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Minnesota Legislature

Office of the Revisor of Statutes

SF 2239

4th Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

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

Current Version - 4th Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8
2.9 2.10 2.11
2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21
2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29
2.30 2.31 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14
4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24
4.25 4.26 4.27 4.28 4.29 4.30 5.1 5.2
5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12
5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22
5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11
6.12 6.13 6.14
6.15 6.16
6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26
6.27 6.28 6.29 6.30 6.31 6.32 6.33 7.1 7.2 7.3 7.4 7.5 7.6 7.7
7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16
7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30
7.31 7.32 7.33 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23
8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 8.35 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13
9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11
10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 11.1 11.2 11.3 11.4 11.5
11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25
11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33
12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29
12.30 12.31 12.32 12.33 12.34 12.35 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 13.35 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18
14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 14.35 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 15.35 15.36 16.1 16.2
16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20
16.21 16.22
16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11
17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23
17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 17.34 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19
18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 18.35 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16
19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33 19.34 19.35 20.1 20.2 20.3 20.4 20.5
20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 20.35 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17
21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28
21.29 21.30 21.31 21.32 21.33 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16
22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25
22.26 22.27 22.28 22.29 22.30 22.31
22.32 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 23.35 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 24.35 24.36 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 25.35 25.36 26.1 26.2 26.3 26.4 26.5 26.6
26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22
26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 27.35 27.36 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15
28.16 28.17 28.18 28.19 28.20 28.21 28.22
28.23 28.24 28.25 28.26 28.27 28.28 28.29
28.30 28.31 28.32 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 29.34 29.35 29.36 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15
30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 30.35 31.1 31.2 31.3
31.4 31.5 31.6 31.7 31.8 31.9 31.10
31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29
31.30 31.31 31.32 31.33 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11
32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 32.35 33.1 33.2 33.3 33.4 33.5 33.6
33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 33.34 33.35 34.1 34.2
34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 34.35 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14
35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24
35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 35.34 36.1 36.2 36.3 36.4
36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22
36.23 36.24 36.25 36.26 36.27 36.28 36.29
36.30 36.31 36.32 36.33 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14
37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33
37.34 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 38.33 38.34 38.35 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8
39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17
39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25
39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 40.1 40.2 40.3
40.4 40.5 40.6 40.7 40.8 40.9
40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18
40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26
40.27 40.28 40.29 40.30 40.31 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21
41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34 41.35 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24
42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24
43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 43.35 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34 44.35 44.36 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14
45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34 45.35 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 46.34 46.35 46.36
47.1 47.2 47.3 47.4 47.5 47.6 47.7
47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19
48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10
49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21
49.22 49.23
49.24 49.25 49.26 49.27 49.28
49.29 49.30 49.31 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16
50.17 50.18
50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 50.34 50.35 51.1 51.2 51.3 51.4
51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25
51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17
52.18 52.19
52.20 52.21
52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11
53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29
53.30 53.31 53.32 53.33 53.34 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24
54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34 54.35 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33
55.34 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 56.35 56.36 57.1 57.2 57.3 57.4 57.5
57.6 57.7
57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19
57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 57.34 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17
58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 58.33 58.34 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16
59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29
59.30 59.31 59.32 59.33 59.34 60.1 60.2 60.3 60.4 60.5 60.6 60.7
60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 60.34 60.35 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17
61.18 61.19
61.20 61.21
61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 62.34 62.35 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12
63.13 63.14
63.15 63.16
63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 63.34 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11
64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29
64.30 64.31 64.32 64.33 64.34
65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 65.35 65.36 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 66.35 66.36 67.1 67.2 67.3
67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29
67.30 67.31 67.32 67.33 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 68.34 68.35 68.36 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 69.35 69.36 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 70.34 70.35 70.36 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27
71.28 71.29 71.30 71.31
71.32 71.33
72.1 72.2
72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15
72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29
73.30 74.1 74.2 74.3 74.4 74.5 74.6 74.7
74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18
74.19 74.20 74.21
74.22 74.23 74.24
74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 74.33
75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9
75.10 75.11 75.12 75.13 75.14
75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25
75.26 75.27 75.28
75.29 75.30 75.31 75.32 76.1 76.2
76.3 76.4 76.5 76.6 76.7 76.8 76.9
76.10 76.11 76.12 76.13 76.14
76.15 76.16 76.17 76.18
76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29
76.30 76.31 77.1 77.2 77.3
77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 77.34 77.35 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16
78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 78.33 78.34 78.35 79.1 79.2 79.3
79.4 79.5 79.6 79.7 79.8 79.9
79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 80.1 80.2
80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20
80.21 80.22 80.23 80.24 80.25 80.26 80.27
80.28 80.29 80.30 80.31 80.32 80.33 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12
81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28
81.29 81.30 81.31 81.32 81.33 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26
82.27 82.28 82.29 82.30 82.31
82.32 82.33 82.34 83.1 83.2 83.3 83.4 83.5 83.6
83.7 83.8 83.9 83.10 83.11
83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23
83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 84.1 84.2 84.3
84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13
84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 84.34 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17
85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25
85.26 85.27 85.28 85.29 85.30 85.31 85.32
86.1 86.2 86.3 86.4 86.5 86.6 86.7
86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 86.33 86.34 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29
87.30 87.31 87.32 87.33 87.34 87.35 88.1 88.2 88.3
88.4 88.5
88.6 88.7 88.8
88.9 88.10 88.11 88.12
88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22
88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11
89.12 89.13 89.14 89.15
89.16 89.17 89.18 89.19
89.20 89.21 89.22 89.23
89.24 89.25 89.26 89.27
89.28 89.29 89.30 89.31 90.1 90.2 90.3 90.4
90.5 90.6 90.7 90.8
90.9 90.10 90.11 90.12
90.13 90.14 90.15 90.16
90.17 90.18 90.19 90.20 90.21
90.22 90.23 90.24 90.25 90.26
90.27 90.28 90.29 90.30
91.1 91.2 91.3 91.4
91.5 91.6 91.7 91.8
91.9 91.10 91.11 91.12 91.13 91.14
91.15 91.16 91.17 91.18
91.19 91.20 91.21 91.22 91.23 91.24
91.25 91.26 91.27 91.28
91.29 91.30 92.1 92.2
92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15
92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25
92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 93.1 93.2 93.3
93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12
93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20
93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31
93.32 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10
94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27
94.28 94.29 94.30 94.31 94.32 94.33 94.34 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9
95.10 95.11 95.12 95.13 95.14
95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32
95.33 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11
96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23
96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8
97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22
97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32 97.33 97.34 98.1 98.2 98.3 98.4
98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17
98.18 98.19 98.20 98.21 98.22 98.23
98.24 98.25 98.26 98.27
98.28 98.29 98.30 98.31 98.32
99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24
99.25 99.26 99.27 99.28 99.29 99.30 99.31 99.32 99.33 99.34 99.35 100.1 100.2 100.3 100.4
100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23
100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 100.34 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24
101.25 101.26 101.27
101.28 101.29 101.30 101.31 101.32 101.33 101.34 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8
102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16
102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 102.34 103.1 103.2 103.3 103.4
103.5 103.6
103.7 103.8
103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26
103.27 103.28 103.29 103.30 103.31 103.32 103.33 104.1 104.2 104.3 104.4 104.5 104.6
104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24
104.25 104.26 104.27 104.28
104.29 104.30
104.31 104.32 104.33 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 105.34 105.35 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20
106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 106.34 106.35
107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9
107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 107.33
108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 108.32 108.33 108.34 108.35 108.36 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21
109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33 109.34 109.35 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8
110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16
110.17 110.18
110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33 110.34 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 111.34 111.35 111.36 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29
112.30 112.31 112.32 112.33 112.34 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23
113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33 113.34 113.35 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12
114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33
115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16
115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 115.33 115.34 115.35 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26
116.27 116.28 116.29 116.30 116.31 116.32 116.33 116.34 116.35 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22
117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 117.32 117.33 117.34 117.35 118.1 118.2 118.3 118.4 118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 118.34
118.35 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26
119.27 119.28 119.29 119.30 119.31 119.32 119.33 119.34 119.35 120.1 120.2
120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 120.33 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22
121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 121.33 121.34 122.1 122.2 122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27
122.28 122.29 122.30 122.31 122.32 122.33 122.34 122.35 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26
123.27 123.28 123.29 123.30 123.31 123.32 123.33 123.34 123.35 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 124.34 124.35 125.1 125.2
125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 125.33 125.34
126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 126.33 126.34 126.35 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9
127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32 127.33 127.34 127.35 128.1 128.2 128.3 128.4 128.5 128.6 128.7
128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17

A bill for an act
relating to retirement; increasing Minnesota state retirement contributions;
providing inclusions to correctional retirement plan; allowing coverage for
prior service; allowing service credit transfers and purchases; modifying certain
retirement plan administrative provisions; requiring certain reports; modifying
certain retirement plan coverages; making changes to Social Security coverage;
modifying investment authority; providing changes to certain retirement funds,
plans, and associations; recodifying various plans; correcting coverage error;
amending Minnesota Statutes 2004, sections 3A.01, subdivisions 1, 2, 6, 8,
by adding subdivisions; 3A.011; 3A.02, subdivisions 1, 1b, 3, 4, 5; 3A.03,
subdivisions 1, 2; 3A.04, subdivisions 1, 2, 3, 4, by adding a subdivision;
3A.05; 3A.07; 3A.10, subdivision 1; 3A.12; 6.72; 69.77, subdivision 9; 136F.45,
subdivision 1a; 352.04, subdivisions 2, 3; 352.113, subdivision 7a; 352.116,
subdivisions 3a, 3b; 352.90; 352.91, subdivisions 1, 2, 3c, 3d, 3e, 3f, 3g, by
adding subdivisions; 352.92, subdivisions 1, 2; 352B.02, subdivisions 1a,
1c; 352C.091, subdivision 1; 352C.10; 352D.02, subdivision 1; 352D.04,
subdivision 2; 352F.04; 353.01, subdivisions 2a, 11a, 11b, 12, 16, by adding
a subdivision; 353.03, subdivisions 1, 1a, by adding a subdivision; 353.27,
subdivisions 7, 7a, 7b; 353.29, subdivision 8; 353.30, subdivisions 3a, 3b;
353.32, subdivisions 1a, 1b; 353.33, subdivisions 1, 9; 353.34, subdivision 1;
353.656, subdivisions 3, 4, 6a; 353D.01, subdivision 2; 353D.02, subdivision 3,
by adding subdivisions; 353D.03, by adding subdivisions; 353E.02, subdivision
3; 353F.04; 354.45, subdivision 1a; 354A.08; 354A.28, subdivision 5; 354A.32,
subdivision 1a; 354D.05; 355.01, subdivision 3g; 355.02, subdivisions 1, 3,
by adding subdivisions; 356.219, subdivisions 3, 6; 356.24, subdivision 1;
356.50; 423B.07; 424A.001, by adding a subdivision; 424A.02, subdivision 8b;
424A.05, subdivision 3; 424A.10; 490.121, subdivisions 1, 6, 7, 13, 14, 15,
22, by adding subdivisions; 490.122; 490.123, subdivisions 1, 1a, 1b, 1c, 2, 3;
490.124, subdivisions 1, 2, 3, 4, 5, 8, 9, 10, 11, 12, 13; 490.125, subdivisions 1,
2; 490.126, as amended; 490.133; 525.05; Minnesota Statutes 2005 Supplement,
sections 353.01, subdivision 2d; 353.028, subdivision 3; 353.28, subdivision
6; 353.656, subdivision 1; 353F.02, subdivision 4; 356A.06, subdivision 7;
423B.09, subdivision 1; 490.121, subdivision 4; Laws 2004, chapter 267, article
8, section 41; Laws 2005, First Special Session chapter 8, article 6, section
4; proposing coding for new law in Minnesota Statutes, chapters 352; 352C;
353; 355; 423B; proposing coding for new law as Minnesota Statutes, chapter
490A; repealing Minnesota Statutes 2004, sections 3A.01, subdivisions 3, 4, 6a,
7; 3A.02, subdivision 2; 3A.04, subdivision 1a; 3A.09; 43A.34, subdivision
1; 352C.01; 352C.011; 352C.021, subdivisions 1, 2, 3, 4, 5, 6, 7; 352C.031,
subdivisions 1, 2, 4, 5, 6; 352C.033; 352C.04; 352C.051; 352C.09; 352C.091,
subdivisions 2, 3; 490.021; 490.025; 490.101; 490.102; 490.103; 490.105;
490.106; 490.107; 490.108; 490.109; 490.1091; 490.12; 490.121, subdivisions 2,
3, 5, 8, 9, 10, 11, 12, 16, 17, 18, 19; 490.124, subdivision 6; 490.132; 490.15;
490.16; 490.18; Minnesota Statutes 2005 Supplement, sections 352C.021,
subdivision 1a; 490.121, subdivision 20.

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

ARTICLE 1

MINNESOTA STATE RETIREMENT SYSTEM

CONTRIBUTION INCREASES

Section 1.

Minnesota Statutes 2004, section 352.04, subdivision 2, is amended to read:


Subd. 2.

Employee contributions.

new text begin(a)new text end The employee contribution to the fund must
be equal to deleted text begin4.0deleted text end new text beginthe following new text endpercent of salarydeleted text begin.deleted text endnew text begin:new text end

new text begin before July 1, 2007
new text end
new text begin 4.00
new text end
new text begin from July 1, 2007, to June 30, 2008
new text end
new text begin 4.25
new text end
new text begin from July 1, 2008, to June 30, 2009
new text end
new text begin 4.50
new text end
new text begin from July 1, 2009, to June 30, 2010
new text end
new text begin 4.75
new text end
new text begin from July 1, 2010, and thereafter
new text end
new text begin 5.00.
new text end

new text begin (b) new text endThese contributions must be made by deduction from salary as provided in
subdivision 4.

Sec. 2.

Minnesota Statutes 2004, section 352.04, subdivision 3, is amended to read:


Subd. 3.

Employer contributions.

The employer contribution to the fund must be
equal to deleted text begin4.0deleted text end new text beginthe following new text endpercent of salarydeleted text begin.deleted text endnew text begin:new text end

new text begin before July 1, 2007
new text end
new text begin 4.00
new text end
new text begin from July 1, 2007, to June 30, 2008
new text end
new text begin 4.25
new text end
new text begin from July 1, 2008, to June 30, 2009
new text end
new text begin 4.50
new text end
new text begin from July 1, 2009, to June 30, 2010
new text end
new text begin 4.75
new text end
new text begin from July 1, 2010, and thereafter
new text end
new text begin 5.00.
new text end

Sec. 3.

new text begin [352.045] PROCEDURE FOR REVISING EMPLOYEE AND
EMPLOYER CONTRIBUTIONS IN CERTAIN INSTANCES.
new text end

new text begin new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin This section applies to the general state employees
retirement plan and to the correctional state employees retirement plan under this chapter,
and to the state patrol retirement plan under chapter 352B.
new text end

new text begin Subd. 2. new text end

new text begin Determination. new text end

new text begin For purposes of this section, a contribution sufficiency
exists if, for purposes of the applicable plan, the total of the employee contributions,
the employer contributions, and any additional employer contributions, if applicable,
exceeds the total of the normal cost, the administrative expenses, and the amortization
contribution of the retirement plan as reported in the most recent actuarial valuation of the
retirement plan prepared by the actuary retained under section 356.214 and prepared under
section 356.215 and the standards for actuarial work of the Legislative Commission on
Pensions and Retirement. For purposes of this section, a contribution deficiency exists
if, for the applicable plan, the total employee contributions, employer contributions, and
any additional employer contributions are less than the total of the normal cost, the
administrative expenses, and the amortization contribution of the retirement plan as
reported in the most recent actuarial valuation of the retirement plan prepared by the
actuary retained under section 356.214 and prepared under section 356.215 and the
standards for actuarial work of the Legislative Commission on Pensions and Retirement.
new text end

new text begin Subd. 3. new text end

new text begin Contribution rate revision. new text end

new text begin Notwithstanding the contribution rate
provisions stated in plan law, the employee and employer contribution rates must be
adjusted:
new text end

new text begin (1) if, after July 1, 2011, the regular actuarial valuations of the applicable plan under
section 356.215 indicate that there is a contribution sufficiency under subdivision 2 equal
to or greater than 0.5 percent of covered payroll for two consecutive years, the employee
and employer contribution rates for the applicable plan must be decreased as determined
under subdivision 4 to a level such that the sufficiency equals no more than 0.25 percent of
covered payroll based on the most recent actuarial valuation; or
new text end

new text begin (2) if, after July 1, 2011, the regular actuarial valuations of the applicable plan under
section 356.215 indicate that there is a deficiency equal to or greater than 0.5 percent of
covered payroll for two consecutive years, the employee and employer contribution rates
for the applicable plan must be increased as determined under subdivision 4 to a level such
that no deficiency exists based on the most recent actuarial valuation.
new text end

new text begin Subd. 4. new text end

new text begin Reporting, commission review. new text end

new text begin (a) The contribution rate increase or
decrease must be determined by the executive director of the Minnesota State Retirement
System, must be reported to the chair and the executive director of the Legislative
Commission on Pensions and Retirement on or before the next February 1, and, if the
Legislative Commission on Pensions and Retirement does not recommend against the
rate change or does not recommend a modification in the rate change, is effective on the
next July 1 following the determination by the executive director that a contribution
deficiency or sufficiency has existed for two consecutive fiscal years based on the most
recent actuarial valuations under section 356.215. If the actuarially required contribution
exceeds or is less than the total support provided by the combined employee and employer
contribution rates for the applicable plan by more than 0.5 percent of covered payroll, the
applicable plan employee and employer contribution rates must be adjusted incrementally
over one or more years to a level such that there remains a contribution sufficiency of no
more than 0.25 percent of covered payroll.
new text end

new text begin (b) No incremental adjustment may exceed 0.25 percent of payroll for either the
employee or employer contribution rates per year in which any adjustment is implemented.
For an applicable plan, a contribution rate adjustment under this section must not be
made until at least two years have passed since fully implementing a previous adjustment
under this section.
new text end

Sec. 4.

Minnesota Statutes 2004, section 352.92, subdivision 1, is amended to read:


Subdivision 1.

Employee contributions.

new text begin(a)new text end Employee contributions of covered
correctional employees must be in an amount equal to deleted text begin5.69deleted text end new text beginthe following new text endpercent of salarydeleted text begin.deleted text endnew text begin:new text end

new text begin before July 1, 2007
new text end
new text begin 5.69
new text end
new text begin from July 1, 2007, to June 30, 2008
new text end
new text begin 6.40
new text end
new text begin from July 1, 2008, to June 30, 2009
new text end
new text begin 7.00
new text end
new text begin from July 1, 2009, to June 30, 2010
new text end
new text begin 7.70
new text end
new text begin from July 1, 2010, and thereafter
new text end
new text begin 8.60.
new text end

new text begin (b) These contributions must be made by deduction from salary as provided in
section 352.04, subdivision 4.
new text end

Sec. 5.

Minnesota Statutes 2004, section 352.92, subdivision 2, is amended to read:


Subd. 2.

Employer contributions.

The employer shall contribute for covered
correctional employees an amount equal to deleted text begin7.98deleted text end new text beginthe following new text endpercent of salarydeleted text begin.deleted text endnew text begin:new text end

new text begin before July 1, 2007
new text end
new text begin 7.98
new text end
new text begin from July 1, 2007, to June 30, 2008
new text end
new text begin 9.10
new text end
new text begin from July 1, 2008, to June 30, 2009
new text end
new text begin 10.10
new text end
new text begin from July 1, 2009, to June 30, 2010
new text end
new text begin 11.10
new text end
new text begin from July 1, 2010, and thereafter
new text end
new text begin 12.10.
new text end

Sec. 6.

Minnesota Statutes 2004, section 352B.02, subdivision 1a, is amended to read:


Subd. 1a.

Member contributions.

new text begin(a)new text end Each member shall pay a sum equal to
deleted text begin 8.40deleted text end new text beginthe following new text endpercent of the member's salary, which deleted text beginshall constitutedeleted text endnew text begin constitutesnew text end the
member contribution to the funddeleted text begin.deleted text endnew text begin:new text end

new text begin before July 1, 2007
new text end
new text begin 8.40
new text end
new text begin from July 1, 2007, to June 30, 2008
new text end
new text begin 9.10
new text end
new text begin from July 1, 2008, to June 30, 2009
new text end
new text begin 9.80
new text end
new text begin from July 1, 2009, and thereafter
new text end
new text begin 10.40.
new text end

new text begin (b) These contributions must be made by deduction from salary as provided in
section 352.04, subdivision 4.
new text end

Sec. 7.

Minnesota Statutes 2004, section 352B.02, subdivision 1c, is amended to read:


Subd. 1c.

Employer contributions.

new text begin(a)new text end In addition to member contributions,
department heads shall pay a sum equal to deleted text begin12.60deleted text end new text beginthe following new text endpercent of the salary upon
which deductions were made, which shall constitute the employer contribution to the funddeleted text begin.deleted text endnew text begin:new text end

new text begin before July 1, 2007
new text end
new text begin 12.60
new text end
new text begin from July 1, 2007, to June 30, 2008
new text end
new text begin 13.60
new text end
new text begin from July 1, 2008, to June 30, 2009
new text end
new text begin 14.60
new text end
new text begin from July 1, 2009, and thereafter
new text end
new text begin 15.60.
new text end

new text begin (b) new text endDepartment contributions must be paid out of money appropriated to departments
for this purpose.

Sec. 8.

Minnesota Statutes 2004, section 352D.04, subdivision 2, is amended to read:


Subd. 2.

Contribution rates.

(a) The money used to purchase shares under this
section is the employee and employer contributions provided in this subdivision.

(b) The employee contribution is an amount equal to deleted text beginthe employee contribution
specified in section 352.04, subdivision 2
deleted text end new text beginfour percent of salarynew text end.

(c) The employer contribution is an amount equal to six percent of salary.

(d) deleted text beginThese contributions must be made in the manner provided in section 352.04,
subdivisions 4, 5, and 6.
deleted text end

deleted text begin(e)deleted text end For members of the legislature, the contributions under this subdivision also must
be made on per diem payments received during a regular or special legislative session, but
may not be made on per diem payments received outside of a regular or special legislative
session, on the additional compensation attributable to a leadership position under section
3.099, subdivision 3, living expense payments under section 3.101, or special session
living expense payments under section 3.103.

deleted text begin(f)deleted text endnew text begin (e)new text end For a judge who is a member of the unclassified plan under section 352D.02,
subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent
of salary, and there is no employer contribution.

new text begin (f) These contributions must be made in the manner provided in section 352.04,
subdivisions 4, 5, and 6.
new text end

Sec. 9. new text beginEFFECTIVE DATE.
new text end

new text begin (a) Sections 1, 2, 3, and 8 are effective July 1, 2007.
new text end

new text begin (b) Sections 4, 5, 6, and 7 are effective July 1, 2006.
new text end

ARTICLE 2

MSRS-CORRECTIONAL RETIREMENT PLAN INCLUSIONS

Section 1.

Minnesota Statutes 2004, section 352.90, is amended to read:


352.90 POLICY.

It is the policy of the legislature to provide special retirement benefits new text beginfor new text endand new text beginspecial
new text end contributions deleted text beginfordeleted text end new text beginby new text endcertain correctional employees who may be required to retire at
an early age because they lose the mental or physical capacity required to maintain the
safety, security, discipline, and custody of inmates at state correctional facilities or of
patients at the Minnesota Security Hospital deleted text beginor atdeleted text endnew text begin, of patients innew text end the Minnesota deleted text beginSexual
Psychopathic Personality Treatment Center
deleted text end new text beginSex Offender Program, new text endor of patients in the
Minnesota extended treatment options deleted text beginon-campusdeleted text end program deleted text beginat the Cambridge Regional
Human Services Center
deleted text end.

Sec. 2.

Minnesota Statutes 2004, section 352.91, subdivision 1, is amended to read:


Subdivision 1.

Qualifying jobs.

"Covered correctional service" means service
performed by a state employee, as defined in section 352.01, employed at a state
correctional facility, the Minnesota Security Hospital, or the Minnesota deleted text beginSexual
Psychopathic Personality Treatment Center
deleted text end new text beginSex Offender Program new text endas:

(1) a corrections officer 1;

(2) a corrections officer 2;

(3) a corrections officer 3;

(4) a corrections officer supervisor;

(5) a corrections deleted text beginofficer 4deleted text endnew text begin lieutenantnew text end;

(6) a corrections captain;

(7) a security counselor; deleted text beginor
deleted text end

(8) a security counselor leadnew text begin; or
new text end

new text begin (9) a corrections canine officernew text end.

Sec. 3.

Minnesota Statutes 2004, section 352.91, subdivision 2, is amended to read:


Subd. 2.

Maintenancenew text begin, correctional industry, new text end and trades.

"Covered correctional
service" also means service rendered at any time by state employees as maintenance
personnel deleted text beginanddeleted text endnew text begin, correctional industry personnel, or new text end members of trades certified by the
commissioner of employee relations new text beginto the executive director new text endas being deleted text beginregularlydeleted text end engaged
new text begin for at least 75 percent of the employee's working time new text endin new text beginthe new text endrehabilitation, treatment,
custody, or supervision of inmates at a Minnesota correctional facility, or of patients at
the Minnesota Security Hospital or deleted text beginatdeleted text end the Minnesota deleted text beginSexual Psychopathic Personality
Treatment Center
deleted text endnew text begin Sex Offender Programnew text end.

Sec. 4.

Minnesota Statutes 2004, section 352.91, subdivision 3c, is amended to read:


Subd. 3c.

Nursing personnel.

(a) "Covered correctional service" means service by
a state employee in one of the employment positions at a correctional facility or at the
Minnesota Security Hospitalnew text begin, or in the Minnesota Sex Offender Program that are new text endspecified
in paragraph (b)deleted text begin, provided thatdeleted text endnew text begin if new text end at least 75 percent of the employee's working time is
spent in direct contact with inmates or patients and the fact of this direct contact is certified
to the executive director by the appropriate commissionerdeleted text begin, unless the person elects to
retain the current retirement
deleted text enddeleted text begincoverage under Laws 1996, chapter 408, article 8, section 21deleted text end.

(b) The employment positions are as follows:

(1) registered nurse - senior;

(2) registered nurse;

(3) registered nurse - principal;

(4) licensed practical nurse 2; and

(5) registered nurse deleted text beginpractitionerdeleted text endnew text begin advance practicenew text end.

Sec. 5.

Minnesota Statutes 2004, section 352.91, subdivision 3d, is amended to read:


Subd. 3d.

Other correctional personnel.

(a) "Covered correctional service" means
service by a state employee in one of the employment positions at a correctional facility or
at the Minnesota Security Hospital specified in paragraph (b)deleted text begin, provided thatdeleted text endnew text begin if new text end at least 75
percent of the employee's working time is spent in direct contact with inmates or patients
and the fact of this direct contact is certified to the executive director by the appropriate
commissionerdeleted text begin, unless the person elects to retain the current retirement coverage under
deleted text enddeleted text begin Laws 1996, chapter 408, article 8, section 21deleted text end.

(b) The employment positions are as follows: bakerdeleted text begin,deleted text endnew text begin; central services administrative
specialist, intermediate; central services administrative specialist, principal; chaplain;
new text end
chemical dependency counselor supervisordeleted text begin,deleted text endnew text begin;new text end chief cookdeleted text begin,deleted text endnew text begin;new text end cookdeleted text begin,deleted text endnew text begin;new text end cook coordinatordeleted text begin,
corrections behavior therapist, corrections behavior therapist specialist, corrections parent
education coordinator,
deleted text endnew text begin; corrections program therapist 1; corrections program therapist 2;
corrections program therapist 3; corrections inmate program coordinator; corrections
transitions program coordinator;
new text end corrections security caseworkerdeleted text begin,deleted text endnew text begin;new text end corrections security
caseworker careerdeleted text begin,deleted text endnew text begin;new text end corrections teaching assistantdeleted text begin,deleted text endnew text begin;new text end new text begindelivery van driver;new text end dentistdeleted text begin,deleted text endnew text begin;new text end electrician
supervisordeleted text begin,deleted text endnew text begin; general maintenance worker;new text end general repair workerdeleted text begin,deleted text endnew text begin; laundry coordinator;new text end
library/information research services specialistdeleted text begin,deleted text endnew text begin;new text end library/information research services
specialist seniordeleted text begin,deleted text endnew text begin; library technician;new text end plumber supervisordeleted text begin,deleted text endnew text begin; psychologist 1;new text end psychologist
3deleted text begin,deleted text endnew text begin;new text end recreation therapistdeleted text begin,deleted text endnew text begin;new text end recreation therapist coordinatordeleted text begin,deleted text endnew text begin;new text end recreation program assistantdeleted text begin,deleted text endnew text begin;new text end
recreation therapist seniordeleted text begin, stores clerk senior,deleted text endnew text begin; sports medicine specialist;new text end water treatment
plant operatordeleted text begin, work therapy technician,deleted text endnew text begin;new text end work therapy assistantdeleted text begin,deleted text endnew text begin;new text end work therapy program
coordinatornew text begin; and work therapy techniciannew text end.

deleted text begin (c) "Covered correctional service" also means service as the director or as an
deleted text end deleted text begin assistant group supervisor of the Phoenix/Pomiga treatment/behavior change program of
deleted text end deleted text begin the Department of Corrections.
deleted text end

Sec. 6.

Minnesota Statutes 2004, section 352.91, subdivision 3e, is amended to read:


Subd. 3e.

Minnesota extended treatment options programdeleted text begin; Cambridgedeleted text end.

new text begin(a)
new text end "Covered correctional service" means service by a state employee in one of the deleted text beginfollowingdeleted text end
employment positions with the Minnesota extended treatment options deleted text beginon-campusdeleted text end program
deleted text begin at the Cambridge Regional Human Services Centerdeleted text endnew text begin specified in paragraph (b)new text end if at least 75
percent of the employee's working time is spent in direct contact with patients who are
in the Minnesota extended treatment options program and if service in such a position
is certified to the executive director by the commissioner of human servicesdeleted text begin, unless thedeleted text end
deleted text begin person elects to retain current retirement coverage under deleted text enddeleted text beginsection 6deleted text endnew text begin.
new text end

new text begin (b) The employment positions arenew text end:

(1) behavior analyst deleted text beginIdeleted text endnew text begin 1new text end;

(2) new text beginbehavior analyst 2;
new text end

new text begin (3) behavior analyst 3;
new text end

new text begin (4) group supervisor;
new text end

new text begin (5) group supervisor assistant;
new text end

new text begin (6) new text endhuman services support specialist;

deleted text begin (3)deleted text end new text begin(7) new text endmental retardation residential program lead;

deleted text begin (4)deleted text end new text begin(8) new text endpsychologist 2;

deleted text begin (5)deleted text end new text begin(9) new text endrecreation program assistant;

deleted text begin (6)deleted text end new text begin(10) new text endrecreation therapist senior;

deleted text begin (7) deleted text endnew text begin (11) new text endregistered nurse senior;

deleted text begin (8)deleted text end new text begin(12) new text endskills development specialist; deleted text beginand
deleted text end

deleted text begin (9)deleted text end new text begin(13) new text endsocial worker seniornew text begin;
new text end

new text begin (14) social worker specialist; and
new text end

new text begin (15) speech pathology specialistnew text end.

Sec. 7.

Minnesota Statutes 2004, section 352.91, subdivision 3f, is amended to read:


Subd. 3f.

Additional Department of Human Services personnel.

(a) "Covered
correctional service" means service by a state employee in one of the employment
positions specified in paragraph (b) at the Minnesota Security Hospital or new text beginin new text endthe Minnesota
deleted text begin Sexual Psychopathic Personality Treatment Centerdeleted text enddeleted text begin, provided thatdeleted text end new text beginSex Offender Program if
new text end at least 75 percent of the employee's working time is spent in direct contact with patients
and the deleted text beginfactdeleted text end new text begindetermination new text endof this direct contact is certified to the executive director by the
commissioner of human services.

(b) The employment positions are:

(1) behavior analyst 2;

(2) deleted text beginlicensed practical nurse 1deleted text endnew text begin behavior analyst 3new text end;

(3) new text beginchemical dependency counselor senior;
new text end

new text begin (4) client advocate;
new text end

new text begin (5) dental assistant registered;
new text end

new text begin (6) group supervisor;
new text end

new text begin (7) group supervisor assistant;
new text end

new text begin (8) licensed practical nurse 1;
new text end

new text begin (9) occupational therapist;
new text end

new text begin (10) occupational therapist, senior;
new text end

new text begin (11) new text endoffice and administrative specialist senior;

deleted text begin (4) deleted text end new text begin (12) psychologist 1;
new text end

new text begin (13)new text end psychologist 2;

deleted text begin (5) deleted text end new text begin (14) psychologist 3;
new text end

new text begin (15) recreation program assistant;
new text end

new text begin (16) recreation therapist senior;
new text end

new text begin (17) rehabilitation counselor senior;
new text end

new text begin (18) skills development specialist;
new text end

new text begin (19) new text end social worker new text beginsenior;
new text end

new text begin (20) social worker new text endspecialist;

deleted text begin (6) behavior analyst 3 deleted text end new text begin (21) social worker specialist, senior;
new text end

new text begin (22) speech pathology clinician;
new text end

new text begin (23) work therapy assistantnew text end; and

deleted text begin (7) social worker seniordeleted text endnew text begin (24) work therapy program coordinatornew text end.

Sec. 8.

Minnesota Statutes 2004, section 352.91, subdivision 3g, is amended to read:


Subd. 3g.

Additional Corrections Department personnel.

(a) "Covered
correctional service" means service by a state employee in one of the employment
positions deleted text beginat the designated Minnesota correctional facilitydeleted text end specified in paragraph (b) if at
least 75 percent of the employee's working time is spent in direct contact with inmates
and the deleted text beginfactdeleted text end new text begindetermination new text endof this direct contact is certified to the executive director by
the commissioner of corrections.

(b) The qualifying employment positions deleted text beginand the designated correctional facilitiesdeleted text end
are:

(1) corrections discipline unit supervisordeleted text begin, at the Minnesota Correctional
Facility-Faribault, the Minnesota Correctional Facility-Lino Lakes, the Minnesota
Correctional Facility-Oak Park Heights, the Minnesota Correctional Facility-Rush City,
and the Minnesota Correctional Facility-St. Cloud
deleted text end;

(2) dental assistant registereddeleted text begin, at the Minnesota Correctional Facility-Faribault, the
Minnesota Correctional Facility-Lino Lakes, the Minnesota Correctional Facility-Moose
Lake, the Minnesota Correctional Facility-Oak Park Heights, and the Minnesota
Correctional Facility-Red Wing
deleted text end;

(3) dental hygienistdeleted text begin, at the Minnesota Correctional Facility-Shakopee and the
Minnesota Correctional Facility-Rush City
deleted text end;

(4) psychologist 2deleted text begin, at the Minnesota Correctional Facility-Faribault, the Minnesota
Correctional Facility-Lino Lakes, the Minnesota Correctional Facility-Moose Lake,
the Minnesota Correctional Facility-Oak Park Heights, the Minnesota Correctional
Facility-Red Wing, the Minnesota Correctional Facility-Rush City, the Minnesota
Correctional Facility-St. Cloud, the Minnesota Correctional Facility-Shakopee, and the
Minnesota Correctional Facility-Stillwater
deleted text end; deleted text beginordeleted text endnew text begin and
new text end

(5) sentencing to service crew leader involved with the inmate community work
crew programdeleted text begin, at the Minnesota Correctional Facility-Faribault and the Minnesota
Correctional Facility-Lino Lakes
deleted text end.

