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Capital IconMinnesota Legislature

SF 2644

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 05/03/2010 12:49pm

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

Current Version - 2nd Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33
2.1 2.2
2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 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 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 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 7.34 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 8.36 8.37 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 9.36 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 10.35 10.36 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 11.34 11.35 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 12.36 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 14.36 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 16.35 16.36 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 17.35 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 18.36 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
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
21.1 21.2 21.3 21.4 21.5 21.6 21.7
21.8 21.9 21.10 21.11 21.12 21.13 21.14
21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22
21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32
22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 22.34 22.35 22.36
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 23.36 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 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 26.35 26.36 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 28.1 28.2 28.3 28.4 28.5 28.6
28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 28.35 28.36 28.37 28.38 28.39 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 29.37 29.38 29.39 29.40 29.41 29.42 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 30.36 30.37 30.38 30.39 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 31.34 31.35 31.36 31.37 31.38 31.39 31.40 31.41 31.42 31.43 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 32.36 32.37 32.38 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 33.36 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 34.36 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 35.35 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 36.34 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 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 40.1 40.2
40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29
40.30 40.31 40.32 40.33 40.34 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34 41.35 41.36 42.1 42.2 42.3 42.4 42.5 42.6 42.7
42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34 42.35 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 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 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 46.37 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 47.35 47.36 47.37 47.38 47.39 47.40 47.41 47.42 47.43 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 48.35 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 49.34 49.35 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 51.34 51.35 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 52.34 52.35 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 53.35 53.36 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 55.35 55.36 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 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 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 59.35 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 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 61.35 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 62.36 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 64.35 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
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 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 67.34
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 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 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 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 71.34 71.35 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 72.33 72.34 73.1 73.2
73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15
73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 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

A bill for an act
relating to retirement; Minneapolis Employees Retirement Fund; transfer of
administrative functions to the Public Employees Retirement Association;
creation of MERF consolidation account within the Public Employees Retirement
Association; appropriating money; amending Minnesota Statutes 2008, sections
11A.23, subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316,
subdivision 8; 69.021, subdivision 10; 126C.41, subdivision 3; 256D.21;
353.01, subdivision 2b, by adding subdivisions; 353.03, subdivision 1; 353.05;
353.27, as amended; 353.34, subdivisions 1, 6; 353.37, subdivisions 1, 2, 3,
4, 5; 353.46, subdivisions 2, 6; 353.64, subdivision 7; 353.71, subdivision 4;
353.86, subdivisions 1, 2; 353.87, subdivisions 1, 2; 353.88; 354.71; 354A.011,
subdivision 27; 354A.39; 355.095, subdivision 1; 356.214, subdivision 1;
356.215, subdivision 8; 356.30, subdivision 3; 356.302, subdivisions 1, 7;
356.303, subdivision 4; 356.407, subdivision 2; 356.431, subdivision 1; 356.465,
subdivision 3; 356.64; 356.65, subdivision 2; 356.91; 422A.101, subdivision 3;
422A.26; 473.511, subdivision 3; 473.606, subdivision 5; 475.52, subdivision
6; Minnesota Statutes 2009 Supplement, sections 6.67; 69.011, subdivision
1; 69.031, subdivision 5; 352.01, subdivision 2b; 353.01, subdivision 2a;
353.06; 356.20, subdivision 2; 356.215, subdivision 11; 356.32, subdivision 2;
356.401, subdivision 3; 356.415, subdivision 2; 356.96, subdivision 1; 480.181,
subdivision 2; proposing coding for new law in Minnesota Statutes, chapter
353; repealing Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011,
subdivision 2a; 356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11,
12, 13a, 17, 18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b,
2c, 2d, 2e, 2f, 5, 6, 8; 422A.06, subdivisions 1, 2, 3, 5, 6, 7; 422A.08, subdivision
1; 422A.09; 422A.10; 422A.101, subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12;
422A.13; 422A.14, subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156;
422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 422A.17; 422A.18, subdivisions
1, 2, 3, 4, 5, 7; 422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4,
6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, 12; 422A.231; 422A.24;
422A.25; Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8;
422A.08, subdivision 5.

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

ARTICLE 1

MERF CONSOLIDATION ACCOUNT IN PERA

Section 1.

