SF 1515

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; providing for actuarial 
  1.3             funding of the legislators retirement plan and the 
  1.4             elective state officers retirement plan; amending 
  1.5             Minnesota Statutes 1996, sections 3A.01, by adding a 
  1.6             subdivision; 3A.03; 3A.04, subdivisions 3 and 4; 
  1.7             3A.11, subdivision 1; 352C.021, by adding a 
  1.8             subdivision; 352C.031, subdivision 6; 352C.04, 
  1.9             subdivision 3; 352C.051, subdivision 3; 352C.09; 
  1.10            352C.10; 490.121, subdivisions 5, 6, and 20; 490.122; 
  1.11            490.123; and 490.124, subdivisions 1, 6, and 12; 
  1.12            proposing coding for new law in Minnesota Statutes, 
  1.13            chapter 352C; repealing Minnesota Statutes 1996, 
  1.14            sections 3A.02, subdivision 2; 3A.07; 3A.09; 352C.091, 
  1.15            subdivisions 2 and 3; and 490.123, subdivision 1c. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statute 1996, section 3A.01, is 
  1.18  amended by adding a subdivision to read: 
  1.19     Subd. 9.  [RETIREMENT FUND.] "Retirement fund" means the 
  1.20  joint elected state officials retirement plan created under 
  1.21  section 490.123. 
  1.22     Sec. 2.  Minnesota Statutes 1996, section 3A.03, is amended 
  1.23  to read: 
  1.24     3A.03 [CONTRIBUTIONS.] 
  1.25     Subdivision 1.  [MEMBER CONTRIBUTION; PERCENTAGE.] (a) 
  1.26  Every member of the legislature shall contribute nine percent of 
  1.27  total salary, by payroll deduction, to be paid into the state 
  1.28  treasury and deposited in the general retirement fund.  
  1.29     (b) It shall be the duty of the director to record the 
  1.30  periodic contributions of each member of the legislature and 
  2.1   credit such contribution to the member's account. 
  2.2      Subd. 1a.  [EMPLOYER CONTRIBUTION.] The secretary of the 
  2.3   senate, with respect to members of the Minnesota senate, and the 
  2.4   chief clerk of the house of representatives, with respect to 
  2.5   members of the Minnesota house of representatives, shall make a 
  2.6   matching employer contribution in an amount equal to nine 
  2.7   percent of salary.  The matching employer contribution must be 
  2.8   made at the same time that member contributions are deducted.  
  2.9   The matching employer contribution must be paid into and 
  2.10  deposited in the retirement fund. 
  2.11     Subd. 2.  [REFUND.] (1) (a) Any person who has made member 
  2.12  contributions pursuant to subdivision 1 who is no longer a 
  2.13  member of the legislature is entitled to receive upon 
  2.14  application to the director a refund of all contributions 
  2.15  credited to the member's account with interest at an annual rate 
  2.16  of six percent compounded annually.  The refund is payable from 
  2.17  the retirement fund.  
  2.18     (2) (b) The refund of contributions as provided in clause 
  2.19  (1) paragraph (a) terminates all rights of a former member of 
  2.20  the legislature or survivors of the former member under this 
  2.21  chapter.  Should the former member of the legislature again be a 
  2.22  member of the legislature after having taken a refund as 
  2.23  provided above, the member shall be considered a new member.  
  2.24  However, a new member may reinstate the rights and credit for 
  2.25  service forfeited, provided the new member repays all refunds 
  2.26  taken plus interest at an annual rate of 8.5 percent compounded 
  2.27  annually.  Refund repayments must be deposited in the retirement 
  2.28  fund.  
  2.29     (3) (c) No person shall be required to apply for or accept 
  2.30  a refund. 