Sec. 9.

Minnesota Statutes 2004, section 352.91, is amended by adding a subdivision
to read:


new text begin Subd. 3h. new text end

new text begin Employment occupation name changes. new text end

new text begin (a) If the occupational title of a
state employee covered by the Minnesota correctional employees retirement plan changes
from the applicable title listed in subdivision 1, 2, 2a, 3c, 3d, 3e, 3f, or 3g, qualification for
coverage by the correctional state employees retirement plan continues until the July 1
next following the title change if the commissioner of employee relations certifies to the
executive director of the Minnesota State Retirement System and to the executive director
of the Legislative Commission on Pensions and Retirement that the duties, requirements,
and responsibilities of the new occupational title are substantially identical to the duties,
requirements, and responsibilities of the prior occupational title.
new text end

new text begin (b) If the commissioner of employee relations does not certify a new occupational
title under paragraph (a), eligibility for future correctional state employees retirement
coverage terminates as of the start of the first payroll period next following the effective
date of the occupational title change.
new text end

new text begin (c) For consideration by the Legislative Commission on Pensions and Retirement
during the legislative session next following an occupational title change involving a state
employee in covered correctional service, the commissioner of employee relations shall
submit the applicable draft proposed legislation reflecting the occupational title change
covered by this section.
new text end

Sec. 10.

Minnesota Statutes 2004, section 352.91, is amended by adding a subdivision
to read:


new text begin Subd. 3i. new text end

new text begin Lateral transfers to new correctional facilities. new text end

new text begin If a new correctional
facility is established, a state employee rendering covered correctional service immediately
before the transfer remains eligible for coverage by the correctional state employees
retirement plan for future state employment at the new facility if the person is employed in
the same occupational title at the new facility. The eligibility for future coverage continues
until the July 1 next following the effective date of the establishment of the new facility.
new text end

Sec. 11.

Minnesota Statutes 2004, section 352.91, is amended by adding a subdivision
to read:


new text begin Subd. 4b. new text end

new text begin Department of Corrections; procedure for coverage change
considerations.
new text end

new text begin (a) The commissioner of corrections shall appoint a standing review
committee to review and determine positions that should be included in legislative
requests for correctional employees retirement plan coverage under subdivision 4a.
new text end

new text begin (b) Periodically, the Department of Corrections will convene meetings of the
review committee. The review committee must review all requests and the supporting
documentation for coverage by the correctional employees retirement plan and must
determine which classes or positions meet the statutory requirements for coverage. The
review committee also must determine if incumbents of and recent retirees from classes or
positions determined for inclusion in correctional employees retirement plan coverage
have prior Department of Corrections employment which also qualified as correctional
service and which should be transferred from the general state employees retirement plan
to the plan and the initial date for each potential service credit transfer.
new text end

new text begin (c) The department must provide a notice of each determination and of the
employee's right to appeal from the review committee to each employee who requested
inclusion. Appeals must be filed with the agency human resource manager within 30 days
of the date of the notice of determination.
new text end

new text begin (d) The commissioner of corrections shall appoint a standing appeals committee to
hear appeals of determinations for coverage. The appeal committee must include relevant
department employees and employee representatives. Appeal committee determinations
are final.
new text end

new text begin (e) All positions approved for inclusion must be forwarded to the commissioner
of corrections for the preparation of legislation to implement the coverage change and
submission. The commissioner will submit a written recommendation documenting
classes or positions that should or should not be covered by the correctional employees
retirement plan. Documentation of each request and the final determination must be
retained in the Department of Corrections' office of human resource management.
new text end

Sec. 12. new text beginCOVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN
PERSONS.
new text end

new text begin Subdivision 1. new text end

new text begin Election of prior state coverage. new text end

new text begin (a) An employee in the
occupational position of laundry coordinator or delivery van driver at the Minnesota
Correctional Facility-Faribault who has future retirement coverage transferred to the
correctional state employees retirement plan under section 5 is entitled to elect to obtain
prior service credit for eligible correctional state service performed after June 30, 1997,
and before July 1, 2006, with the Department of Corrections and an employee who had
future retirement coverage transferred to the correctional state employees retirement
plan under Laws 2004, chapter 267, article 1, section 1, is entitled to elect to obtain
prior service credit for eligible correctional state service performed at the Minnesota
Correctional Facility-Rush City before August 1, 2004. All prior service credit in either
instance must be purchased.
new text end

new text begin (b) Eligible correctional state service is either a prior period of continuous service
after June 30, 1997, at the Minnesota Correctional Facility-Faribault, or a prior period
of continuous service at the Minnesota Correctional Facility-Rush City before August 1,
2004, whichever applies, performed as an employee of the Department of Corrections that
would have been eligible for the correctional state employees retirement plan coverage
under section 1, if that prior service had been performed after August 1, 2004, or June 30,
2006, rather than before August 1, 2004, or July 1, 2006, whichever applies. Service is
continuous if there has been no period of discontinuation of eligible state service for a
period greater than 30 calendar days.
new text end

new text begin (c) The commissioner of corrections shall certify eligible correctional state service
to the commissioner of employee relations and to the executive director of the Minnesota
State Retirement System.
new text end

new text begin (d) A correctional employee covered under section 1 is entitled to purchase the past
service if the department certifies that the employee met the eligibility requirements for
coverage. The employee must make additional employee contributions. Payment for past
service must be completed by June 30, 2007.
new text end

new text begin Subd. 2. new text end

new text begin Payment for prior service. new text end

new text begin (a) An employee electing to obtain prior
service credit under subdivision 1 must pay an additional employee contribution for
that prior service. The additional member contribution is the contribution differential
percentage applied to the actual salary paid to the employee during the period of the
prior eligible correctional state service, plus interest at the rate of 8.5 percent per annum,
compounded annually. The contribution differential percentage is the difference between
5.69 percent of salary and the applicable employee contribution rate of the general state
employees retirement plan during the period of the prior eligible correctional state service.
new text end

new text begin (b) The additional member contribution may be paid only in a lump sum. Payment
must accompany the election to obtain prior service credit. No election or payment may
be made by the person or accepted by the executive director of the Minnesota State
Retirement System after June 30, 2007.
new text end

new text begin Subd. 3. new text end

new text begin Transfer of assets. new text end

new text begin (a) Assets must be transferred from the general state
employees retirement plan to the correctional state employees retirement plan in an
amount equal to the present value of benefits earned under the general state employees
retirement plan for each employee transferring to the correctional state employees
retirement plan under this section, as determined by the actuary retained under Minnesota
Statutes, section 356.214, in accordance with Minnesota Statutes, section 356.215,
multiplied by the accrued liability funding ratio of active members as derived from the
most recent actuarial valuation prepared by the actuary retained under Minnesota Statutes,
section 356.214. The transfer of assets must be made within 30 days after the employee
elects to transfer the coverage to the correctional state employees retirement plan.
new text end

new text begin (b) The Department of Corrections shall pay the cost of the actuarial work performed
by the actuary retained under Minnesota Statutes, section 356.214, under paragraph (a)
upon receipt of a billing from the executive director of the Public Employees Retirement
Association.
new text end

new text begin Subd. 4. new text end

new text begin Effect of the asset transfer. new text end

new text begin Upon the transfer of assets in subdivision
3, service credit in the general state employees retirement plan of the Minnesota State
Retirement System is forfeited and may not be reinstated. The service credit and
transferred assets must be credited to the correctional state employees retirement plan.
new text end

Sec. 13. new text beginSERVICE CREDIT TRANSFER TO CORRECTIONAL PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin If the review of the corrections program director
position of the eligible individual under Minnesota Statutes 2005 Supplement, section
352.91, subdivision 4a, results in the inclusion of the corrections program director position
in the correctional state employees retirement plan of the Minnesota State Retirement
System by legislative enactment during the 2006 or 2007 legislative sessions, an eligible
individual specified in subdivision 2 is authorized to have service credit in the Minnesota
State Retirement System general state employees retirement plan for employment as
a corrections program director from June 17, 1995, to June 5, 2001, transferred from
the Minnesota State Retirement System general state employees retirement plan to the
Minnesota State Retirement System correctional state employees retirement plan, if all
conditions required by this section are met.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin An eligible individual is an individual who:
new text end

new text begin (1) was born on November 14, 1956;
new text end

new text begin (2) is currently employed as a corrections lieutenant;
new text end

new text begin (3) was covered by the Minnesota State Retirement System correctional state
employees retirement plan for service provided from November 1, 1980, to June 16, 1995;
new text end

new text begin (4) was covered by the Minnesota State Retirement System general state employees
retirement plan for employment as a corrections program director from June 17, 1995, to
June 5, 2001; and
new text end

new text begin (5) is covered by the Minnesota State Retirement System correctional state
employees retirement plan for employment as a corrections lieutenant beginning June
6, 2001.
new text end

new text begin Subd. 3. new text end

new text begin Employee equivalent contribution. new text end

new text begin To receive the transfer of service
credit specified in subdivision 1, the individual must pay to the executive director of the
Minnesota State Retirement System the difference between the employee contribution rate
for the general state employees retirement plan and the employee contribution rate for
the correctional state employees retirement plan in effect during the period eligible for
transfer applied to the eligible individual's salary at the time each additional contribution
would have been deducted from pay if coverage had been provided by the correctional
state employees retirement plan. These amounts shall be paid in a lump sum by September
1, 2005, or prior to termination of service, whichever is earlier, plus 8.5 percent annual
compound interest from the applicable payroll deduction date until paid.
new text end

new text begin Subd. 4. new text end

new text begin Employer equivalent. new text end

new text begin The eligible individual shall also pay to the
executive director of the Minnesota State Retirement System the difference between
the employer contribution rate for the general state employees retirement plan and the
employer contribution rate for the correctional state employees retirement plan in effect
during the period eligible for transfer applied to the eligible individual's salary at the
time each additional contribution would have been deducted from pay if coverage had
been provided by the correctional state employees retirement plan. These amounts shall
be paid in a lump sum at the same time as the amount under subdivision 3, with interest
as specified in that subdivision.
new text end

new text begin Subd. 5. new text end

new text begin Transfer of assets. new text end

new text begin If payments under subdivisions 3 and 4 are made,
assets must be transferred from the general state employees retirement plan fund to the
correctional state employees retirement plan fund in an amount equal to the present value
of benefits earned by the eligible individual under the general state employees retirement
plan, as determined by the actuary retained under section 356.214 in accordance with
Minnesota Statutes, section 356.215. The transfer of assets must be made within 45 days
after the receipt of payments under subdivisions 3 and 4.
new text end

new text begin Subd. 6. new text end

new text begin Effect of the asset transfer. new text end

new text begin Upon transfer of assets in subdivision 5,
service credit in the general state employees retirement plan of the Minnesota State
Retirement System is forfeited and may not be reinstated. The service credit and
transferred assets must be credited to the correctional state employees retirement plan.
new text end

new text begin Subd. 7. new text end

new text begin Payment of actuarial calculation costs. new text end

new text begin The expense for the calculations
by the actuary under subdivision 5 must be paid by the Department of Corrections.
new text end

Sec. 14. new text beginEFFECTIVE DATE.
new text end

new text begin (a) Sections 1 to 8 and 12, are effective the first day of the first payroll period next
following the date of enactment.
new text end

new text begin (b) Sections 9, 10, and 11 are effective the day following final enactment.
new text end

new text begin (c) Section 13 is effective July 1, 2006, applies retroactively to permit a transfer
by an eligible individual of service credit before January 1, 2008, even if the eligible
individual has terminated active state employment before July 1, 2007, and, if the eligible
individual is in receipt of a retirement annuity from the correctional state employees
retirement plan of the Minnesota State Retirement System on or before July 1, 2007,
allows the eligible individual to have the retirement annuity recalculated on the basis
of any transferred service credit.
new text end

new text begin (d) The addition of the reference to "correctional industry" in section 3 is a
clarification of the existing provision and is not intended to be the basis for the addition of
any employment position to plan coverage beyond the employment positions included
on January 15, 2006, unless there is a change in the duties of an employment position
connected with correctional industries that increases the regularly occurring direct inmate
contact of the position to in excess of 75 percent and the inclusion of the position as
"correctional industry personnel" is approved by the commissioner of employee relations.
new text end

ARTICLE 3

RETIREMENT PLAN ADMINISTRATIVE PROVISIONS

Section 1.

Minnesota Statutes 2004, section 136F.45, subdivision 1a, is amended to
read:


Subd. 1a.

Subsequent vendor contracts.

(a) The board may limit the number
of vendors under subdivision 1.

(b) In addition to any other tax-sheltered annuity program investment options, the
board may offer as an investment option the Minnesota supplemental investment fund
administered by the State Board of Investment under section 11A.17.

(c) deleted text beginFor the tax-sheltered annuity program vendor contracts executed after July 1,
2000,
deleted text end The board shall actively solicit participation of and shall include as vendors lower
expense and "no-load" mutual funds or equivalent investment products as those terms are
defined by the federal Securities and Exchange Commission. deleted text beginTo the extent possible, in
addition to a range of insurance annuity contract providers and other mutual fund provider
arrangements, the board must assure that no less than five insurance annuity providers
and no less than one nor more than three lower expense and "no-load" mutual funds or
equivalent investment products will be made available for direct-access by employee
participants.
deleted text end To the extent that offering a lower expense "no-load" product increases the
total necessary and reasonable expenses of the program and if the board is unable to
negotiate a rebate of fees from the mutual fund or equivalent investment product providers,
the board may charge the participants utilizing the lower expense "no-load" mutual fund
products a fee to cover those expenses. The participant fee may not exceed one percent
of the participant's annual contributions or $20 per participant per year, whichever is
greater. Any excess fee revenue generated under this subdivision must be reimbursed to
participant accounts in the manner provided in subdivision 3a.

Sec. 2.

Minnesota Statutes 2004, section 352.113, subdivision 7a, is amended to read:


Subd. 7a.

Temporary reemployment benefit reduction waiver.

new text begin(a) new text endA reduction in
benefits under subdivision 7, or a termination of benefits due to the disabled employee
resuming a gainful occupation from which earnings are equal to or more than the
employee's salary at the date of disability or the salary currently paid for similar positions
does not apply until six months after the individual returns to a gainful occupation.

new text begin (b) No deductions for the retirement fund may be taken from the salary of a disabled
person who is attempting to return to work under this provision unless the member waives
further disability benefits.
new text end

new text begin (c) A member may return to employment and continue disability benefit payments
under this subdivision only once while receiving disability benefits from a retirement plan
administered by the Minnesota State Retirement System.
new text end

Sec. 3.

Minnesota Statutes 2004, section 352.116, subdivision 3a, is amended to read:


Subd. 3a.

Bounce-back annuity.

(a) If a retired employee or disabilitant selects
a joint and survivor annuity option under subdivision 3new text begin after June 30, 1989new text end, the retired
employee or disabilitant must receive a normal single-life annuity if the designated
optional annuity beneficiary dies before the retired employee or disabilitant. Under this
option, no reduction may be made in the annuity to provide for restoration of the normal
single-life annuity in the event of the death of the designated optional annuity beneficiary.

(b) deleted text beginA retired employee or disabilitant who selected an optional joint and survivor
annuity before July 1, 1989, but did not choose an option that provides that the normal
single-life annuity is payable to the retired employee or the disabilitant if the designated
optional annuity beneficiary dies first, is eligible for restoration of the normal single-life
annuity if the designated optional annuity beneficiary dies first, without further actuarial
reduction of the person's annuity. A retired employee or disabilitant who selected an
optional joint and survivor annuity, but whose designated optional annuity beneficiary died
before July 1, 1989, shall receive a normal single-life annuity after that date, but shall not
receive retroactive payments for periods before that date
deleted text endnew text begin The annuity adjustment specified
in paragraph (a) also applies to joint and survivor annuity options under subdivision
3 elected before July 1, 1989. The annuity adjustment under this paragraph occurs on
July 1, 1989, or on the first day of the first month following the death of the designated
optional annuity beneficiary, whichever is later. This paragraph may not be interpreted as
authorizing retroactive payments
new text end.

deleted text begin (c) A retired employee or disabilitant who took a further actuarial reduction to elect
an optional joint and survivor annuity that provides that the normal annuity is payable
to the retired employee or disabilitant if the designated optional beneficiary died before
July 1, 1989, shall have the annuity increased as of July 1, 1989, to the amount the person
would have received if, at the time of retirement or disability, the person had selected only
optional survivor coverage that would not have provided for restoration of the normal
annuity upon the death of the designated optional annuity beneficiary. Any annuity or
benefit increase under this paragraph is effective only for payments made after June 30,
1989, and is not retroactive for payments made before July 1, 1989.
deleted text end

Sec. 4.

Minnesota Statutes 2004, section 352.116, subdivision 3b, is amended to read:


Subd. 3b.

Bounce-back annuity.

(a) The board of directors must provide a joint
and survivor annuity option to members of the correctional employees and State Patrol
retirement funds. Under this option, new text beginif new text enda former member or disabilitant new text beginselects a joint
and survivor annuity option after June 30, 1989, the former member or disabilitant
new text endmust
receive a normal single life annuity if the designated optional annuity beneficiary dies
before the former member or disabilitant. Under this option, no reduction may be made
in the person's annuity to provide for restoration of the normal single life annuity in the
event of the death of the designated optional annuity beneficiary.

(b) deleted text beginA former member or disabilitant of the correctional or State Patrol fund who
selected an optional joint and survivor annuity before July 1, 1989, but did not choose an
option that provides that the normal single life annuity is payable to the former member
or the disabilitant if the designated optional annuity beneficiary dies first, is eligible for
restoration of the normal single life annuity if the designated optional annuity beneficiary
dies first, without further actuarial reduction of the person's annuity. A former member
or disabilitant who selected an optional joint and survivor annuity, but whose designated
optional annuity beneficiary died before July 1, 1989, shall receive a normal single life
annuity after that date, but shall not receive retroactive payments for periods before that
date
deleted text endnew text begin The annuity adjustment specified in paragraph (a) also applies to joint and survivor
annuity options elected before July 1, 1989. The annuity adjustment under this paragraph
occurs on July 1, 1989, or on the first day of the first month following the death of the
designated optional annuity beneficiary, whichever is later. This paragraph may not be
interpreted as authorizing retroactive payments
new text end.

deleted text begin (c) A former member or disabilitant who took a further actuarial reduction to elect
an optional joint and survivor annuity that provides that the normal annuity is payable to
the former member or disabilitant if the designated optional beneficiary died before July
1, 1989, shall have their annuity increased as of July 1, 1989, to the amount the person
would have received if, at the time of retirement or disability, the person had selected only
optional survivor coverage that would not have provided for restoration of the normal
annuity upon the death of the designated optional annuity beneficiary. Any annuity or
benefit increase under this paragraph is effective only for payments made after June 30,
1989, and is not retroactive for payments made before July 1, 1989.
deleted text end

Sec. 5.

Minnesota Statutes 2004, section 353.01, subdivision 2a, is amended to read:


Subd. 2a.

Included employees.

(a) Public employees whose salary from one
governmental subdivision exceeds $425 in any month shall participate as members of the
association. If the salary is less than $425 in a subsequent month, the employee retains
membership eligibility. Eligible public employees shall participate as members of the
association with retirement coverage by the public employees retirement plan or the public
employees police and fire retirement plan under this chapter, or the local government
correctional employees retirement plan under chapter 353E, whichever applies, as a
condition of their employment on the first day of employment unless they:

(1) are specifically excluded under subdivision 2b;

(2) do not exercise their option to elect retirement coverage in the association as
provided in subdivision 2d, paragraph (a); or

(3) are employees of the governmental subdivisions listed in subdivision 2d,
paragraph (b), where the governmental subdivision has not elected to participate as a
governmental subdivision covered by the association.

(b) A public employee who was a member of the association on June 30, 2002,
based on employment that qualified for membership coverage by the public employees
retirement plan or the public employees police and fire plan under this chapter, or the local
government correctional employees retirement plan under chapter 353E as of June 30,
2002, retains that membership until the employee terminates public employment under
subdivision 11a or terminates membership under subdivision 11b.

new text begin (c) Public employees under paragraph (a) include physicians under section 353D.01,
subdivision 2, who do not elect public employees defined contribution plan coverage
under section 353D.02, subdivision 2.
new text end

Sec. 6.

Minnesota Statutes 2005 Supplement, section 353.01, subdivision 2d, is
amended to read:


Subd. 2d.

Optional membership.

(a) Membership in the association is optional
by action of the individual employee for the following public employees who meet the
conditions set forth in subdivision 2a:

(1) members of the coordinated plan who are also employees of labor organizations
as defined in section 353.017, subdivision 1, for their employment by the labor
organization onlynew text begin,new text end if they elect to have membership under section 353.017, subdivision 2;

(2) persons who are elected or persons who are appointed to elected positions other
than local governing body elected positions who elect to participate by filing a written
election for membership;

(3) members of the association who are appointed by the governor to be a state
department head and who elect not to be covered by the general state employees retirement
plan of the Minnesota State Retirement System under section 352.021;

(4) city managers as defined in section 353.028, subdivision 1, who do not elect to be
excluded from membership in the association under section 353.028, subdivision 2; and

(5) employees of the Port Authority of the city of St. Paul deleted text beginwho were at least age
45
deleted text end on January 1, 2003, new text beginwho were at least age 45 on that date, new text endand who deleted text beginelectdeleted text endnew text begin electednew text end to
participate by filing a written election for membership.

(b) Membership in the association is optional by action of the governmental
subdivision for the employees of the following governmental subdivisions under the
conditions specified:

(1) the Minnesota Association of Townships if the board of deleted text beginthedeleted text endnew text begin thatnew text end association, at its
option, certifies to the executive director that its employeesnew text begin who meet the conditions set
forth in subdivision 2a
new text end are to be included for purposes of retirement coverage, in which
case the status of the association as a participating employer is permanent;

(2) a county historical society if the county in which the historical society is located,
at its option, certifies to the executive director that the employees of the historical society
new text begin who meet the conditions set forth in subdivision 2a new text endare to be new text beginconsidered new text endcounty employees
for purposes of retirement coverage under this chapter. The status as a county employee
must be accorded to all similarly situated county historical society employees and, once
established, must continue as long as a person is an employee of the county historical
society; and

(3) Hennepin Healthcare System, Inc., a public corporation, with respect to
employees other than paramedics, emergency medical technicians, and protection officers,
if the corporate board establishes alternative retirement plans for certain classes of
employees of the corporation and certifies new text beginto the association new text endthe new text beginapplicable new text endemployees to
be excluded from future retirement coverage.

(c) For employees who are covered by paragraph (a), clause (1), (2), or (3), or
covered by paragraph (b), clause (1) or (2), if the necessary membership election is
not made, the employee is excluded from retirement coverage under this chapter. For
employees who are covered by paragraph (a), clause (4), if the necessary election is not
made, the employee must become a member and have retirement coverage under this
chapter. For employees specified in paragraph (b), clause (3), membership continues until
the exclusion option is exercised for the designated class of employee. The option to
become a member, once exercised under this subdivision, may not be withdrawn untilnew text begin thenew text end
termination of public service as defined under subdivision 11a.

Sec. 7.

Minnesota Statutes 2004, section 353.01, subdivision 11a, is amended to read:


Subd. 11a.

Termination of public service.

(a) "Termination of public service"
occurs new text begin(1) new text endwhen a member resigns or is dismissed from public service by the employing
governmental subdivision deleted text beginor when a position ends and the member who held the position
is not considered by the governmental subdivision to be on a temporary layoff,
deleted text end and
the employee does not, within 30 days of the date the employment relationship ended,
return to an employment position in the same governmental subdivisionnew text begin; or (2) when
the employer-employee relationship is severed due to the expiration of a layoff under
subdivision 12 or 12c
new text end.

(b) The termination of public service must be recorded in the association records
upon receipt of an appropriate notice from the governmental subdivision.

Sec. 8.

Minnesota Statutes 2004, section 353.01, subdivision 11b, is amended to read:


Subd. 11b.

Termination of membership.

(a) "Termination of membership" means
the conclusion of membership in the association new text beginfor a person who has not terminated
public service under subdivision 11a
new text endand occurs:

(1) deleted text beginupon termination of public service under subdivision 11a;
deleted text end

deleted text begin (2) when a member does not return to work within 30 days of the expiration of
an authorized temporary layoff under subdivision 12 or an authorized leave of absence
under subdivision 31 as evidenced by the appropriate record filed by the governmental
subdivision; or
deleted text end

deleted text begin (3)deleted text end when a person files a written election new text beginwith the association new text endto discontinue
employee deductions under section 353.27, subdivision 7, paragraph (a), clause (1)new text begin;
new text end

new text begin (2) when a city manager files a written election with the association to discontinue
employee deductions under section 353.028, subdivision 2; or
new text end

new text begin (3) when a member transfers to a temporary position and becomes excluded from
membership under subdivision 2b, clause (4)
new text end.

(b) The termination of membership new text beginunder clause (3) new text endmust be reported to the
association by the governmental subdivision.

deleted text begin (c) If the employee subsequently returns to a position in the same governmental
subdivision, the employee shall not again be required to earn a salary in excess of $425 per
month to qualify for membership, unless the employee has taken a refund of accumulated
employee deduction plus interest under section deleted text begin353.34, subdivision 1deleted text end.
deleted text end

Sec. 9.

Minnesota Statutes 2004, section 353.01, subdivision 12, is amended to read:


Subd. 12.

Authorized temporary new text beginor seasonal new text endlayoff.

"Authorized temporary
new text begin or seasonal new text endlayoff," including seasonal leave of absence, means a suspension of public
service new text beginfor a limited period during a year that is new text endauthorized by the employing governmental
subdivision for a deleted text beginperiod not exceeding three months in any calendar year, as evidenced by
appropriate record of the employer and promptly transmitted to the association
deleted text endnew text begin member
who is expected at the start of the period to return to the same position at the end of
the layoff period and for whom there has been no termination of public service under
subdivision 11a
new text end.

Sec. 10.

Minnesota Statutes 2004, section 353.01, is amended by adding a subdivision
to read:


new text begin Subd. 12c. new text end

new text begin Indefinite layoff. new text end

new text begin "Indefinite layoff" occurs when a member is placed on
a layoff that is not a temporary or seasonal layoff under subdivision 12, for which no date
has been specified by the employing governmental subdivision for the employee's return
to work, and there has been no termination of public service under subdivision 11a.
new text end

Sec. 11.

Minnesota Statutes 2004, section 353.01, subdivision 16, is amended to read:


Subd. 16.

Allowable service; limits and computation.

(a) "Allowable service"
means:

(1) service during years of actual membership in the course of which employee
contributions were made, periods covered by payments in lieu of salary deductions under
section 353.35;

(2) service in years during which the public employee was not a member but for
which the member later elected, while a member, to obtain credit by making payments to
the fund as permitted by any law then in effect;

(3) a period of authorized leave of absence with pay from which deductions for
employee contributions are made, deposited, and credited to the fund;

(4) a period of authorized personal, parental, or medical leave of absence without
pay, including a leave of absence covered under the federal Family Medical Leave Act,
that does not exceed one year, and during or for which a member obtained service credit
for each month in the leave period by payments to the fund made in place of salary
deductions. The payments must be made in an amount or amounts based on the member's
average salary on which deductions were paid for the last six months of public service, or
for that portion of the last six months while the member was in public service, to apply to
the period in either case that immediately precedes the commencement of the leave of
absence. If the employee elects to pay the employee contributions for the period of any
authorized personal, parental, or medical leave of absence without pay, or for any portion
of the leave, the employee shall also, as a condition to the exercise of the election, pay
to the fund an amount equivalent to the required employer and the additional employer
contributions, if any, for the employee. The payment must be made within one year from
the expiration of the leave of absence or within 20 days after termination of public service
under subdivision 11a, whichever is earlier. The employer, by appropriate action of its
governing body which is made a part of its official records and which is adopted before the
date of the first payment of the employee contribution, may certify to the association in
writing its commitment to pay the employer and additional employer contributions from
the proceeds of a tax levy made under section 353.28. Payments under this paragraph must
include interest at an annual rate of 8.5 percent compounded annually from the date of
the termination of the leave of absence to the date payment is made. An employee deleted text beginshalldeleted text endnew text begin
must
new text end return to public service and render a minimum of three months of allowable service
in order to be eligible to pay employee and employer contributions for a subsequent
authorized leave of absence without pay. Upon payment, the employee must be granted
allowable service credit for the purchased period;

(5) a periodic, repetitive leave that is offered to all employees of a governmental
subdivision. The leave program may not exceed 208 hours per annual normal work
cycle as certified to the association by the employer. A participating member obtains
service credit by making employee contributions in an amount or amounts based on the
member's average salary that would have been paid if the leave had not been taken. The
employer shall pay the employer and additional employer contributions on behalf of the
participating member. The employee and the employer are responsible to pay interest on
their respective shares at the rate of 8.5 percent a year, compounded annually, from the end
of the normal cycle until full payment is made. An employer shall also make the employer
and additional employer contributions, plus 8.5 percent interest, compounded annually, on
behalf of an employee who makes employee contributions but terminates public service.
The employee contributions must be made within one year after the end of the annual
normal working cycle or within 20 days after termination of public service, whichever
is sooner. The deleted text beginassociationdeleted text endnew text begin executive directornew text end shall prescribe the manner and forms to be
used by a governmental subdivision in administering a periodic, repetitive leave. Upon
payment, the member must be granted allowable service credit for the purchased period;

(6) an authorized temporary new text beginor seasonal new text endlayoff under subdivision 12, limited to three
months allowable service per authorized temporary new text beginor seasonal new text endlayoff in one calendar year.
An employee who has received the maximum service credit allowed for an authorized
temporary new text beginor seasonal new text endlayoff must return to public service and must obtain a minimum of
three months of allowable service subsequent to the layoff in order to receive allowable
service for a subsequent authorized temporary new text beginor seasonal new text endlayoff; or

(7) a period during which a member is absent from employment by a governmental
subdivision by reason of service in the uniformed services, as defined in United States
Code, title 38, section 4303(13), if the member returns to public service upon discharge
from service in the uniformed service within the time frames required under United
States Code, title 38, section 4312(e), provided that the member did not separate from
uniformed service with a dishonorable or bad conduct discharge or under other than
honorable conditions. The service is credited if the member pays into the fund equivalent
employee contributions based upon the contribution rate or rates in effect at the time
that the uniformed service was performed multiplied by the full and fractional years
being purchased and applied to the annual salary rate. The annual salary rate is the
average annual salary during the purchase period that the member would have received
if the member had continued to be employed in covered employment rather than to
provide uniformed service, or, if the determination of that rate is not reasonably certain,
the annual salary rate is the member's average salary rate during the 12-month period of
covered employment rendered immediately preceding the period of the uniformed service.
Payment of the member equivalent contributions must be made during a period deleted text beginwhichdeleted text endnew text begin thatnew text end
begins with the date on which the individual returns to public employment and that is three
times the length of the military leave period, or within five years of the date of discharge
from the military service, whichever is less. If the determined payment period is less than
one year, the contributions required under this clause to receive service credit may be
made within one year of the discharge date. Payment may not be accepted following 20
days after termination of public service under subdivision 11a. If the member equivalent
contributions provided for in this clause are not paid in full, the member's allowable
service credit must be prorated by multiplying the full and fractional number of years of
uniformed service eligible for purchase by the ratio obtained by dividing the total member
contributions received by the total member contributions otherwise required under this
clause. The equivalent employer contribution, and, if applicable, the equivalent additional
employer contribution must be paid by the governmental subdivision employing the
member if the member makes the equivalent employee contributions. The employer
payments must be made from funds available to the employing unit, using the employer
and additional employer contribution rate or rates in effect at the time that the uniformed
service was performed, applied to the same annual salary rate or rates used to compute the
equivalent member contribution. The governmental subdivision involved may appropriate
money for those payments. The amount of service credit obtainable under this section may
not exceed five years unless a longer purchase period is required under United States Code,
title 38, section 4312. The employing unit shall pay interest on all equivalent member and
employer contribution amounts payable under this clause. Interest must be computed at
a rate of 8.5 percent compounded annually from the end of each fiscal year of the leave
or the break in service to the end of the month in which the payment is received. Upon
payment, the employee must be granted allowable service credit for the purchased period.

(b) For calculating benefits under sections 353.30, 353.31, 353.32, and 353.33 for
state officers and employees displaced by the Community Corrections Act, chapter 401,
and transferred into county service under section 401.04, "allowable service" means the
combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
section 352.01, subdivision 11.

(c) For a public employee who has prior service covered by a local police or
firefighters relief association that has consolidated with the Public Employees Retirement
Association or to which section 353.665 applies, and who has elected the type of benefit
coverage provided by the public employees police and fire fund either under section
353A.08 following the consolidation or under section 353.665, subdivision 4, "applicable
service" is a period of service credited by the local police or firefighters relief association
as of the effective date of the consolidation based on law and on bylaw provisions
governing the relief association on the date of the initiation of the consolidation procedure.

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

(e) MS 2002 (Expired)

Sec. 12.

Minnesota Statutes 2005 Supplement, section 353.028, subdivision 3, is
amended to read:


Subd. 3.

Deferred compensation; city contribution.

new text begin(a) new text endIf an election of exclusion
new text begin under subdivision 2 new text endis made, and if the city manager and the governing body of the city
additionally agree in writing that the additional compensation is to be deferred and is to
be contributed on behalf of the city manager to a deferred compensation program which
meets the requirements of section 457 of the Internal Revenue Code of 1986, as amended,
the governing body may compensate the city manager, in addition to the salary allowed
under any limitation imposed on salaries by law or charter, in an amount equal to the
employer contribution which would be required by section 353.27, subdivision 3, if the
city manager were a member of the general employees retirement plan.

new text begin (b) Alternatively, if an election of exclusion under subdivision 2 is made, the city
manager and the governing body of the city may agree in writing that the equivalent
employer contribution to the contribution under section 353.27, subdivision 3, be
contributed by the city to the defined contribution plan of the Public Employees
Retirement Association under chapter 353D.
new text end

Sec. 13.

Minnesota Statutes 2004, section 353.03, subdivision 1, is amended to read:


Subdivision 1.