Minnesota Statutes 2009 Supplement, section 353.01, subdivision 2a,
is amended to read:


Subd. 2a.

Included employees.

(a) Public employees whose salary from
employment in one or more positions within 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 deleted text beginpublicdeleted text endnew text begin generalnew text end employees retirement plan deleted text beginordeleted text endnew text begin under this chapter,new text end 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 for the duration of the person's employment in that
position or incumbency in elected office. Except as provided in subdivision 28, the person
shall participate as a member until the employee or elected official terminates public
employment under subdivision 11a or terminates membership under subdivision 11b.

(c) Public employees under paragraph (a) include:

(1) physicians under section 353D.01, subdivision 2, who do not elect public
employees defined contribution plan coverage under section 353D.02, subdivision 2;

(2) full-time employees of the Dakota County Agricultural Society; and

(3) employees of the Minneapolis Firefighters Relief Association or Minneapolis
Police Relief Association who are not excluded employees under subdivision 2b due to
coverage by the relief association pension plan and who elect Public Employee Retirement
Association general plan coverage under Laws 2009, chapter 169, article 12, section 10new text begin.
new text end

new text begin (d) For the purpose of participation in the MERF division of the general employees
retirement plan, public employees include employees who were members of the former
Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as
members of the MERF division of the association
new text end.

Sec. 2.

Minnesota Statutes 2008, section 353.01, subdivision 2b, is amended to read:


Subd. 2b.

Excluded employees.

The following public employees are not eligible to
participate as members of the association with retirement coverage by the deleted text beginpublicdeleted text end new text begingeneral
new text endemployees retirement plan, the local government correctional employees retirement plan
under chapter 353E, or the public employees police and fire retirement plan:

(1) public officers, other than county sheriffs, who are elected to a governing body,
or persons who are appointed to fill a vacancy in an elective office of a governing body,
whose term of office commences on or after July 1, 2002, for the service to be rendered
in that elective position;

(2) election officers or election judges;

(3) patient and inmate personnel who perform services for a governmental
subdivision;

(4) except as otherwise specified in subdivision 12a, employees who are hired for
a temporary position as defined under subdivision 12a, and employees who resign from
a nontemporary position and accept a temporary position within 30 days in the same
governmental subdivision;

(5) employees who are employed by reason of work emergency caused by fire,
flood, storm, or similar disaster;

(6) employees who by virtue of their employment in one governmental subdivision
are required by law to be a member of and to contribute to any of the plans or funds
administered by the Minnesota State Retirement System, the Teachers Retirement
Association, the Duluth Teachers Retirement Fund Association, the St. Paul Teachers
Retirement Fund Association, deleted text beginthe Minneapolis Employees Retirement Fund,deleted text end or any police
or firefighters relief association governed by section 69.77 that has not consolidated
with the Public Employees Retirement Association, or any local police or firefighters
consolidation account who have not elected the type of benefit coverage provided by the
public employees police and fire fund under sections 353A.01 to 353A.10, or any persons
covered by section 353.665, subdivision 4, 5, or 6, who have not elected public employees
police and fire plan benefit coverage. This clause must not be construed to prevent a person
from being a member of and contributing to the Public Employees Retirement Association
and also belonging to and contributing to another public pension plan or fund for other
service occurring during the same period of time. A person who meets the definition of
"public employee" in subdivision 2 by virtue of other service occurring during the same
period of time becomes a member of the association unless contributions are made to
another public retirement fund on the salary based on the other service or to the Teachers
Retirement Association by a teacher as defined in section 354.05, subdivision 2;

(7) persons who are members of a religious order and are excluded from coverage
under the federal Old Age, Survivors, Disability, and Health Insurance Program for the
performance of service as specified in United States Code, title 42, section 410(a)(8)(A),
as amended through January 1, 1987, if no irrevocable election of coverage has been made
under section 3121(r) of the Internal Revenue Code of 1954, as amended;

(8) employees of a governmental subdivision who have not reached the age of
23 and are enrolled on a full-time basis to attend or are attending classes on a full-time
basis at an accredited school, college, or university in an undergraduate, graduate, or
professional-technical program, or a public or charter high school;

