter.

new text begin (d)new text end An annuity payment may be made retroactive for up to one year prior to that month
in which a complete application is received by the executive director under subdivision 4.

new text begin (e) If an annuitant dies before negotiating the check for the month in which death
occurs, payment must first be made to the surviving spouse, or if none, then to the
designated beneficiary, or if none, lastly to the estate.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2014, section 353.33, subdivision 6, is amended to read:


Subd. 6.

Continuing eligibility for benefits.

Disability benefits are contingent upon
a disabled person's participation in a vocational deleted text beginrehabilitation evaluationdeleted text end new text beginassessment new text endif the
executive director determines that the disabled person may be able to return to a gainful
occupation. If, after a review by the executive director under section 353.031, subdivision
8
, a member is found to be no longer totally and permanently disabled, payments must
cease the first of the month following the expiration of a 30-day period after the member
receives a certified letter notifying the member that payments will cease.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2014, section 353.33, subdivision 13, is amended to read:


Subd. 13.

Postretirement adjustment eligibility.

new text begin(a) new text endA disability benefit under this
section is eligible for postretirement adjustments under section 356.415.

new text begin (b) When a disability benefit terminates under subdivision 11, the retirement annuity
elected by the individual must include all prior adjustments provided under Minnesota
Statutes 2008, section 11A.18, through January 1, 2009, and thereafter as provided
in section 356.415.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

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
deleted text beginin a position covered by this chapterdeleted text end 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 MERF
division.

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2014, section 353.656, subdivision 1a, is amended to read:


Subd. 1a.

Total and permanent duty disability; computation of benefits.

(a) A
member of the police and fire plan, other than a firefighter covered by section 353.6511, or
a police officer covered by section 353.6512, whose disabling condition is determined
to be a duty disability that is also a permanent and total disability as defined in section
353.01, subdivision 19, is entitled to receive, for life, disability benefits in an amount equal
to 60 percent of the average salary as defined in section 353.01, subdivision 17a, plus an
additional 3.0 percent of that average salary for each year of service in excess of 20 years.

(b) A disability benefit payable under paragraph (a) is subject to eligibility review
under section 353.33, subdivision 6, but the review may be waived if the executive director
receives a written statement from the association's medical advisor that no improvement
can be expected in the member's disabling condition that was the basis for payment of the
benefit under paragraph (a). A member receiving a disability benefit under this subdivision
who is found to no longer be permanently and totally disabled as defined under section
353.01, subdivision 19, but continues to meet the definition for receipt of a duty disability
under section 353.01, subdivision 41, is subject to subdivision 1 upon written notice from
the association's medical advisor that the person is no longer considered permanently and
totally disablednew text begin, and may upon application, elect an optional annuity under subdivision 1bnew text end.

(c) If a member approved for disability benefits under this subdivision dies before
attaining normal retirement age as defined in section 353.01, subdivision 37, paragraph
(b), or within 60 months of the effective date of the disability, whichever is later,
the surviving spouse is entitled to receive a survivor benefit under section 353.657,
subdivision 2, paragraph (a), clause (1), if the death is the direct result of the disabling
condition for which disability benefits were approved, or section 353.657, subdivision
2, paragraph (a), clause (2), if the death is not directly related to the disabling condition
for which benefits were approved under this subdivision.

(d) If the election of an actuarial equivalent optional annuity is not made at the time
the permanent and total disability benefit accrues, an election must be made within 90
days before the member attains normal retirement age as defined under section 353.01,
subdivision 37, paragraph (b), or having collected total and permanent disability benefits
for 60 months, whichever is later. If a member receiving disability benefits who has
dependent children dies, subdivision 6a, paragraph (c), applies.

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2014, section 353.656, subdivision 1b, is amended to read:


Subd. 1b.

Optional annuity election.

(a) A disabled member of the police and fire
fund may elect to receive the normal disability benefit or an actuarial equivalent optional
annuity. If the election of an actuarial equivalent optional annuity is made before the
commencement of payment of the disability benefit, the optional annuity must begin to
accrue on the same date as the disability benefit covering only the deleted text begindisabilitantdeleted text end new text begindisability
benefit recipient
new text endwould have accrued.

(b) If an election of an optional annuity is not made before the commencement of the
disability benefit, the deleted text begindisabilitantdeleted text end new text begindisability benefit recipient new text endmay elect an optional annuity:

(1) within 90 days before normal retirement age;

(2) upon the filing of an application to convert to an early retirement annuity, if
electing to convert to an early retirement annuity before the normal retirement age; deleted text beginor
deleted text end

(3) within 90 days before the expiration of the 60-month period for which a disability
benefit is paid, if the disability benefit is payable because the disabled member did not
have at least 20 years of allowable service at normal retirement agedeleted text begin.deleted text endnew text begin; or
new text end

new text begin (4) upon being determined that the disability benefit recipient continues to be disabled
under subdivision 1, but is no longer totally and permanently disabled under subdivision 1a.
new text end

(c) If a disabled member who has named a joint and survivor optional annuity
beneficiary dies before the disability benefit ceases and is recalculated under subdivision
5a, the beneficiary eligible to receive the joint and survivor annuity may elect to have
the annuity converted at the times designated in paragraph (b), clause (1), (2), or (3),
whichever allows for the earliest payment of a higher joint and survivor annuity option
resulting from recalculation under subdivision 5a, paragraph (e).

(d) A disabled member may name a person other than the spouse as beneficiary
of a joint and survivor annuity only if the spouse of the disabled member permanently
waives surviving spouse coverage on the disability application form prescribed by the
executive director.

(e) If the spouse of the member permanently waives survivor coverage, the
dependent child or children, if any, continue to be eligible for dependent child benefits
under section 353.657, subdivision 3, and the designated optional annuity beneficiary
may draw the monthly benefit.

(f) Any optional annuity under this subdivision, plus dependent child benefits, if
applicable, are subject to the maximum and minimum family benefit amounts specified in
section 353.657, subdivision 3a.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2014, section 353.656, subdivision 2, is amended to read:


Subd. 2.

Benefits paid under workers' compensation law.

(a) deleted text beginIfdeleted text end new text beginWhen the amount
determined under paragraph (b) exceeds the equivalent salary determined under paragraph
(c), the disability benefit amount must be reduced to that amount which, when added to
the workers' compensation benefits, equals the equivalent salary.
new text end

new text begin (b) When new text enda member deleted text beginbecomes disabled and receivesdeleted text end new text beginreceiving new text enda disability benefit as
specified in this section deleted text beginanddeleted text end is also entitled to receive lump sum or periodic benefits under
workers' compensation laws, the single life annuity actuarial equivalent disability benefit
amount and the workers' compensation amount must be added. The computation must
exclude any attorney fees paid by the deleted text begindisabilitantdeleted text end new text begindisability benefit recipient new text endas authorized
under applicable workers' compensation laws. The computation must also exclude
permanent partial disability payments provided under section 176.101, subdivision 2a,
and retraining payments under section 176.102, subdivision 11, if the permanent partial
disability or retraining payments are reported to the executive director in a manner
specified by the executive director.

deleted text begin (b)deleted text end new text begin(c) new text endThe equivalent salary is the amount determined under clause (1) or (2),
whichever is greater:

(1) the salary the disabled member received as of the date of the disability; or

(2) the salary currently payable for the same employment position or substantially
similar positions in the applicable government subdivision.

deleted text begin (c) If the amount determined under paragraph (a) exceeds the equivalent salary
determined under paragraph (b), the disability benefit amount must be reduced to that
amount which, when added to the workers' compensation benefits, equals the equivalent
salary.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2014, section 353.656, subdivision 4, is amended to read:


Subd. 4.

Limitation on disability benefit payments.

(a) No member is entitled to
receive a disability benefit payment when there remains to the member's credit unused
annual leave, sick leave, or any other employer-provided salary continuation plan, or
under any other circumstances when, during the period of disability, there has been no
impairment of the person's salary as a police officer, a firefighter, or a paramedic as defined
in section 353.64, subdivision 10, whichever applies.

(b) If a disabled member resumes a gainful occupation with earnings that, when added
to the deleted text beginnormaldeleted text end new text beginsingle life new text enddisability benefit, and workers' compensation benefit if applicable,
exceed the deleted text begindisabilitantdeleted text end new text begindisability benefit recipient's new text endreemployment earnings limit, the
amount of the disability benefit must be reduced new text beginduring the months of employment and
receipt of workers' compensation benefits, if applicable,
new text endas provided in this paragraph.
The deleted text begindisabilitantdeleted text end new text begindisability benefit recipient's new text endreemployment earnings limit is the greater of:

(1) the new text beginmonthly new text endsalary earned at the date of disability; or

(2) 125 percent of the base new text beginmonthly new text endsalary currently paid by the employing
governmental subdivision for similar positions.

(c) The disability benefit must be reduced by one dollar for each three dollars by
which the total amount of the current new text beginmonthly new text enddisability benefit, any new text beginmonthly new text endworkers'
compensation benefits if applicable, and actual new text beginmonthly new text endearnings exceed the greater
deleted text begindisabilitantdeleted text end new text begindisability benefit recipient's new text endreemployment earnings limit. In no event may
the new text beginmonthly new text enddisability benefit as adjusted under this subdivision exceed the disability
benefit originally allowed.

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2014, section 353.656, subdivision 5a, is amended to read:


Subd. 5a.

Cessation of disability benefit.

(a) The association shall cease the
payment of any disability benefit the first of the month following the reinstatement of a
member to full time or less than full-time service in a position covered by the police
and fire fund.

(b) A disability benefit paid to a disabled member of the police and fire plan, that
was granted under laws in effect after June 30, 2007, terminates at the end of the month in
which the member:

(1) reaches normal retirement age;

(2) if the disability benefit is payable for a 60-month period as determined under
subdivisions 1 and 3, as applicable, the first of the month following the expiration of
the 60-month period; or

(3) if the disabled member so chooses, the end of the month in which the member
has elected to convert to an early retirement annuity under section 353.651, subdivision 4.

(c) If the police and fire plan member continues to be disabled when the disability
benefit terminates under this subdivision, the member is deemed to be retired. The
individual is entitled to receive a normal retirement annuity or an early retirement annuity
under section 353.651, whichever is applicable, as further specified in paragraph (d) or
(e). If the individual did not previously elect an optional annuity under subdivision deleted text begin1a
deleted text endnew text begin1bnew text end, paragraph (a), the individual may elect an optional annuity under subdivision deleted text begin1a
deleted text endnew text begin1bnew text end, paragraph (b).

(d) A member of the police and fire plan who is receiving a disability benefit under
this section may, upon application, elect to receive an early retirement annuity under
section 353.651, subdivision 4, at any time after attaining age 50, but must convert to a
retirement annuity no later than the end of the month in which the disabled member attains
normal retirement age. An early retirement annuity elected under this subdivision must be
calculated on the disabled member's accrued years of service and average salary as defined
in section 353.01, subdivision 17a, and when elected, the member is deemed to be retired.

(e) When an individual's new text begindisability new text endbenefit new text beginterminates under paragraph (b), clause (1)
or (2), and
new text endis recalculated as a retirement annuity deleted text beginunder this sectiondeleted text end, the annuity must be
based on clause (1) or deleted text beginclausedeleted text end (2), whichever provides the greater amount:

(1) the benefit amount at the time of reclassification, including all prior adjustments
provided under Minnesota Statutes 2008, section 11A.18, through January 1, 2009, and
thereafter as provided in section 356.415; or

(2) a benefit amount computed on the member's actual years of accrued allowable
service credit and the law in effect at the time the disability benefit first accrued, plus any
increases that would have applied since that date under Minnesota Statutes 2008, section
11A.18, through January 1, 2009, and thereafter as provided in section 356.415.

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Minnesota Statutes 2014, section 353D.03, subdivision 3, is amended to read:


Subd. 3.

Ambulance service, rescue squad personnel contribution.

new text begin(a) new text endA public
ambulance service deleted text beginor privately operated ambulance service that receives an operating
subsidy from a governmental entity
deleted text end that elects to participate in the plan shall fund benefits
for its qualified personnel who individually elect to participate.

new text begin (b)new text end Personnel who are paid for their services may elect to make member contributions
in an amount not to exceed the service's contribution on their behalf.

new text begin (c)new text end Ambulance service contributions on behalf of salaried employees must be a
fixed percentage of salary.

new text begin (d)new text end An ambulance service making contributions for volunteer or largely
uncompensated personnel, or a municipality or county making contributions on behalf
of rescue squad members who are volunteers or largely uncompensated personnel, may
assign a unit value for each call or each period of alert duty for the purpose of calculating
ambulance service or rescue squad service contributions, as applicable.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2014, section 353E.06, subdivision 5, is amended to read:


Subd. 5.

Disability benefit termination.

new text begin(a) new text endThe disability benefit paid to a disabled
local government correctional employee terminates at the end of the month in which the
employee reaches age deleted text begin65deleted text endnew text begin 55, or the first of the month after the expiration of the 60-month
period from the effective date of the disability benefit, whichever is later
new text end.

new text begin (b)new text end If the disabled local government correctional employee is still disabled when the
employee deleted text beginreachesdeleted text end new text beginhas been collecting the disability benefit for 60 months or has reached
new text endage deleted text begin65deleted text endnew text begin 55, whichever is laternew text end, the employee is deemed to be a retired employee and, if the
employee had elected an optional annuity under subdivision 3, must receive an annuity in
accordance with the terms of the optional annuity previously elected.

new text begin (c)new text end If the employee had not elected an optional annuity under subdivision 3, the
employee may elect either to receive a deleted text beginnormaldeleted text end new text beginsingle life new text endretirement annuity computed
in the manner provided in section 353E.04, subdivision 3, or to receive an optional
annuity as provided in section 353.30, subdivision 3, based on the same length of service
as used in the calculation of the disability benefit. Election of an optional annuity must
be made within 90 days before deleted text beginattaining the age of 65 years, or reaching the five-year
anniversary of the effective date of the disability benefit, whichever is later
deleted text endnew text begin termination of
the disability benefit under paragraph (a)
new text end.

new text begin (d) When an individual's disability benefit terminates under this subdivision and
is recalculated as a retirement annuity, the annuity must include all prior adjustments
provided under Minnesota Statutes 2008, section 11A.18, through January 1, 2009, and
thereafter as provided in section 356.415.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) to (c) are effective for disability benefits that
accrue after June 30, 2015. Paragraph (d) is effective July 1, 2015.
new text end

Sec. 26.

Minnesota Statutes 2014, section 353E.06, subdivision 6, is amended to read:


Subd. 6.

Resumption of employment.

If a disabled employee resumes a gainful
occupation from which earnings are less than new text beginthe monthly new text endsalary received at the date
of disability or the new text beginmonthly new text endsalary currently paid for similar positions, or should the
employee be entitled to receive workers' compensation benefits, the disability benefit
must be continued in an amount that, when added to such earnings new text beginduring the months of
employment,
new text endand workers' compensation benefits, new text beginif applicable, new text enddoes not exceed the
new text beginmonthly new text endsalary received at the date of disability or the new text beginmonthly new text endsalary currently payable
for the same employment position or an employment position substantially similar to the
one the person held as of the date of the disability, whichever is greater.

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2014, section 353F.01, is amended to read:


353F.01 PURPOSE AND INTENT.

The purpose of this chapter is to ensure, to the extent possible, that persons
employed at public medical facilities deleted text beginand other public employing unitsdeleted text end who are privatized
and consequently are excluded from retirement coverage by the Public Employees
Retirement Association will be entitled to receive future retirement benefits under the
general employees retirement plan of the Public Employees Retirement Association
commensurate with the prior contributions made by them or made on their behalf upon the
privatization of the medical facility deleted text beginor other public employing unitdeleted text end.

new text begin EFFECTIVE DATE. new text end

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

Sec. 28.

Minnesota Statutes 2014, section 353F.02, subdivision 3, is amended to read:


Subd. 3.

Effective date of privatization.

"Effective date of privatization" means
the date that the operation of a medical facility deleted text beginor other public employing unitdeleted text end is assumed
by another employer or the date that a medical facility deleted text beginor other public employing unit
deleted text endis purchased by another employer and active membership in the Public Employees
Retirement Association consequently terminates.

new text begin EFFECTIVE DATE. new text end

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

Sec. 29.