Management; composition; election.

new text begin(a) new text endThe management of the
public employees retirement fund is vested in an 11-member board of trustees consisting
of ten members and the state auditordeleted text begin whodeleted text endnew text begin. The state auditornew text end may designate a deputy
auditor with expertise in pension matters as the auditor's representative on the board. The
governor shall appoint five trustees to four-year terms, one of whom shall be designated to
represent school boards, one to represent cities, one to represent counties, one who is a
retired annuitant, and one who is a public member knowledgeable in pension matters. The
membership of the association, including recipients of retirement annuities and disability
and survivor benefits, shall elect five trusteesnew text begin for terms of four yearsnew text end, one of whom must
be a member of the police and fire fund and one of whom must be a former member
who met the definition of public employee under section 353.01, subdivisions 2 and
2a
, for at least five years prior to terminating membership or a member who receives a
disability benefitdeleted text begin, for terms of four yearsdeleted text end. new text beginTerms expire on January 31 of the fourth year,
and positions are vacant until newly elected members are seated.
new text endExcept as provided in
this subdivision, trustees elected by the membership of the association must be public
employees and members of the association.

new text begin (b) new text endFor seven days beginning October 1 of each year preceding a year in which
an election is held, the association shall accept at its office filings in person or by mail
of candidates for the board of trustees. A candidate shall submit at the time of filing a
nominating petition signed by 25 or more members of the deleted text beginfunddeleted text endnew text begin associationnew text end. No name may
be withdrawn from nomination by the nominee after October 15. At the request of a
candidate for an elected position on the board of trustees, the board shall mail a statement
of up to 300 words prepared by the candidate to all persons eligible to vote in the election
of the candidate. The board may adopt policiesnew text begin, subject to review and approval by the
secretary of state under paragraph (e),
new text end to govern new text beginthe new text endform and length of these statements,
timing of mailings, and deadlines for submitting materials to be mailed. deleted text beginThese policies
must be approved by the secretary of state.
deleted text end The secretary of state shall resolve disputes
between the board and a candidate concerning application of these policies to a particular
statement.

new text begin (c) By January 10 of each year in which elections are to be held, the board shall
distribute by mail to the members ballots listing the candidates. No member may vote for
more than one candidate for each board position to be filled. A ballot indicating a vote for
more than one person for any position is void. No special marking may be used on the
ballot to indicate incumbents. Ballots mailed to the association must be postmarked no
later than January 31. The ballot envelopes must be so designated and the ballots must be
counted in a manner that ensures that each vote is secret.
new text end

new text begin (d) new text endA candidate whodeleted text begin:deleted text end

deleted text begin (1)deleted text end receives contributions or makes expenditures in excess of $100deleted text begin;deleted text endnew text begin,new text end or

deleted text begin (2)deleted text end has given implicit or explicit consent for any other person to receive contributions
or make expenditures in excess of $100 for the purpose of bringing about the candidate's
election, shall file a report with the campaign finance and public disclosure board
disclosing the source and amount of all contributions to the candidate's campaign. The
campaign finance and public disclosure board shall prescribe forms governing these
disclosures. Expenditures and contributions have the meaning defined in section 10A.01.
These terms do not include the mailing made by the association board on behalf of the
candidate. A candidate shall file a report within 30 days from the day that the results of
the election are announced. The Campaign Finance and Public Disclosure Board shall
maintain these reports and make them available for public inspection in the same manner
as the board maintains and makes available other reports filed with it. deleted text beginBy January 10
of each year in which elections are to be held the board shall distribute by mail to the
members ballots listing the candidates. No member may vote for more than one candidate
for each board position to be filled. A ballot indicating a vote for more than one person for
any position is void. No special marking may be used on the ballot to indicate incumbents.
The last day for mailing ballots to the fund is January 31. Terms expire on January 31 of
the fourth year, and positions are vacant until newly elected members are qualified. The
ballot envelopes must be so designed and the ballots counted in a manner that ensures
that each vote is secret.
deleted text end

new text begin (e) new text endThe secretary of state shall deleted text beginsupervisedeleted text endnew text begin review and approve the procedures defined
by the board of trustees for conducting
new text end the electionsnew text begin specified in this subdivision, including
board policies adopted under paragraph (b)
new text end.

new text begin (f) new text endThe board of trustees and the executive director shall undertake their activities
consistent with chapter 356A.

Sec. 14.

Minnesota Statutes 2004, section 353.03, subdivision 1a, is amended to read:


Subd. 1a.

Vacancy, how filled.

Any vacancy on the board caused by death,
resignation, or removal of any trustee, or occurring because an elected trustee ceases to be
a public employee and an active member of the association, must be filled by the board
for trustees elected by members, and by the governor for other trustees, for the unexpired
portion of the term in which the vacancy occurs.new text begin The board shall adopt policies and
procedures governing how the vacancy of an elected trustee is to be filled.
new text end

Sec. 15.

Minnesota Statutes 2004, section 353.03, is amended by adding a subdivision
to read:


new text begin Subd. 2b. new text end

new text begin Board legal authority. new text end

new text begin The board is authorized to take legal action
when necessary to effectively administer the various retirement plans administered by the
association, consistent with applicable articles of incorporation, bylaws, law, and rules, as
applicable, and including, but not limited to, the recapture of overpaid annuities, benefits,
or refunds, and the correction of omitted or deficient deductions.
new text end

Sec. 16.

Minnesota Statutes 2004, section 353.27, subdivision 7, is amended to read:


Subd. 7.

Adjustment for erroneous receipts or disbursements.

(a) Except
as provided in paragraph (b), erroneous employee deductions and erroneous employer
contributions and additional employer contributions for a person, who otherwise does not
qualify for membership under this chapter, are considered:

(1) valid if the initial erroneous deduction began before January 1, 1990. Upon
determination of the error by the association, the person may continue membership in the
association while employed in the same position for which erroneous deductions were
taken, or file a written election to terminate membership and apply for a refund new text beginupon
termination of public service
new text endor defer an annuity under section 353.34; or

(2) invalid, if the initial erroneous employee deduction began on or after January
1, 1990. Upon determination of the error, the association shall deleted text beginrequire the employer
to discontinue erroneous employee deductions and erroneous employer contributions
and additional employer contributions. Upon discontinuance, the association shall
deleted text end refund all erroneous employee deductions deleted text beginto the person, with interest, under section
353.34, subdivision 2,
deleted text end and all erroneous employer contributions deleted text beginand additional employer
contributions to the employer
deleted text endnew text begin as specified in paragraph (d)new text end. No person may claim a right
to continued or past membership in the association based on erroneous deductions which
began on or after January 1, 1990.

(b) Erroneous deductions taken from the salary of a person who did not qualify
for membership in the association by virtue of concurrent employment before July 1,
1978, which required contributions to another retirement fund or relief association
established for the benefit of officers and employees of a governmental subdivision, are
invalid. Upon discovery of the error, the association shall remove all new text begin invalid new text endservice andnew text begin,new text end
new text begin upon termination of public service, the association shall new text endrefund all erroneous employee
deductions to the person, with interest under section 353.34, subdivision 2, and all
erroneous employer contributions to the employer. This paragraph has both retroactive
and prospective application.

(c) Employer contributions and employee deductions taken in error from amounts
which are not salary under section 353.01, subdivision 10, are invalid upon discovery by
the association and deleted text beginmaydeleted text endnew text begin mustnew text end be refunded deleted text beginat any timedeleted text endnew text begin as specified in paragraph (d)new text end.

(d) new text beginUpon discovery of the receipt of erroneous deductions and contributions under
paragraph (a), clause (2), or paragraph (c), the association must require the employer to
discontinue the erroneous employee deductions and erroneous employer contributions.
Upon discontinuation, the association either must refund the invalid employee deductions
to the person without interest and the invalid employer contributions to the employer or
provide a credit against future contributions payable by the employer for the amount of all
erroneous deductions and contributions. If the employing unit receives a credit under this
paragraph, the employing unit is responsible for refunding to the applicable employee any
amount that had been erroneously deducted from the person's salary. In the event that
a retirement annuity or disability benefit has been computed using invalid service or
salary, the association must adjust the annuity or benefit and recover any overpayment
under subdivision 7b.
new text end

new text begin (e) new text endIn the eventnew text begin thatnew text end a salary warrant or check from which a deduction for the
retirement fund was taken has been canceled or the amount of the warrant or check
returned to the funds of the department making the payment, a refund of the sum
deducted, or deleted text beginadeleted text endnew text begin anynew text end portion of it that is required to adjust the deductions, must be made
to the department or institution.

new text begin (f) Any refund to a member under this subdivision that is reasonably determined
to cause the plan to fail to be a qualified plan under section 401(a) of the federal
Internal Revenue Code, as amended, may not be refunded and instead must be credited
against future contributions payable by the employer. The employer receiving the
credit is responsible for refunding to the applicable employee any amount that had been
erroneously deducted from the person's salary.
new text end

Sec. 17.

Minnesota Statutes 2004, section 353.27, subdivision 7a, is amended to read:


Subd. 7a.

Deductions or contributions transmitted by error.

(a) If employee
deductions and employer contributions were erroneously transmitted to the association,
but should have been transmitted to another Minnesota public pension plan, the deleted text beginassociationdeleted text endnew text begin
executive director
new text end shall transfer the erroneous employee deductions and employer
contributions to the appropriate retirement fund new text beginor individual account, as applicable,
new text end without interest. The time limitationsnew text begin specifiednew text end in subdivisions 7 and 12 do not apply.

(b) For purposes of this subdivision, a Minnesota public pension plan means a
plan specified in section 356.30, subdivision 3, or the deleted text beginplandeleted text endnew text begin plansnew text end governed by deleted text beginchapterdeleted text endnew text begin
chapters 353D and
new text end 354B.

new text begin (c) A potential transfer under paragraph (a) that is reasonably determined to cause
the plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue
Code, as amended, must not be made by the executive director of the association. Within
30 days after being notified by the Public Employees Retirement Association of an
unmade potential transfer under this paragraph, the employer of the affected person
must transmit an amount representing the applicable salary deductions and employer
contributions, without interest, to the retirement fund of the appropriate Minnesota public
pension plan, or to the applicable individual account if the proper coverage is by a defined
contribution plan. The association must provide the employing unit a credit for the amount
of the erroneous salary deductions and employer contributions against future contributions
from the employer. If the employing unit receives a credit under this paragraph, the
employing unit is responsible for refunding to the applicable employee any amount that
had been erroneously deducted from the person's salary.
new text end

Sec. 18.

Minnesota Statutes 2004, section 353.27, subdivision 7b, is amended to read:


Subd. 7b.

Overpayments to members.

In the event of an overpayment to a
member, new text beginretiree, beneficiary, or other person, new text endthe executive director shall recover the
overpayment by suspending or reducing the payment of a retirement annuity, refund,
disability benefit, survivor benefit, or optional annuitynew text begin payable to the applicable person
or the person's estate, whichever applies,
new text end under this chapter until all outstanding money
has been recovered.

Sec. 19.

Minnesota Statutes 2005 Supplement, section 353.28, subdivision 6, is
amended to read:


Subd. 6.

Collection of unpaid amounts.

(a) If a governmental subdivision which
receives the direct proceeds of property taxation fails to pay an amount due under chapter
353, 353A, 353B, 353C, or 353D, the executive director shall certify the amount to the
governmental subdivision for payment. If the governmental subdivision fails to remit the
sum so due in a timely fashion, the executive director shall certify the amount to the
applicable county auditor for collection. The county auditor shall collect the amount
out of the revenue of the governmental subdivision, or shall add the amount to the levy
of the governmental subdivision and make payment directly to the association. This
tax must be levied, collected, and apportioned in the manner that other taxes are levied,
collected, and apportioned.

(b) If a governmental subdivision which is not funded directly from the proceeds
of property taxation fails to pay an amount due under this chapter, the executive director
shall certify the amount to the governmental subdivision for payment. If the governmental
subdivision fails to pay the amount for a period of 60 days afternew text begin the date of thenew text end certification,
the executive director shall certify the amount to the commissioner of finance, who shall
deduct the amount from any subsequent state-aid payment or state appropriation amount
applicable to the governmental subdivisionnew text begin and make payment directly to the associationnew text end.

Sec. 20.

Minnesota Statutes 2004, section 353.29, subdivision 8, is amended to read:


Subd. 8.

Annuities; payment; evidence of receipt.

Payment of any annuity
or benefit for a given month deleted text beginshalldeleted text endnew text begin mustnew text end be mailed by the association to the annuitant,
recipient of a disability benefit, or survivor, new text beginor must be automatically deposited under
section 356.401, subdivision 2,
new text endduring the first week of that month. deleted text beginEvidence of receipt of
warrants issued by the association in payment of an annuity or benefit shall be submitted
by the payee thereof to the association periodically at times specified by the board of
trustees, together with a written declaration that the annuitant or recipient of a disability
benefit has or has not returned to public service; that the surviving dependent spouse has
or has not remarried; and shall be furnished on forms provided by the executive director
thereof, before the association shall pay to the disability recipient or survivor for the next
ensuing month, the benefit to which the person otherwise may be entitled. In lieu of the
evidence of receipt of warrants for recipients of an annuity or a benefit,
deleted text end The board may
contract for professional services to identify deceased annuitants and benefit recipients
through a review of nationally maintained death records.

Sec. 21.

Minnesota Statutes 2004, section 353.30, subdivision 3a, is amended to read:


Subd. 3a.

Bounce-back annuity.

(a) If a former member or disabilitant selects a
joint and survivor annuity option under subdivision 3new text begin after June 30, 1989new text end, the former
member or disabilitant must receive a normal single life annuity if the designated optional
annuity beneficiary dies before the former member or disabilitant. Under this option, no
reduction may be made in the person's annuity to provide for restoration of the normal
single life annuity in the event of the death of the designated optional annuity beneficiary.

(b) deleted text beginA former member or disabilitant who selected an optional joint and survivor
annuity before July 1, 1989, but did not choose an option that provides that the normal
single life annuity is payable to the former member or the disabilitant if the designated
optional annuity beneficiary dies first, is eligible for restoration of the normal single life
annuity if the designated optional annuity beneficiary dies first, without further actuarial
reduction of the person's annuity. A former member or disabilitant who selected an
optional joint and survivor annuity, but whose designated optional annuity beneficiary died
before July 1, 1989, shall receive a normal single life annuity after that date, but shall not
receive retroactive payments for periods before that date
deleted text endnew text begin The annuity adjustment specified
in paragraph (a) also applies to joint and survivor annuity options under subdivision
3 elected before July 1, 1989. The annuity adjustment under this paragraph occurs on
July 1, 1989, or on the first day of the first month following the death of the designated
optional annuity beneficiary, whichever is later. This paragraph may not be interpreted as
authorizing retroactive payments
new text end.

deleted text begin (c) A former member or disabilitant who took a further actuarial reduction to elect
an optional joint and survivor annuity that provides that the normal annuity is payable to
the former member or disabilitant if the designated optional beneficiary dies first but has
not died before July 1, 1989, shall have their annuity increased as of July 1, 1989, to the
amount the person would have received if, at the time of retirement or disability, the person
had selected only optional survivor coverage that would not have provided for restoration
of the normal annuity upon the death of the designated optional annuity beneficiary. Any
annuity or benefit increase under this paragraph is effective only for payments made after
June 30, 1989, and is not retroactive for payments made before July 1, 1989.
deleted text end

Sec. 22.

Minnesota Statutes 2004, section 353.30, subdivision 3b, is amended to read:


Subd. 3b.

Bounce-back annuity.

(a) The board of trustees must provide a joint
and survivor annuity option to members of the police and fire fund. deleted text beginUnder this option, adeleted text end
new text begin If a joint and survivor annuity is elected on or after July 1, 1989, thenew text end former member or
disabilitant must receive a normal single life annuity if the designated optional annuity
beneficiary dies before the former member or disabilitant. Under this option, no reduction
may be made in the person's annuity to provide for restoration of the normal single life
annuity in the event of the death of the designated optional annuity beneficiary.

(b) deleted text beginA former member or disabilitant of the police and fire fund who selected an
optional joint and survivor annuity before July 1, 1989, but did not choose an option
that provides that the normal single life annuity is payable to the former member or
the disabilitant if the designated optional annuity beneficiary dies first, is eligible for
restoration of the normal single life annuity if the designated optional annuity beneficiary
dies first, without further actuarial reduction of the person's annuity. A former member
or disabilitant who selected an optional joint and survivor annuity, but whose designated
optional annuity beneficiary died before July 1, 1989, shall receive a normal single life
annuity after that date, but shall not receive retroactive payments for periods before that
date
deleted text endnew text begin The annuity adjustment specified in paragraph (a) also applies to joint and survivor
annuity options under subdivision 3 elected before July 1, 1989. The annuity adjustment
under this paragraph occurs on July 1, 1989, or on the first day of the first month following
the death of the designated optional annuity beneficiary, whichever is later. This paragraph
may not be interpreted as authorizing retroactive payments
new text end.

deleted text begin (c) A former member or disabilitant who took a further actuarial reduction to elect
an optional joint and survivor annuity that provides that the normal annuity is payable to
the former member or disabilitant if the designated optional beneficiary dies first but has
not died before July 1, 1989, shall have their annuity increased as of July 1, 1989, to the
amount the person would have received if, at the time of retirement or disability, the person
had selected only optional survivor coverage that would not have provided for restoration
of the normal annuity upon the death of the designated optional annuity beneficiary. Any
annuity or benefit increase under this paragraph is effective only for payments made after
June 30, 1989, and is not retroactive for payments made before July 1, 1989.
deleted text end

Sec. 23.

Minnesota Statutes 2004, section 353.32, subdivision 1a, is amended to read:


Subd. 1a.

Surviving spouse optional annuity.

(a) If a member or former member
who has credit for not less than three years of allowable service and dies before the
annuity or disability benefit begins to accrue under section 353.29, subdivision 7, or
353.33, subdivision 2, notwithstanding any designation of beneficiary to the contrary, the
surviving spouse may elect to receive, instead of a refund with interest under subdivision
1, or surviving spouse benefits otherwise payable under section 353.31, an annuity equal
to the 100 percent joint and survivor annuity that the member could have qualified for
had the member terminated service on the date of death.

(b) If the member was under age 55 and has credit for at least 30 years of allowable
service on the date of death, the surviving spouse may elect to receive a 100 percent joint
and survivor annuity based on the age of the member and surviving spouse on the date
of death. The annuity is payable using the full early retirement reduction under section
353.30, subdivisions 1b and 1c, to age 55 and one-half of the early retirement reduction
from age 55 to the age payment begins.

(c) If the member was under age 55 and has credit for at least three years of
allowable service on the date of death but did not qualify for retirement, the surviving
spouse may elect to receive the 100 percent joint and survivor annuity based on the age of
the member and surviving spouse at the time of death. The annuity is payable using the
full early retirement reduction under section 353.30, subdivision 1, 1b, 1c, or 5, to age 55
and one-half of the early retirement reduction from age 55 to the age payment begins.

new text begin (d) new text endNotwithstanding the definition of surviving spouse in section 353.01, subdivision
20
, a former spouse of the member, if any, is entitled to a portion of the monthly surviving
spouse optional annuity if stipulated under the terms of a marriage dissolution decree filed
with the association. If there is no surviving spouse or child or children, a former spouse
may be entitled to a lump-sum refund payment under subdivision 1, if provided for in a
marriage dissolution decreenew text begin,new text end but not a monthly surviving spouse optional annuitynew text begin,new text end despite
the terms of a marriage dissolution decree filed with the association.

new text begin (e) new text endThe surviving spouse eligible for surviving spouse benefits under paragraph (a)
may apply for the annuity at any time after the date on which the deceased employee
would have attained the required age for retirement based on the employee's allowable
service. The surviving spouse eligible for surviving spouse benefits under paragraph (b)
or (c) may apply for an annuity any time after the member's death. The annuity must be
computed under sections 353.29, subdivisions 2 and 3; new text beginand new text end353.30, subdivisions 1, 1a,
1b, 1c, and 5
deleted text begin; and 353.31, subdivision 3deleted text end.

new text begin (f) new text endSections 353.34, subdivision 3, and 353.71, subdivision 2, apply to a deferred
annuity or surviving spouse benefit payable under this subdivision. No payment may
accrue beyond the end of the month in which entitlement to the annuity has terminated
or upon expiration of the term certain benefit payment under subdivision 1b. An amount
equal to any excess of the accumulated contributions that were credited to the account of
the deceased employee over and above the total of the annuities paid and payable to the
surviving spouse must be paid to the deleted text begindeceased member's last designated beneficiary or, if
none, as specified under subdivision 1
deleted text endnew text begin surviving spouse's estatenew text end.

new text begin (g) new text endA member may specify in writing that this subdivision does not apply and that
payment may be made only to the designated beneficiary as otherwise provided by this
chapter.new text begin The waiver of a surviving spouse annuity under this section does not make a
dependent child eligible for benefits under subdivision 1c.
new text end

Sec. 24.

Minnesota Statutes 2004, section 353.32, subdivision 1b, is amended to read:


Subd. 1b.

Survivor coverage term certain.

new text begin(a) new text endIn lieu of the 100 percent optional
annuity under subdivision 1a, or a refund under subdivision 1, the surviving spouse of
a deceased member may elect to receive survivor coverage for a term certainnew text begin periodnew text end of
deleted text begin five, deleted text endten, 15, or 20 years, but monthly payments must not exceed 75 percent of the average
high-five monthly salary of the deceased member. The monthly term certain annuity must
be actuarially equivalent to the 100 percent optional annuity under subdivision 1a.

new text begin (b) new text endIf a surviving spouse elects a term certain annuity and dies before the expiration
of the specified term certain period, the commuted value of the remaining annuity
payments must be paid in a lump sum to the survivor's estate.

Sec. 25.

Minnesota Statutes 2004, section 353.33, subdivision 1, is amended to read:


Subdivision 1.

Age, service, and salary requirements.

A coordinated member
who has at least three years of allowable service and becomes totally and permanently
disabled before normal retirement age, and a basic member who has at least three years
of allowable service and who becomes totally and permanently disabled is entitled to a
disability benefit in an amount new text begindetermined new text endunder subdivision 3. If the disabled person's
public service has terminated at any time, at least two of the required three years of
allowable service must have been rendered after last becoming deleted text beginadeleted text end new text beginan active new text endmember. A
repayment of a refund must be made within six months after the effective date of disability
benefits under subdivision 2 or within six months after the date of the filing of the
disability application, whichever is later. No purchase of prior service deleted text beginordeleted text endnew text begin and nonew text end payment
made in lieu of salary deductions otherwise authorized under section 353.01, subdivision
16
, deleted text begin353.017, subdivision 4, or 353.36, subdivision 2,deleted text end may be made after the occurrence of
the disability for which an application under this section is filed.

Sec. 26.

Minnesota Statutes 2004, section 353.33, subdivision 9, is amended to read:


Subd. 9.

Return to deleted text beginpublic servicedeleted text endnew text begin employmentnew text end.

new text begin(a) new text endAny person receiving a
disability benefit new text beginunder this section new text endwho is restored to deleted text beginactive public service except persons
receiving benefits as provided in
deleted text endnew text begin employment not covered bynew text end subdivision 7deleted text begin,deleted text endnew text begin or 7anew text end deleted text beginshalldeleted text endnew text begin
must
new text end have new text beginthe disability benefit discontinued on the first day of the month following
the return to employment.
new text end

new text begin (b) If the person is employed by a governmental subdivision as defined under
section 353.01, subdivision 6,
new text enddeductions new text beginmust be new text endtaken for the retirement fund andnew text begin,new text end upon
subsequent retirement deleted text beginhave thedeleted text endnew text begin, the person is entitled to anew text end retirement annuity payable
based upon all allowable service including deleted text beginthatdeleted text endnew text begin the allowable servicenew text end upon which the
disability benefits were based.

new text begin (c) If the employment is not through public service covered under this chapter, the
account may be placed on a deferred status and the subsequent retirement annuity must
be calculated as provided in section 353.34, subdivision 3, if the person meets the length
of allowable service requirement stated in that subdivision; or the person may request a
refund of any remaining employee deductions. The refund must be in an amount equal to
the accumulated employee deductions plus six percent interest compounded annually and
must be reduced by the sum of the disability benefits paid to the member.
new text end

Sec. 27.

new text begin [353.335] DISABILITANT EARNINGS REPORTS.
new text end

new text begin Disability benefit recipients must report all earnings from reemployment and from
income from workers' compensation to the association annually by May 15 in a format
prescribed by the executive director. If the form is not submitted by May 15, benefits
must be suspended effective June 1. Upon receipt of the form by the association, if the
disability benefit recipient is deemed by the executive director to be eligible for continued
payment, benefits must be reinstated retroactive to June 1.
new text end

Sec. 28.

Minnesota Statutes 2004, section 353.34, subdivision 1, is amended to read:


Subdivision 1.

Refund or deferred annuity.

(a) A former member is entitled to a
refund of accumulated employee deductions under subdivision 2, or to a deferred annuity
under subdivision 3. Application for a refund may not be made deleted text beginprior todeleted text endnew text begin beforenew text end the date
of termination of public servicedeleted text begin or the termination of membership, whichever is soonerdeleted text end.
Except as specified in paragraph (b), a refund must be paid within 120 days following
receipt of the application unless the applicant has again become a public employee
required to be covered by the association.

(b) If an individual was deleted text begingranted an authorized temporarydeleted text endnew text begin placed onnew text end layoffnew text begin under
section 353.01, subdivision 12 or 12c
new text end, a refund is not payable before termination of
deleted text begin membershipdeleted text endnew text begin service new text endunder section 353.01, subdivision deleted text begin11b, clause (3)deleted text endnew text begin 11anew text end.

(c) An individual who terminates public service covered by the Public Employees
Retirement Association generalnew text begin employees retirementnew text end plan, the Public Employees
Retirement Association police and firenew text begin retirementnew text end plan, or the public employees local
government corrections service retirement plan, and who new text beginis employed by a different
employer and who
new text endbecomes an active member covered by one of the other two plans, may
receive a refund of employee contributions plus six percent interest compounded annually
from the plan deleted text beginindeleted text endnew text begin fromnew text end which the member terminated service.

Sec. 29.

Minnesota Statutes 2004, section 353.656, subdivision 4, is amended to read:


Subd. 4.

Limitation on disability benefit payments.

(a) No member is entitled to
receive a disability benefit payment when there remains to the member's credit unused
annual leave or sick leave or under any other circumstances when, during the period of
disability, there has been no impairment of the person's salary as a police officerdeleted text begin ordeleted text endnew text begin,new text end a
firefighter, new text beginor a paramedic as defined in section 353.64, subdivision 10, new text endwhichever applies.

(b) If a disabled member resumes a gainful occupation with earningsdeleted text begin less thandeleted text endnew text begin
that, when added to the normal disability benefit, and workers' compensation benefit
if applicable, exceed
new text end the disabilitant reemployment earnings limit, the amount of the
disability benefit must be reduced as provided in this paragraph. The disabilitant
reemployment earnings limit is the greater of:

(1) the salary earned at the date of disability; or

(2) 125 percent of the new text beginbase new text endsalary currently paid by the employing governmental
subdivision for similar positions.

The disability benefit must be reduced by one dollar for each three dollars by which
the total amount of the current disability benefit, any workers' compensation benefitsnew text begin if
applicable
new text end, and actual earnings exceed the greater disabilitant reemployment earnings
limit. In no event may the disability benefit as adjusted under this subdivision exceed
the disability benefit originally allowed.

Sec. 30.

Minnesota Statutes 2004, section 353D.01, subdivision 2, is amended to read:


Subd. 2.

Eligibility.

(a) Eligibility to participate in the defined contribution plan
is available to:

(1) elected local government officials of a governmental subdivision who elect to
participate in the plan under section 353D.02, subdivision 1, and who, for the elected
service rendered to a governmental subdivision, are not members of the Public Employees
Retirement Association within the meaning of section 353.01, subdivision 7;

(2) physicians who, if they did not elect to participate in the plan under section
353D.02, subdivision 2, would meet the definition of member under section 353.01,
subdivision 7
;

(3) basic and advanced life support emergency medical service personnel employed
by deleted text beginor providing services fordeleted text end any public ambulance service deleted text beginor privately operated ambulance
service that receives an operating subsidy from a governmental entity
deleted text end that elects to
participate under section 353D.02, subdivision 3;

(4) members of a municipal rescue squad associated with Litchfield in Meeker
County, or of a county rescue squad associated with Kandiyohi County, if an independent
nonprofit rescue squad corporation, incorporated under chapter 317A, performing
emergency management services, and if not affiliated with a fire department or ambulance
service and if its members are not eligible for membership in that fire department's or
ambulance service's relief association or comparable pension plan; deleted text beginand
deleted text end

(5) employees of the Port Authority of the city of St. Paul who elect to participate in
the plan under section 353D.02, subdivision 5, and who are not members of the Public
Employees Retirement Association under section 353.01, subdivision 7new text begin;new text end

new text begin (6) city managers who elected to be excluded from the general employees retirement
plan of the Public Employees Retirement Association under section 353.028 and who
elected to participate in the public employees defined contribution plan under section
353.028, subdivision 3, paragraph (b); and
new text end

new text begin (7) volunteer or emergency on-call firefighters serving in a municipal fire department
or an independent nonprofit firefighting corporation who are not covered by the public
employees police and fire retirement plan and who are not covered by a volunteer
firefighters relief association and who elect to participate in the public employees defined
contribution plan
new text end.

(b) For purposes of this chapter, an elected local government official includes
a person appointed to fill a vacancy in an elective office. Service as an elected local
government official only includes service for the governmental subdivision for which the
official was elected by the public-at-large. Service as an elected local government official
ceases and eligibility to participate terminates when the person ceases to be an elected
official. An elected local government official does not include an elected county sheriff.

(c) Individuals otherwise eligible to participate in the plan under this subdivision
who are currently covered by a public or private pension plan because of their employment
or provision of services are not eligible to participate in the public employees defined
contribution plan.

(d) A former participant is a person who has terminated eligible employment or
service and has not withdrawn the value of the person's individual account.

Sec. 31.

Minnesota Statutes 2004, section 353D.02, subdivision 3, is amended to read:


Subd. 3.

Eligible ambulance service personnel.

Each public ambulance service
deleted text begin or privately operated ambulance servicedeleted text end with eligible personnel deleted text beginthat receives an operating
subsidy from a governmental entity
deleted text end may elect to participate in the plan. If a service elects
to participate, its eligible personnel may elect to participate or to decline to participate. An
individual's election must be made within 30 days of the service's election to participate
or 30 days of the date on which the individual was employed by the service or began to
provide service for it, whichever date is later. An election by a service or an individual is
revocable.

Sec. 32.

Minnesota Statutes 2004, section 353D.02, is amended by adding a
subdivision to read:


new text begin Subd. 6. new text end

new text begin City managers. new text end

new text begin City managers who elected to be excluded from the
general employees retirement plan of the Public Employees Retirement Association
under section 353.028, and who elected to participate in the plan under section 353.028,
subdivision 3, paragraph (b), shall file that election with the executive director.
Participation begins on the first day of the pay period next following the date of the
coverage election. An election to participate by a city manager is revocable.
new text end

Sec. 33.

Minnesota Statutes 2004, section 353D.02, is amended by adding a
subdivision to read:


new text begin Subd. 7. new text end

new text begin Certain volunteer firefighters. new text end

new text begin Volunteer or emergency on-call firefighters
who are serving as members of a municipal fire department or an independent nonprofit
firefighting corporation and who are not covered for that firefighting service by the
public employees police and fire retirement plan under sections 353.63 to 353.68 or by
the applicable volunteer firefighters relief association under chapter 424A may elect to
participate in the plan. An eligible firefighter's election is irrevocable. No employer
contribution is payable by the fire department or the firefighting corporation unless the
municipal governing body or the firefighting corporation governing body, whichever
applies, ratifies the election.
new text end

Sec. 34.

Minnesota Statutes 2004, section 353D.03, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin City managers. new text end

new text begin A city manager who elects to participate in the plan
shall contribute an amount equal to the contribution under section 353.27, subdivision
2. The applicable city shall make a contribution equal to the contribution required under
section 353.27, subdivision 3.
new text end

Sec. 35.

Minnesota Statutes 2004, section 353D.03, is amended by adding a
subdivision to read:


new text begin Subd. 6. new text end

new text begin Volunteer firefighters. new text end

new text begin (a) Unless paragraph (b) applies, a volunteer or
emergency on-call firefighter who elects to participate in the plan shall contribute at least
7.5 percent of any compensation received for firefighting services.
new text end

new text begin (b) If the municipality or the independent nonprofit firefighting corporation ratified
the election of plan coverage under section 353D.02, subdivision 6, the volunteer
firefighter and the employing unit shall contribute in total an amount equal at least to 7.5
percent of any compensation received for firefighting services.
new text end

Sec. 36.

Minnesota Statutes 2004, section 353E.02, subdivision 3, is amended to read:


Subd. 3.

County correctional institution.

A county correctional institution is:

(1) a jail administered by a county;

(2) a correctional facility administered by a county; deleted text beginor
deleted text end

(3) a regional correctional facility administered by or on behalf of multiple countiesnew text begin;
or
new text end

new text begin (4) a juvenile correctional facility administered by a county or on behalf of multiple
counties
new text end.

Sec. 37.

Minnesota Statutes 2004, section 354.45, subdivision 1a, is amended to read:


Subd. 1a.

Bounce-back annuity.

(a) If a former member or disabilitant selects a
joint and survivor annuity option under subdivision 1new text begin after June 30, 1989new text end, the former
member or disabilitant must receive a normal single life annuity if the designated optional
annuity beneficiary dies before the former member or disabilitant. Under this option, no
reduction may be made in the person's annuity to provide for restoration of the normal
single life annuity in the event of the death of the designated optional annuity beneficiary.

(b) deleted text beginA former member or disabilitant who selected an optional joint and survivor
annuity before July 1, 1989, but did not choose an option that provides that the normal
single life annuity is payable to the former member or the disabilitant if the designated
optional annuity beneficiary dies first, is eligible for restoration of the normal single life
annuity if the designated optional annuity beneficiary dies first, without further actuarial
reduction of the person's annuity. A former member or disabilitant who selected an
optional joint and survivor annuity, but whose designated optional annuity beneficiary died
before July 1, 1989, shall receive a normal single life annuity after that date, but shall not
receive retroactive payments for periods before that date
deleted text endnew text begin The annuity adjustment specified
in paragraph (a) also applies to joint and survivor annuity options under subdivision
1 elected before July 1, 1989. The annuity adjustment under this paragraph occurs on
July 1, 1989, or on the first day of the first month following the death of the designated
optional annuity beneficiary, whichever is later. This paragraph may not be interpreted as
authorizing retroactive payments
new text end.

deleted text begin (c) The restoration of the normal single life annuity under this subdivision will take
effect on the first of the month following the date of death of the designated optional
annuity beneficiary or on the first of the month following one year before the date on
which a certified copy of the death record of the designated optional annuity beneficiary is
received in the office of the Teachers Retirement Association, whichever date is later.
deleted text end

Sec. 38.

Minnesota Statutes 2004, section 354A.32, subdivision 1a, is amended to read:


Subd. 1a.