(9) resident physicians, medical interns, and pharmacist residents and pharmacist
interns who are serving in a degree or residency program in public hospitals or clinics;

(10) students who are serving in an internship or residency program sponsored
by an accredited educational institution;

(11) persons who hold a part-time adult supplementary technical college license who
render part-time teaching service in a technical college;

(12) except for employees of Hennepin County or Hennepin Healthcare System,
Inc., foreign citizens working for a governmental subdivision with a work permit of less
than three years, or an H-1b visa valid for less than three years of employment. Upon
notice to the association that the work permit or visa extends beyond the three-year period,
the foreign citizens must be reported for membership from the date of the extension;

(13) public hospital employees who elected not to participate as members of the
association before 1972 and who did not elect to participate from July 1, 1988, to October
1, 1988;

(14) except as provided in section 353.86, volunteer ambulance service personnel,
as defined in subdivision 35, but persons who serve as volunteer ambulance service
personnel may still qualify as public employees under subdivision 2 and may be members
of the Public Employees Retirement Association and participants in the deleted text beginpublicdeleted text endnew text begin generalnew text end
employees retirement fund or the public employees police and fire fund, whichever
applies, on the basis of compensation received from public employment service other than
service as volunteer ambulance service personnel;

(15) except as provided in section 353.87, volunteer firefighters, as defined in
subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties;
provided that a person who is a volunteer firefighter may still qualify as a public
employee under subdivision 2 and may be a member of the Public Employees Retirement
Association and a participant in the deleted text beginpublicdeleted text endnew text begin generalnew text end employees retirement fund or the public
employees police and fire fund, whichever applies, on the basis of compensation received
from public employment activities other than those as a volunteer firefighter;

(16) pipefitters and associated trades personnel employed by Independent School
District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
pipefitters local 455 pension plan who were either first employed after May 1, 1997, or,
if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter
241, article 2, section 12;

(17) electrical workers, plumbers, carpenters, and associated trades personnel
employed by Independent School District No. 625, St. Paul, or the city of St. Paul,
who have retirement coverage under a collective bargaining agreement by the Electrical
Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan,
or the Carpenters Local 87 pension plan who were either first employed after May 1,
2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000,
chapter 461, article 7, section 5;

(18) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers,
painters, allied tradesworkers, and plasterers employed by the city of St. Paul or
Independent School District No. 625, St. Paul, with coverage under a collective
bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan,
the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324
pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities
Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if
first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special
Session chapter 10, article 10, section 6;

(19) plumbers employed by the Metropolitan Airports Commission, with coverage
under a collective bargaining agreement by the Plumbers Local 34 pension plan, who either
were first employed after May 1, 2001, or if first employed before May 2, 2001, elected to
be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;

(20) employees who are hired after June 30, 2002, to fill seasonal positions under
subdivision 12b which are limited in duration by the employer to 185 consecutive calendar
days or less in each year of employment with the governmental subdivision;

(21) persons who are provided supported employment or work-study positions
by a governmental subdivision and who participate in an employment or industries
program maintained for the benefit of these persons where the governmental subdivision
limits the position's duration to three years or less, including persons participating in a
federal or state subsidized on-the-job training, work experience, senior citizen, youth, or
unemployment relief program where the training or work experience is not provided as a
part of, or for, future permanent public employment;

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

(23) reemployed annuitants of the association during the course of that
reemployment.

Sec. 3.

Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision
to read:


new text begin Subd. 47. new text end

new text begin MERF division. new text end

new text begin "MERF division" means the separate retirement plan
within the general employees retirement plan of the Public Employees Retirement
Association containing the applicable provisions of Minnesota Statutes 2008, chapter
422A.
new text end

Sec. 4.

Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision
to read:


new text begin Subd. 48. new text end

new text begin MERF division account. new text end

new text begin "MERF division account" means the separate
account within the retirement fund of the general employees retirement fund of the
Public Employees Retirement Association in which the actuarial liabilities of the former
Minneapolis Employees Retirement Fund are held, and in which the assets of the former
Minneapolis Employees Retirement Fund are credited.
new text end

Sec. 5.