Minnesota Statutes 2014, section 353F.02, subdivision 5a, is amended to read:


Subd. 5a.

Privatized former public employer.

"Privatized former public
employer" means a medical facility deleted text beginor other employing unitdeleted text end new text beginthat was new text endformerly included in
the definition of governmental subdivision under section 353.01, subdivision 6, that is
privatized and whose employees are certified for participation under this chapter.

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Minnesota Statutes 2014, section 353F.04, subdivision 2, is amended to read:


Subd. 2.

Exceptions.

The increased augmentation rates specified in subdivision 1
do not apply to a privatized former public employee:

(1) beginning the first of the month in which the privatized former public employee
becomes covered again by a retirement plan enumerated in section 356.30, subdivision 3,
if the employee deleted text begincontinues to be covered anddeleted text end accrues at least six months of credited service
new text beginin any single plan enumerated in section 356.30, subdivision 3, except clause (6)new text end;

new text begin (2) beginning the first of the month in which the privatized former public employee
becomes covered again by the general employees retirement plan of the Public Employees
Retirement Association;
new text end

deleted text begin (2)deleted text end new text begin(3) new text endbeginning the first of the month after a privatized former public employee
terminates service with the successor entity; or

deleted text begin (3)deleted text end new text begin(4) new text endif the person begins receipt of a retirement annuity while employed by the
employer which assumed operations of or purchased the privatized former public employer.

new text begin EFFECTIVE DATE. new text end

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

Sec. 31.

Minnesota Statutes 2014, section 353F.051, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

A privatized former public employee who is totally and
permanently disabled under deleted text beginMinnesota Statutes 1998,deleted text end section 353.01, subdivision 19,
and who had a medically documented preexisting condition of the disability before the
termination of coverage, may apply for a disability benefit.

new text begin EFFECTIVE DATE. new text end

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

Sec. 32.

Minnesota Statutes 2014, section 353F.051, subdivision 2, is amended to read:


Subd. 2.

Calculation of benefits.

A person qualifying under subdivision 1 is
entitled to receive a disability benefit calculated under deleted text beginMinnesota Statutes 1998,deleted text end section
353.33, subdivision 3. The disability benefit must be augmented under deleted text beginMinnesota Statutes
1998,
deleted text end section 353.71, subdivision 2, from the date of termination to the date the disability
benefit begins to accrue.

new text begin EFFECTIVE DATE. new text end

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

Sec. 33.

Minnesota Statutes 2014, section 353F.051, subdivision 3, is amended to read:


Subd. 3.

Applicability of general law.

Except as otherwise provided, deleted text beginMinnesota
Statutes 1998,
deleted text end section 353.33deleted text begin,deleted text end applies to a person who qualifies for disability under
subdivision 1.

new text begin EFFECTIVE DATE. new text end

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

Sec. 34.

Minnesota Statutes 2014, section 353G.08, subdivision 1, is amended to read:


Subdivision 1.

Annual funding requirements.

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

(b) The overall funding balance of each account for the current calendar year must
be determined in the following manner:

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

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

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

(c) The financial requirements of each account for the following calendar year must
be determined in the following manner:

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

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

(3) The amount of deleted text beginanticipated futuredeleted text end administrative expenses of the account must be
calculated by multiplying the new text beginper person new text enddollar amount of the administrative expenses for
the most recent prior calendar year by the deleted text beginfactor of 1.035deleted text endnew text begin number of active and deferred
firefighters reported to PERA on the most recent good time service credit certification
form for each account
new text end.

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 35.

Minnesota Statutes 2014, section 354.445, is amended to read:


354.445 NO ANNUITY REDUCTION.

(a) The annuity reduction provisions of section 354.44, subdivision 5, do not apply
to a person who:

(1) retires from the Minnesota State Colleges and Universities system with at least
ten years of combined service credit in a system under the jurisdiction of the Board of
Trustees of the Minnesota State Colleges and Universities;

(2) was employed on a full-time basis immediately preceding retirement as a faculty
member or as an unclassified administrator in that system;

(3) was not a recipient of an early retirement incentive under section 136F.481;

(4) begins drawing an annuity from the Teachers Retirement Association; and

(5) returns to work on not less than a one-third time basis and not more than a
two-thirds time basis in the system from which the person retired under an agreement in
which the person may not earn a salary of more than $62,000 in a deleted text begincalendardeleted text end new text beginfiscal new text endyear
through employment after retirement in the system from which the person retired.

(b) Initial participation, the amount of time worked, and the duration of participation
under this section must be mutually agreed upon by the president of the institution where
the person returns to work and the employee. The president may require up to one-year
notice of intent to participate in the program as a condition of participation under this
section. The president shall determine the time of year the employee shall work. The
employer or the president may not require a person to waive any rights under a collective
bargaining agreement as a condition of participation under this section.

(c) Notwithstanding any law to the contrary, a person eligible under paragraphs (a)
and (b) may not, based on employment to which the waiver in this section applies, earn
further service credit in a Minnesota public defined benefit plan and is not eligible to
participate in a Minnesota public defined contribution plan, other than a volunteer fire plan
governed by chapter 424A. No employer or employee contribution to any of these plans
may be made on behalf of such a person.

(d) For a person eligible under paragraphs (a) and (b) who earns more than $62,000
in a deleted text begincalendardeleted text end new text beginfiscal new text endyear through employment after retirement due to employment by the
Minnesota State Colleges and Universities system, the annuity reduction provisions of
section 354.44, subdivision 5, apply only to income over $62,000.

(e) A person who returns to work under this section is a member of the appropriate
bargaining unit and is covered by the appropriate collective bargaining contract. Except
as provided in this section, the person's coverage is subject to any part of the contract
limiting rights of part-time employees.

new text begin EFFECTIVE DATE. new text end

new text begin (a) This section is effective retroactively from January 1, 2015.
new text end

new text begin (b) For purposes of the January 1, 2015, to June 30, 2015, period, the $62,000
exempt income limit must be prorated.
new text end

Sec. 36.

Minnesota Statutes 2014, section 354.72, subdivision 2, is amended to read:


Subd. 2.

Purchase procedure.

(a) A teacher may purchase credit for allowable and
formula service in the plan for a period specified in subdivision 1 if the teacher makes a
payment as specified in paragraph (b), (c), or (d), whichever applies. The employing unit,
at its option, may pay the employer portion of the amount on behalf of its employees.

(b) If payment is received by the executive director by June 30 of the fiscal year
of the strike period or new text beginby December 31 of the fiscal year following an new text endauthorized leave
included under section 354.093, 354.095, or 354.096, payment must equal the total
employee and employer contribution rates, including amortization contribution rates if
applicable, multiplied by the member's average monthly salary rate on the date the leave
or strike period commenced, deleted text beginor for an extended leave under section 354.094, on the salary
received during the year immediately preceding the initial year of the leave,
deleted text end multiplied
by the months and portions of a month of the leave or strike period for which the teacher
seeks allowable service credit.new text begin This paragraph also applies to an extended leave under
section 354.094, except that payment must be received by June 30 of the year of the leave,
and the salary used in the computation is the salary received during the year immediately
preceding the initial year of the leave.
new text end

(c) If payment is made after June 30 and before the following June 30 for a strike
periodnew text begin,new text end or deleted text beginfor leavesdeleted text end new text beginafter December 31 of the fiscal year following a leave new text endof absence
under section 354.093, 354.095, or 354.096, deleted text beginor for an extended leave of absence under
section 354.094,
deleted text end new text beginand before July 1, new text endthe payment must include the amount determined in
paragraph (b) plus compound interest at a monthly rate of 0.71 percent from June 30 new text beginfor
a strike period, or from December 31 for a leave under section 354.093, 354.095, or
354.096,
new text enduntil the last day of the month in which payment is received.new text begin If payment is made
on or after July 1 and before the following July 1 for an extended leave of absence under
section 354.094, the payment must include the amount determined in paragraph (b) plus
compound interest at a monthly rate of 0.71 percent from June 30 until the last day of
the month in which payment is received.
new text end

(d) If payment is received by the executive director after the applicable last permitted
date under paragraph (c), the payment amount is the amount determined under section
356.551. Notwithstanding payment deadlines specified in section 356.551, payment under
this section may be made anytime before the effective date of retirement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 37.

Minnesota Statutes 2014, section 355.07, is amended to read:


355.07 DECLARATION OF POLICY.

(a) In order to extend to employees of the state, its political subdivisions, and its
other governmental employers, and to the dependents and survivors of the employees of
those employing units, the basic protection accorded to others by the old age, survivors,
and disability insurance system embodied in the Social Security Act, it is hereby declared
to be the policy of the legislature, subject to the limitations of this chapter, that these steps
are taken to provide protection to employees of the state and its political subdivisions on
as broad a basis as may be authorized by the legislature and is permitted under the Social
Security Act.

(b) It is also the policy of the legislature that the protection afforded employees in
positions covered by a retirement system on the date an agreement under this chapter is
made applicable to service performed in those positions, or receiving periodic benefits
under the retirement system at that time, will not be impaired as a result of making the
agreement so applicable or as a result of legislative enactment in anticipation thereof when
combined with the benefits accorded the employee by the Social Security Act.

(c) To this end, the agreement referred to in section 355.02 must not be made
applicable to any service performed in any position covered by a retirement system unless
a referendum is first held by secret ballot in which a majority of "eligible employees," as
defined in section 218(d) (3) of the Social Security Act, vote in favor thereof, or unless
a retirement system is divided in two divisions or parts, one of which is composed of
positions of members of the system who desire coverage and one of which is composed of
positions of members of the system who do not desire coverage under section 218(d) (3)
of the Social Security Act, in accordance with subsections (6) and (7) thereof.new text begin The cost of
the referendum must be borne by the affected governmental subdivision or subdivisions,
which are required to elect a voting method.
new text end

new text begin (d) If a retirement system is divided as described in paragraph (c), any member of
the division of members that did not desire coverage may be transferred to the division of
members who did desire coverage as provided in section 218(d)(6)(f) of the Social Security
Act so long as the individual files a written request for such a transfer with the director.
new text end

deleted text begin (d)deleted text end new text begin(e) new text endNothing in any provision of this chapter authorizes the extension of the
insurance system established by this chapter, to service in any police officer's or firefighter's
position deleted text beginor in any position covered by a retirement system applicable exclusively to
positions in one or more law enforcement or firefighting units, agencies or departments
deleted text endnew text begin as
covered by a retirement system in section 356.30, subdivision 3, clauses (4) and (7)
new text end.

new text begin EFFECTIVE DATE. new text end

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

Sec. 38.

Minnesota Statutes 2014, section 356.32, subdivision 1, is amended to read:


Subdivision 1.

Proportionate retirement annuity.

(a) Notwithstanding any
provision to the contrary of the laws governing any of the retirement funds enumerated
in subdivision 2, any person who is an active member of any applicable fund, who has
credit for at least one year deleted text beginbut less than ten yearsdeleted text end of allowable service in one or more of
the covered plans, and who terminates active service under a mandatory retirement law or
policy or at deleted text beginage 65 or older, or atdeleted text end the normal retirement age deleted text beginif this age isdeleted text end new text beginbut new text endnot new text beginless than
new text endage 65, deleted text beginfor any reasondeleted text end is entitled upon making written application on the form prescribed
by the chief administrative officer of the plan to a proportionate retirement annuity from
each covered plan in which the person has new text beginat least six months of new text endallowable service credit.

(b) The proportionate annuity must be calculated under the applicable laws
governing annuities based upon allowable service credit at the time of retirement and the
person's average salary for the highest five successive years of allowable service or the
average salary for the entire period of allowable service if less than five years.

(c) Nothing in this section prevents the imposition of the appropriate early retirement
reduction of an annuity which commences before the normal retirement age.

new text begin EFFECTIVE DATE. new text end

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

Sec. 39.

Minnesota Statutes 2014, section 356.415, subdivision 1a, is amended to read:


Subd. 1a.

Annual postretirement adjustments; Minnesota State Retirement
System plans other than State Patrol retirement plan.

(a) Retirement annuity, disability
benefit, or survivor benefit recipients of the legislators retirement deleted text beginplansdeleted text endnew text begin plannew text end, including
constitutional officers as specified in chapter 3A, the general state employees retirement
plan, the correctional state employees retirement plan, new text beginand new text endthe unclassified state employees
retirement programdeleted text begin, and the judges retirement plandeleted text end are entitled to a postretirement
adjustment annually on January 1, as follows:

(1) a postretirement increase of two percent must be applied each year, effective
on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
who has been receiving an annuity or a benefit for at least 18 full months before the
January 1 increase; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or
a benefit for at least six full months, an annual postretirement increase of 1/12 of two
percent for each month that the person has been receiving an annuity or benefit must be
applied, effective January 1, following the calendar year in which the person has been
retired for at least six months, but has been retired for less than 18 months.

(b) The increases provided by this subdivision commence on January 1, 2011.
Increases under this subdivision for the general state employees retirement plan, the
correctional state employees retirement plan, or the judges retirement plan terminate on
December 31 of the calendar year in which two prior consecutive actuarial valuations
prepared by the approved actuary under sections 356.214 and 356.215 and the standards
for actuarial work promulgated by the Legislative Commission on Pensions and
Retirement deleted text beginindicatesdeleted text end new text beginindicate new text endthat the market value of assets of the retirement plan
equals or exceeds 90 percent of the actuarial accrued liability of the retirement plan and
increases under subdivision 1 recommence after that date. Increases under this subdivision
for the legislators retirement plan deleted text beginor the elected statedeleted text end new text beginestablished under chapter 3A,
including constitutional
new text endofficers deleted text beginretirement plandeleted text end new text beginspecified in that chapter, new text endterminate on
December 31 of the calendar year in which deleted text beginthedeleted text end new text begintwo prior consecutive new text endactuarial deleted text beginvaluation
deleted text endnew text beginvaluations new text endprepared by the approved actuary under sections 356.214 and 356.215 and the
standards for actuarial work promulgated by the Legislative Commission on Pensions
and Retirement deleted text beginindicatesdeleted text end new text beginindicate new text endthat the market value of assets of the general state
employees retirement plan equals or exceeds 90 percent of the actuarial accrued liability
of the retirement plan and increases under subdivision 1 recommence after that date.

(c) An increase in annuity or benefit payments under this subdivision must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the applicable covered retirement plan requesting that the increase
not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2014.
new text end

Sec. 40.

Minnesota Statutes 2014, section 356.635, subdivision 9, is amended to read:


Subd. 9.

Military service.

Contributions, benefits, including death and disability
benefits under section 401(a)(37) of the federal Internal Revenue Code, and service credit
with respect to qualified military service must be provided according to section 414(u)
of the federal Internal Revenue Code.new text begin For deaths occurring on or after January 1, 2007,
while a member is performing qualified military service as defined in United States Code,
title 38, chapter 43, to the extent required by section 401(a)(37) of the Internal Revenue
Code, survivors of a member in the system are entitled to any additional benefits that the
system would have provided if the member had resumed employment and then died,
including but not limited to accelerated vesting or survivor benefits that are contingent
on the member's death while employed. In any event, a deceased member's period of
qualified military service must be counted for vesting purposes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2007.
new text end

Sec. 41.

Minnesota Statutes 2014, section 356.635, is amended by adding a subdivision
to read:


new text begin Subd. 10. new text end

new text begin Benefit limitations. new text end

new text begin For purposes of applying the limits of section 415(b)
of the Internal Revenue Code, a retirement benefit that is payable in any form other than a
single life annuity and that is subject to section 417(e)(3) of the Internal Revenue Code
must be adjusted to an actuarially equivalent single life annuity that equals, if the annuity
starting date is in a plan year beginning after 2005, the annual amount of the single life
annuity commencing at the same annuity starting date that has the same actuarial present
value as the participant's form of benefit, using whichever of the following produces the
greatest annual amount:
new text end

new text begin (1) the interest rate and the mortality table or other tabular factor specified in the
plan for adjusting benefits in the same form;
new text end

new text begin (2) a 5.5 percent interest rate assumption and the applicable mortality table; or
new text end

new text begin (3) the applicable interest rate under section 417(e)(3) of the Internal Revenue Code
and the applicable mortality table, divided by 1.05.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2005.
new text end

Sec. 42. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 353.025; 353.83; 353.84; 353.85; and 353D.03,
subdivision 4,
new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 13

OBSOLETE DATE REVISIONS AND VARIOUS CLARIFICATIONS

Section 1.