  2.31     Sec. 3.  Minnesota Statutes 1996, section 3A.04, 
  2.32  subdivision 3, is amended to read: 
  2.33     Subd. 3.  [PAYMENT.] The surviving spouse's and dependent 
  2.34  children's survivor benefits payable under this section shall be 
  2.35  paid by the director monthly in the same manner as retirement 
  2.36  allowances are authorized to be paid by this chapter from the 
  3.1   retirement fund.  
  3.2      Sec. 4.  Minnesota Statutes 1996, section 3A.04, 
  3.3   subdivision 4, is amended to read: 
  3.4      Subd. 4.  [DEATH REFUNDS.] Upon the death of a member of 
  3.5   the legislature or former legislator who was not receiving a 
  3.6   retirement allowance, without either a surviving spouse or 
  3.7   dependent children, the last designated beneficiary named on a 
  3.8   form filed with the director before the death of the legislator, 
  3.9   or if no designation is filed, the estate of the member or 
  3.10  former legislator, upon application, shall be entitled to a 
  3.11  refund plus interest as provided in section 3A.03, subdivision 
  3.12  2, clause (2) paragraph (b).  The death refund is payable from 
  3.13  the retirement fund. 
  3.14     Sec. 5.  Minnesota Statutes 1996, section 3A.11, 
  3.15  subdivision 1, is amended to read: 
  3.16     Subdivision 1.  [TRANSFER OF RESERVES.] The reserves 
  3.17  necessary to fund the retirement allowance granted pursuant to 
  3.18  section 3A.02 to a former legislator upon retirement, including 
  3.19  any postretirement survivor benefit payable, shall be 
  3.20  appropriated transferred from the general retirement fund to the 
  3.21  director and shall be transferred by the director to the 
  3.22  Minnesota postretirement investment fund as of the last business 
  3.23  day of the month in which the retirement allowance begins to 
  3.24  accrue in accord with section 11A.18.  The amount of the 
  3.25  transfer shall be determined by or determined under a procedure 
  3.26  specified by the actuary retained by the legislative commission 
  3.27  on pensions and retirement, in accord with the appropriate 
  3.28  mortality table adopted by the board of directors of the 
  3.29  Minnesota state retirement system based on the experience of the 
  3.30  plan as recommended by the commission-retained actuary and the 
  3.31  interest rate assumption specified in section 356.215, 
  3.32  subdivision 4d. 
  3.33     Sec. 6.  Minnesota Statutes 1996, section 352C.021, is 
  3.34  amended by adding a subdivision to read: 
  3.35     Subd. 9.  [RETIREMENT FUND.] "Retirement fund" means the 
  3.36  joint elected state officials retirement plan created under 
  4.1   section 490.123. 
  4.2      Sec. 7.  Minnesota Statutes 1996, section 352C.031, 
  4.3   subdivision 6, is amended to read: 
  4.4      Subd. 6.  [PAYMENT OF RETIREMENT ALLOWANCES.] Retirement 
  4.5   allowances payable pursuant to this section shall be paid from 
  4.6   the retirement fund monthly by the executive director of the 
  4.7   Minnesota state retirement system.  
  4.8      Sec. 8.  Minnesota Statutes 1996, section 352C.04, 
  4.9   subdivision 3, is amended to read: 
  4.10     Subd. 3.  [PAYMENT INTERVAL.] Spouse's and dependent 
  4.11  children's survivor benefits, payable under this section, shall 
  4.12  be paid from the retirement fund monthly by the executive 
  4.13  director of the Minnesota state retirement system. 
  4.14     Sec. 9.  Minnesota Statutes 1996, section 352C.051, 
  4.15  subdivision 3, is amended to read: 
  4.16     Subd. 3.  [REFUND REPAYMENT.] Any former constitutional 
  4.17  officer who has received a refund as provided in section 
  4.18  352C.09, subdivision 2, who is a currently contributing member 
  4.19  of a retirement fund specified or enumerated in subdivision 1 or 
  4.20  2, may repay the refund to the elective state officers 
  4.21  retirement plan, with interest at an annual rate of 8.5 percent 
  4.22  compounded annually.  The refund repayment must be deposited in 
  4.23  the retirement fund. 