Minnesota Statutes 2008, section 353.05, is amended to read:


353.05 CUSTODIAN OF FUNDS.

The commissioner of management and budget shall be ex officio treasurer of the
retirement funds of the associationnew text begin, including the MERF division, new text end and the general bond of
the commissioner of management and budget to the state shall be so conditioned as to
cover all liability for acts as treasurer of these funds. All deleted text beginmoneysdeleted text end new text beginmoney new text endof the association
received by the commissioner of management and budget shall be set aside in the state
treasury to the credit of the proper fundnew text begin or accountnew text end. The commissioner of management and
budget shall transmit monthly to the executive director a detailed statement of all amounts
so received and credited to the deleted text beginfunddeleted text endnew text begin funds, including the MERF divisionnew text end. Payments out
new text begin of new text endthe deleted text beginfund shalldeleted text end new text beginfunds, including the MERF division, may only new text endbe made deleted text beginonlydeleted text end on warrants
issued by the commissioner of management and budget, upon abstracts signed by the
executive director; provided that abstracts for investment may be signed by the deleted text beginsecretarydeleted text end
new text begin executive director new text endof the State Board of Investment.

Sec. 6.

Minnesota Statutes 2009 Supplement, section 353.06, is amended to read:


353.06 STATE BOARD OF INVESTMENT TO INVEST FUNDS.

The executive director shall from time to time certify to the State Board of
Investment for investment such portions of the deleted text beginretirement funddeleted text end new text beginfunds of the association,
including the MERF division,
new text endas in deleted text beginitsdeleted text end new text beginthe director's new text endjudgment may not be required for
immediate use. The State Board of Investment shall thereupon invest and reinvest the sum
so certified, or transferred, in such securities as are duly authorized as legal investments
deleted text begin for state employees retirement funddeleted text end new text beginunder section 11A.24 new text endand deleted text beginshall havedeleted text end new text beginhas new text endauthority to
sell, convey, and exchange such securities and invest and reinvest the securities when it
deems it desirable to do so and shall sell securities upon request of the deleted text beginboard of trusteesdeleted text end
new text begin executive director new text endwhen such funds are needed for its purposes. All of the provisions
regarding accounting procedures and restrictions and conditions for the purchase and
sale of securities under chapter 11A must apply to the accounting, purchase and sale of
securities for the new text beginfunds of the new text endPublic Employees Retirement deleted text beginfunddeleted text endnew text begin Association, including
the MERF division
new text end.

Sec. 7.

Minnesota Statutes 2008, section 353.27, as amended by Laws 2009, chapter
169, article 1, section 32, and article 4, sections 9, 10, 11, and 12, is amended to read:


353.27 deleted text beginPUBLICdeleted text end new text beginGENERAL new text endEMPLOYEES RETIREMENT FUND.

Subdivision 1.

Income; disbursements.

There is a special fund known as the
"deleted text beginpublicdeleted text endnew text begin generalnew text end employees retirement fund," the "retirement fund," or the "fund," which
must include all the assets of the new text begingeneral employees retirement plan of the new text endassociation.
This fund must be credited with all contributions, all interest and all other income new text beginof the
general employees retirement plan of the Public Employees Retirement Association that
are
new text endauthorized by law. From this fund there is appropriated the payments authorized by
deleted text begin this chapterdeleted text end new text beginsections 353.01 to 353.46 new text endin the amounts and at such time provided herein,
including the expenses of administering the new text begingeneral employees retirement plan and new text endfund.

new text begin Subd. 1a. new text end

new text begin MERF division account established; revenue and disbursements. new text end

new text begin The
MERF division account is established as a special account. The MERF division account
includes all of the assets of the former Minneapolis Employees Retirement Fund that
were transferred to the administration of the Public Employees Retirement Association
under section 353.50. The special account is credited with the contributions under section
353.50, subdivision 7, state aid under sections 356.43 and 422A.101, subdivision 3,
investment performance on the special account assets, and all other income of the MERF
division authorized by law. The payments of annuities and benefits authorized by chapter
422A in the amounts and at the times provided in that chapter, and the administrative
expenses of the MERF division are appropriated from the special account.
new text end

Subd. 2.

new text beginGeneral employees retirement plan; new text endemployee contribution.

