1st Engrossment - 83rd Legislature, 2003 1st Special Session (2003 - 2003) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to retirement; modifying various public 1.3 pension plan provisions; allowing certain service 1.4 credit purchases; regulating leave without pay for 1.5 governmental subdivision employees; amending Minnesota 1.6 Statutes 2002, sections 11A.17, subdivision 2; 1.7 122A.46, subdivision 9; 352.96, subdivision 2; 353.01, 1.8 subdivisions 2d, 6; 353.028, subdivision 2; 353D.01, 1.9 subdivision 2; 353D.02, by adding a subdivision; 1.10 353F.02, subdivision 4; 354.094, subdivision 1; 1.11 356.24, subdivision 1; 356.55, subdivision 7; 356B.05; 1.12 383B.49; 383B.493; 423C.03, subdivision 3; 423C.08; 1.13 424A.02, subdivision 3; Laws 1978, chapter 685, 1.14 section 1, as amended; Laws 1978, chapter 685, section 1.15 2; Laws 1978, chapter 685, section 3; Laws 1978, 1.16 chapter 685, section 6; Laws 1999, chapter 222, 1.17 article 16, section 16, as amended; Laws 2000, chapter 1.18 461, article 4, section 4; Laws 2000, chapter 461, 1.19 article 12, section 20, as amended; Laws 2000, chapter 1.20 461, article 19, section 6; Laws 2001, First Special 1.21 Session chapter 10, article 6, section 21, as amended; 1.22 repealing Minnesota Statutes 2002, sections 354.541; 1.23 354A.109; Laws 1978, chapter 685, section 5. 1.24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.25 ARTICLE 1 1.26 LOCAL GOVERNMENT SALARY SAVINGS LEAVE 1.27 Section 1. [APPLICATION.] 1.28 Unless otherwise specified, this article applies to 1.29 governmental subdivisions as specified in Minnesota Statutes, 1.30 section 353.01, subdivision 6, and public employees providing 1.31 service to the applicable employer and covered by the public 1.32 employees retirement association general plan or police and fire 1.33 plan under Minnesota Statutes, chapter 353, or the public 1.34 employees retirement association local government correctional 2.1 service retirement plan under Minnesota Statutes, chapter 353E. 2.2 Sec. 2. [VOLUNTARY HOUR REDUCTION PLAN.] 2.3 (a) This section applies to a public employee who: 2.4 (1) on the effective date of this section is regularly 2.5 scheduled to work 1,040 or more hours a year in a position 2.6 covered by a pension plan administered by the public employees 2.7 retirement association; and 2.8 (2) enters into an agreement with a governmental 2.9 subdivision to work a reduced schedule of 1,040 or less hours in 2.10 the covered position. 2.11 (b) Notwithstanding any law to the contrary, for service 2.12 under an agreement entered into under paragraph (a), 2.13 contributions may be made to the applicable plan of the public 2.14 employees retirement association as if the employee had not 2.15 reduced hours. The employee must pay the employee contributions 2.16 and the employer must pay employer and additional employer 2.17 contributions necessary to bring the service credit and salary 2.18 up to the level prior to the voluntary reduction in hours. 2.19 Contributions must be made in a time and manner prescribed by 2.20 the executive director of the public employees retirement 2.21 association. 2.22 (c) The number of hours worked, the work schedule, and the 2.23 duration of the voluntary hour reduction must be mutually agreed 2.24 to by the employee and the governmental subdivision. The 2.25 governmental subdivision may not require a person to waive any 2.26 rights under a collective bargaining agreement as a condition of 2.27 participation under this section. The governmental subdivision 2.28 has sole discretion to determine if and the extent to which 2.29 voluntary hour reduction under this section is available to an 2.30 employee. 2.31 (d) A person who works under this section and meets the 2.32 definition of public employee under Minnesota Statutes, section 2.33 179A.03, subdivision 14, is a member of an appropriate 2.34 bargaining unit, is covered by an appropriate collective 2.35 bargaining contract or personnel policy, and is eligible for 2.36 health care coverage as provided in a collective bargaining 3.1 contract or personnel policy. 3.2 (e) An agreement under this section may apply only to work 3.3 through June 30, 2005. 3.4 Sec. 3. [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 3.5 (a) Governmental subdivisions may allow employees to take 3.6 unpaid leaves of absence between June 1, 2003, and June 30, 3.7 2005. Each governmental subdivision approving a leave may allow 3.8 the employee to continue accruing vacation and sick leave, be 3.9 eligible for paid holidays and insurance benefits, accrue 3.10 seniority, and accrue service credit and credited salary in the 3.11 public employees retirement association as if the employee had 3.12 actually been employed during the time of leave. If the leave 3.13 of absence is for one full pay period or longer, any holiday pay 3.14 may be included in the first payroll warrant after return from 3.15 the leave of absence. The governmental subdivision shall 3.16 attempt to grant requests for the unpaid leaves of absence 3.17 consistent with the need to continue efficient operation of the 3.18 governmental subdivision. However, each governmental 3.19 subdivision shall retain discretion to grant or refuse to grant 3.20 requests for leaves of absence and to schedule and cancel 3.21 leaves, subject to the applicable provisions of collective 3.22 bargaining agreements and personnel policy. 3.23 (b) To receive eligible service credit, the member shall 3.24 pay an amount equal to the applicable employee contribution 3.25 rates. If an employee pays the employee contribution for the 3.26 period of the leave under this section, the governmental 3.27 subdivision must pay the employer contribution and the 3.28 additional employer contribution. The governmental subdivision 3.29 may, at its discretion, pay employee, employer, and additional 3.30 employer contributions to the public employees retirement 3.31 association for the period of leave under this section. 3.32 Contributions must be made in a time and manner prescribed by 3.33 the executive director of the public employees retirement 3.34 association. 3.35 Sec. 4. [DESIGNATION OF POSITIONS; EMPLOYER DISCRETION.] 3.36 Before agreeing to an option under this article, a 4.1 governmental subdivision must designate the job classifications 4.2 or positions within job classifications that qualify for each 4.3 option. The governmental subdivision may modify this 4.4 designation at any time. Designation of positions eligible for 4.5 the options and participation of individual employees under this 4.6 act are at the sole discretion of the governmental subdivision. 4.7 Implementation of this act by the employer is not an unfair 4.8 labor practice under Minnesota Statutes, chapter 179A, or an 4.9 unfair discriminatory practice under Minnesota Statutes, chapter 4.10 363. 4.11 Sec. 5. [EFFECTIVE DATE.] 4.12 Sections 1 to 4 are effective on the day following final 4.13 enactment. 4.14 ARTICLE 2 4.15 STATE BOARD OF INVESTMENT CHANGES 4.16 Section 1. Minnesota Statutes 2002, section 11A.17, 4.17 subdivision 2, is amended to read: 4.18 Subd. 2. [ASSETS.] The assets of the supplemental 4.19 investment fund shall consist of the money certified and 4.20 transmitted to the state board from the participating public 4.21 retirement plans and funds or from the board of the Minnesota 4.22 state colleges and universities under section 136F.45. The 4.23 assets must be used to purchase investment shares in the 4.24 investment accounts specified by the plan or fund. These 4.25 accounts must be valued at least on a monthly basis, but may be 4.26 valued more frequently as determined by the state board of 4.27 investment. 4.28 Sec. 2. Minnesota Statutes 2002, section 352.96, 4.29 subdivision 2, is amended to read: 4.30 Subd. 2. [PURCHASE OF SHARES.] The amount of compensation 4.31 so deferred may be used to purchase: 4.32 (1) shares in the Minnesota supplemental investment fund 4.33 established in section 11A.17 that are selected to be offered 4.34 under the plan by the state board of investment; 4.35 (2) saving accounts in federally insured financial 4.36 institutions; 5.1 (3) life insurance contracts, fixed annuity and variable 5.2 annuity contracts from companies that are subject to regulation 5.3 by the commissioner of commerce; 5.4 (4) investment options from open-end investment companies 5.5 registered under the federal Investment Company Act of 1940, 5.6 United States Code, title 15, sections 80a-1 to 80a-64; 5.7 (5) investment options from a firm that is a registered 5.8 investment advisor under the Investment Advisers Act of 1940, 5.9 United States Code, title 15, section 80b-1 to 80b-21; 5.10 (6) investment options of a bank as defined in United 5.11 States Code, title 15, section 80b-2, subsection (a), paragraph 5.12 (2), or a bank holding company as defined in the Bank Holding 5.13 Company Act of 1956, United States Code, title 12, section 1841, 5.14 subsection (a), paragraph (1); or 5.15 (7) a combination of clause (1), (2), (3), (4), (5), or 5.16 (6), as provided by the plan as specified by the participant. 5.17 All amounts contributed to the deferred compensation plan 5.18 and all earnings on those amounts will be held for the exclusive 5.19 benefit of the plan participants and beneficiaries. These 5.20 amounts will be held in trust, in custodial accounts, or in 5.21 qualifying annuity contracts as required by federal law and in 5.22 accordance with section 356A.06, subdivision 1. This 5.23 subdivision does not authorize an employer contribution, except 5.24 as authorized in section 356.24, subdivision 1, paragraph (a), 5.25 clause (5). The state, political subdivision, or other 5.26 employing unit is not responsible for any loss that may result 5.27 from investment of the deferred compensation. 5.28 Sec. 3. [EFFECTIVE DATE.] 5.29 Sections 1 and 2 are effective July 1, 2003. 5.30 ARTICLE 3 5.31 TEACHER EXTENDED LEAVES 5.32 Section 1. Minnesota Statutes 2002, section 122A.46, 5.33 subdivision 9, is amended to read: 5.34 Subd. 9. [BENEFITS.] A teacher on an extended leave of 5.35 absence shall receive all of the health, accident, medical, 5.36 surgical and hospitalization insurance or benefits, for both the 6.1 teacher and the teacher's dependents, for which the teacher 6.2 would otherwise be eligible if not on an extended leave. A 6.3 teacher shall receive the coverage if such coverage is available 6.4 from the school district's insurer, if the teacher requests the 6.5 coverage, and if the teacher either (a) reimburses the district 6.6 for the full amount of the premium necessary to maintain the 6.7 coverage within one month
