Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

SF 1398

as introduced - 89th Legislature (2015 - 2016) Posted on 04/21/2015 01:33pm

KEY: stricken = removed, old language.
underscored = added, new language.
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 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 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 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 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 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 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 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
8.34 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 10.35 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 11.35 11.36 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 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 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 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 15.34 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 16.34
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 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 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 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
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 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 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 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
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 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 31.36 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
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 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
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 35.36 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 36.36 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 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 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 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 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 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 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 45.1 45.2 45.3
45.4 45.5 45.6 45.7 45.8 45.9
45.10 45.11

A bill for an act
relating to retirement; statewide and major local public retirement plans;
eliminating various outdated or obsolete allowable service credit provisions;
eliminating other outdated date references in pension provisions; clarifying
or eliminating other ambiguous retirement provisions; correcting various
pension-related headnotes; amending Minnesota Statutes 2014, sections 352.01,
subdivisions 11, 15; 352.021, subdivisions 1, 3, 4; 352.029, subdivision 2;
352.22, subdivisions 8, 10; 352.23; 352.75, subdivision 2; 352.87, subdivision 8;
352B.011, subdivision 3; 352B.07; 352B.25; 353.01, subdivisions 2b, 6, 16, 17;
353.017, subdivision 2; 353.46, subdivision 2; 353.64, subdivisions 7a, 8, 9, 10;
353D.071, subdivision 2; 354.05, subdivisions 10, 13, 25; 354.07, subdivision
5; 354.092, subdivision 4; 354.42, subdivision 1a; 354.44, subdivisions 8,
9; 354.45, subdivision 1a; 354.48, subdivision 3; 354.51, subdivisions 1, 5;
354.52, subdivision 4c; 354.55, subdivision 10; 354A.011, subdivision 6;
354A.092; 354A.12, subdivision 3c; 354A.31, subdivision 7; 354A.42; 356.215,
subdivisions 1, 18; 356.245; 356.40; 356.405; 356.407, subdivision 1; 356.415,
subdivisions 1, 1a, 1d, 1e, 1f; 356.431; 356.62; 356B.10, subdivisions 2, 3, 4, 5,
6, 7; 423A.02, subdivision 1b; 424A.001, subdivision 10; repealing Minnesota
Statutes 2014, sections 352.271; 352.75, subdivisions 1, 3, 4, 5, 6; 352.76; 352.91,
subdivisions 3a, 3b; 352B.29; 353.83; 353.84; 353.85; 354.146, subdivisions 1, 3;
354.33, subdivisions 5, 6; 354.39; 354.55, subdivisions 13, 16, 17, 18, 19; 354.58;
354A.35, subdivision 2a; 356.42; 356.49, subdivision 2; 424A.03, subdivision 3.

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

ARTICLE 1

OUTDATED ALLOWABLE SERVICE DATE REFERENCES

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 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. 3.

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. 4.

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. 5.

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, 354.42 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. 6.

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. 7. new text beginEFFECTIVE DATE.
new text end

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

ARTICLE 2

OUTDATED POSTRETIREMENT ADJUSTMENT DATE REFERENCES

Section 1.

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. 2.

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 end
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 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. 3.

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. 4.

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 end
Increases 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. 5.

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. 6. new text beginEFFECTIVE DATE.
new text end

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

ARTICLE 3

OTHER OUTDATED PENSION DATE REFERENCES

Section 1.

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. 2.

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. 3.

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. 4.

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. 5.

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 todeleted text end
new 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. 6.

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
ifnew text begin anew text end 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. 7.

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. 8.

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. 9.

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. 10.

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 beginbedeleted text end
eligible for election to the board of trustees.

Sec. 11.

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. 12.

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 todeleted text end
new text beginmust new text endbe made to the surviving spouse under paragraph (c), clause (1).

Sec. 13.

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. 14.

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. 15.

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. 16.

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. 17.

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. 18.

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 end
are 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. 19.

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. 20.

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. 21.

Minnesota Statutes 2014, section 354A.42, is amended to read:


354A.42 ST. PAUL TEACHER INCREASE LIMIT.

Notwithstanding any law to the contrary, the St. Paul Teachers Retirement Fund
Association may not pay a postretirement adjustment of more than five percent in any
yeardeleted text begin, effective July 1, 2010deleted text end.

Sec. 22.

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 new text beginas of the last day of the legislative session
next occurring
new text endafter 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. 23.

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. 24.

Minnesota Statutes 2014, section 356.405, is amended to read:


356.405 COMBINED PAYMENT OF RETIREMENT ANNUITIES.

(a) The Public Employees Retirement Association and the Minnesota State
Retirement System are permitted to combine payments new text beginfrom the retirement plans that the
retirement systems administer
new text endto retirees if one of the payments is less than $250 per month
and if the individual new text begineither new text endelects the same joint and survivor annuity form from both
systems, or if the individual elects deleted text beginstraightdeleted text end new text beginsingle new text endlife annuities from both systems. The total
payment must be equal to the new text begintotal new text endamount that is payable if payments were kept separate.

(b) Each plan must calculate the benefit amounts under the laws governing the
plan and the new text begincalculated new text endrequired reserves must be deleted text beginpaiddeleted text end new text begintransferred new text endto the plan making the
combined payment from the plan where the service was earned.

(c) The plan making the payment deleted text beginwould bedeleted text end new text beginis new text endresponsible for issuing one payment
and making address changes, tax withholding changes, and other administrative functions
needed to process the payment.

Sec. 25.

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. 26.

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. 27.

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 salary deleted text beginpayable after December 31, 1982deleted text end.
deleted text beginIf 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
deleted text end 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 end
The 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. 28.

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 associationsnew text begin
under 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. 29.

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. 30. new text beginEFFECTIVE DATE.
new text end

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

ARTICLE 4

APPROVED ACTUARY DEFINITION CONFORMITY

Section 1.

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. 2.

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. 3.

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. 4.

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 begin
meets the definition in section 356.215, subdivision 1, paragraph (c)
new text end.

Sec. 5.

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. 6. new text beginEFFECTIVE DATE.
new text end

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

ARTICLE 5

OTHER CORRECTIONS AND CLARIFICATIONS

Section 1.

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. 2.

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. 3.

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. 4.

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. 5.

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 maynew 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. 6.

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. 7.

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. 8.

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. 9.

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. 10.

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. 11.

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. 12.

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. 13.

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 beginwilldeleted text end
new text beginmust new text endbe determined by linear interpolation between the early retirement factors applicable
for normal retirement ages 65 and 66.

Sec. 14.

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. 15.

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. 16.

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. 17.

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 new text beginrevenue new text endbonds 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. 18.

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 bondsnew text begin used to finance the
pension building
new text end.

new text begin (b)new text end The bonds and the interest on them must be paid solely from and secured by
all 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. 19.

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. 20.

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 budget
deleted text end constitute an
enforceable contract of the state and new text beginby them 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. 21. 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. 22. 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, 17, 18, and 19; 354.58; 354A.35, subdivision 2a; 356.42; 356.49, subdivision 2;
and 424A.03, subdivision 3,
new text end new text begin are repealed.
new text end

Sec. 23. new text beginEFFECTIVE DATE.
new text end

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