  4.24     Sec. 10.  Minnesota Statutes 1996, section 352C.09, is 
  4.25  amended to read: 
  4.26     352C.09 [CONTRIBUTIONS.] 
  4.27     Subdivision 1.  [MEMBER CONTRIBUTION RATE.] Every 
  4.28  constitutional officer shall contribute nine percent of total 
  4.29  salary by payroll deduction to be paid into the state treasury 
  4.30  and deposited in the general retirement fund.  In case of 
  4.31  retirement, any unpaid deductions shall be deducted from any 
  4.32  retirement allowance that becomes payable.  All deductions and 
  4.33  payments, if any, in lieu of deductions are to be paid into the 
  4.34  state treasury and deposited in the general retirement fund.  It 
  4.35  shall be the duty of the director to record the contributions of 
  4.36  each constitutional officer and credit such contribution to such 
  5.1   officer's account. 
  5.2      Subd. 1a.  [EMPLOYER CONTRIBUTION.] The office of each 
  5.3   constitutional officer shall make a matching employer 
  5.4   contribution in an amount equal to nine percent of salary.  The 
  5.5   matching employer contribution must be made at the same time 
  5.6   that the member contribution is deducted.  The matching employer 
  5.7   contribution must be paid into and deposited in the retirement 
  5.8   fund. 
  5.9      Subd. 2.  [REFUND; REFUND REPAYMENT.] (1) (a) Any person 
  5.10  who has made contributions pursuant to subdivision 1 who is no 
  5.11  longer a constitutional officer is entitled to receive, upon 
  5.12  application to the director, from the retirement fund, a refund 
  5.13  of all contributions credited to the individual's account with 
  5.14  interest at the rate of six percent per annum compounded 
  5.15  annually.  
  5.16     (2) (b) The refund of contributions as provided in clause 
  5.17  (1) above paragraph (a) terminates all rights of a former 
  5.18  constitutional officer or commissioner or survivors thereof 
  5.19  under the provisions of this chapter.  Should the former 
  5.20  constitutional officer or commissioner again hold such office 
  5.21  after having taken a refund as provided above, the former 
  5.22  officer or commissioner shall be considered a new member and may 
  5.23  reinstate the rights and credit for service forfeited 
  5.24  provided that all refunds previously taken are repaid to the 
  5.25  retirement fund with interest at an annual rate of 8.5 percent 
  5.26  compounded annually. 
  5.27     (3) (c) No person shall be required to apply for or accept 
  5.28  a refund. 
  5.29     (4) (d) The provisions of section 352.15 shall apply to the 
  5.30  elective state officers retirement plan, chapter 352C. 
  5.31     Subd. 3.  [DEATH REFUND.] If a constitutional officer who 
  5.32  has not received other benefits under this chapter dies and 
  5.33  there are no survivor benefits payable under this chapter, a 
  5.34  refund plus interest as provided in subdivision 2, clause 
  5.35  (1) paragraph (a), is payable from the retirement fund to the 
  5.36  last designated beneficiary named on a form filed with the 
  6.1   director before the death of the constitutional officer, or.  If 
  6.2   no designation is on file, the refund is payable from the 
  6.3   retirement fund to the estate of the deceased constitutional 
  6.4   officer. 
  6.5      Sec. 11.  Minnesota Statutes 1996, section 352C.10, is 
  6.6   amended to read: 
  6.7      352C.10 [BENEFIT ADJUSTMENTS.] 