followingpreceding the district's 6.8 payment of the premium, or (b) if the district is wholly or 6.9 partially self-insured, pays the district, according to a 6.10 schedule agreed upon by the teacher and the school board, an 6.11 amount determined by the school board to be the amount that 6.12 would be charged for the coverage chosen by the teacher if the 6.13 school board purchased all health, accident, medical, surgical 6.14 and hospitalization coverage for its teachers from an 6.15 insurer. A school district may enter into an agreement with the 6.16 exclusive bargaining representative of the teachers in the 6.17 district where the district agrees, for an individual teacher, 6.18 to pay all or a portion of the premium for such coverage. Any 6.19 such agreement must include a sunset of eligibility to qualify 6.20 for the payment. 6.21 [EFFECTIVE DATE.] This section is effective the day 6.22 following final enactment and applies to agreements in effect or 6.23 entered into after that date. 6.24 Sec. 2. Minnesota Statutes 2002, section 354.094, 6.25 subdivision 1, is amended to read: 6.26 Subdivision 1. [SERVICE CREDIT CONTRIBUTIONS.] Upon 6.27 granting any extended leave of absence under section 122A.46 or 6.28 136F.43, the employing unit granting the leave must certify the 6.29 leave to the association on a form specified by the executive 6.30 director. A member granted an extended leave of absence under 6.31 section 122A.46 or 136F.43 may pay employee contributions and 6.32 receive allowable service credit toward annuities and other 6.33 benefits under this chapter, for each year of the leave, 6.34 provided that the member and the employing board make the 6.35 required employer contribution in any proportion they may agree 6.36 upon, during the period of the leave. The employer may enter 7.1 into an agreement with the exclusive bargaining representative 7.2 of the teachers in the district under which, for an individual 7.3 teacher, all or a portion of the employee's contribution is paid 7.4 by the employer. Any such agreement must include a sunset of 7.5 eligibility to qualify for the payment and must not be a part of 7.6 the collective bargaining agreement. The leave period must not 7.7 exceed five years. A member may not receive more than five 7.8 years of allowable service credit under this section. The 7.9 employee and employer contributions must be based upon the rates 7.10 of contribution prescribed by section 354.42 for the salary 7.11 received during the year immediately preceding the extended 7.12 leave. Payments for the years for which a member is receiving 7.13 service credit while on extended leave must be made on or before 7.14 the later of June 30 of each fiscal year for which service 7.15 credit is received or within 30 days after first notification of 7.16 the amount due, if requested by the member, is given by the 7.17 association. No payment is permitted after the following 7.18 September 30. Payments received after June 30 must include 7.19 interest at an annual rate of 8.5 percent from June 30 through 7.20 the end of the month in which payment is received. 7.21 Notwithstanding the provisions of any agreements to the 7.22 contrary, employee and employer contributions may not be made to 7.23 receive allowable service credit if the member does not have 7.24 full reinstatement rights as provided in section 122A.46 or 7.25 136F.43, both during and at the end of the extended leave. 7.26 Any school district paying the employee's retirement 7.27 contributions under this section shall forward to the applicable 7.28 retirement association or retirement fund a copy of the 7.29 agreement executed by the school district and the employee. 7.30 [EFFECTIVE DATE.] This section is effective the day 7.31 following final enactment and applies to agreements in effect or 7.32 entered into after that date. 7.33 Sec. 3. [REPORT.] 7.34 By February 1, 2005, the executive director of the teachers 7.35 retirement association, the executive secretary of the Duluth 7.36 teachers retirement fund association, the executive director of 8.1 the St. Paul teachers retirement fund association, and the 8.2 executive director of the Minneapolis teachers retirement fund 8.3 association shall submit a report to the chair of the 8.4 legislative commission on pensions and retirement summarizing 8.5 the agreements entered into under Minnesota Statutes, section 8.6 354.094, subdivision 1, or 354A.091, subdivision 1, on or before 8.7 December 31, 2004. 8.8 ARTICLE 4 8.9 PUBLIC EMPLOYEES RETIREMENT 8.10 ASSOCIATION MEMBERSHIP CHANGES 8.11 Section 1. Minnesota Statutes 2002, section 353.01, 8.12 subdivision 2d, is amended to read: 8.13 Subd. 2d. [OPTIONAL MEMBERSHIP.] (a) Membership in the 8.14 association is optional by action of the individual employee for 8.15 the following public employees who meet the conditions set forth 8.16 in subdivision 2a: 8.17 (1) members of the coordinated plan who are also employees 8.18 of labor organizations as defined in section 353.017, 8.19 subdivision 1, for their employment by the labor organization 8.20 only if they elect to have membership under section 353.017, 8.21 subdivision 2; 8.22 (2) persons who are elected or persons who are appointed to 8.23 elected positions other than local governing body elected 8.24 positions who elect to participate by filing a written election 8.25 for membership; 8.26 (3) members of the association who are appointed by the 8.27 governor to be a state department head and who elect not to be 8.28 covered by the general state employees retirement plan of the 8.29 Minnesota state retirement system under section 352.021; and8.30 (4) city managers as defined in section 353.028, 8.31 subdivision 1, who do not elect to be excluded from membership 8.32 in the association under section 353.028, subdivision 2; and 8.33 (5) employees of the port authority of the city of St. Paul 8.34 who were at least age 45 on January 1, 2003, and who elect to 8.35 participate by filing a written election for membership. 8.36 (b) Membership in the association is optional by action of 9.1 the governmental subdivision for the employees of the following 9.2 governmental subdivisions under the conditions specified: 9.3 (1) the Minnesota association of townships if the board of 9.4 the association, at its option, certifies to the executive 9.5 director that its employees are to be included for purposes of 9.6 retirement coverage, in which case the status of the association 9.7 as a participating employer is permanent; and 9.8 (2) a county historical society if the county in which the 9.9 historical society is located, at its option, certifies to the 9.10 executive director that the employees of the historical society 9.11 are to be county employees for purposes of retirement coverage 9.12 under this chapter. The status as a county employee must be 9.13 accorded to all similarly situated county historical society 9.14 employees and, once established, must continue as long as a 9.15 person is an employee of the county historical society. 9.16 (c) For employees who are covered by paragraph (a), clause 9.17 (1), (2), or (3), or covered by paragraph (b), if the necessary 9.18 membership election is not made, the employee is excluded from 9.19 retirement coverage under this chapter. For employees who are 9.20 covered by paragraph (a), clause (4), if the necessary election 9.21 is not made, the employee must become a member and have 9.22 retirement coverage under this chapter. The option to become a 9.23 member, once exercised under this subdivision, may not be 9.24 withdrawn until termination of public service as defined under 9.25 subdivision 11a. 9.26 Sec. 2. Minnesota Statutes 2002, section 353.01, 9.27 subdivision 6, is amended to read: 9.28 Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 9.29 subdivision" means a county, city, town, school district within 9.30 this state, or a department or unit of state government, or any 9.31 public body whose revenues are derived from taxation, fees, 9.32 assessments or from other sources. 9.33 (b) Governmental subdivision also means the public 9.34 employees retirement association, the league of Minnesota 9.35 cities, the association of metropolitan municipalities, public 9.36 hospitals owned or operated by, or an integral part of, a 10.1 governmental subdivision or governmental subdivisions, the 10.2 association of Minnesota counties, the metropolitan intercounty 10.3 association, the Minnesota municipal utilities association, the 10.4 metropolitan airports commission, the Minneapolis employees 10.5 retirement fund for employment initially commenced after June 10.6 30, 1979, the range association of municipalities and schools, 10.7 soil and water conservation districts, economic development 10.8 authorities created or operating under sections 469.090 to 10.9 469.108, the port authority of the city of St. Paul, the Spring 10.10 Lake Park fire department, incorporated, the Red Wing 10.11 environmental learning center, and the Dakota county 10.12 agricultural society. 10.13 (c) Governmental subdivision does not mean any municipal 10.14 housing and redevelopment authority organized under the 10.15 provisions of sections 469.001 to 469.047; or any port authority 10.16 organized under sections 469.048 to 469.089 other than the port 10.17 authority of the city of St. Paul; or any hospital district 10.18 organized or reorganized prior to July 1, 1975, under sections 10.19 447.31 to 447.37 or the successor of the district, nor the 10.20 Minneapolis community development agency. 10.21 Sec. 3. Minnesota Statutes 2002, section 353.028, 10.22 subdivision 2, is amended to read: 10.23 Subd. 2. [ELECTION.] (a) A city manager may elect to be 10.24 excluded from membership in the association. The election of 10.25 exclusion must be made within six months following the 10.26 commencement of employment, in writing on a form prescribed by 10.27 the executive director, and must be approved by a resolution of 10.28 the governing body of the city. The election of exclusion is 10.29 not effective until it is filed with the executive director. 10.30 Membership of a city manager in the association ceases on the 10.31 date the written election is received by the executive director 10.32 or upon a later date specified. The election to be excluded10.33 from membership must include a provision agreeing that the10.34 person will not at any time in the future seek authorization to10.35 purchase service credit for any period of excluded service and10.36 is irrevocable.Employee and employer contributions made on 11.1 behalf of a person exercising the option to be excluded from 11.2 membership under this section must be refunded in accordance 11.3 with section 353.27, subdivision 7. 11.4 (b) A city manager who has elected exclusion under this 11.5 subdivision may elect to revoke that action by filing a written 11.6 notice with the executive director. The notice must be on a 11.7 form prescribed by the executive director and must be approved 11.8 by a resolution of the governing body of the city. Membership 11.9 of the city manager in the association resumes prospectively 11.10 from the date of the first day of the pay period for which 11.11 contributions were deducted or, if pay period coverage dates are 11.12 not provided, the date on which the notice of revocation or 11.13 contributions are received in the office of the association, 11.14 provided that the notice of revocation is received by the 11.15 association within 60 days of the receipt of contributions. 11.16 (c) An election under paragraph (b) is irrevocable. Any 11.17 election under paragraph (a) or (b) must include a statement 11.18 that the individual will not seek authorization to purchase 11.19 service credit for any period of excluded service. 