2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to retirement; various retirement plans; 1.3 allowing the Hennepin county administrator to approve 1.4 certain Hennepin county supplemental retirement 1.5 participant requests; providing for an increase in the 1.6 compensation for the executive secretary of the 1.7 Minneapolis firefighters relief association; providing 1.8 an ad hoc postretirement adjustment to Eveleth police 1.9 and fire trust fund retirees and survivors; providing 1.10 for continued retirement coverage for the Red Wing 1.11 learning center staff; modifying the Minneapolis 1.12 firefighters relief association death refund 1.13 provision; authorizing a coverage election change by a 1.14 certain Bemidji city council member; providing 1.15 retroactive coverage under the qualified part-time 1.16 teacher program for certain Minneapolis and Duluth 1.17 teachers; including St. Paul port authority employees 1.18 in PERA-general coverage; allowing prior service 1.19 credit purchases by certain St. Paul port authority 1.20 employees; extending the sunset of various service 1.21 credit purchase provisions to 2003; providing an 1.22 expiration date for a prior MTRFA service credit 1.23 purchase; authorizing the Minnesota state colleges and 1.24 universities system to formulate an early retirement 1.25 incentive program; providing various local public 1.26 employee and state government executive and 1.27 legislative branch early retirement incentives; 1.28 providing enhanced teachers retirement association 1.29 extended leave provisions; extending supplemental 1.30 benefit plan status to local plumbers' and 1.31 pipefitters' union pension plans; correcting a mistake 1.32 in the flexible service pension maximum financial 1.33 requirements for monthly benefit volunteer firefighter 1.34 relief associations; providing an additional deferred 1.35 volunteer firefighter service pensioner interest 1.36 payment option; revising ratifying monthly benefit 1.37 service pension amounts for the White Bear Lake fire 1.38 department relief association; authorizing a former 1.39 St. Louis Park police officer to purchase service 1.40 credit covered by a local police relief association; 1.41 authorizing purchases of service credit for unreported 1.42 sabbatical leaves; authorizing a refund to a state 1.43 employee on a medical leave; amending Minnesota 1.44 Statutes 2002, sections 122A.46, subdivision 9; 1.45 353.01, subdivisions 2d, 6; 353.028, subdivision 2; 1.46 353D.01, subdivision 2; 353D.02, by adding a 2.1 subdivision; 353F.02, subdivision 4; 354.094, 2.2 subdivision 1; 356.24, subdivision 1; 356.55, 2.3 subdivision 7; 383B.49; 383B.493; 423C.03, subdivision 2.4 3; 423C.08; 424A.02, subdivision 3; Laws 1999, chapter 2.5 222, article 16, section 16, as amended; Laws 2000, 2.6 chapter 461, article 4, section 4; Laws 2000, chapter 2.7 461, article 12, section 20, as amended; Laws 2000, 2.8 chapter 461, article 19, section 6; Laws 2001, First 2.9 Special Session chapter 10, article 6, section 21, as 2.10 amended; proposing coding for new law in Minnesota 2.11 Statutes, chapter 136F; repealing Minnesota Statutes 2.12 2002, sections 354.541; 354A.109. 2.13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.14 ARTICLE 1 2.15 MINNESOTA STATE COLLEGES 2.16 AND UNIVERSITIES SYSTEM 2.17 EARLY RETIREMENT INCENTIVES 2.18 Section 1. [136F.475] [MNSCU; EARLY SEPARATION INCENTIVE 2.19 PROGRAM AUTHORIZATION.] 2.20 (a) Notwithstanding any provision of law to the contrary, 2.21 the board of trustees of the Minnesota state colleges and 2.22 universities may offer a targeted early retirement incentive 2.23 program for its employees. 2.24 (b) The early separation incentive program may include one 2.25 or more of the following: 2.26 (1) employer-paid postseparation health, medical, and 2.27 dental insurance; 2.28 (2) cash incentives; and 2.29 (3) employer contributions to the postretirement health 2.30 care savings plan established under section 352.98. Any 2.31 postseparation health or medical insurance coverage for 2.32 incentive recipients who are age 65 or older must be coordinated 2.33 with federal Medicare benefits. 2.34 (c) The board of trustees of the Minnesota state colleges 2.35 and universities system shall establish the eligibility 2.36 requirements for system employees to receive an incentive. The 2.37 type and the amount of the incentive to be offered may vary by 2.38 employee classification, as specified by the board. 2.39 (d) The president of a college or university, or the 2.40 chancellor with respect to the office of the chancellor, 2.41 consistent with the board's program provisions under paragraph 3.1 (b) and with the board's eligibility requirements under 3.2 paragraph (c), may designate specific departments or programs at 3.3 the college or university whose employees are eligible to be 3.4 offered the incentive program. 3.5 (e) Acceptance of the offered incentive must be voluntary 3.6 on the part of the employee and must be in writing. The 3.7 incentive may only be offered at the sole discretion of the 3.8 president of the applicable college or university. The eligible 3.9 employee's agreement must include a certification that the 3.10 individual would not have voluntarily separated from service 3.11 within two years of the separation date if the early separation 3.12 incentive was not offered. 3.13 (f) A decision by the president of a college or university 3.14 or the chancellor with respect to the office of the chancellor, 3.15 not to offer an incentive may not be grieved. 3.16 (g) The cost of the incentive is payable solely by the 3.17 college or university or the office of the chancellor on whose 3.18 behalf the president or chancellor offered the incentive. If a 3.19 college or university is merged, the remaining cost of any early 3.20 retirement incentive must be borne by the successor 3.21 institution. If a college or university is closed, the 3.22 remaining cost of any early retirement incentive must be borne 3.23 by the board of trustees of the Minnesota state colleges and 3.24 universities system. 3.25 (h) A person must be at least 55 years of age to be 3.26 eligible to receive an early retirement incentive under this 3.27 section. 3.28 Sec. 2. [136F.476] [APPLICATION OF OTHER LAWS.] 3.29 (a) Unilateral implementation of section 136F.475 by the 3.30 board of trustees of the Minnesota state colleges and 3.31 universities system or by a president of a college or university 3.32 is not an unfair labor practice under chapter 179A. 3.33 (b) The authority in section 136F.475 for a college or 3.34 university to pay health, medical, and dental insurance premiums 3.35 for former employees granted an early retirement incentive is 3.36 not subject to the limits of section 179A.20, subdivision 2a. 4.1 Sec. 3. [REPORTING.] 4.2 Each college or university that offers early retirement 4.3 incentives under section 1 shall annually report to the 4.4 Minnesota state colleges and universities board the types of 4.5 early retirement incentives offered, the number of individuals 4.6 receiving each type of incentive, and the cost or savings 4.7 resulting from the incentives. The Minnesota state colleges and 4.8 universities board shall report summary data on the incentives 4.9 offered under section 1 to the legislative commission on 4.10 pensions and retirement. 4.11 Sec. 4. [SEPARATION FROM SERVICE.] 4.12 Except in urgent situations approved by the board or for 4.13 employees who are covered by Minnesota Statutes, sections 4.14 136F.48 and 354.445, a person receiving an early retirement 4.15 incentive under section 1 shall not be reemployed by the 4.16 Minnesota state colleges and universities for at least three 4.17 years following retirement under section 1. 4.18 Sec. 5. [EFFECTIVE DATE; EXPIRATION.] 4.19 Sections 1 to 4 are effective on the day following final 4.20 enactment and expire on June 30, 2008. 4.21 ARTICLE 2 4.22 MINNESOTA STATE RETIREMENT SYSTEM 4.23 EARLY RETIREMENT INCENTIVES 4.24 Section 1. [EARLY RETIREMENT INCENTIVE.] 4.25 Subdivision 1. [ELIGIBILITY.] (a) An appointing authority 4.26 in the executive or legislative branch of state government may 4.27 offer the early retirement incentive in this section to an 4.28 employee who: 4.29 (1) has at least five years of allowable service in one or 4.30 a combination of the funds listed in Minnesota Statutes, section 4.31 356.30, subdivision 3, and upon retirement is immediately 4.32 eligible for a retirement annuity from one or more of these 4.33 funds; and 4.34 (2) terminates state service after the effective date of 4.35 this section and before September 1, 2003. 4.36 (b) For purposes of this section, the executive branch of 5.1 state government includes the departments of the state listed in 5.2 Minnesota Statutes, section 15.01, any board, committee, 5.3 council, authority, or advisory task force that is funded wholly 5.4 or primarily from the general fund, the metropolitan council, 5.5 the Minnesota state colleges and universities system, the 5.6 University of Minnesota, or the Minnesota historical society. 5.7 (c) For purposes of this section, the executive branch of 5.8 state government does not include the state board of investment, 5.9 the Minnesota state retirement system, the public employees 5.10 retirement association, or the teachers retirement association. 5.11 Subd. 2. [INCENTIVE.] (a) For an employee eligible under 5.12 subdivision 1, the employer may provide an amount up to $15,000, 5.13 to be used: 5.14 (1) for an employee who terminates state service after the 5.15 effective date of this section and on or before July 15, 2003, 5.16 for deposit in the employee's account in the health care savings 5.17 plan established by Minnesota Statutes, section 352.98; or 5.18 (2) for an employee who terminates state service after July 5.19 15, 2003, and before September 1, 2003: 5.20 (i) notwithstanding Minnesota Statutes, section 352.01, 5.21 subdivision 11, 356.55, or 356.551, for purchase of allowable 5.22 service credit for unperformed service that is sufficient to 5.23 enable the employee to retire under Minnesota Statutes, section 5.24 352.116, subdivision 1, paragraph (b); or 5.25 (ii) for purchase of a lifetime annuity or annuity for a 5.26 specific number of years from the state unclassified retirement 5.27 program to provide additional benefits under Minnesota Statutes, 5.28 section 352D.06, subdivision 1. 5.29 (b) An employee is eligible for the payment under paragraph 5.30 (a), clause (2), item (i), if the employee uses money from a 5.31 deferred compensation account that, combined with the payment 5.32 under clause (2), item (i), would be sufficient to purchase 5.33 enough service credit to qualify for retirement under Minnesota 5.34 Statutes, section 352.116, subdivision 1, paragraph (b). 5.35 Subd. 3. [DESIGNATION OF POSITIONS; EMPLOYER 5.36 DISCRETION.] (a) Before offering an incentive under this 6.1 section, an appointing authority must designate the job 6.2 classifications or positions within job classifications that 6.3 qualify for the incentive. The appointing authority may modify 6.4 this designation at any time. For agencies in the executive 6.5 branch, the positions or groups of positions and the individuals 6.6 to which the agency intends to offer early retirement incentives 6.7 must be reviewed by and approved by the commissioner of finance 6.8 prior to the incentive offer being made. If the commissioner of 6.9 finance finds that the salary savings intended to be obtained 6.10 from the early retirement incentive offer exceed the amount of 6.11 the early retirement incentive to be offered, the commissioner 6.12 shall approve the offer. Before January 15, 2004, the 6.13 commissioner shall provide a report to the legislative 6.14 commission on pensions and retirement indicating the number of 6.15 individuals receiving each type of incentive, and the cost and 6.16 savings resulting from the incentive. 6.17 (b) Designation of positions eligible for the incentive 6.18 under this section, participation of individual employees, and 6.19 the amount of the payment under this section are at the sole 6.20 discretion of the appointing authority. Unilateral 6.21 implementation of this section by the employer is not an unfair 6.22 labor practice under Minnesota Statutes, chapter 179A. 6.23 Subd. 4. [STATUS AS ALLOWABLE SERVICE CREDIT.] Any 6.24 allowable service credit purchased as provided in subdivision 2, 6.25 paragraph (a), clause (2), item (i), must be considered to be 6.26 allowable service credit under Minnesota Statutes, section 6.27 352.01, subdivision 11. 