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Capital IconMinnesota Legislature

SF 1712

2nd Engrossment - 92nd Legislature (2021 - 2022) Posted on 11/09/2021 03:29pm

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

Current Version - 2nd Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 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
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
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 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 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 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 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 9.34 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 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 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 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 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27
14.28
14.29 14.30
14.31 14.32 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21
16.22
16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 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
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 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 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 20.35 21.1 21.2 21.3 21.4 21.5 21.6
21.7
21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16
21.17
21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25
21.26
21.27 21.28 21.29 21.30 21.31 21.32 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 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
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
25.1
25.2 25.3
25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34
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 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 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22
29.23
29.24 29.25
29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 30.1 30.2 30.3 30.4 30.5 30.6
30.7
30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 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 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 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
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 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 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 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 40.36 40.37 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 41.36 41.37 41.38 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34 42.35 42.36 42.37 42.38 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 43.35 43.36 43.37 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34 44.35 44.36 44.37 44.38 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34 45.35 45.36 45.37 45.38 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 46.34 46.35 46.36 46.37 46.38 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 47.35 47.36 47.37 47.38 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30
48.31
49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33
50.1
50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31
50.32
51.1 51.2 51.3 51.4 51.5 51.6 51.7
51.8
51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16
51.17
51.18 51.19
51.20
51.21 51.22
51.23 51.24 51.25 51.26 51.27 51.28 51.29 52.1 52.2 52.3 52.4 52.5 52.6 52.7
52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18
52.19 52.20
52.21 52.22
52.23 52.24
52.25 52.26 52.27 52.28 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29
53.30
54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28
55.29
56.1 56.2 56.3
56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20
57.21
57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23
58.24
58.25 58.26
58.27 58.28 58.29 58.30 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16
59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29
59.30 59.31 59.32 60.1 60.2
60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15
61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8
62.9 62.10 62.11 62.12
62.13 62.14 62.15 62.16 62.17
62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25
62.26 62.27 62.28 62.29
63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12
63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25
63.26 63.27 63.28 63.29 63.30 63.31 64.1 64.2 64.3 64.4 64.5 64.6
64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25
64.26 64.27 64.28 64.29 64.30 64.31 64.32 65.1 65.2 65.3 65.4
65.5 65.6 65.7 65.8 65.9
65.10 65.11 65.12
65.13 65.14 65.15 65.16
65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17
66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10
67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 68.1 68.2 68.3
68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15
69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 70.1 70.2 70.3 70.4 70.5 70.6
70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14
70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23
70.24 70.25 70.26 70.27 70.28 70.29 70.30 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16
71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 72.1 72.2 72.3
72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27
72.28 72.29 72.30 72.31 72.32 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14
73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9
74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 74.33 74.34 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10
75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 75.33 76.1 76.2
76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 77.1 77.2 77.3 77.4 77.5 77.6
77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14
77.15 77.16 77.17 77.18 77.19 77.20 77.21
77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 78.1 78.2 78.3 78.4
78.5 78.6

A bill for an act
relating to retirement; temporarily extending the grandfather provision regarding
actuarial assumptions used to compute an annuity in the unclassified state
employees retirement plan; reducing the postretirement adjustment and eliminating
the triggers that would increase the postretirement adjustment upon attainment of
specified funding thresholds for the Judges Retirement Plan; revising eligibility
for H-1b visa employees under the Minnesota State Retirement System and the
Public Employees Retirement Association to comply with federal law and
permitting the purchase of prior service credit; extending the time period for service
credit for periods of military leave under the plans administered by the Public
Employees Retirement Association; making changes of an administrative nature
to the statutes applicable to the Public Employees Retirement Association and the
St. Paul Teachers Retirement Fund Association; permitting the allocation of fire
state aid between the Statewide Volunteer Firefighters Plan and municipalities;
delaying an increase in the employee contribution rates by one year for the St.
Paul Teachers Retirement Fund Association; making changes to the statutes
applicable to volunteer firefighter relief associations recommended by the State
Auditor's fire relief association working group; providing full vesting and
distribution of accounts for firefighters assigned to the Nowthen fire station and
revising applicable law to permit payment of fire state aid to Nowthen and midyear
participation in the Statewide Volunteer Firefighter Plan; revising the deadline for
bill drafting requests to commission staff from agencies and pension systems;
mandating work groups on pension benefits for 911 telecommunicators and
allocating firefighter supplemental state aid; increasing the benefit for a former
Department of Labor and Industry employee who retired in reliance on erroneous
benefit estimates; authorizing the transfer of service credit from the MSRS General
Plan to the Correctional Plan for a Department of Human Services employee;
making technical clarifications and corrections to retirement statutes; amending
Minnesota Statutes 2020, sections 352.01, subdivision 2b; 352D.06, subdivision
1; 353.01, subdivisions 2b, 16, 28; 353.014, subdivision 4; 353.0162; 353.27,
subdivision 12; 353.30, subdivisions 1a, 1b, 1c; 353.335; 353.34, subdivision 2;
353D.071, subdivisions 1, 2; 353E.02, subdivision 2; 354A.12, subdivision 1;
354A.31, subdivision 7; 356.415, subdivision 1f; 356.635, subdivision 1; 424A.001,
by adding a subdivision; 424A.01, subdivision 2; 424A.014, subdivisions 1, 2;
424A.015, subdivision 7; 424A.016, subdivisions 4, 6; 424A.02, subdivision 3;
424A.05, subdivision 3b; 424A.10, subdivision 2; 424B.01, subdivisions 3a, 3b,
3d, 3g, 3h, 3i, 4a, 5b, 5c, by adding a subdivision; 424B.04, subdivision 3; 424B.13,
subdivisions 2, 4, 5, 6, 8, 9, 10; 424B.22, subdivisions 1, 2, 3, 4, 5, 7, 8, 9, 10;
477B.01, subdivision 1; 477B.04, subdivision 3; proposing coding for new law in
Minnesota Statutes, chapters 356B; 424B; 477B; repealing Minnesota Statutes
2020, section 356B.05; Laws 2020, chapter 108, article 14, section 1.

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

ARTICLE 1

MINNESOTA STATE RETIREMENT SYSTEM PROVISIONS

Section 1.

Minnesota Statutes 2020, section 352D.06, subdivision 1, is amended to read:


Subdivision 1.

Annuity; reserves.

(a) When a participant attains at least age 55,
terminates from covered service, and applies for a retirement annuity, the cash value of the
participant's shares must be transferred to the general state employees retirement fund and
be used to provide an annuity for the participant based upon the participant's age when the
benefit begins to accrue.

(b) Except for participants described in paragraph (c)new text begin or (d)new text end, the monthly amount of the
annuity must be determined using the actuarial assumptions in effect for the general state
employees retirement plan under section 356.215 on the accrual date.

deleted text begin (c) For any participant who retires on or after July 1, 2017, and before July 1, 2020,
when the participant is at least age 63 or has had at least 26 years of covered service, the
monthly amount of the annuity must be determined using the actuarial assumptions in effect
for the general state employees retirement plan under section 356.215 on June 30, 2016.
deleted text end

deleted text begin (d)deleted text endnew text begin (c)new text end For any participant who terminates employment on or after July 1, 2020, and
before July 1, 2021, if the participant was at least age 63 or had at least 26 years of covered
service as of June 30, 2020, the monthly amount of the annuity must be determined using
the actuarial assumptions in effect for the general state employees retirement plan under
section 356.215 on June 30, 2016.

new text begin (d) For any participant who (1) terminates employment on or after June 1, 2021, and
before July 1, 2022, (2) is an employee of the house of representatives, the senate, or the
Legislative Coordinating Commission at the time the employee terminates employment,
and (3) on June 30, 2020, was at least age 63 or had at least 26 years of covered service,
the monthly amount of the annuity must be determined using the actuarial assumptions in
effect for the general state employees retirement plan under section 356.215 on June 30,
2016.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2020, section 356.415, subdivision 1f, is amended to read:


Subd. 1f.

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

(a) new text beginRecipients of a new text endretirement annuity, disability benefit, or survivor
benefit deleted text beginrecipients ofdeleted text end new text beginfrom new text endthe judges retirement plan are entitled to an annual postretirement
adjustment, effective as of each January 1deleted text begin if the definition of funding stability under
paragraph (b) has not been met
deleted text end, as follows:

(1) new text beginthrough December 31, 2021, new text enda postretirement increase of 1.75 percent must be applied
each year 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 as of the June 30 of the
calendar year immediately before the adjustment; deleted text beginand
deleted text end

(2) new text beginthrough December 31, 2021, new text endfor each annuitant or benefit recipient who has been
receiving an annuity or a benefit for at least one full month, but less than 12 full months as
of the June 30 of the calendar year immediately before the adjustment, 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 to the amount of the monthly annuity or
benefit deleted text beginof each annuitant or benefit recipient.deleted text endnew text begin;
new text end

new text begin (3) effective January 1, 2022, and thereafter, a postretirement increase of 1.5 percent
must be applied each year 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 as of the
June 30 of the calendar year immediately before the adjustment; and
new text end

new text begin (4) effective January 1, 2022, and thereafter, for each annuitant or benefit recipient who
has been receiving an annuity or a benefit for at least one full month, but less than 12 full
months as of the June 30 of the calendar year immediately before the adjustment, 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 to the amount of the monthly annuity or
benefit.
new text end

deleted text begin (b) Increases under paragraph (a) 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 and increases under paragraph (c) begin after that date.
deleted text end

deleted text begin (c) Retirement annuity, disability benefit, or survivor benefit recipients of the judges
retirement plan are entitled to a postretirement adjustment annually, effective as of each
January 1 if the definition of funding stability under paragraph (d) has not been met, as
follows:
deleted text end

deleted text begin (1) a postretirement increase of two percent must be applied each year 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 as of the June 30 of the calendar year immediately
before the adjustment; and
deleted text end

deleted text begin (2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit
for at least one full month, but less than 12 full months as of the June 30 of the calendar
year immediately before the adjustment, 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 to the amount of the monthly annuity or benefit of the annuitant or benefit recipient.
deleted text end

deleted text begin (d) Increases under paragraph (c) terminate on December 31 of the calendar year in
which two prior consecutive actuarial valuations prepared by the approved actuary under
section 356.214 and the standards for actuarial work promulgated by the Legislative
Commission on Pensions and Retirement indicate that the market value of assets of the
judges retirement plan equals or exceeds 90 percent of the actuarial accrued liability of the
retirement plan and increases under paragraph (e) begin after that date.
deleted text end

deleted text begin (e) Retirement annuity, disability benefit, or survivor benefit recipients of the judges
retirement plan are entitled to a postretirement adjustment annually, effective as of each
January 1, as follows:
deleted text end

deleted text begin (1) a postretirement increase of 2.5 percent must be applied each year 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 as of the June 30 of the calendar year immediately
before the adjustment; and
deleted text end

deleted text begin (2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit
for at least one full month, but less than 12 full months as of the June 30 of the calendar
year immediately before the adjustment, 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 to the amount of the monthly annuity or benefit of the annuitant or benefit recipient.
deleted text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2021.
new text end

ARTICLE 2

FEDERAL COMPLIANCE AFFECTING MSRS AND PERA ELIGIBILITY FOR
CERTAIN VISA HOLDERS

Section 1.

Minnesota Statutes 2020, section 352.01, subdivision 2b, is amended to read:


Subd. 2b.

Excluded employees.

"State employee" does not include:

(1) persons who are:

(i) students employed by the University of Minnesota, or within the Minnesota State
Colleges and Universities system, unless approved for coverage by the Board of Regents
of the University of Minnesota or the Board of Trustees of the Minnesota State Colleges
and Universities, whichever applies;

(ii) employed as interns for a period not to exceed six months unless included under
subdivision 2a, paragraph (a), clause (8);

(iii) employed as trainee employees unless included under subdivision 2a, paragraph
(a), clause (8); or

(iv) employed in the student worker classification as designated by Minnesota
Management and Budget;

(2) employees who are:

(i) eligible for membership in the state Teachers Retirement Association, unless the
person is an employee of the Department of Education who elected to be covered by the
general state employees retirement plan of the Minnesota State Retirement System instead
of the Teachers Retirement Association;

(ii) employees of the state who, in any year, were credited with 12 months of allowable
service as a public school teacher and, as such, are members of a retirement plan governed
by chapter 354 or 354A unless the employment is incidental employment as a state employee
that is not covered by a retirement plan governed by chapter 354 or 354A;

(iii) employees of the state who are employed by the Board of Trustees of the Minnesota
State Colleges and Universities in an unclassified position that is listed in section 43A.08,
subdivision 1
, clause (9);

(iv) persons employed by the Board of Trustees of the Minnesota State Colleges and
Universities who elected retirement coverage other than by the general state employees
retirement plan of the Minnesota State Retirement System under Minnesota Statutes 1994,
section 136C.75;

(v) officers or enlisted personnel in the National Guard or in the naval militia who are
assigned to permanent peacetime duty and who are or are required to be members of a
federal retirement system under federal law;

(vi) persons employed by the Department of Military Affairs as full-time firefighters
and who, as such, are members of the public employees police and fire retirement plan;

(vii) members of the State Patrol retirement plan under section 352B.011, subdivision
10;

(viii) off-duty police officers while employed by the Metropolitan Council and persons
employed as full-time police officers by the Metropolitan Council and who, as such, are
members of the public employees police and fire retirement plan; and

(ix) employees of the state who have elected to transfer account balances derived from
state service to the unclassified state employees retirement program under section 352D.02,
subdivision 1d
;

(3) employees of the University of Minnesota who are excluded from coverage by action
of the Board of Regents;

(4) election judges and persons who are employed solely to administer elections;

(5) persons who are:

(i) engaged in public work for the state but who are employed by contractors when the
performance of the contract is authorized by the legislature or other competent authority;

(ii) employed to perform professional services where the service is incidental to the
person's regular professional duties and where compensation is paid on a per diem basis;
or

(iii) compensated on a fee payment basis or as an independent contractor;

(6) persons who are employed:

(i) on a temporary basis by the house of representatives, the senate, or a legislative
commission or agency under the jurisdiction of the Legislative Coordinating Commission;

(ii) as a temporary employee on or after July 1 for a period ending on or before October
15 of that calendar year for the Minnesota State Agricultural Society or the Minnesota State
Fair, or as an employee at any time for a special event held on the fairgrounds;

(iii) by the executive branch as a temporary employee in the classified service or as an
executive branch temporary employee in the unclassified service if appointed for a definite
period not to exceed six months, and if employment is less than six months, then in any
12-month period;

(iv) by the adjutant general if employed on an unlimited intermittent or temporary basis
in the classified service or in the unclassified service for the support of Army or Air National
Guard training facilities;

(v) by a state or federal program for training or rehabilitation as a temporary employee
if employed for a limited period from an area of economic distress and if other than a skilled
or supervisory personnel position or other than a position that has civil service status covered
by the retirement system; and

(vi) by the Metropolitan Council or a statutory board of the Metropolitan Council where
the members of the board are appointed by the Metropolitan Council as a temporary employee
if the appointment does not exceed six months;

(7) receivers, jurors, notaries public, and court employees who are not in the judicial
branch as defined in section 43A.02, subdivision 25, except referees and adjusters employed
by the Department of Labor and Industry;

(8) patient and inmate help who perform services in state charitable, penal, and
correctional institutions, including a Minnesota Veterans Home;

(9) employees of the Sibley House Association;

(10) persons who are:

(i) members of any state board or commission who serve the state intermittently and are
paid on a per diem basis, the secretary, secretary-treasurer, and treasurer of those boards if
their compensation is $5,000 or less per year, or, if they are legally prohibited from serving
more than three years, and the board of managers of the State Agricultural Society and its
treasurer unless the treasurer is also its full-time secretary;

(ii) examination monitors employed by a department, agency, commission, or board of
the state to conduct examinations that are required by law; or

(iii) appointees serving as a member of a fact-finding commission or an adjustment
panel, an arbitrator, or a labor referee under chapter 179;

(11) emergency employees who are in the classified service, but if an emergency
employee, within the same pay period, becomes a provisional or probationary employee on
other than a temporary basis, the employee must be considered a "state employee"
retroactively to the beginning of the pay period;

(12) persons who are members of a religious order who 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 1986, as amended;

(13) members of trades who are employed by the successor to the Metropolitan Waste
Control Commission, who have trade union pension plan coverage under a collective
bargaining agreement, and who are first employed after June 1, 1977;