Bounce-back annuity.

(a) If a former coordinated member or disabilitant
has selected a joint and survivor annuity option under subdivision 1new text begin after June 30,
1989
new text end, the former member or disabilitant must receive a normal single life annuity if the
designated optional annuity beneficiary dies before the former member or disabilitant.
Under this option, no reduction may be made in the person's annuity to provide for
restoration of the normal single life annuity in the event of the death of the designated
optional annuity beneficiary.

(b) deleted text beginA former coordinated member or disabilitant who selected an optional joint
and survivor annuity before July 1, 1989, but did not choose an option that provides
that the normal single life annuity is payable to the former member or the disabilitant if
the designated optional annuity beneficiary dies first, is eligible for restoration of the
normal single life annuity if the designated optional annuity beneficiary dies first, without
further actuarial reduction of the person's annuity. A former member or disabilitant who
selected an optional joint and survivor annuity, but whose designated optional annuity
beneficiary died before July 1, 1989, shall receive a normal single life annuity after that
date, but shall not receive retroactive payments for periods before that date
deleted text endnew text begin The annuity
adjustment specified in paragraph (a) also applies to joint and survivor annuity options
elected before July 1, 1989. The annuity adjustment under this paragraph occurs on
July 1, 1989, or on the first day of the first month following the death of the designated
optional annuity beneficiary, whichever is later. This paragraph may not be interpreted as
authorizing retroactive payments
new text end.

(c) deleted text beginA former coordinated member or disabilitant who took a further actuarial
reduction to elect an optional joint and survivor annuity that provides that the normal
annuity is payable to the former member or disabilitant if the designated optional
beneficiary dies first but has not died before July 1, 1989, shall have the annuity increased
as of July 1, 1989, to the amount the person would have received if, at the time of
retirement or disability, the person had selected only optional survivor coverage that
would not have provided for restoration of the normal annuity upon the death of the
designated optional annuity beneficiary. Any annuity or benefit increase under this
paragraph is effective only for payments made after June 30, 1989, and is not retroactive
for payments made before July 1, 1989.
deleted text end

deleted text begin (d)deleted text endnew text begin Unless otherwise specified in this subdivision,new text end the restoration of the normal
single life annuity under this subdivision deleted text beginwill takedeleted text endnew text begin takesnew text end effect on the first of the month
following the date of death of the designated optional annuity beneficiary or on the first of
the month following one year before the date on which a certified copy of the death record
of the designated optional annuity beneficiary is received in the office of the appropriate
teachers retirement fund association, whichever date is later.

Sec. 39.

Minnesota Statutes 2004, section 354D.05, is amended to read:


354D.05 CONTRIBUTIONS.

Subdivision 1.

Member contributions.

deleted text beginEligible employeesdeleted text end new text begin(a) Participants in the
individual retirement account plan who are specified in section 354D.02, subdivision 2,
clause (1) or (2), and
new text endwho would otherwise be deleted text begineligible to participate in thedeleted text end new text begin members of a
new text end Minnesota State Retirement System, deleted text beginthedeleted text end Public Employees Retirement Association, or deleted text beginthedeleted text end
Teachers Retirement Associationnew text begin plannew text end, deleted text beginbut who participate in the individual retirement
account plan,
deleted text end shall make a member contribution deleted text beginin an amount equal to the member
contribution amount required by the plan for which the individual was originally eligible
for membership. The contribution
deleted text end new text begin as specified in section 354B.23, subdivision 1.
new text end

new text begin (b) For individual retirement account plan members specified in section 354D.02,
subdivision 2, clause (3), the member contribution is the employee contribution specified
in applicable law for the Minnesota State Retirement System, Public Employees
Retirement Association, or Teachers Retirement Association plan in which the individual
would otherwise be a member.
new text end

new text begin (c) Contributions under this subdivision new text endmust be made by payroll deduction each
pay period and must be in accordance with either section 403(b) or 414(h) of the Internal
Revenue Code.

Subd. 2.

Employer contributions.

new text begin(a) new text endThe employer of deleted text begineligible employeesdeleted text endnew text begin an
employee
new text end described in subdivision 1 deleted text beginwho are eligible to participate in either the Minnesota
State Retirement System or the Public Employees Retirement Association shall
deleted text endnew text begin, paragraph
(a), must
new text end make an employer contribution to the new text beginemployee's individual retirement account
new text end plan deleted text beginin an amount equal to the employer contribution amount required by the plan for
which the individual was originally eligible for membership
deleted text endnew text begin account as specified in section
354B.23, subdivisions 3 and 4
new text end.

new text begin (b) new text endThe employer of deleted text begineligible employeesdeleted text endnew text begin an employeenew text end described in subdivision 1
deleted text begin who are eligible to participate in the Teachers Retirement Association shalldeleted text endnew text begin, paragraph
(b), must
new text end make an employer contribution to the new text beginemployee's individual retirement account
new text end plan deleted text beginin an amountdeleted text end new text begin account new text endequal to the employer contribution new text beginincluding, if applicable,
any employer additional contribution
new text endrequired by deleted text beginsection 354.42, subdivision 3, and
shall make an employer contribution to the
deleted text endnew text begin applicable plan law for the Minnesota State
Retirement System, Public Employees Retirement Association, or
new text end Teachers Retirement
Association in deleted text beginan amount equal todeleted text end new text begin which new text endthe deleted text beginemployer contribution required by section
354.42, subdivision 5
deleted text endnew text begin individual would otherwise be a membernew text end.

Sec. 40.

Minnesota Statutes 2004, section 356.24, subdivision 1, is amended to read:


Subdivision 1.

Restriction; exceptions.

new text begin(a) new text endIt is unlawful for a school district
or other governmental subdivision or state agency to levy taxes for, or to contribute
public funds to a supplemental pension or deferred compensation plan that is established,
maintained, and operated in addition to a primary pension program for the benefit of the
governmental subdivision employees other than:

(1) to a supplemental pension plan that was established, maintained, and operated
before May 6, 1971;

(2) to a plan that provides solely for group health, hospital, disability, or death
benefits;

(3) to the individual retirement account plan established by chapter 354B;

(4) to a plan that provides solely for severance pay under section 465.72 to a retiring
or terminating employee;

(5) for employees other than personnel employed by the Board of Trustees of the
Minnesota State Colleges and Universities and covered under the Higher Education
Supplemental Retirement Plan under chapter 354C, new text beginbut including city managers covered
by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph
(a), or by the defined contribution plan of the Public Employees Retirement Association
under section 353.028, subdivision 3, paragraph (b),
new text endif the supplemental plan coverage is
provided for in a personnel policy of the public employer or in the collective bargaining
agreement between the public employer and the exclusive representative of public
employees in an appropriate unitnew text begin or in the individual employment contract between a city
and a city manager
new text end, in an amount matching employee contributions on a dollar for dollar
basis, but not to exceed an employer contribution of $2,000 a year per employee;

(i) to the state of Minnesota deferred compensation plan under section 352.96; or

(ii) in payment of the applicable portion of the contribution made to any investment
eligible under section 403(b) of the Internal Revenue Code, if the employing unit has
complied with any applicable pension plan provisions of the Internal Revenue Code with
respect to the tax-sheltered annuity program during the preceding calendar year;

(6) for personnel employed by the Board of Trustees of the Minnesota State Colleges
and Universities and not covered by clause (5), to the supplemental retirement plan under
chapter 354C, if the supplemental plan coverage is provided for in a personnel policy
or in the collective bargaining agreement of the public employer with the exclusive
representative of the covered employees in an appropriate unit, in an amount matching
employee contributions on a dollar for dollar basis, but not to exceed an employer
contribution of $2,700 a year for each employee;

(7) to a supplemental plan or to a governmental trust to save for postretirement
health care expenses qualified for tax-preferred treatment under the Internal Revenue
Code, if the supplemental plan coverage is provided for in a personnel policy or in the
collective bargaining agreement of a public employer with the exclusive representative of
the covered employees in an appropriate unit;

(8) to the laborer's national industrial pension fund for the employees of a
governmental subdivision who are covered by a collective bargaining agreement that
provides for coverage by that fund and that sets forth a fund contribution rate, but not to
exceed an employer contribution of $2,000 per year per employee;

(9) to the plumbers' and pipefitters' national pension fund or to a plumbers' and
pipefitters' local pension fund for the employees of a governmental subdivision who are
covered by a collective bargaining agreement that provides for coverage by that fund and
that sets forth a fund contribution rate, but not to exceed an employer contribution of
$2,000 per year per employee;

(10) to the international union of operating engineers pension fund for the employees
of a governmental subdivision who are covered by a collective bargaining agreement that
provides for coverage by that fund and that sets forth a fund contribution rate, but not to
exceed an employer contribution of $2,000 per year per employee; or

(11) to a supplemental plan organized and operated under the federal Internal
Revenue Code, as amended, that is wholly and solely funded by the employee's
accumulated sick leave, accumulated vacation leave, and accumulated severance pay.

new text begin (b) No governmental subdivision may make a contribution to a deferred
compensation plan operating under section 457 of the Internal Revenue Code for volunteer
or emergency on-call firefighters in lieu of providing retirement coverage under the federal
old age, survivors, and disability insurance program.
new text end

Sec. 41.

Minnesota Statutes 2004, section 356.50, is amended to read:


356.50 SERVICE AND SALARY CREDIT FROM BACK PAY AWARDS IN
THE EVENT OF WRONGFUL DISCHARGEnew text begin; ANNUITY AND DISABILITY
TREATMENT
new text end.

new text begin Subdivision 1. new text end

new text begin Application. new text end

(a) A person who is wrongfully discharged from public
employment that gave rise to coverage by a public employee pension plan enumerated
in section 356.30, subdivision 3, is entitled to obtain allowable service credit from the
applicable public employee pension plan for the applicable period caused by the wrongful
discharge.

(b) A person is wrongfully discharged for purposes of this section if:

(1) the person has been determined by a court of competent jurisdiction deleted text beginordeleted text endnew text begin,new text end by an
arbitrator in binding arbitration, new text beginby the commissioner of veterans affairs, or by a board,
commission, or panel acting under section 197.46,
new text endwhichever applies, to have been
wrongfully discharged from public employment;

(2) the person received an award of back pay with respect to that discharge; and

(3) the award does not include any amount for any lost or interrupted public pension
plan coverage.

new text begin Subd. 2. new text end

new text begin Service credit procedure. new text end

deleted text begin(c)deleted text endnew text begin (a)new text end To obtain the public pension plan
allowable service credit, the new text begineligible new text endperson new text beginunder subdivision 1 new text endshall pay the required
member contribution amount. The required member contribution amount is the member
contribution rate or rates in effect for the pension plan during the period of service covered
by the back pay award, applied to the unpaid gross salary amounts of the back pay award
including unemployment insurance, workers' compensation or wages from other sources
which reduced the back award. No contributions deleted text beginshalldeleted text endnew text begin maynew text end be made under this clause for
compensation covered by a public pension plan listed in section 356.30, subdivision 3,
for employment during the removal period. The person shall pay the required member
contribution amount within 60 days of the date of receipt of the back pay award, deleted text beginwithin
60 days of April 14, 1992,
deleted text end or within 60 days of a billing from the retirement fund,
whichever is later.

deleted text begin (d)deleted text endnew text begin (b)new text end The public employer who wrongfully discharged the public employee must
pay an employer contribution on the back pay award. The employer contribution must be
based on the employer contribution rate or rates in effect for the pension plan during the
period of service covered by the back pay award, applied to the salary amount on which
the member contribution amount was determined under paragraph deleted text begin(c)deleted text endnew text begin (a)new text end. Interest on both
the required member and employer contribution amount must be paid by the employer at
the annual compound rate of 8.5 percent per year, expressed monthly, between the date the
contribution amount would have been paid to the date of actual payment. The employer
payment must be made within 30 days of the payment under paragraph deleted text begin(c)deleted text endnew text begin (a)new text end.

new text begin Subd. 3. new text end

new text begin Employer reporting. new text end

new text begin The employer must report to the executive director
of the applicable pension plan that a person has been determined to be wrongfully
discharged and the employer must provide a copy of the written order or decision.
new text end

new text begin Subd. 4. new text end

new text begin Annuity repayment. new text end

new text begin Notwithstanding subdivisions 1 and 2, if after being
discharged, the person commences receipt of an annuity from the applicable plan, and it is
later determined that the person was wrongfully discharged, the person shall repay the
annuity received in a lump sum within 60 days of receipt of the back pay award. If the
annuity is not repaid, the person is not entitled to reinstatement in the applicable plan as
an active member, the person is not authorized to make payments under subdivision 2,
paragraph (a), and, for subsequent employment with the employer, the person shall be
treated as a reemployed annuitant.
new text end

new text begin Subd. 5. new text end

new text begin Disability treatment. new text end

new text begin If a person is wrongfully discharged and before
reinstatement takes a refund of employee contributions under the applicable plan's refund
provision and fails to repay that refund, then not withstanding other law to the contrary, if
the person applies for a disability benefit and is approved for that benefit, the disability
benefit amount must be computed solely on the years of covered service provided after
reinstatement, on the individual's salary for benefit computation purposes, and on the
applicable plan accrual rates, rather than receiving a minimum disability benefit amount, if
applicable, specified in plan law.
new text end

Sec. 42.

Laws 2004, chapter 267, article 8, section 41, is amended to read:


Sec. 41. REPEALER.


deleted text begin (a)deleted text end Minnesota Statutes 2002, sections 353.33, subdivision 5b; and 490.11, are
repealed on July 1, 2004.


deleted text begin (b) Sections 3 and 19 are repealed on July 1, 2006.deleted text end

Sec. 43. new text beginEARLY RETIREMENT INCENTIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin An appointing authority in the executive or legislative
branch of state government or the Board of Public Defense or the Minnesota Historical
Society or the Minnesota State Colleges and Universities or any school district may offer
the early retirement incentive in this section to an employee who:
new text end

new text begin (1) has at least 15 years of allowable service in one or more of the funds listed in
Minnesota Statutes, section 356.30, subdivision 3, or has at least five years of coverage by
the individual retirement account plan governed by Minnesota Statutes, chapter 354B, and
upon retirement is immediately eligible for a retirement annuity or benefit from one or
more of these funds; and
new text end

new text begin (2) terminates state or teaching service after the effective date of this section and
before September 1, 2006.
new text end

new text begin Subd. 2. new text end

new text begin Incentive. new text end

new text begin (a) For an employee eligible under subdivision 1, the employer
may provide an amount up to $17,000, to be used:
new text end

new text begin (1) for an employee who terminates state service after the effective date of this
section and on or before July 15, 2006, for deposit in the employee's account in the health
care savings plan established by Minnesota Statutes, section 352.98; or
new text end

new text begin (2) for an employee who terminates state service after July 15, 2006, and before
September 1, 2006:
new text end

new text begin (i) notwithstanding Minnesota Statutes, section 352.01, subdivision 11, or 354.05,
subdivision 13, whichever applies, for purchase of service credit for unperformed service
sufficient to enable the employee to retire under Minnesota Statutes, section 352.116,
subdivision 1, paragraph (b); 353.30; or 354.44, subdivision 6, paragraph (b), whichever
applies; or
new text end

new text begin (ii) for purchase of a lifetime annuity or annuity for a specific number of years from
the state unclassified retirement program to provide additional benefits under Minnesota
Statutes, section 352D.06, subdivision 1.
new text end

new text begin (b) An employee is eligible for the payment under paragraph (a), clause (2), item
(i), if the employee uses money from a deferred compensation account that, combined
with the payment under paragraph (a), clause (2), item (i), would be sufficient to purchase
enough service credit to qualify for retirement under Minnesota Statutes, section 352.116,
subdivision 1, paragraph (b); 353.30, subdivision 1a; or 354.44, subdivision 6, paragraph
(b), whichever applies.
new text end

new text begin (c) The cost to purchase service credit under this section must be made in accordance
with Minnesota Statutes, section 356.551.
new text end

new text begin Subd. 3. new text end

new text begin Designation of positions; employer discretion. new text end

new text begin Before offering an
incentive under this section, an appointing authority must be experiencing employee
layoffs due to budget shortfalls or a reorganization that would be offset by offering the
incentive. The appointing authority must document that the incentive payment is equal
to or less than the cost of the employee layoff. The appointing authority must designate
the job classifications or positions within the job classifications that qualify for the
incentive. The appointing authority may modify this designation at any time. Designation
of positions eligible for the incentive under this section, participation of individual
employees, and the amount of the payment under this section are at the sole discretion of
the appointing authority. Unilateral implementation of this section by the employer is not
an unfair labor practice under Minnesota Statutes, chapter 179A.
new text end

Sec. 44. new text beginPERA-GENERAL; PURCHASE OF SERVICE CREDIT FOR
ILLINOIS MUNICIPAL RETIREMENT PLAN COVERED SERVICE.
new text end

new text begin (a) Notwithstanding any provision of Minnesota Statutes, chapter 353, to the
contrary, a member of the general employees retirement plan of the Public Employees
Retirement Association who left active employment covered by Minnesota Statutes,
chapter 353, was employed in public employment covered by the Illinois municipal
retirement plan, and returned to active Minnesota local government employment may
purchase allowable service credit in the general employees retirement plan of the Public
Employees Retirement Association for the period of service covered by the Illinois
municipal retirement plan by authorizing the transfer of funds specified in paragraph (b)
and by making the payment specified in paragraph (c).
new text end

new text begin (b) If a person elects to obtain service credit under this section, the person shall
authorize an institution-to-institution transfer of the person's account in the Illinois
municipal retirement plan to the general employees retirement fund of the Public
Employees Retirement Association.
new text end

new text begin (c) If a person elects to obtain service credit under this section and authorizes an
account transfer under paragraph (b), the person shall pay the balance of the prior service
credit purchase payment calculated under Minnesota Statutes, section 356.551, in excess
of the account transfer amount.
new text end

new text begin (d) The election under this section must be made in writing on a form prescribed
by the executive director of the Public Employees Retirement Association. The person
making this election also must waive any retirement annuity or benefit from the Illinois
municipal retirement fund and must provide any reasonable documentation of the person's
compliance with qualification requirements to the executive director of the Public
Employees Retirement Association that is requested by the director.
new text end

Sec. 45. new text beginTEMPORARY PROVISION; TRANSFER OF CERTAIN DEFERRED
COMPENSATION CONTRIBUTIONS.
new text end

new text begin Any amount contributed by a municipality or an independent nonprofit firefighting
corporation to the state deferred compensation program under Minnesota Statutes, section
352.96, for or on behalf of a volunteer or emergency on-call firefighter for whom no other
retirement coverage is provided for that firefighting service and for whom the deferred
compensation program contributions were made to avoid providing retirement coverage
under the federal old age, survivors, and disability insurance program and as such were
in error, if federal law so permits, may be transferred to the public employees defined
contribution plan for subsequent deposit in the individual account of the applicable
firefighter.
new text end

Sec. 46. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 43A.34, subdivision 1, new text end new text begin is repealed.
new text end

Sec. 47. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin In Minnesota Statutes 2006 and subsequent editions, the revisor of statutes shall
change references to "the commission-retained actuary" or to "the actuary retained by the
Legislative Commission on Pensions and Retirement" to "the actuary retained under
section 356.214."
new text end

Sec. 48. new text beginEFFECTIVE DATE.
new text end

new text begin (a) Sections 1, 43, and 46 are effective the day following final enactment.
new text end

new text begin (b) Sections 2 to 11, 13 to 31, 36 to 38, and 42 are effective July 1, 2006.
new text end

new text begin (c) Section 39 is effective the first day of the first payroll period next following
final enactment.
new text end

new text begin (d) Sections 3, 4, 21, 22, 37, and 38 are not intended to increase, modify, impair,
or diminish the benefit entitlements specified in the sections of Minnesota Statutes being
amended. If the executive director of the Minnesota State Retirement System, the Public
Employees Retirement Association, the Teachers Retirement Association, or a first
class city teacher retirement fund association, whichever is applicable, determines that
any provision of those sections does increase, modify, impair, or diminish the benefit
entitlements as reflected in applicable law just before the effective date of this section,
the applicable executive director shall certify that determination and a recommendation
as to the required legislative correction to the chairs of the Legislative Commission on
Pensions and Retirement, the house Governmental Operations and Veterans Affairs Policy
Committee, the senate State and Local Governmental Operations Committee, and the
executive director of the Legislative Commission on Pensions and Retirement.
new text end

new text begin (e) Sections 12, 32 to 35, 40, 41, and 45 are effective the day following final
enactment.
new text end

ARTICLE 4

PERA-P&F RETIREMENT PLAN CHANGES

Section 1.

Minnesota Statutes 2005 Supplement, section 353.656, subdivision 1,
is amended to read:


Subdivision 1.

In line of duty; computation of benefits.

new text begin(a) new text endA member of the
police and fire plan whonew text begin:
new text end

new text begin (1) has not met the requirements for a retirement annuity under section 353.651,
subdivision 1, or
new text end

new text begin (2) has met the requirements for a retirement annuity under section 353.651,
subdivision 1, but who does not have 20 years of credited service; and who
new text endbecomes
disabled and physically unfit to perform duties as a police officer, firefighter, or paramedic
as defined under section 353.64, subdivision 10, as a direct result of an injury, sickness, or
other disability incurred in or arising out of any act of duty, which has or is expected to
render the member physically or mentally unable to perform the duties as a police officer,
firefighter, or paramedic as defined under section 353.64, subdivision 10, for a period of at
least one year, shall receive disability benefits during the period of such disability.

new text begin (b) new text endThe benefits must be in an amount equal to 60 percent of the "average salary" as
defined in section 353.01, subdivision 17a, plus an additional percent specified in section
356.315, subdivision 6, of that average salary for each year of service in excess of 20
years. If the disability under this subdivision occurs before the member has at least five
years of allowable service credit in the police and fire plan, the disability benefit must be
computed on the "average salary" from which deductions were made for contribution to
the police and fire fund.

Sec. 2.

Minnesota Statutes 2004, section 353.656, subdivision 3, is amended to read:


Subd. 3.

Nonduty disability benefit.

new text begin(a) new text endAny member of the police and fire plan
whonew text begin:
new text end

new text begin (1) has not met the requirements for a retirement annuity under section 353.651,
subdivision 1, or
new text end

new text begin (2) has met the requirements for a retirement annuity under section 353.651,
subdivision 1, but who does not have 15 years of credited service; and who
new text endbecomes
disabled after not less than one year of allowable service because of sickness or injury
occurring while not on duty as a police officer, firefighter, or paramedic as defined under
section 353.64, subdivision 10, and by reason of that sickness or injury the member has
been or is expected to be unable to perform the duties as a police officer, firefighter, or
paramedic as defined under section 353.64, subdivision 10, for a period of at least one
year, is entitled to receive a disability benefit.

new text begin (b) new text endThe benefit must be paid in the same manner as if the benefit were paid under
section 353.651. If a disability under this subdivision occurs after one but in less than 15
years of allowable service, the disability benefit must be the same as though the member
had at least 15 years service. For a member who is employed as a full-time firefighter
by the Department of Military Affairs of the state of Minnesota, allowable service as a
full-time state Military Affairs Department firefighter credited by the Minnesota State
Retirement System may be used in meeting the minimum allowable service requirement
of this subdivision.

Sec. 3.

Minnesota Statutes 2004, section 353.656, subdivision 6a, is amended to read:


Subd. 6a.

Disability survivor benefits.

If a member who is receiving a disability
benefit under subdivision 1 or 3:

deleted text begin (a)deleted text end new text begin(1) new text enddies before attaining new text beginthe new text endagedeleted text begin 65deleted text endnew text begin required for receipt of a retirement annuity
under section 353.651, subdivision 1,
new text end or within five years of the effective date of the
disability, whichever is later, the surviving spouse shall receive a survivor benefit under
section 353.657, subdivision 2 or 2a, unless the surviving spouse elected to receive a
refund under section 353.32, subdivision 1. The joint and survivor optional annuity under
subdivision 2a is based on the minimum disability benefit under subdivision 1 or 3, or the
deceased member's allowable service, whichever is greaterdeleted text begin.deleted text endnew text begin;new text end

deleted text begin (b)deleted text end new text begin(2) new text endis living at new text beginthe new text endagedeleted text begin 65deleted text endnew text begin required for receipt of a retirement annuity under
section 353.651, subdivision 1,
new text end or five years after the effective date of the disability,
whichever is later, the member may continue to receive a normal disability benefit,
or the member may elect a joint and survivor optional annuity under section 353.30.
The optional annuity is based on the minimum disability benefit under subdivision 1 or
3, or the member's allowable service, whichever is greater. The election of this joint
and survivor annuity must occur within 90 days of new text beginthe new text endagedeleted text begin 65deleted text endnew text begin required for receipt of a
retirement annuity under section 353.651, subdivision 1,
new text end or the five-year anniversary of the
effective date of the disability benefit, whichever is later. The optional annuity takes effect
the first of the month following the month in which the person attains new text beginthe new text endagedeleted text begin 65deleted text endnew text begin required
for receipt of a retirement annuity under section 353.651, subdivision 1,
new text end or reaches the
five-year anniversary of the effective date of the disability benefit, whichever is laterdeleted text begin.deleted text endnew text begin; ornew text end

deleted text begin (c) if there isdeleted text end new text begin(3) new text endnew text beginhas new text enda dependent child or children under deleted text beginparagraph (a) or (b)deleted text endnew text begin clause
(1) or (2)
new text end, the association shall grant a dependent child benefit under section 353.657,
subdivision 3
.

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

new text begin Sections 1 to 3 are effective July 1, 2006.
new text end

ARTICLE 5

PRIVATIZATION RETIREMENT COVERAGE CHANGE

Section 1.

Minnesota Statutes 2004, section 352F.04, is amended to read:


352F.04 AUGMENTATION INTEREST deleted text beginRATEdeleted text end new text beginRATESnew text end FOR TERMINATED
deleted text begin UNIVERSITY HOSPITALdeleted text end new text beginPRIVATIZEDnew text end EMPLOYEES.

new text begin Subdivision 1. new text end

new text begin Enhanced augmentation rates. new text end

new text begin(a) new text endThe deferred annuity of a
terminated hospital employee new text beginwho attained that status before the effective date of this
section
new text endis subject to augmentation deleted text beginin accordance withdeleted text end new text beginunder new text endMinnesota Statutes 1994,
section 352.72, subdivision 2, except that the rate of deleted text begininterest for this purposedeleted text end new text beginaugmentation
new text end is 5.5 percent compounded annually until January 1 following the year in which deleted text beginsuchdeleted text end new text beginthe
new text end person attains age 55. From that date to the effective date of retirement, the new text beginaugmentation
new text end rate is 7.5 percentnew text begin compounded annuallynew text end. deleted text beginThese
deleted text end

new text begin (b) If a terminated hospital employee attained that status on or after the effective date
of this section, the augmentation rate is four percent compounded annually until January
1, following the year in which the person attains age 55. From that date to the effective
date of retirement, the augmentation rate is six percent compounded annually.
new text end

new text begin Subd. 2. new text end

new text begin Exceptions. new text end

new text beginThenew text end increased augmentation rates deleted text beginare no longer applicable for
any time after
deleted text end new text beginspecified in subdivision 1 do not apply if new text endthe terminated deleted text beginhospital employee
or Academic Health Center
deleted text end employeenew text begin:
new text end

new text begin (1)new text end becomes covered again by a retirement deleted text beginfunddeleted text end new text beginplan new text endenumerated in section 356.30,
subdivision 3
deleted text begin. These increased deferred annuity augmentation rates do not apply to a
terminated transferred hospital employee or Academic Health Center employee who
deleted text endnew text begin; or
new text end

new text begin (2)new text end begins receipt of a retirement annuity while employed by deleted text beginFairviewdeleted text endnew text begin the employer
which assumed operations of the medical facility or other public employing unit or
purchased the medical facility or other public employing unit
new text end.

Sec. 2.

Minnesota Statutes 2005 Supplement, section 353F.02, subdivision 4, is
amended to read:


Subd. 4.

Medical facility.

"Medical facility" means:

(1) Bridges Medical Services;

(2) new text beginthe City of Cannon Falls Hospital;
new text end

new text begin (3) Clearwater County Memorial Hospital doing business as Clearwater Health
Services in Bagley;
new text end

new text begin (4) the Dassel Lakeside Community Home;
new text end

new text begin (5) new text endthe Fair Oaks Lodge, Wadena;

deleted text begin (3)deleted text endnew text begin (6)new text end the Glencoe Area Health Center;

deleted text begin (4)deleted text endnew text begin (7)new text end the Hutchinson Area Health Care;

deleted text begin (5)deleted text endnew text begin (8)new text end the Kanabec Hospital;

deleted text begin (6)deleted text endnew text begin (9)new text end the Luverne Public Hospital;

deleted text begin (7)deleted text endnew text begin (10)new text end the Northfield Hospital;

deleted text begin (8)deleted text endnew text begin (11)new text end the RenVilla Nursing Home;

deleted text begin (9)deleted text endnew text begin (12)new text end the Renville County Hospital in Olivia;

deleted text begin (10)deleted text endnew text begin (13)new text end the St. Peter Community Healthcare Center; and

deleted text begin (11)deleted text endnew text begin (14)new text end the Waconia-Ridgeview Medical Center.

Sec. 3.

Minnesota Statutes 2004, section 353F.04, is amended to read:


353F.04 AUGMENTATION INTEREST deleted text beginRATEdeleted text end new text beginRATESnew text end FOR TERMINATED
MEDICAL new text beginOR OTHER PUBLIC EMPLOYING UNITnew text end FACILITY EMPLOYEES.

new text begin Subdivision 1. new text end

new text begin Enhanced augmentation rates. new text end

new text begin(a) new text endThe deferred annuity of
a terminated medical facility or other public employing unit employee is subject to
augmentation deleted text beginin accordance withdeleted text end new text beginunder new text endsection 353.71, subdivision 2, of the edition of
Minnesota Statutes published in the year in which the privatization occurred, except that
the rate of deleted text begininterest for this purposedeleted text end new text beginaugmentation new text endis new text begin as specified in paragraph (b) or (c),
whichever is applicable.
new text end

new text begin (b) This paragraph applies if the legislation adding the medical facility or other
employing unit to section 353F.02, subdivision 4 or 5, as applicable, was enacted before
July 26, 2005, and became effective before January 1, 2007. For a terminated medical
facility or other public employing unit employee, the augmentation rate is
new text end5.5 percent
compounded annually until January 1 following the year in which deleted text beginsuchdeleted text end new text beginthe new text endperson attains
age 55. From that date to the effective date of retirement, the new text beginaugmentation new text endrate is 7.5
percentnew text begin compounded annuallynew text end. deleted text beginThese
deleted text end

new text begin (c) If paragraph (b) is not applicable, the augmentation rate is four percent
compounded annually until January 1, following the year in which the person attains age
55. From that date to the effective date of retirement, the augmentation rate is six percent
compounded annually.
new text end

new text begin Subd. 2. new text end

new text begin Exceptions. new text end

new text beginThenew text end increased augmentation rates deleted text beginare no longer applicable for
any time after
deleted text end new text beginspecified in subdivision 1 do not apply if new text endthe terminated medical facility
or other public employing unit employeenew text begin:
new text end

new text begin (1)new text end becomes covered again by a retirement deleted text beginfunddeleted text end new text beginplan new text endenumerated in section 356.30,
subdivision 3
deleted text begin. These increased deferred annuity augmentation rates do not apply to a
terminated transferred medical facility or other public employing unit employee who
deleted text endnew text begin; or
new text end

new text begin (2)new text end begins receipt of a retirement annuity while employed by the employer which
assumed operations of the medical facility or other public employing unit or purchased the
medical facility or other public employing unit.

Sec. 4.

Laws 2005, First Special Session chapter 8, article 6, section 4, is amended to
read:


Sec. 4. EFFECTIVE DATE.

(a) Section 1, relating to Bridges Medical Services, is effective upon the later of:

(1) the day after the governing body of the city of Ada and its chief clerical officer
timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions
2 and 3; and

(2) the first day of the month next following certification to the governing body of
the city of Ada by the executive director of the Public Employees Retirement Association
that the actuarial accrued liability of the special benefit coverage proposed for extension to
the privatized Bridges Medical Services employees under section 1 does not exceed the
actuarial gain otherwise to be accrued by the Public Employees Retirement Association, as
calculated by the consulting actuary retained under Minnesota Statutes, section 356.214.

(b) Section 1, relating to the Hutchinson Area Health Care, is effective upon the
later of:

(1) the day after the governing body of the city of Hutchinson and its chief clerical
officer timely complete their compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3new text begin, except that the certificate of approval must be filed before January 1,
2008
new text end; and

(2) the first day of the month next following certification to the governing body of
the city of Hutchinson by the executive director of the Public Employees Retirement
Association that the actuarial accrued liability of the special benefit coverage proposed
for extension to the privatized Hutchinson Area Health Care employees under section
1 does not exceed the actuarial gain otherwise to be accrued by the Public Employees
Retirement Association, as calculated by the consulting actuary retained deleted text beginby the Legislative
Commission on Pensions and Retirement
deleted text endnew text begin under Minnesota Statutes, section 356.214new text end.

(c) Section 1, relating to the Northfield Hospital, is effective upon the later of:

(1) the day after the governing body of the city of Northfield and its chief clerical
officer timely complete their compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3; and

(2) the first day of the month next following certification to the governing body
of the city of Northfield by the executive director of the Public Employees Retirement
Association that the actuarial accrued liability of the special benefit coverage proposed
for extension to the privatized Northfield Hospital employees under section 1 does not
exceed the actuarial gain otherwise to be accrued by the Public Employees Retirement
Association, as calculated by the consulting actuary retained deleted text beginby the Legislative
Commission on Pensions and Retirement
deleted text endnew text begin under Minnesota Statutes, section 356.214new text end.

(d) The cost of the actuarial calculations must be borne by the facility, the city in
which the facility is located, or the purchaser of the facility.

(e) If the required actions in paragraphs (a), (b), or (c) and (d) occur, section 1
applies retroactively to the date of privatization.

(f) Section 3 is effective the day following final enactment.

(g) Section 2 is effective the day following final enactment and applies to
privatizations occurring on or after the effective date.