6.28 Subd. 5. [PROHIBITION ON REHIRE OR RETENTION AS 6.29 CONSULTANT.] A person who accepts an early retirement incentive 6.30 under this section is prohibited for a period of three years 6.31 from being rehired by any state employer or from being retained 6.32 as a consultant by a state employing agency. 6.33 Sec. 2. [PHASED RETIREMENT.] 6.34 (a) This section applies to a state employee who: 6.35 (1) on the effective date of this section is regularly 6.36 scheduled to work 1,040 or more hours a year in a position 7.1 covered by the Minnesota state retirement system general 7.2 employees retirement plan, correctional plan, or unclassified 7.3 plan; 7.4 (2) enters into an agreement with the appointing authority 7.5 to work a reduced schedule that is both (i) a reduction of at 7.6 least 25 percent from the number of regularly scheduled work 7.7 hours; and (ii) 1,040 hours or less in the covered position; and 7.8 (3) at the time of entering into the agreement under clause 7.9 (2), meets the age and service requirements necessary to receive 7.10 a retirement annuity from the plan. 7.11 (b) Notwithstanding any law to the contrary, for service 7.12 under an agreement entered into under paragraph (a), an employee 7.13 agrees to terminate public employment satisfying requirements 7.14 necessary for the commencement of the retirement annuity, and 7.15 agrees to reemployment with the applicable employer under terms 7.16 and conditions specified in this section. If an eligible public 7.17 employee commences receipt of the annuity, the provisions of 7.18 Minnesota Statutes, section 352.115, subdivision 10, governing 7.19 annuities of reemployed annuitants, shall not apply for the 7.20 duration of the agreement. 7.21 (c) The amount of hours worked, the work schedule, and the 7.22 duration of the phased retirement employment must be mutually 7.23 agreed to by the employee and the appointing authority. The 7.24 appointing authority may not require a person to waive any 7.25 rights under a collective bargaining agreement as a condition of 7.26 participation under this section. The appointing authority has 7.27 sole discretion to determine if and the extent to which phased 7.28 retirement under this section is available to an employee. 7.29 (d) Notwithstanding any law to the contrary, a person may 7.30 not earn service credit in the Minnesota state retirement system 7.31 for employment covered under this section, and employer 7.32 contributions and payroll deductions for the retirement fund 7.33 must not be made based on earnings of a person working under 7.34 this section. No change shall be made to a monthly annuity or 7.35 retirement allowance based on employment under this section. 7.36 (e) A person who works under this section is a member of 8.1 the appropriate bargaining unit; is covered by the appropriate 8.2 collective bargaining contract or compensation plan; and is 8.3 eligible for health care coverage as provided in the collective 8.4 bargaining contract or compensation plan. 8.5 (f) An agreement under this section may apply only to work 8.6 through June 30, 2005. 8.7 Sec. 3. [VOLUNTARY HOUR REDUCTION PLAN.] 8.8 (a) This section applies to a state employee who: 8.9 (1) on the effective date of this section is regularly 8.10 scheduled to work 1,040 or more hours a year in a position 8.11 covered by a pension plan administered by the Minnesota state 8.12 retirement system; and 8.13 (2) enters into an agreement with the appointing authority 8.14 to work a reduced schedule of 1,040 hours or less in the covered 8.15 position. 8.16 (b) Notwithstanding any law to the contrary, for service 8.17 under an agreement entered into under paragraph (a), 8.18 contributions may be made to the applicable plan of the 8.19 Minnesota state retirement system as if the employee had not 8.20 reduced hours. The employee must pay the additional employee 8.21 contributions and the employer must pay the additional employer 8.22 contributions necessary to bring the service credit and salary 8.23 up to the level prior to the voluntary reduction in hours. 8.24 Contributions must be made in a time and manner prescribed by 8.25 the executive director of the Minnesota state retirement system. 8.26 (c) The amount of hours worked, the work schedule, and the 8.27 duration of the voluntary hour reduction must be mutually agreed 8.28 to by the employee and the appointing authority. The appointing 8.29 authority may not require a person to waive any rights under a 8.30 collective bargaining agreement as a condition of participation 8.31 under this section. The appointing authority has sole 8.32 discretion to determine if and the extent to which voluntary 8.33 hour reduction under this section is available to an employee. 8.34 (d) A person who works under this section is a member of 8.35 the appropriate bargaining unit; is covered by the appropriate 8.36 collective bargaining contract or compensation plan; and is 9.1 eligible for health care coverage as provided in the collective 9.2 bargaining contract or compensation plan. 9.3 (e) An agreement under this section may apply only to work 9.4 through June 30, 2005. 9.5 Sec. 4. [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 9.6 Appointing authorities in state government may allow each 9.7 employee to take unpaid leaves of absence for up to 1,040 hours 9.8 between June 1, 2003, and June 30, 2005. Each appointing 9.9 authority approving such a leave shall allow the employee to 9.10 continue accruing vacation and sick leave, be eligible for paid 9.11 holidays and insurance benefits, accrue seniority, and accrue 9.12 service credit and credited salary in the state retirement plans 9.13 as if the employee had actually been employed during the time of 9.14 leave. An employee covered by the unclassified plan may 9.15 voluntarily make both the employee and employer contributions to 9.16 the unclassified plan during the leave of absence. If the leave 9.17 of absence is for one full pay period or longer, any holiday pay 9.18 shall be included in the first payroll warrant after return from 9.19 the leave of absence. The appointing authority shall attempt to 9.20 grant requests for the unpaid leaves of absence consistent with 9.21 the need to continue efficient operation of the agency. 9.22 However, each appointing authority shall retain discretion to 9.23 grant or refuse to grant requests for leaves of absence and to 9.24 schedule and cancel leaves, subject to the applicable provisions 9.25 of collective bargaining agreements and compensation plans. 9.26 Sec. 5. [RELATIONSHIP OF SECTIONS.] 9.27 (a) An employee covered by a phased retirement agreement 9.28 under section 2 may not be covered by the voluntary hour 9.29 reduction provisions of section 3 or by a voluntary unpaid leave 9.30 of absence agreement under section 4 during the same time period 9.31 or any later time period. 9.32 (b) An employee covered by the voluntary hour reduction 9.33 provisions of section 3: 9.34 (1) may not be covered by a phased retirement agreement 9.35 under section 2 during the same time period, but may be covered 9.36 by a phased retirement agreement under section 2 during a later 10.1 time period; and 10.2 (2) may be covered by the voluntary leave of absence 10.3 provision of section 4 during an earlier or later time period. 10.4 (c) An employee may receive the early retirement incentive 10.5 in section 1 after being covered under section 2, 3, or 4. An 10.6 employee who receives an incentive under section 1 may not later 10.7 be covered by section 2, 3, or 4. 10.8 Sec. 6. [PROGRAM APPLICATION REQUIREMENTS.] 10.9 (a) No agreement between an eligible employee and a 10.10 governmental subdivision under this article is effective unless 10.11 the employee acknowledges acceptance of the terms of the 10.12 agreement in writing on a form prescribed by the Minnesota state 10.13 retirement system executive director. 10.14 (b) A copy of the signed agreement must be transmitted to 10.15 the Minnesota state retirement system executive director within 10.16 30 days after the agreement is executed. 10.17 (c) To be eligible for an early retirement incentive under 10.18 section 1 or 2, the eligible employee's signed agreement must 10.19 include a certification that the individual would not have 10.20 voluntarily separated from service within two years of the 10.21 separation date if the early separation incentive was not 10.22 offered. 10.23 Sec. 7. [EMPLOYEE EXCLUSION.] 10.24 This article does not apply to any employee who provides 10.25 service to more than one employer or appointing authority as 10.26 specified in this article, or who earns service credit during 10.27 the time period covered by this article, except as specified in 10.28 this article, in any Minnesota public employee plan other than a 10.29 volunteer fire plan. 10.30 Sec. 8. [EXCLUSION DUE TO BENEFIT RECEIPT.] 10.31 Unless otherwise specified, this article does not apply to 10.32 an individual who is receiving a retirement annuity from any 10.33 retirement plan enumerated in Minnesota Statutes, section 10.34 356.30, or from any retirement plan governed by Minnesota 10.35 Statutes, section 69.77. 10.36 Sec. 9. [EXCLUSION FOR SOCIAL SECURITY BENEFIT 11.1 ELIGIBILITY.] 11.2 This article does not apply if the individual is eligible 11.3 for the receipt of an unreduced benefit under the federal old 11.4 age, survivors, and disability insurance program. 11.5 Sec. 10. [EFFECTIVE DATE.] 11.6 Sections 1 to 9 are effective on the day following final 11.7 enactment. 11.8 ARTICLE 3 11.9 PUBLIC EMPLOYEES RETIREMENT ASSOCIATION 11.10 EARLY RETIREMENT INCENTIVES 11.11 Section 1. [APPLICATION.] 11.12 Unless otherwise specified, this article applies to 11.13 governmental subdivisions as specified in Minnesota Statutes, 11.14 section 353.01, subdivision 6, and public employees providing 11.15 service to the applicable employer and covered by the public 11.16 employees retirement association general plan or police and fire 11.17 plan under Minnesota Statutes, chapter 353, or the public 11.18 employees retirement association local government correctional 11.19 service retirement plan under Minnesota Statutes, chapter 353E. 11.20 Sec. 2. [EMPLOYEE EXCLUSION.] 11.21 This article does not apply to any employee who provides 11.22 service to more than one governmental subdivision, or who earns 11.23 service credit during the time period covered by this article in 11.24 any Minnesota public employee plan, other than a volunteer fire 11.25 plan or a plan administered by the public employees retirement 11.26 association under conditions specified in this article. 11.27 Sec. 3. [PHASED RETIREMENT.] 11.28 (a) This section applies to a public employee who: 11.29 (1) on the effective date of this section is regularly 11.30 scheduled to work 1,040 or more hours a year in a position 11.31 covered by an applicable retirement plan; 11.32 (2) enters into an agreement with the governmental 11.33 subdivision to work a reduced schedule that is both: 11.34 (i) a reduction of at least 25 percent from the number of 11.35 regularly scheduled work hours; and 11.36 (ii) 1,040 hours or less in the covered position; and 12.1 (3) at the time of entering into the agreement under clause 12.2 (2), meets the age and service requirements necessary to receive 12.3 a retirement benefit from the applicable plan. 12.4 (b) Notwithstanding any law to the contrary, for service 12.5 under an agreement entered into under paragraph (a), an employee 12.6 agrees to terminate public employment meeting requirements of 12.7 Minnesota Statutes, section 353.01, subdivision 11a, and agrees 12.8 to reemployment with the applicable governmental subdivision 12.9 under terms and conditions specified in this section. If an 12.10 eligible public employee commences receipt of an annuity from a 12.11 plan specified in section 1, the provisions of Minnesota 12.12 Statutes, section 353.37, governing annuities of reemployed 12.13 annuitants shall not apply for the duration of the agreement. 