(14) new text beginfor the first three years of employment, new text endforeign citizens who are deleted text beginemployed under
a work permit of less than three years or under an H-1b visa or a J-1 visa that is initially
valid for less than three years of employment, unless notice of a visa extension which allows
them to work for three or more years as of the date that the extension is granted and is
supplied to the retirement plan, in which case the person is eligible for coverage from the
date of the extension
deleted text endnew text begin state employees under subdivision 2 or included employees under
subdivision 2a, unless the foreign citizen is:
new text end

new text begin (i) an H-1B, H-1B1, or E-3 status holder;
new text end

new text begin (ii) an employee legally authorized to work in the United States for three years or more;
or
new text end

new text begin (iii) an employee otherwise required to participate under federal lawnew text end; and

(15) reemployed annuitants of the general state employees retirement plan, the military
affairs personnel retirement plan, the transportation department pilots retirement plan, the
state fire marshal employees retirement plan, or the correctional state employees retirement
plan during the course of that reemployment.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2020, 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 elected office of a governing body, whose term of office
commences on or after July 1, 2002, for the service to be rendered in that elected 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) for the first three years of employment, foreign citizens who are employed by a
governmental subdivision, except that the following foreign citizens deleted text beginaredeleted text end new text beginmust be considered
new text end included employees under subdivision 2a:

new text begin (i) H-1B, H-1B1, and E-3 status holders;
new text end

deleted text begin (i)deleted text end new text begin(ii) new text endemployees of Hennepin County or Hennepin Healthcare System, Inc.;

deleted text begin (ii)deleted text end new text begin(iii) new text endemployees legally authorized to work in the United States for three years or
more; and

deleted text begin (iii)deleted text end new text begin(iv) new text endemployees otherwise required to participate under federal law;

(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) employees in the building and construction trades, as follows:

(i) 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;

(ii) electrical workers, plumbers, carpenters, and associated trades personnel employed
by Independent School District No. 625, St. Paul, or the city of St. Paul, with coverage
under a collective bargaining agreement by the electrical workers local 110 pension plan,
the plumbers local 34 pension plan, or the carpenters local 322 pension plan 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;

(iii) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters,
allied tradesworkers, and plasterers 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 1324 pension plan, the painters and allied
trades local 61 pension plan, or the 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;

(iv) plumbers employed by the Metropolitan Airports Commission, with coverage under
a collective bargaining agreement by the plumbers local 34 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;

(v) electrical workers or pipefitters employed by the Minneapolis Park and Recreation
Board, with coverage under a collective bargaining agreement by the electrical workers
local 292 pension plan or the pipefitters local 539 pension plan, who were first employed
before May 2, 2015, and elected to be excluded under Laws 2015, chapter 68, article 11,
section 5;

(vi) laborers and associated trades personnel employed by the city of St. Paul or
Independent School District No. 625, St. Paul, who are designated as temporary employees
with coverage under a collective bargaining agreement by a multiemployer plan as defined
in section 356.27, subdivision 1, who were either first employed on or after June 1, 2018,
or if first employed before June 1, 2018, elected to be excluded under Laws 2018, chapter
211, article 16, section 13; and

(vii) employees who are trades employees as defined in section 356.27, subdivision 1,
first hired on or after July 1, 2020, by the city of St. Paul or Independent School District
No. 625, St. Paul, except for any trades employee for whom contributions are made under
section 356.24, subdivision 1, clause (8), (9), or (10), by either employer to a multiemployer
plan as defined in section 356.27, subdivision 1;

(16) 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 a period of six months or
less in each year of employment with the governmental subdivision;

(17) 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;

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

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

(20) persons appointed to serve on a board or commission of a governmental subdivision
or an instrumentality thereof; and

(21) 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3. new text beginMSRS; SERVICE CREDIT PURCHASE PERMITTED FOR PERIOD OF
EMPLOYMENT AS AN EXCLUDED EMPLOYEE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following definitions shall
apply, unless the context indicates a different meaning is intended:
new text end

new text begin (1) "effective date" means the effective date of section 1;
new text end

new text begin (2) "eligible person" means a person who:
new text end

new text begin (i) is employed in state service on the effective date or terminated employment in state
service during the lookback period;
new text end

new text begin (ii) was an excluded employee for any period of employment before the effective date;
and
new text end

new text begin (iii) before the effective date, became eligible for coverage under Minnesota Statutes
2020, section 352.01, subdivision 2b, clause (14), or, on the effective date, became a state
employee under the amendment made by section 1;
new text end

new text begin (3) "excluded employee" means a person who was excluded from coverage under
Minnesota Statutes 2020, section 352.01, subdivision 2b, clause (14);
new text end

new text begin (4) "executive director" means the executive director of the Minnesota State Retirement
System; and
new text end

new text begin (5) "lookback period" means the period that begins twelve months before the effective
date of section 1 and ends on the effective date.
new text end

new text begin Subd. 2. new text end

new text begin Authorizing the purchase of service credit. new text end

new text begin (a) Notwithstanding any law to
the contrary, the executive director must credit a person with allowable service credit for
any period of employment during which contributions were not made for the person because
the person was considered an excluded employee, if the person is an eligible person and
the executive director receives the payment described in paragraph (b) or (c), as applicable.
new text end

new text begin (b) The eligible person or the employer, on behalf of the eligible person, may, no later
than August 31, 2021, pay the missed employee contributions for any period of employment
during which contributions were not made for the person because the person was considered
an excluded employee, by transmitting the amount of the missed employee contributions
in a lump sum to the Minnesota State Retirement System.
new text end

new text begin (c) The eligible person may elect to pay missed employee contributions for less than the
entire period of employment during which contributions were not made. The period of
employment elected must be consecutive payroll periods and may be payroll periods during
which the eligible person received the lowest salary. Upon payment of the missed employee
contributions for the period of employment elected, the executive director must credit the
eligible person with a proportionate amount of allowable service credit.
new text end

new text begin (d) If the missed employee contributions are paid, the eligible person's employer must,
no later than September 30, 2021, pay the missed employer contributions plus interest,
compounded annually, at the applicable annual rate or rates specified in Minnesota Statutes,
section 356.59, subdivision 2, on both the employee contributions and the employer
contributions, from the end of the year in which the contributions would have been made
to the date on which the payment is made, by transmitting the amount of the missed employer
contributions plus interest in a lump sum to the Minnesota State Retirement System. If the
eligible person elects to pay missed employee contributions for less than the entire period
of employment as permitted under paragraph (c), the employer must pay the missed employer
contributions plus interest on both the employee contributions and the employer contributions
for the payroll periods elected by the eligible person.
new text end

new text begin (e) The executive director shall notify the eligible person's employer regarding the
amount required under paragraph (d) and the basis for determining the amount. If the
employer fails to make all or any portion of the payment required by paragraph (d), the
executive director shall follow the procedures in Minnesota Statutes, section 352.04,
subdivision 8, paragraph (b), to collect the unpaid amount.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 3

PUBLIC EMPLOYEES RETIREMENT ASSOCIATION PROVISIONS

Section 1.

Minnesota Statutes 2020, 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, subdivisions 12 and 12a, 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 during which the employee receives pay as
specified in subdivision 10, paragraph (a), clause (4) or (5), from which deductions for
employee contributions are made, deposited, and credited to the fund;

(5) a period of authorized leave of absence without pay, or with pay that is not included
in the definition of salary under subdivision 10, paragraph (a), clause (4) or (5), for which
salary deductions are not authorized, and for which a member obtained service credit for
up to 12 months of the authorized leave period by payment under section 353.0162, to the
fund made in place of salary deductions;

deleted text begin (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 applicable rate or rates specified in section 356.59,
subdivision 3
, 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 interest at the applicable rate or rates specified in section 356.59, subdivision 3,
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;
deleted text end

deleted text begin (7)deleted text end new text begin(6) new text endan 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;

deleted text begin (8)deleted text end new text begin(7) new text enda period of uniformed services leave purchased under section 353.014;

deleted text begin (9)deleted text end new text begin(8) new text enda period of military service purchased under section 353.0141; or

deleted text begin (10)deleted text end new text begin(9) new text enda period deleted text beginspecifieddeleted text end new text beginof reduced salary purchased new text endunder section 353.0162.

(b) No member may receive more than 12 months of allowable service credit in a year
either for vesting purposes or for benefit calculation purposes.

(c) 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 2.

Minnesota Statutes 2020, section 353.01, subdivision 28, is amended to read:


Subd. 28.

Retirement.

(a) "Retirement" means the payment of an annuity by the
association. A right to retirement is subject to termination of public service under subdivision
11a. A right to retirement requires a complete and continuous separation for 30 days from
employment as a public employee.

(b) Notwithstanding the 30-day separation requirement under paragraph (a), a member
of a defined benefit plan under this chapter, who also participates in the public employees
defined contribution plan under chapter 353D for other public service, may be paid, if
eligible, a retirement annuity from the defined benefit plan while participating in the defined
contribution plan. A retirement annuity is also payable from a defined benefit plan under
this chapter to an eligible member who terminates public service and who, within 30 days
of separation, takes office as an elected official of a governmental subdivision.

(c) Elected officials included in association membership under subdivisions 2a and 2d
meet the 30-day separation requirement under this section by resigning from office before
filing for a subsequent term in the same office and by remaining completely and continuously
separated from that office for 30 days prior to the date of the election.

new text begin (d) The 30-day separation requirement under paragraph (a) does not apply to a retirement
annuity payable from a defined benefit plan under this chapter to a public employee if the
public employee:
new text end

new text begin (1) is covered by a covered retirement plan under section 356.30, subdivision 3;
new text end

new text begin (2) is eligible for a combined service annuity under section 356.30, subdivision 1; and
new text end

new text begin (3) has entered into a phased retirement agreement or its equivalent permitted by the
laws applicable to the covered retirement plan with coverage of the last period of public
service.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 3.

Minnesota Statutes 2020, section 353.014, subdivision 4, is amended to read:


Subd. 4.

Time period for making member's payment.

Payment of the employee
equivalent contributions must be made during a period that begins with the date on which
the member returns to public employment and that is three times the length of the military
leave period, or within five years of the date on which the member returns to public
employment, whichever is less. If the payment period is less than deleted text beginone yeardeleted text endnew text begin three yearsnew text end,
payment of the employee equivalent contributions may be made within deleted text beginone yeardeleted text end new text beginthree years
new text end of the date of the member's discharge from service in the uniformed services. Payment may
not be accepted after deleted text begin30 daysdeleted text end new text beginsix months new text endfollowing termination of public service under
section 353.01, subdivision 11a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021, except the amendments
changing one year to three years are effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2020, section 353.0162, is amended to read:


353.0162 SALARY CREDIT PURCHASE FOR PERIODS OF REDUCED
SALARY.

(a) A member may purchase differential salary credit as described in paragraph (c) for
a period deleted text beginspecifieddeleted text end new text beginof reduced salary as described new text endin paragraph (b).

(b) The deleted text beginapplicabledeleted text end period deleted text beginisdeleted text end new text beginof reduced salary must be new text enda period new text beginoccurring entirely within
one school year, for school year employees, or one calendar year, for all other employees,
new text end during which the member deleted text beginis receivingdeleted text end new text beginreceives new text endno new text beginsalary new text endor a reduced salary from the
employer while the member is:

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

(2) on an authorized leave of absencedeleted text begin, except that if the authorized leave of absence
exceeds 12 months, the period of leave for which differential salary credit may be purchased
is limited to 12 months
deleted text end; deleted text beginor
deleted text end

(3) on an authorized leave of absence as a result of a budgetary or salary savings program
offered or mandated by a governmental subdivision, if certified to the executive director
by the governmental subdivisiondeleted text begin.deleted text endnew text begin; or
new text end

new text begin (4) on a periodic, repetitive leave that is offered to all employees of a governmental
subdivision where the leave program is certified by the employer to the association as one
that does not exceed 208 hours during the school year or calendar year, as applicable.
new text end

(c) Differential salary credit is the difference between the salary received by the member
during a period new text beginof reduced salary new text endspecified in paragraph (b) and the salary of the member,
excluding overtime, on which contributions to the applicable plan would have been made
during the period based on the member's normal employment period, measured in hours or
otherwise, as applicable, and rate of pay.

(d) To receive differential salary credit, the member shall pay the plan, by delivering
payment to the executive director, an amount equal to:

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

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

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

(e) The employer, by appropriate action of its governing body and documented in its
official records, may pay deleted text beginthe employer equivalent contributions anddeleted text endnew text begin on behalf of the member
the amounts determined under paragraph (d), clauses (2) and (3)
new text end, as applicable, deleted text beginthe equivalent
employer additional contributions on behalf of the member
deleted text endnew text begin plus interest under paragraph
(f). However, if the period of reduced salary is a periodic, repetitive leave under paragraph
(b), clause (4), then the employer must pay on behalf of the member the amount determined
under paragraph (d), clauses (2) and (3), as applicable, plus interest under paragraph (f)
new text end.

(f) Payment under this section must include interest on the contribution amount or
amounts, whichever applies, at the applicable rate or rates specified in section 356.59,
subdivision 3
, compounded annually, prorated for the number of months, if less than 12
months, from the deleted text begindate on which the period of reduced salary specified in paragraph (b)
terminates to the date on which the payment or payments are
deleted text end new text beginend of the school year or
calendar year, as applicable, until full payment is
new text endreceived by the executive director. Payment
under this section must be completed by the earliest of:

(1) deleted text begin30 daysdeleted text end new text beginsix months new text endafter termination of public service by the employee under section
353.01, subdivision 11a;

(2) one year after the termination of the period new text beginof reduced salary new text endspecified in paragraph
(b); or

(3) deleted text begin30 daysdeleted text end new text beginsix months new text endafter the commencement of a disability benefit.

deleted text begin (g) If the member has purchased 12 months of differential salary credit, the member
must return to public service and render a minimum of three months of allowable service
to purchase differential salary credit for a subsequent leave of absence.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 5.

Minnesota Statutes 2020, section 353.27, subdivision 12, is amended to read:


Subd. 12.

Omitted salary deductions; obligations.

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

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

(c) When the omission period of an employee exceeds 60 days, the governmental
subdivision shall furnish to the association sufficient data and documentation upon which
the obligation for omitted employee and employer contributions can be calculated. The
omitted employee deductions must be deducted from the employee's subsequent salary
payment or payments and remitted to the association for deposit in the applicable retirement
fund. The employee shall pay omitted employee deductions due for the 60 days prior to the
end of the last pay period in the omission period during which salary was earned. The
employer shall pay any remaining omitted employee deductions and any omitted employer
contributions, plus deleted text begincumulativedeleted text end interest at the deleted text beginannual rate of 8.5 percent until June 30, 2015,
and eight percent thereafter
deleted text endnew text begin applicable rate or rates specified in section 356.59, subdivision
3
,
new text end compounded annually, from the date or dates each omitted employee contribution was
first payable.

(d) An employer shall not hold an employee liable for omitted employee deductions
beyond the pay period dates under paragraph (c), nor attempt to recover from the employee
those employee deductions paid by the employer on behalf of the employee. Omitted
deductions due under paragraph (c) which are not paid by the employee constitute a liability
of the employer that failed to deduct the omitted deductions from the employee's salary.
The employer shall make payment with interest at the applicable rate or rates specified in
section 356.59, subdivision 3, compounded annually. Omitted employee deductions are no
longer due if an employee terminates public service before making payment of omitted
employee deductions to the association, but the employer remains liable to pay omitted
employer contributions plus interest at the applicable rate or rates specified in section 356.59,
subdivision 3
, compounded annually, from the date the contributions were first payable.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 6.

Minnesota Statutes 2020, section 353.30, subdivision 1a, is amended to read:


Subd. 1a.

Pre-July 1, 1989, members: rule of 90.

Upon termination of public service
under section 353.01, subdivision 11a, a person who first became a public employee or a
member of a pension fund listed in section 356.30, subdivision 3, before July 1, 1989, and
whose attained age plus credited allowable service totals 90 years is entitled upon application
to a retirement annuity in an amount equal to the new text beginapplicable new text endnormal annuity provided in
section 353.29, subdivision 3, paragraph (a)deleted text begin, without anydeleted text endnew text begin; section 353.651, subdivision 3;
or section 353E.04, subdivision 3. Such annuity is not subject to a
new text end reduction deleted text beginin annuity due
to
deleted text endnew text begin fornew text end early retirement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 7.

Minnesota Statutes 2020, section 353.30, subdivision 1b, is amended to read:


Subd. 1b.