Sec. 5. new text beginEFFECTIVE DATE.
new text end

new text begin (a) Sections 1, 3, and 4 are effective the day following final enactment and section 3
has effect retroactively from July 25, 2005.
new text end

new text begin (b) Section 2 with respect to the Cannon Falls Hospital District is effective upon the
latter of:
new text end

new text begin (1) the day after the governing body of the Cannon Falls Hospital District and its
chief clerical officer meet the requirements under Minnesota Statutes, section 645.021,
subdivisions 2 and 3; and
new text end

new text begin (2) the first day of the month following certification to the Cannon Falls Hospital
District by the executive director of the Public Employees Retirement Association that the
actuarial accrued liability of the special benefit coverage proposed for extension to the
privatized City of Cannon Falls Hospital employees under section 1 does not exceed the
actuarial gain otherwise to be accrued by the Public Employees Retirement Association, as
calculated by the consulting actuary retained under Minnesota Statutes, section 356.214.
The cost of the actuarial calculations must be borne by the current employer or by the
entity which is the employer following the privatization.
new text end

new text begin (c) Section 2, with respect to Clearwater County Memorial Hospital, is effective
upon the latter of:
new text end

new text begin (1) the day after the governing body of Clearwater County and its chief clerical
officer meet the requirements under Minnesota Statutes, section 645.021, subdivisions 2
and 3; and
new text end

new text begin (2) the first day of the month following certification to Clearwater County by the
executive director of the Public Employees Retirement Association that the actuarial
accrued liability of the special benefit coverage proposed for extension to the privatized
Clearwater Health Services employees under section 2 does not exceed the actuarial gain
otherwise to be accrued by the Public Employees Retirement Association, as calculated by
the consulting actuary retained under Minnesota Statutes, section 356.214. The cost of
the actuarial calculations must be borne by the current employer or by the entity which is
the employer following the privatization.
new text end

new text begin (d) Section 2 with respect to the Dassel Lakeside Community Home is effective
upon the latter of:
new text end

new text begin (1) the day after the governing body of the city of Dassel and its chief clerical officer
timely complete compliance with Minnesota Statutes, section 645.021, subdivisions 2
and 3; and
new text end

new text begin (2) the first day of the month next following certification to the Dassel City
Council by the executive director of the Public Employees Retirement Association that
the actuarial accrued liability of the special benefit coverage proposed for extension to
the privatized Dassel Lakeside Community Home employees under section 2 does not
exceed the actuarial gain otherwise to be accrued by the Public Employees Retirement
Association, as calculated by the consulting actuary retained under Minnesota Statutes,
section 356.214. The cost of the actuarial calculations must be borne by the city of Dassel
or by the entity which is the employer following the privatization.
new text end

ARTICLE 6

SOCIAL SECURITY COVERAGE CHANGES

Section 1.

Minnesota Statutes 2004, section 355.01, subdivision 3g, is amended to read:


Subd. 3g.

Local governmental subdivision.

"Local governmental subdivision"
means:

(1) a political subdivision as defined in section 218(b) of the Social Security Act;

(2) an instrumentality of the state;

(3) an instrumentality of one or more of the political subdivisions of the statedeleted text begin,
including the League of Minnesota Cities
deleted text end;

(4) an instrumentality of the state and one or more of its political subdivisions;

(5) a governmental subdivision as defined in section 353.01, subdivision 6; and

(6) any instrumentality established under a joint powers agreement under section
471.59 wherein the instrumentality is responsible for the employment and the payment of
the salaries of the employees of the instrumentality.

Sec. 2.

Minnesota Statutes 2004, section 355.02, subdivision 1, is amended to read:


Subdivision 1.

General authority.

(a) The director, with the approval of the
governor, is hereby authorized to enter into an agreement on behalf of the statenew text begin, its political
subdivisions, and its other governmental employers,
new text end with the federal Secretary of Health
and Human Services, consistent with the terms and provisions of this chapter, for the
purpose of extending the benefits of the federal old age, survivors, and disability insurance
system to employees of the state or any political subdivision thereof new text beginwho hold positions
covered by a retirement system
new text endwith respect to services specified in the agreement which
constitute "employmentdeleted text begin,deleted text endnew text begin.new text end" deleted text beginwhenever so specifically authorized by the statutory provisions
of this state pertaining to any coverage group of such employees to which the agreement
may become applicable under the Social Security Act.
deleted text end

(b) deleted text beginUnder this specific authorizationdeleted text end The agreement may contain those provisions
relating to coverage, benefits, contributions, effective date, modification and termination
of the agreement, administration, and other appropriate provisions as the director and the
federal Secretary of Health and Human Services shall agree upon, but, except as may be
otherwise required by or under the Social Security Act as to the services to be covered,
such agreement must provide in effect that:

(1) benefits will be provided for employees whose services are covered by the
agreement (and their dependents and survivors) on the same basis as though those services
constituted employment within the meaning of title II of the Social Security Act;

(2) the state or other employer will pay to the federal Secretary of the Treasury, at
such time or times as may be prescribed under the Social Security Act, contributions
with respect to wages, equal to the sum of the taxes which would be imposed by the
Federal Insurance Contributions Act if the services covered by the agreement constituted
employment within the meaning of that act;

(3) the agreement is effective with respect to services in employment covered by the
agreement performed after a date specified therein; and

(4) all services which constitute employment and are performed in the employ of
the state or any of its political subdivisions by employees thereof, may be covered by the
agreement deleted text beginwhenever so specifically authorized by the statutory provisions of this state
pertaining to any coverage group of such employees to which the agreement may become
applicable under the Social Security Act
deleted text end.

Sec. 3.

Minnesota Statutes 2004, section 355.02, subdivision 3, is amended to read:


Subd. 3.

Groups covered by Social Security.

new text begin(a) new text endThe following groups new text beginhaving
coverage under a retirement plan in section 356.30, subdivision 3, except clauses (4) and
(8)
new text endmust be covered by an agreement or a modification to an agreement between the
director and the federal Secretary of Health and Human Services:

(1) constitutional officers;

(2) Duluth teachers;

(3) educational employees;

(4) higher education employees;

(5) hospital employees;

(6) judges;

(7) legislators;

(8) Minneapolis teachers;

(9) public employees;

(10) St. Paul teachers;new text begin and
new text end

(11) deleted text beginspecial authority or district employees; and
deleted text end

deleted text begin (12)deleted text end state employees.

new text begin (b) The following groups must be covered prospectively following the referendum
in subdivision 4 and the modification to the state Social Security agreement under
subdivision 1:
new text end

new text begin (1) special authority or district employees in positions covered by a retirement plan
provided by the employer; and
new text end

new text begin (2) local elected officials of a local governmental subdivision or of a special authority
or district holding positions covered by the defined contribution plan under chapter 353D.
new text end

new text begin (c) Each local governmental subdivision or special authority or district desiring
inclusion in the state Social Security agreement for groups covered by paragraph (b) must
request such coverage by submitting a formal resolution to the director, including therein
the desired starting date for Social Security coverage.
new text end

new text begin (d) For purposes of paragraph (b), clause (2), the defined contribution plan of the
Public Employees Retirement Association is considered a separate retirement system with
respect to each local governmental subdivision or special authority or district, and the
elected officials in a local governmental subdivision or in a special authority or district
must be treated separately and independently from the other governmental subdivisions.
new text end

Sec. 4.

Minnesota Statutes 2004, section 355.02, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Referendum. new text end

new text begin The director shall authorize and supervise a referendum
under section 218(d)(6)(C) of the Social Security Act to be held on the date or dates set by
the local governmental subdivision or by the special authority or district desiring inclusion
under subdivision 3, paragraph (b). The referendum must permit each eligible employee
the opportunity to elect Social Security coverage. The notice of referendum required by
section 218(d) of the Social Security Act must contain a statement sufficient to inform
the person of the rights which accrue under the Social Security Act and the employee
contribution rates applicable to the program. The cost of the referendum must be borne
by the governmental subdivision. The director, on receiving satisfactory evidence that
the conditions required by section 218 of the Social Security Act have been met, must
so certify to the Secretary of Health and Human Services.
new text end

Sec. 5.

Minnesota Statutes 2004, section 355.02, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Retroactive Social Security coverage. new text end

new text begin An employee or elected official
who elects Social Security coverage under subdivision 4 may obtain retroactive coverage
for the period specified in the modification of the agreement if the individual is employed
by the local governmental subdivision or by the special authority or district on the date of
the modification of the agreement. The employee or elected official must pay an amount
equal to the taxes which would have been imposed on the person by the Federal Insurance
Contributions Act had the service been covered at the time performed. The employing
local governmental subdivision or special authority or district must pay the necessary
employer contributions for the retroactive period. Nothing in this section requires an
employee or elected official to elect retroactive Social Security coverage.
new text end

Sec. 6.

new text begin [355.095] OPTIONAL MEDICARE COVERAGE FOR CERTAIN
PUBLIC EMPLOYEES.
new text end

new text begin new text end

new text begin Subdivision 1. new text end

new text begin Agreement. new text end

new text begin (a) The director, on behalf of the state, its political
subdivisions, and its other governmental employers, is authorized to enter into an
agreement with the Secretary of Health and Human Services to extend the provisions of
United States Code, title 42, section 426, 426-1, and 1395c, to the employees in paragraph
(b) who meet the requirements of United States Code, title 42, section 418(v)(2) and who
do not have coverage by the federal old age, survivors, and disability insurance program
for that employment under any previous modification of the agreement or previous
Medicare referendum.
new text end

new text begin (b) The applicable employees are:
new text end

new text begin (1) employees who are members of one of the retirement plans in section 356.30,
subdivision 3, except clauses (4) and (8), based on continuous employment since March
31, 1986; and
new text end

new text begin (2) employees of a special authority or district who have been continuously
employed by the special authority or district since March 31, 1986.
new text end

new text begin Subd. 2. new text end

new text begin Referendum. new text end

new text begin (a) Each local governmental subdivision or special authority
or district desiring inclusion in the state Social Security agreement under subdivision 1
must request such coverage by submitting a formal resolution to the director, including a
specification therein of the desired starting date for Social Security coverage.
new text end

new text begin (b) The director shall authorize a referendum on the question of extending the
provisions of United States Code, title 42, sections 426, 426-1, and 1395c. The director
shall supervise the referendum in accordance with the requirements of United States Code,
title 42, section 418, on the date or dates set. The cost of the referendum must be borne by
the requesting retirement plan, or the requesting special authority or district. The notice of
the referendum provided to each eligible employee must contain a statement sufficient to
inform the person of the rights available as an employee in Medicare qualified government
employment and the employee contribution rates applicable to the program. The
referendum must permit each eligible employee the opportunity to vote in the referendum
in accordance with the requirements in the Social Security Act. The director, on receiving
satisfactory evidence that the conditions specified in United States Code, title 42, section
418(d)(7) have been met, must so certify to the Secretary of Health and Human Services.
new text end

new text begin Subd. 3. new text end

new text begin Contributions. new text end

new text begin Employers must pay the necessary employer contributions
and make the necessary deductions from salary for employees who elect to participate in
the federal Medicare program under this section and as required by federal law.
new text end

new text begin Subd. 4. new text end

new text begin Retroactive Medicare coverage. new text end

new text begin An individual who obtains Medicare
coverage through the referendum under subdivision 2 may obtain retroactive coverage for
the period specified in the modification of the agreement if employed by the governmental
subdivision or by the special authority or district on the date of the modification of the
agreement. The individual must pay an amount equal to the Medicare taxes which would
have been imposed on the employee had the service been covered at the time performed.
The employing local governmental subdivision or special authority or district must pay
the necessary employer contributions for the retroactive Medicare coverage period.
Nothing in this section shall require an employee or elected official to elect retroactive
Medicare coverage.
new text end

Sec. 7. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 6 are effective the day following final enactment.
new text end

ARTICLE 7

SUPPLEMENTAL RETIREMENT PLAN COVERAGE CHANGES

Section 1.

Minnesota Statutes 2004, section 356.24, subdivision 1, is amended to read:


Subdivision 1.

Restriction; exceptions.

It is unlawful for a school district or other
governmental subdivision or state agency to levy taxes for, or to contribute public funds to
a supplemental pension or deferred compensation plan that is established, maintained,
and operated in addition to a primary pension program for the benefit of the governmental
subdivision employees other than:

(1) to a supplemental pension plan that was established, maintained, and operated
before May 6, 1971;

(2) to a plan that provides solely for group health, hospital, disability, or death
benefits;

(3) to the individual retirement account plan established by chapter 354B;

(4) to a plan that provides solely for severance pay under section 465.72 to a retiring
or terminating employee;

(5) for employees other than personnel employed by the Board of Trustees of the
Minnesota State Colleges and Universities and covered under the Higher Education
Supplemental Retirement Plan under chapter 354C, if the supplemental plan coverage is
provided for in a personnel policy of the public employer or in the collective bargaining
agreement between the public employer and the exclusive representative of public
employees in an appropriate unit, in an amount matching employee contributions on a
dollar for dollar basis, but not to exceed an employer contribution of $2,000 a year per
employee;

(i) to the state of Minnesota deferred compensation plan under section 352.96; or

(ii) in payment of the applicable portion of the contribution made to any investment
eligible under section 403(b) of the Internal Revenue Code, if the employing unit has
complied with any applicable pension plan provisions of the Internal Revenue Code with
respect to the tax-sheltered annuity program during the preceding calendar year;

(6) for personnel employed by the Board of Trustees of the Minnesota State Colleges
and Universities and not covered by clause (5), to the supplemental retirement plan under
chapter 354C, if the supplemental plan coverage is provided for in a personnel policy
or in the collective bargaining agreement of the public employer with the exclusive
representative of the covered employees in an appropriate unit, in an amount matching
employee contributions on a dollar for dollar basis, but not to exceed an employer
contribution of $2,700 a year for each employee;

(7) to a supplemental plan or to a governmental trust to save for postretirement
health care expenses qualified for tax-preferred treatment under the Internal Revenue
Code, if the supplemental plan coverage is provided for in a personnel policy or in the
collective bargaining agreement of a public employer with the exclusive representative of
the covered employees in an appropriate unit;

(8) to the laborer's national industrial pension fund new text beginor to a laborer's local pension
fund
new text endfor the employees of a governmental subdivision who are covered by a collective
bargaining agreement that provides for coverage by that fund and that sets forth a fund
contribution rate, but not to exceed an employer contribution of deleted text begin$2,000deleted text end new text begin$5,000 new text endper year
per employee;

(9) to the plumbers' and pipefitters' national pension fund or to a plumbers' and
pipefitters' local pension fund for the employees of a governmental subdivision who are
covered by a collective bargaining agreement that provides for coverage by that fund
and that sets forth a fund contribution rate, but not to exceed an employer contribution
of deleted text begin$2,000deleted text end new text begin$5,000 new text endper year per employee;

(10) to the International Union of Operating Engineers pension fund for the
employees of a governmental subdivision who are covered by a collective bargaining
agreement that provides for coverage by that fund and that sets forth a fund contribution
rate, but not to exceed an employer contribution of deleted text begin$2,000deleted text end new text begin$5,000 new text endper year per employee;
deleted text begin or
deleted text end

(11) to a supplemental plan organized and operated under the federal Internal
Revenue Code, as amended, that is wholly and solely funded by the employee's
accumulated sick leave, accumulated vacation leave, and accumulated severance paynew text begin; or
new text end

new text begin (12) to the International Association of Machinists national pension fund for the
employees of a governmental subdivision who are covered by a collective bargaining
agreement that provides for coverage by that fund and that sets forth a fund contribution
rate, but not to exceed an employer contribution of $5,000 per year per employee
new text end.

Sec. 2. new text beginEFFECTIVE DATE.
new text end

new text begin Section 1 is effective the day following final enactment.
new text end

ARTICLE 8

RETIREMENT FUND INVESTMENT AUTHORITY CHANGES

Section 1.

Minnesota Statutes 2004, section 69.77, subdivision 9, is amended to read:


Subd. 9.

Local police and paid fire relief association investment authority.

(a) The funds of the association must be invested in securities that are authorized
investments under section 356A.06, subdivision 6 or 7, whichever applies. deleted text beginUp to 75
percent of the market value of the assets of
deleted text end new text beginNotwithstanding any provision of section
356A.06, subdivision 6 or 7 to the contrary,
new text endthe new text beginspecial new text endfund new text beginof the relief association
new text end may be new text beginadditionally new text endinvested innew text begin:
new text end

new text begin (1)new text end open-end investment companies registered under the federal Investment
Company Act of 1940, if the portfolio investments of the investment companies comply
with the type of securities authorized for investment under section 356A.06, subdivision
7
new text begin, up to 75 percent of the market value of the assets of the fund; and
new text end

new text begin (2) domestic government and corporate debt obligations that are not rated in the top
four quality categories by a nationally recognized rating agency, and comparable unrated
securities if the percentage of these assets does not exceed five percent of the total assets
of the special fund or 15 percent of the special fund's nonequity assets, whichever is less,
the special fund's participation is limited to 50 percent of a single offering of the debt
obligations, and the special fund's participation is limited to 25 percent of an issuer's debt
obligations that are not rated in the top four quality categories
new text end. Securities held by the
association before June 2, 1989, that do not meet the requirements of this subdivision may
be retained after that date if they were proper investments for the association on that date.

(b) The governing board of the association may select and appoint investment
agencies to act for and in its behalf or may certify special fund assets for investment by the
State Board of Investment under section 11A.17. The governing board of the association
may certify general fund assets of the relief association for investment by the State Board
of Investment in fixed income pools or in a separately managed account at the discretion
of the State Board of Investment as provided in section 11A.14. The governing board of
the association may select and appoint a qualified private firm to measure management
performance and return on investment, and the firm shall use the formula or formulas
developed by the state board under section 11A.04, clause (11).

Sec. 2.

Minnesota Statutes 2004, section 354A.08, is amended to read:


354A.08 AUTHORIZED INVESTMENTS.

new text begin In addition to investments authorized under section 356A.06, subdivision 7, new text enda
teachers retirement fund association may receive, hold, and dispose ofnew text begin:
new text end

new text begin (1) new text end real estate or personal property acquired by it, whether the acquisition was by
purchase, or any other lawful means, as provided in this chapter or in the association's
articles of incorporationdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (2) domestic government and corporate debt obligations that are not rated in the top
four quality categories by a nationally recognized rating agency, and comparable unrated
securities if the percentage of these assets does not exceed five percent of the total assets
of the pension plan or 15 percent of the pension plan's nonequity assets, whichever is less,
if the pension plan's participation is limited to 50 percent of a single offering of the debt
obligations, and if the pension plan's participation is limited to 25 percent of an issuer's
debt obligations that are not rated in the top four quality categories.
new text end

In addition to other authorized real estate investments, an association may also
invest funds in Minnesota situs nonfarm real estate ownership interests or loans secured
by mortgages or deeds of trust.new text begin The board may also certify assets for investment by the
State Board of Investment as provided under section 11A.17.
new text end

Sec. 3.

Minnesota Statutes 2004, section 354A.28, subdivision 5, is amended to read:


Subd. 5.

Investment.

The assets of the annuity reserve fund must be invested,
reinvested, and retained deleted text beginin the discretion ofdeleted text end new text beginby new text endthe board of trustees of the Minneapolis
Teachers Retirement Fund Association in authorized investments under section deleted text begin11A.24deleted text endnew text begin
356A.06, subdivision 7
new text end
.

Sec. 4.

Minnesota Statutes 2004, section 356.219, subdivision 3, is amended to read:


Subd. 3.

Content of reports.

(a) The report required by subdivision 1 must include
a written statement of the investment policy deleted text beginin effect on June 30, 1997, if that statement
has not been previously submitted
deleted text end. Following that deleted text begindatedeleted text endnew text begin initial reportnew text end, subsequent reports
must include investment policy changes and the effective date of each policy change
rather than a complete statement of investment policy, unless the state auditor requests
submission of a complete current statement. The report must also include the information
required by the following paragraphs, as applicable.

(b) Ifnew text begin, after four years of reporting under this paragraph, the total portfolio time
weighted rate of return, net of all investment related costs and fees, provided by the public
pension plan differs by no more than 0.1 percent from the comparable return for the plan
calculated by the office of the state auditor, and if
new text enda public pension plan has a total market
value of deleted text begin$10,000,000deleted text end new text begin$25,000,000 new text endor more as of the beginning of the calendar year, new text beginand if
the public pension plan's annual audit is performed by the state auditor or by the legislative
auditor,
new text endthe report required by subdivision 1 must include the market value of the total
portfolio and the market value of each deleted text begininvestment account, investment portfolio, ordeleted text end asset
class included in the pension fund as of the beginning of the calendar year and new text beginas of the
end of the calendar year. At the discretion of the state auditor, the public pension plan may
be required to submit the market value of the total portfolio and the market value of each
investment account, investment portfolio, or asset class included in the pension fund
new text endfor
each month, and the amount and date of each injection and withdrawal to the total portfolio
and to each investment account, investment portfolio, or asset class. If deleted text begina public pension
plan once files a report under this paragraph
deleted text endnew text begin the market value of a public pension plan's
fund drops below $25,000,000 in a subsequent year
new text end, it must continue reporting under this
paragraph for any subsequent year in which the public pension plan is not fully invested as
specified in subdivision 1, paragraph (b), deleted text begineven if asset values drop below $10,000,000 in
market value in that subsequent year
deleted text endnew text begin except that if the public pension plan's annual audit
is not performed by the state auditor or legislative auditor, paragraph (c) applies
new text end.

(c) new text beginIf paragraph (b) would apply if the annual audit were provided by the state
auditor or legislative auditor, the report required by subdivision 1 must include the market
value of the total portfolio and the market value of each asset class included in the pension
fund as of the beginning of the calendar year and for each month, and the amount and date
of each injection and withdrawal to the total portfolio and to each investment account,
investment portfolio, or asset class.
new text end

new text begin (d) new text endFor public pension plans to which paragraph (b) new text beginor (c) new text endapplies, the report required
by subdivision 1 must also include a calculation of the total time-weighted rate of return
available from index-matching investments assuming the asset class performance targets
and target asset mix indicated in the written statement of investment policy. The provided
information must include a description of indices used in the analyses and an explanation
of why those indices are appropriate. This paragraph does not apply to any fully invested
plan, as defined by subdivision 1, paragraph (b). Reporting by the State Board of
Investment under this paragraph is limited to information on the Minnesota public pension
plans required to be invested by the State Board of Investment under section 11A.23.

deleted text begin (d)deleted text end new text begin(e) new text endIf a public pension plan has a total market value of less than deleted text begin$10,000,000deleted text end
new text begin $25,000,000 new text endas of the beginning of the calendar year and was never required to file under
paragraph (b)new text begin or (c)new text end, the report required by subdivision 1 must include the amount and
date of each total portfolio injection and withdrawal. In addition, the report must include
the market value of the total portfolio as of the beginning of the calendar year and for
each quarter.

deleted text begin (e)deleted text end new text begin(f) new text endAny public pension plan reporting under paragraph (b) or deleted text begin(d) maydeleted text end new text begin(c) must
new text end include computed time-weighted rates of return with the report, in addition to all other
required information, as applicable. deleted text beginIf these returns are supplied, the individual who
computed
deleted text end new text beginThe chief administrative officer of the public pension plan submitting new text endthe
returns must certifynew text begin, on a form prescribed by the state auditor, new text endthat the returns new text beginhave been
computed by the pension plan's investment performance consultant or custodial bank. The
chief administrative officer of the public pension plan submitting the returns also must
certify that the returns
new text end are net of all costs and fees, including investment management
fees, and that the procedures used to compute the returns are consistent with Bank
Administration Institute studies of investment performance measurement and deleted text beginAssociation
for Investment Management and Research
deleted text end presentation standardsnew text begin set by the Certified
Financial Analyst Institute. If the certifications required under this paragraph are not
provided, the reporting requirements of paragraph (c) apply
new text end.

deleted text begin (f)deleted text end new text begin(g) new text endFor public pension plans reporting under paragraph deleted text begin(d)deleted text endnew text begin (e)new text end, the public pension
plan must retain supporting information specifying the date and amount of each injection
and withdrawal to each investment account and investment portfolio. The public pension
plan must also retain the market value of each investment account and investment
portfolio at the beginning of the calendar year and for each quarter. Information that is
required to be collected and retained for any given year or years under this paragraph
must be submitted to the Office of the State Auditor if the Office of the State Auditor
requests in writing that the information be submitted by a public pension plan or plans,
or be submitted by the State Board of Investment for any plan or plans for which the
State Board of Investment is the investment authority under this section. If the state
auditor requests information under this subdivision, and the public plan fails to comply,
the pension plan is subject to penalties under subdivision 5, unless penalties are waived by
the state auditor under that subdivision.

Sec. 5.

Minnesota Statutes 2004, section 356.219, subdivision 6, is amended to read:


Subd. 6.

Investment disclosure report.

(a) The state auditor shall prepare an annual
report to the legislature on the investment performance of the various public pension plans
subject to this section. The content of the report is specified in paragraphs (b) to deleted text begin(e)deleted text endnew text begin (f)new text end.

(b) For each public pension plan reporting under subdivision 3, paragraph (b), the
state auditor shall deleted text begincompute anddeleted text end report total portfolio and asset class time-weighted rates of
return, net of all investment-related costs and fees.new text begin If the state auditor has required a plan
to submit the market value of the total portfolio and the market value of each investment
account, investment portfolio, or asset class included in the pension fund for each month,
and the amount and date of each injection and withdrawal to the total portfolio and to each
investment account, investment portfolio, or asset class as prescribed under subdivision
3, paragraph (b), the state auditor shall also compute and report total portfolio and asset
class time-weighted rates of return, net of all costs and fees.
new text end

(c) new text beginFor each public pension plan reporting under subdivision 3, paragraph (c), the
state auditor shall compute and report total portfolio and asset class time-weighted rates of
return, net of all costs and fees.
new text end

new text begin (d) new text endFor each public pension plan reporting under subdivision 3, paragraph deleted text begin(d)deleted text endnew text begin (e)new text end,
the state auditor shall compute and report total portfolio time-weighted rates of return, net
of all costs and fees. If the state auditor has requested data for a plan under subdivision 3,
paragraph deleted text begin(f)deleted text endnew text begin (g)new text end, the state auditor may also compute and report asset class time-weighted
rates of return, net of all costs and fees.

deleted text begin (d)deleted text end new text begin(e) new text endThe report by the state auditor must include the information submitted by the
pension plans under subdivision 3, paragraph deleted text begin(c)deleted text endnew text begin (d)new text end, or a synopsis of that information.

deleted text begin (e)deleted text end new text begin(f) new text endThe report by the state auditor may also include a presentation of multiyear
performance, information collected under subdivision 4, and any other information or
analysis deemed appropriate by the state auditor.

Sec. 6.

Minnesota Statutes 2005 Supplement, section 356A.06, subdivision 7, is
amended to read:


Subd. 7.

Expanded list of authorized investment securities.

(a) Authority.
Except to the extent otherwise authorized by law deleted text beginor bylawsdeleted text end, a covered pension plan not
described by subdivision 6, paragraph (a), deleted text beginmaydeleted text end new text beginshall new text endinvest its assets only in accordance
with this subdivision.

(b) Securities generally. The covered pension plan has the authority to purchase,
sell, lend, or exchange the securities specified in paragraphs (c) to deleted text begin(h)deleted text endnew text begin (i)new text end, including
puts and call options and future contracts traded on a contract market regulated by a
governmental agency or by a financial institution regulated by a governmental agency.
These securities may be owned as units in commingled trusts that own the securities
described in paragraphs (c) to deleted text begin(h)deleted text endnew text begin (i), including real estate investment trusts and insurance
company commingled accounts, including separate accounts
new text end.

(c) Government obligations. The covered pension plan may invest funds in
governmental bonds, notes, bills, mortgages, and other evidences of indebtedness
deleted text begin provideddeleted text endnew text begin ifnew text end the issue is backed by the full faith and credit of the issuer or the issue is rated
among the top four quality rating categories by a nationally recognized rating agency. The
obligations in which funds may be invested under this paragraph include guaranteed or
insured issues of (1) the United States, its agencies, its instrumentalities, or organizations
created and regulated by an act of Congress; (2) Canada and its provinces, provided
the principal and interest is payable in United States dollars; (3) the states and their
municipalities, political subdivisions, agencies, or instrumentalities; (4) the International
Bank for Reconstruction and Development, the Inter-American Development Bank, the
Asian Development Bank, the African Development Bank, or any other United States
government sponsored organization of which the United States is a member, provided the
principal and interest is payable in United States dollars.

(d) Corporate obligations. The covered pension plan may invest funds in bonds,
notes, debentures, transportation equipment obligations, or any other longer term
evidences of indebtedness issued or guaranteed by a corporation organized under the laws
of the United States or any state thereof, or the Dominion of Canada or any province
thereof if they conform to the following provisions:

(1) the principal and interest of obligations of corporations incorporated or organized
under the laws of the Dominion of Canada or any province thereof must be payable in
United States dollars; and

(2) obligations must be rated among the top four quality categories by a nationally
recognized rating agency.

(e) Other obligations. (1) The covered pension plan may invest funds in
bankers acceptances, certificates of deposit, deposit notes, commercial paper, mortgage
participation certificates and pools, asset backed securities, repurchase agreements and
reverse repurchase agreements, guaranteed investment contracts, savings accounts, and
guaranty fund certificates, surplus notes, or debentures of domestic mutual insurance
companies if they conform to the following provisions:

(i) bankers acceptances and deposit notes of United States banks are limited to those
issued by banks rated in the highest four quality categories by a nationally recognized
rating agency;

(ii) certificates of deposit are limited to those issued by (A) United States banks and
savings institutions that are rated in the highest four quality categories by a nationally
recognized rating agency or whose certificates of deposit are fully insured by federal
agencies; or (B) credit unions in amounts up to the limit of insurance coverage provided
by the National Credit Union Administration;

(iii) commercial paper is limited to those issued by United States corporations or
their Canadian subsidiaries and rated in the highest two quality categories by a nationally
recognized rating agency;

(iv) mortgage participation or pass through certificates evidencing interests in pools
of first mortgages or trust deeds on improved real estate located in the United States where
the loan to value ratio for each loan as calculated in accordance with section 61A.28,
subdivision 3
, does not exceed 80 percent for fully amortizable residential properties and
in all other respects meets the requirements of section 61A.28, subdivision 3;

(v) collateral for repurchase agreements and reverse repurchase agreements is
limited to letters of credit and securities authorized in this section;

(vi) guaranteed investment contracts are limited to those issued by insurance
companies or banks rated in the top four quality categories by a nationally recognized
rating agency or to alternative guaranteed investment contracts where the underlying
assets comply with the requirements of this subdivision;

(vii) savings accounts are limited to those fully insured by federal agencies; and

(viii) asset backed securities must be rated in the top four quality categories by a
nationally recognized rating agency.

(2) Sections 16A.58, 16C.03, subdivision 4, and 16C.05 do not apply to certificates
of deposit and collateralization agreements executed by the covered pension plan under
clause (1), item (ii).

(3) In addition to investments authorized by clause (1), item (iv), the covered
pension plan may purchase from the Minnesota Housing Finance Agency all or any part of
a pool of residential mortgages, not in default, that has previously been financed by the
issuance of bonds or notes of the agency. The covered pension plan may also enter into
a commitment with the agency, at the time of any issue of bonds or notes, to purchase
at a specified future date, not exceeding 12 years from the date of the issue, the amount
of mortgage loans then outstanding and not in default that have been made or purchased
from the proceeds of the bonds or notes. The covered pension plan may charge reasonable
fees for any such commitment and may agree to purchase the mortgage loans at a price
sufficient to produce a yield to the covered pension plan comparable, in its judgment,
to the yield available on similar mortgage loans at the date of the bonds or notes. The
covered pension plan may also enter into agreements with the agency for the investment
of any portion of the funds of the agency. The agreement must cover the period of the
investment, withdrawal privileges, and any guaranteed rate of return.

(f) Corporate stocks. The covered pension plan may invest funds in stocks or
convertible issues of any corporation organized under the laws of the United States or the
states thereof, any corporation organized under the laws of the Dominion of Canada or its
provinces, or any corporation listed on an exchange regulated by an agency of the United
States or of the Canadian national government, if they conform to the following provisions:

(1) the aggregate value of deleted text begincorporate stockdeleted text end investmentsnew text begin under this paragraph, plus
paragraphs (g) and (k), plus equity investments under paragraphs (h), (i), and (j)
new text end, as
adjusted for realized deleted text beginprofitsdeleted text end new text begingains new text endand losses, must not exceed 85 percent of the market
or book value, whichever is less, of a funddeleted text begin, less the aggregate value of investments
according to paragraph (h)
deleted text end;new text begin and
new text end

(2) investments must not exceed five percent of the total outstanding shares of
any one corporation.

(g) new text beginDeveloped market foreign stocks investments.new text endnew text begin In addition to investments
authorized under paragraph (f), the covered pension fund may invest in foreign stock sold
on an exchange in any developed market country that is included in the Europe, Australia,
and Far East Index.
new text end

new text begin (h) new text end new text begin Commingled or mutual investments. new text end new text begin The covered pension plan may invest
in index funds or mutual funds, including index mutual funds, through bank-sponsored
collective funds and shares of open-end investment companies registered under the
Federal Investment Company Act of 1940, if the investments of the index or of the mutual
fund comply with paragraphs (c) to (j).
new text end

new text begin (i) new text end new text begin Real estate investment trust; related investments. new text end new text begin The covered pension plan
may invest in real estate investment trusts secured by mortgages or deeds of trust and
sold on an exchange, and insurance company commingled accounts, including separate
accounts, of a debt or equity nature.
new text end

new text begin (j) new text endExchange traded funds.The covered pension plan may invest funds in exchange
traded funds, subject to the maximums, the requirements, and the limitations set forth in
deleted text begin paragraph (d), (e), (f), or (h), whichever appliesdeleted text endnew text begin paragraphs (c) to (i), as applicablenew text end.

deleted text begin (h)deleted text endnew text begin (k) new text end Other investments.(1) In addition to the investments authorized in
paragraphs (b) to deleted text begin(g)deleted text endnew text begin (j)new text end, and subject to the provisions in clause (2), the covered pension
plan may invest funds in:

(i) venture capital investment businesses through participation in limited partnerships
and corporations;

(ii) real estate ownership interests or loans secured by mortgages or deeds of trust
through investment in limited partnershipsdeleted text begin,deleted text endnew text begin or new text end bank sponsored collective fundsdeleted text begin, trusts, and
insurance company commingled accounts, including separate accounts
deleted text end;

(iii) regional and mutual funds through bank sponsored collective funds and
open-end investment companies registered under the Federal Investment Company Act of
1940new text begin which do not qualify under paragraph (h)new text end;

(iv) resource investments through limited partnerships, private placements, and
corporations; and

(v) international new text begindebt new text endsecuritiesnew text begin and emerging market equity securitiesnew text end.

(2) The investments authorized in clause (1) must conform to the following
provisions:

(i) the aggregate value of all investments made according to clause (1) may not
exceed deleted text begin35deleted text end new text begin20 new text endpercent of the market value of the fund for which the covered pension
plan is investing;

(ii) there must be at least four unrelated owners of the investment other than the
covered pension plan for investments made under clause (1), item (i), (ii), (iii), or (iv);

(iii) covered pension plan participation in an investment vehicle is limited to 20
percent thereof for investments made under clause (1), item (i), (ii), (iii), or (iv); and

(iv) covered pension plan participation in a limited partnership does not include a
general partnership interest or other interest involving general liability. The covered
pension plan may not engage in any activity as a limited partner which creates general
liability.