  6.8      Retirement allowances payable to retired constitutional 
  6.9   officers pursuant to section 352C.031 and Surviving spouse 
  6.10  benefits payable pursuant to section 352C.04, shall be adjusted 
  6.11  in the same manner, at the same times, and in the same amounts 
  6.12  as are benefits payable from the Minnesota post retirement 
  6.13  investment fund to retirees of a participating public pension 
  6.14  fund the general state employees retirement plan of the 
  6.15  Minnesota state retirement system.  
  6.16     Sec. 12.  [352C.11] [PARTICIPATION IN MINNESOTA 
  6.17  POSTRETIREMENT INVESTMENT FUND.] 
  6.18     Subdivision 1.  [TRANSFER OF RESERVES.] The reserves 
  6.19  necessary to fund the retirement allowance granted under section 
  6.20  352C.031 to a former constitutional officer upon retirement, 
  6.21  including any automatic postretirement survivor benefit, must be 
  6.22  transferred from the retirement fund by the director to the 
  6.23  Minnesota postretirement investment fund as of the last business 
  6.24  day of the month in which the retirement allowance begins to 
  6.25  accrue as provided in section 11A.18.  The transfer amount must 
  6.26  be determined by a procedure specified by the actuary retained 
  6.27  by the legislative commission on pensions and retirement.  The 
  6.28  transfer amount must be calculated in accordance with the 
  6.29  applicable mortality table adopted by the board of directors of 
  6.30  the Minnesota state retirement system under section 356.215, 
  6.31  subdivision 7, based on the experience of the plan as 
  6.32  recommended by the actuary retained by the commission, and the 
  6.33  interest rate assumption specified in section 356.215, 
  6.34  subdivision 4d. 
  6.35     Subd. 2.  [POSTRETIREMENT ADJUSTMENTS.] Retirement 
  6.36  allowances payable to former constitutional officers must be 
  7.1   adjusted as provided in section 11A.18. 
  7.2      Subd. 3.  [AUTOMATIC ADJUSTMENTS; 
  7.3   EXCEPTION.] Postretirement adjustments in retirement allowances 
  7.4   as provided in this section must be made automatically unless 
  7.5   the intended recipient files a written notice with the director 
  7.6   requesting that the adjustment not be made.  
  7.7      Sec. 13.  Minnesota Statutes 1996, section 490.121, 
  7.8   subdivision 5, is amended to read: 
  7.9      Subd. 5.  [JUDGES' RETIREMENT FUND.] "Judges' "Retirement 
  7.10  fund", "retirement fund" or "fund" means that the joint elected 
  7.11  state officials retirement fund created by section 490.123. 
  7.12     Sec. 14.  Minnesota Statutes 1996, section 490.121, 
  7.13  subdivision 6, is amended to read: 
  7.14     Subd. 6.  [ANNUITY.] "Annuity" means the payments made each 
  7.15  year to an annuitant from the judges' retirement fund, pursuant 
  7.16  to the provisions of sections 490.121 to 490.132. 
  7.17     Sec. 15.  Minnesota Statutes 1996, section 490.121, 
  7.18  subdivision 20, is amended to read: 
  7.19     Subd. 20.  [ACTUARIAL EQUIVALENT.] "Actuarial equivalent" 
  7.20  means the condition of one annuity or benefit having an equal 
  7.21  actuarial present value as another annuity or benefit, 
  7.22  determined as of a given date with each actuarial present value 
  7.23  based on the appropriate mortality table adopted by the board of 
  7.24  trustees directors under section 356.215, subdivision 7, based 
  7.25  on the experience of the fund retirement plan as recommended by 
  7.26  the commission-retained actuary and using the applicable 
  7.27  preretirement or postretirement interest rate assumption 
  7.28  specified in section 356.215, subdivision 4d. 
  7.29     Sec. 16.  Minnesota Statutes 1996, section 490.122, is 
  7.30  amended to read: 
  7.31     490.122 [ADMINISTRATION OF JUDGES' RETIREMENT.] 