Minnesota Statutes 2014, section 352.01, subdivision 11, is amended to read:


Subd. 11.

Allowable service.

(a) "Allowable service" means:

deleted text begin (1) service by an employee for which on or before July 1, 1961, the employee chose
to obtain credit for service by making payments to the fund under Minnesota Statutes
1961, section 352.24;
deleted text end

deleted text begin (2)deleted text end new text begin(1) new text endservice by an employee deleted text beginafter July 1, 1957,deleted text end for any calendar month in which
the employee is paid salary from which deductions are made, deposited, and credited in the
fund, including deductions made, deposited, and credited as provided in section 352.041;

deleted text begin (3)deleted text end new text begin(2) new text endservice by an employee for any calendar month for which payments in lieu of
salary deductions are made, deposited, and credited in the fund, as provided in section
352.27;

deleted text begin (4)deleted text end new text begin(3) new text endthe period of absence from their duties by employees who are temporarily
disabled because of injuries incurred in the performance of duties and for which disability
the state is liable under the workers' compensation law until the date authorized by the
director for the commencement of payments of a total and permanent disability benefit
from the retirement fund;

deleted text begin (5)deleted text end new text begin(4) new text endservice covered by a refund repaid as provided in section 352.23 or 352D.05,
subdivision 4
, except service rendered as an employee of the adjutant general for which
the person has credit with the federal civil service retirement system;

deleted text begin (6)deleted text end new text begin(5) new text endservice new text beginrendered new text endbefore July 1, 1978, by an employee of the Transit Operating
Division of the Metropolitan Transit Commission or by an employee on an authorized
leave of absence from the Transit Operating Division of the Metropolitan Transit
Commission who is employed by the labor organization which is the exclusive bargaining
agent representing employees of the Transit Operating Division, which was credited by
the Metropolitan Transit Commission-Transit Operating Division employees retirement
fund or any of its predecessor plans or funds as past, intermediate, future, continuous, or
allowable service as defined in the Metropolitan Transit Commission-Transit Operating
Division employees retirement fund plan document in effect on December 31, 1977;

deleted text begin (7)deleted text end new text begin(6) new text endservice new text beginrendered new text endafter July 1, 1983, by an employee who is employed on
a part-time basis for less than 50 percent of full time, for which the employee is paid
salary from which deductions are made, deposited, and credited in the fund, including
deductions made, deposited, and credited as provided in section 352.041 or for which
payments in lieu of salary deductions are made, deposited, and credited in the fund
as provided in section 352.27 deleted text beginshalldeleted text end new text beginmust new text endbe credited on a fractional basis either by pay
period, monthly, or annually based on the relationship that the percentage of salary earned
bears to a full-time salary, with any salary paid for the fractional service credited on the
basis of the rate of salary applicable for a full-time pay period, month, or a full-time
year. For periods of part-time service that is duplicated service credit, section 356.30,
subdivision 1
, paragraphs (g) and (h), govern; and

deleted text begin (8)deleted text end new text begin(7) new text endany period of authorized leave of absence without pay that does not exceed
one year and for which the employee obtained credit by payment to the fund under section
352.017.

deleted text begin (9) [Renumbered clause (8)]
deleted text end

deleted text begin (10) MS 2002 [Expired]
deleted text end

deleted text begin (11) [Expired, 2002 c 392 art 2 s 4]
deleted text end

(b) For purposes of paragraph (a), clauses deleted text begin(2)deleted text end new text begin(1) new text endand deleted text begin(3)deleted text endnew text begin (2)new text end, any salary that is paid
for a fractional part of any calendar month, including the month of separation from state
service, is deemed to be the compensation for the entire calendar month.

(c) Allowable service determined and credited on a fractional basis must be used in
calculating the amount of benefits payable, but service as determined on a fractional basis
must not be used in determining the length of service required for eligibility for benefits.

Sec. 2.

Minnesota Statutes 2014, section 352.01, subdivision 15, is amended to read:


Subd. 15.

Approved actuary.

"Approved actuary" means deleted text beginanydeleted text end new text beginan new text endactuary who deleted text beginis
either a fellow of the society of actuaries or who has at least 15 years of service to major
public employee funds, or any firm retaining an approved actuary on its staff
deleted text endnew text begin meets the
definition in section 356.215, subdivision 1, paragraph (c)
new text end.

Sec. 3.

Minnesota Statutes 2014, section 352.021, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

(a) There is established the general state employees
retirement plan of the Minnesota State Retirement System for state employees.

(b) The general state employees retirement plan is a continuation of the State
Employees Retirement Association.

deleted text begin (c) Any person who was a member of the State Employees Retirement Association
on June 30, 1967, is covered by the general state employees retirement plan and is entitled
to all benefits provided by the plan upon fulfilling the age, service, contribution, and
other requirements of this chapter.
deleted text end

Sec. 4.

Minnesota Statutes 2014, section 352.021, subdivision 3, is amended to read:


Subd. 3.

Optional exemptions.

new text begin(a) new text endAny person who is appointed by the governor or
lieutenant governor deleted text beginmay request exemption from coverage bydeleted text end new text beginwho is not already covered
by
new text endthe general state employees retirement plan under this chapter deleted text beginif the appointee is not
covered by the plan on the date of appointment
deleted text endnew text begin and who is not an employee listed in
section 352D.02, subdivision 1, paragraph (c), may request, in writing, an exemption
from coverage by the plan
new text end.

new text begin (b)new text end To qualify for this exemption, deleted text begina writtendeleted text end new text beginthe new text endrequest must be made within 90 days
from the date of entering upon the duties of the position to which the person is appointed.

new text begin (c)new text end After making the request, a person requesting the exemption is not entitled to
coverage by the general state employees retirement plan while employed in the position
that entitled that person to an exemption from coverage.

Sec. 5.

Minnesota Statutes 2014, section 352.021, subdivision 4, is amended to read:


Subd. 4.

Reentering service after refund.

When a former employee who has
withdrawn accumulated contributions reenters employment in a position entitled to
coverage under the general state employees retirement plan, the employee must be covered
by the plan on the same basis as a new employee and is not entitled to new text beginallowable service
new text endcredit for any former service. The annuity rights forfeited when taking a refund can only
be restored as provided in deleted text beginthis chapterdeleted text endnew text begin section 352.23new text end.

Sec. 6.

Minnesota Statutes 2014, section 352.029, subdivision 2, is amended to read:


Subd. 2.

Election.

A person described in subdivision 1 deleted text beginshall bedeleted text end new text beginis new text endcovered by
the system if written election to be covered is delivered to the executive director deleted text beginbefore
December 31, 1992,
deleted text end within 90 days of being employed by the labor organization, or
within 90 days of starting the first leave of absence with an exclusive bargaining agent,
whichever is later.

Sec. 7.

Minnesota Statutes 2014, section 352.22, subdivision 8, is amended to read:


Subd. 8.

Refund specifically limited.

new text begin(a) new text endIf a former employee covered by the
system does not apply for refund within five years after the last deduction was taken
from salary for the retirement fund, and does not have enough service to qualify for a
deferred annuity, accumulated new text beginmember and employer new text endcontributions must be credited to
and become a part of the retirement fund.

new text begin (b)new text end If the former employee returns to state service and becomes a state employee
covered by the system, the amount credited to the retirement fund, if more than $25, must
be restored to the individual account. If the amount credited to the fund is over $25 and
the former employee applies for refund or an annuity under section 352.72new text begin or 356.30new text end,
the amount must be restored to the former employee's individual account and a refund
made or an annuity paid, whichever applies.

Sec. 8.

Minnesota Statutes 2014, section 352.22, subdivision 10, is amended to read:


Subd. 10.

Other refunds.

Former employees covered by the system are entitled
to apply for refunds if they are or become members of the State Patrol retirement fund,
the state Teachers Retirement Association, or employees of the University of Minnesota
excluded from coverage under the system by action of the Board of Regents; or employees
of the adjutant general who under federal law effectually elect membership in a federal
retirement system; or officers or employees of the senate or house of representatives,
excluded from coverage under section 352.01, subdivision 2b, clause deleted text begin(7)deleted text endnew text begin (6)new text end. The refunds
must include accumulated contributions plus interest as provided in subdivision 2.

Sec. 9.

Minnesota Statutes 2014, section 352.23, is amended to read:


352.23 TERMINATION OF RIGHTSnew text begin; REPAYMENT OF REFUNDnew text end.

new text begin (a) new text endWhen any employee accepts a refund as provided in section 352.22, all existing
new text beginallowable new text endservice credits and all rights and benefits to which the employee was entitled
before accepting the refund terminate. deleted text beginThey must
deleted text end

new text begin (b) Terminated service credits and rights mustnew text end not again be restored until the former
employee acquires at least six months of allowable service credit after taking the last
refund. In that event, the employee may repay all refunds previously taken from the
retirement fund.

new text begin (c)new text end Repayment of refunds entitles the employee only to credit for service covered
by (1) salary deductions; (2) payments new text beginpreviously new text endmade in lieu of salary deductionsnew text begin as
permitted under law in effect when the payment in lieu of deductions was made
new text end; (3)
payments made to obtain credit for service as permitted by laws in effect when payment
was made; and (4) allowable service deleted text beginoncedeleted text end new text beginpreviously new text endcredited while receiving temporary
workers' compensation as provided in section 352.01, subdivision 11, clause deleted text begin(5)deleted text endnew text begin (4)new text end.

new text begin (d)new text end Payments under this section for repayment of refunds are to be paid with interest
at an annual rate of 8.5 percent compounded annuallynew text begin from the date the refund was taken
until the date the refund is repaid
new text end. They may be paid in a lump sum or by payroll deduction
in the manner provided in section 352.04. Payment may be made in a lump sum up to
six months after termination from service.

Sec. 10.

Minnesota Statutes 2014, section 352.75, subdivision 2, is amended to read:


Subd. 2.

New employees.

All persons deleted text beginfirstdeleted text end employed by the deleted text beginformerdeleted text end Metropolitan
deleted text beginTransit Commissiondeleted text end new text beginCouncil new text endas employees of the Transit Operating Division deleted text beginon or after
July 1, 1978,
deleted text end are members of the new text begingeneral state employees retirement plan of the new text endMinnesota
State Retirement System and are deleted text beginconsidereddeleted text end state employees for purposes of this chapter
unless specifically excluded under section 352.01, subdivision 2b.

Sec. 11.

Minnesota Statutes 2014, section 352.87, subdivision 8, is amended to read:


Subd. 8.

Election of coverage.

To be covered by this section, an employee of the
Department of Public Safety described in subdivision 1 who is employed in a position
described in that subdivision deleted text beginon or after July 1, 1999,deleted text end must file a notice with the executive
director of the Minnesota State Retirement System on a form prescribed by the executive
director stating whether or not the employee elects to be covered by this section. Notice
must be filed deleted text beginby September 1, 1999, ordeleted text end within 90 days of employmentdeleted text begin, whichever is laterdeleted text end.
Elections are irrevocable during any period of covered employment. A failure to file a
timely notice deleted text beginshall bedeleted text end new text beginis new text enddeemed a waiver of coverage by this section.

Sec. 12.

Minnesota Statutes 2014, section 352B.011, subdivision 3, is amended to read:


Subd. 3.

Allowable service.

(a) "Allowable service" means:

(1) service in a month during which a member is paid a salary from which a member
contribution is deducted, deposited, and credited in the State Patrol retirement fund;

deleted text begin (2) for members defined in subdivision 10, clause (1), service in any month for
which payments have been made to the State Patrol retirement fund under law;
deleted text end

deleted text begin (3) for members defined in subdivision 10, clauses (2) and (3), service for which
payments have been made to the State Patrol retirement fund under law, service for which
payments were made to the State Police officers retirement fund under law after June
30, 1961, and all prior service which was credited to a member for service on or before
June 30, 1961;
deleted text end

deleted text begin (4)deleted text end new text begin(2) new text endany period of authorized leave of absence without pay that does not exceed
one year and for which the employee obtains credit by payment to the fund under section
352B.013; and

deleted text begin (5)deleted text end new text begin(3) new text endeligible periods of uniformed service for which the member obtained service
credit by new text beginmaking the new text endpayment new text beginrequired new text endunder section 352B.086 to the fund.

(b) Allowable service also includes any period of absence from duty by a member
who, by reason of injury incurred in the performance of duty, is temporarily disabled and
for which disability the state is liable under the workers' compensation law, until the date
authorized by the executive director for commencement of payment of a disability benefit
or until the date of a return to employmentnew text begin if in conformity with section 352B.085new text end.

Sec. 13.

Minnesota Statutes 2014, section 352B.07, is amended to read:


352B.07 ACTIONS BY OR AGAINSTnew text begin THE GOVERNING BOARD OF THE
RETIREMENT PLAN
new text end.

new text begin With respect to the State Patrol retirement plan, new text endthe board new text beginof the Minnesota State
Retirement System
new text endmay sue or be sued in the name of the board of directors of the state
retirement system. In all actions brought by or against it, the board shall be represented by
the attorney general. The attorney general shall also be the legal adviser for the board.
Venue of all actions is in the Ramsey County District Court.

Sec. 14.

Minnesota Statutes 2014, section 352B.25, is amended to read:


352B.25 CONTINUING APPROPRIATION; PAYMENT OF PENSION
FUNDS deleted text beginBY INDIVIDUALSdeleted text end.

The State Patrol retirement fund deleted text beginand the participation in the Minnesota
postretirement investment fund
deleted text end must be disbursed only for the purposes provided in this
chapter. The expenses of the system and any benefits or annuities provided in this chapterdeleted text begin,
other than benefits payable from the Minnesota postretirement investment fund,
deleted text end must be
paid from the State Patrol retirement fund. The amounts necessary to make the payments
from the State Patrol retirement fund deleted text beginand the participation in the Minnesota postretirement
investment fund
deleted text end are annually appropriated from those funds for those purposes.

Sec. 15.

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


Subd. 2b.

Excluded employees.