Sec. 7. new text beginTRANSITION PROVISION.
new text end

new text begin A covered pension plan with investments that on the day before the effective date
of this section do not comply with section 3 must divest of any assets that are not in
compliance before January 1, 2008.
new text end

Sec. 8. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 5 are effective the day following final enactment.
new text end

ARTICLE 9

MINNEAPOLIS POLICE RELIEF ASSOCIATION CHANGES

Section 1.

Minnesota Statutes 2004, section 423B.07, is amended to read:


423B.07 AUTHORIZED FUND DISBURSEMENTS.

The police pension fund may be used only for the payment of:

(1) service, disability, or dependency pensions;

(2) notwithstanding a contrary provision of section 69.80, the salaries of the elected
members of the board of trustees in an amount not to exceed deleted text beginthreedeleted text end new text beginseven new text endunitsnew text begin for the
president and five units for other elected board members
new text end;

(3) expenses of officers and employees of the association in connection with the
protection of the fund;

(4) expenses of operating and maintaining the association, including the
administrative expenses related to the administration of the insurance plan authorized
in section 423B.08; and

(5) other expenses authorized by section 69.80, or other applicable law.

Sec. 2.

Minnesota Statutes 2005 Supplement, section 423B.09, subdivision 1, is
amended to read:


Subdivision 1.

Minneapolis police; persons entitled to receive pensions.

The
association shall grant pensions payable from the police pension fund in monthly
installments to persons entitled to pensions in the manner and for the following purposes.

(a) An active member or a deferred pensioner who has performed duty as a member
of the police department of the city for five years or more, upon written application after
retiring from duty and reaching at least age 50, is entitled to be paid monthly for life a
service pension. Active members, deferred members, and service pensioners are entitled
to a service pension according to the following schedule:

new text begin A
new text end
new text begin B
new text end
5 years
deleted text begin8.0deleted text end new text begin8.5 new text endunits
new text begin 9.0 units
new text end
6 years
deleted text begin9.6deleted text end new text begin10.1 new text endunits
new text begin 10.6 units
new text end
7 years
deleted text begin11.2deleted text end new text begin11.7 new text endunits
new text begin 12.2 units
new text end
8 years
deleted text begin12.8deleted text end new text begin13.3 new text endunits
new text begin 13.8 units
new text end
9 years
deleted text begin14.4deleted text end new text begin14.9 new text endunits
new text begin 15.4 units
new text end
10 years
deleted text begin16.0deleted text end new text begin16.5 new text endunits
new text begin 17.0 units
new text end
11 years
deleted text begin17.6deleted text end new text begin18.1 new text endunits
new text begin 18.6 units
new text end
12 years
deleted text begin19.2deleted text end new text begin19.7 new text endunits
new text begin 20.2 units
new text end
13 years
deleted text begin20.8deleted text end new text begin21.3 new text endunits
new text begin 21.8 units
new text end
14 years
deleted text begin22.4deleted text end new text begin22.9 new text endunits
new text begin 23.4 units
new text end
15 years
deleted text begin24.0deleted text end new text begin24.5 new text endunits
new text begin 25.0 units
new text end
16 years
deleted text begin25.6deleted text end new text begin26.1 new text endunits
new text begin 26.6 units
new text end
17 years
deleted text begin27.2deleted text end new text begin27.7 new text endunits
new text begin 28.2 units
new text end
18 years
deleted text begin28.8deleted text end new text begin29.3 new text endunits
new text begin 29.8 units
new text end
19 years
deleted text begin30.4deleted text end new text begin30.9 new text endunits
new text begin 31.4 units
new text end
deleted text begin A
deleted text end
deleted text begin B
deleted text end
20 years
34.5 units
35.0 units
21 years
36.1 units
36.6 units
22 years
37.7 units
38.2 units
23 years
39.3 units
39.8 units
24 years
40.9 units
41.4 units
25 years
42.5 units
43.0 units

Column A is applicable until December 31, 2005, and applies retroactively to
January 1, 2005, for a service pensioner who retired before January 1, 2005. Column B
applies on and after January 1, 2006.

Fractional years of service may not be used in computing pensions.

(b) An active member who after five years' service but less than 20 years' service
with the police department of the city, becomes superannuated so as to be permanently
unable to perform the person's assigned duties, is entitled to be paid monthly for life a
superannuation pension equal to four units for five years of service and an additional two
units for each full year of service over five years and less than 20 years.

(c) An active member who is not eligible for a service pension and who, while a
member of the police department of the city, becomes diseased or sustains an injury while
in the service that permanently unfits the member for the performance of police duties is
entitled to be paid monthly for life a pension equal to 34 units while so disabled.

Sec. 3.

new text begin [423B.23] RECOMPUTATION OF DISABLED BENEFIT PROHIBITED.
new text end

new text begin Notwithstanding section 423A.11, the Board of Directors of the Minneapolis Police
Relief Association shall not recompute the disability benefit of a member who became
permanently disabled as the result of a service-related disease or injury. Any prior
recomputation of a disabled member's service-related disability pension must be revoked
upon the member's request and upon the member's signed and sworn agreement to waive
any right to a recomputation of that benefit in the future. Nonservice-related disability
pension benefits that were recomputed as full 25-year service pensions remain in effect.
new text end

Sec. 4. new text beginEFFECTIVE DATE; LOCAL APPROVAL.
new text end

new text begin (a) Section 1 is effective the day after the date of approval by the city council of
the city of Minneapolis and the timely completion by the chief clerical officer of the city
of Minneapolis of compliance with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
new text end

new text begin (b) Section 2 is effective the day after the governing body of the city of Minneapolis
and its chief clerical officer timely complete their compliance with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end

new text begin (c) Section 3 is effective the day after the governing body of the city of Minneapolis
and its chief clerical officer timely complete their compliance with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end

ARTICLE 10

RECODIFICATION OF VARIOUS

STATEWIDE SPECIALTY RETIREMENT PLANS

Section 1.

Minnesota Statutes 2004, section 3A.01, subdivision 1, is amended to read:


Subdivision 1.

Purposes.

new text beginEach of new text endthe terms defined in this sectionnew text begin,new text end for the purposes
of this chapter deleted text beginshall be given deleted text endnew text beginhas new text endthe deleted text beginmeanings deleted text endnew text beginmeaning new text endascribed deleted text beginto themdeleted text end.

Sec. 2.

Minnesota Statutes 2004, section 3A.01, is amended by adding a subdivision to
read:


new text begin Subd. 1a. new text end

new text begin Actuarial equivalent. new text end

new text begin "Actuarial equivalent" means the condition of one
allowance or benefit having an equal actuarial present value to another allowance or
benefit, determined by the actuary retained under section 356.214 as of a given date at a
specified age with each actuarial present value based on the mortality table applicable for
the plan and approved under section 356.215, subdivision 18, and using the applicable
preretirement or postretirement interest rate assumption specified in section 356.215,
subdivision 8
.
new text end

Sec. 3.

Minnesota Statutes 2004, section 3A.01, is amended by adding a subdivision to
read:


new text begin Subd. 1b. new text end

new text begin Average monthly salary. new text end

new text begin "Average monthly salary" means the average
of the member's highest five successive years of salary that was received as a member
of the legislature and upon which the member has made contributions under section
3A.03, subdivision 1, or for which the member of the legislature has made payments for
past service under Minnesota Statutes 2004, section 3A.02, subdivision 2, or has made,
before July 1, 1994, payments in lieu of contributions under Minnesota Statutes 1992,
section 3A.031.
new text end

Sec. 4.

Minnesota Statutes 2004, section 3A.01, is amended by adding a subdivision to
read:


new text begin Subd. 1c. new text end

new text begin Constitutional officer. new text end

new text begin "Constitutional officer" means a person who was
duly elected, qualifies for, and serves as the governor, the lieutenant governor, the attorney
general, the secretary of state, or the state auditor of the state of Minnesota.
new text end

Sec. 5.

Minnesota Statutes 2004, section 3A.01, subdivision 2, is amended to read:


Subd. 2.

Dependent child.

new text begin(a) new text end"Dependent child" means any natural or adopted
child of a deceased member of the legislature or new text begina new text endformer legislator who is under the age
of 18, or who is under the age of 22 and is a full-time student, and whonew text begin,new text end in either casenew text begin,new text end is
unmarried and was actually dependent for more than one-half of support upon deleted text beginsuch deleted text endnew text beginthe
new text end legislator for a period new text beginof new text endat least 90 days immediately deleted text beginprior to deleted text endnew text beginbefore new text endthe legislator's
death. deleted text beginIt
deleted text end

new text begin (b) The term new text endalso includes any child of the member of the legislature or former
legislator new text beginwho was new text endconceived during the lifetime of, and new text beginwho was new text endborn after the death of,
the member or former legislator. deleted text beginThis subdivision shall be retroactive as to any dependent
child under the age of 22 years as of April 1,1975.
deleted text end

Sec. 6.

Minnesota Statutes 2004, section 3A.01, subdivision 6, is amended to read:


Subd. 6.

Director.

"Director" means the executive director of the Minnesota State
Retirement System new text beginwho was appointed under section 352.03, subdivision 5new text end.

Sec. 7.

Minnesota Statutes 2004, section 3A.01, is amended by adding a subdivision to
read:


new text begin Subd. 6b. new text end

new text begin Former legislator. new text end

new text begin "Former legislator" means a legislator who has
ceased to be a member of the legislature for any reason, including, but not limited to, the
expiration of the term for which a member of the legislature was elected or the death
of the member.
new text end

Sec. 8.

Minnesota Statutes 2004, section 3A.01, is amended by adding a subdivision to
read:


new text begin Subd. 6c. new text end

new text begin Member of the legislature. new text end

new text begin "Member of the legislature" means a
person who was a member of the house of representatives or of the senate of the state of
Minnesota who has subscribed to the oath of office after July 1, 1965, and who was first
elected to a legislative office before July 1, 1997, and retained coverage by the plan under
Laws 1997, chapter 233, article 2, section 15.
new text end

Sec. 9.

Minnesota Statutes 2004, section 3A.01, subdivision 8, is amended to read:


Subd. 8.

Normal retirement age.

"Normal retirement age" means the age of deleted text begin60
years with regard to any member of the legislature whose service terminates prior to the
beginning of the 1981 legislative session, and the age of
deleted text end 62 years deleted text beginwith regard to any
member of the legislature whose service terminates after the beginning of the 1981 session
deleted text end.

Sec. 10.

Minnesota Statutes 2004, section 3A.01, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Retirement. new text end

new text begin "Retirement" means the period of time after which a former
legislator is entitled to a retirement allowance.
new text end

Sec. 11.

Minnesota Statutes 2004, section 3A.01, is amended by adding a subdivision
to read:


new text begin Subd. 10. new text end

new text begin Salary. new text end

new text begin (a) "Salary" means the regular compensation payable under law
to a member of the legislature and paid to the person for service as a legislator.
new text end

new text begin (b) The term includes the monthly compensation paid to the member of the
legislature and the per diem payments paid during a regular or special session to the
member of the legislature.
new text end

new text begin (c) The term does not include per diem payments paid to a member of the legislature
other than during the regular or special session; additional compensation attributable to a
leadership position under section 3.099, subdivision 3; living expense payments under
section 3.101; and special session living expense payments under section 3.103.
new text end

Sec. 12.

Minnesota Statutes 2004, section 3A.011, is amended to read:


3A.011 ADMINISTRATION OF PLAN.

The new text beginexecutive director and the board of directors of the new text endMinnesota State Retirement
System shall administer the legislators retirement plan in accordance with new text beginthis chapter
and
new text endchapter 356A.

Sec. 13.

Minnesota Statutes 2004, section 3A.02, subdivision 1, is amended to read:


Subdivision 1.

Qualifications.

(a) A former legislator is entitled, upon written
application to the director, to receive a retirement allowance monthly, if the person:

(1) has new text begineither new text endserved at least six full years, without regard to the application of
section 3A.10, subdivision 2, or has served during all or part of four regular sessions as a
member of the legislature, which service need not be continuous;

(2) has attained the normal retirement age;

(3) has retired as a member of the legislature; and

(4) has made all contributions provided for in section 3A.03, has made payments
for past service under subdivision 2, or has made payments in lieu of contributions under
Minnesota Statutes 1992, section 3A.031, deleted text beginprior to deleted text endnew text beginbefore new text endJuly 1, 1994.

(b) deleted text beginThis paragraph applies to members of the legislature who terminate service as
a legislator before July 1, 1997. For service rendered before the beginning of the 1979
legislative session, but not to exceed eight years of service, the retirement allowance is
an amount equal to five percent per year of service of that member's average monthly
salary. For service in excess of eight years rendered before the beginning of the 1979
legislative session, and for service rendered after the beginning of the 1979 legislative
session,
deleted text end new text beginUnless the former legislator has legislative service before January 1, 1979,new text end the
retirement allowance is an amount equal to 2-1/2 percent per year of service of that
member's average monthly salarydeleted text begin.
deleted text end

deleted text begin (c) This paragraph applies to members of the legislature who terminate service as
a legislator after June 30, 1997. The retirement allowance is an amount equal to the
applicable rate or rates under paragraph (b) per year of service of the member's average
monthly salary
deleted text end new text beginand new text endadjusted for that person on an actuarial equivalent basis to reflect the
change in the postretirement interest rate actuarial assumption under section 356.215,
subdivision 8, from five percent to six percent. The adjustment must be calculated by or,
alternatively, the adjustment procedure must be specified by, the actuary retained deleted text beginby the
Legislative Commission on Pensions and Retirement
deleted text endnew text beginunder section 356.214new text end. The purpose
of this adjustment is to ensure that the total amount of benefits that the actuary predicts
an individual member will receive over the member's lifetime under this paragraph will
be the same as the total amount of benefits the actuary predicts the individual member
would receive over the member's lifetime under the law in effect before enactment of this
paragraph. new text beginIf the former legislator has legislative service before January 1, 1979, the
person's benefit must include the additional benefit amount in effect on January 1,1979,
and adjusted as otherwise provided in this paragraph.
new text end

deleted text begin (d) deleted text endnew text begin(c) new text endThe retirement allowance accrues beginning with the first day of the month
of receipt of the application, but not before age 60, and for the remainder of the former
legislator's life, if the former legislator is not serving as a member of the legislature or as a
constitutional officer deleted text beginor commissioner deleted text endas defined in section deleted text begin352C.021, subdivisions 2 and
3
deleted text endnew text begin3A.01, subdivision 1cnew text end. The annuity does not begin to accrue deleted text beginprior to deleted text endnew text beginbefore the person's
new text end retirement as a legislator. No annuity payment may be made retroactive for more than 180
days before the date new text beginthat new text endthe annuity application is filed with the director.

deleted text begin (e) deleted text endnew text begin(d) new text endAny member who has served during all or part of four regular sessions is
considered to have served eight years as a member of the legislature.

deleted text begin (f) deleted text endnew text begin(e) new text endThe retirement allowance ceases with the last payment that accrued to the
retired legislator during the retired legislator's lifetime, except that the surviving spouse, if
any, is entitled to new text beginreceive new text endthe retirement allowance new text beginof the retired legislator new text endfor the calendar
month in which the retired legislator died.

Sec. 14.

Minnesota Statutes 2004, section 3A.02, subdivision 1b, is amended to read:


Subd. 1b.

Reduced retirement allowance.

(a) Upon separation from service after
the beginning of the 1981 legislative session, a former member of the legislature who has
attained the age set by the board of directors of the Minnesota State Retirement System
and who is otherwise qualified deleted text beginin accordance with deleted text endnew text beginunder new text endsubdivision 1 is entitlednew text begin,new text end upon
making written application on deleted text beginforms supplied deleted text endnew text begina form prescribed new text endby the directornew text begin,new text end to a
new text begin reduced new text endretirement allowance deleted text beginindeleted text endnew text begin. The reduced retirement allowance isnew text end an amount equal
to the retirement allowance specified in subdivision 1new text begin, paragraph (b), that isnew text end reduced so
that the reduced deleted text beginannuity deleted text endnew text beginallowance new text endis the actuarial equivalent of the deleted text beginannuity deleted text endnew text beginallowance
new text end that would be payable if the former member of the legislature deferred receipt of the
deleted text begin annuity deleted text endnew text beginallowance new text endand the deleted text beginannuity deleted text endnew text beginallowance new text endamount deleted text beginwere deleted text endnew text beginwas new text endaugmented at an annual
rate of three percent compounded annually from the date the deleted text beginannuity deleted text endnew text beginallowance new text endbegins to
accrue until age 62.

(b) The age set by the board of directors under paragraph (a) cannot be deleted text beginless deleted text endnew text beginan earlier
age
new text endthan the early retirement age under section 352.116, subdivision 1a.

(c) If there is an actuarial cost to the plan of resetting the early retirement age under
paragraph (a), the retired legislator is required to pay an additional amount to cover the
full actuarial value. The additional amount must be paid in a lump sum within 30 days of
the certification of the amount by the executive director.

(d) The executive director of the Minnesota State Retirement System shall report
to the Legislative Commission on Pensions and Retirement on the utilization of this
provision new text beginannually new text endon or before September 1deleted text begin, 2000deleted text end.

Sec. 15.

Minnesota Statutes 2004, section 3A.02, subdivision 3, is amended to read:


Subd. 3.

Appropriation.

The amounts required for payment of retirement
allowances provided by this section are appropriated annually to the director from the
participation new text beginof the legislators retirement plan new text endin the Minnesota postretirement investment
fund deleted text beginand shalldeleted text endnew text begin. The retirement allowance mustnew text end be paid monthly to the recipients entitled
deleted text begin thereto deleted text endnew text beginto those retirement allowancesnew text end.

Sec. 16.

Minnesota Statutes 2004, section 3A.02, subdivision 4, is amended to read:


Subd. 4.

Deferred annuities augmentation.

(a) The deferred deleted text beginannuity deleted text endnew text beginretirement
allowance
new text endof any former legislator must be augmented as provided herein.

new text begin (b) new text endThe required reserves applicable to the deferred deleted text beginannuity deleted text endnew text beginretirement allowancenew text end,
determined as of the date the benefit begins to accrue using an appropriate mortality table
and an interest assumption of six percent, must be augmented from the first of the month
following new text beginthe new text endtermination of new text beginactive new text endservice, or July 1, 1973, whichever is later, to the
first day of the month in which the deleted text beginannuity deleted text endnew text beginallowance new text endbegins to accrue, at the new text beginfollowing
annually compounded
new text endrate deleted text beginof five percent per annum compounded annually until January
1, 1981, and thereafter at the rate of three percent per annum compounded annually until
January 1 of the year in which the former legislator attains age 55. From that date to the
effective date of retirement, the rate is five percent compounded annually.
deleted text end new text beginor rates:
new text end

new text begin (1) five percent until January 1, 1981;
new text end

new text begin (2) three percent from January 1, 1981, or from the first day of the month following
the termination of active service, whichever is later, until January 1 of the year in which
the former legislator attains age 55; and
new text end

new text begin (3) five percent from the period end date under clause (2) to the effective date of
retirement.
new text end

deleted text begin (b) The retirement allowance of, or the survivor benefit payable on behalf of, a
former member of the legislature who terminated service before July 1, 1997, which is
not first payable until after June 30, 1997, must be increased on an actuarial equivalent
basis to reflect the change in the postretirement interest rate actuarial assumption under
section 356.215, subdivision 8, from five percent to six percent under a calculation
procedure and tables adopted by the board of directors of the Minnesota State Retirement
System and approved by the actuary retained by the Legislative Commission on Pensions
and Retirement.
deleted text end

Sec. 17.

Minnesota Statutes 2004, section 3A.02, subdivision 5, is amended to read:


Subd. 5.

Optional annuities.

(a) The board of directors shall establish an optional
retirement annuity in the form of a joint and survivor annuity and an optional retirement
annuity in the form of a period certain and life thereafter. Except as provided in paragraph
(b), these optional annuity forms must be actuarially equivalent to the normal deleted text beginannuity
deleted text endnew text begin allowance new text endcomputed under this section, plus the actuarial value of any surviving spouse
benefit otherwise potentially payable at the time of retirement under section 3A.04,
subdivision 1
. An individual selecting an optional annuity under this subdivision deleted text beginwaives
deleted text endnew text begin and the person's spouse waive new text endany rights to surviving spouse benefits under section 3A.04,
subdivision 1
.

(b) If a retired legislator selects the joint and survivor annuity option, the retired
legislator must receive a normal single-life deleted text beginannuity deleted text endnew text beginallowance new text endif the designated optional
annuity beneficiary dies before the retired legislator and no reduction may be made in the
annuity to provide for restoration of the normal single-life deleted text beginannuity deleted text endnew text beginallowance new text endin the event
of the death of the designated optional annuity beneficiary.

(c) The surviving spouse of a legislator who has attained at least age 60 and who dies
while a member of the legislature may elect an optional joint and survivor annuity under
paragraph (a), in lieu of surviving spouse benefits under section 3A.04, subdivision 1.

Sec. 18.

Minnesota Statutes 2004, section 3A.03, subdivision 1, is amended to read:


Subdivision 1.

Percentage.

new text begin(a) new text endEvery member of the legislature shall contribute
nine percent of total salarydeleted text begin,deleted text endnew text begin.
new text end

new text begin (b) The contribution must be made new text endby payroll deductiondeleted text begin, to deleted text endnew text beginand must new text endbe paid into
the state treasury and deposited in the general fund. deleted text beginIt shall be the duty of
deleted text end

new text begin (c) new text endThe director deleted text beginto deleted text endnew text beginmust new text endrecord the periodic contributions of each member of the
legislature and new text beginmust new text endcredit deleted text beginsuch deleted text endnew text begineach new text endcontribution to the member's account.

Sec. 19.

Minnesota Statutes 2004, section 3A.03, subdivision 2, is amended to read:


Subd. 2.

Refund.

(a) A former member who has made contributions under
subdivision 1 and who is no longer a member of the legislature is entitled to receive, upon
written application to the executive director on a form prescribed by the executive director,
a refund new text beginfrom the general fund new text endof all contributions credited to the member's account with
interest computed as provided in section 352.22, subdivision 2.

(b) The refund of contributions as provided in paragraph (a) terminates all rights
of a former member of the legislature and the survivors of the former member under
this chapter.

(c) If the former member of the legislature again becomes a member of the
legislature after having taken a refund as provided in paragraph (a), the member deleted text beginmust be
considered
deleted text endnew text beginis new text enda deleted text beginnew deleted text endmember of deleted text beginthis plan deleted text endnew text beginthe unclassified employees retirement program of
the Minnesota State Retirement System
new text end.

new text begin (d) new text endHowever, the member may reinstate the rights and credit for service previously
forfeited new text beginunder this chapter new text endif the member repays all refunds takennew text begin,new text end plus interest at an
annual rate of 8.5 percent compounded annually from the date on which the refund was
taken to the date on which the refund is repaid.

deleted text begin (d) deleted text endnew text begin(e) new text endNo person may be required to apply for or to accept a refund.

Sec. 20.

Minnesota Statutes 2004, section 3A.04, subdivision 1, is amended to read:


Subdivision 1.

Surviving spouse.

new text begin(a) new text endUpon the death of a member of the legislature
while serving as deleted text beginsuch deleted text endnew text begina new text endmember deleted text beginafter June 30, 1973deleted text end, or upon the death of a former member
of the legislature with at least deleted text beginthe number of deleted text endnew text beginsix full new text endyears of service deleted text beginas required by section
3A.02, subdivision 1, clause (1)
deleted text endnew text beginor service in all or part of four regular legislative sessionsnew text end,
the surviving spouse deleted text beginshall be paid deleted text endnew text beginis entitled to new text enda survivor benefitdeleted text begin in the amount of deleted text endnew text begin.
new text end

new text begin (b) The surviving spouse benefit is new text endone-half of the retirement allowance of the
member of the legislature computed as though the member were at least normal retirement
age on the date of death and based upon new text beginthe member's new text endallowable service or new text beginupon new text endeight
yearsnew text begin,new text end whichever is greater. The augmentation provided in section 3A.02, subdivision 4, if
applicable, deleted text beginshall deleted text endnew text beginmust new text endbe applied new text beginfor the period up new text endtonew text begin, and including,new text end the month of death.

new text begin (c) new text endUpon the death of a former legislator receiving a retirement allowance, the
surviving spouse deleted text beginshall be deleted text endnew text beginis new text endentitled to one-half of the amount of the new text beginretirement new text endallowance
being paid to the legislator. deleted text beginSuch
deleted text end

new text begin (d) The surviving spouse new text endbenefit deleted text beginshall be paid during deleted text endnew text beginis payable for new text endthe lifetime
of the surviving spouse.

Sec. 21.

Minnesota Statutes 2004, section 3A.04, subdivision 2, is amended to read:


Subd. 2.

Dependent children.

new text begin(a) new text endUpon the death of a member of the legislature
while serving as a member, or upon the death of a former member of the legislature who
has rendered at least deleted text beginthe number of deleted text endnew text beginsix full new text endyears of service deleted text beginas required by section 3A.02,
subdivision 1
, clause (1)
deleted text endnew text beginor service in all or part of four regular legislative sessions new text endand
who was not receiving a retirement allowance, each dependent child of the member or
former legislator deleted text beginshall be deleted text endnew text beginis new text endentitled to receive a survivor benefit in the following amount:

new text begin (1) for the new text endfirst dependent child, a monthly deleted text beginallowance which equals deleted text endnew text beginbenefit equal to
new text end 25 percent of the monthly retirement allowance of the member of the legislature or new text beginthe
new text end former legislator computed as though the member or new text beginthe new text endformer legislator had attained at
least the normal retirement age on the date of death and based upon the average monthly
salary as of the date of death or as of the date of termination, whichever deleted text beginis applicabledeleted text end
new text begin appliesnew text end, and the new text beginmember's new text endallowable service or eight yearsnew text begin,new text endwhichever is greater;

new text begin (2) new text endfor each additional dependent child, a monthly deleted text beginallowance which equals deleted text endnew text beginbenefit
equal to
new text end12-1/2 percent of the monthly retirement allowance of the member or new text beginthe new text endformer
legislator computed as new text beginprovided new text endin deleted text beginthe case of the first child deleted text endnew text beginclause (1)new text end; deleted text beginbut deleted text endnew text beginand
new text end

new text begin (3) new text endthe total amount paid to the surviving spouse and new text beginto the new text enddependent new text beginchild or
new text end children deleted text beginshalldeleted text end new text beginmay new text endnot exceednew text begin,new text end in any one monthnew text begin,new text end 100 percent of the monthly retirement
allowance of the member or new text beginof the new text endformer legislator computed as new text beginprovided new text endin deleted text beginthe case of
the first child
deleted text endnew text beginclause (1)new text end.

new text begin (b) new text endThe augmentation provided in section 3A.02, subdivision 4, if applicable,
deleted text begin shall be applied deleted text endnew text beginapplies new text endfrom the first day of the month next following the date of new text beginthe
new text end termination of new text beginthe person from new text endservice as a member of the legislature to the month of
new text begin the new text enddeath new text beginof the personnew text end.

new text begin (c) new text endUpon the death of a former legislator who was receiving a retirement allowance,
deleted text begin the deleted text endnew text begina new text endsurviving dependent child deleted text beginshall be deleted text endnew text beginis new text endentitled to the applicable percentage specified
deleted text begin above deleted text endnew text beginin paragraph (a), clause (1) or (2), whichever applies,new text end of the amount of the
allowance which was paid to the former legislator for the month immediately deleted text beginprior to
deleted text endnew text begin before new text endthe date of death new text beginof the former legislatornew text end.

new text begin (d) new text endThe payments for dependent children deleted text beginshall deleted text endnew text beginmust new text endbe made to the surviving spouse
or new text beginto new text endthe guardian of the estate of the dependent children, if there is one.

Sec. 22.

Minnesota Statutes 2004, section 3A.04, subdivision 3, is amended to read:


Subd. 3.

Payment.

The surviving deleted text beginspouse's deleted text endnew text beginspouse new text endand dependent deleted text beginchildren's deleted text endnew text beginchild
or children
new text endsurvivor benefits payable under this section deleted text beginshall be paid deleted text endnew text beginare payable new text endby the
director monthly in the same manner as retirement allowances are authorized to be paid
by this chapter.

Sec. 23.

Minnesota Statutes 2004, section 3A.04, subdivision 4, is amended to read:


Subd. 4.

Death refunds.

new text begin(a) new text endUpon the death of a member of the legislature or
new text begin of a new text endformer legislator who was not receiving a retirement allowancedeleted text begin,deleted text end without new text beginleaving
new text end either a surviving spouse or new text begina new text enddependent new text beginchild or dependent new text endchildren, the last designated
beneficiary named on a form new text beginthat was new text endfiled with the director before the death of the
legislator, or if no designation is filed, the estate of the member or new text beginthe new text endformer legislator,
upon application, deleted text beginshall be deleted text endnew text beginis new text endentitled to a refundnew text begin.
new text end

new text begin (b) The refund is the amount of contributions credited to the person's account new text endplus
interest as provided in section 3A.03, subdivision 2, deleted text beginclause (2) deleted text endnew text beginparagraph (a)new text end.

Sec. 24.

Minnesota Statutes 2004, section 3A.04, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin The survivor benefits and the death refunds authorized by
this section are appropriated to the director from the general fund when they are due and
payable.
new text end

Sec. 25.

Minnesota Statutes 2004, section 3A.05, is amended to read:


3A.05 APPLICATION FOR SURVIVOR BENEFIT.

new text begin (a) new text endApplications for survivor benefits deleted text beginpursuant to deleted text endnew text beginunder new text endsection 3A.04 deleted text beginshall deleted text endnew text beginmust new text endbe
filed with the director by the surviving spouse and dependent new text beginchild or new text endchildren entitled
to benefits deleted text beginpursuant to deleted text endnew text beginunder new text endsection 3A.04, or by the guardian of the estate, if there is
one, of the dependent new text beginchild or new text endchildren.

new text begin (b) new text endSurvivor benefits deleted text beginshall deleted text endaccrue as of the first day of the month following the death
of the member of the legislature or former legislator and payments deleted text beginshall deleted text endcommence as
of the first of the month next following the filing of the application, and deleted text beginshall be deleted text endnew text beginare
new text end retroactive to the date the benefit accruesdeleted text begin; provided, however, that no payment shall be
retroactive for more than
deleted text endnew text beginor the first of the month occurring new text end12 months deleted text beginprior to deleted text endnew text beginbefore new text endthe
month new text beginin which new text endthe application is filed with the directornew text begin, whichever is earliernew text end.

Sec. 26.

Minnesota Statutes 2004, section 3A.07, is amended to read:


3A.07 APPLICATION.

(a) Except as provided in paragraph (b), this chapter applies to members of the
legislature in service after July 1, 1965, who otherwise meet the requirements of this
chapter.

(b) Members of the legislature who were elected for the first time after June 30,
1997, or members of the legislature who were elected before July 1, 1997, and who, after
July 1, 1998, elect not to be members of the plan established by this chapter are covered
by the unclassified employees retirement program governed by chapter 352D.

(c) The post-July 1, 1998, coverage election under paragraph (b) is irrevocable
and must be made on a form prescribed by the director. new text beginThe second chance referendum
election under Laws 2002, chapter 392, article 15, also is irrevocable.
new text end

Sec. 27.

Minnesota Statutes 2004, section 3A.10, subdivision 1, is amended to read:


Subdivision 1.

Service credit for legislative term.

new text begin(a) new text endIn the case of a member of
the house of representativesnew text begin,new text end one full term of office deleted text beginshall deleted text endnew text beginmust new text endbe considered two full years
new text begin of new text endservicenew text begin,new text end notwithstanding the fact that the oath of office deleted text beginmay be deleted text endnew text beginwas new text endtaken on different
days each biennium.

new text begin (b) new text endIn the case of a member of the senate, one full term of office deleted text beginshall deleted text endnew text beginmust new text endbe
considered four full years new text beginof new text endservicenew text begin,new text end notwithstanding the fact that the oath of office deleted text beginmay
be
deleted text endnew text beginwas new text endtaken on different days at the start of each term.

new text begin (c) new text endFor purposes of this chapter, a legislative term deleted text beginshall deleted text endnew text beginmust new text endbe deemed to
commence on January deleted text begin1st deleted text endnew text begin1 new text endand to end on December deleted text begin31st deleted text endnew text begin31new text end.

Sec. 28.

Minnesota Statutes 2004, section 3A.12, is amended to read:


3A.12 COVERAGE BY MORE THAN ONE RETIREMENT SYSTEM OR
ASSOCIATION.

Subdivision 1.

Entitlement to annuity.

new text begin(a) new text endAny legislator who has been deleted text beginan
employee covered by
deleted text endnew text begina member of a retirement plan listed in paragraph (b) is entitled,
when otherwise qualified, to a retirement allowance or annuity from each plan if the total
allowable service in all plans or in any two of these plans totals ten or more years.
new text end

new text begin (b) This section applies to any retirement plan or program administered by new text endthe
Minnesota State Retirement System, or deleted text begina member of deleted text endnew text beginany retirement plan administered
by
new text endthe Public Employees Retirement Associationnew text begin,new text end including the Public Employees
Retirement Association police and fire fund, or the Teachers Retirement Association, or
the Minneapolis employees retirement deleted text beginfund deleted text endnew text beginplannew text end, or the State Patrol retirement deleted text beginfund
deleted text endnew text begin plannew text end, or any other public employee retirement system in the state of Minnesota having a
like provision deleted text beginbut excluding alldeleted text endnew text begin.
new text end

new text begin (c) This section does not apply to new text endother deleted text beginfunds deleted text endnew text beginretirement plans new text endproviding benefits for
police or firefightersdeleted text begin, shall be entitled when qualified to an annuity from each fund if the
total allowable service for which the legislator has credit in all funds or in any two of these
funds totals ten or more years, provided
deleted text endnew text begin.
new text end

new text begin (d) new text endNo portion of the allowable service upon which the retirement annuity from one
deleted text begin fund deleted text endnew text beginplan new text endis based is again used in the computation for benefits from another deleted text beginfund deleted text endnew text beginplannew text end.
The annuity from each deleted text beginfund shall deleted text endnew text beginplan must new text endbe determined by the appropriate provisions
of the lawnew text begin,new text end except that the requirement that a person must have deleted text beginat least ten deleted text endnew text begina minimum
number of
new text end years new text beginof new text endallowable service in the respective system or association deleted text beginshall deleted text endnew text begindoes new text endnot
apply for the purposes of this section deleted text beginprovided deleted text endnew text beginif new text endthe combined service in two or more
of these deleted text beginfundsdeleted text end new text beginplans new text endequals ten or more years. The augmentation of deferred annuities
provided in section 3A.02, subdivision 4, deleted text beginshall apply deleted text endnew text beginapplies new text endto the annuities accruing
deleted text begin hereunder deleted text endnew text beginunder this sectionnew text end.

Subd. 2.