  7.32     The policy-making, management, and administrative functions 
  7.33  governing the operation of the judges' retirement fund plan and 
  7.34  the administration of sections 490.121 to 490.132 are vested in 
  7.35  the board of directors and executive director of the Minnesota 
  7.36  state retirement system with such duties, authority, and 
  8.1   responsibility as are provided in chapter 352.  Except as 
  8.2   otherwise specified, no provision of chapter 352 applies to the 
  8.3   judges' retirement fund plan or any judge.  Fiduciary activities 
  8.4   of the uniform retirement and survivors' annuities for the 
  8.5   judges plan must be undertaken in a manner consistent with 
  8.6   chapter 356A. 
  8.7      Sec. 17.  Minnesota Statutes 1996, section 490.123, is 
  8.8   amended to read: 
  8.9      490.123 [JUDGES' JOINT ELECTED STATE OFFICIALS RETIREMENT 
  8.10  FUND.] 
  8.11     Subdivision 1.  [FUND CREATION; REVENUE AND AUTHORIZED 
  8.12  DISBURSEMENTS.] (a) The "judges' "joint elected state officials 
  8.13  retirement fund" must be credited with all contributions, all 
  8.14  interest, and all other income authorized by law. 
  8.15     (b) From this fund there are appropriated the payments 
  8.16  authorized by chapter 3A or 352C, or sections 490.121 to 
  8.17  490.132, in the amounts and at the times provided, including the 
  8.18  necessary and reasonable expenses of the Minnesota state 
  8.19  retirement system in administering the fund applicable 
  8.20  retirement plans and the required transfers to the Minnesota 
  8.21  postretirement investment fund.  
  8.22     (c)  The legislators retirement plan, the elective state 
  8.23  officers retirement plan, and the judges retirement plan each 
  8.24  own an undivided participation in the assets of the joint 
  8.25  elected state officials retirement fund.  As of any date, the 
  8.26  total claim of one of the plans is equal to the ratio of the 
  8.27  units credited to that plan to the total number of outstanding 
  8.28  units credited to all three plans.  The units in the retirement 
  8.29  plan must be governed as provided in section 11A.14, 
  8.30  subdivisions 7 to 14. 
  8.31     Subd. 1a.  [JUDGES RETIREMENT PLAN; MEMBER CONTRIBUTION 
  8.32  RATES.] (a) A judge who is covered by the federal old age, 
  8.33  survivors, disability, and health insurance program shall 
  8.34  contribute to the retirement fund from each salary payment a sum 
  8.35  equal to 6.27 percent of salary.  
  8.36     (b) A judge not so covered shall contribute to 
  9.1   the retirement fund from each salary payment a sum equal to 8.15 
  9.2   percent of salary. 
  9.3      (c) The contribution under this subdivision is payable must 
  9.4   be made by salary deduction. 
  9.5      (d)  Member contributions must be deposited in the 
  9.6   retirement fund. 
  9.7      Subd. 1b.  [JUDGES RETIREMENT PLAN; EMPLOYER CONTRIBUTION 
  9.8   RATE.] (a) The employer contribution rate on behalf of a judge 
  9.9   is 22 percent of salary. 
  9.10     (b) The employer contribution must be paid by the state 
  9.11  court administrator and is payable at the same time as member 
  9.12  contributions under subdivision 1a are remitted. 
  9.13     (c) Employer contributions must be deposited in the 
  9.14  retirement fund. 
  9.15     Subd. 1c.  [ADDITIONAL EMPLOYER CONTRIBUTION.] In the event 
  9.16  that the employer contribution under subdivision 1b and the 
  9.17  assets of the judges retirement fund are insufficient to meet 
  9.18  reserve transfers to the Minnesota postretirement investment 
  9.19  fund or payments of survivor benefits before July 1, 1993, the 
  9.20  necessary amount is appropriated from the general fund to the 
  9.21  executive director of the Minnesota state retirement system, 
  9.22  upon certification by the executive director to the commissioner 
  9.23  of finance. 