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

(1) persons whose annual salary from one governmental subdivision never exceeds
an amount, stipulated in writing in advance, of $5,100 if the person is not a school district
employee or $3,800 if the person is a school year employee. If annual compensation from
one governmental subdivision to an employee exceeds the stipulated amount in a calendar
year or a school year, whichever applies, after being stipulated in advance not to exceed
the applicable amount, the stipulation is no longer valid and contributions must be made
on behalf of the employee under section 353.27, subdivision 12, from the first month in
which the employee received salary exceeding $425 in a month;

(2) public officers who are elected to a governing body, city mayors, or persons who
are appointed to fill a vacancy in an elective office of a governing body, whose term of office
commences on or after July 1, 2002, for the service to be rendered in that elective position;

(3) election judges and persons employed solely to administer elections;

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

(5) except as otherwise specified in subdivision 12a, employees who are employed
solely in a temporary position as defined under subdivision 12a, and employees who
resign from a nontemporary position and accept a temporary position within 30 days of
that resignation in the same governmental subdivision;

(6) employees who are employed by reason of work emergency caused by fire,
flood, storm, or similar disaster, but if the person becomes a probationary or provisional
employee within the same pay period, other than on a temporary basis, the person is a
"public employee" retroactively to the beginning of the pay period;

(7) employees who by virtue of their employment in one governmental subdivision
are required by law to be a member of and to contribute to any of the plans or funds
administered by the Minnesota State Retirement System, the Teachers Retirement
Association, or the St. Paul Teachers Retirement Fund Association, but this exclusion
must not be construed to prevent a person from being a member of and contributing to
the Public Employees Retirement Association and also belonging to and contributing to
another public pension plan or fund for other service occurring during the same period
of time, and a person who meets the definition of "public employee" in subdivision 2 by
virtue of other service occurring during the same period of time becomes a member of the
association unless contributions are made to another public retirement plan on the salary
based on the other service or to the Teachers Retirement Association by a teacher as
defined in section 354.05, subdivision 2;

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

(9) persons who are:

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

(ii) employed as resident physicians, medical interns, pharmacist residents, or
pharmacist interns and are serving in a degree or residency program in a public hospital
or in a public clinic; or

(iii) students who are serving for a period not to exceed five years in an internship
or a residency program that is sponsored by a governmental subdivision, including an
accredited educational institution;

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

(11) except for employees of Hennepin County or employees of Hennepin
Healthcare System, Inc., foreign citizens who are employed by a governmental subdivision
under a work permit or under an H-1b visa initially issued or extended for a combined
period of less than three years of employment but upon extension of the employment of
the visa beyond the three-year period, the foreign citizen must be reported for membership
beginning on the first of the month following the extension if the monthly earnings
threshold as provided under subdivision 2anew text begin, paragraph (a),new text end is met;

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

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

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

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

(16) electrical workers, plumbers, carpenters, and associated trades personnel who
are employed by Independent School District No. 625, St. Paul, or the city of St. Paul,
who have retirement coverage under a collective bargaining agreement by the Electrical
Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan,
or the pension plan applicable to Carpenters Local 322 who were either first employed
after May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under
Laws 2000, chapter 461, article 7, section 5;

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

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

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

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

(21) independent contractors and the employees of independent contractors;

(22) reemployed annuitants of the association during the course of that reemployment;

(23) persons appointed to serve on a board or commission of a governmental
subdivision or an instrumentality thereof; and

(24) persons employed as full-time fixed-route bus drivers by the St. Cloud
Metropolitan Transit Commission who are members of the International Brotherhood
of Teamsters Local 638 and who are, by virtue of that employment, members of the
International Brotherhood of Teamsters Central States pension plan.

(b) Any person performing the duties of a public officer in a position defined in
subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
employee of an independent contractor.

Sec. 16.

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 beginthe 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 deleted text beginprior to
deleted text endnew text beginbefore new text endJuly 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. 17.

Minnesota Statutes 2014, section 353.01, subdivision 16, is amended to read:


Subd. 16.

Allowable service; limits and computation.

(a) "Allowable service"
means:

(1) service during years of actual membership in the course of which employee
deductions were withheld from salary and contributions were made at the applicable rates
under section 353.27, 353.65, or 353E.03;

(2) periods of service covered by payments in lieu of salary deductions under
sections 353.27, subdivision 12, and 353.35;

(3) service in years during which the public employee was not a member but for
which the member later elected, while a member, to obtain credit by making payments to
the fund as permitted by any law then in effect;

(4) a period of authorized leave of absence with pay from which deductions for
employee contributions are made, deposited, and credited to the fund;

(5) a period of authorized personal, parental, or medical leave of absence without
pay, including a leave of absence covered under the federal Family Medical Leave Act,
that does not exceed one year, and for which a member obtained service credit for each
month in the leave period by payment under section 353.0161 to the fund made in place of
salary deductions. An employee must return to public service and render a minimum of
three months of allowable service in order to be eligible to make payment under section
353.0161 for a subsequent authorized leave of absence without pay. Upon payment, the
employee must be granted allowable service credit for the purchased period;

(6) a periodic, repetitive leave that is offered to all employees of a governmental
subdivision. The leave program may not exceed 208 hours per annual normal work cycle
as certified to the association by the employer. A participating member obtains service
credit by making employee contributions in an amount or amounts based on the member's
average salary, excluding overtime pay, that would have been paid if the leave had not been
taken. The employer shall pay the employer and additional employer contributions on
behalf of the participating member. The employee and the employer are responsible to pay
interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
from the end of the normal cycle until full payment is made. An employer shall also make
the employer and additional employer contributions, plus 8.5 percent interest, compounded
annually, on behalf of an employee who makes employee contributions but terminates
public service. The employee contributions must be made within one year after the end of
the annual normal working cycle or within 30 days after termination of public service,
whichever is sooner. The executive director shall prescribe the manner and forms to be
used by a governmental subdivision in administering a periodic, repetitive leave. Upon
payment, the member must be granted allowable service credit for the purchased period;

(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
months allowable service per authorized temporary or seasonal layoff in one calendar year.
An employee who has received the maximum service credit allowed for an authorized
temporary or seasonal layoff must return to public service and must obtain a minimum of
three months of allowable service subsequent to the layoff in order to receive allowable
service for a subsequent authorized temporary or seasonal layoff;

(8) a period during which a member is absent from employment by a governmental
subdivision by reason of service in the uniformed services, as defined in United States
Code, title 38, section 4303(13), if the member returns to public service with the same
governmental subdivision upon discharge from service in the uniformed service within the
time frames required under United States Code, title 38, section 4312(e), provided that
the member did not separate from uniformed service with a dishonorable or bad conduct
discharge or under other than honorable conditions. The service must be credited if the
member pays into the fund equivalent employee contributions based upon the contribution
rate or rates in effect at the time that the uniformed service was performed multiplied by
the full and fractional years being purchased and applied to the annual salary rate. The
annual salary rate is the average annual salary during the purchase period that the member
would have received if the member had continued to be employed in covered employment
rather than to provide uniformed service, or, if the determination of that rate is not
reasonably certain, the annual salary rate is the member's average salary rate during the
12-month period of covered employment rendered immediately preceding the period of the
uniformed service. Payment of the member equivalent contributions must be made during
a period that begins with the date on which the individual returns to public employment
and that is three times the length of the military leave period, or within five years of the
date of discharge from the military service, whichever is less. If the determined payment
period is less than one year, the contributions required under this clause to receive service
credit may be made within one year of the discharge date. Payment may not be accepted
following 30 days after termination of public service under subdivision 11a. If the member
equivalent contributions provided for in this clause are not paid in full, the member's
allowable service credit must be prorated by multiplying the full and fractional number
of years of uniformed service eligible for purchase by the ratio obtained by dividing the
total member contributions received by the total member contributions otherwise required
under this clause. The equivalent employer contribution, and, if applicable, the equivalent
additional employer contribution must be paid by the governmental subdivision employing
the member if the member makes the equivalent employee contributions. The employer
payments must be made from funds available to the employing unit, using the employer
and additional employer contribution rate or rates in effect at the time that the uniformed
service was performed, applied to the same annual salary rate or rates used to compute the
equivalent member contribution. The governmental subdivision involved may appropriate
money for those payments. The amount of service credit obtainable under this section may
not exceed five years unless a longer purchase period is required under United States Code,
title 38, section 4312. The employing unit shall pay interest on all equivalent member and
employer contribution amounts payable under this clause. Interest must be computed at a
rate of 8.5 percent compounded annually from the end of each fiscal year of the leave or the
break in service to the end of the month in which the payment is received. Upon payment,
the employee must be granted allowable service credit for the purchased period; or

(9) a period specified under section 353.0162.

deleted text begin (b) For calculating benefits under sections 353.30, 353.31, 353.32, and 353.33 for
state officers and employees displaced by the Community Corrections Act, chapter 401,
and transferred into county service under section 401.04, "allowable service" means the
combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
section 352.01, subdivision 11.
deleted text end

deleted text begin (c)deleted text end new text begin(b) new text endNo member may receive more than 12 months of allowable service credit in a
year either for vesting purposes or for benefit calculation purposes.

new text begin (c)new text end For an active member who was an active member of the former Minneapolis
Firefighters Relief Association on December 29, 2011, "allowable service" is the period
of service credited by the Minneapolis Firefighters Relief Association as reflected in
the transferred records of the association up to December 30, 2011, and the period
of service credited under paragraph (a), clause (1), after December 30, 2011. For an
active member who was an active member of the former Minneapolis Police Relief
Association on December 29, 2011, "allowable service" is the period of service credited
by the Minneapolis Police Relief Association as reflected in the transferred records of the
association up to December 30, 2011, and the period of service credited under paragraph
(a), clause (1), after December 30, 2011.

deleted text begin (d) MS 2002 [Expired]
deleted text end

Sec. 18.

Minnesota Statutes 2014, section 353.01, subdivision 17, is amended to read:


Subd. 17.

Approved actuary.

"Approved actuary" means deleted text beginanydeleted text end new text beginan new text endactuary who deleted text beginis a
fellow of the society of actuaries or who has at least 15 years of service to major public
employee funds or any firm retaining such an actuary on its staff
deleted text endnew text begin meets the definition in
section 356.215, subdivision 1, paragraph (c)
new text end.

Sec. 19.

Minnesota Statutes 2014, section 353.017, subdivision 2, is amended to read:


Subd. 2.

Election.

A person described in subdivision 1 is covered by the association
if written election to be covered is delivered to the association within six months of
employment by the labor organization deleted text beginor within six months after July 1, 1993, whichever
is applicable
deleted text end.

Sec. 20.

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


Subd. 2.

Rights of deferred annuitant.

The entitlement of a deferred annuitant or
other former member of the general employees retirement plan of the Public Employees
Retirement Association, the Minneapolis Employees Retirement Fund division, 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 deleted text beginhereindeleted text end preserved. deleted text beginThe 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.
deleted text end

Sec. 21.

Minnesota Statutes 2014, section 353.64, subdivision 7a, is amended to read:


Subd. 7a.

Pension coverage for certain metropolitan transit police officers.

A
person who is employed as a police officer deleted text beginon or after the first day of the first payroll
period after July 1, 1993,
deleted text end by the Metropolitan Council and who is not eligible for coverage
under the agreement with the Secretary of the federal Department of Health and Human
Services making the provisions of the federal Old Age, Survivors, and Disability Insurance
Act because the person's position is excluded from application under United States Code,
sections 418(d)(5)(A) and 418(d)(8)(D), and under section 355.07, is a member of the
public employees police and fire fund and is considered to be a police officer within the
meaning of this section. The Metropolitan Council shall deduct the employee contribution
from the salary of each police officer as required by section 353.65, subdivision 2, shall
make the employer contribution for each police officer as required by section 353.65,
subdivision 3
, and shall meet the employer recording and reporting requirements in
section 353.65, subdivision 4.

Sec. 22.

Minnesota Statutes 2014, section 353.64, subdivision 8, is amended to read:


Subd. 8.

Pension coverage for certain state military affairs department
firefighters.

A person who is employed as a full-time firefighter deleted text beginon or after the first day
of the first payroll period after June 10, 1987,
deleted text end by the Department of Military Affairs
of the state of Minnesota and who is not eligible for coverage under the agreement
signed between the state and the secretary of the federal Department of Health and
Human Services making the provisions of the federal Old Age, Survivors, and Disability
Insurance Act applicable to state employees because the person's position is excluded from
application under United States Code, title 42, sections 418(d)(5)(A) and 418(d)(8)(D) and
section 355.07, is a member of the public employees police and fire fund and is considered
to be a firefighter within the meaning of this section. The state Department of Military
Affairs shall make the employee contribution deduction from the salary of each full-time
Military Affairs Department firefighter as required by section 353.65, subdivision 2, shall
make the employer contribution with respect to each firefighter as required by section
353.65, subdivision 3, and shall meet the employer recording and reporting requirements
in section 353.65, subdivision 4.

Sec. 23.

Minnesota Statutes 2014, section 353.64, subdivision 9, is amended to read:


Subd. 9.

Pension coverage for certain sheriffs' association employees.

(a)
A former member of the association who is an employee of the Minnesota Sheriffs'
Association may elect to be a police and fire fund member with respect to service with
the sheriffs' association, if written election to be covered is delivered to the board within
60 days after deleted text beginJuly 1, 1989, or within 60 days afterdeleted text end new text beginthe new text endcommencement of employmentdeleted text begin,
whichever is later
deleted text end.

(b) Employee and employer contributions for past service are the obligation of
the employee, except that the Minnesota sheriffs' association may pay the employer
contributions. The employer shall, in any event, deduct necessary future contributions
from the employee's salary and remit all contributions to the association as required by
this chapter.

(c) Persons who become association members under this section deleted text beginshalldeleted text end new text beginare new text endnot deleted text beginbe
deleted text endeligible for election to the board of trustees.

Sec. 24.

Minnesota Statutes 2014, section 353.64, subdivision 10, is amended to read:


Subd. 10.

Pension coverage for Hennepin Healthcare System, Inc.; paramedics
and emergency medical technicians.

An employee of Hennepin Healthcare System, Inc.
deleted text beginwhodeleted text end isnew text begin a member of the public employees police and fire retirement plan under sections
353.63 to 353.68 if the person is
new text end:

(1) certified as a paramedic or emergency medical technician by the state under
section 144E.28, subdivision 4;

(2) employed full time as a paramedic or emergency medical technician by Hennepin
County deleted text beginon or after the effective date specified in Laws 1994, chapter 499, section 2deleted text end; and

(3) not eligible deleted text beginafter the effective date under Laws 1994, chapter 499, section 2,deleted text end for
coverage under the agreement signed between the state and the secretary of the federal
Department of Health and Human Services making the provisions of the federal Old Age,
Survivors, and Disability Insurance Act applicable to paramedics and emergency medical
technicians because the person's position is excluded after that date from application under
United States Code, title 42, sections 418(d)(5)(A) and 418(d)(8)(D), and section 355.07deleted text begin;
deleted text end

deleted text begin is a member of the public employees police and fire fund under sections 353.63 to 353.68deleted text end.

Hennepin Healthcare System, Inc. shall deduct the employee contribution from
the salary of each full-time paramedic and emergency medical technician it employs as
required by section 353.65, subdivision 2, shall make the employer contribution for each
full-time paramedic and emergency medical technician it employs as required by section
353.65, subdivision 3, and shall meet the employer recording and reporting requirements
in section 353.65, subdivision 4.

Sec. 25.

Minnesota Statutes 2014, section 353D.071, subdivision 2, is amended to read:


Subd. 2.

Required minimum distributions.

(a) The provisions of this subdivision
deleted text beginshalldeleted text end apply for purposes of determining required minimum distributions for calendar years
deleted text beginbeginning with the 2003 calendar yeardeleted text end and deleted text beginwilldeleted text end new text beginmust new text endtake precedence over any inconsistent
provisions of the plan. All distributions required under this section deleted text beginwilldeleted text end new text beginmust new text endbe determined
and made in accordance with the treasury regulations under section 401(a)(9) of the
Internal Revenue Code, including regulations providing special rules for governmental
plans, as defined under section 414(d) of the Internal Revenue Code, that comply with a
reasonable good faith interpretation of the minimum distribution requirements.

(b) The member's entire interest deleted text beginwilldeleted text end new text beginmust new text endbe distributed to the member in a lump
sum no later than the member's required beginning date.

(c) If the member dies before the required minimum distribution is made, the
member's entire interest deleted text beginwilldeleted text end new text beginmust new text endbe distributed in a lump sum no later than as follows:

(1) if the member's surviving spouse is the member's sole designated beneficiary, the
distribution must be made by December 31 of the calendar year immediately following the
calendar year in which the member died, or by December 31 of the calendar year in which
the member would have attained age 70 years, six months, whichever is later;

(2) if the member's surviving spouse is not the member's sole beneficiary, or if there
is no designated beneficiary as of September 30 of the year following the year of the
member's death, the member's entire interest deleted text beginshalldeleted text end new text beginmust new text endbe distributed by December 31
of the calendar year containing the fifth anniversary of the member's death as directed
under section 353D.07, subdivision 5; or

(3) if the member's surviving spouse is the member's sole designated beneficiary and
the surviving spouse dies after the member, but before the account balance is distributed
to the surviving spouse, paragraph (c), clause (2), deleted text beginshalldeleted text end new text beginmust new text endapply as if the surviving
spouse were the member.

(d) For purposes of paragraph (c), unless clause (3) applies, distributions are
considered to be made on the member's required beginning date. If paragraph (c), clause
(3), applies, distributions are considered to begin on the date distributions deleted text beginare required to
deleted text endnew text beginmust new text endbe made to the surviving spouse under paragraph (c), clause (1).

Sec. 26.