12.14 (c) The number of hours worked, the work schedule, and the 12.15 duration of the phased retirement employment must be mutually 12.16 agreed to by the employee and the governmental subdivision. The 12.17 governmental subdivision may not require a person to waive any 12.18 rights under a collective bargaining agreement as a condition of 12.19 participation in this section. The governmental subdivision has 12.20 sole discretion to determine if and the extent to which phased 12.21 retirement under this section is available to an employee. 12.22 (d) Notwithstanding any law to the contrary, a person may 12.23 not earn service credit in the public employees retirement 12.24 association for employment covered under this section, and 12.25 employer contributions and payroll deductions for the retirement 12.26 fund must not be made based on earnings of a person working 12.27 under this section. No change shall be made to a monthly 12.28 annuity or retirement allowance based on employment under this 12.29 section. 12.30 (e) A person who works under this section and meets the 12.31 definition of public employee under Minnesota Statutes, section 12.32 179A.03, subdivision 14, is a member of the appropriate 12.33 bargaining unit, is covered by the appropriate collective 12.34 bargaining contract or personnel policy, and is eligible for 12.35 health care coverage as provided in the collective bargaining 12.36 contract or personnel policy. 13.1 (f) An agreement under this section may apply only to work 13.2 through June 30, 2005. 13.3 Sec. 4. [VOLUNTARY HOUR REDUCTION PLAN.] 13.4 (a) This section applies to a public employee who: 13.5 (1) on the effective date of this section is regularly 13.6 scheduled to work 1,040 or more hours a year in a position 13.7 covered by a pension plan administered by the public employees 13.8 retirement association; and 13.9 (2) enters into an agreement with a governmental 13.10 subdivision to work a reduced schedule of 1,040 or less hours in 13.11 the covered position. 13.12 (b) Notwithstanding any law to the contrary, for service 13.13 under an agreement entered into under paragraph (a), 13.14 contributions may be made to the applicable plan of the public 13.15 employees retirement association as if the employee had not 13.16 reduced hours. The employee must pay the employee contributions 13.17 and the employer must pay employer and additional employer 13.18 contributions necessary to bring the service credit and salary 13.19 up to the level prior to the voluntary reduction in hours. 13.20 Contributions must be made in a time and manner prescribed by 13.21 the executive director of the public employees retirement 13.22 association. 13.23 (c) The number of hours worked, the work schedule, and the 13.24 duration of the voluntary hour reduction must be mutually agreed 13.25 to by the employee and the governmental subdivision. The 13.26 governmental subdivision may not require a person to waive any 13.27 rights under a collective bargaining agreement as a condition of 13.28 participation under this section. The governmental subdivision 13.29 has sole discretion to determine if and the extent to which 13.30 voluntary hour reduction under this section is available to an 13.31 employee. 13.32 (d) A person who works under this section and meets the 13.33 definition of public employee under Minnesota Statutes, section 13.34 179A.03, subdivision 14, is a member of an appropriate 13.35 bargaining unit, is covered by an appropriate collective 13.36 bargaining contract or personnel policy, and is eligible for 14.1 health care coverage as provided in a collective bargaining 14.2 contract or personnel policy. 14.3 (e) An agreement under this section may apply only to work 14.4 through June 30, 2005. 14.5 Sec. 5. [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 14.6 (a) Governmental subdivisions may allow employees to take 14.7 unpaid leaves of absence between June 1, 2003, and June 30, 14.8 2005. Each governmental subdivision approving a leave shall 14.9 allow the employee to continue accruing vacation and sick leave, 14.10 be eligible for paid holidays and insurance benefits, accrue 14.11 seniority, and accrue service credit and credited salary in the 14.12 public employees retirement association as if the employee had 14.13 actually been employed during the time of leave. If the leave 14.14 of absence is for one full pay period or longer, any holiday pay 14.15 shall be included in the first payroll warrant after return from 14.16 the leave of absence. The governmental subdivision shall 14.17 attempt to grant requests for the unpaid leaves of absence 14.18 consistent with the need to continue efficient operation of the 14.19 governmental subdivision. However, each governmental 14.20 subdivision shall retain discretion to grant or refuse to grant 14.21 requests for leaves of absence and to schedule and cancel 14.22 leaves, subject to the applicable provisions of collective 14.23 bargaining agreements and personnel policy. 14.24 (b) To receive eligible service credit, the member shall 14.25 pay an amount equal to the applicable employee contribution 14.26 rates. If an employee pays the employee contribution for the 14.27 period of the leave under this section, the governmental 14.28 subdivision must pay the employer contribution and the 14.29 additional employer contribution. The governmental subdivision 14.30 may, at its discretion, pay employee, employer, and additional 14.31 employer contributions to the public employees retirement 14.32 association for the period of leave under this section. 14.33 Contributions must be made in a time and manner prescribed by 14.34 the executive director of the public employees retirement 14.35 association. 14.36 Sec. 6. [DESIGNATION OF POSITIONS; EMPLOYER DISCRETION.] 15.1 Before agreeing to an option under this article, a 15.2 governmental subdivision must designate the job classifications 15.3 or positions within job classifications that qualify for each 15.4 option. The governmental subdivision may modify this 15.5 designation at any time. Designation of positions eligible for 15.6 the options and participation of individual employees under this 15.7 act are at the sole discretion of the governmental subdivision. 15.8 Implementation of this act by the employer is not an unfair 15.9 labor practice under Minnesota Statutes, chapter 179A, or an 15.10 unfair discriminatory practice under Minnesota Statutes, chapter 15.11 363. 15.12 Sec. 7. [PROGRAM APPLICATION REQUIREMENTS.] 15.13 (a) No agreement between an eligible public employee and a 15.14 governmental subdivision under this article is effective unless 15.15 the employee acknowledges acceptance of the terms of the 15.16 agreement in writing on a form prescribed by the public 15.17 employees retirement association executive director. 15.18 (b) A copy of the signed agreement must be transmitted to 15.19 the public employees retirement association executive director 15.20 within 30 days after the agreement is executed. 15.21 Sec. 8. [RELATIONSHIP OF SECTIONS.] 15.22 (a) An employee covered by a phased retirement agreement 15.23 under section 3 may not be covered by the voluntary hour 15.24 reduction provisions of section 4 or by a voluntary unpaid leave 15.25 of absence agreement under section 5 during the same time period 15.26 or any later time period. 15.27 (b) An employee covered by the voluntary hour reduction 15.28 provisions of section 4: 15.29 (1) may not be covered by a phased retirement agreement 15.30 under section 3 during the same time period, but may be covered 15.31 by a phased retirement agreement under section 3 during a later 15.32 time period; and 15.33 (2) may be covered by the voluntary leave of absence 15.34 provision of section 5 during an earlier or later time period. 15.35 Sec. 9. [GOVERNMENTAL SUBDIVISION LIMITATION.] 15.36 Notwithstanding Minnesota Statutes, section 353.01, 16.1 subdivision 6, paragraph (b), to the contrary, for purposes of 16.2 this article the public employees retirement association is not 16.3 a governmental subdivision. 16.4 Sec. 10. [EXCLUSION DUE TO BENEFIT RECEIPT.] 16.5 Unless otherwise specified, this article does not apply to 16.6 an individual who is receiving a retirement annuity from any 16.7 retirement plan enumerated in Minnesota Statutes, section 16.8 356.30, or from any retirement plan governed by Minnesota 16.9 Statutes, section 69.77. 16.10 Sec. 11. [EXCLUSION FOR SOCIAL SECURITY BENEFIT 16.11 ELIGIBILITY.] 16.12 This article does not apply if the individual is eligible 16.13 for the receipt of an unreduced benefit under the federal old 16.14 age, survivors, and disability insurance program. 16.15 Sec. 12. [EFFECTIVE DATE.] 16.16 Sections 1 to 11 are effective on the day following final 16.17 enactment. 16.18 ARTICLE 4 16.19 TEACHERS RETIREMENT ASSOCIATION 16.20 EXTENDED LEAVE PROVISIONS 16.21 Section 1. Minnesota Statutes 2002, section 122A.46, 16.22 subdivision 9, is amended to read: 16.23 Subd. 9. [BENEFITS.] A teacher on an extended leave of 16.24 absence shall receive all of the health, accident, medical, 16.25 surgical and hospitalization insurance or benefits, for both the 16.26 teacher and the teacher's dependents, for which the teacher 16.27 would otherwise be eligible if not on an extended leave. A 16.28 teacher shall receive the coverage if such coverage is available 16.29 from the school district's insurer, if the teacher requests the 16.30 coverage, and if the teacher either (a) reimburses the district 16.31 for the full amount of the premium necessary to maintain the 16.32 coverage within one monthfollowingpreceding the district's 16.33 payment of the premium, or (b) if the district is wholly or 16.34 partially self-insured, pays the district, according to a 16.35 schedule agreed upon by the teacher and the school board, an 16.36 amount determined by the school board to be the amount that 17.1 would be charged for the coverage chosen by the teacher if the 17.2 school board purchased all health, accident, medical, surgical 17.3 and hospitalization coverage for its teachers from an 17.4 insurer. A school district may enter into an agreement with the 17.5 exclusive bargaining representative of teachers in the district 17.6 where the district agrees to pay all or a portion of the premium 17.7 for such coverage. Any such agreement must include a sunset of 17.8 eligibility to qualify for the payment and must not be a 17.9 continuing part of the collective bargaining agreement. 17.10 Sec. 2. Minnesota Statutes 2002, section 354.094, 17.11 subdivision 1, is amended to read: 17.12 Subdivision 1. [SERVICE CREDIT CONTRIBUTIONS.] Upon 17.13 granting any extended leave of absence under section 122A.46 or 17.14 136F.43, the employing unit granting the leave must certify the 17.15 leave to the association on a form specified by the executive 17.16 director. A member granted an extended leave of absence under 17.17 section 122A.46 or 136F.43 may pay employee contributions and 17.18 receive allowable service credit toward annuities and other 17.19 benefits under this chapter, for each year of the leave, 17.20 provided that the member and the employing board make the 17.21 required employer contribution in any proportion they may agree 17.22 upon, during the period of the leave. The employer may enter 17.23 into an agreement with the exclusive bargaining representative 17.24 of teachers in the district under which all or a portion of the 17.25 employee's contribution is paid by the employer. Any such 17.26 agreement must include a sunset of eligibility to qualify for 17.27 the payment and must not be a continuing part of the collective 17.28 bargaining agreement. The leave period must not exceed five 17.29 years. A member may not receive more than five years of 17.30 allowable service credit under this section. The employee and 17.31 employer contributions must be based upon the rates of 17.32 contribution prescribed by section 354.42 for the salary 17.33 received during the year immediately preceding the extended 17.34 leave. Payments for the years for which a member is receiving 17.35 service credit while on extended leave must be made on or before 17.36 the later of June 30 of each fiscal year for which service 18.1 credit is received or within 30 days after first notification of 18.2 the amount due, if requested by the member, is given by the 18.3 association. No payment is permitted after the following 18.4 September 30. Payments received after June 30 must include 18.5 interest at an annual rate of 8.5 percent from June 30 through 18.6 the end of the month in which payment is received. 