11.20 Sec. 4. Minnesota Statutes 2002, section 353D.01, 11.21 subdivision 2, is amended to read: 11.22 Subd. 2. [ELIGIBILITY.] (a) Eligibility to participate in 11.23 the defined contribution plan is available to: 11.24 (1) elected local government officials of a governmental 11.25 subdivision who elect to participate in the plan under section 11.26 353D.02, subdivision 1, and who, for the elected service 11.27 rendered to a governmental subdivision, are not members of the 11.28 public employees retirement association within the meaning of 11.29 section 353.01, subdivision 7; 11.30 (2) physicians who, if they did not elect to participate in 11.31 the plan under section 353D.02, subdivision 2, would meet the 11.32 definition of member under section 353.01, subdivision 7; 11.33 (3) basic and advanced life support emergency medical 11.34 service personnel employed by or providing services for any 11.35 public ambulance service or privately operated ambulance service 11.36 that receives an operating subsidy from a governmental entity 12.1 that elects to participate under section 353D.02, subdivision 3; 12.2 and12.3 (4) members of a municipal rescue squad associated with 12.4 Litchfield in Meeker county, or of a county rescue squad 12.5 associated with Kandiyohi county, if an independent nonprofit 12.6 rescue squad corporation, incorporated under chapter 317A, 12.7 performing emergency management services, and if not affiliated 12.8 with a fire department or ambulance service and if its members 12.9 are not eligible for membership in that fire department's or 12.10 ambulance service's relief association or comparable pension 12.11 plan; and 12.12 (5) employees of the port authority of the city of St. Paul 12.13 who elect to participate in the plan under section 353D.02, 12.14 subdivision 5, and who are not members of the public employees 12.15 retirement association under section 353.01, subdivision 7. 12.16 (b) For purposes of this chapter, an elected local 12.17 government official includes a person appointed to fill a 12.18 vacancy in an elective office. Service as an elected local 12.19 government official only includes service for the governmental 12.20 subdivision for which the official was elected by the 12.21 public-at-large. Service as an elected local government 12.22 official ceases and eligibility to participate terminates when 12.23 the person ceases to be an elected official. An elected local 12.24 government official does not include an elected county sheriff. 12.25 (c) Elected local government officials, physicians, first12.26 response personnel and emergency medical service personnel, and12.27 rescue squad personnelIndividuals otherwise eligible to 12.28 participate in the plan under this subdivision who are currently 12.29 covered by a public or private pension plan because of their 12.30 employment or provision of services are not eligible to 12.31 participate in the public employees defined contribution plan. 12.32 (d) A former participant is a person who has terminated 12.33 eligible employment or service and has not withdrawn the value 12.34 of the person's individual account. 12.35 Sec. 5. Minnesota Statutes 2002, section 353D.02, is 12.36 amended by adding a subdivision to read: 13.1 Subd. 5. [ST. PAUL PORT AUTHORITY PERSONNEL.] Employees of 13.2 the port authority of the city of St. Paul who do not elect to 13.3 participate in the general employees retirement plan may elect 13.4 to participate in the plan by filing a membership application on 13.5 a form prescribed by the executive director of the association 13.6 authorizing contributions to be deducted from the employee's 13.7 salary. Participation begins on the first day of the pay period 13.8 for which the contributions were deducted or, if pay period 13.9 coverage dates are not provided, the date on which the 13.10 membership application or the contributions are received in the 13.11 office of the association, whichever is received first, if the 13.12 membership application is received by the association within 60 13.13 days of the receipt of the contributions. An election to 13.14 participate in the plan is irrevocable. 13.15 Sec. 6. [RED WING ENVIRONMENTAL LEARNING CENTER.] 13.16 (a) The legislature finds that the Red Wing environmental 13.17 learning center has a long and very close relationship with 13.18 independent school district No. 256, Red Wing, that Red Wing 13.19 environmental learning center employees have been treated as 13.20 independent school district No. 256, Red Wing, employees for 13.21 retirement coverage purposes for 33 years, and that the current 13.22 learning center employees would suffer a significant loss in 13.23 their pension benefit coverage if their membership in the 13.24 general employees retirement plan of the public employees 13.25 retirement association was disrupted. 13.26 (b) Notwithstanding the provisions of any other law to the 13.27 contrary, independent school district No. 256, Red Wing, may 13.28 certify to the executive director of the public employees 13.29 retirement association that employees of the Red Wing 13.30 environmental learning center are considered school district 13.31 employees solely for purposes of retirement coverage by the 13.32 general employees retirement plan under Minnesota Statutes, 13.33 chapter 353. This status must be accorded to all similarly 13.34 situated Red Wing environmental learning center employees. 13.35 Sec. 7. [PERA-GENERAL; PRIOR ST. PAUL PORT AUTHORITY 13.36 SERVICE CREDIT PURCHASE.] 14.1 Subdivision 1. [ELIGIBILITY.] A full-time salaried 14.2 employee or a permanent part-time salaried employee of the port 14.3 authority of the city of St. Paul who was employed by the port 14.4 authority during all or part of the period from July 1, 1993, to 14.5 July 1, 2003, and who is a member of the general employees 14.6 retirement plan of the public employees retirement association 14.7 may purchase allowable service credit from the general employees 14.8 retirement plan. 14.9 Subd. 2. [PURCHASABLE SERVICE; MAXIMUM.] (a) The service 14.10 credit that is purchasable under subdivision 1 is a period or 14.11 periods of employment by the port authority of the city of St. 14.12 Paul that would have been eligible service for coverage by the 14.13 general employees retirement plan of the public employees 14.14 retirement association if the service had been rendered after 14.15 July 1, 2003. 14.16 (b) The maximum period of allowable service credit in the 14.17 general employees retirement plan of the public employees 14.18 retirement association for purchase under this section is ten 14.19 years. 14.20 Subd. 3. [PURCHASE PAYMENT REQUIREMENT.] (a) To purchase 14.21 the service credit, the payment amount must be calculated under 14.22 Minnesota Statutes, section 356.55. 14.23 (b) Notwithstanding any provision of Minnesota Statutes, 14.24 section 356.55, to the contrary, the prior service credit 14.25 purchase payment may be made in whole or in part on an 14.26 institution-to-institution basis from a plan qualified under the 14.27 federal Internal Revenue Code, section 401(a), 401(k), or 14.28 414(h), or from an annuity qualified under the federal Internal 14.29 Revenue Code, section 403, or from a deferred compensation plan 14.30 under the federal Internal Revenue Code, section 457, to the 14.31 extent permitted by the applicable federal law. In no event may 14.32 a prior service credit purchase transfer be paid directly to the 14.33 person purchasing the service. 14.34 Subd. 4. [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An 14.35 eligible person described in subdivision 1 must provide any 14.36 documentation related to eligibility to make this service credit 15.1 purchase required by the executive director of the public 15.2 employees retirement association. 15.3 (b) Allowable service credit for the purchase period or 15.4 periods must be granted by the general employees retirement plan 15.5 of the public employees retirement association on behalf of the 15.6 eligible person upon receipt of the prior service credit 15.7 purchase payment amount. 15.8 Subd. 5. [SUNSET.] Authority to purchase service credit 15.9 under this section expires on December 31, 2004. 15.10 Sec. 8. [PRIOR SERVICE; VESTING.] 15.11 For purposes of vesting under Minnesota Statutes, section 15.12 353.29, subdivision 1, only, a full-time salaried employee or a 15.13 permanent part-time salaried employee of the port authority of 15.14 the city of St. Paul who was employed by the port authority on 15.15 July 1, 2003, and who is a member of the general employees 15.16 retirement plan of the public employees retirement association 15.17 may use months of employment with the port authority before that 15.18 date. This service may not be used to calculate a retirement 15.19 annuity or a disability benefit provided for under Minnesota 15.20 Statutes, chapter 353. 15.21 Sec. 9. [DEFINED CONTRIBUTION PLAN; ONETIME ELECTION.] 15.22 Employees of the port authority of the city of St. Paul who 15.23 do not exercise the right to become members of the general 15.24 employees retirement plan of the public employees retirement 15.25 association under section 1 may, by onetime election, choose to 15.26 participate in the public employees retirement association's 15.27 defined contribution plan under Minnesota Statutes, sections 15.28 353D.01 to 353D.12. The election is irrevocable. 15.29 Sec. 10. [EFFECTIVE DATE.] 15.30 (a) Section 2 with respect to the Red Wing environmental 15.31 learning center, and section 6 are effective the day after the 15.32 school board of independent school district No. 256, Red Wing, 15.33 and its chief clerical officer timely complete their compliance 15.34 with Minnesota Statutes, section 645.021, subdivisions 2 and 3, 15.35 and certification to the executive director of the public 15.36 employees retirement association. 16.1 (b) Section 2, with respect to the port authority of the 16.2 city of St. Paul, is effective the day following final enactment. 16.3 (c) Sections 1, 4, 5, 6, 8, and 9 are effective the day 16.4 following final enactment. 16.5 (d) Coverage by the general employees retirement plan of 16.6 the public employees retirement association under sections 1 and 16.7 2 commences July 1, 2003. 16.8 ARTICLE 5 16.9 PUBLIC HOSPITAL PRIVATIZATION 16.10 Section 1. Minnesota Statutes 2002, section 353F.02, 16.11 subdivision 4, is amended to read: 16.12 Subd. 4. [MEDICAL FACILITY.] "Medical facility" means: 16.13 (1) the Glencoe area health center; 16.14 (2) the Luverne public hospital; 16.15 (3) the Waconia-Ridgeview medical center; and16.16 (4) the Kanabec hospital; and 16.17 (5) the Renville county hospital in Olivia. 16.18 Sec. 2. [EFFECTIVE DATE.] 16.19 Section 1 is effective upon the latter of: 16.20 (1) the day after the governing body of Renville county and 16.21 its chief clerical officer timely complete their compliance with 16.22 Minnesota Statutes, section 645.021, subdivisions 2 and 3; and 16.23 (2) the first day of the month next following certification 16.24 to the Renville county board by the executive director of the 16.25 public employees retirement association that the actuarial 16.26 accrued liability of the special benefit coverage proposed for 16.27 extension to the privatized Renville county hospital employees 16.28 under section 1 does not exceed the actuarial gain otherwise to 16.29 be accrued by the public employees retirement association, as 16.30 calculated by the consulting actuary retained by the legislative 16.31 commission on pensions and retirement. The cost of the 16.32 actuarial calculations must be borne by the Renville county 16.33 hospital. 16.34 ARTICLE 6 16.35 GENERAL SERVICE CREDIT PURCHASES 16.36 Section 1. Minnesota Statutes 2002, section 356.55, 17.1 subdivision 7, is amended to read: 17.2 Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 17.3 PROCEDURE.] (a) This section expires and is repealed on July 17.4 1, 20032004. 