  9.24     Subd. 1d.  [JUDGES NOT PARTICIPATING IN POSTRETIREMENT 
  9.25  FUND.] For retired judges not participating in the 
  9.26  postretirement fund, as defined in section 11A.18, the amount 
  9.27  necessary to pay retirement benefits is appropriated from the 
  9.28  general fund to the executive director of the Minnesota state 
  9.29  retirement system.  The executive director shall certify to the 
  9.30  commissioner of finance the total amount required to pay such 
  9.31  benefits each year on or before July 15.  The certification 
  9.32  shall include the number of anticipated benefit recipients, 
  9.33  including survivors and designated beneficiaries, the total 
  9.34  estimated requirements for each recipient group, and the total 
  9.35  amount for all groups.  The commissioner of finance shall, after 
  9.36  any necessary reconciling adjustments or corrections, transfer 
 10.1   the total required amount to a separate account within the 
 10.2   judges' retirement fund.  Any unencumbered balance in the 
 10.3   separate account at the end of the first year does not cancel, 
 10.4   but is available for the second year.  Any unencumbered balance 
 10.5   remaining in the separate account on June 30 of the second year 
 10.6   of a biennium cancels and shall be credited to the general fund. 
 10.7      Subd. 2.  [TREASURER.] The state treasurer shall be ex 
 10.8   officio treasurer of the judges' retirement fund and the 
 10.9   treasurer's general bond to the state shall be so conditioned as 
 10.10  to cover all liability for acting as treasurer of this fund.  
 10.11  All moneys received by the treasurer pursuant to sections 3A.03, 
 10.12  352C.09, and this section shall be set aside in the state 
 10.13  treasury to the credit of the judges' retirement fund.  The 
 10.14  treasurer shall transmit monthly to the executive director 
 10.15  described in section 352.03, subdivision 5, a detailed statement 
 10.16  of all amounts so received and credited to the fund.  The 
 10.17  treasurer shall pay out the fund only on warrants issued by the 
 10.18  commissioner of finance, upon vouchers signed by said the 
 10.19  executive director; provided that of the Minnesota state 
 10.20  retirement system.  Vouchers for investment may be signed by the 
 10.21  secretary executive director of the state board of investment.  
 10.22     Subd. 3.  [INVESTMENT.] The director referred to in 
 10.23  subdivision 2 of the Minnesota state retirement system shall, 
 10.24  from time to time, certify to the state board of investment such 
 10.25  portions of the judges' retirement fund as in the director's 
 10.26  judgment may not be required for immediate use.  Assets from the 
 10.27  judges' retirement fund shall be transferred to the Minnesota 
 10.28  postretirement investment fund for retirement and disability 
 10.29  benefits as provided in sections 11A.18 and 352.119.  The state 
 10.30  board of investment shall thereupon invest and reinvest sums so 
 10.31  transferred, or certified, in such securities as are duly 
 10.32  authorized legal investments for such purposes under section 
 10.33  11A.24.  
 10.34     Subd. 4.  [ADDITIONAL STATE CONTRIBUTION.] (a) If the 
 10.35  combined funding ratio of the retirement plans participating in 
 10.36  the joint elected state officials retirement fund is less than 
 11.1   100 percent as reported in the actuarial valuations of the three 
 11.2   retirement plans by the actuary retained by the legislative 
 11.3   commission on pensions and retirement, the commissioner of 
 11.4   finance shall make an additional state contribution for the 
 11.5   following calendar year. 
 11.6      (b)  The additional state contribution is the total general 
 11.7   fund appropriation under Laws 1995, chapter 254, article 1, 
 11.8   section 29, paragraphs (a) and (b), multiplied by the factor 
 11.9   1.076.  One-twelfth of the total additional state contribution 
 11.10  amount as determined is payable monthly during the calendar year.
 11.11     (c)  The additional state contribution must be deposited 
 11.12  monthly in the joint elected state officials retirement fund. 