Pre-July 1, 1989, members: 30 years of service.

Upon termination of public
service under section 353.01, subdivision 11a, a person who first became a public employee
or a member of a pension fund listed in section 356.30, subdivision 3, before July 1, 1989,
deleted text begin withdeleted text end new text beginand has new text end30 years or more of allowable service credit, new text beginand new text endwho elects to retire prior to
normal retirement age, shall receive an annuity in an amount equal to the normal annuity
provided under section 353.29, subdivision 3, paragraph (a), reduced by one-quarter of one
percent for each month that the member is under age 62 at the time of retirement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 8.

Minnesota Statutes 2020, section 353.30, subdivision 1c, is amended to read:


Subd. 1c.

Pre-July 1, 1989, members: early retirement.

Upon termination of public
servicenew text begin under section 353.01, subdivision 11anew text end, a person who first became a public employee
or a member of a pension fund listed in section 356.30, subdivision 3, before July 1, 1989,
deleted text begin who has becomedeleted text end new text beginand is new text endat least 55 years old but deleted text beginnotdeleted text end new text beginis younger than new text endnormal retirement age,
and new text beginwho new text endis vested under section 353.01, subdivision 47, is entitled, upon application, to a
retirement annuity in an amount equal to the new text beginapplicable new text endnormal annuity provided in section
353.29, subdivision 3, paragraph (a)deleted text begin,deleted text endnew text begin. Such annuity must benew text end reduced by one-quarter of one
percent for each month that the member is under normal retirement age at the time of
retirement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 9.

Minnesota Statutes 2020, section 353.335, is amended to read:


353.335 DISABILITANT EARNINGS REPORTS.

new text begin Unless waived by the executive director, a new text enddisability benefit deleted text beginrecipientsdeleted text end new text beginrecipient new text endmust
report all earnings from reemployment and from income from workers' compensation to
the association annually by May 15 in a format prescribed by the executive director. If the
form is not submitted by May 15, benefits must be suspended effective June 1. Upon receipt
of the form by the association, if the disability benefit recipient is deemed by the executive
director to be eligible for continued payment, benefits must be reinstated retroactive to June
1.new text begin The executive director may waive the requirements in this section if the medical evidence
supports that the disability benefit recipient will not have earnings from reemployment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 10.

Minnesota Statutes 2020, section 353.34, subdivision 2, is amended to read:


Subd. 2.

Refund with interest.

(a) Except as provided in subdivision 1, any person who
ceases to be a member is entitled to receive a refund in an amount equal to accumulated
deductions, less the sum of any disability benefits that have been paid by the fund, plus
annual compound interest new text beginat the applicable rate or rates under paragraph (b) new text endto the first day
of the month in which the refund is processed.

(b) Annual compound interest rates deleted text beginon a refund under paragraph (a)deleted text end shall be as follows:

(1) six percent to June 30, 2011;

(2) four percent after June 30, 2011, to June 30, 2018; and

(3) three percent after June 30, 2018.

(c) If a person repays a refund and subsequently applies for another refund, the repayment
amount, including interest, is added to the fiscal year balance in which the repayment was
made.

(d) If the refund payable to a member is based on employee deductions that are
determined to be invalid under section 353.27, subdivision 7, the interest payable on the
invalid employee deductions is deleted text beginthree percentdeleted text endnew text begin annual compound interest at the applicable
rate or rates under paragraph (b)
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 11.

Minnesota Statutes 2020, section 353D.071, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given them.

(b) "Designated beneficiary" means the person designated as the beneficiary under
section 353D.07, subdivision 5, and who is the designated beneficiary under section 401(a)(9)
of the Internal Revenue Code and section 1.401 (a)(9)-1, Q&A-4 of the Treasury regulations.

(c) "Distribution calendar year" means a calendar year for which a minimum distribution
is required. For distributions beginning before the deleted text beginmember'sdeleted text end new text beginparticipant'snew text end death, the first
distribution calendar year is the calendar year immediately preceding the calendar year
which contains the deleted text beginmember'sdeleted text end new text beginparticipant'snew text end required beginning date. For distributions beginning
after the deleted text beginmember'sdeleted text end new text beginparticipant'snew text end death, the first distribution calendar year is the calendar
year in which distributions are required to begin under subdivision 2, paragraph (c). The
required minimum distribution for the deleted text beginmember'sdeleted text end new text beginparticipant'snew text end first distribution calendar year
shall be made on or before the deleted text beginmember'sdeleted text end new text beginparticipant'snew text end required beginning date.

(d) "deleted text beginMember'sdeleted text end new text beginParticipant'snew text end account balance" means the account balance as of the last
valuation date in the valuation calendar year increased by the amount of any contributions
made and allocated to the account balance as of dates in the valuation calendar year after
the valuation date and decreased by distributions made in the valuation calendar year after
the valuation date. The account balance for the valuation calendar year includes any amounts
rolled over or transferred to the plan either in the valuation calendar year or in the distribution
calendar year if distributed or transferred in the valuation calendar year.

(e) "Required beginning date" means the deleted text beginlater of April 1 of the calendar year following
the calendar year that the member attains age 70 years, six months, or April 1 of the calendar
year following the calendar year in which the member terminates employment
deleted text endnew text begin date a
participant's retirement benefit must begin under section 356.635, subdivision 1, paragraph
(a)
new text end.

(f) "Valuation calendar year" means the calendar year immediately preceding the
distribution calendar year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 12.

Minnesota Statutes 2020, section 353D.071, subdivision 2, is amended to read:


Subd. 2.

Required minimum distributions.

(a) The provisions of this subdivision apply
for purposes of determining required minimum distributions for calendar years and must
take precedence over any inconsistent provisions of the plan. All distributions required
under this section must be 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 deleted text beginmember'sdeleted text end new text beginparticipant's new text endentire interest must be distributed new text beginor begin new text endto deleted text beginthe member
in a lump sum
deleted text end new text beginbe distributed new text endno later than the deleted text beginmember'sdeleted text end new text beginparticipant's new text endrequired beginning
date.

(c) If the deleted text beginmemberdeleted text end new text beginparticipant new text enddies before the required minimum distribution is madenew text begin or
begins
new text end, the deleted text beginmember's entire interestdeleted text end new text beginparticipant's account new text endmust be distributed in a lump sum
no later than as follows:

(1) if the deleted text beginmember'sdeleted text end new text beginparticipant's new text endsurviving spouse is the deleted text beginmember'sdeleted text end new text beginparticipant's new text endsole
designated beneficiary, the distribution must be made by December 31 of the calendar year
immediately following the calendar year in which the deleted text beginmemberdeleted text end new text beginparticipant new text enddied, or by
December 31 of the calendar year in which the deleted text beginmemberdeleted text end new text beginparticipant new text endwould have attained deleted text beginage
70 years, six months
deleted text endnew text begin the participant's required beginning datenew text end, whichever is later;

(2) if the deleted text beginmember'sdeleted text end new text beginparticipant's new text endsurviving spouse is not the deleted text beginmember'sdeleted text end new text beginparticipant's new text endsole
beneficiary, or if there is no designated beneficiary as of September 30 of the year following
the year of the deleted text beginmember'sdeleted text end new text beginparticipant's new text enddeath, the deleted text beginmember's entire interestdeleted text end new text beginparticipant's account
new text end must be distributed by December 31 of the calendar year containing the fifth anniversary
of the deleted text beginmember'sdeleted text end new text beginparticipant's new text enddeath as directed under section 353D.07, subdivision 5; or

(3) if the deleted text beginmember'sdeleted text end new text beginparticipant's new text endsurviving spouse is the deleted text beginmember'sdeleted text end new text beginparticipant's new text endsole
designated beneficiary and the surviving spouse dies after the deleted text beginmemberdeleted text endnew text begin participantnew text end, but before
the account balance is distributed to the surviving spouse, paragraph (c), clause (2), must
apply as if the surviving spouse were the deleted text beginmemberdeleted text endnew text begin participantnew text end.

(d) For purposes of paragraph (c), unless clause (3) applies, distributions are considered
to be made on the deleted text beginmember'sdeleted text end new text beginparticipant's new text endrequired beginning date. If paragraph (c), clause
(3), applies, distributions are considered to begin on the date distributions must be made to
the surviving spouse under paragraph (c), clause (1).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

ARTICLE 4

PERA STATEWIDE VOLUNTEER FIREFIGHTER PLAN PROVISIONS

Section 1.

Minnesota Statutes 2020, section 477B.04, subdivision 3, is amended to read:


Subd. 3.

Deposit of state aid.

(a) new text beginThis paragraph applies new text endif the municipality or the
independent nonprofit firefighting corporation is covered by the statewide volunteer
firefighter plan deleted text beginunder chapter 353Gdeleted text endnew text begin. If this paragraph applies and the executive director of
the Public Employees Retirement Association has not approved an aid allocation plan under
section 477B.041
new text end, the executive director deleted text beginof the Public Employees Retirement Associationdeleted text end
must credit the fire state aid against future municipal contribution requirements under section
353G.08 and must notify the municipality or the independent nonprofit firefighting
corporation of the fire state aid so credited at least annually.new text begin If this paragraph applies and
the executive director has approved an aid allocation plan under section 477B.041, the
executive director must allocate fire state aid in the manner described under section 477B.041.
new text end

(b) If (1) the municipality or the independent nonprofit firefighting corporation is not
covered by the statewide volunteer firefighter plan and is affiliated with a duly incorporated
firefighters relief association, (2) the relief association has filed a financial report with the
municipality pursuant to section 424A.014, subdivision 1 or 2, whichever applies, and (3)
there is not an aid allocation agreement under section 477B.042 in effect, then the treasurer
of the municipality must, within 30 days after receipt, transmit the fire state aid to the
treasurer of the relief association. If clauses (1) and (2) are satisfied and there is an aid
allocation agreement under section 477B.042 in effect, then fire state aid must be transmitted
as described in that section. If the relief association has not filed a financial report with the
municipality, then, regardless of whether an aid allocation agreement is in effect, the treasurer
of the municipality must delay transmission of the fire state aid to the relief association until
the complete financial report is filed.

(c) The treasurer of the municipality must deposit the fire state aid money in the municipal
treasury if (1) the municipality or independent nonprofit firefighting corporation is not
covered by the statewide volunteer firefighter plan, (2) there is no relief association organized,
(3) the association has dissolved, or (4) the association has been removed as trustees of state
aid. The money may be disbursed from the municipal treasury only for the purposes and in
the manner set forth in section 424A.08 or for the payment of the employer contribution
requirement with respect to firefighters covered by the public employees police and fire
retirement plan under section 353.65, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2022 and thereafter.
new text end

Sec. 2.

new text begin [477B.041] ALLOCATION OF FIRE STATE AID FOR THE STATEWIDE
VOLUNTEER FIREFIGHTER PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, unless the language or
context clearly indicates that a different meaning is intended, the following terms have the
meanings given to them:
new text end

new text begin (1) "Active volunteer firefighter" means a member of the statewide volunteer firefighter
plan as defined in section 353G.01, subdivision 8.
new text end

new text begin (2) "Chief petitioning firefighter" means an active volunteer firefighter who, on behalf
of petitioning firefighters, submits a petition to stop an aid allocation plan under subdivision
6 to the executive director.
new text end

new text begin (3) "Combination department" means a municipality or independent nonprofit firefighting
corporation which, during the previous calendar year and on January 1, 2021:
new text end

new text begin (i) employed one or more firefighters covered by the statewide volunteer firefighter
plan; and
new text end

new text begin (ii) contributed on behalf of one or more firefighters to the public employees police and
fire retirement plan under chapter 353.
new text end

new text begin (4) "Covered period" means the period covered by the aid allocation plan beginning
with the calendar year immediately following the calendar year in which the plan is approved
and continuing for not more than three years.
new text end

new text begin (5) "Executive director" means the executive director of the Public Employees Retirement
Association.
new text end

new text begin (6) "Reimbursement amount" means the amount calculated under subdivision 4, which
reimburses a combination department for employer contributions made to the public
employees police and fire retirement plan on behalf of covered firefighters.
new text end

new text begin (7) "Total state aid" means the combined total of fire state aid and police and firefighter
supplemental state aid payable to the Public Employees Retirement Association on behalf
of a combination department on October 1 under sections 477B.04, subdivision 1, and
423A.022, subdivision 4, respectively.
new text end

new text begin Subd. 2. new text end

new text begin Submission of an aid allocation plan. new text end

new text begin Beginning on March 1 of each year, a
combination department may submit to the executive director an aid allocation plan that
conforms with the requirements in this paragraph. The aid allocation plan must:
new text end

new text begin (1) be approved by the governing body of the combination department;
new text end

new text begin (2) be in writing and specify:
new text end

new text begin (i) the percentage of the fire state aid, dollar amount, or formula for determining the
amount of fire state aid that will be transmitted to the combination department as the
reimbursement amount; and
new text end

new text begin (ii) the covered period;
new text end

new text begin (3) be signed by the municipal clerk or secretary; and
new text end

new text begin (4) include the date that notice was provided to firefighters under subdivision 7.
new text end

new text begin Subd. 3. new text end

new text begin Approval of aid allocation plan. new text end

new text begin The executive director shall approve an aid
allocation plan submitted by a combination department if:
new text end

new text begin (1) the aid allocation plan is submitted on or after March 1;
new text end

new text begin (2) the aid allocation plan meets the requirements in subdivision 2; and
new text end

new text begin (3) within 45 days after receipt of the aid allocation plan, the executive director has not
received a petition to stop aid allocation described in subdivision 6.
new text end

new text begin Subd. 4. new text end

new text begin Deposit; transfer of fire state aid under aid allocation plan. new text end

new text begin (a) Fire state
aid covered by an approved aid allocation plan must be deposited in accordance with this
subdivision. Within 30 days after receipt of the fire state aid, the executive director must
transmit the reimbursement amount to the combination department. The reimbursement
amount must not exceed the smallest of the following amounts:
new text end

new text begin (1) the percentage, dollar amount, or formula specified by the combination department
under subdivision 2;
new text end

new text begin (2) the combination department's total employer contribution to the public employees
police and fire retirement plan on behalf of firefighters during the preceding calendar year;
new text end

new text begin (3) the amount of fire state aid payable to the Public Employees Retirement Association
on behalf of the combination department on October 1 of the current calendar year under
section 477B.04, subdivision 1;
new text end

new text begin (4) the amount determined by subtracting from the combination department's total state
aid the combination department's annual funding requirement under section 353G.08 as
calculated on or before August 1 for the current year; or
new text end

new text begin (5) the amount determined by subtracting from the combination department's total state
aid the amount required to increase the funding ratio of the combination department's account
to not less than 100 percent as of the date of the valuation used to determine the funding
requirement under clause (4).
new text end

new text begin (b) After transmitting the reimbursement amount, the executive director must immediately
credit any remaining fire state aid against the combination department's annual funding
requirement under section 353G.08. The executive director must notify the combination
department of the disposition of fire state aid within 30 days of transmission of the
reimbursement amount.
new text end

new text begin (c) Fire state aids payable before or after the covered period must be credited as if no
aid allocation plan has been approved under section 477B.04, subdivision 3, paragraph (a).
new text end

new text begin Subd. 5. new text end

new text begin Termination; modification of aid allocation plan. new text end

new text begin (a) The governing body
of a combination department may terminate an aid allocation plan at any time by submitting
a notice of termination to the executive director.
new text end

new text begin (b) A combination department may modify an aid allocation plan at any time during the
covered period by submitting a modified aid allocation plan to the executive director. The
modified aid allocation plan must meet the requirements of an aid allocation plan under
subdivision 3.
new text end

new text begin (c) The termination or modification of an aid allocation plan applies only to subsequent
fire state aid payments and does not affect any reimbursement amount already transmitted
to the combination department.
new text end

new text begin (d) The combination department must provide notice of any modification or termination
as required under subdivision 7.
new text end

new text begin Subd. 6. new text end

new text begin Petition to stop aid allocation. new text end

new text begin (a) Within 45 days after a combination
department submits an aid allocation plan or modified aid allocation plan to the executive
director, an active volunteer firefighter employed by the combination department may submit
to the executive director a petition to stop the aid allocation plan. The petition must be in a
form prescribed by the executive director. The executive director must reject an aid allocation
plan or modified aid allocation plan as a result of the petition if:
new text end

new text begin (1) the executive director receives the petition to stop the aid allocation plan within 45
days after receiving an aid allocation plan or modified aid allocation plan for the same
combination department; and
new text end

new text begin (2) the petition to stop aid allocation is in writing and includes the names and signatures
of a majority of the active volunteer firefighters employed by the combination department
and the name and contact information for the chief petitioning firefighter.
new text end

new text begin (b) When determining whether a petition includes the names and signatures of a majority
of the active volunteer firefighters affiliated with the combination department, the executive
director must verify that the names provided match the active volunteer firefighter records
maintained by the Public Employees Retirement Association.
new text end

new text begin (c) Upon receipt of a petition to stop aid allocation, the executive director must
immediately notify the combination department that a petition was received. Within 15 days
after receipt of the petition to stop aid allocation, the executive director must report to the
combination department and the chief petitioning firefighter whether the aid allocation plan
was rejected as a result of the petition.
new text end

new text begin (d) If an aid allocation plan is rejected as a result of a petition, the combination department
may revise the aid allocation plan and submit the revised plan, subject to the requirements
in this section, including the notice under subdivision 7 and the firefighters' right to petition
to stop aid allocation under the revised plan under subdivision 6.
new text end

new text begin Subd. 7. new text end

new text begin Notice to volunteer firefighters. new text end

new text begin Within 30 days before submitting to the
executive director an aid allocation plan or modification or termination of an aid allocation
plan, the combination department must notify all active volunteer firefighters employed by
the combination department in writing. The notice must include a copy of the aid allocation
plan, modified aid allocation plan, or notice of termination approved by the governing body
of the combination department.
new text end

new text begin Subd. 8. new text end

new text begin Forms authorized. new text end

new text begin The executive director must prescribe a form of petition
that satisfies the requirements of subdivision 6 and may prescribe other forms as required
for the administration of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2022 and thereafter.
new text end

ARTICLE 5

ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION PROVISIONS

Section 1.