18.7 Notwithstanding the provisions of any agreements to the 18.8 contrary, employee and employer contributions may not be made to 18.9 receive allowable service credit if the member does not have 18.10 full reinstatement rights as provided in section 122A.46 or 18.11 136F.43, both during and at the end of the extended leave. 18.12 Sec. 3. [EFFECTIVE DATE.] 18.13 (a) Sections 1 and 2 are effective on the day following 18.14 final enactment and apply to agreements in effect or entered 18.15 into after that date. 18.16 (b) The amendments to sections 1 and 2 are repealed on July 18.17 1, 2005. 18.18 ARTICLE 5 18.19 PUBLIC EMPLOYEES RETIREMENT 18.20 ASSOCIATION CHANGES 18.21 Section 1. Minnesota Statutes 2002, section 353.01, 18.22 subdivision 2d, is amended to read: 18.23 Subd. 2d. [OPTIONAL MEMBERSHIP.] (a) Membership in the 18.24 association is optional by action of the individual employee for 18.25 the following public employees who meet the conditions set forth 18.26 in subdivision 2a: 18.27 (1) members of the coordinated plan who are also employees 18.28 of labor organizations as defined in section 353.017, 18.29 subdivision 1, for their employment by the labor organization 18.30 only if they elect to have membership under section 353.017, 18.31 subdivision 2; 18.32 (2) persons who are elected or persons who are appointed to 18.33 elected positions other than local governing body elected 18.34 positions who elect to participate by filing a written election 18.35 for membership; 18.36 (3) members of the association who are appointed by the 19.1 governor to be a state department head and who elect not to be 19.2 covered by the general state employees retirement plan of the 19.3 Minnesota state retirement system under section 352.021;and19.4 (4) city managers as defined in section 353.028, 19.5 subdivision 1, who do not elect to be excluded from membership 19.6 in the association under section 353.028, subdivision 2; and 19.7 (5) employees of the port authority of the city of St. Paul 19.8 who were at least age 45 on January 1, 2003, and who elect to 19.9 participate by filing a written election for membership. 19.10 (b) Membership in the association is optional by action of 19.11 the governmental subdivision for the employees of the following 19.12 governmental subdivisions under the conditions specified: 19.13 (1) the Minnesota association of townships if the board of 19.14 the association, at its option, certifies to the executive 19.15 director that its employees are to be included for purposes of 19.16 retirement coverage, in which case the status of the association 19.17 as a participating employer is permanent; and 19.18 (2) a county historical society if the county in which the 19.19 historical society is located, at its option, certifies to the 19.20 executive director that the employees of the historical society 19.21 are to be county employees for purposes of retirement coverage 19.22 under this chapter. The status as a county employee must be 19.23 accorded to all similarly situated county historical society 19.24 employees and, once established, must continue as long as a 19.25 person is an employee of the county historical society. 19.26 (c) For employees who are covered by paragraph (a), clause 19.27 (1), (2), or (3), or covered by paragraph (b), if the necessary 19.28 membership election is not made, the employee is excluded from 19.29 retirement coverage under this chapter. For employees who are 19.30 covered by paragraph (a), clause (4), if the necessary election 19.31 is not made, the employee must become a member and have 19.32 retirement coverage under this chapter. The option to become a 19.33 member, once exercised under this subdivision, may not be 19.34 withdrawn until termination of public service as defined under 19.35 subdivision 11a. 19.36 Sec. 2. Minnesota Statutes 2002, section 353.01, 20.1 subdivision 6, is amended to read: 20.2 Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 20.3 subdivision" means a county, city, town, school district within 20.4 this state, or a department or unit of state government, or any 20.5 public body whose revenues are derived from taxation, fees, 20.6 assessments or from other sources. 20.7 (b) Governmental subdivision also means the public 20.8 employees retirement association, the league of Minnesota 20.9 cities, the association of metropolitan municipalities, public 20.10 hospitals owned or operated by, or an integral part of, a 20.11 governmental subdivision or governmental subdivisions, the 20.12 association of Minnesota counties, the metropolitan intercounty 20.13 association, the Minnesota municipal utilities association, the 20.14 metropolitan airports commission, the Minneapolis employees 20.15 retirement fund for employment initially commenced after June 20.16 30, 1979, the range association of municipalities and schools, 20.17 soil and water conservation districts, economic development 20.18 authorities created or operating under sections 469.090 to 20.19 469.108, the port authority of the city of St. Paul, the Spring 20.20 Lake Park fire department, incorporated, and the Dakota county 20.21 agricultural society. 20.22 (c) Governmental subdivision does not mean any municipal 20.23 housing and redevelopment authority organized under the 20.24 provisions of sections 469.001 to 469.047; or any port authority 20.25 organized under sections 469.048 to 469.089 other than the port 20.26 authority of the city of St. Paul; or any hospital district 20.27 organized or reorganized prior to July 1, 1975, under sections 20.28 447.31 to 447.37 or the successor of the district, nor the 20.29 Minneapolis community development agency. 20.30 Sec. 3. Minnesota Statutes 2002, section 353.028, 20.31 subdivision 2, is amended to read: 20.32 Subd. 2. [ELECTION.] (a) A city manager may elect to be 20.33 excluded from membership in the association. The election of 20.34 exclusion must be made within six months following the 20.35 commencement of employment, in writing on a form prescribed by 20.36 the executive director, and must be approved by a resolution of 21.1 the governing body of the city. The election of exclusion is 21.2 not effective until it is filed with the executive director. 21.3 Membership of a city manager in the association ceases on the 21.4 date the written election is received by the executive director 21.5 or upon a later date specified.The election to be excluded21.6from membership must include a provision agreeing that the21.7person will not at any time in the future seek authorization to21.8purchase service credit for any period of excluded service and21.9is irrevocable.Employee and employer contributions made on 21.10 behalf of a person exercising the option to be excluded from 21.11 membership under this section must be refunded in accordance 21.12 with section 353.27, subdivision 7. 21.13 (b) A city manager who has elected exclusion under this 21.14 subdivision may elect to revoke that action by filing a written 21.15 notice with the executive director. The notice must be on a 21.16 form prescribed by the executive director and must be approved 21.17 by a resolution of the governing body of the city. Membership 21.18 of the city manager in the association resumes prospectively 21.19 from the date of the first day of the pay period for which 21.20 contributions were deducted or, if pay period coverage dates are 21.21 not provided, the date on which the notice of revocation or 21.22 contributions are received in the office of the association, 21.23 provided that the notice of revocation is received by the 21.24 association within 60 days of the receipt of contributions. 21.25 (c) An election under paragraph (b) is irrevocable. Any 21.26 election under paragraph (a) or (b) must include a statement 21.27 that the individual will not seek authorization to purchase 21.28 service credit for any period of excluded service. 21.29 Sec. 4. Minnesota Statutes 2002, section 353D.01, 21.30 subdivision 2, is amended to read: 21.31 Subd. 2. [ELIGIBILITY.] (a) Eligibility to participate in 21.32 the defined contribution plan is available to: 21.33 (1) elected local government officials of a governmental 21.34 subdivision who elect to participate in the plan under section 21.35 353D.02, subdivision 1, and who, for the elected service 21.36 rendered to a governmental subdivision, are not members of the 22.1 public employees retirement association within the meaning of 22.2 section 353.01, subdivision 7; 22.3 (2) physicians who, if they did not elect to participate in 22.4 the plan under section 353D.02, subdivision 2, would meet the 22.5 definition of member under section 353.01, subdivision 7; 22.6 (3) basic and advanced life support emergency medical 22.7 service personnel employed by or providing services for any 22.8 public ambulance service or privately operated ambulance service 22.9 that receives an operating subsidy from a governmental entity 22.10 that elects to participate under section 353D.02, subdivision 3; 22.11and22.12 (4) members of a municipal rescue squad associated with 22.13 Litchfield in Meeker county, or of a county rescue squad 22.14 associated with Kandiyohi county, if an independent nonprofit 22.15 rescue squad corporation, incorporated under chapter 317A, 22.16 performing emergency management services, and if not affiliated 22.17 with a fire department or ambulance service and if its members 22.18 are not eligible for membership in that fire department's or 22.19 ambulance service's relief association or comparable pension 22.20 plan; and 22.21 (5) employees of the port authority of the city of St. Paul 22.22 who elect to participate in the plan under section 353D.02, 22.23 subdivision 5, and who are not members of the public employees 22.24 retirement association under section 353.01, subdivision 7. 22.25 (b) For purposes of this chapter, an elected local 22.26 government official includes a person appointed to fill a 22.27 vacancy in an elective office. Service as an elected local 22.28 government official only includes service for the governmental 22.29 subdivision for which the official was elected by the 22.30 public-at-large. Service as an elected local government 22.31 official ceases and eligibility to participate terminates when 22.32 the person ceases to be an elected official. An elected local 22.33 government official does not include an elected county sheriff. 22.34 (c)Elected local government officials, physicians, first22.35response personnel and emergency medical service personnel, and22.36rescue squad personnelIndividuals otherwise eligible to 23.1 participate in the plan under this subdivision who are currently 23.2 covered by a public or private pension plan because of their 23.3 employment or provision of services are not eligible to 23.4 participate in the public employees defined contribution plan. 23.5 (d) A former participant is a person who has terminated 23.6 eligible employment or service and has not withdrawn the value 23.7 of the person's individual account. 23.8 Sec. 5. Minnesota Statutes 2002, section 353D.02, is 23.9 amended by adding a subdivision to read: 23.10 Subd. 5. [ST. PAUL PORT AUTHORITY PERSONNEL.] Employees of 23.11 the port authority of the city of St. Paul who do not elect to 23.12 participate in the general employees retirement plan may elect 23.13 to participate in the plan by filing a membership application on 23.14 a form prescribed by the executive director of the association 23.15 authorizing contributions to be deducted from the employee's 23.16 salary. Participation begins on the first day of the pay period 23.17 for which the contributions were deducted or, if pay period 23.18 coverage dates are not provided, the date on which the 23.19 membership application or the contributions are received in the 23.20 office of the association, whichever is received first, if the 23.21 membership application is received by the association within 60 23.22 days of the receipt of the contributions. An election to 23.23 participate in the plan is irrevocable. 23.24 Sec. 6. [PERA-GENERAL; PRIOR ST. PAUL PORT AUTHORITY 23.25 SERVICE CREDIT PURCHASE.] 