(a) For
a basic membernew text begin of the general employees retirement plan of the Public Employees
Retirement Association
new text end, the employee contribution is 9.10 percent of salary. For a
coordinated membernew text begin of the general employees retirement plan of the Public Employees
Retirement Association
new text end, the employee contribution is six percent of salary plus any
contribution rate adjustment under subdivision 3b.

(b) These contributions must be made by deduction from salary as defined in section
353.01, subdivision 10, in the manner provided in subdivision 4. If any portion of a
member's salary is paid from other than public funds, the member's employee contribution
must be based on the total salary received by the member from all sources.

Subd. 3.

new text beginGeneral employees retirement plan; new text endemployer contribution.

(a) For
a basic membernew text begin of the general employees retirement plan of the Public Employees
Retirement Association
new text end, the employer contribution is 9.10 percent of salary. For a
coordinated membernew text begin of the general employees retirement plan of the Public Employees
Retirement Association
new text end, the employer contribution is six percent of salary plus any
contribution rate adjustment under subdivision 3b.

(b) This contribution must be made from funds available to the employing
subdivision by the means and in the manner provided in section 353.28.

Subd. 3a.

Additional employer contribution.

(a) An additional employer
contribution new text beginto the general employees retirement fund of the Public Employees Retirement
Association
new text endmust be made equal to the following applicable percentage of the total salary
amount for "basic members" and for "coordinated members":

Basic Program
Coordinated Program
Effective before January 1, 2006
2.68
.43
Effective January 1, 2006
2.68
.50
Effective January 1, 2009
2.68
.75
Effective January 1, 2010
2.68
1.00

These contributions must be made from funds available to the employing subdivision
by the means and in the manner provided in section 353.28.

(b) The coordinated program contribution rates set forth in paragraph (a) effective
for deleted text beginJanuary 1, 2009, or deleted text endJanuary 1, 2010, must not be implemented if, following receipt of
the deleted text beginJuly 1, 2008, or deleted text endJuly 1, 2009, annual actuarial valuation deleted text beginreportsdeleted text end new text beginreport new text endunder section
356.215, respectively, the actuarially required contributions are equal to or less than the
total rates under this section in effect as of January 1, 2008.

(c) This subdivision is repealed once the actuarial value of the assets of the new text begingeneral
employees retirement
new text endplan new text beginof the Public Employees Retirement Association new text endequal or
exceed the actuarial accrued liability of the plan as determined by the actuary retained
under sections 356.214 and 356.215. The repeal is effective on the first day of the first full
pay period occurring after March 31 of the calendar year following the issuance of the
actuarial valuation upon which the repeal is based.

Subd. 3b.

Change in employee and employer contributions in certain instances.

(a) For purposes of this section, a contribution sufficiency exists if the total of the
employee contribution under subdivision 2, the employer contribution under subdivision
3, the additional employer contribution under subdivision 3a, and any additional
contribution previously imposed under this subdivision exceeds the total of the normal
cost, the administrative expenses, and the amortization contribution of the new text begingeneral
employees
new text endretirement 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
the total of the employee contributions under subdivision 2, the employer contributions
under subdivision 3, the additional employer contribution under subdivision 3a, and any
additional contribution previously imposed under this subdivision is less than the total
of the normal cost, the administrative expenses, and the amortization contribution of the
new text begin general employees new text endretirement 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.

(b) Employee and employer contributions new text beginto the general employees retirement plan
new text endunder subdivisions 2 and 3 must be adjusted:

(1) if, after July 1, 2010, the regular actuarial valuations of the general employees
retirement plan of the Public Employees Retirement Association under section 356.215
indicate that there is a contribution sufficiency under paragraph (a) equal to or greater
than 0.5 percent of covered payroll for two consecutive years, the coordinated program
employee and employer contribution rates must be decreased as determined under
paragraph (c) 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

(2) if, after July 1, 2010, the regular actuarial valuations of the general employees
retirement plan of the Public Employees Retirement Association 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 coordinated program employee and employer contribution rates
must be increased as determined under paragraph (c) to a level such that no deficiency
exists based on the most recent actuarial valuation.

(c) The new text begingeneral employees retirement plan new text endcontribution rate increase or decrease
must be determined by the executive director of the Public Employees Retirement
Association, 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
new text begin of the general employees retirement plan new text endexceeds or is less than the total support provided
by the combined employee and employer contribution rates by more than 0.5 percent of
covered payroll, the new text begingeneral employees retirement plan new text endcoordinated program 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.