Refund repayment.

deleted text beginAny deleted text endnew text beginA new text endformer legislator who has received a refund as
provided in section 3A.03, subdivision 2, who is a currently contributing member of a
retirement deleted text beginfund deleted text endnew text beginplan new text endspecified in subdivision 1new text begin, paragraph (b)new text end, may repay the refund as
provided in section 3A.03, subdivision 2. deleted text beginAny deleted text endnew text beginA new text endmember of the legislature who has
received a refund from any of the deleted text beginfunds deleted text endnew text beginretirement plans new text endspecified in subdivision 1deleted text begin,deleted text end may
repay the refund to the respective deleted text beginfund deleted text endnew text beginplan new text endunder such terms and conditions consistent
with the law governing deleted text beginsuch fund deleted text endnew text beginthe retirement plan new text endif the law governing deleted text beginsuch fund deleted text endnew text beginthe
plan
new text endpermits the repayment of refunds. If the total amount to be repaid, including principal
and interest exceeds $2,000, repayment maybe made in three equal installments over a
period of 18 months, with new text beginthe new text endinterest accrued during the period of new text beginthe new text endrepayment added
to the final installment.

Sec. 29.

new text begin [352C.001] RETIREMENT PLAN; APPLICATION.
new text end

new text begin (a) The retirement plan applicable to a former constitutional officer who was first
elected to a constitutional office after July 1, 1967, and before July 1, 1997, is the
applicable portions of this chapter and chapter 356 in effect on the date on which the
person terminated active service as a constitutional officer.
new text end

new text begin (b) Nothing in this section or section 30 or 33, subdivision 2, is intended to reduce
the benefits of former constitutional officers or to adversely modify their eligibility for
benefits in effect as of the day before the effective date of this section.
new text end

Sec. 30.

Minnesota Statutes 2004, section 352C.091, subdivision 1, is amended to read:


Subdivision 1.

Administrative agency and standards.

deleted text beginThis chapter deleted text endnew text begin(a) The elected
officers retirement plan
new text endmust be administered by the new text beginboard of directors and the executive
director of the
new text endMinnesota State Retirement System.

new text begin (b) new text endThe elected state officers retirement plan must be administered consistent with
deleted text begin this chapter deleted text endnew text beginthe applicable statutory provisions governing the plan new text endand chapters 356 and
356A.

Sec. 31.

Minnesota Statutes 2004, section 352C.10, is amended to read:


352C.10 BENEFIT ADJUSTMENTS.

Retirement allowances payable to retired constitutional officers deleted text beginpursuant to section
352C.031
deleted text endand surviving spouse benefits payable deleted text beginpursuant to section 352C.04, shall deleted text endnew text beginmust
new text end be adjusted in the same manner, at the same times and in the same amounts as are benefits
payable from the Minnesota postretirement investment fund to retirees of a participating
public pension fund.

Sec. 32.

Minnesota Statutes 2004, section 352D.02, subdivision 1, is amended to read:


Subdivision 1.

Coverage.

(a) Employees enumerated in paragraph (c), clauses (2),
(3), (4), and (6) to (14), if they are in the unclassified service of the state or Metropolitan
Council and are eligible for coverage under the general state employees retirement plan
under chapter 352, are participants in the unclassified plan under this chapter unless the
employee gives notice to the executive director of the Minnesota State Retirement System
within one year following the commencement of employment in the unclassified service
that the employee desires coverage under the general state employees retirement plan.
For the purposes of this chapter, an employee who does not file notice with the executive
director is deemed to have exercised the option to participate in the unclassified plan.

(b) Persons referenced in paragraph (c), deleted text beginclauses (1) and deleted text endnew text beginclause new text end(5), are participants
in the unclassified program under this chapter unless the person deleted text beginisdeleted text end new text beginwas new text endeligible to elect
different coverage under section 3A.07 deleted text beginor 352C.011deleted text end anddeleted text begin, after July 1,1998, electsdeleted text end new text beginelected
new text end retirement coverage by the applicable alternative retirement plan. Persons referenced
in paragraph (c), clause (15), are participants in the unclassified program under this
chapter for judicial employment in excess of the service credit limit in section 490.121,
subdivision 22
.

(c) Enumerated employees and referenced persons are:

(1) the governor, the lieutenant governor, the secretary of state, the state auditor,
and the attorney general;

(2) an employee in the Office of the Governor, Lieutenant Governor, Secretary
of State, State Auditor, Attorney General;

(3) an employee of the State Board of Investment;

(4) the head of a department, division, or agency created by statute in the unclassified
service, an acting department head subsequently appointed to the position, or an employee
enumerated in section 15A.0815 or 15A.083, subdivision 4;

(5) a member of the legislature;

(6) a full-time unclassified employee of the legislature or a commission or agency of
the legislature who is appointed without a limit on the duration of the employment or a
temporary legislative employee having shares in the supplemental retirement fund as a
result of former employment covered by this chapter, whether or not eligible for coverage
under the Minnesota State Retirement System;

(7) a person who is employed in a position established under section 43A.08,
subdivision 1
, clause (3), or in a position authorized under a statute creating or establishing
a department or agency of the state, which is at the deputy or assistant head of department
or agency or director level;

(8) the regional administrator, or executive director of the Metropolitan Council,
general counsel, division directors, operations managers, and other positions as designated
by the council, all of which may not exceed 27 positions at the council and the chair;

(9) the executive director, associate executive director, and not to exceed nine
positions of the Higher Education Services Office in the unclassified service, as designated
by the Higher Education Services Office before January 1, 1992, or subsequently
redesignated with the approval of the board of directors of the Minnesota State Retirement
System, unless the person has elected coverage by the individual retirement account
plan under chapter 354B;

(10) the clerk of the appellate courts appointed under article VI, section 2, of the
Constitution of the state of Minnesota;

(11) the chief executive officers of correctional facilities operated by the Department
of Corrections and of hospitals and nursing homes operated by the Department of Human
Services;

(12) an employee whose principal employment is at the state ceremonial house;

(13) an employee of the Minnesota Educational Computing Corporation;

(14) an employee of the State Lottery who is covered by the managerial plan
established under section 43A.18, subdivision 3; and

(15) a judge who has exceeded the service credit limit in section 490.121,
subdivision 22
.

Sec. 33. new text beginREPEALER; EFFECT ON BENEFIT COVERAGE.
new text end

new text begin Subdivision 1. new text end

new text begin Legislators retirement plan; repealed as obsolete. new text end

new text begin Minnesota
Statutes 2004, sections 3A.01, subdivisions 3, 4, 6a, and 7; 3A.02, subdivision 2; 3A.04,
subdivision 1a; and 3A.09,
new text end new text begin are repealed.
new text end

new text begin Subd. 2. new text end

new text begin Elective state officers retirement plan; repealed as obsolete. new text end

new text begin Minnesota
Statutes 2004, sections 352C.01; 352C.011; 352C.021, subdivisions 1, 2, 3, 4, 5, 6, and
7; 352C.031, subdivisions 1, 2, 4, 5, and 6; 352C.033; 352C.04; 352C.051; 352C.09;
and 352C.091, subdivisions 2 and 3,
new text end

new text begin and Minnesota Statutes 2005 Supplement, section
352C.021, subdivision 1a,
new text end new text begin are repealed.
new text end

Sec. 34. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 33 are effective July 1, 2006.
new text end

ARTICLE 11

JUDGES RETIREMENT PLAN AND

BOARD ON JUDICIAL STANDARDS RECODIFICATION

Section 1.

Minnesota Statutes 2004, section 490.121, subdivision 1, is amended to read:


Subdivision 1.

Scope.

For purposes of sections 490.121 to 490.132, new text beginunless the
context clearly indicates otherwise, each of the
new text endterms defined in this section deleted text beginhave deleted text endnew text beginhas new text endthe
deleted text begin meanings deleted text endnew text beginmeaning new text endgiven deleted text beginthem unless the context clearly indicates otherwise deleted text endnew text beginitnew text end.

Sec. 2.

Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Actuarial equivalent. new text end

new text begin "Actuarial equivalent" means the condition of one
annuity or benefit having an equal actuarial present value as another annuity or benefit,
determined as of a given date with each actuarial present value based on the appropriate
mortality table adopted by the board of directors of the Minnesota State Retirement
System based on the experience of the fund as recommended by the actuary retained
under section 356.214 and approved under section 356.215, subdivision 18, and using the
applicable preretirement or postretirement interest rate assumption specified in section
356.215, subdivision 8.
new text end

Sec. 3.

Minnesota Statutes 2005 Supplement, section 490.121, subdivision 4, is
amended to read:


Subd. 4.

Allowable service.

(a) "Allowable service" means any calendar month,
subject to the service credit limit in subdivision 22, served as a judge at any time, deleted text beginordeleted text endnew text begin during
which the judge received compensation for that service from the state, municipality,
or county, whichever applies, and for which the judge made any required member
contribution. It also includes any month
new text end served as a referee in probate for all referees in
probate who were in office deleted text beginprior todeleted text endnew text begin beforenew text end January 1, 1974.

(b) "Allowable service" also means a period of authorized leave of absence for
which the judge has made a payment in lieu of contributions, not in an amount in excess
of the service credit limit under subdivision 22. To obtain the service credit, the judge
shall pay an amount equal to the normal cost of the judges retirement plan on the date of
return from the leave of absence, as determined in the most recent actuarial report for the
plan filed with the Legislative Commission on Pensions and Retirement, multiplied by the
judge's average monthly salary rate during the authorized leave of absence and multiplied
by the number of months of the authorized leave of absence, plus annual compound
interest at the rate of 8.5 percent from the date of the termination of the leave to the date
on which payment is made. The payment must be made within one year of the date on
which the authorized leave of absence terminated. Service credit for an authorized leave
of absence is in addition to a uniformed service leave under section 490.1211.

new text begin (c) "Allowable service" does not mean service as a retired judge.
new text end

Sec. 4.

Minnesota Statutes 2004, section 490.121, subdivision 6, is amended to read:


Subd. 6.

Annuity.

"Annuity" means the payments new text beginthat are new text endmade each year to an
annuitant from the judges' retirement funddeleted text begin, pursuant to the provisions of deleted text endnew text beginunder new text endsections
490.121 to 490.132.

Sec. 5.

Minnesota Statutes 2004, section 490.121, subdivision 7, is amended to read:


Subd. 7.

Annuitant.

"Annuitant" means a new text beginformer new text endjudge, new text begina new text endsurviving spousenew text begin,new text end or new text begina
new text end dependent child new text beginwho is new text endentitled to new text beginand is receiving new text endan annuity under deleted text beginthe provisions of
deleted text end sections 490.121 to 490.132.

Sec. 6.

Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision
to read:


new text begin Subd. 7a. new text end

new text begin Approved actuary. new text end

new text begin "Approved actuary" means an actuary as defined in
section 356.215, subdivision 1, paragraph (c).
new text end

Sec. 7.

Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision
to read:


new text begin Subd. 7b. new text end

new text begin Court. new text end

new text begin "Court" means any court of this state that is established by the
Minnesota Constitution.
new text end

Sec. 8.

Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision
to read:


new text begin Subd. 7c. new text end

new text begin Dependent surviving child. new text end

new text begin "Dependent surviving child" means any
natural or adopted child of a deceased judge who has not reached the age of 18 years, or
having reached the age of 18, is under age 22 and who is a full-time student throughout
the normal school year, is unmarried, and is actually dependent for more than one-half of
the child's support upon the judge for a period of at least 90 days before the judge's death.
It also includes any natural child of the judge who was born after the death of the judge.
new text end

Sec. 9.

Minnesota Statutes 2004, section 490.121, subdivision 13, is amended to read:


Subd. 13.

Disability.

"Disability" means new text beginthe new text endpermanent inability new text beginof a judge to
continue
new text endto perform the functions of judge by reason of new text begina new text endphysical or mental impairment
resulting from new text begina new text endsickness or new text beginan new text endinjury.

Sec. 10.

Minnesota Statutes 2004, section 490.121, subdivision 14, is amended to read:


Subd. 14.

Disability retirement date.

"Disability retirement date" means the last
day of the first month after new text beginthe date on new text endwhich the governor determines, upon new text beginreceipt of the
new text end voluntary application by the judge or otherwise, that a judge suffers from a disability.

Sec. 11.

Minnesota Statutes 2004, section 490.121, subdivision 15, is amended to read:


Subd. 15.

Disability retirement annuity.

"Disability retirement annuity" means an
annuity to which a judge is entitled under section 490.124, subdivisions 1 and 4new text begin,new text end after new text beginthe
new text end retirement deleted text beginfor reason deleted text endof new text beginthe judge because of a new text enddisability.

Sec. 12.

Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision
to read:


new text begin Subd. 15a. new text end

new text begin Early retirement date. new text end

new text begin "Early retirement date" means the last day of
the month after a judge attains the age of 60 but before the judge reaches the normal
retirement date.
new text end

Sec. 13.

Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision
to read:


new text begin Subd. 15b. new text end

new text begin Early retirement annuity. new text end

new text begin "Early retirement annuity" means an annuity
to which a judge is entitled under section 490.124, subdivisions 1 and 3, upon retirement
by the judge at an early retirement date.
new text end

Sec. 14.

Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision
to read:


new text begin Subd. 21b. new text end

new text begin Judge. new text end

new text begin "Judge" means a judge or a justice of any court as defined
under subdivision 7b.
new text end

Sec. 15.

Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision
to read:


new text begin Subd. 21c. new text end

new text begin Judges' retirement fund; retirement fund; fund. new text end

new text begin "Judges' retirement
fund," "retirement fund," or "fund" means the fund created by section 490.123.
new text end

Sec. 16.

Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision
to read:


new text begin Subd. 21d. new text end

new text begin Mandatory retirement date. new text end

new text begin "Mandatory retirement date" means the
last day of the month in which a judge has attained 70 years of age.
new text end

Sec. 17.

Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision
to read:


new text begin Subd. 21e. new text end

new text begin Normal retirement annuity. new text end

new text begin Except as otherwise provided in sections
490.121 to 490.132, "normal retirement annuity" means an annuity to which a judge is
entitled under section 490.124, subdivision 1, upon retirement on or after the normal
retirement date of the judge.
new text end

Sec. 18.

Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision
to read:


new text begin Subd. 21f. new text end

new text begin Normal retirement date. new text end

new text begin "Normal retirement date" means the last day
of the month in which a judge attains the age of 65.
new text end

Sec. 19.

Minnesota Statutes 2004, section 490.121, subdivision 22, is amended to read:


Subd. 22.

Service credit limit.

"Service credit limit" means the greater of: (1)
24 years of allowable service under new text beginthis new text endchapter deleted text begin490deleted text end; or (2) for judges with allowable
service rendered deleted text beginprior to deleted text endnew text beginbefore new text endJuly 1, 1980, the number of years of allowable service
under chapter 490, which, when multiplied by the percentage listed in section 356.315,
subdivision 7
or 8, whichever is applicable to each year of service, equals 76.8.

Sec. 20.

Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision
to read:


new text begin Subd. 23. new text end

new text begin Surviving spouse. new text end

new text begin "Surviving spouse" means the surviving legally
married spouse of a deceased judge.
new text end

Sec. 21.

Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision
to read:


new text begin Subd. 24. new text end

new text begin Survivor's annuity. new text end

new text begin "Survivor's annuity" means an annuity to which a
surviving spouse or dependent child is entitled under section 490.124, subdivision 9.
new text end

Sec. 22.

Minnesota Statutes 2004, section 490.122, is amended to read:


490.122 ADMINISTRATION OF JUDGES' RETIREMENT.

new text begin Subdivision 1. new text end

new text begin Administration. new text end

The policy-making, management, and
administrative functions governing the operation of the judges' retirement fund and the
administration of deleted text beginsections 490.121 to 490.132 deleted text endnew text beginthis chapter new text endare vested in the board of
directors and executive director of the Minnesota State Retirement System deleted text beginwith suchdeleted text endnew text begin. In
administering the plan and fund, the board and the director have the same
new text end duties, authority,
and responsibility as are provided in chapter 352.

new text begin Subd. 2. new text end

new text begin Inapplicability of certain laws. new text end

Except as otherwise specified, no
provision of chapter 352 applies to the judges' retirement fund or any judge.

new text begin Subd. 3. new text end

new text begin Fiduciary responsibility. new text end

Fiduciary activities deleted text beginof deleted text endnew text beginrelating to new text endthe uniform
new text begin judges' new text endretirement deleted text beginand Survivors' Annuities for Judges deleted text endnew text beginplan new text endmust be undertaken in a
manner consistent with chapter 356A.

Sec. 23.

Minnesota Statutes 2004, section 490.123, subdivision 1, is amended to read:


Subdivision 1.

Fund creation; revenue and authorized disbursements.

new text begin(a) There
is created a special fund to be known as
new text endthe "judges' retirement fundnew text begin.new text end"

new text begin (b) The judges' retirement fund new text endmust be credited with all contributionsdeleted text begin,deleted text endnew text begin;new text end all interest,
new text begin dividends, and other investment proceeds;new text end and all other income authorized by new text beginthis chapter
or other applicable
new text endlaw.

new text begin (c) new text endFrom this fund there are appropriated the payments authorized by sections
490.121 to 490.132, in the amounts and at the times provided, including the necessary and
reasonable expenses of the Minnesota State Retirement System in administering the fund
and the transfers to the Minnesota postretirement investment fund.

Sec. 24.

Minnesota Statutes 2004, section 490.123, subdivision 1a, is amended to read:


Subd. 1a.

Member contribution rates.

(a) A judge who is covered by the federal
Old Age, Survivors, Disability, and Health Insurance Program new text beginand new text endwhose service does not
exceed the service credit limit in section 490.121, subdivision 22, shall contribute to the
fund from each salary payment a sum equal to 8.00 percent of salary.

(b) deleted text beginA judge not so covered whose service does not exceed the service credit limit in
section 490.121, subdivision 22, shall contribute to the fund from each salary payment a
sum equal to 8.15 percent of salary.
deleted text end

deleted text begin (c) deleted text endThe contribution under this subdivision is payable by salary deduction.
new text begin The deduction must be made by the state court administrator under section 352.04,
subdivisions 4, 5, and 8.
new text end

Sec. 25.

Minnesota Statutes 2004, section 490.123, subdivision 1b, is amended to read:


Subd. 1b.

Employer contribution rate.

new text begin(a) new text endThe employer contribution rate to the
fund on behalf of a judge is 20.5 percent of salary deleted text beginanddeleted text endnew text begin. The employer obligationnew text end continues
after a judge exceeds the service credit limit in section 490.121, subdivision 22.

new text begin (b) new text endThe employer contribution must be paid by the state court administrator deleted text beginanddeleted text endnew text begin.
The employer contribution
new text end is payable at the same time as member contributions new text beginare made
new text end under subdivision 1a or new text beginas new text endemployee contributions new text beginare made new text endto the unclassified deleted text beginplan in
deleted text endnew text begin program governed by new text endchapter 352D for judges whose service exceeds the limit in section
490.121, subdivision 22, are remitted.

Sec. 26.

Minnesota Statutes 2004, section 490.123, subdivision 1c, is amended to read:


Subd. 1c.

Additional employer contribution.

deleted text beginIn the event that deleted text endnew text beginIf new text endthe employer
contribution under subdivision 1b and the assets of the judges retirement fund are
insufficient to meet reserve transfers to the Minnesota postretirement investment fund
or payments of survivor benefits deleted text beginbefore July 1, 1993 deleted text endnew text beginin a monthnew text end, the necessary amount
is appropriated from the general fund to the executive director of the Minnesota State
Retirement System, upon new text beginthe new text endcertification new text beginof the required amount new text endby the executive director
to the commissioner of finance.

Sec. 27.

Minnesota Statutes 2004, section 490.123, subdivision 2, is amended to read:


Subd. 2.

Commissioner of finance.

The commissioner of finance deleted text beginshall be deleted text endnew text beginis the new text endex
officio treasurer of the judges' retirement fund deleted text beginand thedeleted text endnew text begin. Thenew text end commissioner's general bond
to the state deleted text beginshall deleted text endnew text beginmust new text endbe deleted text beginso deleted text endconditioned deleted text beginas deleted text endto cover all liability for acting as new text beginthe new text endtreasurer
of deleted text beginthis deleted text endnew text beginthe new text endfund. All deleted text beginmoneys deleted text endnew text beginmoney new text endreceived by the commissioner deleted text beginpursuant to deleted text endnew text beginunder new text endthis
section deleted text beginshall deleted text endnew text beginmust new text endbe set aside in the state treasury to the credit of the judges' retirement
fund. deleted text beginThe commissioner shall transmit monthly to the executive director described in
section 352.03, subdivision 5, a detailed statement of all amounts so received and credited
to the fund. The commissioner shall pay out the fund only upon vouchers signed by said
executive director; provided that vouchers for investment may be signed by the secretary
of the State Board of Investment.
deleted text end

Sec. 28.

Minnesota Statutes 2004, section 490.123, subdivision 3, is amended to read:


Subd. 3.

Investment.

new text begin(a) new text endThe new text beginexecutive new text enddirector deleted text beginreferred to in subdivision 2 deleted text endnew text beginof the
Minnesota State Retirement System
new text endshall, from time to time, certify to the State Board
of Investment such portions of the judges' retirement fund as in the director's judgment
may not be required for immediate use.

new text begin (b) new text endAssets from the judges' retirement fund deleted text beginshall deleted text endnew text beginmust new text endbe transferred to the
Minnesota postretirement investment fund for retirement and disability benefits as
provided in sections11A.18 and 352.119.

new text begin (c) new text endThe State Board of Investment shall thereupon invest and reinvest sums so
transferred, or certified, in such securities as are duly authorized legal investments for such
purposes under section 11A.24new text begin in compliance with sections 356A.04 and 356A.06new text end.

Sec. 29.

Minnesota Statutes 2004, section 490.124, subdivision 1, is amended to read:


Subdivision 1.

Basic retirement annuity.

new text begin(a) new text endExcept as qualified hereinafter from
and after new text beginthe new text endmandatory retirement date, new text beginthe new text endnormal retirement date, new text beginthe new text endearly retirement
date, or one year from the disability retirement date, as the case may be, new text begina retiring judge
is eligible to receive
new text enda retirement annuity deleted text beginshall be payable to a retiring judgedeleted text end from the
judges' retirement fund deleted text beginindeleted text endnew text begin.
new text end

new text begin (b) The retirement annuity isnew text end an amount equal to: (1) the percent specified in section
356.315, subdivision 7, multiplied by the judge's final average compensation new text beginwith that
result then
new text endmultiplied by the number of years and fractions of years of allowable service
rendered deleted text beginprior to deleted text endnew text beginbefore new text endJuly 1, 1980; plus (2) the percent specified in section 356.315,
subdivision 8
, multiplied by the judge's final average compensation new text beginwith that result then
new text end multiplied by the number of years and fractions of years of allowable service rendered
after June 30, 1980.

new text begin (c) new text endService that exceeds the service credit limit in section 490.121, subdivision 22,
must be excluded in calculating the retirement annuity, but new text beginthe new text endcompensation earned new text beginby
the judge
new text endduring this new text beginperiod of judicial new text endservice must be used in determining a judge's final
average compensation and calculating the retirement annuity.

Sec. 30.

Minnesota Statutes 2004, section 490.124, subdivision 2, is amended to read:


Subd. 2.

Minimum service requirementdeleted text begin; extension of termdeleted text end.

deleted text beginNo deleted text endnew text begin(a) Unless section
356.30 applies, a
new text endjudge deleted text beginshall be deleted text endnew text beginis not new text endeligible for an annuity at new text beginthe new text endnormal new text beginretirement date
new text end or new text beginthe new text endearly retirement date if the judge has less than five years of allowable service.

new text begin (b) new text endA judge who deleted text beginshall retire deleted text endnew text beginretires new text endon or, as permitted under sections 490.121 to
490.132, after new text beginthe judge's new text endmandatory retirement date, deleted text beginshall be deleted text endnew text beginis new text endentitled to a proportionate
annuity based upon the allowable service of the judge at new text beginthe new text enddate of retirement.

deleted text begin A judge who was in office on December 31, 1973, and thereafter and who, by the
date on which the current term expires, would not be eligible to retire with full benefits
under statutes in effect on December 31, 1973, may apply to the governor for an extension
to serve up to three additional years, stating the intention of the judge to retire upon
attaining eligibility to receive a retirement allowance. Notwithstanding section 490.125,
the governor shall forthwith make a written order accepting the retirement application,
and extending the term of office of the judge for the period of time, not to exceed three
years, as may be necessary to make the judge eligible for retirement, solely for purposes
of computing benefits hereunder.
deleted text end

Sec. 31.

Minnesota Statutes 2004, section 490.124, subdivision 3, is amended to read:


Subd. 3.

Early new text beginreduced new text endretirement.

The retirement annuity deleted text beginprovided by deleted text endnew text beginunder
new text end subdivision 1 of any judge deleted text beginelecting deleted text endnew text beginwho elects new text endto retire at an early retirement date deleted text beginshall
deleted text endnew text begin must new text endbe reduced by one-half of one percent per month from the retirement date to new text beginthe
new text end normal retirement date.

Sec. 32.

Minnesota Statutes 2004, section 490.124, subdivision 4, is amended to read:


Subd. 4.

Disability retirement.

new text begin (a) When the governor determines that a judge is
disabled under section 490.121, subdivision 13, notice of the governor's determination
must be sent to the judge, to the chief justice of the Supreme Court, to the state court
administrator, and to the executive director of the Minnesota State Retirement System.
new text end

new text begin (b) new text endFrom and after disability retirement date, a disabled judge deleted text beginshall be deleted text endnew text beginis new text endentitled to
continuation of the judge's full salary payable by the judge's employer, as if the judge's
office were not vacated by retirement, for a period of up to one full year, but in no event
beyond the judge's mandatory retirement date. During this yearnew text begin,new text end the judge deleted text beginwill deleted text endnew text beginis entitled
to
new text endearn additional service credit new text beginin the judges' retirement plannew text end. The salary deleted text beginearned will be
deleted text endnew text begin payable to a disabled judge is new text endsubject to retirement deductions and deleted text beginwill deleted text endnew text beginmust new text endbe included
in computing final average compensation new text beginof the judgenew text end. deleted text beginThereafter
deleted text end

new text begin (c) At the conclusion of the year of continued salary following a disability or
upon the judge's mandatory retirement date, whichever is earlier, the disabled judge is
entitled to
new text enda disability retirement annuity computed as provided in subdivision 1 deleted text beginshall be
paid, provided that
deleted text endnew text begin. If the computed retirement annuity is a smaller amount,new text end the judge
deleted text begin shall deleted text endnew text beginis entitled to new text endreceive a minimum annuity of 25 percent of the judge's final average
compensation.

Sec. 33.

Minnesota Statutes 2004, section 490.124, subdivision 5, is amended to read:


Subd. 5.

Deferred benefits.

(a) deleted text beginAny deleted text endnew text beginA new text endbenefit to which a judge is entitled under this
section may be deferred until new text beginthe new text endearly or normal retirement date new text beginor laternew text end, notwithstanding
new text begin the new text endtermination of deleted text beginsuch deleted text endnew text beginthe new text endjudge's service prior thereto.

(b) The retirement annuity of, or the survivor benefit payable on behalf of, a former
judge, who terminated service before July 1, 1997, which is not first payable until after
June 30, 1997, must be increased on an actuarial equivalent basis to reflect the change in
the postretirement interest rate actuarial assumption under section 356.215, subdivision
8
, from five percent to six percent under a calculation procedure and tables adopted by
the board of directors of the Minnesota State Retirement System and approved by the
actuary retained deleted text beginby the Legislative Commission on Pensions and Retirement deleted text endnew text beginunder section
356.214
new text end.

Sec. 34.

Minnesota Statutes 2004, section 490.124, subdivision 8, is amended to read:


Subd. 8.

Exclusive normal retirement benefits.

deleted text beginAny deleted text endnew text begin(a) Except as provided in
paragraph (b), a
new text endjudge who retires after December 31, 1973, deleted text beginshall be deleted text endnew text beginis new text endentitled to a
retirement pension, retirement compensation or other retirement payment under statutes
applicable solely to judges deleted text beginpursuant to deleted text endnew text beginunder new text endthis section onlydeleted text begin, except that any such deleted text endnew text begin.
new text end

new text begin (b) A new text endjudge new text beginwho was new text endin office deleted text beginprior to deleted text endnew text beginbefore new text endJanuary 1, 1974, who retires at or after
normal retirement age may then elect to receive during the judge's lifetime a normal
retirement annuity computed on the basis of retirement compensation provided for such
judge under statutes in effect on December 31, 1973, in lieu of the amount of normal
retirement annuity otherwise computed under sections 490.121 to 490.132.

deleted text begin For purposes of this subdivision, the Conciliation Court of the city of Duluth shall be
deemed to have been a court of record by the statutes in effect on December 31, 1973.
deleted text end

Sec. 35.

Minnesota Statutes 2004, section 490.124, subdivision 9, is amended to read:


Subd. 9.

Survivors' annuity.

new text begin(a) new text endUpon the death of a judge deleted text beginprior to deleted text endnew text beginbefore
new text end retirement, or upon the death of a person who has qualified for an annuity new text beginunder this
section
new text endbut who ceases to be a judge deleted text beginprior to deleted text endnew text beginbefore new text endretirement and new text beginwho new text endhas not received a
refund of contributions deleted text beginpursuant to deleted text endnew text beginunder new text endsubdivision 12, a surviving spouse new text beginis entitled
to,
new text end or, if there be no surviving spouse, dependent children, deleted text beginshall deleted text endnew text beginare entitled to new text endreceive an
annuity, payable monthly, equal new text beginin total new text endto 60 percent of the normal retirement annuity
which would have been payable to the judge or former judge had the date of death been
the normal retirement datedeleted text begin, provided that thedeleted text endnew text begin.
new text end

new text begin (b) The annuity payable to anew text end surviving spouse or new text beginto new text enddependent children deleted text beginshall receive
an annuity
deleted text endnew text beginis an amount new text endof not less than 25 percent of the judge's or new text beginthe new text endformer judge's
final average compensation.

deleted text begin If a judge, whose surviving spouse was not entitled to survivors benefits provided
solely for judges under statutes in effect prior to January 1, 1974, shall have died prior to
retirement on or after May 23, 1973 and before January 1, 1974, a surviving spouse and
dependent children, if any, shall be entitled to survivors benefits as provided hereunder as
if such judge had died on January 1, 1974.
deleted text end

Sec. 36.

Minnesota Statutes 2004, section 490.124, subdivision 10, is amended to read:


Subd. 10.

Prior survivors' benefits; limitation.

new text begin(a) new text endBenefits provided deleted text beginpursuant
to
deleted text end new text beginunder Minnesota Statutes 2004,new text end section 490.102, subdivision 6, or 490.1091, for a
surviving spouse of a retired judge, payable after the death of the judge, deleted text beginshall be deleted text endnew text beginare
new text end limited todeleted text begin:
deleted text end

deleted text begin (a) deleted text endspouses of judges who have retired deleted text beginprior to deleted text endnew text beginbefore new text endJanuary 1, 1974deleted text begin; and deleted text endnew text begin.
new text end

(b) deleted text beginspouses of judges in office on December 31, 1973 and thereafter who elect
to continue contributions pursuant to section 490.102, subdivision 6 or 490.109. The
contributions shall be in addition to contributions pursuant to section 490.123, and upon
retirement the judge may not elect to receive any optional annuity pursuant to subdivision
11 unless the judge and the spouse shall waive any benefits pursuant to section 490.102,
subdivision 6 or 490.1091.
deleted text end

No other judge in office on or after January 1, 1974, deleted text beginshall be deleted text endnew text beginis new text endrequired to contribute
deleted text begin pursuant to deleted text endnew text beginunder Minnesota Statutes 2004,new text end section 490.102, subdivision 6new text begin,new text end or 490.109.

Sec. 37.

Minnesota Statutes 2004, section 490.124, subdivision 11, is amended to read:


Subd. 11.

new text beginLimitation on survivor benefits; new text endoptional annuities.

new text begin(a) new text endNo survivor
or death benefits may be paid in connection with the death of a judge who retires after
December 31, 1973, except as otherwise provided in sections 490.121 to 490.132.

new text begin (b) new text endExcept as provided in subdivision 10, a judge may elect to receive, instead of
the normal retirement annuity, an optional retirement annuity in the form of new text begineither (1) new text endan
annuity payable for a period certain and for life after that period, new text begin(2) new text enda joint and survivor
annuity without reinstatement deleted text beginin the event of deleted text endnew text beginif new text endthe designated beneficiary deleted text beginpredeceasing
deleted text endnew text begin predeceases new text endthe retired judge, or new text begin(3) new text enda joint and survivor annuity with reinstatement deleted text beginin the
event of
deleted text endnew text beginif new text endthe designated beneficiary deleted text beginpredeceasing deleted text endnew text beginpredeceases new text endthe retired judge.

new text begin (c) new text endAn optional retirement annuity must be actuarially equivalent to a single-life
annuity with no term certain and must be established by the board of directors of the
Minnesota State Retirement System. In establishing these optional retirement annuity
forms, the board shall obtain the written recommendation of the actuary retained deleted text beginby
the Legislative Commission on Pensions and Retirement
deleted text endnew text beginunder section 356.214new text end. The
recommendations must be new text beginretained as new text enda part of the permanent records of the board.

Sec. 38.

Minnesota Statutes 2004, section 490.124, subdivision 12, is amended to read:


Subd. 12.

Refund.

(a) A person who ceases to be a judge deleted text beginbut who does not qualify
for a retirement annuity or other benefit under section 490.121
deleted text endis entitled to a refund in
an amount new text beginthat is new text endequal to all new text beginof new text endthe member's employee contributions to the judges'
retirement fund plus interest computed under section 352.22, subdivision 2.

(b) A refund of contributions under paragraph (a) terminates all service credits and
all rights and benefits of the judge and the judge's survivors new text beginunder this chapternew text end.

new text begin (c) new text endA person who becomes a judge again after taking a refund under paragraph
(a) may reinstate the previously terminated new text beginallowable new text endservice deleted text begincredits deleted text endnew text begincreditnew text end, rights, and
benefits by repaying the total amount of the previously received refund. The refund
repayment must include interest on the total amount previously received at an annual rate
of 8.5 percentnew text begin,new text end compounded annuallynew text begin,new text end from the date on which the refund was received
until the date on which the refund is repaid.

Sec. 39.

Minnesota Statutes 2004, section 490.124, subdivision 13, is amended to read:


Subd. 13.

Death refund.

If a judge who has not received other benefits under this
chapter dies and there are no survivor benefits payable under this chapter, a refund plus
interest as provided in subdivision 12 is payable to the last designated beneficiary named
on a form filed with the director before the death of the judge, ornew text begin,new text end if no designation is on
file, deleted text beginthe refund is payable deleted text endto the estate of the deceased judge.

Sec. 40.

Minnesota Statutes 2004, section 490.125, subdivision 1, is amended to read:


Subdivision 1.

Mandatory retirement new text beginagenew text end.

Except as otherwise provided in
sections 490.121 to 490.132, deleted text begineach deleted text endnew text begina new text endjudge shall deleted text beginretire deleted text endnew text beginterminate active service as a judge
new text end on the judge's mandatory retirement date.

Sec. 41.