17.5 (b) Authority for any public pension plan to accept a prior 17.6 service credit payment that is calculated in a timely fashion 17.7 under this section expires on October 1, 20032004. 17.8 Sec. 2. Laws 1999, chapter 222, article 16, section 16, as 17.9 amended by Laws 2002, chapter 392, article 7, section 1, is 17.10 amended to read: 17.11 Sec. 16. [REPEALER.] 17.12 Sections 1 to 13 are repealed on May 16, 20032004. 17.13 Sec. 3. Laws 2000, chapter 461, article 4, section 4, is 17.14 amended to read: 17.15 Sec. 4. [EFFECTIVE DATE; SUNSET REPEALER.] 17.16 (a) Sections 1, 2, and 3 are effective on the day following 17.17 final enactment. 17.18 (b) Sections 1, 2, and 3 are repealed on May 16, 20032004. 17.19 Sec. 4. Laws 2000, chapter 461, article 12, section 20, as 17.20 amended by Laws 2002, chapter 392, article 7, section 2, is 17.21 amended to read: 17.22 Sec. 20. [EFFECTIVE DATE.] 17.23 (a) Sections 4, 5, and 11 to 20 are effective on the day 17.24 following final enactment. 17.25 (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 17.26 following final enactment and apply retroactively to a faculty 17.27 member of the Lake Superior College who was granted an extended 17.28 leave of absence under article 19, section 4, of the united 17.29 technical college educators master agreement for the 1999-2000 17.30 academic year prior to March 20, 2000. 17.31 (c) Sections 5, 11, and 14, paragraph (c), expire on May 17.32 16, 20032004. 17.33 Sec. 5. Laws 2001, First Special Session chapter 10, 17.34 article 6, section 21, as amended by Laws 2002, chapter 392, 17.35 article 7, section 3, is amended to read: 17.36 Sec. 21. [EXPIRATION DATE.] 18.1 (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 18.2 18, 19, and 20 expire May 16, 20032004. 18.3 (b) Sections 9 and 15 expire May 16, 20032004. 18.4 Sec. 6. [PERA-GENERAL; SERVICE CREDIT PURCHASE 18.5 AUTHORIZED.] 18.6 (a) Notwithstanding any provision of law to the contrary, 18.7 an eligible person described in paragraph (b), (c), or (d) is 18.8 authorized to purchase allowable service credit from the general 18.9 employees retirement plan of the public employees retirement 18.10 association under Minnesota Statutes, section 356.55 or 356.551, 18.11 for the applicable period of prior employment as a council 18.12 member of the city of St. Louis Park which was not credited by 18.13 the general employees retirement plan of the public employees 18.14 retirement association as indicated in paragraph (e). 18.15 (b) An eligible person is a person who: 18.16 (1) is a current member of the St. Louis Park city council 18.17 and is a current member of the general employees retirement plan 18.18 of the public employees retirement association; 18.19 (2) was born on September 26, 1941; 18.20 (3) became a St. Louis Park city council member on January 18.21 1, 1996; and 18.22 (4) was not a member of the general employees retirement 18.23 plan of the public employees retirement association for the 18.24 period January 1, 1996, to January 29, 2000. 18.25 (c) An eligible person is a person who: 18.26 (1) is a current member of the St. Louis Park city council 18.27 and is a current member of the general employees retirement plan 18.28 of the public employees retirement association; 18.29 (2) was born on October 8, 1949; 18.30 (3) became a St. Louis Park city council member on June 8, 18.31 1999; and 18.32 (4) was not a member of the general employees retirement 18.33 plan of the public employees retirement association for the 18.34 period June 8, 1999, to January 12, 2002. 18.35 (d) An eligible person is a person who: 18.36 (1) is a current member of the St. Louis Park city council 19.1 and is a current member of the general employees retirement plan 19.2 of the public employees retirement association; 19.3 (2) was born on June 4, 1964; 19.4 (3) became a St. Louis Park city council member on November 19.5 18, 1997; and 19.6 (4) was not a member of the general employees retirement 19.7 plan of the public employees retirement association for the 19.8 period November 18, 1997, to March 9, 2002. 19.9 (e) The allowable service credit purchase period is limited 19.10 to the period of St. Louis Park city council service that was 19.11 not covered by the general employees retirement plan of the 19.12 public employees retirement association. 19.13 (f) The eligible person must provide all relevant 19.14 documentation of the applicability of the requirements set forth 19.15 in paragraph (b), (c), or (d) and any other applicable 19.16 information that the executive director of the public employees 19.17 retirement association may request. 19.18 (g) Allowable service credit for the purchase period must 19.19 be granted by the general employees retirement plan of the 19.20 public employees retirement association to the eligible person 19.21 upon receipt of the prior service credit purchase payment amount. 19.22 (h) Notwithstanding Minnesota Statutes, section 356.55, 19.23 subdivision 5, or 356.551, subdivision 2, whichever applies, the 19.24 city of St. Louis Park is not permitted to pay any portion of 19.25 the service credit purchase payment amount. 19.26 (i) The prior service credit purchase authority expires on 19.27 July 1, 2004, or on the date of the termination of active St. 19.28 Louis Park city council service by the eligible person, 19.29 whichever occurs earlier. 19.30 Sec. 7. [REPEALER.] 19.31 Minnesota Statutes 2002, sections 354.541 and 354A.109, are 19.32 repealed on May 16, 2004. 19.33 Sec. 8. [EFFECTIVE DATE.] 19.34 Sections 1 to 7 are effective on the day following final 19.35 enactment. 19.36 ARTICLE 7 20.1 SUPPLEMENTAL PENSION PLAN COVERAGE 20.2 Section 1. Minnesota Statutes 2002, section 356.24, 20.3 subdivision 1, is amended to read: 20.4 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 20.5 for a school district or other governmental subdivision or state 20.6 agency to levy taxes for, or to contribute public funds to a 20.7 supplemental pension or deferred compensation plan that is 20.8 established, maintained, and operated in addition to a primary 20.9 pension program for the benefit of the governmental subdivision 20.10 employees other than: 20.11 (1) to a supplemental pension plan that was established, 20.12 maintained, and operated before May 6, 1971; 20.13 (2) to a plan that provides solely for group health, 20.14 hospital, disability, or death benefits; 20.15 (3) to the individual retirement account plan established 20.16 by chapter 354B; 20.17 (4) to a plan that provides solely for severance pay under 20.18 section 465.72 to a retiring or terminating employee; 20.19 (5) for employees other than personnel employed by the 20.20 board of trustees of the Minnesota state colleges and 20.21 universities and covered under the higher education supplemental 20.22 retirement plan under chapter 354C, if the supplemental plan 20.23 coverage is provided for in a personnel policy of the public 20.24 employer or in the collective bargaining agreement between the 20.25 public employer and the exclusive representative of public 20.26 employees in an appropriate unit, in an amount matching employee 20.27 contributions on a dollar for dollar basis, but not to exceed an 20.28 employer contribution of $2,000 a year per employee; 20.29 (i) to the state of Minnesota deferred compensation plan 20.30 under section 352.96; or 20.31 (ii) in payment of the applicable portion of the 20.32 contribution made to any investment eligible under section 20.33 403(b) of the Internal Revenue Code, if the employing unit has 20.34 complied with any applicable pension plan provisions of the 20.35 Internal Revenue Code with respect to the tax-sheltered annuity 20.36 program during the preceding calendar year; 21.1 (6) for personnel employed by the board of trustees of the 21.2 Minnesota state colleges and universities and not covered by 21.3 clause (5), to the supplemental retirement plan under chapter 21.4 354C, if the supplemental plan coverage is provided for in a 21.5 personnel policy or in the collective bargaining agreement of 21.6 the public employer with the exclusive representative of the 21.7 covered employees in an appropriate unit, in an amount matching 21.8 employee contributions on a dollar for dollar basis, but not to 21.9 exceed an employer contribution of $2,700 a year for each 21.10 employee; 21.11 (7) to a supplemental plan or to a governmental trust to 21.12 save for postretirement health care expenses qualified for 21.13 tax-preferred treatment under the Internal Revenue Code, if the 21.14 supplemental plan coverage is provided for in a personnel policy 21.15 or in the collective bargaining agreement of a public employer 21.16 with the exclusive representative of the covered employees in an 21.17 appropriate unit; 21.18 (8) to the laborer's national industrial pension fund for 21.19 the employees of a governmental subdivision who are covered by a 21.20 collective bargaining agreement that provides for coverage by 21.21 that fund and that sets forth a fund contribution rate, but not 21.22 to exceed an employer contribution of $2,000 per year per 21.23 employee; 21.24 (9) to the plumbers' and pipefitters' national pension fund 21.25 or to a plumbers' and pipefitters' local pension fund for the 21.26 employees of a governmental subdivision who are covered by a 21.27 collective bargaining agreement that provides for coverage by 21.28 that fund and that sets forth a fund contribution rate, but not 21.29 to exceed an employer contribution of $2,000 per year per 21.30 employee; 21.31 (10) to the international union of operating engineers 21.32 pension fund for the employees of a governmental subdivision who 21.33 are covered by a collective bargaining agreement that provides 21.34 for coverage by that fund and that sets forth a fund 21.35 contribution rate, but not to exceed an employer contribution of 21.36 $2,000 per year per employee; or 22.1 (11) to a supplemental plan organized and operated under 22.2 the federal Internal Revenue Code, as amended, that is wholly 22.3 and solely funded by the employee's accumulated sick leave, 22.4 accumulated vacation leave, and accumulated severance pay. 22.5 Sec. 2. [EFFECTIVE DATE.] 22.6 Section 1 is effective the day after final enactment. 22.7 ARTICLE 8 22.8 GENERAL RETIREMENT CHANGES 22.9 Section 1. Minnesota Statutes 2002, section 356B.05, is 22.10 amended to read: 22.11 356B.05 [PUBLIC PENSION ADMINISTRATION LEGISLATION.] 22.12 (a) Proposed administrative legislation recommended by or 22.13 on behalf of the Minnesota state retirement system, the public 22.14 employees retirement association, the teachers retirement 22.15 association, the Minneapolis employees retirement fund, or a 22.16 first class city teachers retirement fund association, and 22.17 proposed retirement-related legislation recommended by the 22.18 Minnesota state colleges and universities system must be 22.19 presented to the legislative commission on pensions and 22.20 retirement, the state and local governmental operations 22.21 committee of the senate, and the governmental operations and 22.22 veterans affairs policy committee of the house of 22.23 representatives on or before October 1 of each year in order for 22.24 the proposed administrative legislation to be acted upon during 22.25 the upcoming legislative session. The executive director or the 22.26 deputy executive director of the legislative commission on 22.27 pensions and retirement shall provide written comments on the 22.28 proposed administrative provisions to the public pension plans 22.29 by November 15 of each year. 22.30 (b) Proposed administrative legislation recommended by or 22.31 on behalf of a public employee pension plan or system under 22.32 paragraph (a) must address provisions: 22.33 (1) authorizing allowable service credit for leaves of 22.34 absence and related circumstances; 22.35 (2) governing offsets or deductions from the amount of 22.36 disability benefits; 23.1 (3) authorizing the purchase of allowable service credit 23.2 for prior uncredited periods; 23.3 (4) governing subsequent employment earnings by reemployed 23.4 annuitants; and 23.5 (5) authorizing retroactive effect for retirement annuity 23.6 or benefit applications. 