Minnesota Statutes 2020, section 354A.12, subdivision 1, is amended to read:


Subdivision 1.

Employee contributions.

(a) The contribution required to be paid by
each member of the St. Paul Teachers Retirement Fund Association is the percentage of
total salary specified below for the applicable association and program:

Program
Percentage of Total Salary
St. Paul Teachers Retirement Fund Association
basic program after June 30, 2016
10 percent
basic program after June 30, deleted text begin2022deleted text endnew text begin 2023
new text end
10.25 percent
coordinated program after June 30, 2016
7.5 percent
coordinated program after June 30, deleted text begin2022deleted text endnew text begin 2023
new text end
7.75 percent

(b) Contributions must be made by deduction from salary and must be remitted directly
to the St. Paul Teachers Retirement Fund Association at least once each month.

(c) When an employee contribution rate changes for a fiscal year, the new contribution
rate is effective for the entire salary paid by the employer with the first payroll cycle reported.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2020, 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), in conjunction with this subdivision than when calculated
under subdivision 4, paragraph (c), in conjunction with subdivision 6. An employee who
retires under the formula annuity before the normal retirement age shall be paid the normal
annuity reduced as described in paragraph (b) if the person retires on or after July 1, 2019,
or in paragraph (c) if the person retires before July 1, 2019, as applicable.

(b) A coordinated member who retires before the normal retirement age and on or after
July 1, 2019, is entitled to receive a retirement annuity calculated using the retirement
annuity formula percentage in subdivision 4, paragraph (d), reduced as described in clause
(1) or (2), as applicable.

(1) If the member retires when the member is younger than age 62 or with fewer than
30 years of service, the annuity must be reduced by an early reduction factor for each year
that the member's age of retirement precedes normal retirement age. The early reduction
factors are four percent per year for deleted text beginagesdeleted text end new text beginmembers whose age at retirement is at least new text end55
deleted text begin throughdeleted text end new text beginbut not yet new text end59 and seven percent per year for deleted text beginages 60 throughdeleted text end new text beginmembers whose age
at retirement is at least 59 but not yet
new text endnormal retirement age. The resulting annuity must be
further adjusted to take into account augmentation as if the employee had deferred receipt
of the annuity until normal retirement age and the annuity were augmented at the applicable
annual rate, compounded annually, from the day the annuity begins to accrue until normal
retirement age. The applicable annual rate is the rate in effect on the employee's effective
date of retirement and shall be considered as fixed for the employee. The applicable annual
rates are the following:

(i) until June 30, 2019, 2.5 percent;

(ii) a rate that changes each month, beginning July 1, 2019, through June 30, 2024, which
is determined by reducing the rate in item (i) to zero in equal monthly increments over the
five-year period; and

(iii) after June 30, 2024, zero percent.

After June 30, 2024, the reduced annuity commencing before normal retirement age
under this clause shall not take into account any augmentation.

(2) If the member retires when the member is at least age 62 or older and has at least 30
years of service, the member is entitled to receive a retirement annuity calculated using the
retirement annuity formula percentage in subdivision 4, paragraph (d), multiplied by the
applicable early retirement factor specified for members "Age 62 or older with 30 years of
service" in the table in paragraph (c).

(c) A coordinated member who retires before the normal retirement age and before July
1, 2019, is entitled to receive a retirement annuity calculated using the retirement annuity
formula percentage in subdivision 4, paragraph (d), 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 must
be determined by linear interpolation between the early retirement factors applicable for
normal retirement ages 65 and 66.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from June 30, 2018.
new text end

ARTICLE 6

VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION PROVISIONS

Section 1.

Minnesota Statutes 2020, section 424A.001, is amended by adding a subdivision
to read:


new text begin Subd. 2b. new text end

new text begin Municipal clerk. new text end

new text begin "Municipal clerk" means the person elected or appointed
to the position of municipal clerk, the chief financial official or chief administrative official
designated to perform such function, or, if there is no such person or designation, the chief
financial official, the chief administrative official, or the person primarily responsible for
managing the finances of a municipality.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2020, section 424A.014, subdivision 1, is amended to read:


Subdivision 1.

Financial report and audit.

(a) new text beginAn annual financial report and audited
financial statements in accordance with paragraphs (c) to (e) must be submitted by
new text endthe board
of new text begintrustees of new text endthe Bloomington Fire Department Relief Association and new text beginthe board of trustees
of
new text endeach volunteer firefighters relief association with new text beginspecial fund new text endassets of at least $500,000
or new text beginspecial fund new text endliabilities of at least $500,000 deleted text beginin the prior year or in any previous yeardeleted text end,
according to deleted text beginthe applicable actuarial valuation or according to the financial report if no
valuation is required, must prepare a financial report covering the special and general funds
of the relief association for the preceding fiscal year, file the
deleted text end new text beginany previous year's new text endfinancial
reportdeleted text begin, and submit financial statementsdeleted text end.

new text begin (b) The board of trustees of a volunteer firefighters relief association with special fund
assets of less than $500,000 and special fund liabilities of less than $500,000, according to
each previous year's financial report, may submit an annual financial report and audited
financial statements in accordance with paragraphs (c) to (e).
new text end

deleted text begin (b)deleted text end new text begin(c) new text endThe financial report must deleted text begincontain financial statements and disclosures that present
the true financial condition of the relief association and the results of relief association
operations in conformity with generally accepted accounting principles and in compliance
with the regulatory, financing, and funding provisions of this chapter and any other applicable
laws
deleted text endnew text begin cover the relief association's special fund and general fund and be in the style and form
prescribed by the state auditor
new text end. The financial report must be countersigned by:

(1) the municipal clerk or clerk-treasurer of the municipality in which the relief
association is located if the relief association deleted text beginis a firefighters' relief association thatdeleted text end is directly
associated with a municipal fire department;

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

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

deleted text begin (c)deleted text end new text begin(d) new text endThe financial report must be retained in the office of the Bloomington Fire
Department Relief Association or the volunteer firefighter relief association for public
inspection and must be filed with the governing body of the government subdivision in
which the associated fire department is located after the close of the fiscal year. One copy
of the financial report must be furnished to the state auditor new text beginon or before June 30 new text endafter the
close of the fiscal year.

deleted text begin (d)deleted text end new text begin(e) new text endAudited financial statements new text beginthat present the true financial condition of the relief
association's special fund and general fund
new text endmust be attested to by a certified public accountant
or by the state auditor and must be filed with the state auditor on or before June 30 after the
close of the fiscal year. Audits must be conducted in compliance with generally accepted
auditing standards and section 6.65 governing audit procedures. The state auditor may accept
deleted text begin this reportdeleted text end new text beginaudited financial statements new text endin lieu of the new text beginfinancial new text endreport required in paragraph
deleted text begin (c)deleted text endnew text begin (a)new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022.
new text end

Sec. 3.

Minnesota Statutes 2020, section 424A.014, subdivision 2, is amended to read:


Subd. 2.

Financial statement.

(a) The board of new text begintrustees of new text endeach volunteer firefighter
relief association that is not required to new text beginand does not choose to new text endfile a financial report and
audit under subdivision 1 must prepare a detailed statement of the financial affairs for the
preceding fiscal year of the relief association's special and general funds in the style and
form prescribed by the state auditor. The detailed statement must show:

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

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

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

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

(5) the accrued liabilities; and

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

(b) The detailed financial statement of the special and general funds required under
paragraph (a) must be certified by a certified public accountant or by the state auditor in
accordance with agreed-upon procedures and forms prescribed by the state auditor. The
accountant must have at least five years of public accounting, auditing, or similar experience
and must not be an active, inactive, or retired member of the relief association or the fire
department.

(c) The detailed financial statement required under paragraph (a) must be countersigned
by:

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

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

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

(d) The volunteer firefighters relief association board must submit a copy of the detailed
financial statement required under paragraph (a) that has been certified by the governing
body of the municipality to the state auditor on or before March 31 after the close of the
fiscal year.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022.
new text end

Sec. 4.

Minnesota Statutes 2020, section 424A.015, subdivision 7, is amended to read:


Subd. 7.

Combined service pensions.

(a) A deleted text beginvolunteer firefighterdeleted text end new text beginmember new text endwith credit
for service as an active firefighter in more than one volunteer firefighters relief association
is entitled to a deleted text beginprorateddeleted text end service pension from each new text beginparticipating new text endrelief association if:

(1) the articles of incorporation or bylaws of the relief associations providenew text begin for such
combined service pensions
new text end;

(2) the applicable requirements of paragraphs (b) deleted text beginand (c)deleted text end new text beginto (e) new text endare met; and

(3) the deleted text beginvolunteer firefighterdeleted text end new text beginmember new text endotherwise qualifies.

(b) A deleted text beginvolunteer firefighterdeleted text end new text beginmember new text endreceiving a deleted text beginprorateddeleted text end service pension under this
subdivision must deleted text beginhave a total combined amount of service credit from the two or more relief
associations of ten years or more, unless the bylaws of every affected relief association
specify less than a ten-year service vesting requirement, in which case, the total amount of
required service credit is the longest service vesting requirement of the relief associations
deleted text endnew text begin
be at least partially vested under the bylaws of the first participating relief association on
the date on which the member terminates active service with that relief association. The
service pension paid from the first participating relief association shall be based on the years
of active service accrued in the first relief association and the vesting percentage applicable
to those years of active service
new text end.

new text begin (c) To receive a service pension from each subsequent relief association, the member
must be at least partially vested under the bylaws of the subsequent relief association, taking
into consideration the member's total service credit accrued in all participating relief
associations to the date the member terminates active service with the subsequent relief
association. The service pension paid from each subsequent relief association shall be based
on the years of active service accrued solely in that relief association and the vesting
percentage applicable to the combined amount of total service credit accrued in all of the
participating relief associations.
new text end

new text begin (d) new text endThe member must have one deleted text beginyeardeleted text end or more new text beginyears new text endof service credit in each new text beginparticipating
new text end relief association. The deleted text beginprorateddeleted text end service pension must be based on:

(1) for defined benefit relief associations, the service pension amount in effect for the
relief association on the date on which new text beginthe member's new text endactive volunteer firefighting services
covered by that relief association terminate; and

(2) for defined contribution relief associations, the member's individual account balance
on the date on which new text beginthe member's new text endactive volunteer firefighting services covered by that
relief association terminate.

deleted text begin (c)deleted text end new text begin(e) new text endTo receive a deleted text beginprorateddeleted text end service pension under this subdivision, the deleted text beginfirefighterdeleted text end
new text begin member new text endmust become a member of the deleted text beginsecond or succeedingdeleted text end new text beginsubsequent relief new text endassociation
deleted text begin and must give notice of membership to the prior associationdeleted text end within two years of the date of
termination of active service with the prior new text beginrelief new text endassociation. deleted text beginThe second ordeleted text endnew text begin If requested
by the member or a
new text end subsequent relief associationnew text begin, the new text end secretary new text beginof each prior relief association
new text end must deleted text begincertify thedeleted text end new text beginprovide written new text endnoticenew text begin to the member and the subsequent relief association
regarding the amount of active service accrued by the member in the prior relief association
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022.
new text end

Sec. 5.

Minnesota Statutes 2020, section 424A.016, subdivision 4, is amended to read:


Subd. 4.

Individual accounts.

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

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

(1) any amounts of fire state aid and police and firefighter retirement supplemental state
aid received by the relief association;

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

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

(i) any former member who terminated active service with the fire department to which
the relief association is associated before meeting the minimum service requirement provided
for in subdivision 2, paragraph (b), and new text begineither new text endhas not returned to active service with the
fire department for a period no shorter than five yearsnew text begin or has died and no survivor benefit
or death benefit is payable
new text end; or

(ii) any deleted text beginretireddeleted text end member who deleted text beginretireddeleted text end new text beginterminated active service new text endbefore deleted text beginobtaining a full
nonforfeitable interest in the amounts credited to
deleted text end new text beginbecoming 100 percent vested in new text endthe
deleted text begin individual memberdeleted text end new text beginmember's new text endaccount under subdivision 2, paragraph (b), and any applicable
provision of the bylaws of the relief association.

(c) In addition, any investment return on the assets of the special fund must be credited
in proportion to the share of the assets of the special fund to the credit of each individual
active member account and inactive member account, unless the inactive member is a
deferred member as defined in subdivision 6.

(d) Administrative expenses of the relief association payable from the special fund may
be deducted from individual accounts in a manner specified in the bylaws of the relief
association.

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

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

(g) Annually, the secretary of the relief association shall certify the individual account
allocations to the state auditor at the same time that the annual financial statement or financial
report and audit of the relief association, whichever applies, is due under section 424A.014.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022.
new text end

Sec. 6.

Minnesota Statutes 2020, section 424A.016, subdivision 6, is amended to read:


Subd. 6.

Deferred service pensions.

(a) A "deferred member" means a member of a
relief association who has separated from active service and membership and has completed
the minimum service and membership requirements in subdivision 2. The requirement that
a member separate from active service and membership is waived for persons who have
discontinued their volunteer firefighter duties and who are employed on a full-time basis
under section 424A.015, subdivision 1.

(b) A deferred member is entitled to receive a deferred service pension when the member
reaches at least age 50, or at least the minimum age specified in the bylaws governing the
relief association if that age is greater than age 50, and makes a valid written application.