23.26 Subdivision 1. [ELIGIBILITY.] A full-time salaried 23.27 employee or a permanent part-time salaried employee of the port 23.28 authority of the city of St. Paul who was employed by the port 23.29 authority during all or part of the period from July 1, 1993, to 23.30 July 1, 2003, and who is a member of the general employees 23.31 retirement plan of the public employees retirement association 23.32 may purchase allowable service credit from the general employees 23.33 retirement plan. 23.34 Subd. 2. [PURCHASABLE SERVICE; MAXIMUM.] (a) The service 23.35 credit that is purchasable under subdivision 1 is a period or 23.36 periods of employment by the port authority of the city of St. 24.1 Paul that would have been eligible service for coverage by the 24.2 general employees retirement plan of the public employees 24.3 retirement association if the service had been rendered after 24.4 July 1, 2003. 24.5 (b) The maximum period of allowable service credit in the 24.6 general employees retirement plan of the public employees 24.7 retirement association for purchase under this section is ten 24.8 years. 24.9 Subd. 3. [PURCHASE PAYMENT REQUIREMENT.] (a) To purchase 24.10 the service credit, the payment amount must be calculated under 24.11 Minnesota Statutes, section 356.55. 24.12 (b) Notwithstanding any provision of Minnesota Statutes, 24.13 section 356.55, to the contrary, the prior service credit 24.14 purchase payment may be made in whole or in part on an 24.15 institution-to-institution basis from a plan qualified under the 24.16 federal Internal Revenue Code, sections 401(a), 401(k), or 24.17 414(h), or from an annuity qualified under the federal Internal 24.18 Revenue Code, section 403, or from a deferred compensation plan 24.19 under the federal Internal Revenue Code, section 457, to the 24.20 extent permitted by the applicable federal law. In no event may 24.21 a prior service credit purchase transfer be paid directly to the 24.22 person purchasing the service. 24.23 Subd. 4. [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An 24.24 eligible person described in subdivision 1 must provide any 24.25 documentation related to eligibility to make this service credit 24.26 purchase required by the executive director of the public 24.27 employees retirement association. 24.28 (b) Allowable service credit for the purchase period or 24.29 periods must be granted by the general employees retirement plan 24.30 of the public employees retirement association on behalf of the 24.31 eligible person upon receipt of the prior service credit 24.32 purchase payment amount. 24.33 Sec. 7. [PRIOR SERVICE; VESTING.] 24.34 For purposes of vesting under Minnesota Statutes, section 24.35 353.29, subdivision 1, only, a full-time salaried employee or a 24.36 permanent part-time salaried employee of the port authority of 25.1 the city of St. Paul who was employed by the port authority on 25.2 July 1, 2003, and who is a member of the general employees 25.3 retirement plan of the public employees retirement association 25.4 may use months of employment with the port authority before that 25.5 date. This service may not be used to calculate a retirement 25.6 annuity or a disability benefit provided for under Minnesota 25.7 Statutes, chapter 353. 25.8 Sec. 8. [DEFINED CONTRIBUTION PLAN; ONE-TIME ELECTION.] 25.9 Employees of the port authority of the city of St. Paul who 25.10 do not exercise the right to become members of the general 25.11 employees retirement plan of the public employees retirement 25.12 association under section 1 may, by one-time election, choose to 25.13 participate in the public employees retirement association's 25.14 defined contribution plan under Minnesota Statutes, sections 25.15 353D.01 through 353D.10. The election is irrevocable. 25.16 Sec. 9. [EFFECTIVE DATE.] 25.17 (a) Sections 1 to 8 are effective on the day following 25.18 final enactment. 25.19 (b) Coverage under the general employees retirement plan of 25.20 the public employees retirement association under sections 1 and 25.21 2 commence on July 1, 2003. 25.22 ARTICLE 6 25.23 LOCAL PENSION FUND CHANGES 25.24 Section 1. Minnesota Statutes 2002, section 383B.49, is 25.25 amended to read: 25.26 383B.49 [SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF 25.27 SHARES.] 25.28 When requested to do so, in writing, on forms provided by 25.29 the county, by a participant, surviving spouse, a guardian of a 25.30 surviving child or a personal representative, whichever is 25.31 applicable, the county of Hennepin shall redeem shares in the 25.32 accounts of the Minnesota supplemental investment fund standing 25.33 in a participant's share account record under the following 25.34 circumstances and in accordance with the laws and regulations 25.35 governing the Minnesota supplemental investment fund: 25.36 (1) A participant who is no longer employed by the county 26.1 of Hennepin is entitled to receive the cash realized on the 26.2 redemption of the shares to the credit of the participant's 26.3 share account record of the person. The participant may request 26.4 the redemption of all or a portion of the shares in the 26.5 participant's share account record of the person, but may not 26.6 request more than one redemption in any one calendar year. If 26.7 only a portion of the shares in the participant's share account 26.8 record is requested to be redeemed the person may request to 26.9 redeem not less than 20 percent of the shares in any one 26.10 calendar year and the redemption must be completed in no more 26.11 than five years. An election is irrevocable except that a 26.12 participant may request an amendment of the election to redeem 26.13 all of the person's remaining shares. All requests under this 26.14 paragraph are subject to application to and approval of the 26.15 Hennepin countyboardadministrator, initsthe sole 26.16 discretion of the administrator. 26.17 (2) In the event of the death of a participant leaving a 26.18 surviving spouse, the surviving spouse is entitled to receive 26.19 the cash realized on the redemption of all or a portion of the 26.20 shares in the participant's share account record of the deceased 26.21 spouse, but in no event may the spouse request more than one 26.22 redemption in each calendar year. If only a portion of the 26.23 shares in the participant's share account record is requested to 26.24 be redeemed, the surviving spouse may request the redemption of 26.25 not less than 20 percent of the shares in any one calendar 26.26 year. Redemption must be completed in no more than five years. 26.27 An election is irrevocable except that the surviving spouse may 26.28 request an amendment of the election to redeem all of the 26.29 participant's remaining shares. All requests under this 26.30 paragraph are subject to application to and approval of the 26.31 Hennepin countyboardadministrator, initsthe sole 26.32 discretion of the administrator. Upon the death of the 26.33 surviving spouse, any shares remaining in the participant's 26.34 share account record must be redeemed by the county of Hennepin 26.35 and the cash realized from the redemption distributed to the 26.36 estate of the surviving spouse. 27.1 (3) In the event of the death of a participant leaving no 27.2 surviving spouse, but leaving a minor surviving child or minor 27.3 surviving children, the guardianship estate of the minor child 27.4 is, or the guardianship estates of the minor children are, 27.5 entitled to receive the cash realized on the redemption of all 27.6 shares to the credit of the participant's share account record 27.7 of the deceased participant. In the event of minor surviving 27.8 children, the cash realized must be paid in equal shares to the 27.9 guardianship estates of the minor surviving children. 27.10 (4) In the event of the death of a participant leaving no 27.11 surviving spouse and no minor surviving children, the estate of 27.12 the deceased participant is entitled to receive the cash 27.13 realized on the redemption of all shares to the credit of the 27.14 participant's share account record of the deceased participant. 27.15 Sec. 2. Minnesota Statutes 2002, section 383B.493, is 27.16 amended to read: 27.17 383B.493 [WITHDRAWAL FROM PARTICIPATION.] 27.18 Notwithstanding Laws 1982, chapter 450, or any other law to 27.19 the contrary, a Hennepin county employee participating in the 27.20 Hennepin county supplemental retirement program pursuant to Laws 27.21 1982, chapter 450 may, in the event of an unforeseeable 27.22 emergency, apply to the county to discontinue participation in 27.23 the program. Employees who are no longer participating in the 27.24 program may apply for the redemption of all shares credited to 27.25 their share account record. Applications are subject to 27.26 approval of the Hennepin countyboard of commissioners27.27 administrator initsthe sole discretion of the administrator. 27.28 For the purposes of this section, the term "unforeseeable 27.29 emergency" shall mean a severe financial hardship to the 27.30 participant resulting from a sudden and unexpected illness or 27.31 accident of the participant or a person dependent upon the 27.32 participant, loss of participant's property due to casualty, or 27.33 other similar extraordinary and unforeseeable circumstances 27.34 arising as a result of events beyond the control of the 27.35 participant. Applications based on foreseeable expenditures 27.36 normally budgetable shall not be approved. A participant 28.1 exercising the option provided by this section shall be 28.2 ineligible for further participation in the supplemental 28.3 retirement program. 28.4 Sec. 3. [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 28.5 HOC POSTRETIREMENT ADJUSTMENT.] 28.6 In addition to the current pensions and other retirement 28.7 benefits payable, the pensions and retirement benefits payable 28.8 to retired police officers and firefighters and their surviving 28.9 spouses by the Eveleth police and fire trust fund are increased 28.10 by $100 per month. Increases are retroactive to January 1, 2003. 28.11 Sec. 4. [EFFECTIVE DATE.] 28.12 (a) Sections 1 and 2 are effective upon approval by the 28.13 Hennepin county board of commissioners and compliance with 28.14 Minnesota Statutes, section 645.021. 28.15 (b) Section 3 is effective on the day after the date on 28.16 which the Eveleth city council and the chief clerical officer of 28.17 the city of Eveleth comply with Minnesota Statutes, section 28.18 645.021, subdivisions 2 and 3. 28.19 ARTICLE 7 28.20 GENERAL SERVICE CREDIT PURCHASES 28.21 Section 1. Minnesota Statutes 2002, section 356.55, 28.22 subdivision 7, is amended to read: 28.23 Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 28.24 PROCEDURE.] (a) This section expires and is repealed on July 28.25 1,20032004. 28.26 (b) Authority for any public pension plan to accept a prior 28.27 service credit payment that is calculated in a timely fashion 28.28 under this section expires on October 1,20032004. 28.29 Sec. 2. Laws 1999, chapter 222, article 16, section 16, as 28.30 amended by Laws 2002, chapter 392, article 7, section 1, is 28.31 amended to read: 28.32 Sec. 16. [REPEALER.] 28.33 Sections 1 to 13 are repealed on May 16,20032004. 28.34 Sec. 3. Laws 2000, chapter 461, article 4, section 4, is 28.35 amended to read: 28.36 Sec. 4. [EFFECTIVE DATE; SUNSET REPEALER.] 29.1 (a) Sections 1, 2, and 3 are effective on the day following 29.2 final enactment. 29.3 (b) Sections 1, 2, and 3 are repealed on May 16,20032004. 29.4 Sec. 4. Laws 2000, chapter 461, article 12, section 20, as 29.5 amended by Laws 2002, chapter 392, article 7, section 2, is 29.6 amended to read: 29.7 Sec. 20. [EFFECTIVE DATE.] 29.8 (a) Sections 4, 5, and 11 to 20 are effective on the day 29.9 following final enactment. 29.10 (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 29.11 following final enactment and apply retroactively to a faculty 29.12 member of the Lake Superior College who was granted an extended 29.13 leave of absence under article 19, section 4, of the united 29.14 technical college educators master agreement for the 1999-2000 29.15 academic year prior to March 20, 2000. 29.16 (c) Sections 5, 11, and 14, paragraph (c), expire on May 29.17 16,20032004. 29.18 Sec. 5. Laws 2001, First Special Session chapter 10, 29.19 article 6, section 21, as amended by Laws 2002, chapter 392, 29.20 article 7, section 3, is amended to read: 29.21 Sec. 21. [EXPIRATION DATE.] 29.22 (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 29.23 18, 19, and 20 expire May 16,20032004. 