23.7 (c) Where possible and desirable, taking into account the 23.8 differences among the public pension plans in existing law and 23.9 the unique characteristics of the individual public pension fund 23.10 memberships, uniform provisions relating to paragraph (b) for 23.11 all applicable public pension plans must be presented for 23.12 consideration during the legislative session. Supporting 23.13 documentation setting forth the policy rationale for each set of 23.14 uniform provisions must accompany the proposed administrative 23.15 legislation. 23.16 ARTICLE 9 23.17 STATEWIDE RESTRUCTURED TEACHER 23.18 RETIREMENT PLAN ACTUARIAL STUDY 23.19 Section 1. [ACTUARIAL STUDY OF COSTS TO RESTRUCTURE 23.20 TEACHER PLANS.] 23.21 Subdivision 1. [STUDY MANDATED.] The actuary retained by 23.22 the legislative commission on pensions and retirement shall 23.23 prepare an additional actuarial valuation report, using the 23.24 results of the 2003 actuarial valuation reports prepared under 23.25 Minnesota Statutes, section 356.215, that considers the 23.26 feasibility of restructuring the Minnesota teachers retirement 23.27 association, the Minneapolis teachers retirement fund 23.28 association, the St. Paul teachers retirement fund association, 23.29 and the Duluth teachers retirement plan and fund association 23.30 into a new restructured fund. 23.31 Subd. 2. [CONTENTS OF STUDY.] The actuarial valuation 23.32 report must be based on the proposals put forth in the report 23.33 mandated by the legislature in Laws 2001, First Special Session 23.34 chapter 10, article 11, section 20, and filed February 15, 2002, 23.35 including changes to the postretirement adjustment, benefits, 23.36 and restructuring administrative costs and including asset 24.1 transfers. 24.2 Subd. 3. [INFORMATION PROVIDED.] The executive director of 24.3 the teachers retirement association, the executive secretary of 24.4 the Duluth teachers retirement fund association, the executive 24.5 director of the St. Paul teachers retirement fund association, 24.6 and the executive director of the Minneapolis teachers 24.7 retirement fund association must consult with the task force 24.8 established under Laws 2001, First Special Session chapter 10, 24.9 article 11, section 20, and must provide the commission-retained 24.10 actuary with all necessary information requested for the 24.11 preparation of this report. 24.12 Subd. 4. [COSTS.] The cost of the actuarial valuation 24.13 report mandated in this section will be paid by the pension 24.14 funds named in this legislation. The cost must be allocated 24.15 equally between the four pension funds. The executive director 24.16 of the Minneapolis teachers retirement fund association shall 24.17 serve as the fiscal agent for this study, shall pay its cost, 24.18 and shall be reimbursed by the other three retirement funds for 24.19 their appropriate share. 24.20 Subd. 5. [FILING DATE.] The report must be filed by 24.21 January 15, 2004, with the chair of the legislative commission 24.22 on pensions and retirement, the chair of the senate committee on 24.23 state and local government operations, and the chair of the 24.24 house committee on government operations and veterans affairs 24.25 policy. 24.26 Sec. 2. [EFFECTIVE DATE.] 24.27 Section 1 is effective on the day following final enactment. 24.28 ARTICLE 10 24.29 LOCAL RETIREMENT PLAN CHANGES 24.30 Section 1. Minnesota Statutes 2002, section 383B.49, is 24.31 amended to read: 24.32 383B.49 [SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF 24.33 SHARES.] 24.34 When requested to do so, in writing, on forms provided by 24.35 the county, by a participant, surviving spouse, a guardian of a 24.36 surviving child or a personal representative, whichever is 25.1 applicable, the county of Hennepin shall redeem shares in the 25.2 accounts of the Minnesota supplemental investment fund standing 25.3 in a participant's share account record under the following 25.4 circumstances and in accordance with the laws and regulations 25.5 governing the Minnesota supplemental investment fund: 25.6 (1) A participant who is no longer employed by the county 25.7 of Hennepin is entitled to receive the cash realized on the 25.8 redemption of the shares to the credit of the participant's 25.9 share account record of the person. The participant may request 25.10 the redemption of all or a portion of the shares in the 25.11 participant's share account record of the person, but may not 25.12 request more than one redemption in any one calendar year. If 25.13 only a portion of the shares in the participant's share account 25.14 record is requested to be redeemed the person may request to 25.15 redeem not less than 20 percent of the shares in any one 25.16 calendar year and the redemption must be completed in no more 25.17 than five years. An election is irrevocable except that a 25.18 participant may request an amendment of the election to redeem 25.19 all of the person's remaining shares. All requests under this 25.20 paragraph are subject to application to and approval of the 25.21 Hennepin county boardadministrator, in itsthe sole 25.22 discretion of the administrator. 25.23 (2) In the event of the death of a participant leaving a 25.24 surviving spouse, the surviving spouse is entitled to receive 25.25 the cash realized on the redemption of all or a portion of the 25.26 shares in the participant's share account record of the deceased 25.27 spouse, but in no event may the spouse request more than one 25.28 redemption in each calendar year. If only a portion of the 25.29 shares in the participant's share account record is requested to 25.30 be redeemed, the surviving spouse may request the redemption of 25.31 not less than 20 percent of the shares in any one calendar 25.32 year. Redemption must be completed in no more than five years. 25.33 An election is irrevocable except that the surviving spouse may 25.34 request an amendment of the election to redeem all of the 25.35 participant's remaining shares. All requests under this 25.36 paragraph are subject to application to and approval of the 26.1 Hennepin county boardadministrator, in itsthe sole 26.2 discretion of the administrator. Upon the death of the 26.3 surviving spouse, any shares remaining in the participant's 26.4 share account record must be redeemed by the county of Hennepin 26.5 and the cash realized from the redemption distributed to the 26.6 estate of the surviving spouse. 26.7 (3) In the event of the death of a participant leaving no 26.8 surviving spouse, but leaving a minor surviving child or minor 26.9 surviving children, the guardianship estate of the minor child 26.10 is, or the guardianship estates of the minor children are, 26.11 entitled to receive the cash realized on the redemption of all 26.12 shares to the credit of the participant's share account record 26.13 of the deceased participant. In the event of minor surviving 26.14 children, the cash realized must be paid in equal shares to the 26.15 guardianship estates of the minor surviving children. 26.16 (4) In the event of the death of a participant leaving no 26.17 surviving spouse and no minor surviving children, the estate of 26.18 the deceased participant is entitled to receive the cash 26.19 realized on the redemption of all shares to the credit of the 26.20 participant's share account record of the deceased participant. 26.21 Sec. 2. Minnesota Statutes 2002, section 383B.493, is 26.22 amended to read: 26.23 383B.493 [WITHDRAWAL FROM PARTICIPATION.] 26.24 Notwithstanding Laws 1982, chapter 450, or any other law to 26.25 the contrary, a Hennepin county employee participating in the 26.26 Hennepin county supplemental retirement program pursuant to Laws 26.27 1982, chapter 450 may, in the event of an unforeseeable 26.28 emergency, apply to the county to discontinue participation in 26.29 the program. Employees who are no longer participating in the 26.30 program may apply for the redemption of all shares credited to 26.31 their share account record. Applications are subject to 26.32 approval of the Hennepin county board of commissioners26.33 administrator in itsthe sole discretion of the administrator. 26.34 For the purposes of this section, the term "unforeseeable 26.35 emergency" shall mean a severe financial hardship to the 26.36 participant resulting from a sudden and unexpected illness or 27.1 accident of the participant or a person dependent upon the 27.2 participant, loss of participant's property due to casualty, or 27.3 other similar extraordinary and unforeseeable circumstances 27.4 arising as a result of events beyond the control of the 27.5 participant. Applications based on foreseeable expenditures 27.6 normally budgetable shall not be approved. A participant 27.7 exercising the option provided by this section shall be 27.8 ineligible for further participation in the supplemental 27.9 retirement program. 27.10 Sec. 3. [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 27.11 HOC POSTRETIREMENT ADJUSTMENT.] 27.12 In addition to the current pensions and other retirement 27.13 benefits payable, the pensions and retirement benefits payable 27.14 to retired police officers and firefighters and their surviving 27.15 spouses by the Eveleth police and fire trust fund are increased 27.16 by $100 per month. Increases are retroactive to January 1, 2003. 27.17 Sec. 4. [EFFECTIVE DATE.] 27.18 (a) Sections 1 and 2 are effective upon approval by the 27.19 Hennepin county board of commissioners and compliance with 27.20 Minnesota Statutes, section 645.021. 27.21 (b) Section 3 is effective on the day after the date on 27.22 which the Eveleth city council and the chief clerical officer of 27.23 the city of Eveleth comply with Minnesota Statutes, section 27.24 645.021, subdivisions 2 and 3. 27.25 ARTICLE 11 27.26 MINNEAPOLIS FIREFIGHTERS RELIEF 27.27 ASSOCIATION CHANGES 27.28 Section 1. Minnesota Statutes 2002, section 423C.03, 27.29 subdivision 3, is amended to read: 27.30 Subd. 3. [COMPENSATION OF OFFICERS AND BOARD MEMBERS.] 27.31 Notwithstanding any other law to the contrary, the association 27.32 may provide for payment of the following salaries to its 27.33 officers and board members: 27.34 (1) the executive secretary may receive a salary not 27.35 exceeding 3050 percent of the maximum salary of a first grade 27.36 firefighter; 28.1 (2) the president may receive a salary not exceeding ten 28.2 percent of the maximum salary of a first grade firefighter; and 28.3 (3) all other elected members of the board may receive a 28.4 salary not exceeding 2.5 percent of the maximum salary of a 28.5 first grade firefighter. 28.6 Sec. 2. Minnesota Statutes 2002, section 423C.08, is 28.7 amended to read: 28.8 423C.08 [MEMBER CONTRIBUTION REFUND TO BENEFICIARY UPON 28.9 DEATH.] 