(c) A defined contribution relief association must credit interest or additional investment
performance on the deferred lump-sum service pension during the period of deferral for all
deferred members on or after January 1, 2021. deleted text beginInterest must be credited using one of the
following methods, as provided for in the
deleted text end new text beginA defined contribution relief association may
specify in its
new text endbylawsnew text begin the method by which it will credit interest or additional investment
performance to the accounts of deferred members. Such method shall be limited to one of
the three methods provided in this paragraph. In the event the bylaws do not specify a
method, the interest or additional investment performance must be credited using the method
defined in clause (3). The permissible methods are
new text end:

(1) at the investment performance rate actually earned on that portion of the assets if the
deferred benefit amount is invested by the relief association in a separate account established
and maintained by the relief association;

(2) at the investment performance rate actually earned on that portion of the assets if the
deferred benefit amount is invested in a separate investment vehicle held by the relief
association; or

(3) at the investment return on the assets of the special fund of the defined contribution
volunteer firefighters relief association in proportion to the share of the assets of the special
fund to the credit of each individual deferred member account through the accounting date
on which the investment return is recognized by and credited to the special fund.

new text begin (d) Notwithstanding the requirements of section 424A.015, subdivision 6, bylaw
amendments made in accordance with paragraph (c) on or before January 1, 2022, shall
apply to members already in deferred status as of January 1, 2021.
new text end

deleted text begin (d)deleted text end new text begin(e) new text endUnless the bylaws deleted text beginofdeleted text end new text beginprovide differently, the dates that will be used by new text enda relief
association deleted text beginthat has elected to pay interest or additional investment performance on deferred
lump-sum service pensions under paragraph (c) specifies a different interest or additional
investment performance method, including the interest or additional investment performance
period starting date and ending date, the
deleted text end new text beginin determining the creditable amount of new text endinterest or
additional investment performance on a deferred service pension deleted text beginis creditabledeleted text end new text beginshall be new text endas
follows:

(1) for a relief association that has elected to credit interest or additional investment
performance under paragraph (c), clause (1) or (3), beginning on the date that the member
separates from active service and membership and ending on the accounting date immediately
before the deferred member commences receipt of the deferred service pension; or

(2) for a relief association that has elected to credit interest or additional investment
performance under paragraph (c), clause (2), beginning on the date that the member separates
from active service and membership and ending on the date that the separate investment
vehicle is valued immediately before the date on which the deferred member commences
receipt of the deferred service pension.

deleted text begin (e) If the bylaws do not define a method for crediting interest or additional investment
performance, the interest or additional investment performance must be credited using the
method defined in paragraph (c), clause (3).
deleted text end

deleted text begin (f) Until December 31, 2020, a defined contribution relief association is permitted, if its
governing bylaws so provide, to credit interest or additional investment performance on the
deferred lump-sum service pension during the period of deferral using the method set forth
in the bylaws applicable on the date on which each deferred member separated from active
service.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2021.
new text end

Sec. 7.

Minnesota Statutes 2020, section 424A.02, subdivision 3, is amended to read:


Subd. 3.

Flexible service pension maximums.

(a) Annually on or before August 1 as
part of the certification of the financial requirements and minimum municipal obligation
determined under section 424A.092, subdivision 4, or 424A.093, subdivision 5, as applicable,
the secretary or some other official of the relief association designated in the bylaws of each
defined benefit relief association shall calculate and certify to the governing body of the
applicable municipality the average amount of available financing per active covered
firefighter for the most recent three-year period.

The amount of available financing includes any amounts of fire state aid and police and
firefighter retirement supplemental state aid received or receivable by the relief association,
any amounts of municipal contributions to the relief association raised from levies on real
estate or from other available revenue sources exclusive of fire state aid, and one-tenth of
the amount of assets in excess of the accrued liabilities of the relief association calculated
under section 424A.092, subdivision 2; 424A.093, subdivisions 2 and 4; or 424A.094,
subdivision 2
, if any.

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

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

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

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

Minimum Average Amount of Available
Financing per Firefighter
Maximum Lump-Sum Service Pension
Amount Payable for Each Year of Service
$ ...
$ 10
11
20
16
30
23
40
27
50
32
60
43
80
54
100
65
120
77
140
86
160
97
180
108
200
131
240
151
280
173
320
194
360
216
400
239
440
259
480
281
520
302
560
324
600
347
640
367
680
389
720
410
760
432
800
486
900
540
1000
594
1100
648
1200
702
1300
756
1400
810
1500
864
1600
918
1700
972
1800
1026
1900
1080
2000
1134
2100
1188
2200
1242
2300
1296
2400
1350
2500
1404
2600
1458
2700
1512
2800
1566
2900
1620
3000
1672
3100
1726
3200
1753
3250
1780
3300
1820
3375
1834
3400
1888
3500
1942
3600
1996
3700
2023
3750
2050
3800
2104
3900
2158
4000
2212
4100
2265
4200
2319
4300
2373
4400
2427
4500
2481
4600
2535
4700
2589
4800
2643
4900
2697
5000
2751
5100
2805
5200
2859
5300
2913
5400
2967
5500
3021
5600
3075
5700
3129
5800
3183
5900
3237
6000
3291
6100
3345
6200
3399
6300
3453
6400
3507
6500
3561
6600
3615
6700
3669
6800
3723
6900
3777
7000
3831
7100
3885
7200
3939
7300
3993
7400
4047
7500
4101
7600
4155
7700
4209
7800
4263
7900
4317
8000
4371
8100
4425
8200
4479
8300
4533
8400
4587
8500
4641
8600
4695
8700
4749
8800
4803
8900
4857
9000
4911
9100
4965
9200
5019
9300
5073
9400
5127
9500
5181
9600
5235
9700
5289
9800
5343
9900
5397
10,000
5451
10,100
5505
10,200
5559
10,300
5613
10,400
5667
10,500
5721
10,600
5775
10,700
5829
10,800
5883
10,900
5937
11,000
5991
11,100
6045
11,200
6099
11,300
6153
11,400
6207
11,500
6261
11,600
6315
11,700
6369
11,800
6423
11,900
6477
12,000
6531
12,100
6585
12,200
6639
12,300
6693
12,400
6747
12,500
6801
12,600
6855
12,700
6909
12,800
6963
12,900
7017
13,000
7071
13,100
7125
13,200
7179
13,300
7233
13,400
7287
13,500
7341
13,600
7395
13,700
7449
13,800
7503
13,900
7557
14,000
7611
14,100
7665
14,200
7719
14,300
7773
14,400
7827
14,500
7881
14,600
7935
14,700
7989
14,800
8043
14,900
8097
15,000
any amount in excess of
8097
15,000

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

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

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

(h) The method of calculating service pensions must be applied uniformly for all years
of active service. Credit must be given for all years of active service deleted text beginexceptdeleted text endnew text begin, unless the
bylaws of the relief association provide that service credit is not given
new text end fornew text begin:
new text end

new text begin (1) years of active service in excess ofnew text end caps on service credit deleted text beginif so provided in the bylaws
of the relief association
deleted text endnew text begin; or
new text end

new text begin (2) years of active service earned by a former member who:
new text end

new text begin (i) has ceased duties as a volunteer firefighter with the fire department before becoming
vested under subdivision 2; and
new text end

new text begin (ii) has not resumed active service with the fire department and active membership in
the relief association for a period as defined in the relief association's bylaws, of not less
than five years
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022.
new text end

Sec. 8.

Minnesota Statutes 2020, section 424A.05, subdivision 3b, is amended to read:


Subd. 3b.

Authorized administrative expenses from special fund.

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

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

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

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

(4) audit and audit-related services, accounting and accounting-related services, and
actuarial, medical, legal, and investment and performance evaluation expenses;

(5) filing and application fees new text beginnecessary to administer the special fund new text endpayable by the
relief association to federal or other government entities;

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022.
new text end

Sec. 9. new text beginVESTING AND DISTRIBUTION OF NOWTHEN FIREFIGHTERS'
ACCOUNTS IN THE RAMSEY VOLUNTEER FIREFIGHTERS' RELIEF
ASSOCIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Account" means the account established for a member
under the Ramsey relief association, to which an allocation of fire state aid, supplemental
aid, contributions, forfeitures, interest, and investment earnings or losses have been credited
for every year the member was eligible to receive such allocation under the bylaws of the
Ramsey relief association.
new text end

new text begin (b) "Nowthen firefighter" means a firefighter (1) who is or was an employee of the city
of Ramsey assigned to the Nowthen fire station on March 31, 2021; (2) who has an account
in the Ramsey relief association; and (3) whose employment is or was terminated by the
city of Ramsey in 2021.
new text end

new text begin (c) "Ramsey relief association" means the Ramsey Volunteer Firefighters' Relief
Association.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility for allocation, full vesting, and immediate access to
accounts.
new text end

new text begin Notwithstanding any laws or provisions in the bylaws or articles of incorporation
of the Ramsey relief association to the contrary:
new text end

new text begin (1) Any Nowthen firefighter whose employment with the city of Ramsey terminates
during 2021 shall be considered as having worked 12 months of active service for 2021 and
as having the status of active member of the association in good standing on December 31,
2021, for purposes of (i) allocating fire state aid, supplemental aid, contributions, forfeitures,
interest, and investment earnings or losses; and (ii) deducting administrative expenses.
new text end

new text begin (2) The account of each Nowthen firefighter in the Ramsey relief association shall
become 100 percent vested as of the date on which the Nowthen firefighter's employment
with the city of Ramsey is or was terminated.
new text end

new text begin (3) The Nowthen firefighter shall be entitled to elect an immediate distribution of the
Nowthen firefighter's account in the Ramsey relief association, which distribution may be
paid, at the election of the Nowthen firefighter, in a lump sum directly to the Nowthen
firefighter or in a direct rollover to an eligible retirement plan, as defined in Minnesota
Statutes, section 356.635, subdivision 6, designated by the Nowthen firefighter.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10. new text beginFIRE STATE AID FOR NOWTHEN.
new text end

new text begin For the purposes of fire state aid payable in 2022 under Minnesota Statutes, chapter
477B, the city of Nowthen will be considered as having satisfied the requirement under
Minnesota Statutes, section 477B.02, subdivision 2, paragraph (b), to have provided
firefighting services for at least one calendar year, if the city of Nowthen provides
documentation of its fire department being in operation no later than December 31, 2021,
to the commissioner of revenue no later than February 1, 2022.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11. new text beginPARTICIPATION IN THE PERA STATEWIDE VOLUNTEER
FIREFIGHTER PLAN.
new text end

new text begin Notwithstanding Minnesota Statutes, section 353G.05, subdivision 5, paragraph (c),
coverage by the statewide volunteer firefighter plan of the volunteer firefighters employed
by the city of Nowthen shall be effective on the date an election of coverage by the statewide
volunteer firefighter plan is approved by the governing board of the city of Nowthen or, if
later, on the date that the city of Nowthen satisfies all other requirements for coverage by
the statewide volunteer firefighter plan under Minnesota Statutes, section 353G.05.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12. new text beginREPEALER.
new text end

new text begin Laws 2020, chapter 108, article 14, section 1, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 7

DEADLINE FOR AGENCY REQUESTS TO LCPR STAFF TO DRAFT BILLS

Section 1.

new text begin [356B.01] DEFINITIONS.
new text end

new text begin (a) For the purposes of this chapter, each of the following terms has the meaning given,
unless the context of the term indicates otherwise.
new text end

new text begin (b) "Agency" means:
new text end

new text begin (1) an agency as defined in section 14.02, subdivision 2; or
new text end

new text begin (2) the Minnesota state colleges and universities system governed by chapter 136F.
new text end

new text begin (c) "Commission" means the Legislative Commission on Pensions and Retirement.
new text end

new text begin (d) "Pension system" means:
new text end

new text begin (1) the Minnesota State Retirement System;
new text end

new text begin (2) the Public Employees Retirement Association;
new text end

new text begin (3) the Teachers Retirement Association; or
new text end

new text begin (4) the St. Paul Teachers Retirement Fund Association.
new text end

new text begin (e) "Volunteer firefighter relief association" has the meaning given to relief association
in section 424A.001, subdivision 4.
new text end

Sec. 2.

new text begin [356B.02] DRAFTING PENSION AND RETIREMENT BILLS.
new text end

new text begin (a) Notwithstanding section 3C.035, an agency or pension system intending to urge the
legislature to adopt a bill affecting the pension system, one or more plans administered by
the pension system, or one or more volunteer firefighter relief associations; or relating to
pensions or retirement shall deliver the drafting request for the bill to the executive director
of the commission no later than November 1 before the regular session of the legislature at
which adoption will be urged.
new text end

new text begin (b) The executive director of the commission may accept a drafting request from an
agency or a pension system after November 1 if the executive director of the commission
determines that the request relates to a matter that could not reasonably have been foreseen
by November 1 or for which the requester provides other reasonable justification for delay.
new text end

Sec. 3. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2020, section 356B.05, new text end new text begin is repealed.
new text end

Sec. 4. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective the day following final enactment.
new text end

ARTICLE 8

SESSION LAWS FOR INDIVIDUALS

Section 1. new text beginINCREASING THE RETIREMENT BENEFIT FOR CERTAIN RETIRED
STATE EMPLOYEE.
new text end

new text begin Subdivision 1. new text end

new text begin Benefit increase authorized. new text end

new text begin An eligible person described in subdivision
2 shall be paid an increased benefit described in subdivision 3 from the general employees
retirement plan of the Minnesota State Retirement System, notwithstanding any state law
to the contrary.
new text end

new text begin Subd. 2. new text end

new text begin Eligible person defined. new text end

new text begin An eligible person is a person who:
new text end

new text begin (1) was born on June 29, 1955;
new text end

new text begin (2) was first covered by the Minnesota unclassified employees retirement program on
January 12, 1987;
new text end

new text begin (3) was employed by the Minnesota House of Representatives from January 12, 1987,
to January 3, 2011;
new text end

new text begin (4) elected to transfer from the unclassified program to the general employees retirement
plan under Minnesota Statutes, section 352D.02, subdivision 3;
new text end

new text begin (5) was employed by the Department of Labor and Industry from April 27, 2011, to June
1, 2018;
new text end

new text begin (6) received a personalized benefit estimate dated November 17, 2017, and multiple
annual statements from the Minnesota State Retirement System providing estimates of the
eligible person's monthly retirement benefit that erroneously failed to incorporate a reduction
for retirement before normal retirement age; and
new text end

new text begin (7) retired on June 2, 2018, and began to receive monthly retirement annuity payments
that were lower than the amount shown in the personalized benefit estimate dated November
17, 2017.
new text end

new text begin Subd. 3. new text end

new text begin Calculation of benefit increase. new text end

new text begin The increased benefit is equal to the retirement
annuity calculated under Minnesota Statutes, section 352.115, subdivision 3, paragraph (b),
without the reduction for retirement before normal retirement age under Minnesota Statutes,
section 352.116, subdivision 1a. No early retirement factor shall be applied to the eligible
person's increased benefit. The increased benefit is payable to the eligible person retroactively
from the eligible person's retirement date. Any postretirement adjustments, optional annuity,
or reduction for an optional annuity must be calculated based on the increased benefit.
new text end

new text begin Subd. 4. new text end

new text begin Limited applicability. new text end

new text begin This section alters the amount of the benefit the eligible
person is otherwise entitled to under Minnesota Statutes, section 352.115. This section does
not otherwise replace general law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 2. new text beginTRANSFER OF PAST MSRS GENERAL SERVICE CREDIT TO MSRS
CORRECTIONAL.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The following terms as used in this section have the meanings
given in this subdivision:
new text end

new text begin (1) "Correctional plan" means the correctional employees retirement plan of the
Minnesota State Retirement System.
new text end

new text begin (2) "Executive director" means the executive director of the Minnesota State Retirement
System.
new text end

new text begin (3) "General plan" means the general state employees retirement plan of the Minnesota
State Retirement System.
new text end

new text begin (4) "Service credit" means time credited as allowable service under Minnesota Statutes,
section 352.01, subdivision 11, to an eligible person described in subdivision 3.
new text end

new text begin (5) "Transfer period" means the period from March 2, 2011, to March 19, 2020.
new text end

new text begin Subd. 2. new text end

new text begin Transfer of past service credit authorized. new text end

new text begin An eligible person described in
subdivision 3 who makes payment to the correctional employees retirement fund required
under subdivision 4 on or before one year following the effective date of this section, is
entitled to have:
new text end

new text begin (1) the employer payment made on the eligible person's behalf under subdivision 5; and
new text end

new text begin (2) applicable past service credit transferred from the general plan to the correctional
plan for the transfer period under subdivision 6.
new text end

new text begin Subd. 3. new text end

new text begin Eligible person. new text end

new text begin An eligible person is a person who meets all of the following
requirements:
new text end

new text begin (1) The person has service credit in the general plan from August 15, 1990, to March
19, 2020.
new text end

new text begin (2) The person was employed by the Department of Human Services at the St. Peter
State Hospital as a customer services specialist principal from March 2, 2011, until at least
January 27, 2021.
new text end

new text begin (3) The commissioner of human services has certified to the executive director that the
person spent at least 75 percent of the person's working time in direct contact with patients,
during the period of the person's employment under clause (2).
new text end

new text begin (4) The person has service credit in the correctional plan beginning March 20, 2020.
new text end

new text begin Subd. 4. new text end

new text begin Payment by eligible person. new text end

new text begin (a) An eligible person may pay to the executive
director the difference between the employee contribution rate for the general plan and the
employee contribution rate for the correctional plan for the transfer period. The difference
between the two rates must be applied to the eligible person's salary at the time that each
contribution would have been deducted from pay if the eligible person had been covered
by the correctional plan for the transfer period. The payment must include interest at the
applicable annual rate or rates specified in Minnesota Statutes, section 356.59, subdivision
2, calculated from the date that each contribution would have been deducted to the date that
payment is made.
new text end

new text begin (b) The payment under paragraph (a) must be made in a lump sum no later than one year
following the effective date. Upon receipt of the payment, the executive director must notify
the commissioner of human services that payment was made and of the amount owed under
subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Payment by the Department of Human Services. new text end

new text begin If an eligible person makes
the payment under subdivision 4, the Department of Human Services, on behalf of the
eligible person, shall pay to the executive director the actuarial present value of the additional
benefit resulting from the transferred service credit less the payment made under subdivision
4. This amount must be paid by the Department of Human Services in a lump sum within
30 days after the date on which the executive director notifies the commissioner of human
services under subdivision 4.
new text end

new text begin Subd. 6. new text end

new text begin Transfer of assets and service credit. new text end

new text begin (a) If the payments under subdivisions
4 and 5 are made, the executive director must transfer assets from the general state employees
retirement fund to the correctional employees retirement fund in an amount equal to the
actuarial present value of the benefits earned by the eligible person under the general plan
during the transfer period. The transfer of assets must be made within 15 days after receipt
of the payments under subdivisions 4 and 5.
new text end

new text begin (b) Upon transfer of the assets under paragraph (a), the eligible person shall have service
credit in the correctional plan and no service credit in the general plan for the transfer period.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 9