 11.13     Sec. 18.  Minnesota Statutes 1996, section 490.124, 
 11.14  subdivision 1, is amended to read: 
 11.15     Subdivision 1.  [BASIC RETIREMENT ANNUITY.] Except as 
 11.16  qualified hereinafter from and after mandatory retirement date, 
 11.17  normal retirement date, early retirement date, or one year from 
 11.18  the disability retirement date, as the case may be, a retirement 
 11.19  annuity shall be payable to a retiring judge from the judges' 
 11.20  retirement fund in an amount equal to:  (1) 2-1/2 percent of the 
 11.21  judge's final average compensation multiplied by the number of 
 11.22  years and fractions of years of allowable service rendered prior 
 11.23  to July 1, 1980; plus (2) three percent of the judge's final 
 11.24  average compensation multiplied by the number of years and 
 11.25  fractions of years of allowable service rendered after June 30, 
 11.26  1980; provided that the annuity shall not exceed 65 percent of 
 11.27  the judge's annual salary for the 12 months immediately 
 11.28  preceding retirement.  
 11.29     Sec. 19.  Minnesota Statutes 1996, section 490.124, 
 11.30  subdivision 6, is amended to read: 
 11.31     Subd. 6.  [PART-TIME JUDGES.] Notwithstanding other 
 11.32  provisions of this section, except as provided herein, service 
 11.33  by a judge who was not paid an annual salary or who served in a 
 11.34  jurisdiction in which the judge was entitled to practice law 
 11.35  while serving as a judge shall be credited only at one-half of 
 11.36  the regular rate.  Any period of part time uncredited judicial 
 12.1   service may be credited service for the purposes of sections 
 12.2   490.121 to 490.132 only if: 
 12.3      (a) The judge or the judge's employer pays to the judges' 
 12.4   retirement fund a sum equal to the rate of employee tax 
 12.5   specified in the Federal Insurance Contributions Act during the 
 12.6   period of part time service applied to one-half of the average 
 12.7   salary earned during the period of part-time service, plus 
 12.8   accrued interest thereon at the rate of five percent per year 
 12.9   compounded annually from the period of service so credited to 
 12.10  the date payment is made; 
 12.11     (b) The payment is made in not more than 36 monthly 
 12.12  installments; and 
 12.13     (c) The judge shall elect to make the payment and shall 
 12.14  commence doing so within 90 days after the commencement of the 
 12.15  judge's first term in office. 
 12.16     Sec. 20.  Minnesota Statutes 1996, section 490.124, 
 12.17  subdivision 12, is amended to read: 
 12.18     Subd. 12.  [REFUND.] (a) Any person who ceases to be a 
 12.19  judge but who does not qualify for a retirement annuity or other 
 12.20  benefit under section 490.121 shall be entitled to a refund in 
 12.21  an amount equal to all the person's contributions to the judges' 
 12.22  retirement fund plus interest computed to the first day of the 
 12.23  month in which the refund is processed based on fiscal year 
 12.24  balances at an annual rate of five percent compounded annually.  
 12.25     (b) A refund of contributions under paragraph (a) 
 12.26  terminates all service credits and all rights and benefits of 
 12.27  the judge and the judge's survivors.  A person who becomes a 
 12.28  judge again after taking a refund under paragraph (a) may 
 12.29  reinstate previously terminated service credits, rights, and 
 12.30  benefits by repaying all refunds to the retirement fund.  A 
 12.31  repayment must include interest at an annual rate of 8.5 percent 
 12.32  compounded annually. 
 12.33     Sec. 21.  [REPEALER.] 
 12.34     Minnesota Statutes 1996, sections 3A.02, subdivision 2; 
 12.35  3A.07; 3A.09; 352C.091, subdivisions 2 and 3; and 490.123, 
 12.36  subdivision 1c, are repealed. 
 13.1      Sec. 22.  [EFFECTIVE DATE.] 
 13.2      Sections 1 to 21 are effective July 1, 1997.