28.10 If an active, deferred, or retired member of the 28.11 association dies and no survivor benefit is payable, the 28.12 designated beneficiary of the decedent or, if none, the legal 28.13 representative of the estate of the decedent is entitled, upon 28.14 application, to a refund. The refund shall be an amount equal 28.15 to the member contributions to the credit of the decedent, plus 28.16 interest on those contributions at an annual compounded rate of 28.17 five percent from the first day of the month following the date 28.18 of the contribution to the first day of the month following the 28.19 date of death of the decedent, reduced by the sum of any service 28.20 pension or disability benefit previously paid by the fund to the 28.21 decedent. 28.22 Sec. 3. [INTENT.] 28.23 Section 2 is intended to bring the Minneapolis firefighters 28.24 relief association's statutory provision which provides for a 28.25 refund of member contributions where the decedent does not leave 28.26 a surviving spouse or children in conformance with Minnesota 28.27 Statutes 2002, section 423A.18. 28.28 Sec. 4. [EFFECTIVE DATE.] 28.29 (a) The board of the Minneapolis firefighters relief 28.30 association may increase the salary of the executive secretary 28.31 subject to the applicable maximum set forth in section 1. 28.32 (b) Any salary increase under paragraph (a) may be 28.33 effective on September 1, 2002, or any time thereafter as 28.34 designated by the relief association board providing that the 28.35 requirements specified in section 1 are satisfied during the 28.36 applicable time period. 29.1 (c) Section 2 is effective retroactive to September 25, 29.2 2001. Section 3 is effective on the day following final 29.3 enactment. 29.4 ARTICLE 12 29.5 VOLUNTEER FIREFIGHTER RELIEF 29.6 ASSOCIATION CHANGES 29.7 Section 1. Minnesota Statutes 2002, section 424A.02, 29.8 subdivision 3, is amended to read: 29.9 Subd. 3. [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) Annually 29.10 on or before August 1 of each yearas part of the certification 29.11 of the financial requirements and minimum municipal 29.12 obligation made pursuant todetermined under section 69.772, 29.13 subdivision 4, or 69.773, subdivision 5, as applicable, the 29.14 secretary or some other official of the relief association 29.15 designated in the bylaws of each relief association shall 29.16 calculate and certify to the governing body of the applicable 29.17 qualified municipality the average amount of available financing 29.18 per active covered firefighter for the most recent three-year 29.19 period. The amount of available financing shall include any 29.20 amounts of fire state aid received or receivable by the relief 29.21 association, any amounts of municipal contributions to the 29.22 relief association raised from levies on real estate or from 29.23 other available revenue sources exclusive of fire state aid, and 29.24 one-tenth of the amount of assets in excess of the accrued 29.25 liabilities of the relief association calculated pursuant to29.26 sectionsunder section 69.772, subdivision 2; 69.773, 29.27 subdivisions 2 and 4; or 69.774, subdivision 2, if any. 29.28 (b) The maximum service pension which the relief 29.29 association has authority to provide for in its bylaws for 29.30 payment to a member retiring after the calculation date when the 29.31 minimum age and service requirements specified in subdivision 1 29.32 are met must be determined using the table in paragraph (c) or 29.33 (d), whichever applies. 29.34 (c) For a relief association where the governing bylaws 29.35 provide for a monthly service pension to a retiring member, the 29.36 maximum monthly service pension amount per month for each year 30.1 of service credited that may be provided for in the bylaws is 30.2 the maximum service pension figure corresponding to the average 30.3 amount of available financing per active covered firefighter: 30.4 Minimum Average Amount of Maximum Service Pension 30.5 Available Financing per Amount Payable per Month 30.6 Firefighter for Each Year of Service 30.7 $... $ .25 30.8 42 .50 30.9 84 1.00 30.10 126 1.50 30.11 168 2.00 30.12 209 2.50 30.13 252 3.00 30.14 294 3.50 30.15 335 4.00 30.16 378 4.50 30.17 420 5.00 30.18 503 6.00 30.19 587 7.00 30.20 672 8.00 30.21 755 9.00 30.22 839 10.00 30.23 923 11.00 30.24 1007 12.00 30.25 1090 13.00 30.26 1175 14.00 30.27 1259 15.00 30.28 1342 16.00 30.29 1427 17.00 30.30 1510 18.00 30.31 1594 19.00 30.32 1677 20.00 30.33 1762 21.00 30.34 1845 22.00 30.35 1888 22.50 30.36 1929 23.00 31.1 2014 24.00 31.2 2098 25.00 31.3 2183 26.00 31.4 2267 27.00 31.5 2351 28.00 31.6 2436 29.00 31.7 2520 30.00 31.8 2604 31.00 31.9 2689 32.00 31.10 2773 33.00 31.11 2857 34.00 31.12 2942 35.00 31.13 3026 36.00 31.14 3110 37.00 31.15 39633194 38.00 31.16 40473278 39.00 31.17 41373362 40.00 31.18 Effective beginning December 31, 2000:31.19 42273446 41.00 31.20 43173530 42.00 31.21 44073614 43.00 31.22 44973698 44.00 31.23 Effective beginning December 31, 2001:31.24 45873782 45.00 31.25 46773866 46.00 31.26 47673950 47.00 31.27 48574034 48.00 31.28 Effective beginning December 31, 2002:31.29 49474118 49.00 31.30 50374202 50.00 31.31 51274286 51.00 31.32 52174370 52.00 31.33 Effective beginning December 31, 2003: 31.34 53074454 53.00 31.35 53974538 54.00 31.36 54874622 55.00 32.1 55774706 56.00 32.2 (d) For a relief association in which the governing bylaws 32.3 provide for a lump sum service pension to a retiring member, the 32.4 maximum lump sum service pension amount for each year of service 32.5 credited that may be provided for in the bylaws is the maximum 32.6 service pension figure corresponding to the average amount of 32.7 available financing per active covered firefighter for the 32.8 applicable specified period: 32.9 Minimum Average Amount Maximum Lump Sum Service 32.10 of Available Financing Pension Amount Payable 32.11 per Firefighter for Each Year of Service 32.12 $.. $10 32.13 11 20 32.14 16 30 32.15 23 40 32.16 27 50 32.17 32 60 32.18 43 80 32.19 54 100 32.20 65 120 32.21 77 140 32.22 86 160 32.23 97 180 32.24 108 200 32.25 131 240 32.26 151 280 32.27 173 320 32.28 194 360 32.29 216 400 32.30 239 440 32.31 259 480 32.32 281 520 32.33 302 560 32.34 324 600 32.35 347 640 32.36 367 680 33.1 389 720 33.2 410 760 33.3 432 800 33.4 486 900 33.5 540 1000 33.6 594 1100 33.7 648 1200 33.8 702 1300 33.9 756 1400 33.10 810 1500 33.11 864 1600 33.12 918 1700 33.13 972 1800 33.14 1026 1900 33.15 1080 2000 33.16 1134 2100 33.17 1188 2200 33.18 1242 2300 33.19 1296 2400 33.20 1350 2500 33.21 1404 2600 33.22 1458 2700 33.23 1512 2800 33.24 1566 2900 33.25 1620 3000 33.26 1672 3100 33.27 1726 3200 33.28 1753 3250 33.29 1780 3300 33.30 1820 3375 33.31 1834 3400 33.32 1888 3500 33.33 1942 3600 33.34 1996 3700 33.35 2023 3750 33.36 2050 3800 34.1 2104 3900 34.2 2158 4000 34.3 2212 4100 34.4 2265 4200 34.5 2319 4300 34.6 2373 4400 34.7 2427 4500 34.8 2481 4600 34.9 2535 4700 34.10 2589 4800 34.11 2643 4900 34.12 2697 5000 34.13 2751 5100 34.14 2805 5200 34.15 2859 5300 34.16 2913 5400 34.17 2967 5500 34.18 Effective beginning December 31, 2000:34.19 3021 5600 34.20 3075 5700 34.21 3129 5800 34.22 3183 5900 34.23 3237 6000 34.24 Effective beginning December 31, 2001:34.25 3291 6100 34.26 3345 6200 34.27 3399 6300 34.28 3453 6400 34.29 3507 6500 34.30 Effective beginning December 31, 2002:34.31 3561 6600 34.32 3615 6700 34.33 3669 6800 34.34 3723 6900 34.35 3777 7000 34.36 Effective beginning December 31, 2003: 35.1 3831 7100 35.2 3885 7200 35.3 3939 7300 35.4 3993 7400 35.5 4047 7500 35.6 (e) For a relief association in which the governing bylaws 35.7 provide for a monthly benefit service pension as an alternative 35.8 form of service pension payment to a lump sum service pension, 35.9 the maximum service pension amount for each pension payment type 35.10 must be determined using the applicable table contained in this 35.11 subdivision. 35.12 (f) If a relief association establishes a service pension 35.13 in compliance with the applicable maximum contained in paragraph 35.14 (c) or (d) and the minimum average amount of available financing 35.15 per active covered firefighter is subsequently reduced because 35.16 of a reduction in fire state aid or because of an increase in 35.17 the number of active firefighters, the relief association may 35.18 continue to provide the prior service pension amount specified 35.19 in its bylaws, but may not increase the service pension amount 35.20 until the minimum average amount of available financing per 35.21 firefighter under the table in paragraph (c) or (d), whichever 35.22 applies, permits. 35.23 (g) No relief association is authorized to provide a 35.24 service pension in an amount greater than the largest applicable 35.25 flexible service pension maximum amount even if the amount of 35.26 available financing per firefighter is greater than the 35.27 financing amount associated with the largest applicable flexible 35.28 service pension maximum. 35.29 Sec. 2. [BENEFIT RATIFICATION; WHITE BEAR LAKE.] 35.30 Notwithstanding Minnesota Statutes, section 424A.02, 35.31 subdivisions 3 and 3a, to the contrary, the service pension 35.32 amounts specified in the bylaws of the White Bear Lake fire 35.33 department relief association following bylaw amendments in 35.34 January 1999 and prior to the effective date of this section are 35.35 ratified. 35.36 Sec. 3. [MARSHALL VOLUNTEER FIRE.] 36.1 Notwithstanding any provision of Minnesota Statutes, 36.2 section 424A.02, subdivision 7, or other law to the contrary, as 36.3 a pilot project, the Marshall volunteer firefighter relief 36.4 association may amend its bylaws to pay interest on deferred 36.5 lump sum payment pensions based on a rate determined annually by 36.6 the board of trustees based on the actual time weighted total 36.7 rate of return investment performance of the special fund as 36.8 reported by the office of the state auditor under Minnesota 36.9 Statutes, section 356.219, up to five percent, and applied 36.10 consistently for all deferred service pensioners. 36.11 Sec. 4. [EFFECTIVE DATE.] 36.12 Section 3 is effective on the day after the date on which 36.13 the Marshall city council and the chief clerical officer of the 36.14 city of Marshall comply with Minnesota Statutes, section 36.15 645.021, subdivisions 2 and 3. 36.16 ARTICLE 13 36.17 PLYMOUTH VOLUNTEER FIREFIGHTER RELIEF 36.18 ASSOCIATION ANCILLARY BENEFIT CHANGES 36.19 Section 1. Laws 1978, chapter 685, section 1, as amended 36.20 by Laws 1979, chapter 201, section 41, is amended to read: 36.21 Section 1. [PLYMOUTH VOLUNTEER FIREFIGHTERS' RELIEF 36.22 ASSOCIATION.] 36.23 The bylaws of the Plymouth firefighter's relief association 36.24 may be amended to provide for payment of a disability pension in 36.25 an amount equal to $8.50 per month per year of service, to a36.26 maximum of $255 per monthconsistent with the ancillary benefit 36.27 requirements specified in Minnesota Statutes, section 424A.02, 36.28 subdivision 9, to a firefighter qualified pursuant todetermined 36.29 to be disabled, as defined in the bylaws of the association and 36.30 under procedures specified in those bylaws. No member shall be 36.31 entitled to draw both a disability pension and a service pension. 