WORK GROUPS FOR 911 TELECOMMUNICATORS AND SUPPLEMENTAL
STATE AID

Section 1. new text beginWORKING GROUP TO STUDY 911 TELECOMMUNICATOR PENSION
BENEFITS.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin (a) The executive director of the Legislative Commission
on Pensions and Retirement shall convene a working group for the purpose of studying 911
telecommunicator pension benefits. The working group must consist of the following:
new text end

new text begin (1) a representative from the Association of Minnesota Counties;
new text end

new text begin (2) a representative from the League of Minnesota Cities;
new text end

new text begin (3) a representative from the Minnesota Inter-County Association;
new text end

new text begin (4) a representative from the Department of Public Safety;
new text end

new text begin (5) a representative from the Minnesota Association of Public Safety Communications
Officials (MN APCO) or the National Emergency Number Association of Minnesota (NENA
of MN);
new text end

new text begin (6) the executive director of the Public Employees Retirement Association, or the
executive director's designee;
new text end

new text begin (7) the executive director of the Minnesota State Retirement System, or the executive
director's designee;
new text end

new text begin (8) a 911 telecommunicator who works for a county or municipality;
new text end

new text begin (9) a 911 telecommunicator who works for the state;
new text end

new text begin (10) a member of the public employees local government correctional service retirement
plan, designated by the board of trustees of the Public Employees Retirement Association;
and
new text end

new text begin (11) a member of the state correctional employees retirement plan, designated by the
board of directors of the Minnesota State Retirement System.
new text end

new text begin (b) In addition to the working group members listed in paragraph (a), the executive
director may invite any other individuals with expertise or experience that the executive
director believes will assist the work of the group to participate as members of or advisors
to the group. The organizations specified in paragraph (a), clauses (1) to (7), must provide
the executive director with a designated member to serve on the working group by June 15,
2021.
new text end

new text begin Subd. 2. new text end

new text begin Duties; report. new text end

new text begin The working group must submit a report to the Legislative
Commission on Pensions and Retirement by March 1, 2022. The report must recommend
whether changes to the pension plan coverage for 911 telecommunicators are appropriate.
If the working group finds that such changes are appropriate, the working group must
recommend changes to the pension plan coverage for 911 telecommunicators. The
recommended changes may include but are not limited to moving 911 telecommunicators
to the correctional plans.
new text end

new text begin Subd. 3. new text end

new text begin First meeting; chair. new text end

new text begin The executive director must convene the first meeting
of the working group by August 1, 2021. At the first meeting, the members must elect a
chair. The working group may conduct meetings remotely.
new text end

new text begin Subd. 4. new text end

new text begin Compensation; lobbying; retaliation. new text end

new text begin (a) Members serve without
compensation.
new text end

new text begin (b) Participation in the working group shall not be considered lobbying under Minnesota
Statutes, chapter 10A.
new text end

new text begin (c) An individual's employer or an association of which an individual is a member shall
not retaliate against the individual because of the individual's participation in the working
group.
new text end

new text begin Subd. 5. new text end

new text begin Administrative support. new text end

new text begin The executive director must provide administrative
support for the working group.
new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin The working group expires June 30, 2022.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2. new text beginSUPPLEMENTAL STATE AID WORK GROUP.
new text end

new text begin (a) The state auditor shall convene a Supplemental State Aid Work Group to discuss
and articulate options to the Legislative Commission on Pensions and Retirement on changing
the method of allocating police and firefighter retirement supplemental state aid under
Minnesota Statutes, section 423A.022.
new text end

new text begin (b) The scope of the work group is limited to supplemental state aid paid to municipalities
other than municipalities solely employing firefighters with retirement coverage provided
by the public employees police and fire retirement plan.
new text end

new text begin (c) The work group must:
new text end

new text begin (i) consider 2021 Senate File No. 609; House File No. 419, including the discussion and
testimony on the bills at the meeting of the commission on March 23, 2021, and
new text end

new text begin (ii) address the disparities in the allocation of fire state aid among fire departments.
new text end

new text begin (d) Members of the work group shall include:
new text end

new text begin (1) two representatives of Minnesota cities, appointed by the League of Minnesota Cities;
new text end

new text begin (2) two representatives of Minnesota towns, appointed by the Minnesota Association of
Townships;
new text end

new text begin (3) two representatives of Minnesota fire chiefs, appointed by the Minnesota State Fire
Chiefs Association;
new text end

new text begin (4) two representatives of Minnesota volunteer firefighters who are active volunteer
firefighters, appointed by the Minnesota State Fire Departments Association;
new text end

new text begin (5) one representative of the State Fire Marshal Division of the Department of Public
Safety, designated by the commissioner of public safety;
new text end

new text begin (6) the executive director of the Public Employees Retirement Association or the
executive director's designee; and
new text end

new text begin (7) one representative of the Department of Revenue, designated by the commissioner
of revenue.
new text end

new text begin (e) Additionally, a staff member of the Legislative Commission on Pensions and
Retirement shall attend the meetings of the work group to provide background information
as requested by members.
new text end

new text begin (f) The state auditor shall chair the work group. The work group may conduct meetings
remotely.
new text end

new text begin (g) The work group shall submit a report by December 31, 2022, to the chair, vice-chair,
and executive director of the Legislative Commission on Pensions and Retirement.
new text end

new text begin (h) The work group expires on June 30, 2023.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2021.
new text end

ARTICLE 10

TECHNICAL CLARIFICATIONS AND CORRECTIONS

Section 1.

Minnesota Statutes 2020, section 353E.02, subdivision 2, is amended to read:


Subd. 2.

Local government correctional service employee.

(a) A local government
correctional service employee, for purposes of subdivision 1, is a person whom the employer
certifies:

(1) is employed in a county correctional institution as a correctional guard or officer, a
joint jailer/dispatcher, or as a supervisor of correctional guards or officers or of joint
jailers/dispatchers;

(2) is directly responsible for the direct security, custody, and control of the county
correctional institution and its inmates;

(3) is expected to respond to incidents within the county correctional institution as part
of the person's regular employment duties and is trained to do so; and

(4) is a "public employee" as defined in section 353.01, but is not a member of the public
employees police and fire deleted text beginfunddeleted text endnew text begin plannew text end.

(b) The certification required under paragraph (a) must be made in writing on a form
prescribed by the executive director of the Public Employees Retirement Association.

(c) A person who was a member of the local government correctional service retirement
plan on May 15, 2000, remains a member of the plan after May 16, 2000, for the duration
of the person's employment in that county correctional institution position, even if the
person's subsequent service in this position does not meet the requirements set forth in
paragraph (a).

Sec. 2.

Minnesota Statutes 2020, section 356.635, subdivision 1, is amended to read:


Subdivision 1.

Retirement benefit commencement.

(a) The retirement benefit of a
member deleted text beginwho has terminated employmentdeleted text end new text beginor participant new text endmust begin new text beginto be distributed or, if
a lump sum, be distributed
new text endno later than deleted text beginthe later ofdeleted text end new text beginthe member's or participant's required
beginning date. "Required beginning date" means
new text endApril 1 of the calendar year following
the new text beginlater of (1) the new text endcalendar year deleted text beginthatdeleted text end new text beginin which new text endthe member new text beginor the participant new text endattains the
deleted text begin federal minimum distributiondeleted text end age deleted text beginunderdeleted text end new text beginspecified in new text endsection 401(a)(9)new text begin(C)(i)(I)new text end of the Internal
Revenue Codenew text begin,new text end or deleted text beginApril 1 ofdeleted text end new text begin(2) new text endthe calendar year deleted text beginfollowing the calendar yeardeleted text end in which the
member deleted text beginterminateddeleted text end new text beginor participant terminates new text endemployment.

(b) new text beginA pension or defined contribution plan shall not be required to obtain new text endthe consent
deleted text begin requirements of section 411(a)(11) of the Internal Revenue Code do not apply to the extent
that a
deleted text end new text beginof a member or participant to a distribution if the new text enddistribution is required to satisfy
the requirements of deleted text beginsection 401(a)(9) of the Internal Revenue Codedeleted text endnew text begin paragraph (a)new text end.

Sec. 3.

Minnesota Statutes 2020, section 424A.01, subdivision 2, is amended to read:


Subd. 2.

Status of substitute volunteer firefighters.

No person who is serving as a
substitute volunteer firefighter may be considered to be a firefighter for purposes of chapter
deleted text begin 69deleted text end new text begin477B new text endor this chapter and no substitute volunteer firefighter is authorized to be a member
of any volunteer firefighters relief association governed by chapter deleted text begin69deleted text end new text begin477B new text endor this chapter.

Sec. 4.

Minnesota Statutes 2020, section 424A.016, subdivision 4, is amended to read:


Subd. 4.

Individual accounts.

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

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

(1) any amounts of fire state aid and police and firefighter retirement supplemental state
aid received by the relief association;

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

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

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

(ii) any retired member who retired before obtaining a full nonforfeitable interest in the
amounts credited to the individual member account under subdivision 2, paragraph (b), and
any applicable provision of the bylaws of the relief association.

(c) In addition, any investment return on the assets of the special fund must be credited
in proportion to the share of the assets of the special fund to the credit of each individual
active member account and inactive member account, unless the inactive member is a
deferred member as defined in subdivision 6.

(d) Administrative expenses of the relief association payable from the special fund may
be deducted from individual accounts in a manner specified in the bylaws of the relief
association.

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

(f) At the time deleted text beginof retirementdeleted text end new text beginthat the payment of a service pension commences new text endunder
subdivision 2 and any applicable provision of the bylaws of the relief association, a retiring
member is entitled to that portion of the assets of the special fund to the credit of the member
in the individual member account which is nonforfeitable under subdivision 3 and any
applicable provision of the bylaws of the relief association based on the number of years
of service to the credit of the retiring member.

(g) Annually, the secretary of the relief association shall certify the individual account
allocations to the state auditor at the same time that the annual financial statement or financial
report and audit of the relief association, whichever applies, is due under section 424A.014.

Sec. 5.

Minnesota Statutes 2020, section 424A.10, subdivision 2, is amended to read:


Subd. 2.

Payment of supplemental benefit.

(a) Upon the payment by a volunteer
firefighters relief association or by the statewide lump-sum volunteer firefighter plan of a
lump-sum distribution to a qualified recipient, the association new text beginor retirement plan, as
applicable,
new text endmust pay a supplemental benefit to the qualified recipient. Notwithstanding any
law to the contrary, the relief association must pay the supplemental benefit out of its special
fund and the statewide lump-sum volunteer firefighter plan must pay the supplemental
benefit out of the statewide lump-sum volunteer firefighter plan. This benefit is an amount
equal to ten percent of the regular lump-sum distribution that is paid on the basis of the
recipient's service as a volunteer firefighter. In no case may the amount of the supplemental
benefit exceed $1,000. A supplemental benefit under this paragraph may not be paid to a
survivor of a deceased active or deferred volunteer firefighter in that capacity.

(b) Upon the payment by a relief association or the retirement plan of a lump-sum
survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased
deferred volunteer firefighter, the association new text beginor retirement plan, as applicable, new text endmust pay a
supplemental survivor benefit to the survivor of the deceased active or deferred volunteer
firefighter from the special fund of the relief association and the retirement plan must pay
a supplemental survivor benefit to the survivor of the deceased active or deferred volunteer
firefighter from the retirement fund if chapter 353G so provides. The amount of the
supplemental survivor benefit is 20 percent of the survivor benefit, but not to exceed $2,000.

(c) For purposes of this section, the term "regular lump-sum distribution" means the
pretax lump-sum distribution excluding any interest that may have been credited during a
volunteer firefighter's period of deferral.

(d) An individual may receive a supplemental benefit under paragraph (a) or under
paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer
firefighter benefit.

Sec. 6.

new text begin [424B.001] APPLICATION OF CHAPTER 424A.
new text end

new text begin This chapter must be read in conjunction with chapter 424A. For the purposes of this
chapter, the definitions and other provisions of chapter 424A apply where not inconsistent
with this chapter.
new text end

Sec. 7.

Minnesota Statutes 2020, section 424B.01, subdivision 3a, is amended to read:


Subd. 3a.

Conversion effective date.

"Conversion effective date" means the date
new text begin designated by the board of trustees under section 424B.13, subdivision 2, new text endon which the
assets of the defined benefit plan have been allocated to accounts under the defined
contribution plan.

Sec. 8.

Minnesota Statutes 2020, section 424B.01, subdivision 3b, is amended to read:


Subd. 3b.

Defined benefit plan.

"Defined benefit plan" means a retirement plan that
provides a retirement benefit deleted text beginthat is a lump sum, the amount of which is determined by
multiplying the applicable lump-sum service pension amount under section 424A.02,
subdivision 3, paragraph (d), by years of service, or a monthly pension, the amount of which
is determined by multiplying the applicable monthly pension amount under section 424A.02,
subdivision 3, paragraph (c), by years of service. A defined benefit plan may provide both
a lump-sum benefit and a monthly pension
deleted text endnew text begin under section 424A.02new text end.

Sec. 9.

Minnesota Statutes 2020, section 424B.01, subdivision 3d, is amended to read:


Subd. 3d.

Defined contribution plan.

"Defined contribution plan" means a retirement
plan that provides a retirement benefit deleted text beginbased on the member's individual account balancedeleted text endnew text begin
under section 424A.016
new text end.

Sec. 10.

Minnesota Statutes 2020, section 424B.01, subdivision 3g, is amended to read:


Subd. 3g.

Member.

(a) "Member" means a person:

(1) who is deleted text begina member ofdeleted text end new text beginor was employed by or who provides or provided services to new text enda
fire department or independent nonprofit firefighting corporation;

(2) who has been credited with at least one year of service toward a retirement benefit
under the retirement plan of a relief association that is affiliated with the fire department or
independent nonprofit firefighting corporation; and

(3) whose retirement benefit under the retirement plan has not yet been distributed in a
lump sum or has not yet begun to be distributed in periodic installments or as a monthly
pension.

(b) A member may be an active firefighter, an inactive firefighter, or a former firefighter
who has a benefit under the retirement plan but has not become eligible to receive the benefit.

Sec. 11.

Minnesota Statutes 2020, section 424B.01, subdivision 3h, is amended to read:


Subd. 3h.

Municipality.

"Municipality" deleted text beginmeans a city or township that has established
a fire department with which the relief association is affiliated, a city or township that has
entered into a contract with an independent nonprofit firefighting corporation with which
the relief association is affiliated, or a city or township that has entered into a joint powers
agreement under section 471.59 with one or more cities or townships to operate a fire
department with which the relief association is affiliated
deleted text endnew text begin has the meaning given in section
424A.001, subdivision 3
new text end. A reference in chapter 424B to municipality in connection with
a power that may be exercised by or a requirement that is imposed on the municipality
means each city or township that is party to a joint powers agreement, unless the joint powers
agreement identifies one city or township with the authority to act on behalf of the other
parties to the agreement or with the responsibility for fulfilling requirements imposed on
the other parties to the agreement.

Sec. 12.

Minnesota Statutes 2020, section 424B.01, subdivision 3i, is amended to read:


Subd. 3i.

Other benefit recipient.