29.24 (b) Sections 9 and 15 expire May 16,20032004. 29.25 Sec. 6. [REPEALER.] 29.26 Minnesota Statutes 2002, sections 354.541 and 354A.109, are 29.27 repealed on May 16, 2004. 29.28 Sec. 7. [EFFECTIVE DATE.] 29.29 Sections 1 to 6 are effective on the day following final 29.30 enactment. 29.31 ARTICLE 8 29.32 SUPPLEMENTAL PENSION PLANS 29.33 Section 1. Minnesota Statutes 2002, section 356.24, 29.34 subdivision 1, is amended to read: 29.35 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 29.36 for a school district or other governmental subdivision or state 30.1 agency to levy taxes for, or to contribute public funds to a 30.2 supplemental pension or deferred compensation plan that is 30.3 established, maintained, and operated in addition to a primary 30.4 pension program for the benefit of the governmental subdivision 30.5 employees other than: 30.6 (1) to a supplemental pension plan that was established, 30.7 maintained, and operated before May 6, 1971; 30.8 (2) to a plan that provides solely for group health, 30.9 hospital, disability, or death benefits; 30.10 (3) to the individual retirement account plan established 30.11 by chapter 354B; 30.12 (4) to a plan that provides solely for severance pay under 30.13 section 465.72 to a retiring or terminating employee; 30.14 (5) for employees other than personnel employed by the 30.15 board of trustees of the Minnesota state colleges and 30.16 universities and covered under the higher education supplemental 30.17 retirement plan under chapter 354C, if the supplemental plan 30.18 coverage is provided for in a personnel policy of the public 30.19 employer or in the collective bargaining agreement between the 30.20 public employer and the exclusive representative of public 30.21 employees in an appropriate unit, in an amount matching employee 30.22 contributions on a dollar for dollar basis, but not to exceed an 30.23 employer contribution of $2,000 a year per employee; 30.24 (i) to the state of Minnesota deferred compensation plan 30.25 under section 352.96; or 30.26 (ii) in payment of the applicable portion of the 30.27 contribution made to any investment eligible under section 30.28 403(b) of the Internal Revenue Code, if the employing unit has 30.29 complied with any applicable pension plan provisions of the 30.30 Internal Revenue Code with respect to the tax-sheltered annuity 30.31 program during the preceding calendar year; 30.32 (6) for personnel employed by the board of trustees of the 30.33 Minnesota state colleges and universities and not covered by 30.34 clause (5), to the supplemental retirement plan under chapter 30.35 354C, if the supplemental plan coverage is provided for in a 30.36 personnel policy or in the collective bargaining agreement of 31.1 the public employer with the exclusive representative of the 31.2 covered employees in an appropriate unit, in an amount matching 31.3 employee contributions on a dollar for dollar basis, but not to 31.4 exceed an employer contribution of $2,700 a year for each 31.5 employee; 31.6 (7) to a supplemental plan or to a governmental trust to 31.7 save for postretirement health care expenses qualified for 31.8 tax-preferred treatment under the Internal Revenue Code, if the 31.9 supplemental plan coverage is provided for in a personnel policy 31.10 or in the collective bargaining agreement of a public employer 31.11 with the exclusive representative of the covered employees in an 31.12 appropriate unit; 31.13 (8) to the laborer's national industrial pension fund for 31.14 the employees of a governmental subdivision who are covered by a 31.15 collective bargaining agreement that provides for coverage by 31.16 that fund and that sets forth a fund contribution rate, but not 31.17 to exceed an employer contribution of $2,000 per year per 31.18 employee; 31.19 (9) to the plumbers' and pipefitters' national pension fund 31.20 or to a plumbers' and pipefitters' local pension fund for the 31.21 employees of a governmental subdivision who are covered by a 31.22 collective bargaining agreement that provides for coverage by 31.23 that fund and that sets forth a fund contribution rate, but not 31.24 to exceed an employer contribution of $2,000 per year per 31.25 employee; 31.26 (10) to the international union of operating engineers 31.27 pension fund for the employees of a governmental subdivision who 31.28 are covered by a collective bargaining agreement that provides 31.29 for coverage by that fund and that sets forth a fund 31.30 contribution rate, but not to exceed an employer contribution of 31.31 $2,000 per year per employee; or 31.32 (11) to a supplemental plan organized and operated under 31.33 the federal Internal Revenue Code, as amended, that is wholly 31.34 and solely funded by the employee's accumulated sick leave, 31.35 accumulated vacation leave, and accumulated severance pay. 31.36 Sec. 2. [EFFECTIVE DATE.] 32.1 Section 1 is effective the day after final enactment. 32.2 ARTICLE 9 32.3 VOLUNTEER FIREFIGHTER RELIEF 32.4 ASSOCIATION CHANGES 32.5 Section 1. Minnesota Statutes 2002, section 424A.02, 32.6 subdivision 3, is amended to read: 32.7 Subd. 3. [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) Annually 32.8 on or before August 1of each yearas part of the certification 32.9 of the financial requirements and minimum municipal 32.10 obligationmade pursuant todetermined under section 69.772, 32.11 subdivision 4, or 69.773, subdivision 5, as applicable, the 32.12 secretary or some other official of the relief association 32.13 designated in the bylaws of each relief association shall 32.14 calculate and certify to the governing body of the applicable 32.15 qualified municipality the average amount of available financing 32.16 per active covered firefighter for the most recent three-year 32.17 period. The amount of available financing shall include any 32.18 amounts of fire state aid received or receivable by the relief 32.19 association, any amounts of municipal contributions to the 32.20 relief association raised from levies on real estate or from 32.21 other available revenue sources exclusive of fire state aid, and 32.22 one-tenth of the amount of assets in excess of the accrued 32.23 liabilities of the relief association calculatedpursuant to32.24sectionsunder section 69.772, subdivision 2; 69.773, 32.25 subdivisions 2 and 4; or 69.774, subdivision 2, if any. 32.26 (b) The maximum service pension which the relief 32.27 association has authority to provide for in its bylaws for 32.28 payment to a member retiring after the calculation date when the 32.29 minimum age and service requirements specified in subdivision 1 32.30 are met must be determined using the table in paragraph (c) or 32.31 (d), whichever applies. 32.32 (c) For a relief association where the governing bylaws 32.33 provide for a monthly service pension to a retiring member, the 32.34 maximum monthly service pension amount per month for each year 32.35 of service credited that may be provided for in the bylaws is 32.36 the maximum service pension figure corresponding to the average 33.1 amount of available financing per active covered firefighter: 33.2 Minimum Average Amount of Maximum Service Pension 33.3 Available Financing per Amount Payable per Month 33.4 Firefighter for Each Year of Service 33.5 $... $ .25 33.6 42 .50 33.7 84 1.00 33.8 126 1.50 33.9 168 2.00 33.10 209 2.50 33.11 252 3.00 33.12 294 3.50 33.13 335 4.00 33.14 378 4.50 33.15 420 5.00 33.16 503 6.00 33.17 587 7.00 33.18 672 8.00 33.19 755 9.00 33.20 839 10.00 33.21 923 11.00 33.22 1007 12.00 33.23 1090 13.00 33.24 1175 14.00 33.25 1259 15.00 33.26 1342 16.00 33.27 1427 17.00 33.28 1510 18.00 33.29 1594 19.00 33.30 1677 20.00 33.31 1762 21.00 33.32 1845 22.00 33.33 1888 22.50 33.34 1929 23.00 33.35 2014 24.00 33.36 2098 25.00 34.1 2183 26.00 34.2 2267 27.00 34.3 2351 28.00 34.4 2436 29.00 34.5 2520 30.00 34.6 2604 31.00 34.7 2689 32.00 34.8 2773 33.00 34.9 2857 34.00 34.10 2942 35.00 34.11 3026 36.00 34.12 3110 37.00 34.1339633194 38.00 34.1440473278 39.00 34.1541373362 40.00 34.16Effective beginning December 31, 2000:34.1742273446 41.00 34.1843173530 42.00 34.1944073614 43.00 34.2044973698 44.00 34.21Effective beginning December 31, 2001:34.2245873782 45.00 34.2346773866 46.00 34.2447673950 47.00 34.2548574034 48.00 34.26Effective beginning December 31, 2002:34.2749474118 49.00 34.2850374202 50.00 34.2951274286 51.00 34.3052174370 52.00 34.31 Effective beginning December 31, 2003: 34.3253074454 53.00 34.3353974538 54.00 34.3454874622 55.00 34.3555774706 56.00 34.36 (d) For a relief association in which the governing bylaws 35.1 provide for a lump sum service pension to a retiring member, the 35.2 maximum lump sum service pension amount for each year of service 35.3 credited that may be provided for in the bylaws is the maximum 35.4 service pension figure corresponding to the average amount of 35.5 available financing per active covered firefighter for the 35.6 applicable specified period: 35.7 Minimum Average Amount Maximum Lump Sum Service 35.8 of Available Financing Pension Amount Payable 35.9 per Firefighter for Each Year of Service 35.10 $.. $10 35.11 11 20 35.12 16 30 35.13 23 40 35.14 27 50 35.15 32 60 35.16 43 80 35.17 54 100 35.18 65 120 35.19 77 140 35.20 86 160 35.21 97 180 35.22 108 200 35.23 131 240 35.24 151 280 35.25 173 320 35.26 194 360 35.27 216 400 35.28 239 440 35.29 259 480 35.30 281 520 35.31 302 560 35.32 324 600 35.33 347 640 35.34 367 680 35.35 389 720 35.36 410 760 36.1 432 800 36.2 486 900 36.3 540 1000 36.4 594 1100 36.5 648 1200 36.6 702 1300 36.7 756 1400 36.8 810 1500 36.9 864 1600 36.10 918 1700 36.11 972 1800 36.12 1026 1900 36.13 1080 2000 36.14 1134 2100 36.15 1188 2200 36.16 1242 2300 36.17 1296 2400 36.18 1350 2500 36.19 1404 2600 36.20 1458 2700 36.21 1512 2800 36.22 1566 2900 36.23 1620 3000 36.24 1672 3100 36.25 1726 3200 36.26 1753 3250 36.27 1780 3300 36.28 1820 3375 36.29 1834 3400 36.30 1888 3500 36.31 1942 3600 36.32 1996 3700 36.33 2023 3750 36.34 2050 3800 36.35 2104 3900 36.36 2158 4000 37.1 2212 4100 37.2 2265 4200 37.3 2319 4300 37.4 2373 4400 37.5 2427 4500 37.6 2481 4600 37.7 2535 4700 37.8 2589 4800 37.9 2643 4900 37.10 2697 5000 37.11 2751 5100 37.12 2805 5200 37.13 2859 5300 37.14 2913 5400 37.15 2967 5500 37.16Effective beginning December 31, 2000:37.17 3021 5600 37.18 3075 5700 37.19 3129 5800 37.20 3183 5900 37.21 3237 6000 37.22Effective beginning December 31, 2001:37.23 3291 6100 37.24 3345 6200 37.25 3399 6300 37.26 3453 6400 37.27 3507 6500 37.28Effective beginning December 31, 2002:37.29 3561 6600 37.30 3615 6700 37.31 3669 6800 37.32 3723 6900 37.33 3777 7000 37.34 Effective beginning December 31, 2003: 37.35 3831 7100 37.36 3885 7200 38.1 3939 7300 38.2 3993 7400 38.3 4047 7500 38.4 (e) For a relief association in which the governing bylaws 38.5 provide for a monthly benefit service pension as an alternative 38.6 form of service pension payment to a lump sum service pension, 38.7 the maximum service pension amount for each pension payment type 38.8 must be determined using the applicable table contained in this 38.9 subdivision. 38.10 (f) If a relief association establishes a service pension 38.11 in compliance with the applicable maximum contained in paragraph 38.12 (c) or (d) and the minimum average amount of available financing 38.13 per active covered firefighter is subsequently reduced because 38.14 of a reduction in fire state aid or because of an increase in 38.15 the number of active firefighters, the relief association may 38.16 continue to provide the prior service pension amount specified 38.17 in its bylaws, but may not increase the service pension amount 38.18 until the minimum average amount of available financing per 38.19 firefighter under the table in paragraph (c) or (d), whichever 38.20 applies, permits. 38.21 (g) No relief association is authorized to provide a 38.22 service pension in an amount greater than the largest applicable 38.23 flexible service pension maximum amount even if the amount of 38.24 available financing per firefighter is greater than the 38.25 financing amount associated with the largest applicable flexible 38.26 service pension maximum. 