36.32 Sec. 2. Laws 1978, chapter 685, section 2, is amended to 36.33 read: 36.34 Sec. 2. The Plymouth firefighter's relief association may 36.35 provide for a benefit to the surviving spouse of a volunteer 36.36 firefighter who died, providing that the surviving spouse 37.1 qualifies under the terms of the bylaws , such benefit to be paid37.2 as the bylaws of the association may provide, except that the37.3 bylaws may not provide for a spouse's benefit of more than37.4 $127.50 per month, and provided the benefit shall cease as of37.5 the date of the spouse's remarriageand the benefit is 37.6 consistent with ancillary benefit requirements specified in 37.7 Minnesota Statutes, section 424A.02, subdivision 9. 37.8 Sec. 3. Laws 1978, chapter 685, section 3, is amended to 37.9 read: 37.10 Sec. 3. The Plymouth firefighter's relief association may 37.11 pay a pension for the children of deceased members, as the 37.12 association's bylaws may provide, consistent with ancillary 37.13 benefit requirements specified in Minnesota Statutes, section 37.14 424A.02, subdivision 9. 37.15 Sec. 4. Laws 1978, chapter 685, section 6, is amended to 37.16 read: 37.17 Sec. 6. (a) The bylaws of the Plymouth firefighter's 37.18 relief association may further provide that when any active or 37.19 deferred member of the association or any pensioner who is a37.20 former memberdisabilitant or service pension recipient dies, 37.21 there may be paid a death or funeral benefit to defray or assist 37.22 the family of the deceased with funeral expenses. 37.23 (b) A benefit paid under this section due to the death of 37.24 an active or deferred member must conform to Minnesota Statutes, 37.25 section 424A.02, subdivision 9. 37.26 (c) A death or funeral benefit may be paid under this 37.27 section to the family of a deceased disabilitant or service 37.28 pensioner notwithstanding Minnesota Statutes, section 424A.02, 37.29 subdivision 9, providing that liabilities relating to this 37.30 benefit are recognized in determinations of actuarial condition 37.31 and funding costs, as determined under section 69.772 or 69.773, 37.32 whichever is applicable. Notwithstanding any law to the 37.33 contrary, the association is authorized to use a load factor or 37.34 factors to recognize liabilities relating to funeral or death 37.35 benefits paid to the family of a deceased disabilitant or 37.36 service pensioner. Benefits are not payable under this 38.1 paragraph if the city council does not approve the load factor 38.2 or factors used in determinations of actuarial conditions and 38.3 funding costs. 38.4 Sec. 5. [REPEALER.] 38.5 Laws 1978, chapter 685, section 5, is repealed. 38.6 Sec. 6. [EFFECTIVE DATE.] 38.7 Sections 1 to 5 are effective on the day after the date on 38.8 which the Plymouth city council and the chief clerical officer 38.9 of the city of Plymouth complete in a timely manner their 38.10 compliance with Minnesota Statutes, section 645.021, 38.11 subdivisions 2 and 3. 38.12 ARTICLE 14 38.13 PRIOR SERVICE CREDIT PURCHASE PROVISIONS 38.14 Section 1. Laws 2000, chapter 461, article 19, section 6, 38.15 is amended to read: 38.16 Sec. 6. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 38.17 UNCREDITED TEACHING SERVICE PERIODS.] 38.18 (a) An eligible person described in paragraph (b) is 38.19 entitled to purchase allowable service credit from the 38.20 Minneapolis teachers retirement fund association basic program 38.21 for the periods of teaching employment specified in paragraph 38.22 (c) by making the payment required under Minnesota Statutes, 38.23 section 356.55. 38.24 (b) An eligible person is a person who: 38.25 (1) was employed by special school district No. 1 38.26 (Minneapolis) as a long call reserve teacher from October 1972 38.27 to June 1973 and was covered by the Minneapolis employees 38.28 retirement fund; 38.29 (2) was employed by special school district No. 1 38.30 (Minneapolis) as a school social worker at Franklin junior high 38.31 school from August 28, 1973, through June 12, 1974, and from 38.32 August 29, 1974, through June 11, 1975, without retirement 38.33 coverage; 38.34 (3) was employed by special school district No. 1 38.35 (Minneapolis) as a school social worker at North high school 38.36 from August 29, 1975, through December 19, 1975, covered by the 39.1 Minneapolis teachers retirement fund association; 39.2 (4) was retained by special school district No. 1 39.3 (Minneapolis) in the capacity of a school social worker at North 39.4 high school as an hourly wage social worker from August 1976 39.5 through June 1983 without retirement coverage; and 39.6 (5) is currently employed by Hennepin county covered by the 39.7 public employees retirement association. 39.8 (c) The periods for allowable service credit purchase are 39.9 August 28, 1973, through June 12, 1974; and August 29, 1974, 39.10 through June 11, 1975. 39.11 (d) An eligible person must provide any relevant 39.12 documentation related to eligibility to make this service credit 39.13 purchase required by the executive director of the Minneapolis 39.14 teachers retirement fund association. 39.15 (e) Allowable service credit for the purchase periods must 39.16 be granted by the Minneapolis teachers retirement fund 39.17 association to the account of the eligible person upon receipt 39.18 of the prior service credit purchase payment amount. Authority 39.19 provided by this section is voided if payment is not made before 39.20 December 31, 2003, or before commencing receipt of an annuity 39.21 from the Minneapolis teachers retirement fund association, 39.22 whichever is earlier. 39.23 (f) The prior service credit purchase payment amount shall39.24 be computed by the actuary retained by the legislative39.25 commission on pensions and retirement. Thatcomputation must 39.26 give recognition, in applying the process stated in Minnesota 39.27 Statutes, section 356.55, give recognitionto the liabilities 39.28 that would be created in the Minneapolis teachers retirement 39.29 fund association and other Minnesota public pension funds due to 39.30 the service credit purchase. 39.31 (g) Following receipt of that purchase payment amount, the 39.32 executive director of the Minneapolis teachers retirement fund 39.33 association shall allocate and transmit that amount to the 39.34 applicable pension administrations, as determined under 39.35 paragraph (f). 39.36 Sec. 2. [TEACHERS RETIREMENT ASSOCIATION; SERVICE CREDIT 40.1 PURCHASE FOR SABBATICAL LEAVES.] 40.2 (a) Notwithstanding Minnesota Statutes, section 354.092, or 40.3 any other law to the contrary, an eligible person described in 40.4 paragraph (b) is entitled to purchase not more than three years 40.5 of allowable service credit from the teachers retirement 40.6 association for sabbatical leave as defined in Minnesota 40.7 Statutes, section 122A.49. 40.8 (b) An eligible person is a person who: 40.9 (1) worked as a teacher for independent school district No. 40.10 191, Burnsville-Eagan-Savage; 40.11 (2) was on sabbatical leave at some time between January 1, 40.12 1982, and December 31, 1989; and 40.13 (3) did not receive service credit for time on sabbatical 40.14 leave because the leave was not properly reported to the 40.15 teachers retirement association. 40.16 (c) An eligible person described in paragraph (b) must 40.17 apply with the executive director of the teachers retirement 40.18 association to make a service credit purchase under this 40.19 section. The application must be in writing and must include 40.20 all necessary documentation of the applicability of this section 40.21 and any other relevant information that the executive director 40.22 may require. 40.23 (d) Allowable service credit for the purchase periods must 40.24 be granted by the teachers retirement association to the account 40.25 of an eligible person upon receipt of the portion of the prior 40.26 service credit purchase payment amount payable under paragraph 40.27 (e) in a lump sum by the applicable eligible person. 40.28 (e) Notwithstanding Minnesota Statutes, section 356.55 or 40.29 356.551, whichever is applicable, an eligible person may pay 40.30 before September 1, 2003, or the date of termination from 40.31 service, whichever is earlier, an amount equal to the employee 40.32 contribution rate or rates in effect during the applicable 40.33 sabbatical leave period or periods specified in paragraph (b) 40.34 applied to the actual salary rate or rates in effect during that 40.35 period or periods, plus annual compound interest at the rate of 40.36 8.5 percent from the midpoint of each applicable sabbatical 41.1 leave period, to the date on which the payment is actually 41.2 made. Independent school district No. 191 must pay the 41.3 remaining balance of the prior service credit purchase payment 41.4 amount calculated under Minnesota Statutes, section 356.55 or 41.5 356.551, whichever is applicable, within 30 days of the payment 41.6 by an eligible person. The executive director of the teachers 41.7 retirement association must notify the superintendent of 41.8 independent school district No. 191 of its payment amount and 41.9 payment due date if an eligible person makes the required 41.10 payment. 41.11 (f) If independent school district No. 191 fails to pay its 41.12 portion of the required prior service credit purchase payment 41.13 amount, the executive director of the teachers retirement 41.14 association must notify the commissioner of finance of that fact 41.15 and the commissioner of finance must order that the required 41.16 employer payment be deducted from the next subsequent payment or 41.17 payments of state education aid to the school district and be 41.18 transmitted to the teachers retirement association. 41.19 Sec. 3. [SPECIAL SCHOOL DISTRICT NO. 1; QUALIFIED 41.20 PART-TIME TEACHER PROGRAM RETROACTIVE COVERAGE.] 41.21 (a) An eligible individual is a teacher who: 41.22 (1) was born on March 10, 1950; 41.23 (2) is a basic plan member of the Minneapolis teachers 41.24 retirement fund association; 41.25 (3) first became a Minneapolis teachers retirement fund 41.26 association member in August 1972; and 41.27 (4) entered into a job sharing arrangement with another 41.28 Minneapolis teachers retirement fund association member for the 41.29 2001-2002 school year but failed to enter into a qualified 41.30 part-time teacher agreement for that school year. 41.31 (b) Notwithstanding any provision of Minnesota Statutes, 41.32 section 354A.094, to the contrary, an eligible individual 41.33 described in paragraph (a) is authorized to receive full-time 41.34 salary and service credit in the Minneapolis teachers retirement 41.35 fund association basic program for service under Minnesota 41.36 Statutes, section 354A.094, for the 2001-2002 school year, if 42.1 all conditions required by this section are met. 42.2 (c) To receive the full-time equivalent service and salary 42.3 credit for the 2001-2002 school year provided by this section, 42.4 an eligible individual described in paragraph (a) must pay the 42.5 applicable employee contribution under Minnesota Statutes, 42.6 section 354A.12, subdivision 1, on the difference between the 42.7 amount of the person's compensation from which employee 42.8 contributions were actually deducted and the amount of the 42.9 person's full-time equivalent salary under Minnesota Statutes, 42.10 section 354A.094, subdivision 4. The employee must pay 8.5 42.11 percent interest, compounded daily, on all employee 42.12 contributions required under this section, from the date the 42.13 contributions would have occurred if the individual were 42.14 employed on a full-time basis, until paid. 42.15 (d) If payment is made under paragraph (c), upon 42.16 notification from the Minneapolis teachers retirement fund 42.17 association, special school district No. 1, Minneapolis, must 42.18 pay the applicable employer and additional employer 42.19 contributions under Minnesota Statutes, section 354A.12, 42.20 subdivision 2a, on the difference between the person's full-time 42.21 equivalent salary and actual salary upon which contributions 42.22 were previously made for the eligible individual. The employer 42.23 must pay 8.5 percent interest, compounded daily, on all employer 42.24 and employer additional contributions required under this 42.25 section, from the date the contributions would have occurred if 42.26 the individual were employed on a full-time basis, until paid. 42.27 (e) Payments under this section must be made in a lump sum 42.28 to the Minneapolis teachers retirement fund association. 