"Other benefit recipient" means:

(1) a person who is entitled to receive all or a portion of the benefit of a deleted text beginmemberdeleted text end
new text begin participant new text endunder a retirement plan due to the person having one of the following relationships
to the deleted text beginmemberdeleted text endnew text begin participantnew text end:

(i) the deleted text beginmember'sdeleted text end new text beginparticipant's new text endsurviving spouse;

(ii) the deleted text beginmember'sdeleted text end new text beginparticipant's new text endformer spouse who is the alternate payee under a state
domestic relations order that meets the requirements of section 414(p) of the Internal Revenue
Code or who is a recipient of a court-ordered distribution of marital property, as provided
in section 518.58; or

(iii) a nonspousal beneficiary of the deleted text beginmemberdeleted text endnew text begin participantnew text end; or

(2) the deleted text beginmember'sdeleted text end new text beginparticipant's new text endestate.

Sec. 13.

Minnesota Statutes 2020, section 424B.01, is amended by adding a subdivision
to read:


new text begin Subd. 3j. new text end

new text begin Participant. new text end

new text begin (a) Under a defined contribution plan, "participant" means any
individual who provides services to or is employed by a municipality or firefighting
corporation and who satisfies the eligibility requirements to receive an allocation to the
individual's account under the defined contribution plan. An individual who becomes a
participant and has an account in the plan to which an allocation was credited shall be
considered a participant until the earlier of the individual's death or the distribution or
forfeiture of the individual's entire account in the plan.
new text end

new text begin (b) Under a defined benefit plan, "participant" means any individual who provides
services to or is employed by a municipality or firefighting corporation and who satisfies
the eligibility requirements to begin to accrue a benefit under the defined benefit plan. An
individual who becomes a participant and has accrued a benefit under the plan shall be
considered a participant until the earlier of the individual's death or the distribution or
forfeiture of the individual's entire accrued benefit under the plan.
new text end

new text begin (c) If an individual satisfies paragraph (a) or (b), the individual must be considered a
participant, notwithstanding other terms used in applicable law or the relief association's
articles or bylaws to describe the individual. A participant includes a member, active member,
deferred member, inactive member, and retiree in pay status.
new text end

Sec. 14.

Minnesota Statutes 2020, section 424B.01, subdivision 4a, is amended to read:


Subd. 4a.

Relief association.

(a) "Relief association" or "volunteer firefighter relief
association" deleted text beginmeans a nonprofit corporation incorporated under or governed by chapter 317A
that is a governmental entity that receives and manages public money to provide retirement
benefits for individuals providing the governmental services of firefighting and emergency
first response, is subject to chapter 424A, and is affiliated with:(1) a fire department
established by municipal ordinance; (2) an independent nonprofit firefighting corporation
incorporated under chapter 317A; or(3) a fire department operated as or by a joint powers
entity. (b) Relief association or volunteer firefighters relief association does not mean the
statewide volunteer firefighter plan governed by chapter 353G
deleted text endnew text begin has the meaning given in
section 424A.001, subdivision 4
new text end.

Sec. 15.

Minnesota Statutes 2020, section 424B.01, subdivision 5b, is amended to read:


Subd. 5b.

Retiree in pay status.

"Retiree in pay status" means a deleted text beginformer member who
left employment or service as an active firefighter, has reached at least age 50, and
deleted text end new text beginparticipant
who
new text endis receiving a monthly pension or periodic installment payments from a retirement
plan.

Sec. 16.

Minnesota Statutes 2020, section 424B.01, subdivision 5c, is amended to read:


Subd. 5c.

Retirement benefit.

"Retirement benefit" means the benefit to which a deleted text beginmemberdeleted text end
new text begin participant new text endis entitled under a retirement plan.

Sec. 17.

Minnesota Statutes 2020, section 424B.04, subdivision 3, is amended to read:


Subd. 3.

Board administration.

The board of trustees must administer the affairs of
the relief association consistent with this chapter and the applicable provisions of chapters
deleted text begin 69,deleted text end 356A, deleted text beginanddeleted text end 424Anew text begin, and 477Bnew text end.

Sec. 18.

Minnesota Statutes 2020, section 424B.13, subdivision 2, is amended to read:


Subd. 2.

Board of trustees.

To initiate and complete a conversion, the board of trustees
must:

(1) approve resolutions that:

(i) state that the defined benefit plan is being converted to a defined contribution plan;

(ii) designate a conversion effective date;

(iii) new text begindirect that each participant, except any retiree in pay status who is receiving a
monthly service pension from a relief association described in section 424A.093, becomes
new text end fully deleted text beginvest all membersdeleted text end new text begin(100 percent) vested new text endas of the conversion effective date in deleted text begineach
member's lump-sum benefit or monthly pension, such that each member is 100 percent
vested in the member's lump-sum
deleted text end new text beginthe participant's retirement new text endbenefitdeleted text begin or monthly pensiondeleted text end;

(iv) if the relief association has a surplus as of the end of the relief association's most
recent fiscal year before the conversion effective date, at the option of the board of trustees,
conditionally increase the lump-sum benefit or monthly pension amount under the defined
benefit plan, as provided under subdivision 4;

(v) determine the method for allocating a surplus;

(vi) adopt a defined contribution plan and approve a plan document that complies with
section 424A.016 and states the terms and conditions for eligibility, vesting, allocation of
contributions, distribution of retirement benefits, and any ancillary benefits; and

(vii) authorize any bylaws amendments needed to incorporate items (i) to (vi) into the
bylaws;

(2) obtain the consent of the municipality or firefighting corporation if required by
subdivision 3;

(3) determine the present value of each deleted text beginmember'sdeleted text end new text beginparticipant's new text endaccrued benefit as of the
conversion effective date as required by subdivision 5;

(4) if there is a surplus, allocate the surplus under a method that complies with subdivision
6;

(5) if there is not a surplus, take the actions required under subdivision 7;

(6) provide the notices required under subdivisions 8 and 9; and

(7) implement the conversion, including the requirements under subdivision 10.

Sec. 19.

Minnesota Statutes 2020, section 424B.13, subdivision 4, is amended to read:


Subd. 4.

Benefit increase.

(a) If the relief association has a surplus as of the end of the
relief association's most recent fiscal year before the conversion effective date, the board
of trustees may approve a resolution that increases the lump-sum benefit or monthly pension
amount or both the lump-sum and monthly pension amount, if the relief association offers
both, and amends the relief association bylaws without the consent of the affiliated
municipality or firefighting corporation, notwithstanding section 424A.02, subdivision 10.
The resulting lump-sum benefit or monthly pension amount is not limited to the maximum
lump-sum benefit or monthly pension amounts under section 424A.02, subdivision 3.

(b) The benefit increase must not cause the liabilities of the retirement plan to exceed
the value of the assets, after taking into account full vesting as required under subdivision
2 and any administrative expenses arising from the conversion.

(c) The board of trustees shall specify whether the benefit increase will apply only to
new text begin participants who are new text endmembers active as of the conversion effective date or whether the
benefit increase will apply to all deleted text beginmembersdeleted text endnew text begin participantsnew text end, including members who are not
active as of the conversion effective date, notwithstanding section 424A.015, subdivision
6
.

(d) The board of trustees' resolution approving an increase in the benefit level must be
considered conditional on there being sufficient assets to fund the increase and must state
that if, as of the date benefits are transferred to the defined contribution plan, there are not
sufficient assets to cover all benefit liabilities at the new higher benefit level, the benefit
level will be reduced until assets equal or are greater than liabilities. The resolution must
state that the new lower benefit level will be considered approved by the board of trustees
without further action by the board.

Sec. 20.

Minnesota Statutes 2020, section 424B.13, subdivision 5, is amended to read:


Subd. 5.

Determination of value of pension benefits and distribution to deleted text beginformer
members
deleted text end new text beginretirees new text endin pay status.

(a) The board of trustees shall determine the present value
of each deleted text beginmember'sdeleted text end new text beginparticipant's new text endaccrued benefit, taking into account the full vesting
requirement under subdivision 2 and any increase in the lump-sum benefit or monthly
pension amount approved under subdivision 4:

(1) using the method set forth in section 424A.092, subdivision 2, for determining a
plan's funded status by calculating the value of each deleted text beginfirefighter'sdeleted text end new text beginparticipant's new text endaccrued benefit;
or

(2) as determined by an actuary retained by the relief association, who meets the definition
of approved actuary under section 356.215, subdivision 1, paragraph (c).

(b) If the retirement plan pays a monthly pension, the board of trustees shall determine
the present value of the remaining payments to any deleted text beginformer memberdeleted text end new text beginretiree in pay status new text endor
beneficiary who is receiving an annuity. Present value shall be determined by an actuary
who meets the definition of approved actuary under section 356.215, subdivision 1, paragraph
(c), retained by the relief association. The relief association shall offer the deleted text beginformer memberdeleted text end
new text begin retiree in pay status new text endor beneficiary receiving the annuity:

(1) an immediate lump-sum distribution of an amount equal to the present value of the
remaining payments as determined by the actuary and permit the deleted text beginformer memberdeleted text end new text beginretiree in
pay status
new text endor beneficiary to elect a lump-sum payment or a direct rollover of the amount to
an eligible retirement plan as permitted under section 356.635, subdivisions 3 to 7, if the
distribution is an eligible rollover distribution as defined in section 356.635, subdivisions
4
and 5; or

(2) continued payments in the same monthly amount under an annuity to be purchased
by the board of trustees from a reputable insurance company licensed to do business in the
state.

Sec. 21.

Minnesota Statutes 2020, section 424B.13, subdivision 6, is amended to read:


Subd. 6.

Allocation of surplus.

(a) If, as of the conversion effective date, the defined
benefit plan has a surplus, the board of trustees shall allocate the surplus as follows:

(1) per capita method: each deleted text beginmember'sdeleted text end new text beginparticipant's new text endaccount will receive the same dollar
amount;

(2) service-based method: each deleted text beginmember'sdeleted text end new text beginparticipant's new text endaccount will receive a share of
the surplus based on the ratio of the deleted text beginmember'sdeleted text end new text beginparticipant's new text endyears of service to the total years
of service for all deleted text beginmembersdeleted text endnew text begin participantsnew text end; or

(3) deleted text beginmemberdeleted text end new text beginparticipant new text endand municipality sharing method under paragraph (b).

(b) The board of trustees may allocate the surplus using the deleted text beginmemberdeleted text end new text beginparticipant new text endand
municipality sharing method in accordance with this paragraph.

(1) For this purpose, "municipality" means "municipality" or "firefighting corporation,"
as applicable.

(2) If the fire department is operated by more than one municipality under a joint powers
agreement:

(i) any consent by the municipality under this paragraph requires consent by each
municipality that is party to the joint powers agreement;

(ii) any payment of surplus to the municipality under this paragraph requires a payment
of a pro rata share of surplus to each municipality that is party to the joint powers agreement;
and

(iii) any restrictions on the use of surplus applies to each municipality that is party to
the joint powers agreement.

(3) Under the deleted text beginmemberdeleted text end new text beginparticipant new text endand municipality sharing method:

(i) first, the municipality will receive a share of the surplus based on the ratio of the
municipal contributions made to the defined benefit relief association over a specified period
of years to the total of fire state aid paid and municipal contributions made to the defined
benefit relief association over the same period; and

(ii) second, any remaining surplus will be allocated to accounts of deleted text beginmembersdeleted text end new text beginparticipants
new text end using the per capita or service-based method.

(4) The board of trustees may impose conditions on the use of the surplus by the
municipality, as follows:

(i) all or a specified portion of the surplus must be contributed back to the defined
contribution relief association over a specified number of future years for allocation to the
accounts of deleted text beginmembersdeleted text end new text beginparticipants new text endeligible for an allocation;

(ii) all or a specified portion of the surplus must be used by the municipality for the
purposes described in section 424A.08, paragraph (a) or (b); or

(iii) all or a specified portion of the surplus must be used by the municipality to provide
health insurance or other welfare benefits for the deleted text beginmembersdeleted text endnew text begin participantsnew text end.

(c) The board of trustees shall specify whether the surplus will be allocated only to
new text begin participants who are new text endmembers deleted text beginwho aredeleted text end active deleted text beginfirefightersdeleted text end as of the conversion effective date
or whether the surplus will be allocated to all deleted text beginmembersdeleted text endnew text begin participantsnew text end, including members
who are not active deleted text beginfirefightersdeleted text end as of the conversion effective date.

Sec. 22.

Minnesota Statutes 2020, section 424B.13, subdivision 8, is amended to read:


Subd. 8.

Notice to deleted text beginmembersdeleted text endnew text begin participantsnew text end.

The board of trustees shall provide notice
to all deleted text beginmembersdeleted text end new text beginparticipants new text endat least 90 days before the conversion effective date. The notice
shall include:

(1) an explanation that the plan is converting from a defined benefit plan to a defined
contribution plan and provide definitions for those terms, the reasons for the conversion,
the conversion effective date, and the procedure to be followed, including fully vesting all
deleted text begin membersdeleted text endnew text begin participantsnew text end;

(2) a summary of the terms of the newly adopted defined contribution plan;

(3) information about any increase in the benefit level and whether the increase applies
to all new text beginparticipants or only active new text endmembersdeleted text begin or only active firefighterdeleted text ends;

(4) a section tailored to each deleted text beginmemberdeleted text end new text beginparticipant new text endthat provides an estimate of the present
value of the deleted text beginmember'sdeleted text end new text beginparticipant's new text endfully vested accrued benefit and the calculation that
resulted in that value;

(5) an estimate of any anticipated surplus and an explanation of the disposition of the
surplus, including, as applicable, a description of the method allocating the surplus among
deleted text begin members'deleted text end new text beginparticipants' new text endaccounts and whether the municipality, each municipality, if more
than one municipality operates the fire department pursuant to a joint powers agreement,
or firefighting corporation will receive any of the surplus and any conditions on its use; and

(6) contact information for one or more members of the board of trustees who will answer
questions and provide a copy of the new defined contribution plan document or a summary,
if requested, or directions to a website for viewing and printing the plan document or
summary.

Sec. 23.

Minnesota Statutes 2020, section 424B.13, subdivision 9, is amended to read:


Subd. 9.

Notice to municipality and state auditor.

The relief association shall provide
notice to the municipality, each municipality, if more than one municipality operates the
fire department pursuant to a joint powers agreement, or firefighting corporation affiliated
with the relief association and the state auditor at the same time as the notice required under
subdivision 8. The notice must include the information required under subdivision 8, except
that the individualized information will be provided as a spreadsheet listing the name of
each deleted text beginfirefighterdeleted text end new text beginparticipant new text endand the corresponding accrued benefit amount.

Sec. 24.

Minnesota Statutes 2020, section 424B.13, subdivision 10, is amended to read:


Subd. 10.

Implementation.

(a) A record-keeping account shall be established for each
deleted text begin memberdeleted text end new text beginparticipant new text endunder the defined contribution plan to which is recorded the value of
the deleted text beginfirefighter'sdeleted text end new text beginparticipant's new text endfully vested accrued benefit as determined as of the conversion
effective date and the amount of any surplus allocated to the deleted text beginfirefighter'sdeleted text end new text beginparticipant's new text endaccount.

(b) In no event may the value of a deleted text beginmember'sdeleted text end new text beginparticipant's new text endaccount in the defined
contribution plan be less as of the day following the conversion effective date than the
present value of the deleted text beginmember'sdeleted text end new text beginparticipant's new text endaccrued benefit as of the day before the conversion
effective date.

Sec. 25.

Minnesota Statutes 2020, section 424B.22, subdivision 1, is amended to read:


Subdivision 1.

Application.

(a) Notwithstanding any laws to the contrary, this section
applies to:

(1) the termination of a retirement plan established and administered by a relief
association, whether or not the relief association is also dissolved or eliminated; and

(2) the dissolution of a relief association that is not consolidating with another relief
association under sections 424B.01 to 424B.10.

This section does not apply to the dissolution of a relief association or the termination of a
retirement plan that occurs due to the change in retirement coverage from a retirement plan
administered by a relief association to the Public Employees Retirement Association
statewide volunteer firefighter plan under section 353G.06.

(b) To terminate a retirement plan, the board of trustees must comply with subdivisions
3, 5 to 11, and, if desired, subdivision 4.

(c) To dissolve a relief association, the board of trustees of the relief association must:

(1) terminate the retirement plan in accordance with deleted text beginthis sectiondeleted text endnew text begin paragraph (b)new text end;

(2) determine all legal obligations of the special and general funds of the relief association,
as required by subdivision 5;

(3) take the actions required by subdivision 12; and

(4) comply with the requirements governing dissolution of nonprofit corporations under
chapter 317A.