Minnesota Statutes 2014, section 354.05, subdivision 10, is amended to read:


Subd. 10.

Approved actuary.

"Approved actuary" means deleted text beginanydeleted text end new text beginan new text endactuary who
deleted text beginis either a fellow of the society of actuaries or who has at least 15 years of service to
major public employee funds or any firm retaining such an actuary on its staff
deleted text endnew text begin meets the
definition in section 356.215, subdivision 1, paragraph (c)
new text end.

Sec. 27.

Minnesota Statutes 2014, section 354.05, subdivision 13, is amended to read:


Subd. 13.

Allowable service.

"Allowable service" means:

deleted text begin (1) any service rendered by a teacher for which on or before July 1, 1957, the
teacher's account in the retirement fund was credited by reason of employee contributions
in the form of salary deductions, payments in lieu of salary deductions, or in any other
manner authorized by Minnesota Statutes 1953, sections 135.01 to 135.13, as amended by
Laws 1955, chapters 361, 549, 550, and 611;
deleted text end

deleted text begin (2) any service rendered by a teacher for which on or before July 1, 1961, the teacher
elected to obtain credit for service by making payments to the fund under Minnesota
Statutes 1980, section 354.09 and section 354.51;
deleted text end

deleted text begin (3)deleted text end new text begin(1) new text endany service rendered by a teacher deleted text beginafter July 1, 1957,deleted text end for any calendar month
when the member receives salary from which deductions are made, deposited and credited
in the fund;

deleted text begin (4)deleted text end new text begin(2) new text endany service rendered by a person deleted text beginafter July 1, 1957,deleted text end for any calendar month
where payments in lieu of salary deductions are made, deposited and credited into the fund
as provided in Minnesota Statutes 1980, section 354.09, subdivision 4, and section 354.53;

deleted text begin (5)deleted text end new text begin(3) new text endany service rendered by a teacher for which the teacher elected to obtain
credit for service by making payments to the fund under Minnesota Statutes 1980,
section 354.09, subdivisions 1 and 4, sections 354.50, 354.51, Minnesota Statutes 1957,
section 135.41, subdivision 4, Minnesota Statutes 1971, section 354.09, subdivision 2, or
Minnesota Statutes, 1973 Supplement, section 354.09, subdivision 3;

deleted text begin (6)deleted text end new text begin(4) new text endboth service during years of actual membership in the course of which
contributions were currently made and service in years during which the teacher was not a
member but for which the teacher later elected to obtain credit by making payments to the
fund as permitted by any law then in effect;

deleted text begin (7)deleted text end new text begin(5) new text endany service rendered where contributions were made and no credit was
established because of the limitations contained in Minnesota Statutes 1957, section
135.09, subdivision 2, as determined by the ratio between the amounts of money credited
to the teacher's account in a fiscal year and the maximum retirement contribution allowable
for that year;

deleted text begin (8) MS 2002 [Expired]
deleted text end

deleted text begin (9)deleted text end new text begin(6) new text enda period of time during which a teacher was on strike without pay, not to exceed
a period of one year, if payment in lieu of salary deductions is made under section 354.72;

deleted text begin (10)deleted text end new text begin(7) new text enda period of service before July 1, 2006, that was properly credited as
allowable service by the Minneapolis Teachers Retirement Fund Association, and that
was rendered by a teacher as an employee of Special School District No. 1, Minneapolis,
or by an employee of the Minneapolis Teachers Retirement Fund Association who was
a member of the Minneapolis Teachers Retirement Fund Association by virtue of that
employment, who has not begun receiving an annuity or other retirement benefit from
the former Minneapolis Teachers Retirement Fund Association calculated in whole or
in part on that service before July 1, 2006, and who has not taken a refund of member
contributions related to that service unless the refund is repaid under section 354.50,
subdivision 4. Service as an employee of Special School District No. 1, Minneapolis, on
or after July 1, 2006, is "allowable service" only as provided by this chapter; or

deleted text begin (11)deleted text end new text begin(8) new text enda period of service before July 1, 2015, that was properly credited as
allowable service by the Duluth Teachers Retirement Fund Association, and that was
rendered by a teacher as an employee of Independent School District No. 709, Duluth, or
by an employee of the Duluth Teachers Retirement Fund Association who was a member
of the Duluth Teachers Retirement Fund Association by virtue of that employment, who
has not begun receiving an annuity or other retirement benefit from the former Duluth
Teachers Retirement Fund Association calculated in whole or in part on that service
before July 1, 2015, and who has not taken a refund of member contributions related to
that service unless the refund is repaid under section 354.50, subdivision 4. Service as an
employee of Independent School District No. 709, Duluth, on or after July 1, 2015, is
"allowable service" only as provided by this chapter.

Sec. 28.

Minnesota Statutes 2014, section 354.05, subdivision 25, is amended to read:


Subd. 25.

Formula service credit.

"Formula service credit" means any allowable
service credit as defined in subdivision 13 except:

deleted text begin (1) Any service rendered prior to July 1, 1951, for which payments were made
pursuant to subdivision 13 except as provided in section 354.09, subdivision 4, as
determined by multiplying the number of years of service established in the records of the
Teachers Retirement Association as of July 1, 1961 by the ratio obtained between the total
amount paid and the maximum amount payable for those years;
deleted text end

deleted text begin (2) Any service rendered prior to July 1, 1957 for which payments were made
pursuant to section 354.09, subdivision 4, as determined by multiplying the number of
years of service established in the records of the teachers retirement association by the
ratio obtained between the total amount paid and the maximum amount payable for those
years; or
deleted text end

deleted text begin (3)deleted text end new text begin(1) new text endany service rendered for which contributions were not made in full as
determined by the ratio between the amounts of money credited to the teacher's account in
a fiscal year and the retirement contribution payable for the fiscal year deleted text beginpursuant todeleted text end new text beginunder
new text endsections 354.092, 354.42new text begin,new text end and 354.51; and

deleted text begin (4)deleted text end new text begin(2) new text endno period of service deleted text beginshalldeleted text end new text beginmay new text endbe counted more than once for purposes
of this subdivision.

Sec. 29.

Minnesota Statutes 2014, section 354.07, subdivision 5, is amended to read:


Subd. 5.

Records; accounts; interest.

new text begin(a) new text endThe board shall keep a record of the
receipts and disbursements of the fund and a separate account deleted text beginwithdeleted text end new text beginfor new text endeach member of
the association. The board shall also keep separate accounts for annuity payments, for
employer contributions and all other necessary accounts and reserves.

new text begin (b)new text end It shall determine annually the annual interest earnings of the fund which shall
include realized capital gains and losses. deleted text beginAny amount in the capital reserve account on
July 1, 1973, shall be transferred to the employer contribution's account.
deleted text end

new text begin (c)new text end The annual interest earnings deleted text beginshalldeleted text end new text beginmust new text endbe apportioned and credited to the
separate members' accounts except those covered under the provisions of section 354.44,
subdivision 6
. The rate to be used in this distributionnew text begin,new text end computed to the last full quarter
percent deleted text beginshalldeleted text endnew text begin, mustnew text end be determined by dividing the interest earnings by the total invested
assets of the fund. The excess of the annual interest earnings in the excess earnings reserve
which was not credited to the various accounts deleted text beginshalldeleted text end new text beginmust new text endbe credited to the gross interest
earnings for the next succeeding year.

Sec. 30.

Minnesota Statutes 2014, section 354.092, subdivision 4, is amended to read:


Subd. 4.

Service credit.

A member may not receive more than three years of
allowable service credit in any ten consecutive years under this section deleted text beginunless the
allowable service credit was paid for by the member before July 1, 1962
deleted text end. Notwithstanding
the provisions of any agreements to the contrary, employee and employer contributions
may not be made to receive allowable service credit under this section if the member does
not retain the right to full reinstatement both during and at the end of the sabbatical leave.

Sec. 31.

Minnesota Statutes 2014, section 354.42, subdivision 1a, is amended to read:


Subd. 1a.

Teachers retirement fund.

(a) Within the Teachers Retirement
Association and the state treasury is created a special retirement fund, which must include
all the assets of the Teachers Retirement Association and all revenue of the association.
deleted text beginThe fund is the continuation of the fund established under Laws 1931, chapter 406, section
2, notwithstanding the repeal of Minnesota Statutes 1973, section 354.42, subdivision 1,
by Laws 1974, chapter 289, section 59.
deleted text end

(b) The teachers retirement fund must be credited with all employee and employer
contributions, all investment revenue and gains, and all other income authorized by law.

(c) From the teachers retirement fund is appropriated the payments of annuities
and benefits authorized by this chapter and the reasonable and necessary expenses of
administering the fund and the association.

Sec. 32.

Minnesota Statutes 2014, section 354.44, subdivision 8, is amended to read:


Subd. 8.

Annuity payment; new text beginprovision of new text endevidence of receipt.

new text begin(a) new text endAn annuity or
benefit for a given month must be paid during the first week of that month.

new text begin (b)new text end Evidence of receipt of the check issued or acknowledgment of the amount
electronically transferred in payment of an annuity or benefit may be required from the
payee on a form prescribed by the executive director. The evidence of receipt form may
be required periodically at times specified by the board. deleted text beginIn the eventdeleted text end new text beginIf new text endthe new text beginfiling of an
new text endevidence of receipt form is requirednew text begin and the form is not filednew text end, future annuities or benefits
must be withheld until the form is submitted.

Sec. 33.

Minnesota Statutes 2014, section 354.44, subdivision 9, is amended to read:


Subd. 9.

Determining applicable law.

deleted text beginAn employeedeleted text end new text beginA former teacher new text endwho returns
to covered service following a termination and who is not receiving a retirement annuity
under this section must have earned at least 85 days of credited service following the
return to covered service to be eligible for improved benefits resulting from any law
change enacted subsequent to that termination.

Sec. 34.

Minnesota Statutes 2014, section 354.45, subdivision 1a, is amended to read:


Subd. 1a.

Bounce-back annuity.

(a) If a former member or disabilitant selects a
joint and survivor annuity option under subdivision 1, the former member or disabilitant
must receive a normal single life annuity if the designated optional annuity beneficiary
dies before the former member or disabilitant. Under this option, no reduction may be
made in the person's annuity to provide for restoration of the normal single life annuity in
the event of the death of the designated optional annuity beneficiary.

(b) The restoration of the normal single life annuity under this subdivision will take
effect on deleted text beginJuly 1, 1989, ordeleted text end the first of the month following the date of death of the designated
optional annuity beneficiary, or on the first of the month following one year before the date
on which a certified copy of the death record of the designated optional annuity beneficiary
is received in the office of the Teachers Retirement Association, whichever date is later.

(c) Except as stated in paragraph (b), this subdivision may not be interpreted as
authorizing retroactive benefit payments.

Sec. 35.

Minnesota Statutes 2014, section 354.48, subdivision 3, is amended to read:


Subd. 3.

Computation of benefits.

deleted text begin (a) The amount of the disability benefit granted
to members covered under section 354.44, subdivision 2, paragraphs (b) and (c), is an
amount equal to double the annuity which could be purchased by the member's accumulated
deductions plus interest on the amount computed as though the teacher were at normal
retirement age at the time the benefit begins to accrue and in accordance with the law in
effect on the last day for which salary is received. Any member who applies for a disability
benefit after June 30, 1974, and who failed to make an election under Minnesota Statutes
1971, section 354.145, shall have the disability benefit computed under this paragraph, as
further specified in paragraphs (b) and (c), or paragraph (d), whichever is larger.
deleted text end

deleted text begin (b) The benefit granted shall be determined by the following:
deleted text end

deleted text begin (1) the amount of the accumulated deductions;
deleted text end

deleted text begin (2) interest actually earned on these accumulated deductions to the date the benefit
begins to accrue;
deleted text end

deleted text begin (3) interest for the years from the date the benefit begins to accrue to the date the
member attains normal retirement age at the rate of three percent;
deleted text end

deleted text begin (4) annuity purchase rates based on an appropriate annuity table of mortality
established by the board as provided in section 354.07, subdivision 1, and using
the applicable postretirement interest rate assumption specified in section 356.215,
subdivision 8
.
deleted text end

deleted text begin (c) In addition, a supplementary monthly benefit of $25 to age 65 or the five-year
anniversary of the effective date of the disability benefit, whichever is later, must be
paid to basic members.
deleted text end

deleted text begin (d)deleted text end new text begin(a) new text endThe disability benefit granted to members covered under section 354.44,
subdivision 6
, deleted text beginshalldeleted text end new text beginmust new text endbe computed in the same manner as the annuity provided in
section 354.44, subdivision 6. The disability benefit deleted text beginshall bedeleted text end new text beginis new text endthe formula annuity without
the reduction for each month the member is under normal retirement age when the benefit
begins to accrue as defined by the law in effect on the last day for which salary is paid.

deleted text begin (e)deleted text end new text begin(b) new text endFor the purposes of computing a retirement annuity when the member
becomes eligible, the amounts paid for disability benefits deleted text beginshalldeleted text end new text beginmust new text endnot be deducted from
the individual member's accumulated deductions. If the disability benefits provided in
this subdivision exceed the monthly average salary of the disabled member, the disability
benefits deleted text beginshalldeleted text end new text beginmust new text endbe reduced to an amount equal to the disabled member's average salary.

Sec. 36.

Minnesota Statutes 2014, section 354.51, subdivision 1, is amended to read:


Subdivision 1.

Eligibility to make payments.

No member deleted text beginshall bedeleted text end new text beginis new text endentitled to
make payments in lieu of salary deductions to the retirement board to receive new text beginallowable
service
new text endcredit for any period of service deleted text beginprior todeleted text end new text beginrendered before new text endthat date for which
employee contributions were not deducted from the member's salary, except as provided
in subdivision deleted text begin4deleted text endnew text begin 5new text end, or section 354.50 or 354.53.

Sec. 37.

Minnesota Statutes 2014, section 354.51, subdivision 5, is amended to read:


Subd. 5.

Payment of shortages.

(a) Except as provided in paragraph (b), in the
event that full required member contributions are not deducted from the salary of a
teacher, payment deleted text beginmust be made as follows:
deleted text end

deleted text begin (1) Payment of shortages in member deductions on salary earned after June 30,
1957, and before July 1, 1981, may be made any time before retirement. Payment must
include interest at an annual rate of 8.5 percent compounded annually from the end of the
fiscal year in which the shortage occurred to the end of the month in which payment is
made and the interest must be credited to the fund. If payment of a shortage in deductions
is not made, the formula service credit of the member must be prorated under section
354.05, subdivision 25, clause (3).
deleted text end

deleted text begin (2) Paymentdeleted text end of shortages in member deductions on salary earned deleted text beginafter June 30, 1981,
deleted text endare the sole obligation of the employing unit and are payable by the employing unit upon
notification by the executive director of the shortage with interest at an annual rate of 8.5
percent compounded annually from the end of the fiscal year in which the shortage occurred
to the end of the month in which payment is made and the interest must be credited to the
fund. deleted text beginEffective July 1, 1986,deleted text end The employing unit shall also pay the employer contributions
as specified in section 354.42, subdivisions 3 and 5 for the shortages. If the shortage
payment is not paid by the employing unit within 60 days of notification, and if the
executive director does not use the recovery procedure in section 354.512, the executive
director shall certify the amount of the shortage to the applicable county auditor, who shall
spread a levy in the amount of the shortage payment over the taxable property of the
taxing district of the employing unit if the employing unit is supported by property taxes.

deleted text begin (3)deleted text end Payment may not be made deleted text beginfor shortages in member deductions on salary earned
before July 1, 1957,
deleted text end for shortages in member deductions on salary paid or payable under
paragraph (b)deleted text begin,deleted text end or for shortages in member deductions for persons employed by the
Minnesota State Colleges and Universities system in a faculty position or in an eligible
unclassified administrative position and whose employment was less than 25 percent
of a full academic year, exclusive of the summer session, for the applicable institution
that exceeds the most recent 36 months.