(d) No incremental adjustment may exceed 0.25 percent for either the new text begingeneral
employees retirement plan
new text endcoordinated program employee and employer contribution rates
per year in which any adjustment is implemented. A new text begingeneral employees retirement plan
new text endcontribution rate adjustment under this subdivision must not be made until at least two
years have passed since fully implementing a previous adjustment under this subdivision.

new text begin (e) The general employees retirement plan contribution sufficiency or deficiency
determination under paragraphs (a) through (d) must be made without the inclusion of
the contributions to, the funded condition of, or the actuarial funding requirements of
the MERF division.
new text end

Subd. 4.

Employer reporting requirements; contributions; member status.

(a) A representative authorized by the head of each department shall deduct employee
contributions from the salary of each employee who qualifies for membership new text beginin the
general employees retirement plan of the Public Employees Retirement Association or in
the public employees police and fire retirement plan
new text endunder this chapter and remit payment
in a manner prescribed by the executive director for the aggregate amount of the employee
contributions, the employer contributions and the additional employer contributions to be
received within 14 calendar days. The head of each department or the person's designee
shall for each pay period submit to the association a salary deduction report in the format
prescribed by the executive director. Data required to be submitted as part of salary
deduction reporting must include, but are not limited to:

(1) the legal names and Social Security numbers of employees who are members;

(2) the amount of each employee's salary deduction;

(3) the amount of salary from which each deduction was made;

(4) the beginning and ending dates of the payroll period covered and the date of
actual payment; and

(5) adjustments or corrections covering past pay periods.

(b) Employers must furnish the data required for enrollment for each new employee
who qualifies for membership new text beginin the general employees retirement plan of the Public
Employees Retirement Association or in the public employees police and fire retirement
plan
new text endin the format prescribed by the executive director. The required enrollment data
on new employees must be submitted to the association prior to or concurrent with the
submission of the initial employee salary deduction. The employer shall also report
to the association all member employment status changes, such as leaves of absence,
terminations, and death, and shall report the effective dates of those changes, on an
ongoing basis for the payroll cycle in which they occur. The employer shall furnish data,
forms, and reports as may be required by the executive director for proper administration
of the retirement system. Before implementing new or different computerized reporting
requirements, the executive director shall give appropriate advance notice to governmental
subdivisions to allow time for system modifications.

(c) Notwithstanding paragraph (a), the deleted text beginassociationdeleted text end new text beginexecutive director new text endmay provide
for less frequent reporting and payments for small employers.

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 new text beginto the general employees retirement
plan of the Public Employees Retirement Association or to the public employees police
and fire retirement plan
new text endfor 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 upon
termination of public service or 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 refund all erroneous employee
deductions and all erroneous employer contributions as specified in paragraph (e). 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 new text begingeneral employees retirement plan of the Public Employees Retirement
new text endAssociation new text beginor in the public employees police and fire retirement plan new text endby 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 invalid service and, upon termination of public service, the association
shall refund all erroneous employee deductions to the person, with interest as determined
under section 353.34, subdivision 2, and all erroneous employer contributions without
interest to the employer. This paragraph has both retroactive and prospective application.

(c) Adjustments to correct employer contributions and employee deductions taken
in error from amounts which are not salary under section 353.01, subdivision 10, must
be made as specified in paragraph (e). The period of adjustment must be limited to the
fiscal year in which the error is discovered by the association and the immediate two
preceding fiscal years.

(d) If there is evidence of fraud or other misconduct on the part of the employee or
the employer, the board of trustees may authorize adjustments to the account of a member
or former member to correct erroneous employee deductions and employer contributions
on invalid salary and the recovery of any overpayments for a period longer than provided
for under paragraph (c).