(d) A relief association that terminates its retirement plan must liquidate its special fund
as provided in subdivision 8, but need not liquidate its general fund if the relief association
is not being dissolved.

Sec. 26.

Minnesota Statutes 2020, section 424B.22, subdivision 2, is amended to read:


Subd. 2.

Involuntary dissolution and termination.

(a) A relief association is dissolved
and the retirement plan administered by the relief association is terminated automatically
if:

(1) the fire department affiliated with a relief association is dissolved by action of the
governing body of the municipality in which the fire department is located or by the
governing body of the independent nonprofit firefighting corporation, whichever applies;
or

(2) the fire department affiliated with a relief association has terminated the employment
or services of all active deleted text beginfirefighters covered bydeleted text end new text beginmembers of new text endthe relief association.

(b) An involuntary termination of a relief association under this subdivision is effective
on the December 31 that is at least eight months after the date on which the fire department
is dissolved or the termination of employment or services of all active deleted text beginfirefightersdeleted text end new text beginmembers
of the relief association
new text endoccurs.

(c) The retirement plan administered by a relief association is terminated automatically
if the relief association is dissolved, effective on the date of the dissolution of the relief
association.

Sec. 27.

Minnesota Statutes 2020, section 424B.22, subdivision 3, is amended to read:


Subd. 3.

Retirement plan termination date, full vesting, and forfeitures.

(a) Unless
subdivision 2 applies, the effective date of the termination of a retirement plan is the new text begindate
approved by the board of trustees of the relief association. If the board of trustees does not
approve a termination date, the effective date of the termination of a retirement plan is the
new text end effective date of the dissolution of the relief association or, if the relief association is not
being dissolved, the end of the calendar year in which the new text begintermination of new text endemployment or
services of all active deleted text beginfirefighters has been terminated, unless the board of trustees of the
relief association approves a different termination date
deleted text endnew text begin members of the relief association
occurs
new text end.

(b) As of the earlier of the retirement plan termination date or the date on which the
new text begin termination of new text endemployment or services of all active deleted text beginfirefighters have been terminateddeleted text endnew text begin
members of the relief association occurs
new text end, each deleted text beginmemberdeleted text end new text beginparticipant new text endbecomes fully (100
percent) vested in the deleted text beginmember'sdeleted text end new text beginparticipant's new text endretirement benefit under the retirement plan,
notwithstanding any bylaws or laws to the contrary, except deleted text beginas provided in paragraph (c)deleted text endnew text begin for
any retiree in pay status who is receiving a monthly service pension from a relief association
described in section 424A.093
new text end.

(c) If the relief association is a defined contribution relief association, the account of
each deleted text beginmemberdeleted text end new text beginparticipant new text endwho becomes 100 percent vested under paragraph (b) shall include
an allocation of any forfeiture that is required, under the bylaws of the relief association, to
occur on or as of the end of the calendar year during which the termination of the retirement
plan is effective, if the deleted text beginmemberdeleted text end new text beginparticipant new text endis entitled to an allocation of forfeitures under
the bylaws. Any account so forfeited shall not be included in the retirement benefits that
become 100 percent vested under paragraph (b).

Sec. 28.

Minnesota Statutes 2020, section 424B.22, subdivision 4, is amended to read:


Subd. 4.

Benefit increase.

(a) Notwithstanding section 424A.02, subdivision 10, the
board of trustees of a relief association may increase the benefit amount under a defined
benefit relief association without the consent of the affiliated municipality or independent
nonprofit firefighting corporation, as provided in this subdivision.

(b) If the retirement plan being terminated is a defined benefit plan, the board of trustees
may approve an amendment to the bylaws of the relief association to increase the lump-sum
or monthly pension amount or both the lump and monthly pension amount, if the relief
association offers both, up to 125 percent of the largest maximum lump-sum service pension
amount or service pension amount payable per month in effect under paragraph (c) or (d),
respectively, of section 424A.02, subdivision 3, without regard to the relief association's
minimum average amount of available financing per firefighter. The amount by which the
lump-sum or monthly pension amount is increased must not cause the liabilities of the
retirement plan to exceed the value of the assets, after taking into account full vesting as
required under subdivision 3 and any administrative expenses.

(c) The board of trustees shall specify whether the benefit increase will apply to only
new text begin participants who are new text endmembers active as of the date of the termination of the retirement plan
or whether the benefit increase will apply to all deleted text beginmembersdeleted text endnew text begin participantsnew text end, including members
who are not active as of the plan termination date.

Sec. 29.

Minnesota Statutes 2020, section 424B.22, subdivision 5, is amended to read:


Subd. 5.

Determination of assets and liabilities.

(a) The board of trustees shall determine
the following as of the date of termination of the retirement plan:

(1) the fair market value of the assets of the special fund;

(2) the present value of each deleted text beginmember'sdeleted text end new text beginparticipant's new text endaccrued benefit, taking into account
full vesting under subdivision 3 and any increased lump-sum or monthly benefit level
approved under subdivision 4;

(3) the present value of any benefit remaining to be paid to each retiree in pay status, if
any; and

(4) administrative expenses incurred or reasonably anticipated to be incurred through
the date on which all retirement benefits have been distributed or transferred or, if later, the
effective date of the dissolution of the relief association.

(b) The board of trustees shall compile a schedule that includes the following information:

(1) the name of each deleted text beginmember anddeleted text end new text beginparticipant, including each new text endretiree in pay status to
whom a benefit or pension is or will be owed;

(2) the name of each other benefit recipient to whom a benefit or pension is or will be
owed; and

(3) for each individual described in clauses (1) and (2), the amount of the benefit or
pension to which the individual is entitled under the bylaws of the relief association, taking
into account the changes required or permitted by this section, the corresponding number
of years of service on which the benefit or pension is based, and the earliest date on which
the benefit or pension would have been payable under the bylaws of the relief association.

(c) If the relief association is dissolving, in addition to the determination under paragraph
(a) for the retirement plan, the board of trustees shall determine, as of the effective date of
the dissolution of the relief association, the legal obligations of the general fund of the relief
association.

Sec. 30.

Minnesota Statutes 2020, section 424B.22, subdivision 7, is amended to read:


Subd. 7.

Allocation of surplus.

(a) If the retirement plan is a defined benefit plan and
if, after completing the determination of assets, liabilities, and administrative expenses under
subdivision 5, there is a surplus, the board of trustees shall transfer to the affiliated
municipality the lesser of (1) the amount of the surplus, or (2) the sum of all required
contributions, without investment earnings or interest thereon, made by the municipality to
the relief association during the year in which the termination of the retirement plan occurs
or during the preceding nine years.

(b) If the affiliated municipality did not make any required contributions to the relief
association during the current or preceding nine years or if, after the transfer described in
paragraph (a), there is surplus remaining, the relief association and the municipality will
mutually agree on an allocation between them of the remaining surplus.

(c) If, within 180 days of the date of termination of the retirement plan, the municipality
and relief association have not reached an agreement on the allocation of the surplus under
paragraph (b), then 50 percent of the surplus shall be retained by the relief association and
50 percent of the surplus shall be transferred to the affiliated municipality.

(d) Any surplus retained by the relief association under paragraph (c) shall be allocated
among all deleted text beginmembersdeleted text end new text beginparticipants new text endeligible to share in the surplus in the same proportion that
the present value of the accrued benefit for each eligible deleted text beginmemberdeleted text end new text beginparticipant new text endbears to the
total present value of the accrued benefits of all deleted text beginmembersdeleted text end new text beginparticipants new text endeligible to share in
the surplus, and each eligible deleted text beginmember'sdeleted text end new text beginparticipant's new text endbenefit, as determined under subdivision
5, paragraph (a), clause (2), shall be increased by the deleted text beginmember'sdeleted text end new text beginparticipant's new text endshare of the
surplus. The board of trustees shall determine eligibility to share in the surplus, which may
include deleted text beginany of the following, in addition to firefighters active as of the date on which
members became 100 percent vested: (1) inactive firefighters; (2) former firefighters with
a deferred benefit under the retirement plan; and(3) retirees in pay status
deleted text end new text beginall participants
new text end and any deleted text beginother firefightersdeleted text end new text beginformer participants new text endwho, within the last three years or such other
number of years as determined by the board of trustees, separated from active service and
deleted text begin (i)deleted text end received their retirement benefitdeleted text begin, or (ii) began to receive distribution of a retirement
benefit in installments or as a monthly pension
deleted text end.

If the board of trustees decides to include deleted text beginthe individuals described in clause (3)deleted text end new text beginformer
participants
new text endin the allocation of the surplus, the board of trustees shall modify the method
for allocating the surplus to take into account deleted text beginsuch individualsdeleted text endnew text begin the former participantsnew text end.

(e) Any amount of surplus transferred to the affiliated municipality under this subdivision
may only be used for the purposes described in section 424A.08, paragraph (a) or (b).

Sec. 31.

Minnesota Statutes 2020, section 424B.22, subdivision 8, is amended to read:


Subd. 8.

Immediate distribution of retirement benefits and payment of all other
obligations.

(a) The board of trustees shall liquidate the assets of the special fund and pay
retirement benefits and administrative expenses under the retirement plan within 210 days
after the effective date of the termination of the retirement plan.

(b) If the retirement plan is a defined benefit plan that pays lump-sum benefits or a
defined contribution plan, without regard to whether the deleted text beginmemberdeleted text end new text beginparticipant new text endhas attained
age 50, each deleted text beginmemberdeleted text end new text beginparticipant new text endand other benefit recipient shall be permitted to elect an
immediate distribution or a direct rollover of the deleted text beginmember'sdeleted text end new text beginparticipant's new text endbenefit to an eligible
retirement plan as permitted under section 356.635, subdivisions 3 to 7, if the benefit is an
eligible rollover distribution as defined in section 356.635, subdivisions 4 and 5.

(c) If the retirement plan is a defined benefit plan that pays monthly pension benefits,
the board of trustees shall, at the election of the deleted text beginmemberdeleted text end new text beginparticipant new text endor other benefit recipient,
purchase an annuity contract under section 424A.015, subdivision 3, naming the deleted text beginmemberdeleted text end
new text begin participant new text endor other benefit recipient, as applicable, as the insured or distribute a lump-sum
amount that is equal to the present value of the monthly pension benefits to which the
deleted text begin memberdeleted text end new text beginparticipant new text endor other benefit recipient is entitled. If an annuity is elected by the
deleted text begin memberdeleted text end new text beginparticipant new text endor other benefit recipient, the annuity shall provide for commencement
at a date elected by the insured, to be paid as an annuity for the life of the insured. Legal
title to the annuity contract shall be transferred to the insured. If a lump sum is elected, the
option under paragraph (b) to take an immediate distribution or a direct rollover shall apply.

(d) The board of trustees shall complete the distribution of all assets of the special fund
by making any remaining distributions or transfers as required under subdivision 9 on behalf
of deleted text beginmembersdeleted text end new text beginparticipants new text endor other benefit recipients who cannot be located or are unresponsive
and paying any remaining administrative expenses related to the termination of the plan.

Sec. 32.

Minnesota Statutes 2020, section 424B.22, subdivision 9, is amended to read:


Subd. 9.

Missing deleted text beginmembersdeleted text endnew text begin participantsnew text end.

(a) For purposes of this subdivision, the terms
defined in this subdivision have the meanings given them.

(b) "Retirement benefit" means:

(1) the deleted text beginmember'sdeleted text end new text beginparticipant's new text endaccount balance if the retirement plan is a defined
contribution plan;

(2) the deleted text beginmember'sdeleted text end new text beginparticipant's new text endlump-sum benefit if the retirement plan is a defined benefit
plan that pays a lump sum; or

(3) an amount equal to the present value of the deleted text beginmember'sdeleted text end new text beginparticipant's new text endbenefit if the
retirement plan is a defined benefit plan that pays a monthly annuity.

(c) "Individual retirement account" means an account that satisfies the requirements of
section 408(a) of the Internal Revenue Code which is established by an officer of the relief
association in the name of the deleted text beginmemberdeleted text end new text beginparticipant new text endor other benefit recipient at a federally
insured financial institution.

(d) If the board of trustees cannot locate a deleted text beginmemberdeleted text end new text beginparticipant new text endor other benefit recipientdeleted text begin
or receives no response to an offer to distribute a retirement benefit
deleted text end, the board of trustees
shall make a diligent effort to obtain a current address or other contact information as
follows:

(1) send a notice to the address on file for the deleted text beginmemberdeleted text end new text beginparticipant new text endor other benefit recipient
using certified mail;

(2) check with the Minnesota State Fire Department Association, the municipality, and
any other employer of the deleted text beginmemberdeleted text endnew text begin participantnew text end;

(3) check with the deleted text beginmember'sdeleted text end new text beginparticipant's new text enddesignated beneficiary on file with the relief
association; and

(4) use one or more of the Internet search tools that are free of charge.

(e) deleted text beginIf the board of trustees is unable to locate the member or other benefit recipient after
taking the actions described in paragraph (d),
deleted text end The board of trustees shall transfer the
retirement benefit to an individual retirement account or consider the retirement benefit
abandoned and deposit funds in the amount of the retirement benefit with the commissioner
of commerce under chapter 345deleted text begin. The board of trustees may deposit a retirement benefit with
the commissioner of commerce under chapter 345
deleted text end, notwithstanding any laws to the contrary,
including section 345.381new text begin, if the board of trustees is unable to locate the participant or other
benefit recipient after taking the actions described in paragraph (d) or the participant or
other benefit recipient does not elect to receive or rollover a retirement benefit to which the
participant or other benefit recipient is entitled
new text end.

Sec. 33.

Minnesota Statutes 2020, section 424B.22, subdivision 10, is amended to read:


Subd. 10.

Supplemental benefits.

Within 60 days after the distribution of benefits under
subdivision 8, the municipality or deleted text beginindependent nonprofitdeleted text end firefighting corporation with which
the fire department is affiliated shall pay supplemental benefits under section 424A.10 to
each deleted text beginmemberdeleted text end new text beginparticipant new text endand survivor who satisfies the requirements of section 424A.10,
subdivision
2, if the deleted text beginmemberdeleted text end new text beginparticipant new text endis at least age 50. The commissioner of revenue
shall reimburse the municipality or independent nonprofit firefighting corporation for all
supplemental benefits paid as provided in section 424A.10, subdivision 3.

Sec. 34.

Minnesota Statutes 2020, section 477B.01, subdivision 1, is amended to read:


Subdivision 1.

Scope.

Unless the language or context clearly indicates that a different
meaning is intended, the following words and terms, for the purposes of this chapter and
chapters 423A and 424A, have the meanings given to them.new text begin The following definitions shall
also apply for the purpose of chapter 424A, unless the word or term is defined in chapter
424A, in which case such word or term shall be as defined in chapter 424A for the purpose
of chapter 424A.
new text end

Sec. 35. new text beginREVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber the provisions of Minnesota Statutes listed in
column A to the references listed in column B, using the subdivision heading listed in
column C. The revisor of statutes may alter the renumbering to incorporate statutory changes
made during the 2021 legislative session. The revisor shall also make necessary
cross-reference changes in Minnesota Statutes consistent with the renumbering in this
instruction.
new text end

new text begin Column A
new text end
new text begin Column B
new text end
new text begin Column C
new text end
new text begin 424A.02, subd. 3,
paragraphs (a) and (b)
new text end
new text begin 424A.02, subd. 2a,
paragraphs (a) and (b)
new text end
new text begin Average amount of available
financing.
new text end
new text begin 424A.02, subd. 3,
paragraph (c)
new text end
new text begin 424A.02, subd. 2b
new text end
new text begin Maximum monthly amount.
new text end
new text begin 424A.02, subd. 3,
paragraph (d)
new text end
new text begin 424A.02, subd. 2c
new text end
new text begin Maximum lump-sum amount.
new text end
new text begin 424A.02, subd. 3,
paragraphs (e) to (h)
new text end
new text begin 424A.02, subd. 3,
paragraphs (a) to (d)
new text end
new text begin Determining the maximum pension
benefit.
new text end

Sec. 36. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 35 are effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: S1712-2

No active language found for: 356B.05

Repealed Minnesota Session Laws: S1712-2

Laws 2020, chapter 108, article 14, section 1 by Laws 2021, chapter 22, article 6, section 12

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