(b) For a person who is employed by the Minnesota State Colleges and Universities
system in a faculty position or in an eligible unclassified administrative position and
whose employment was less than 25 percent of a full academic year, exclusive of the
summer session, for the applicable institution, upon the person's election under section
354B.21 of retirement coverage under this chapter, the shortage in member deductions
on the salary for employment by the Minnesota State Colleges and Universities system
institution of less than 25 percent of a full academic year, exclusive of the summer session,
for the applicable institution for the most recent 36 months and the associated employer
contributions must be paid by the Minnesota State Colleges and Universities system
institution, plus annual compound interest at the rate of 8.5 percent from the end of the
fiscal year in which the shortage occurred to the end of the month in which the Teachers
Retirement Association coverage election is made. An individual electing coverage
under this paragraph shall repay the amount of the shortage in member deductions, plus
interest, through deduction from salary or compensation payments within the first year of
employment after the election under section 354B.21, subject to the limitations in section
16D.16. The Minnesota State Colleges and Universities system may use any means
available to recover amounts which were not recovered through deductions from salary or
compensation payments. No payment of the shortage in member deductions under this
paragraph may be made for a period longer than the most recent 36 months.

Sec. 38.

Minnesota Statutes 2014, section 354.52, subdivision 4c, is amended to read:


Subd. 4c.

MnSCU service credit reporting.

For all part-time service rendered deleted text beginon or
after July 1, 2004
deleted text end, the service credit reporting requirement in subdivision 4b for all part-time
employees of the Minnesota State Colleges and Universities system must be met by the
Minnesota State Colleges and Universities system reporting to the association on or before
July 31 of each year the final calculation of each part-time member's service credit for the
immediately preceding fiscal year based on the employee's assignments for the fiscal year.

Sec. 39.

Minnesota Statutes 2014, section 354.55, subdivision 10, is amended to read:


Subd. 10.

Reduced benefits.

Any benefit to which any person may be entitled
under this chapter may be reduced in amount upon application of the person entitled
thereto to the deleted text beginboard of trustees, provided that suchdeleted text end new text beginexecutive director if the new text endperson deleted text beginshall
first relinquish
deleted text end new text beginrelinquishes new text endin writing all claim to that part of the full benefit which is the
difference between the benefit which the person would be otherwise entitled to receive
and the benefit which the person will receivenew text begin after the benefit reductionnew text end. The reduced
benefit deleted text beginshall bedeleted text end new text beginis new text endpayment in full of all amounts due under this chapter for the month for
which the payment is made and acceptance of the reduced benefit releases the retirement
association from all obligation to pay to deleted text beginsuchdeleted text end new text beginthe new text endperson the difference between the amount
of the reduced benefit and the full amount of the benefit which deleted text beginsuchdeleted text end new text beginthe new text endperson would
otherwise have received. deleted text beginAfter July 1, 1971,deleted text end Any benefit reduced under the provisions of
this subdivision may not again be restored.

Sec. 40.

Minnesota Statutes 2014, section 354A.011, subdivision 6, is amended to read:


Subd. 6.

Approved actuary.

"Approved actuary" means deleted text beginanydeleted text end new text beginan new text endactuary who deleted text beginis
either a fellow of the society of actuaries or who has at least 15 years of service to major
public employee retirement funds or any firm which retains such an actuary on its staff
deleted text endnew text beginmeets the definition in section 356.215, subdivision 1, paragraph (c)new text end.

Sec. 41.

Minnesota Statutes 2014, section 354A.092, is amended to read:


354A.092 SABBATICAL LEAVE.

Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund
Association who is granted a sabbatical leave is entitled to receive allowable service credit
in the association for periods of sabbatical leave. To obtain the service credit, the teacher
on sabbatical leave shall make an employee contribution to the association. No teacher is
entitled to receive more than three years of allowable service credit under this section for
a period or periods of sabbatical leave during any ten consecutive years. If the teacher
granted a sabbatical leave makes the employee contribution for a period of sabbatical
leave under this section, the employing unit shall make an employer contribution on
behalf of the teacher to the association for that period of sabbatical leave in the manner
described in section 354A.12, subdivision 2a. The employee and employer contributions
must be in an amount equal to the employee and employer contribution rates in effect for
other active members of the association covered by the same program applied to a salary
figure equal to the teacher's actual covered salary for the plan year immediately preceding
the sabbatical leave period. Payment of the employee contribution authorized under this
section must be made by the teacher on or before June 30 of the year next following
the year in which the sabbatical leave terminated and must be made without interest.
deleted text beginFor sabbatical leaves taken after June 30, 1986,deleted text end The required employer contributions
must be paid by the employing unit within 30 days after notification by the association
of the amount due. If the employee contributions for the sabbatical leave period are
less than an amount equal to the applicable contribution rate applied to a salary figure
equal to the teacher's actual covered salary for the plan year immediately preceding the
sabbatical leave period, service credit must be prorated. The prorated service credit must
be determined by the ratio between the amount of the actual payment which was made and
the full contribution amount payable under this section.

Sec. 42.

Minnesota Statutes 2014, section 354A.12, subdivision 3c, is amended to read:


Subd. 3c.

Termination of supplemental contributions and direct matching
and state aid.

(a) The supplemental contributions payable to the St. Paul Teachers
Retirement Fund Association by Independent School District No. 625 under section
423A.02, subdivision 3, and all forms of aid under subdivision 3a to the St. Paul Teachers
Retirement Fund Association must continue until the deleted text begincurrentdeleted text end new text beginactuarial value of new text endassets of
the fund equal or exceed the actuarial accrued liability of the fund as determined in the
most recent actuarial report for the fund by the actuary retained under section 356.214
or until the established date for full funding under section 356.215, subdivision 11,
whichever occurs earlier.

(b) The aid to the Duluth Teachers Retirement Fund Association under section
423A.02, subdivision 3, and all forms of state aid under subdivision 3a to the Duluth
Teachers Retirement Fund Association must continue until the current assets of the fund
equal or exceed the actuarial accrued liability of the fund as determined in the most
recent actuarial report for the fund by the actuary retained under section 356.214 or until
the established date for full funding under section 356.215, subdivision 11, whichever
occurs earlier.

Sec. 43.

Minnesota Statutes 2014, section 354A.31, subdivision 7, is amended to read:


Subd. 7.

Reduction for early retirement.

(a) This subdivision applies to a person
who has become at least 55 years old and first becomes a coordinated member after
June 30, 1989, and to any other coordinated member who has become at least 55 years
old and whose annuity is higher when calculated using the retirement annuity formula
percentage in subdivision 4, paragraph (d), or subdivision 4a, paragraph (d), as applicable,
in conjunction with this subdivision than when calculated under subdivision 4, paragraph
(c), or subdivision 4a, paragraph (c), in conjunction with subdivision 6.

(b) A coordinated member who retires before the normal retirement age deleted text beginshall be
paid the
deleted text end new text beginis entitled to receive a new text endretirement annuity calculated using the retirement annuity
formula percentage in subdivision 4, paragraph (d), or subdivision 4a, paragraph (d),
whichever deleted text beginis applicabledeleted text endnew text begin appliesnew text end, multiplied by the applicable early retirement factor
specified below:

Under age 62
Age 62 or older
or less than 30 years of service
with 30 years of service
Normal retirement age:
65
66
65
66
Age at retirement
55
0.5376
0.4592
56
0.5745
0.4992
57
0.6092
0.5370
58
0.6419
0.5726
59
0.6726
0.6062
60
0.7354
0.6726
61
0.7947
0.7354
62
0.8507
0.7947
0.8831
0.8389
63
0.9035
0.8507
0.9246
0.8831
64
0.9533
0.9035
0.9635
0.9246
65
1.0000
0.9533
1.0000
0.9635
66
1.0000
1.0000

For normal retirement ages between ages 65 and 66, the early retirement factors deleted text beginwill
deleted text endnew text beginmust new text endbe determined by linear interpolation between the early retirement factors applicable
for normal retirement ages 65 and 66.

Sec. 44.

Minnesota Statutes 2014, section 356.215, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For the purposes of sections 3.85 and 356.20 to
356.23, each of the terms in the following paragraphs has the meaning given.

(b) "Actuarial valuation" means a set of calculations prepared by an actuary retained
under section 356.214 if so required under section 3.85, or otherwise, by an approved
actuary, to determine the normal cost and the accrued actuarial liabilities of a benefit
plan, according to the entry age actuarial cost method and based upon stated assumptions
including, but not limited to rates of interest, mortality, salary increase, disability,
withdrawal, and retirement and to determine the payment necessary to amortize over a
stated period any unfunded accrued actuarial liability disclosed as a result of the actuarial
valuation of the benefit plan.

(c) "Approved actuary" meansnew text begin:
new text end

new text begin (1) new text end a person who is regularly engaged in the business of providing actuarial services
and who is a fellow in the Society of Actuariesdeleted text begin.deleted text endnew text begin; or
new text end

new text begin (2) a firm that retains a person described in clause (1) on its staff.
new text end

(d) "Entry age actuarial cost method" means an actuarial cost method under which
the actuarial present value of the projected benefits of each individual currently covered
by the benefit plan and included in the actuarial valuation is allocated on a level basis over
the service of the individual, if the benefit plan is governed by section 424A.093, or over
the earnings of the individual, if the benefit plan is governed by any other law, between the
entry age and the assumed exit age, with the portion of the actuarial present value which is
allocated to the valuation year to be the normal cost and the portion of the actuarial present
value not provided for at the valuation date by the actuarial present value of future normal
costs to be the actuarial accrued liability, with aggregation in the calculation process to be
the sum of the calculated result for each covered individual and with recognition given to
any different benefit formulas which may apply to various periods of service.

(e) "Experience study" means a report providing experience data and an actuarial
analysis of the adequacy of the actuarial assumptions on which actuarial valuations are
based.

(f) "Actuarial value of assets" means the market value of all assets as of the
preceding June 30, reduced by:

(1) 20 percent of the difference between the actual net change in the market value
of total assets between the June 30 that occurred three years earlier and the June 30 that
occurred four years earlier and the computed increase in the market value of total assets
over that fiscal year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial valuation
for the July 1 that occurred four years earlier;

(2) 40 percent of the difference between the actual net change in the market value
of total assets between the June 30 that occurred two years earlier and the June 30 that
occurred three years earlier and the computed increase in the market value of total assets
over that fiscal year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial valuation
for the July 1 that occurred three years earlier;

(3) 60 percent of the difference between the actual net change in the market value
of total assets between the June 30 that occurred one year earlier and the June 30 that
occurred two years earlier and the computed increase in the market value of total assets
over that fiscal year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial valuation
for the July 1 that occurred two years earlier; and

(4) 80 percent of the difference between the actual net change in the market value
of total assets between the most recent June 30 and the June 30 that occurred one year
earlier and the computed increase in the market value of total assets over that fiscal year
period if the assets had earned a rate of return on assets equal to the annual percentage
preretirement interest rate assumption used in the actuarial valuation for the July 1 that
occurred one year earlier.

(g) "Unfunded actuarial accrued liability" means the total current and expected
future benefit obligations, reduced by the sum of the actuarial value of assets and the
present value of future normal costs.

(h) "Pension benefit obligation" means the actuarial present value of credited
projected benefits, determined as the actuarial present value of benefits estimated to be
payable in the future as a result of employee service attributing an equal benefit amount,
including the effect of projected salary increases and any step rate benefit accrual rate
differences, to each year of credited and expected future employee service.

Sec. 45.

Minnesota Statutes 2014, section 356.215, subdivision 18, is amended to read:


Subd. 18.

Establishment of actuarial assumptions.

deleted text begin (a) Before July 2, 2010, the
actuarial assumptions used for the preparation of actuarial valuations under this section
that are other than preretirement interest, postretirement interest, salary increase, and
payroll increase may be changed only with the approval of the Legislative Commission on
Pensions and Retirement or after a period of one year has elapsed since the date on which
the proposed assumption change or changes were received by the Legislative Commission
on Pensions and Retirement without commission action.
deleted text end

deleted text begin (b) After July 1, 2010,deleted text end new text begin(a) new text endThe actuarial assumptions used for the preparation
of actuarial valuations under this section that are other than deleted text beginpostretirement interest and
preretirement
deleted text end new text beginthe new text endinterest new text beginrate new text endmay be changed only with the approval of the Legislative
Commission on Pensions and Retirement or after a period of one year has elapsed since
the date on which the proposed assumption change or changes were received by the
Legislative Commission on Pensions and Retirement without commission action.

deleted text begin (c)deleted text end new text begin(b) new text endA change in the applicable actuarial assumptions may be proposed by the
governing board of the applicable pension fund or relief association, by deleted text beginthedeleted text end new text beginan new text endactuary
retained deleted text beginby the joint retirement systemsdeleted text end under section 356.214 or by the actuary retained
by a local deleted text beginpolice or firefightersdeleted text end relief association governed by sections 424A.091 to
424A.096 or by Laws 2013, chapter 111, article 5, sections 31 to 42, if one is retained.

Sec. 46.

Minnesota Statutes 2014, section 356.245, is amended to read:


356.245 LOCAL ELECTED OFFICIALS.

An elected official who is covered by section 353.01, subdivision 2a, new text beginor 353D.01,
subdivision 2, whichever applies,
new text endis eligible to participate in deleted text beginthe state of Minnesotadeleted text end new text begina
new text enddeferred compensation plan under section 356.24. The applicable local governmental unit
may make the matching employer contributions authorized by that section on the part
of a participating elected official.

Sec. 47.

Minnesota Statutes 2014, section 356.40, is amended to read:


356.40 DATE FOR PAYMENT OF ANNUITIES AND BENEFITS.

(a) Notwithstanding any law to the contrary, all annuities and benefits payable deleted text beginon
and after December 1, 1977
deleted text end by a covered retirement fund, as defined in section 356.30,
subdivision 3
, must be paid in advance for each month during the first week of that month.
deleted text beginThe bylaws of local retirement funds must be amended accordingly.
deleted text end

(b) In no event, however, may this section authorize the payment of both a retirement
annuity and a surviving spouse's benefit in one month where the law governing the
applicable retirement fund provides for the payment of the retired member's retirement
annuity to the surviving spouse for the month in which the retired member dies.

Sec. 48.

Minnesota Statutes 2014, section 356.407, subdivision 1, is amended to read:


Subdivision 1.

Restoration upon termination of remarriage.

Notwithstanding any
provision to the contrary of the laws governing any of the retirement plans enumerated
in subdivision 2, any person who was receiving a surviving spouse's benefit from any of
those plans and whose benefit terminated solely because of remarriage is, if the remarriage
terminates for any reason, again entitled upon reapplication to a surviving spouse's benefit;
provided, however, that the person is not entitled to retroactive payments for the period of
remarriage. The benefit resumes at the level which the person would have been receiving
if there had been no remarriage. deleted text beginThis section applies prospectively to any person who first
becomes entitled to receive a surviving spouse's benefit on or after May 18, 1975, and
also applies retroactively to any person who first became entitled to receive a surviving
spouse's benefit before May 18, 1975; provided, however, that no person is entitled to
retroactive payments for any period of time before May 18, 1975.
deleted text end

Sec. 49.

Minnesota Statutes 2014, section 356.415, subdivision 1, is amended to read:


Subdivision 1.

Annual postretirement adjustments; generally.

(a) Except as
otherwise provided in subdivision 1a, 1b, 1c, 1d, 1e, or 1f, retirement annuity, disability
benefit, or survivor benefit recipients of a covered retirement plan are entitled to a
postretirement adjustment annually on January 1, as follows:

(1) a postretirement increase of 2.5 percent must be applied each year, effective
January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least 12 full months prior to the January 1
increase; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or a
benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5
percent for each month that the person has been receiving an annuity or benefit must be
applied, effective on January 1 following the calendar year in which the person has been
retired for less than 12 months.

deleted text begin (b) The increases provided by this subdivision commence on January 1, 2010.
deleted text end

deleted text begin (c)deleted text end new text begin(b) new text endAn increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the covered retirement plan requesting that the increase not be made.

Sec. 50.

Minnesota Statutes 2014, section 356.415, subdivision 1a, is amended to read:


Subd. 1a.

Annual postretirement adjustments; Minnesota State Retirement
System plans other than State Patrol retirement plan.