38.27 Sec. 2. [BENEFIT RATIFICATION; WHITE BEAR LAKE.] 38.28 Notwithstanding Minnesota Statutes, section 424A.02, 38.29 subdivisions 3 and 3a, to the contrary, the service pension 38.30 amounts specified in the bylaws of the White Bear Lake fire 38.31 department relief association following bylaw amendments in 38.32 January 1999 and prior to the effective date of this section are 38.33 ratified. 38.34 Sec. 3. [EFFECTIVE DATE.] 38.35 (a) Sections 1 and 2 are effective on the day following 38.36 final enactment. 39.1 ARTICLE 10 39.2 TEACHER PLAN ACTUARIAL STUDY 39.3 Section 1. [ACTUARIAL STUDY OF COSTS TO RESTRUCTURE 39.4 TEACHER PLANS.] 39.5 Subdivision 1. [STUDY MANDATED.] The actuary retained by 39.6 the legislative commission on pensions and retirement shall 39.7 prepare an additional actuarial valuation report, using the 39.8 results of the 2003 actuarial valuation reports prepared under 39.9 Minnesota Statutes, section 356.215, that considers the 39.10 feasibility of restructuring the Minnesota teachers retirement 39.11 association, the Minneapolis teachers retirement fund 39.12 association, the St. Paul teachers retirement fund association, 39.13 and the Duluth teachers retirement plan and fund association 39.14 into a new restructured fund. 39.15 Subd. 2. [CONTENTS OF STUDY.] The actuarial valuation 39.16 report must be based on the proposals put forth in the report 39.17 mandated by the legislature in Laws 2001, First Special Session 39.18 chapter 10, article 11, section 20, and filed February 15, 2002, 39.19 including changes to the postretirement adjustment, benefits, 39.20 and restructuring administrative costs and including asset 39.21 transfers. 39.22 Subd. 3. [INFORMATION PROVIDED.] The executive director of 39.23 the teachers retirement association, the executive secretary of 39.24 the Duluth teachers retirement fund association, the executive 39.25 director of the St. Paul teachers retirement fund association, 39.26 and the executive director of the Minneapolis teachers 39.27 retirement fund association must consult with the task force 39.28 established under Laws 2001, First Special Session chapter 10, 39.29 article 11, section 20, and must provide the commission-retained 39.30 actuary with all necessary information requested for the 39.31 preparation of this report. 39.32 Subd. 4. [COSTS.] The cost of the actuarial valuation 39.33 report mandated in this section will be paid by the pension 39.34 funds named in this legislation. The cost must be allocated 39.35 equally between the four pension funds. The executive director 39.36 of the Minneapolis teachers retirement fund association shall 40.1 serve as the fiscal agent for this study, shall pay its cost, 40.2 and shall be reimbursed by the other three retirement funds for 40.3 their appropriate share. 40.4 Subd. 5. [FILING DATE.] The report must be filed by 40.5 January 15, 2004, with the chair of the legislative commission 40.6 on pensions and retirement, the chair of the senate committee on 40.7 state and local government operations, and the chair of the 40.8 house committee on government operations and veterans affairs 40.9 policy. 40.10 Sec. 2. [EFFECTIVE DATE.] 40.11 Section 1 is effective on the day following final enactment. 40.12 ARTICLE 11 40.13 PUBLIC EMPLOYEES RETIREMENT ASSOCIATION: 40.14 HOSPITAL PRIVATIZATION 40.15 Section 1. Minnesota Statutes 2002, section 353F.02, 40.16 subdivision 4, is amended to read: 40.17 Subd. 4. [MEDICAL FACILITY.] "Medical facility" means: 40.18 (1) the Glencoe area health center; 40.19 (2) the Luverne public hospital; 40.20 (3) the Waconia-Ridgeview medical center;and40.21 (4) the Kanabec hospital; and 40.22 (5) the Renville county hospital in Olivia. 40.23 Sec. 2. [EFFECTIVE DATE.] 40.24 Section 1 is effective upon the latter of: 40.25 (1) the day after the governing body of Renville county and 40.26 its chief clerical officer timely complete their compliance with 40.27 Minnesota Statutes, section 645.021, subdivisions 2 and 3; and 40.28 (2) the first day of the month next following certification 40.29 to the Renville county board by the executive director of the 40.30 public employees retirement association that the actuarial 40.31 accrued liability of the special benefit coverage proposed for 40.32 extension to the privatized Renville county hospital employees 40.33 under section 1 does not exceed the actuarial gain otherwise to 40.34 be accrued by the public employees retirement association, as 40.35 calculated by the consulting actuary retained by the legislative 40.36 commission on pensions and retirement. The cost of the 41.1 actuarial calculations must be borne by the Renville county 41.2 hospital. 41.3 ARTICLE 12 41.4 MINNEAPOLIS FIREFIGHTERS RELIEF 41.5 ASSOCIATION CHANGES 41.6 Section 1. Minnesota Statutes 2002, section 423C.03, 41.7 subdivision 3, is amended to read: 41.8 Subd. 3. [COMPENSATION OF OFFICERS AND BOARD MEMBERS.] 41.9 Notwithstanding any other law to the contrary, the association 41.10 may provide for payment of the following salaries to its 41.11 officers and board members: 41.12 (1) the executive secretary may receive a salary not 41.13 exceeding 30 percent of the maximum salary of a first grade 41.14 firefighter if the executive secretary is an active member of 41.15 the relief association; 41.16 (2) the executive secretary may receive a salary not 41.17 exceeding 50 percent of the maximum salary of a first grade 41.18 firefighter if the executive secretary is not an active member 41.19 of the relief association; 41.20 (3) the president may receive a salary not exceeding ten 41.21 percent of the maximum salary of a first grade firefighter; and 41.22(3)(4) all other elected members of the board may receive 41.23 a salary not exceeding 2.5 percent of the maximum salary of a 41.24 first grade firefighter. 41.25 Sec. 2. Minnesota Statutes 2002, section 423C.08, is 41.26 amended to read: 41.27 423C.08 [MEMBER CONTRIBUTION REFUND TO BENEFICIARY UPON 41.28 DEATH.] 41.29 If an active, deferred, or retired member of the 41.30 association dies and no survivor benefit is payable, the 41.31 designated beneficiary of the decedent or, if none, the legal 41.32 representative of the estate of the decedent is entitled, upon 41.33 application, to a refund. The refund shall be an amount equal 41.34 to the member contributions to the credit of the decedent, plus 41.35 interest on those contributions at an annual compounded rate of 41.36 five percent from the first day of the month following the date 42.1 of the contribution to the first day of the month following the 42.2 date of death of the decedent, reduced by the sum of any service 42.3 pension or disability benefit previously paid by the fund to the 42.4 decedent. 42.5 Sec. 3. [INTENT.] 42.6 Section 2 is intended to bring the Minneapolis firefighters 42.7 relief association's statutory provision which provides for a 42.8 refund of member contributions where the decedent does not leave 42.9 a surviving spouse or children in conformance with Minnesota 42.10 Statutes 2002, section 423A.18. 42.11 Sec. 4. [EFFECTIVE DATE.] 42.12 (a) The board of the Minneapolis firefighters relief 42.13 association may increase the salary of the executive secretary 42.14 subject to the applicable maximum set forth in section 1. 42.15 (b) Any salary increase under paragraph (a) may be 42.16 effective on September 1, 2002, or any time thereafter as 42.17 designated by the relief association board providing that the 42.18 requirements specified in section 1 are satisfied during the 42.19 applicable time period. 42.20 (c) Section 2 is effective retroactive to September 25, 42.21 2001. Section 3 is effective on the day following final 42.22 enactment. 42.23 ARTICLE 13 42.24 INDIVIDUAL SERVICE CREDIT PURCHASES 42.25 Section 1. Laws 2000, chapter 461, article 19, section 6, 42.26 is amended to read: 42.27 Sec. 6. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 42.28 UNCREDITED TEACHING SERVICE PERIODS.] 42.29 (a) An eligible person described in paragraph (b) is 42.30 entitled to purchase allowable service credit from the 42.31 Minneapolis teachers retirement fund association basic program 42.32 for the periods of teaching employment specified in paragraph 42.33 (c) by making the payment required under Minnesota Statutes, 42.34 section 356.55. 42.35 (b) An eligible person is a person who: 42.36 (1) was employed by special school district No. 1 43.1 (Minneapolis) as a long call reserve teacher from October 1972 43.2 to June 1973 and was covered by the Minneapolis employees 43.3 retirement fund; 43.4 (2) was employed by special school district No. 1 43.5 (Minneapolis) as a school social worker at Franklin junior high 43.6 school from August 28, 1973, through June 12, 1974, and from 43.7 August 29, 1974, through June 11, 1975, without retirement 43.8 coverage; 43.9 (3) was employed by special school district No. 1 43.10 (Minneapolis) as a school social worker at North high school 43.11 from August 29, 1975, through December 19, 1975, covered by the 43.12 Minneapolis teachers retirement fund association; 43.13 (4) was retained by special school district No. 1 43.14 (Minneapolis) in the capacity of a school social worker at North 43.15 high school as an hourly wage social worker from August 1976 43.16 through June 1983 without retirement coverage; and 43.17 (5) is currently employed by Hennepin county covered by the 43.18 public employees retirement association. 43.19 (c) The periods for allowable service credit purchase are 43.20 August 28, 1973, through June 12, 1974; and August 29, 1974, 43.21 through June 11, 1975. 43.22 (d) An eligible person must provide any relevant 43.23 documentation related to eligibility to make this service credit 43.24 purchase required by the executive director of the Minneapolis 43.25 teachers retirement fund association. 43.26 (e) Allowable service credit for the purchase periods must 43.27 be granted by the Minneapolis teachers retirement fund 43.28 association to the account of the eligible person upon receipt 43.29 of the prior service credit purchase payment amount. Authority 43.30 provided by this section is voided if payment is not made before 43.31 July 1, 2003, or before commencing receipt of an annuity from 43.32 the Minneapolis teachers retirement fund association, whichever 43.33 is earlier. 43.34 (f) The prior service credit purchase paymentamount shall43.35be computed by the actuary retained by the legislative43.36commission on pensions and retirement. Thatcomputation must 44.1 give recognition, in applying the process stated in Minnesota 44.2 Statutes, section 356.55,give recognitionto the liabilities 44.3 that would be created in the Minneapolis teachers retirement 44.4 fund association and other Minnesota public pension funds due to 44.5 the service credit purchase. 44.6 (g) Following receipt of that purchase payment amount, the 44.7 executive director of the Minneapolis teachers retirement fund 44.8 association shall allocate and transmit that amount to the 44.9 applicable pension administrations, as determined under 44.10 paragraph (f). 44.11 Sec. 2. [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; PURCHASE 44.12 OF PRIOR SERVICE CREDIT.] 44.13 Subdivision 1. [AUTHORIZATION.] (a) A member of the public 44.14 employees police and fire retirement plan who was initially 44.15 employed as a police officer by the city of St. Louis Park, who 44.16 was subsequently employed as the public safety director by the 44.17 metropolitan airports commission, who is currently on a leave of 44.18 absence from the metropolitan airports commission, and who has 44.19 at least three years of allowable service credit with the public 44.20 employees police and fire retirement plan is entitled to 44.21 purchase up to 11.333 years of allowable service credit for 44.22 employment as a full time police officer by the city of St. 44.23 Louis Park if the employment was covered by a local relief 44.24 association governed by Minnesota Statutes, section 69.77. 44.25 (b) The authorization under paragraph (a) applies 44.26 notwithstanding any contrary provision of Minnesota Statutes, 44.27 section 353A.10. To purchase the service credit, the amount of 44.28 $183,329.38 must be paid. The purchase payment may be a 44.29 combination of the following: 44.30 (1) amounts transferred from the person's federal Internal 44.31 Revenue Code section 457 deferred compensation plan on an 44.32 institution-to-institution basis; 44.33 (2) any amount accrued by and potentially payable to the 44.34 person by the metropolitan airports commission under the 44.35 applicable employment benefit plan as accumulated sick leave, 44.36 transferred on an institution-to-institution basis; and 45.1 (3) the balance paid by the eligible person under paragraph 45.2 (a). 