42.29 Payment under paragraph (c) must occur on or before June 30, 42.30 2003, or the effective date of retirement, whichever is 42.31 earlier. Payment by the employer under paragraph (d) must be 42.32 made within 30 days following payment by the eligible employee. 42.33 (f) The eligible person must provide any relevant 42.34 documentation that the Minneapolis teachers retirement fund 42.35 association may request. 42.36 ARTICLE 15 43.1 VARIOUS ONE PERSON AND SMALL GROUP 43.2 RETIREMENT CHANGES 43.3 Section 1. [TEACHERS RETIREMENT ASSOCIATION; COVERAGE 43.4 ELECTION OPTION DEADLINE EXTENSION.] 43.5 (a) Notwithstanding any provision of Minnesota Statutes, 43.6 section 354B.21, subdivision 2 or 3 to the contrary, an eligible 43.7 person described in paragraph (b) is entitled to elect to 43.8 continue retirement coverage by the teachers retirement 43.9 association. 43.10 (b) An eligible person is a person who: 43.11 (1) was born on May 5, 1960; 43.12 (2) was first employed as a teacher for the 1982-1983 43.13 school year; 43.14 (3) was employed as a teacher by independent school 43.15 district No. 345, New London-Spicer, from the 1984-1985 school 43.16 year until the 1994-1995 school year; 43.17 (4) was employed as a teacher by independent school 43.18 district No. 858, St. Charles, from the 1995-1996 school year 43.19 through the 2001-2002 school year; 43.20 (5) was employed by the Riverland community college on 43.21 August 22, 2002; and 43.22 (6) received a Minnesota state colleges and universities 43.23 system retirement plan election form on August 27, 2002, but did 43.24 not file the form by December 4, 2002, and received individual 43.25 retirement account retirement plan coverage by default. 43.26 (c) The election of teachers retirement coverage must be 43.27 made in writing by the eligible person and must be made on or 43.28 before September 1, 2003. 43.29 (d) If an election of teachers retirement association 43.30 coverage is made under this section, the Minnesota state 43.31 colleges and universities system shall transfer from the 43.32 individual retirement account plan member and employer 43.33 contributions equal to ten percent of the eligible person's 43.34 covered salary as an employee of the system from August 22, 43.35 2002, to the date of the coverage election under this section, 43.36 plus annual interest at the rate of 8.5 percent. Upon the 44.1 contribution transfer, the teachers retirement association shall 44.2 credit the eligible person with allowable and formula service 44.3 credit for the period August 22, 2002, to the date of the 44.4 coverage election. 44.5 Sec. 2. [DULUTH TEACHERS RETIREMENT FUND ASSOCIATION; 44.6 AUTHORIZATION TO MAKE PAYMENT OF EMPLOYEE AND EMPLOYER 44.7 CONTRIBUTIONS.] 44.8 (a) Notwithstanding any provision of law to the contrary, 44.9 an eligible person described in paragraph (b) is authorized to 44.10 pay employee and employer contributions to the Duluth teachers 44.11 retirement fund association for the period described in 44.12 paragraph (c). 44.13 (b) An eligible person is a person who: 44.14 (1) was born on October 13, 1949; 44.15 (2) was initially employed by independent school district 44.16 No. 709, Duluth, on December 4, 1972; 44.17 (3) is a current employee of independent school district 44.18 No. 709, Duluth, and is a current member of the Duluth teachers 44.19 retirement fund association; 44.20 (4) was employed on a part-time basis by independent school 44.21 district No. 709, Duluth, for the 2001-2002 school year; and 44.22 (5) was not notified of the right to pay employee and 44.23 employer contributions to the Duluth teachers retirement fund 44.24 association under Minnesota Statutes, section 354A.094, while 44.25 employed on a part-time basis for the 2001-2002 school year. 44.26 (c) The purchase period is September 4, 2001, to June 7, 44.27 2002. 44.28 (d) The payment amount shall be the product of the 44.29 following: 44.30 (1) the total of the employee and employer contribution 44.31 rates of the Duluth teachers retirement fund association 44.32 prescribed in Minnesota Statutes, section 354A.12; and 44.33 (2) the salary amount equal to the difference between the 44.34 salary the eligible person would have earned from independent 44.35 school district No. 709, Duluth, had the eligible person worked 44.36 on a full-time basis during the 2001-2002 school year and the 45.1 total salary the eligible person actually earned from 45.2 independent school district No. 709, Duluth, during the 45.3 2001-2002 school year. 45.4 (e) Interest is payable on the payment amount in paragraph 45.5 (d) using the preretirement interest rate assumption specified 45.6 in Minnesota Statutes, section 356.215, subdivision 8, 45.7 compounded annually, accruing from June 30, 2002, to the date 45.8 the payment is received in the office of the Duluth teachers 45.9 retirement fund association. 45.10 (f) Credit for the higher salary for the purchase period 45.11 must be granted by the Duluth teachers retirement fund 45.12 association to the eligible person upon receipt of payment of 45.13 the employee and employer contribution amount. 45.14 (g) Notwithstanding Minnesota Statutes, section 354A.094, 45.15 subdivision 4, independent school district No. 709, Duluth, is 45.16 not permitted to pay any portion of the payment amount. 45.17 (h) The authority to make payment of employee and employer 45.18 contributions expires 60 days after enactment or on the date of 45.19 the termination of active service by the eligible person, 45.20 whichever occurs earlier. 45.21 Sec. 3. [SURVIVOR BENEFITS.] 45.22 Notwithstanding any provision of Minnesota Statutes, 45.23 section 353.657, subdivision 1, requiring a specified period of 45.24 marriage to obtain survivor benefits, the surviving spouse of a 45.25 firefighter who was born on March 11, 1969, and who died in an 45.26 accident on February 6, 2000, is entitled to survivor benefits 45.27 provided in Minnesota Statutes, section 353.657. 45.28 Sec. 4. [MSRS-GENERAL; REFUND ELIGIBILITY IN CERTAIN 45.29 INSTANCES.] 45.30 Notwithstanding any provision of Minnesota Statutes, 45.31 section 352.22, subdivision 1, to the contrary, a person who 45.32 previously has been employed as a state employee, who was placed 45.33 on a medical leave of absence before April 1, 2002, and who was 45.34 still on the medical leave on April 1, 2003, is eligible to 45.35 receive a refund under Minnesota Statutes, section 352.22, if 45.36 the person has not again become a state employee covered by the 46.1 system on the refund application date. 46.2 Sec. 5. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION COVERAGE 46.3 TERMINATION.] 46.4 Subdivision 1. [ELIGIBILITY.] (a) An eligible individual 46.5 specified in paragraph (b) is authorized to apply for a 46.6 retirement annuity, provided necessary age and service 46.7 requirements are met, under Minnesota Statutes, section 353.29 46.8 or 353.30, as applicable, as further specified under subdivision 46.9 2. 46.10 (b) An eligible individual is an individual who: 46.11 (1) was employed as a Beltrami county employee and became a 46.12 member of the public employees retirement association general 46.13 plan due to that service on June 1, 1991; 46.14 (2) was elected to the Bemidji city council and took office 46.15 in January 2001; 46.16 (3) elected under law then applicable to have public 46.17 employees retirement association general plan coverage for the 46.18 city council elected service; and 46.19 (4) terminated Beltrami county employment but is unable to 46.20 commence receipt of a public employees retirement association 46.21 general plan annuity because of the continuing public employees 46.22 retirement association general plan coverage for the elected 46.23 city council service. 46.24 Subd. 2. [RETIREMENT ANNUITY.] (a) Notwithstanding an 46.25 irrevocable election to participate in the public employees 46.26 retirement association general plan as an elected official and 46.27 continuation of elected service, an eligible individual under 46.28 subdivision 1, paragraph (b), is deemed to have terminated 46.29 membership under Minnesota Statutes, section 353.01, subdivision 46.30 11b, following the termination of the Beltrami county employment. 46.31 (b) If the requirements of paragraph (a) are satisfied, the 46.32 eligible individual may apply for a retirement annuity under 46.33 Minnesota Statutes, section 353.29 or 353.30, as applicable. In 46.34 computing the annuity, the public employees retirement 46.35 association must exclude salary due to the elected Bemidji city 46.36 council service. Deferred annuity augmentation under Minnesota 47.1 Statutes, section 353.71, applies to this annuity. 47.2 Subd. 3. [TREATMENT OF BEMIDJI CITY COUNCIL CONTRIBUTIONS 47.3 TO THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION.] (a) All 47.4 employee contributions to the public employees retirement 47.5 association coordinated plan by an eligible individual in 47.6 subdivision 1, paragraph (b), due to the elected Bemidji city 47.7 council service, and all corresponding employer contributions, 47.8 must be determined. 47.9 (b) An eligible individual under subdivision 1, paragraph 47.10 (b), must elect, within one year of the effective date of this 47.11 section or upon termination of elective service, whichever is 47.12 earlier, a refund under Minnesota Statutes, section 353.34, 47.13 subdivision 2, of employee contributions determined under 47.14 paragraph (a), or coverage by the public employees defined 47.15 contribution plan under Minnesota Statutes, chapter 353D, as 47.16 further specified in paragraph (c). 47.17 (c) If public employee defined contribution plan coverage 47.18 is elected under paragraph (b), contributions to that plan 47.19 commence as of the first day of the pay period following this 47.20 election, and accumulated employee and employer contributions 47.21 determined under paragraph (a) must be transferred with six 47.22 percent annual interest to an account for the eligible 47.23 individual in the public employees defined contribution plan. 47.24 (d) If no election is made by an eligible individual by the 47.25 required date in paragraph (b), the individual is assumed to 47.26 have elected the refund indicated in paragraph (b). 47.27 (e) Upon an election under paragraph (b), or a mandatory 47.28 refund under paragraph (d), all rights in the public employees 47.29 retirement association coordinated plan due to elected Bemidji 47.30 city council service are forfeited and may not be reestablished. 47.31 Sec. 6. [EFFECTIVE DATE.] 47.32 (a) Sections 1 to 5 are effective on the day following 47.33 final enactment. 47.34 (b) Section 3 applies retroactively to the surviving spouse 47.35 of a person who died on or after February 1, 2000.