(a) Retirement annuity, disability
benefit, or survivor benefit recipients of the legislators retirement plans, including
constitutional officers as specified in chapter 3A, the general state employees retirement
plan, the correctional state employees retirement plan, the unclassified state employees
retirement program, and the judges retirement plan are entitled to a postretirement
adjustment annually on January 1, as follows:

(1) a postretirement increase of two percent must be applied each year, effective
on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
who has been receiving an annuity or a benefit for at least 18 full months before the
January 1 increase; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or
a benefit for at least six full months, an annual postretirement increase of 1/12 of two
percent for each month that the person has been receiving an annuity or benefit must be
applied, effective January 1, following the calendar year in which the person has been
retired for at least six months, but has been retired for less than 18 months.

(b) deleted text beginThe increases provided by this subdivision commence on January 1, 2011.
deleted text endIncreases under this subdivision for the general state employees retirement plan, the
correctional state employees retirement plan, or the judges retirement plan terminate on
December 31 of the calendar year in which two prior consecutive actuarial valuations
prepared by the approved actuary under sections 356.214 and 356.215 and the standards
for actuarial work promulgated by the Legislative Commission on Pensions and
Retirement indicates that the market value of assets of the retirement plan equals or
exceeds 90 percent of the actuarial accrued liability of the retirement plan and increases
under subdivision 1 recommence after that date. Increases under this subdivision for
the legislators retirement plan or the elected state officers retirement plan terminate
on December 31 of the calendar year in which the actuarial valuation prepared by the
approved actuary under sections 356.214 and 356.215 and the standards for actuarial work
promulgated by the Legislative Commission on Pensions and Retirement indicates that the
market value of assets of the general state employees retirement plan equals or exceeds
90 percent of the actuarial accrued liability of the retirement plan and increases under
subdivision 1 recommence after that date.

(c) An increase in annuity or benefit payments under this subdivision must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the applicable covered retirement plan requesting that the increase
not be made.

Sec. 51.

Minnesota Statutes 2014, section 356.415, subdivision 1d, is amended to read:


Subd. 1d.

Teachers Retirement Association annual postretirement adjustments.

(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers
Retirement Association are entitled to a postretirement adjustment annually on January
1, as follows:

deleted text begin (1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable;
deleted text end

deleted text begin (2)deleted text end new text begin(1) new text endfor deleted text beginJanuary 1, 2013, anddeleted text end each deleted text beginsuccessivedeleted text end January 1 until funding stability is
restored, a postretirement increase of two percent must be applied each year, effective
on January 1, to the monthly annuity or benefit amount of each annuitant or benefit
recipient who has been receiving an annuity or a benefit for at least 18 full months prior
to the January 1 increase;

deleted text begin (3)deleted text end new text begin(2) new text endfor deleted text beginJanuary 1, 2013, anddeleted text end each deleted text beginsuccessivedeleted text end January 1 until funding stability is
restored, for each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least six full months before the January 1 increase, an annual postretirement
increase of 1/12 of two percent for each month the person has been receiving an annuity or
benefit must be applied, effective January 1, for which the person has been retired for at
least six months but less than 18 months;

deleted text begin (4)deleted text end new text begin(3) new text endfor each January 1 following the restoration of funding stability, a
postretirement increase of 2.5 percent must be applied each year, effective January 1, to
the monthly annuity or benefit amount of each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least 18 full months prior to the January 1
increase; and

deleted text begin (5)deleted text end new text begin(4) new text endfor each January 1 following the restoration of funding stability, for each
annuitant or benefit recipient who has been receiving an annuity or a benefit for at least
six full months before the January 1 increase, an annual postretirement increase of 1/12
of 2.5 percent for each month the person has been receiving an annuity or benefit must
be applied, effective January 1, for which the person has been retired for at least six
months but less than 18 months.

(b) Funding stability is restored when the market value of assets of the Teachers
Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities
of the Teachers Retirement Association in the two most recent prior actuarial valuations
prepared under section 356.215 and the standards for actuarial work by the approved
actuary retained by the Teachers Retirement Association under section 356.214.

(c) An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the Teachers Retirement Association requesting that the increase
not be made.

(d) The retirement annuity payable to a person who retires before becoming eligible
for Social Security benefits and who has elected the optional payment as provided in
section 354.35 must be treated as the sum of a period-certain retirement annuity and a life
retirement annuity for the purposes of any postretirement adjustment. The period-certain
retirement annuity plus the life retirement annuity must be the annuity amount payable
until age 62, 65, or normal retirement age, as selected by the member at retirement, for an
annuity amount payable under section 354.35. A postretirement adjustment granted on
the period-certain retirement annuity must terminate when the period-certain retirement
annuity terminates.

Sec. 52.

Minnesota Statutes 2014, section 356.415, subdivision 1e, is amended to read:


Subd. 1e.

Annual postretirement adjustments; State Patrol retirement plan.

(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol
retirement plan are entitled to a postretirement adjustment annually on January 1, as
follows:

(1) a postretirement increase of one percent must be applied each year, effective on
January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
has been receiving an annuity or a benefit for at least 18 full months before the January 1
increase; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least six full months, an annual postretirement increase of 1/12 of one percent
for each month that the person has been receiving an annuity or benefit must be applied,
effective January 1, following the calendar year in which the person has been retired for at
least six months, but has been retired for less than 18 months.

(b) deleted text beginThe increases provided by this subdivision commence on January 1, 2014.
deleted text endIncreases under paragraph (a) for the State Patrol retirement plan terminate on December
31 of the calendar year in which two prior consecutive actuarial valuations prepared by
the approved actuary under sections 356.214 and 356.215 and the standards for actuarial
work promulgated by the Legislative Commission on Pensions and Retirement indicates
that the market value of assets of the retirement plan equals or exceeds 85 percent of
the actuarial accrued liability of the retirement plan and increases under paragraph (c)
recommence after that date.

(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State
Patrol retirement plan are entitled to a postretirement adjustment annually on January
1, as follows:

(1) a postretirement increase of 1.5 percent must be applied each year, effective on
January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
has been receiving an annuity or a benefit for at least 18 full months before the January 1
increase; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent
for each month that the person has been receiving an annuity or benefit must be applied,
effective January 1, following the calendar year in which the person has been retired for at
least six months, but has been retired for less than 18 months.

(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on
December 31 of the calendar year in which two prior consecutive actuarial valuations
prepared by the approved actuary under sections 356.214 and 356.215 and the standards
for actuarial work adopted by the Legislative Commission on Pensions and Retirement
indicates that the market value of assets of the retirement plan equals or exceeds 90
percent of the actuarial accrued liability of the retirement plan and increases under
subdivision 1 recommence after that date.

(e) An increase in annuity or benefit payments under this subdivision must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the applicable covered retirement plan requesting that the increase
not be made.

Sec. 53.

Minnesota Statutes 2014, section 356.415, subdivision 1f, is amended to read:


Subd. 1f.

Annual postretirement adjustments; Minnesota State Retirement
System judges retirement plan.

(a) The increases provided under this subdivision deleted text beginbegin
on January 1, 2014, and
deleted text end are in lieu of increases under subdivision 1 or 1a for retirement
annuity, disability benefit, or survivor benefit recipients of the judges retirement plan.

(b) Retirement annuity, disability benefit, or survivor benefit recipients of the
judges retirement plan are entitled to a postretirement adjustment annually on January
1, as follows:

(1) a postretirement increase of 1.75 percent must be applied each year, effective
on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
who has been receiving an annuity or a benefit for at least 18 full months before the
January 1 increase; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least six full months, an annual postretirement increase of 1/12 of 1.75
percent for each month that the person has been receiving an annuity or benefit must be
applied, effective January 1, following the calendar year in which the person has been
retired for at least six months, but has been retired for less than 18 months.

(c) Increases under this subdivision terminate on December 31 of the calendar year
in which two prior consecutive actuarial valuations prepared by the approved actuary
under sections 356.214 and 356.215 and the standards for actuarial work promulgated
by the Legislative Commission on Pensions and Retirement indicates that the market
value of assets of the judges retirement plan equals or exceeds 70 percent of the actuarial
accrued liability of the retirement plan. Increases under subdivision 1 or 1a, whichever is
applicable, begin on the January 1 next following that date.

(d) An increase in annuity or benefit payments under this subdivision must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the applicable covered retirement plan requesting that the increase
not be made.

Sec. 54.

Minnesota Statutes 2014, section 356.431, is amended to read:


356.431 CONVERSION OF LUMP-SUM POSTRETIREMENT AND
SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.

Subdivision 1.

Lump-sum postretirement payment conversion.

For benefits paid
deleted text beginafter December 31, 2001,deleted text end to eligible persons under new text beginMinnesota Statutes 2014, new text endsection
356.42, the amount of the most recent lump-sum benefit payable to an eligible recipient
under new text beginMinnesota Statutes 2014, new text endsection 356.42 must be divided by 12. The result must be
added to the monthly annuity or benefit otherwise payable to an eligible recipient, must
become a permanent part of the benefit recipient's pension, and must be included in any
pension benefit subject to future deleted text beginincreasesdeleted text endnew text begin postretirement adjustmentsnew text end.

Sec. 55.

Minnesota Statutes 2014, section 356.62, is amended to read:


356.62 PAYMENT OF EMPLOYEE CONTRIBUTION.

(a) For purposes of any public pension plan, as defined in section 356.63, paragraph
(b)
, each employer shall pick up the employee contributions required deleted text beginpursuant todeleted text end new text beginunder
new text endlaw or new text beginunder new text endthe pension plan new text begindocument new text endfor all deleted text beginsalary payable after December 31, 1982
deleted text endnew text beginsalariesnew text end. If the United States Treasury Department rules that under section 414(h) of the
Internal Revenue Code of 1986, as amended through December 31, 1992, that These
picked up contributions are not includable in the employee's adjusted gross income until
they are distributed or made available, then these picked up contributions must be treated
as employer contributions in determining tax treatment under the Internal Revenue Code
of 1986deleted text begin, as amended through December 31, 1992,deleted text end and the employer shall discontinue
withholding federal income taxes on the amount of these contributions. The employer
shall pay these picked up contributions from the same source of funds as is used to pay the
salary of the employee. The employer shall pick up these employee contributions by a
reduction in the cash salary of the employee.

(b) Employee contributions that are picked up must be treated for all purposes of the
public pension plan in the same manner and to the same extent as employee contributions
that were made deleted text beginprior todeleted text end new text beginbefore new text endthe date on which the employee contributions pick up
began. The amount of the employee contributions that are picked up must be included
in the salary upon which retirement coverage is credited and new text beginupon which new text endretirement and
survivor's benefits are determined. For purposes of this section, "employee" means
any person covered by a public pension plan. For purposes of this section, "employee
contributions" include any sums deducted from the employee's salary or wages or
otherwise paid in lieu thereof, regardless of whether they are denominated contributions
by the public pension plan.

(c) deleted text beginFor any calendar year in which withholding has been reduced under this section,
deleted text endThe employing unit shall supply each employee and the commissioner of revenue with an
information return indicating the amount of the employer's picked-up contributions for the
calendar year that were not subject to withholding. This return must be provided to the
employee not later than January 31 of the succeeding calendar year. The commissioner of
revenue shall prescribe the form of the return and the provisions of section 289A.12 must
apply to the extent not inconsistent with the provisions of this section.

Sec. 56.

Minnesota Statutes 2014, section 356B.10, subdivision 2, is amended to read:


Subd. 2.

Building; related facilities.

deleted text begin(a)deleted text end The commissioner of administration
deleted text beginmaydeleted text end new text beginshall new text endprovide a building and related facilities to be jointly occupied by the board of
directors of the Minnesota State Retirement System, the board of trustees of the Public
Employees Retirement Association, and the board of trustees of the Teachers Retirement
Association for the administration of their public pension systems.

deleted text begin (b) Design of the facilities is not subject to section 16B.33. The competitive
acquisition process set forth in chapter 16C does not apply if the process set forth in
subdivision 3 is followed.
deleted text end

deleted text begin (c) The boards and the commissioner must submit the plans for a public pension
facility under this section to the chair of the house of representatives Ways and Means
Committee and to the chair of the senate State Government Finance Committee for their
approval before the plans are implemented.
deleted text end

Sec. 57.

Minnesota Statutes 2014, section 356B.10, subdivision 3, is amended to read:


Subd. 3.

Contracting procedures.

deleted text begin (a) The commissioner may enter into a contract
for facilities with a contractor to furnish the architectural, engineering, and related services
as well as the labor, materials, supplies, equipment, and related construction services on
the basis of a request for qualifications and competitive responses received through a
request for proposals process that must include the items listed in paragraphs (b) to (i).
deleted text end

deleted text begin (b) Before issuing a request for qualifications and a request for proposals, the
commissioner, with the assistance of the boards, shall prepare performance criteria and
specifications that include:
deleted text end

deleted text begin (1) a general floor plan or layout indicating the general dimensions of the public
building and space requirements;
deleted text end

deleted text begin (2) design criteria for the exterior and site area;
deleted text end

deleted text begin (3) performance specifications for all building systems and components to ensure
quality and cost efficiencies;
deleted text end

deleted text begin (4) conceptual floor plans for systems space;
deleted text end

deleted text begin (5) preferred types of interior finishes, styles of windows, lighting and outlets, doors,
and features such as built-in counters and telephone wiring;
deleted text end

deleted text begin (6) mechanical and electrical requirements;
deleted text end

deleted text begin (7) special interior features required; and
deleted text end

deleted text begin (8) a completion schedule.
deleted text end

deleted text begin (c) The commissioner shall first solicit statements of qualifications from eligible
contractors and select more than one qualified contractor based upon experience, technical
competence, past performance, capability to perform, and other appropriate facts.
Contractors selected under this process must be, employ, or have as a partner, member,
coventurer, or subcontractor, persons licensed and registered under chapter 326 to provide
the services required to design and complete the project. The commissioner does not
have to select any of the respondents if none reasonably fulfill the criteria set forth in
this paragraph.
deleted text end

deleted text begin (d) The contractors selected shall be asked to respond to a request for proposals.
Responses must include site plans, design concept, elevation, statement of material to
be used, floor layouts, a detailed development budget, and a total cost to complete the
project. The proposal must indicate that the contractor obtained at least two proposals
from subcontractors for each item of work and must set forth how the subcontractors
were selected. The commissioner, with the assistance of the boards, shall evaluate the
proposals based upon design, cost, quality, aesthetics, and the best overall value to the
state pension funds. The commissioner need not select any of the proposals submitted
and reserves the right to reject any and all proposals, and may terminate the process or
revise the request for proposals and solicit new proposals if the commissioner determines
that the best interests of the pension funds would be better served by doing so. Proposals
submitted are nonpublic data until the contract is awarded.
deleted text end

deleted text begin (e) The contractor selected must comply with sections 574.26 to 574.261. Before
executing a final contract, the contractor selected shall certify a firm construction price
and completion date.
deleted text end

deleted text begin (f) The commissioner may consider building sites in the city of St. Paul and
surrounding suburbs.
deleted text end

deleted text begin (g)deleted text end new text begin(a) new text endAny land, building, or facility leased, constructed, or acquired and any
leasehold interest acquired under this section must be held by the state in trust for the three
retirement systems as tenants in common. Each retirement system fund must consider its
interest as a fixed asset of its pension fund in accordance with governmental accounting
standards.

deleted text begin (h)deleted text end new text begin(b) new text endThe commissioner may lease to another governmental subdivisiondeleted text begin,deleted text end new text beginor new text endto a
private company under contract with the State Board of Investmentdeleted text begin,deleted text end or with the Board
of Directors of the Minnesota State Retirement System, whichever applies, to provide
deferred compensation services under section 352.965, any portion of the funds' building
and lands that is not required for deleted text begintheirdeleted text end new text beginthe new text enddirect use new text beginof the retirement systems new text endupon terms
and conditions new text beginthat new text endthey deem to be in the best interest of the pension funds. Any income
accruing from the rentals must be separately accounted for and utilized to offset ongoing
administrative expenses and any excess must be carried forward new text beginas a reserve new text endfor future
administrative expenses. The commissioner may also enter into lease agreements for
the establishment of satellite offices deleted text beginshoulddeleted text end new text beginif new text endthe new text beginretirement plan new text endboards find them to
be necessary in order to assure their members reasonable access to their services. The
commissioner may lease under section 16B.24 any portion of the facilities not required for
the direct use of the new text beginretirement plan new text endboards.

deleted text begin (i)deleted text end new text begin(c) new text endThe boards shall formulate deleted text beginanddeleted text endnew text begin,new text end adoptnew text begin, and periodically revisenew text end a written
working agreement that sets forth the nature of each retirement system's ownership
interest, the duties and obligations of each system toward the construction, operation, and
maintenance costs of its facilities, and identifies one retirement fund to serve as manager
for operating and maintenance purposes. The boards may contract with independent third
parties for maintenance-related activities, services, and supplies, and may use the services
of the Department of Administration where new text beginthe boards determine that it is new text endeconomically
feasible to do so. If the boards cannot agree or new text begincannot new text endresolve a dispute about new text beginthe new text endoperations
or maintenance of the facilities, they may request the commissioner of administration to
appoint a representative from the department's real estate management division to serve as
arbitrator of the dispute with authority to issue a written resolution of the dispute.