45.3 (c) The authorization under paragraph (a) applies only if 45.4 the person and the person's spouse waive any right to receive a 45.5 current or deferred service pension or retirement annuity or a 45.6 current disability benefit under the former St. Louis Park 45.7 police relief association benefit plan for that service. 45.8 (d) Authority to make the payment under this section 45.9 expires on September 15, 2003. 45.10 Subd. 2. [APPLICATION AND DOCUMENTATION.] A person who 45.11 desires to purchase service credit under subdivision 1 must 45.12 apply in writing with the executive director of the public 45.13 employees retirement association to make the purchase. The 45.14 application must include all necessary documentation of the 45.15 person's qualifications to make the purchase, signed written 45.16 permission to allow the executive director to request and 45.17 receive necessary verification of applicable facts and 45.18 eligibility requirements, and any other relevant information 45.19 that the executive director may require. 45.20 Subd. 3. [SERVICE CREDIT GRANT.] Allowable service credit 45.21 for the purchase period must be granted by the public employees 45.22 police and fire retirement plan to the purchasing person only 45.23 upon receipt of the purchase payment amount. Payment must be 45.24 made before the person's effective date of retirement. 45.25 Sec. 3. [TEACHERS RETIREMENT ASSOCIATION; SERVICE CREDIT 45.26 PURCHASE FOR SABBATICAL LEAVES.] 45.27 (a) Notwithstanding Minnesota Statutes, section 354.092, or 45.28 any other law to the contrary, an eligible person described in 45.29 paragraph (b) is entitled to purchase not more than three years 45.30 of allowable service credit from the teachers retirement 45.31 association for sabbatical leave as defined in Minnesota 45.32 Statutes, section 122A.49. 45.33 (b) An eligible person is a person who: 45.34 (1) worked as a teacher for independent school district No. 45.35 191, Burnsville-Eagan-Savage; 45.36 (2) was on sabbatical leave at some time between January 1, 46.1 1982, and December 31, 1989; and 46.2 (3) did not receive service credit for time on sabbatical 46.3 leave because the leave was not properly reported to the 46.4 teachers retirement association. 46.5 (c) An eligible person described in paragraph (b) must 46.6 apply with the executive director of the teachers retirement 46.7 association to make a service credit purchase under this 46.8 section. The application must be in writing and must include 46.9 all necessary documentation of the applicability of this section 46.10 and any other relevant information that the executive director 46.11 may require. 46.12 (d) Allowable service credit for the purchase periods must 46.13 be granted by the teachers retirement association to the account 46.14 of an eligible person upon receipt of the portion of the prior 46.15 service credit purchase payment amount payable under paragraph 46.16 (e) in a lump sum by the applicable eligible person. 46.17 (e) Notwithstanding Minnesota Statutes, section 356.55 or 46.18 356.551, whichever is applicable, an eligible person may pay 46.19 before September 1, 2003, or the date of termination from 46.20 service, whichever is earlier, an amount equal to the employee 46.21 contribution rate or rates in effect during the applicable 46.22 sabbatical leave period or periods specified in paragraph (b) 46.23 applied to the actual salary rate or rates in effect during that 46.24 period or periods, plus annual compound interest at the rate of 46.25 8.5 percent from the midpoint of each applicable sabbatical 46.26 leave period, to the date on which the payment is actually 46.27 made. Independent school district No. 191 must pay the 46.28 remaining balance of the prior service credit purchase payment 46.29 amount calculated under Minnesota Statutes, section 356.55 or 46.30 356.551, whichever is applicable, within 30 days of the payment 46.31 by an eligible person. The executive director of the teachers 46.32 retirement association must notify the superintendent of 46.33 independent school district No. 191 of its payment amount and 46.34 payment due date if an eligible person makes the required 46.35 payment. 46.36 (f) If independent school district No. 191 fails to pay its 47.1 portion of the required prior service credit purchase payment 47.2 amount, the executive director of the teachers retirement 47.3 association must notify the commissioner of finance of that fact 47.4 and the commissioner of finance must order that the required 47.5 employer payment be deducted from the next subsequent payment or 47.6 payments of state education aid to the school district and be 47.7 transmitted to the teachers retirement association. 47.8 Sec. 4. [EFFECTIVE DATE.] 47.9 Sections 1 to 3 are effective on the day following final 47.10 enactment. 47.11 ARTICLE 14 47.12 VARIOUS ONE PERSON AND SMALL 47.13 GROUP RETIREMENT CHANGES 47.14 Section 1. [SPECIAL SCHOOL DISTRICT NO. 1; QUALIFIED 47.15 PART-TIME TEACHER PROGRAM RETROACTIVE COVERAGE.] 47.16 (a) Notwithstanding any provision of Minnesota Statutes, 47.17 section 354A.094, to the contrary, the Minneapolis teachers 47.18 retirement fund association must accept the application for 47.19 full-time retirement coverage filed by special school district 47.20 No. 1, for the 2001-2002 school year, for a teacher who: 47.21 (1) was born on March 10, 1950; 47.22 (2) is a basic plan member of the Minneapolis teachers 47.23 retirement fund association; 47.24 (3) first became a Minneapolis teachers retirement fund 47.25 association member in August 1972; and 47.26 (4) entered into a job sharing arrangement with another 47.27 Minneapolis teachers retirement fund association member for the 47.28 2001-2002 school year but failed to enter into a qualified 47.29 part-time teacher agreement for that school year due to employer 47.30 error. 47.31 (b) A person described in paragraph (a) is authorized to 47.32 receive full-time salary and service credit in the Minneapolis 47.33 teachers retirement fund association basic program for service 47.34 under Minnesota Statutes, section 354A.094, for the 2001-2002 47.35 school year, if all conditions required by this section are met. 47.36 (c) To receive the full-time equivalent service and salary 48.1 credit for the 2001-2002 school year provided by this section, 48.2 an eligible individual described in paragraph (a) must pay the 48.3 applicable employee contribution under Minnesota Statutes, 48.4 section 354A.12, subdivision 1, on the difference between the 48.5 amount of the person's compensation from which employee 48.6 contributions were actually deducted and the amount of the 48.7 person's full-time equivalent salary under Minnesota Statutes, 48.8 section 354A.094, subdivision 4. Payment under this paragraph 48.9 must include 8.5 percent interest, compounded annually, on the 48.10 additional contribution amounts, computed from the date the 48.11 additional contributions would have occurred if deducted from 48.12 pay, until paid. 48.13 (d) If payment is made under paragraph (c), following 48.14 notification by the Minneapolis teachers retirement fund 48.15 association, special school district No. 1, Minneapolis, may 48.16 make payment under Minnesota Statutes, section 356.55 or 48.17 356.551, whichever is applicable, reflecting the increased 48.18 annuity value that would occur if the eligible individual were 48.19 included in the qualified part-time teacher program under 48.20 Minnesota Statutes, section 354A.094, during the 2001-2002 48.21 school year, after deducting amounts paid under paragraph (c). 48.22 If special school district No. 1, Minneapolis, does not pay the 48.23 balance within 30 days of notification by the executive director 48.24 of the Minneapolis teachers retirement fund association of the 48.25 payment of the member contribution payment by the eligible 48.26 person under paragraph (c), the executive director shall notify 48.27 the commissioner of finance of that fact and the commissioner 48.28 shall deduct from any state aid payable to the school district 48.29 that amount, plus interest on that amount of 1.5 percent per 48.30 month for each month or portion of a month that has elapsed from 48.31 the effective date of this section. 48.32 (e) Payments under this section must be made in a lump sum 48.33 to the Minneapolis teachers retirement fund association. 48.34 Payment under paragraph (c) must occur on or before June 30, 48.35 2003, or the effective date of retirement, whichever is 48.36 earlier. Payment by the employer under paragraph (d) must be 49.1 made within 30 days following payment by the eligible employee. 49.2 (f) The eligible person must provide any relevant 49.3 documentation that the Minneapolis teachers retirement fund 49.4 association may request. 49.5 Sec. 2. [DULUTH TEACHERS RETIREMENT FUND ASSOCIATION; 49.6 AUTHORIZATION OF A SERVICE CREDIT PURCHASE FOR CERTAIN PRIOR 49.7 PART-TIME EMPLOYMENT.] 49.8 (a) Notwithstanding any provision of law to the contrary, 49.9 an eligible person described in paragraph (b) is authorized to 49.10 purchase service credit from the Duluth teachers retirement fund 49.11 association for the uncredited part-time employment period 49.12 described in paragraph (c). 49.13 (b) An eligible person is a person who: 49.14 (1) was born on October 13, 1949; 49.15 (2) was initially employed by independent school district 49.16 No. 709, Duluth, on December 4, 1972; 49.17 (3) is a current employee of independent school district 49.18 No. 709, Duluth, and is a current member of the Duluth teachers 49.19 retirement fund association; 49.20 (4) was employed on a part-time basis by independent school 49.21 district No. 709, Duluth, for the 2001-2002 school year but did 49.22 not participate in the part-time teaching program under 49.23 Minnesota Statutes, section 354A.094, while employed on a 49.24 part-time basis for the 2001-2002 school year; and 49.25 (5) met the requirements to participate in the part-time 49.26 teaching program under Minnesota Statutes, section 354A.094, 49.27 subdivisions 2 and 3, except for the filing by the school 49.28 district of a copy of the program agreement in a timely fashion. 49.29 (c) The period is September 4, 2001, to June 7, 2002. 49.30 (d) The prior service credit purchase payment amount must 49.31 be determined under Minnesota Statutes, section 356.55 or 49.32 356.551, whichever applies. 49.33 (e) Credit for the higher salary for the purchase period 49.34 must be granted by the Duluth teachers retirement fund 49.35 association to the eligible person upon the receipt of the prior 49.36 service credit payment. 50.1 (f) The authority to make the prior service credit purchase 50.2 payment contributions expires 60 days after the effective date 50.3 or on the date of the termination of active service by the 50.4 eligible person, whichever occurs earlier. 50.5 Sec. 3. [SURVIVOR BENEFITS.] 50.6 Notwithstanding any provision of Minnesota Statutes, 50.7 section 353.657, subdivision 1, requiring a specified period of 50.8 marriage to obtain survivor benefits, the surviving spouse of a 50.9 firefighter who was born on March 11, 1969, and who died in an 50.10 accident on February 6, 2000, is entitled to survivor benefits 50.11 provided in Minnesota Statutes, section 353.657. 50.12 Sec. 4. [MSRS-GENERAL; REFUND ELIGIBILITY IN CERTAIN 50.13 INSTANCES.] 50.14 Notwithstanding any provision of Minnesota Statutes, 50.15 section 352.22, subdivision 1, to the contrary, a person who 50.16 previously has been employed as a state employee, who was placed 50.17 on a medical leave of absence before April 1, 2002, and who was 50.18 still on the medical leave on April 1, 2003, is eligible to 50.19 receive a refund under Minnesota Statutes, section 352.22, if 50.20 the person has not again become a state employee covered by the 50.21 system on the refund application date. 50.22 Sec. 5. [EFFECTIVE DATE.] 50.23 (a) Sections 1 to 4 are effective on the day following 50.24 final enactment. 50.25 (b) Section 3 applies retroactively to the surviving spouse 50.26 of a person who died on or after February 1, 2000.