Minnesota Statutes 2004, section 490.125, subdivision 2, is amended to read:


Subd. 2.

Exception.

deleted text beginExcept as provided by sections 490.025, subdivision 3,
490.102, subdivisions 3 and 3a and 490.12, subdivision 2,
deleted text end Any judge in office on
December 31, 1973 who shall have attained 70 years of age on or prior to such date shall
retire upon the expiration of the term of office of such judge.

Sec. 42.

Minnesota Statutes 2004, section 490.126, as amended by Laws 2005, First
Special Session chapter 8, article 10, section 79, is amended to read:


490.126 PROCEDURES.

Subdivision 1.

Compulsory retirement.

Proceedings for compulsory retirement
of a judge, if necessary, deleted text beginshalldeleted text endnew text begin mustnew text end be conducted in accordance with rules issued by the
Supreme Court deleted text beginpursuant todeleted text endnew text begin undernew text end section deleted text begin490.16deleted text endnew text begin 490A.02new text end.

Subd. 2.

Vacancies.

Any judge may make written application to the governor for
retirement. The governor thereupon shall direct the judge's retirement by written order
which, when filed in the Office of the Secretary of State, deleted text beginshall effectdeleted text endnew text begin effectsnew text end a vacancy in
the office to be filled as provided by law.

Subd. 3.

Application for annuity or refund.

new text beginAn new text endapplication for an annuity or new text begina
new text end refund under sections 490.121 to 490.132 may be made by the new text beginpotential new text endannuitant or by
someone authorized to act for the new text beginpotential new text endannuitant. Every application for an annuity
or refund, deleted text beginwithdeleted text endnew text begin accompanied by anew text end proof of age and new text beginby a record of new text endyears of service
when required, deleted text beginshalldeleted text endnew text begin mustnew text end be submitted to the deleted text begingoverning bodydeleted text endnew text begin executive directornew text end of the
Minnesota State Retirement System in a form prescribed by deleted text beginitdeleted text endnew text begin the directornew text end.

Subd. 4.

Manner of payment.

Unless otherwise specifically provided by statute or
agreed upon by the annuitant and the deleted text begingoverning bodydeleted text endnew text begin board of directorsnew text end of the new text beginMinnesota
new text end state retirement system, annuities payable under sections 490.121 to 490.132 deleted text beginshalldeleted text endnew text begin mustnew text end
be paid in the manner and at the intervals as prescribed by the executive director of the
new text begin Minnesota new text endstate retirement system. The annuity deleted text beginshall ceasedeleted text endnew text begin ceasesnew text end with the last payment
received by the annuitant while living.

Subd. 5.

Exemption from process; no assignment.

The provisions of section
356.401 apply to the judges retirement plan.

Sec. 43.

Minnesota Statutes 2004, section 490.133, is amended to read:


490.133 RETIREMENT; TRANSITION PROVISIONS; TRANSFER TO
COURT OF APPEALS.

new text begin (a) new text endIf a judge to whom or to whose survivors benefits would be payable under
new text begin Minnesota Statutes 2004,new text end sections 490.101 to 490.12, is elected or appointed to the Court
of Appeals, that judge and the judge's survivorsdeleted text begin, shall deleted text endcontinue to be eligible for benefits
under those sections and not under sections 490.121to 490.132.

new text begin (b) new text endIn deleted text beginthat deleted text endnew text beginthe new text endcase new text beginof a judge to whom paragraph (a) appliesnew text end, the service of the
judge in the Court of Appeals deleted text beginshall deleted text endnew text beginmust new text endbe added to the new text beginprior new text endservice as district judge,
probate judge, or judge of any other court of record in determining eligibility and the
compensation of a judge of the Court of Appeals at the time of the judge's death, disability,
or retirement deleted text beginshall be deleted text endnew text beginis new text endthe "compensation allotted to the office" for the purposes of
calculating benefit amounts.

new text begin (c) new text endAll other judges of the Court of Appeals and their survivors deleted text beginshall be deleted text endnew text beginare new text endsubject
to the retirement and survivor's annuity provisions of sections 490.121 to 490.132.

Sec. 44.

new text begin [490A.01] BOARD OF JUDICIAL STANDARDS; ESTABLISHMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; composition. new text end

new text begin The Board on Judicial Standards is
established. The board is a continuation of the board established by Laws 1971, chapter
909, sections 1and 2, as amended.
new text end

new text begin Subd. 2. new text end

new text begin Composition; appointment. new text end

new text begin (a) The board consists of one judge of the
Court of Appeals, three trial court judges, two lawyers who have practiced law in the state
for at least ten years, and four citizens who are not judges, retired judges, or lawyers.
new text end

new text begin (b) All members must be appointed by the governor with the advice and consent of
the senate. Senate confirmation is not required for judicial members.
new text end

new text begin Subd. 3. new text end

new text begin Term maximum; membership termination. new text end

new text begin No member may serve more
than two full four-year terms or their equivalent. Membership terminates if a member
ceases to hold the position that qualified the member for appointment.
new text end

new text begin Subd. 4. new text end

new text begin Member terms; compensation; removal. new text end

new text begin The membership terms,
compensation, removal of members, and filling of vacancies on the board are as provided
in section 15.0575.
new text end

new text begin Subd. 5. new text end

new text begin Executive secretary appointment; salary. new text end

new text begin (a) The board shall appoint
the executive secretary.
new text end

new text begin (b) The salary of the executive secretary of the board is 85 percent of the maximum
salary provided for an administrative law judge under section 15A.083, subdivision 6a.
new text end

Sec. 45.

new text begin [490A.02] JUDICIAL STANDARDS BOARD; POWERS.
new text end

new text begin Subdivision 1. new text end

new text begin Judicial disqualification. new text end

new text begin A judge is disqualified from acting as a
judge, without a loss of salary, while there is pending an indictment or any information
charging the judge with a crime that is punishable as a felony under either Minnesota law
or federal law, or while there is pending a recommendation to the Supreme Court by the
Board on Judicial Standards for the judge's removal or retirement.
new text end

new text begin Subd. 2. new text end

new text begin Judicial suspension. new text end

new text begin On receipt of a recommendation of the Board on
Judicial Standards or on its own motion, the Supreme Court may suspend a judge from
office without salary when the judge pleads guilty to or no contest to or is found guilty of
a crime that is punishable as a felony under either Minnesota law or federal law or any
other crime that involves moral turpitude. If the conviction is reversed, the suspension
terminates and the judge must be paid a salary for the period of suspension. If the judge
is suspended and the conviction becomes final, the Supreme Court shall remove the
judge from office.
new text end

new text begin Subd. 3. new text end

new text begin Judicial disability. new text end

new text begin On receipt of a recommendation of the Board on
Judicial Standards, the Supreme Court may retire a judge for a disability that the court
determines seriously interferes with the performance of the judge's duties and is or is
likely to become permanent, and censure or remove a judge for an action or inaction that
may constitute persistent failure to perform the judge's duties, incompetence in performing
the judge's duties, habitual intemperance, or conduct prejudicial to the administration of
justice that brings the judicial office into disrepute.
new text end

new text begin Subd. 4. new text end

new text begin Authority to reopen matters. new text end

new text begin The board is specifically empowered to
reopen any matter wherein any information or evidence was previously precluded by a
statute of limitations or by a previously existing provision of time limitation.
new text end

new text begin Subd. 5. new text end

new text begin Retirement status. new text end

new text begin (a) A judge who is retired by the Supreme Court must
be considered to have retired voluntarily.
new text end

new text begin (b) This section and section 490A.01 must not affect the right of a judge who
is suspended, retired, or removed hereunder from qualifying for any pension or other
retirement benefits to which the judge would otherwise be entitled by law to receive.
new text end

new text begin Subd. 6. new text end

new text begin Eligibility for judicial office; practice law. new text end

new text begin A judge removed by the
Supreme Court is ineligible for any future service in a judicial office. The question of
the right of a removed judge to practice law in this state must be referred to the proper
authority for review.
new text end

new text begin Subd. 7. new text end

new text begin Supreme court rules. new text end

new text begin The Supreme Court shall make rules to implement
this section.
new text end

Sec. 46.

new text begin [490A.03] PERSONS AFFECTED.
new text end

new text begin The provisions of sections 490A.01 and 490A.02 apply to all judges, judicial
officers, and referees.
new text end

Sec. 47.

Minnesota Statutes 2004, section 525.05, is amended to read:


525.05 JUDGE OR REFEREE; GROUNDS FOR DISQUALIFICATION.

The following shall be grounds for disqualification of any judge or referee from
acting in any matter: (1) That the judge or the judge's spouse or any of either of their kin
nearer than first cousin is interested as representative, heir, devisee, legatee, ward, or
creditor in the estate involved therein; (2) that it involves the validity or interpretation of a
will drawn or witnessed by the judge; (3) that the judge may be a necessary witness in the
matter; (4) that it involves a property right in respect to which the judge has been engaged
or is engaged as an attorney; or (5) that the judge was engaged in a joint enterprise for
profit with the decedent at the time of death or that the judge is then engaged in a joint
enterprise for profit with any person interested in the matter as representative, heir,
devisee, legatee, ward, or creditor. When grounds for disqualification exist, the judge may,
and upon proper petition of any person interested in the estate must, request another
judge or a judge who has retired deleted text beginas provided in section 490.12, subdivision 2,deleted text end to act in
the judge's stead in the matter.

Sec. 48. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin (a) In Minnesota Statutes, chapters 352, 352D, 355, 356,and 487, the revisor of
statutes shall change references to "sections 490.121 to 490.132" to "chapter 490."
new text end

new text begin (b) In Minnesota Statutes, chapter 490, the revisor of statutes shall change references
to "sections 490.121 to 490.132" to "this chapter."
new text end

new text begin (c) In Minnesota Statutes, sections 175A.01, subdivision 4, and 271.01, subdivision
1
, the revisor of statutes shall change references to "sections 490.15 and 490.16" to
"sections 490A.01 and 490A.02."
new text end

Sec. 49. new text beginREPEALER.
new text end

new text begin Subdivision 1. new text end

new text begin Judicial retirement plans; repealed as obsolete. new text end

new text begin Minnesota
Statutes 2004, sections 490.021; 490.025; 490.101; 490.102; 490.103; 490.105; 490.106;
490.107; 490.108; 490.109; 490.1091; 490.12; 490.121, subdivisions 2, 3, 5, 8, 9, 10, 11,
12, 16, 17, 18, and 19; 490.124, subdivision 6; and 490.132,
new text end

new text begin and Minnesota Statutes 2005
Supplement, section 490.121, subdivision 20,
new text end new text begin are repealed.
new text end

new text begin Subd. 2. new text end

new text begin Judicial standards board; repealed for relocation as Minnesota
Statutes, chapter 490A.
new text end

new text begin Minnesota Statutes 2004, sections 490.15; 490.16; and 490.18, new text end new text begin
are repealed.
new text end

new text begin Subd. 3. new text end

new text begin Uniform judicial retirement plan; no benefit diminishment intended;
procedure.
new text end

new text begin Sections 1 to 48 and subdivision 1 are not intended to reduce or increase the
entitlement of active, deferred, or retired judges to retirement annuities or benefits as of
July 1, 2006, as reflected in the records of the Minnesota State Retirement System. If the
executive director of the Minnesota State Retirement System determines that any provision
of sections 1 to 48 and subdivision 1 functions to modify, impair, or diminish the retirement
annuity or benefit entitlement of any judge that had accrued or earned before July 1,
2006, the executive director shall certify that determination and make a recommendation
as to the required legislative correction to the chair of the Legislative Commission on
Pensions and Retirement, the chair of the senate State and Local Government Operations
Committee, the chair of the house Governmental Operations and Veterans Affairs Policy
Committee, and the executive director of the Legislative Commission on Pensions and
Retirement on or before the October 1 next following that determination.
new text end

Sec. 50. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 49 are effective July 1, 2006.
new text end

ARTICLE 12

JUDGES RETIREMENT PLAN AND RELATED CHANGES

Section 1.

Minnesota Statutes 2004, section 3A.02, subdivision 5, is amended to read:


Subd. 5.

Optional annuities.

(a) The board of directors shall establish an optional
retirement annuity in the form of a joint and survivor annuity and an optional retirement
annuity in the form of a period certain and life thereafter. Except as provided in paragraph
(b), these optional annuity forms must be actuarially equivalent to the normal annuity
computed under this section, plus the actuarial value of any surviving spouse benefit
otherwise potentially payable at the time of retirement under section 3A.04, subdivision 1.
An individual selecting an optional annuity under this subdivision waives any rights to
surviving spouse benefits under section 3A.04, subdivision 1.

(b) If a retired legislator selects the joint and survivor annuity option, the retired
legislator must receive a normal single-life annuity if the designated optional annuity
beneficiary dies before the retired legislator and no reduction may be made in the annuity
to provide for restoration of the normal single-life annuity in the event of the death of the
designated optional annuity beneficiary.

(c) The surviving spouse of a legislator who has attained at least age deleted text begin60deleted text end new text begin55new text end and who
dies while a member of the legislature may elect an optional joint and survivor annuity
under paragraph (a), in lieu of surviving spouse benefits under section 3A.04, subdivision
1
.

Sec. 2.

Minnesota Statutes 2004, section 3A.04, subdivision 1, is amended to read:


Subdivision 1.

Surviving spouse.

Upon the death of a member of the legislature
while serving as such member after June 30, 1973, or upon the death of a former member
of the legislature with at least the number of years of service as required by section 3A.02,
subdivision 1
, clause (1), new text beginif section 3A.02, subdivision 5, paragraph (c), does not apply,
new text end the surviving spouse shall be paid a survivor benefit in the amount of one-half of the
retirement allowance of the member of the legislature computed as though the member
were at least normal retirement age on the date of death and based upon allowable
service or eight years whichever is greater. The augmentation provided in section 3A.02,
subdivision 4
, if applicable, shall be applied to the month of death. Upon the death of a
former legislator receiving a retirement allowance, the surviving spouse shall be entitled
to one-half of the amount of the allowance being paid to the legislator. Such benefit shall
be paid during the lifetime of the surviving spouse.

Sec. 3.

Minnesota Statutes 2004, section 490.124, subdivision 9, is amended to read:


Subd. 9.

Survivors' annuity.

new text begin(a) new text endUpon the death of a judge prior to retirement, or
upon the death of a person who has qualified for an annuity but who ceases to be a judge
prior to retirement and has not received a refund of contributions pursuant to subdivision
12, a surviving spouse or, if there be no surviving spouse, dependent children, shall
receive an annuity, payable monthly, equal to 60 percent of the normal retirement annuity
which would have been payable to the judge or former judge had the date of death been
the normal retirement date, provided that the surviving spouse or dependent children
shall receive an annuity of not less than 25 percent of the judge's or former judge's final
average compensation.

new text begin(b) The surviving spouse of a deceased judge may elect to receive, in lieu of the
annuity under paragraph (a), an annuity equal to the 100 percent joint and survivor annuity
which the judge or former judge could have qualified for on the date of death.
new text end

new text begin(c) new text endIf a judge, whose surviving spouse was not entitled to survivors benefits provided
solely for judges under statutes in effect prior to January 1, 1974, shall have died prior to
retirement on or after May 23, 1973new text begin, new text end and before January 1, 1974, a surviving spouse and
dependent children, if any, shall be entitled to survivors benefits as provided hereunder as
if such judge had died on January 1, 1974.

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

new text begin (a) Sections 1 and 2 are effective the day following final enactment.
new text end

new text begin (b) Section 3 is effective January 1, 2006, and applies to the surviving spouse of
any judge who died on or after that date.
new text end

ARTICLE 13

VOLUNTEER FIRE RELIEF ASSOCIATION CHANGES

Section 1.

Minnesota Statutes 2004, section 6.72, is amended to read:


6.72 STATE AUDITOR; REPORT TO LEGISLATURE ON VOLUNTEER
FIREFIGHTERS' RELIEF ASSOCIATIONS.

Subdivision 1.

Reporting requirements.

deleted text beginCommencing November 15, 1981, and
every two years thereafter
deleted text endnew text begin (a) Annuallynew text end, the state auditor shall report to the legislature on
the general financial condition of the various volunteer firefighters' relief associations in
the state as of December 31 of the year preceding the filing of the report.

new text begin (b) new text endTwo copies of the report shall be filed with the executive director of the
Legislative Commission on Pensions and Retirement and ten copies of the report shall be
filed with the director of the Legislative Reference Library.

Subd. 2.

Contents of report.

The report deleted text beginshalldeleted text endnew text begin mustnew text end include deleted text beginthe aggregate totalsdeleted text end for
all volunteer firefighters' relief associations directly associated with the municipal fire
departments and all volunteer firefighters' relief associations subsidiary to independent
nonprofit firefighting corporations, the deleted text beginaggregate totals by the various benefit types and the
individual results for each volunteer firefighters' relief association listed by various benefit
types specified in subdivision 3. The
deleted text end following deleted text beginitems shall be reported in each instancedeleted text end:

(1) amount of accrued liability,

(2) amount of new text beginthe new text endassetsnew text begin of the special fundnew text end,

(3) amount of surplus or unfunded accrued liability,

(4) funding ratio,

(5) amount of annual accruing liability or normal cost,

(6) amount of annual required contribution to amortize the unfunded accrued
liability,

(7) amount of total required contribution,

(8) amount of fire state aidnew text begin and supplemental fire state aidnew text end,

(9) amount of any municipal contributions,

(10) amount of administrative expenses,

(11) amount of service pension disbursements,

(12) amount of other retirement benefit disbursements,

(13) number of active members,

(14) number of retired members,

(15) number of deferred members,

(16) amount of fidelity bond of secretary and treasurer,

(17) amount of lump sum or monthly service pension accrued per year of service
credit,

(18) minimum retirement age required for commencement of a service pension,

(19) minimum years of active service credit required for commencement of service
pension,

(20) minimum years of active membership credit required for commencement of
service pension,new text begin and
new text end

(21) type and amount of other retirement benefits.

Subd. 3.

deleted text beginBenefit categoriesdeleted text endnew text begin Report formatnew text end.

deleted text beginFor purposes of compilingdeleted text end The report
required by this sectiondeleted text begin, the various benefit types shall be as follows:
deleted text end

deleted text begin (1) volunteer firefighters' relief associations paying a lump sum service pension of:
deleted text end

deleted text begin (i) less than $50 per year of service,
deleted text end

deleted text begin (ii) $50 or more, but less than $100 per year of service,
deleted text end

deleted text begin (iii) $100 or more, but less than $200 per year of service,
deleted text end

deleted text begin (iv) $200 or more, but less than $300 per year of service,
deleted text end

deleted text begin (v) $300 or more per year of service;
deleted text end

deleted text begin (2) volunteer firefighters' relief associations paying a monthly benefit service
pension of:
deleted text end

deleted text begin (i) less than $2 per month per year of service,
deleted text end

deleted text begin (ii) $2 or more per month per year of service;
deleted text end

deleted text begin (3) volunteer firefighters' relief associations paying a defined contribution service
pension;
deleted text end

deleted text begin (4) volunteer firefighters' relief associations paying no service pensiondeleted text endnew text begin must be
organized in a manner that the state auditor determines to provide fair representation of
the condition of the various volunteer firefighters' relief associations
new text end.

Sec. 2.

Minnesota Statutes 2004, section 424A.001, is amended by adding a
subdivision to read:


new text begin Subd. 10. new text end

new text begin Volunteer firefighter. new text end

new text begin "Volunteer firefighter" means a person who:
new text end

new text begin (1) was a member of the applicable fire department or the firefighting corporation
and a member of the relief association on July 1, 2006; or
new text end

new text begin (2) became a member of the applicable fire department or the firefighting corporation
and is eligible for membership in the applicable relief association after June 30, 2006, and
new text end

new text begin (i) is engaged in providing emergency response services or delivering fire education
or prevention services as a member of a municipal fire department, a joint powers entity
fire department, or an independent nonprofit firefighting corporation;
new text end

new text begin (ii) is trained in or is qualified to provide fire suppression duties or to provide fire
prevention duties under subdivision 8; and
new text end

new text begin (iii) meets any other minimum firefighter and service standards established by the
fire department or firefighting corporation or specified in the articles of incorporation or
bylaws of the relief association.
new text end

Sec. 3.

Minnesota Statutes 2004, section 424A.02, subdivision 8b, is amended to read:


Subd. 8b.

Transfer to individual retirement account.

A relief association that is
a qualified pension plan under section 401(a) of the federal Internal Revenue Code, as
amended, and that provides a lump sum service pension, at the written request of deleted text beginadeleted text end new text beginthe
applicable
new text endretiring membernew text begin or, following the death of the active member, at the written
request of the deceased member's surviving spouse
new text end, may directly transfer the eligible
member's lump sum pension new text beginor the death, funeral, or survivor benefit attributable to the
member, whichever applies,
new text endto the deleted text beginmember'sdeleted text end new text beginrequesting person's new text endindividual retirement
account under section 408(a) of the federal Internal Revenue Code, as amended.

Sec. 4.

Minnesota Statutes 2004, section 424A.05, subdivision 3, is amended to read:


Subd. 3.

Authorized disbursements from the special fund.

(a) Disbursements
from the special fund are not permitted to be made for any purpose other than one of
the following:

(1) for the payment of service pensions to retired members of the relief association if
authorized and paid deleted text beginpursuant todeleted text endnew text begin undernew text end law and the bylaws governing the relief association;

(2) for the payment of temporary or permanent disability benefits to disabled
members of the relief association if authorized and paid pursuant to law and specified in
amount in the bylaws governing the relief association;

(3) for the payment of survivor benefits to surviving spouses and surviving children,
or if none, to designated beneficiaries, of deceased members of the relief associationnew text begin,
and if survivors and if no designated beneficiary, for the payment of a death benefit to
the estate of the deceased active firefighter,
new text end if authorized by and paid pursuant to law and
specified in amount in the bylaws governing the relief association;

(4) for the payment of any funeral benefits to the surviving spouse, or if no surviving
spouse, the estate, of the deceased member of the relief association if authorized by law
and specified in amount in the bylaws governing the relief association;

(5) for the payment of the fees, dues and assessments to the Minnesota State Fire
Department Association, to the Minnesota Area Relief Association Coalition, and to
the state Volunteer Firefighters Benefit Association in order to entitle relief association
members to membership in and the benefits of these associations or organizations; and

(6) for the payment of administrative expenses of the relief association as authorized
deleted text begin pursuant todeleted text endnew text begin undernew text end section 69.80.

(b) For purposes of this chapter, a designated beneficiary must be a natural person.

Sec. 5.

Minnesota Statutes 2004, section 424A.10, is amended to read:


424A.10 STATE SUPPLEMENTAL BENEFIT; VOLUNTEER
FIREFIGHTERS.

Subdivision 1.

deleted text beginDefinitiondeleted text endnew text begin Definitionsnew text end.

For purposes of this sectiondeleted text begin,deleted text endnew text begin:new text end

new text begin (1) new text end"qualified recipient" means an individual who receives a lump sum distribution of
pension or retirement benefits from a firefighters' relief association for service performed
as a volunteer firefighternew text begin;
new text end

new text begin (2) "survivor of a deceased active or deferred volunteer firefighter" means the legally
married spouse of a deceased volunteer firefighter, or, if none, the surviving minor child or
minor children of a deceased volunteer firefighter;
new text end

new text begin (3) "active volunteer firefighter" means a person who regularly renders fire
suppression service for a municipal fire department or an independent nonprofit firefighting
corporation, who has met the statutory and other requirements for relief association
membership, and who has been a fully qualified member of the relief association for
at least one month; and
new text end

new text begin (4) "deferred volunteer firefighter" means a former active volunteer firefighter who
terminated active firefighting service, has sufficient service credit from the applicable
relief association to be entitled to a service pension, but has not applied for or has not
received the service pension
new text end.

Subd. 2.

Payment of supplemental benefit.

new text begin(a) new text endUpon the payment by a firefighters'
relief association of a lump sum distribution to a qualified recipient, the association must
pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the
contrary, the relief association may pay the supplemental benefit out of its special fund.
The amount of this benefit equals ten percent of the regular lump sum distribution that
is paid on the basis of service as a volunteer firefighter. In no case may the amount of
the supplemental benefit exceed $1,000.

new text begin (b) Upon the payment by a relief association of a lump sum survivor benefit or
funeral benefit to a survivor of a deceased active volunteer firefighter or of a deceased
deferred volunteer firefighter, the association may pay a supplemental survivor benefit
to the survivor of the deceased active or deferred volunteer firefighter from the special
fund of the relief association if its articles of incorporation or bylaws so provide. The
amount of the supplemental survivor benefit is 20 percent of the survivor benefit or funeral
benefit, but not to exceed $2,000.
new text end

Subd. 3.

State reimbursement.

new text begin(a) new text endBy February 15 of each year, thenew text begin treasurer of
the
new text end relief association shall apply to the commissioner of revenue for state reimbursement
of the amount of supplemental benefits paid under subdivision 2 during the preceding
calendar year. By March 15 the commissioner shall reimburse the relief association for the
amount of the supplemental benefits paid to qualified recipients.

new text begin (b) new text endThe commissioner of revenue shall prescribe the form of and supporting
information that must be supplied as part of the application for state reimbursement.

new text begin (c) new text endThe reimbursement payment must be deposited in the special fund of the relief
association.

new text begin (d) new text endA sum sufficient to make the payments is appropriated from the general fund
to the commissioner of revenue.

Subd. 4.

In lieu of income tax exclusion.

new text begin(a)new text end The supplemental benefit provided
by this section is in lieu of the state income tax exclusion for lump sum distributions of
retirement benefits paid to volunteer firefighters.

new text begin (b) new text endIf the law is modified to exclude or exempt volunteer firefighters' lump sum
distributions from state income taxation, the supplemental benefits under this section
may no longer be paid beginning with the first calendar year in which the exclusion or
exemption is effective. This subdivision does not apply to exemption of all or part of a
lump sum distribution under section 290.032 or 290.0802.

new text begin Subd. 5. new text end

new text begin Retroactive reimbursement in certain instances. new text end

new text begin A supplemental
survivor or funeral benefit may be paid by a relief association for the death of an active
volunteer firefighter or of a deferred volunteer firefighter that occurred on or after August
1, 2005, if the relief association articles of incorporation or bylaws so provide for a
supplemental survivor benefit and for retroactivity.
new text end

Sec. 6. new text beginRANDALL FIREMEN'S RELIEF ASSOCIATION; REVISED BENEFIT
FOR SPOUSE OF DECEASED FIREFIGHTER.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin This section applies to a surviving spouse of a person
who:
new text end

new text begin (1) was born on June 21, 1973;
new text end

new text begin (2) as a member of the Randall Firemen's Relief Association provided one year and
ten months of service to the associated fire department and had one year of service credit
in the association on the date of death; and
new text end

new text begin (3) was killed in a construction accident on October 28, 2005.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility for benefit. new text end

new text begin Notwithstanding any law to the contrary, the
eligible person described in subdivision 1 is entitled to receive a survivor benefit from the
Randall Firemen's Relief Association benefit plan as revised in November 2005, not to
exceed the survivor benefit amount that would be applicable if the firefighter had lived
until a day after the effective date of the increased minimum surviving spouse benefit
approved by the Randall City Council in November 2005, consistent with Minnesota
Statutes, section 424A.02, subdivision 9.
new text end

new text begin Subd. 3. new text end

new text begin Restrictions. new text end

new text begin This section does not authorize payment of more than
a single survivor benefit to the eligible individual specified in subdivision 1. If a
survivor benefit has been paid to the eligible individual by the Randall Firemen's Relief
Association, this section authorizes payment to the eligible individual of the difference
between the amount previously paid and the amount payable under the Randall Firemen's
Relief Association benefit plan as revised in November 2005.
new text end

Sec. 7. new text beginEFFECTIVE DATE.
new text end

new text begin (a) Sections 1 and 4 are effective July 1, 2006.
new text end

new text begin (b) Section 2 is effective January 1, 2008.
new text end

new text begin (c) Section 3 is effective the day following final enactment and applies retroactively
to January 1, 2006.
new text end

new text begin (d) Section 6 is effective the day after the date on which the Randall City Council and
the chief clerical office of the city of Randall complete, in a timely manner, compliance
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

ARTICLE 14

ONE PERSON AND SMALL GROUP RETIREMENT PROVISIONS

Section 1. new text beginCORRECTING PLAN COVERAGE ERROR BY PROVIDING A
PUBLIC EMPLOYEES POLICE AND FIRE RETIREMENT PLAN ANNUITY.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The annuity provided under this section is intended
to compensate for an error in pension coverage. Due to the employment specified in
subdivision 2, an eligible individual specified in subdivision 2 should have become a
member of the public employees police and fire retirement plan but was incorrectly placed
in the St. Paul Fire Department Relief Association retirement plan.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) An eligible individual under paragraph (b) is authorized to
receive the benefit specified in subdivision 4, upon satisfying all requirements specified
in this section.
new text end

new text begin (b) An eligible individual is an individual who:
new text end

new text begin (1) was born on April 24, 1951;
new text end

new text begin (2) was hired as a St. Paul firefighter with a certified appointment date of June 13,
1980, but first earned salary as a St. Paul firefighter on June 30, 1980;
new text end

new text begin (3) was erroneously placed in the St. Paul Fire Department Relief Association
retirement plan due to that employment; and
new text end

new text begin (4) terminated from the St. Paul Fire Department employment on January 3, 1990.
new text end

new text begin Subd. 3. new text end

new text begin Additional employee contribution or refund amount. new text end

new text begin (a) If a valid
annuity application is made under subdivision 7, the executive director of the Public
Employees Retirement Association shall determine the employee contributions that
an eligible individual under subdivision 2 would have made to the public employees
police and fire retirement plan fund, if coverage had been provided by that plan for
the employment period specified in subdivision 2, and from each of these contribution
amounts the employee contribution actually made by the eligible individual to the St. Paul
Fire Department Relief Association for the same payroll period shall be subtracted. These
differences, plus 8.5 percent annual compound interest from the date the public employees
police and fire retirement plan contribution would have been made until the first of the
month after a valid annuity application has been received, must be aggregated.
new text end

new text begin (b) If the aggregate amount under paragraph (a) is a positive number, the total
amount shall be paid in a lump sum to the executive director of the Public Employees
Retirement Association. The executive director shall notify the eligible individual
in writing of the required amount. To be eligible for the current or deferred annuity
specified in subdivision 4, the eligible individual must pay the amount required under this
paragraph, if applicable, within three months of the executive director's notification.
new text end

new text begin (c) If the aggregate amount computed under paragraph (a) is a negative amount, the
value of the contributions that the eligible employee made to the local relief association
exceeded the value of employee contributions that would have been made to the public
employees police and fire fund. This aggregate negative amount must be multiplied by
minus one and the resulting amount shall be refunded to the eligible individual by the city
of St. Paul. The executive director shall inform the eligible individual of the refund
amount in writing, and shall notify the city of St. Paul. The city of St. Paul shall pay this
amount to the eligible individual within 30 days of notification.
new text end

new text begin Subd. 4. new text end

new text begin Benefit amount. new text end

new text begin The eligible individual is entitled to apply for an annuity,
as further specified in subdivision 7, and to receive a public employees police and fire
retirement plan retirement annuity computed based on the version of Minnesota Statutes,
chapter 353, in effect on the date that the eligible individual terminated from St. Paul Fire
Department Relief Association employment.
new text end

new text begin Subd. 5. new text end

new text begin Calculation of reserves; payment by city of St. Paul. new text end

new text begin The executive
director of the Public Employees Retirement Association shall compute the full required
reserves for the annuity determined under subdivision 4 using all applicable actuarial
assumptions for the public employees police and fire retirement plan. This amount, after
deducting the amount received by the Public Employees Retirement Association under
subdivision 3, paragraph (b), if applicable, is to be paid to the executive director of the
Public Employees Retirement Association in a lump sum by the city of St. Paul. The
executive director shall notify the chief administrative officer of the city of St. Paul in
writing of the payment amount required under this subdivision. This notification must be
made by the executive director within one month following the receipt by the executive
director of any amount required under subdivision 3, paragraph (b), if applicable. The
city of St. Paul must pay the amount required under this subdivision within 30 days after
receipt of the executive director's notification.
new text end

new text begin Subd. 6. new text end

new text begin Actions upon failure to pay. new text end

new text begin If the city of St. Paul fails to transmit the
amount required under subdivision 5 in a timely manner, or fails to make a timely refund
under subdivision 3, paragraph (c), if applicable, the executive director of the Public
Employees Retirement Association shall notify the commissioner of finance of this
nonpayment or nonpayments, and the commissioner of finance shall deduct the applicable
amount or amounts from any state aid otherwise payable to the city and transmit the
amount required under subdivision 5 to the executive director for deposit in the public
employees police and fire fund. If the city of St. Paul fails to make a payment required
under subdivision 3, paragraph (c), if applicable, the commissioner of finance shall make
any necessary refund, with reimbursement through the withholding of aid, as stated in
this subdivision.
new text end

new text begin Subd. 7. new text end

new text begin Annuity application. new text end

new text begin An eligible individual described in subdivision 2
shall apply in writing on forms provided by the Public Employees Retirement Association
for the annuity provided by this section. The application must be made before January 1,
2007, and must include all necessary documentation of the applicability of this section and
any other relevant information which the executive director may require.
new text end

new text begin Subd. 8. new text end

new text begin Service credit grant. new text end

new text begin Service credit in the public employees police and
fire retirement plan for the eligible individual's employment period as a St. Paul firefighter
must be granted following the filing of a valid application for an annuity under subdivision
7 and receipt by the executive director of any amount applicable under subdivision 3,
paragraph (b).
new text end

Sec. 2. new text beginPERA-P&F; PURCHASE OF SERVICE CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin An eligible person may purchase allowable service credit
from the public employees police and fire plan for the period from November 23, 1984,
to March 16, 1985. An eligible person is a person who:
new text end

new text begin (1) is currently a member of the public employees police and fire plan; and
new text end

new text begin (2) was employed by the city of Faribault as a firefighter since November 23, 1984,
but was not covered by the public employees police and fire plan from November 23,
1984, until March 16, 1985, despite the provided firefighting service.
new text end

new text begin Subd. 2. new text end

new text begin Purchase requirements. new text end

new text begin An eligible person must apply to the executive
director of the Public Employees Retirement Association to make the service credit
purchase authorized in this section. The application must be in writing and must contain
documentation required by the executive director.
new text end

new text begin Subd. 3. new text end

new text begin Payment. new text end

new text begin If an eligible person meets the requirements to purchase service
credit under this section, the public employees police and fire fund must be paid the
amount determined under Minnesota Statutes, section 356.551.
new text end

new text begin Subd. 4. new text end

new text begin Additional requirements. new text end

new text begin (a) In addition to the one-year payment
limitation in Minnesota Statutes, section 356.551, the authority provided by this section is
voided if the amount required under subdivision 3, from an eligible person is not paid to
the executive director of the Public Employees Retirement Association before termination
of service by the eligible person.
new text end

new text begin (b) Notwithstan