Sec. 58.

Minnesota Statutes 2014, section 356B.10, subdivision 4, is amended to read:


Subd. 4.

Revenue bonds.

new text begin(a) new text endThe commissioner of management and budgetdeleted text begin, on
request of the governor, may sell and issue revenue bonds in an aggregate principal amount
up to $38,000,000 to achieve the purposes described in subdivisions 1 and 2, plus the
amount needed to pay issuance costs and interest costs and to establish necessary reserves
to secure the bonds. The commissioner of management and budget
deleted text end may issue bonds for the
purpose of refunding bonds issued under deleted text beginthis subdivisiondeleted text endnew text begin Minnesota Statutes 2001, section
356.89, subdivision 4
new text end. The bonds may be sold and issued on terms and in a manner the
commissioner of management and budget determines to be in the best interests of the state.

new text begin (b)new text end The proceeds of the bonds must be credited to a bond proceeds account in the
pension building fund which the commissioner of management and budget must create
in the state treasury.

Sec. 59.

Minnesota Statutes 2014, section 356B.10, subdivision 5, is amended to read:


Subd. 5.

Security.

new text begin(a) new text endThe boards may pledge any or all assets of the new text beginretirement
fund or funds administered by the
new text endboards as security for the bonds.

new text begin (b)new text end The bonds and the interest on them must be paid solely from and secured by deleted text beginall
deleted text endnew text beginthenew text end assets of the boards pledged and appropriated for these purposes to the debt service
fund created in subdivision 6 and any investment income on the fund and any reserve
established for this purpose.

new text begin (c)new text end The bonds are not public debt, and the full faith, credit, and taxing powers of
the state are not pledged for their payment. The bonds and the interest on them must not
be paid, directly or indirectly, in whole or in part, from a tax of statewide application on
any class of property, income, transaction, or privilege.

Sec. 60.

Minnesota Statutes 2014, section 356B.10, subdivision 6, is amended to read:


Subd. 6.

Debt service fund.

There is established in the state treasury a separate and
special pension building debt service fund. Money in the funds managed by the boards is
appropriated to the boards for transfer to the pension building debt service fund. Money
appropriated and transferred to the fund and investment income on it on hand or required
to be transferred to the fund must be used and is irrevocably appropriated to pay when due
the principal of and interest on the bonds deleted text beginauthorizeddeleted text end new text beginreferenced new text endin subdivision 4.

Sec. 61.

Minnesota Statutes 2014, section 356B.10, subdivision 7, is amended to read:


Subd. 7.

Covenants; agreements.

The deleted text begincommissioner of management and budget
may, for and on behalf of the state, enter into
deleted text end covenants and agreements new text beginentered into by
the commissioner of management and budget for the construction of the pension building
that were
new text endnot inconsistent with new text beginMinnesota Statutes 2001, section 356.89, new text endsubdivisions 1
to 6new text begin, and determined by the commissioner new text end as deleted text beginmay bedeleted text end necessary or desirable to facilitate
the sale and issuance of the bonds on terms favorable to the state, including, but not
limited to, covenants and agreements relating to the payment of and security for the bonds,
tax exemption, and disclosure of information required by federal and state securities
lawsdeleted text begin. The covenants and agreements of the commissioner of management and budgetdeleted text endnew text begin,
new text endconstitute an enforceable contract of the state and new text beginby that contract new text endthe state pledges and
agrees with the holders of any bonds that the state will not limit or alter the rights vested
in the commissioner of management and budget to fulfill the terms of the covenants or
agreements made with the holders of the bonds, or in any way impair the rights and
remedies of the holders until the bonds, together with the interest on them, with interest
on any unpaid installments of interest, and all costs and expenses in connection with any
action or proceeding by or on behalf of the holders, are fully met and discharged. deleted text beginThe
commissioner of management and budget may include this pledge and agreement of the
state in any covenant or agreement with the holders of the bonds.
deleted text end Sections 16A.672
and 16A.675 apply to the bonds.

Sec. 62.

Minnesota Statutes 2014, section 423A.02, subdivision 1b, is amended to read:


Subd. 1b.

Additional amortization state aid.

(a) deleted text beginBeginning October 1, 2013,
and
deleted text end Annually deleted text beginthereafterdeleted text end, the commissioner shall allocate the additional amortization
state aid, new text beginif any, new text endincluding any state aid in excess of the limitation in subdivision 4, on
the following basis:

(1) 47.1 percent to the city of Minneapolis to defray the employer costs associated
with police and firefighter retirement coverage;

(2) 25.8 percent as additional funding to support the minimum fire state aid for
volunteer firefighter relief associations under section 69.021, subdivision 7, paragraph (d);

(3) 12.9 percent to the city of Duluth to defray employer costs associated with
police and firefighter retirement coverage;

(4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the
investment performance requirement of paragraph (c) is met; and

(5) 1.3 percent to the city of Virginia to defray the employer contribution under
section 353.665, subdivision 8, paragraph (d).

If there is no additional employer contribution under section 353.665, subdivision
8
, paragraph (b), certified under subdivision 1, paragraph (d), clause (2), with respect
to the former Minneapolis Police Relief Association and the former Minneapolis Fire
Department Relief Association, the commissioner shall allocate that 47.1 percent of the
aid as follows: 49 percent to the Teachers Retirement Association, 21 percent to the St.
Paul Teachers Retirement Fund Association, and 30 percent as additional funding to
support minimum fire state aid for volunteer firefighters relief associationsnew text begin under section
69.021, subdivision 7, paragraph (d)
new text end. If there is no employer contribution by the city of
Virginia under section 353.665, subdivision 8, paragraph (d), for the former Virginia Fire
Department Relief Association certified on or before June 30 by the executive director of
the Public Employees Retirement Association, the commissioner shall allocate that 1.3
percent of the aid as follows: 49 percent to the Teachers Retirement Association, 21
percent to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional
funding to support minimum fire state aid for volunteer firefighters relief associations
new text beginunder section 69.021, subdivision 7, paragraph (d)new text end.

(b) The allocation must be made by the commissioner of revenue on October 1
annually.

(c) With respect to the St. Paul Teachers Retirement Fund Association, annually, if
the teacher's association five-year average time-weighted rate of investment return does
not equal or exceed the performance of a composite portfolio assumed passively managed
(indexed) invested ten percent in cash equivalents, 60 percent in bonds and similar debt
securities, and 30 percent in domestic stock calculated using the formula under section
11A.04, clause (11), the aid allocation to the retirement fund under this section ceases
until the five-year annual rate of investment return equals or exceeds the performance of
that composite portfolio.

(d) The amounts required under this subdivision are the amounts annually
appropriated to the commissioner of revenue under section 69.021, subdivision 11,
paragraph (d), new text beginif any, new text endand the aid amounts in excess of the limitation in subdivision 4.

Sec. 63.

Minnesota Statutes 2014, section 424A.001, subdivision 10, is amended to
read:


Subd. 10.

Volunteer firefighter.

"Volunteer firefighter" means a person who deleted text begineither:
deleted text end

deleted text begin (1) was a member of the applicable fire department or the independent nonprofit
firefighting corporation and a member of the relief association on July 1, 2006; or
deleted text end

deleted text begin (2) becamedeleted text end new text beginis new text enda member of the applicable fire department or the independent
nonprofit firefighting corporation and is eligible for membership in the applicable relief
association deleted text beginafter June 30, 2006,deleted text end andnew text begin:
new text end

(i) is engaged in providing emergency response services or delivering fire education
or prevention services as a member of a municipal fire department, a joint powers entity
fire department, or an independent nonprofit firefighting corporation;

(ii) is trained in or is qualified to provide fire suppression duties or to provide fire
prevention duties under subdivision 8; and

(iii) meets any other minimum firefighter and service standards established by the
fire department or the independent nonprofit firefighting corporation or specified in the
articles of incorporation or bylaws of the relief association.

Sec. 64. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall make any technical cross-reference changes resulting
from amendments in this act, including any grammatical changes necessary to preserve
sentence structure.
new text end

Sec. 65. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 352.271; 352.75, subdivisions 1, 3, 4, 5, and 6;
352.76; 352.91, subdivisions 3a and 3b; 352B.29; 353.83; 353.84; 353.85; 354.146,
subdivisions 1 and 3; 354.33, subdivisions 5 and 6; 354.39; 354.55, subdivisions 13, 16,
and 19; 354.58; 354A.35, subdivision 2a; 356.405; 356.49, subdivision 2; and 424A.03,
subdivision 3,
new text end new text begin are repealed.
new text end

Sec. 66. new text beginEFFECTIVE DATE.
new text end

new text begin Unless otherwise specified, this article is effective July 1, 2015.
new text end

ARTICLE 14

PERA-MERF MERGER PROVISIONS

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 beginisdeleted text end new text beginwas new text endtransferred to and employed by the county under the provisions of section
256D.20 and who deleted text beginisdeleted text end new text beginwas new text enda contributing member of a retirement system organized under
the provisions of Minnesota Statutes 2008, chapter 422A, is a member of the deleted text beginMERF
division of the
deleted text end Public Employees Retirement Association and is entitled to all of the
applicable benefits conferred by and new text beginis new text endsubject 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 begin353.50deleted text endnew text begin 353.27new text end, subdivision deleted text begin7deleted text endnew text begin 3cnew 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 begin353.50deleted text endnew text begin 353.27new text end, subdivision deleted text begin7deleted text endnew text begin 3cnew 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 beginMERF division of thedeleted text end general employees
retirement plan, public employees include employees who were members of the former
Minneapolis Employees Retirement Fund on June 29, 2010deleted 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 beginthe 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 begindivisiondeleted text end.

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

Sec. 5.

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 associationdeleted 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 fundsdeleted text begin, including the MERF divisiondeleted text end. Payments
out of the fundsdeleted 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. 6.

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 associationdeleted text begin, including the MERF division,
deleted text endas 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 Associationdeleted text begin, including the MERF divisiondeleted text end.

Sec. 7.

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 beginand by Minnesota Statutes 2008, chapter 422A, new text endin the amounts
and at such time provided herein, including the expenses of administering the general
employees retirement plan and fund.

Sec. 8.

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 beginwithout the inclusion ofdeleted text end new text beginincluding
new text endthe contributions deleted text beginto, the funded condition of, or the actuarial funding requirements of the
MERF division
deleted text endnew 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. 9.

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, through December 31, 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) For calendar years 2015 and 2016, the employer supplemental contribution is
the employing unit's share of $31,000,000. For calendar years 2017 through 2031, the
employer supplemental contribution is the employing unit's share of $21,000,000.
new text end

new text begin (e) Each employing unit's share under paragraph (d) is the amount determined from
an allocation 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.
new text end

new text begin (f) The employer supplemental contribution amount under paragraph (d) 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 under paragraph (d) 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

new text begin (g) The employer supplemental contribution under paragraph (d) terminates on
December 31, 2031.
new text end

Sec. 10.

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 beginthe MERF divisiondeleted text endnew 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. 11.

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 begingeneral
employees plan of the Public Employees Retirement Association who were former
members of
new text endMERF deleted text begindivisiondeleted text end.

Sec. 12.

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


Subd. 2.

Rights of deferred annuitant.

new text begin(a) new text endThe entitlement of a deferred annuitant
or other former member of the general employees retirement plan of the Public Employees
Retirement Association, deleted text beginthe 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. 13.

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 beginis payable from the MERF divisiondeleted 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. 14.

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


Subd. 6.

Benefitsnew text begin for former MERF division membersnew 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 beginMinneapolis Employees Retirement Funddeleted text end members
deleted text beginwith that status as of June 30, 2010deleted text endnew text begin of the former MERF divisionnew 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 forcenew text begin and are payable from the general employees retirement plannew text end.

(b) Benefits; benefit eligibility for deleted text beginJune 30, 2010,deleted text end active members. Persons who
were active members deleted text beginofdeleted text end new text begincovered by new text endthe former deleted text beginMinneapolis Employees Retirement
Fund
deleted text end new text beginMERF division new text endon deleted text beginJune 30, 2010deleted text endnew text begin December 31, 2014new 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 beginthe normal
new text endretirement 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 begin2010deleted text endnew text begin 2014new text end, annuities and
benefits deleted text beginfromdeleted text end new text beginfor former members of new text endthe new text beginformer new text endMERF division are eligible for annual
automatic postretirement adjustments solely under new text beginthe applicable portions of new text endsection
356.415.

Sec. 15.

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


353.505 STATE CONTRIBUTIONS; new text beginFORMER new text endMERF DIVISION.

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

new text begin (a) On September 15, 2015, and September 15, 2016, the state shall pay to the
general employees retirement plan of the Public Employees Retirement Association, with
respect to the former MERF division, $6,000,000. By September 15 of each year after
2016, the state shall pay to the general employees retirement plan of the Public Employees
Retirement Association, with respect to the former MERF division, $16,000,000.
new text end

deleted text begin (e)deleted text end new text begin(b) new text endState contributions under this section end on September 15, 2031deleted text begin, or
on
deleted text endnew text begin.new text end deleted text beginSeptember 1 following the first date on which the current assets of the MERF
division of the Public Employees Retirement Association
deleted text enddeleted text beginequal or exceed the actuarial
accrued liability of the MERF division of the Public Employees Retirement Association,
whichever occurs earlier.
deleted text end

Sec. 16.

Minnesota Statutes 2014, section 355.01, subdivision 3j, is amended to read:


Subd. 3j.

Public employee.

"Public employee" means an officer or an employee of
a local governmental subdivision of the state who performs services in a position covered
by the Public Employees Retirement Association established under chapter 353.new text begin The term
does not include any person who was a member of the former Minneapolis Employees
Retirement Fund on June 29, 2010, while the person is employed in a position that was
transferred to the Public Employees Retirement Association.
new text end

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
Associationdeleted text begin, including the MERF divisiondeleted 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 beginthe 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 beginMERF 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), new text beginor new text end(j), deleted text beginor (k),deleted text end 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 endFor 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 endFor 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 endFor 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 endFor 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 endFor 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 endFor 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 endFor 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 endFor 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 353deleted 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 353deleted 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 353deleted 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 353deleted 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 353deleted 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 353deleted 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 353deleted 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 353deleted 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 353deleted 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 deleted text beginor the MERF division of the Public Employees
Retirement Association
deleted text end 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 beginon behalf
of employees who make an election under clause (2)
new text endto the general employees retirement
plan of the Public Employees Retirement Association or the employer contribution under
section deleted text begin353.50deleted text endnew text begin 353.27new text end, subdivision deleted text begin7deleted text endnew text begin 3cnew text end, paragraphs (c) and (d), to the deleted text beginMERF division
deleted text endnew text begingeneral employees retirement fund new text endof the Public Employees Retirement Association deleted text beginon
behalf of employees who make an election under clause (2)
deleted text endnew 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 beginMERF 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.
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Sec. 31. new text beginEFFECTIVE DATE.
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new text begin Unless otherwise specified, this article is effective the day following final enactment.
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