(e) Upon discovery of the receipt of erroneous employee deductions and employer
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 reported on behalf of a member. Upon discontinuation, the association must:

(1) for a member, provide a refund or credit to the employer in the amount of the
invalid employee deductions with interest on the invalid employee deductions at the rate
specified under section 353.34, subdivision 2, from the received date of each invalid salary
transaction through the date the credit or refund is made; and the employer must pay the
refunded employee deductions plus interest to the member;

(2) for a former member who:

(i) is not receiving a retirement annuity or benefit, return the erroneous employee
deductions to the former member through a refund with interest at the rate specified under
section 353.34, subdivision 2, from the received date of each invalid salary transaction
through the date the credit or refund is made; or

(ii) is receiving a retirement annuity or disability benefit, or a person who is
receiving an optional annuity or survivor benefit, for whom it has been determined an
overpayment must be recovered, adjust the payment amount and recover the overpayments
as provided under this section; and

(3) return the invalid employer contributions reported on behalf of a member or
former member to the employer by providing a credit against future contributions payable
by the employer.

(f) In the event that 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 any portion of it that is required to adjust the deductions, must be made
to the department or institution.

(g) If the accrual date of any retirement annuity, survivor benefit, or disability benefit
is within the limitation period specified in paragraph (c), and an overpayment has resulted
by using invalid service or salary, or due to any erroneous calculation procedure, the
association must recalculate the annuity or benefit payable and recover any overpayment
as provided under subdivision 7b.

(h) Notwithstanding the provisions of this subdivision, the association may apply
the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans
Compliance Resolution System and not issue a refund of erroneous employee deductions
and employer contributions or not recover a small overpayment of benefits if the cost to
correct the error would exceed the amount of the member refund or overpayment.

(i) Any fees or penalties assessed by the federal Internal Revenue Service for any
failure by an employer to follow the statutory requirements for reporting eligible members
and salary must be paid by the employer.

Subd. 7a.

Deductions or contributions transmitted by error.

(a) If employee
deductions and employer contributions new text beginunder this section, section 353.50, 353.65, or
353E.03
new text endwere erroneously transmitted to the association, but should have been transmitted
to another Minnesota public pension plan, the executive director shall transfer the
erroneous employee deductions and employer contributions to the appropriate retirement
fund or individual account, as applicable, without interest. The time limitations specified
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 plans governed by chapters 353D
and 354B.

(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.

Subd. 7b.

Recovery of overpayments.

(a) In the event the executive director
determines that an overpaid annuity or benefit deleted text beginthatdeleted text end new text beginfrom the general employees retirement
plan of the Public Employees Retirement Association, the public employees police and
fire retirement plan, or the local government correctional employees retirement plan
new text endis
the result of invalid salary included in the average salary used to calculate the payment
amount must be recovered, the association must determine the amount of the employee
deductions taken in error on the invalid salary, with interest determined in the manner
provided for a former member under subdivision 7, paragraph (e), clause (2), item (i),
and must subtract that amount from the total annuity or benefit overpayment, and the
remaining balance of the overpaid annuity or benefit, if any, must be recovered.

(b) If the invalid employee deductions plus interest exceed the amount of the
overpaid benefits, the balance must be refunded to the person to whom the benefit or
annuity is being paid.

(c) Any invalid employer contributions reported on the invalid salary must be
credited to the employer as provided in subdivision 7, paragraph (e).

(d) If a member or former member, who is receiving a retirement annuity or
disability benefit for which an overpayment is being recovered, dies before recovery of
the overpayment is completed and a joint and survivor optional annuity is payable, the
remaining balance of the overpaid annuity or benefit must continue to be recovered from
the payment to the optional annuity beneficiary.

(e) If the association finds that a refund has been overpaid to a former member,
beneficiary or other person, the amount of the overpayment must be recoverednew text begin for the
benefit of the respective retirement fund or account
new text end.

(f) The board of trustees shall adopt policies directing the period of time and manner
for the collection of any overpaid retirement or optional annuity, and survivor or disability
benefit, or a refund that the executive director determines must be recovered as provided
under this section.

Subd. 7c.

Limitation on additional plan coverage.

No deductions for any plan
under this chapter or chapter 353E may be taken from the salary of a person who is
employed by a governmental subdivision under section 353.01, subdivision 6, and who is
receiving disability benefit payments from any plan under this chapter or chapter 353E
unless the person waives the right to further disability benefit payments.

Subd. 8.

District court reporters; salary deductions.

Deductions from the salary
of a district court reporter in a judicial district consisting of two or more counties shall be
made by the auditor of the county in which the bond and official oath of such district court
reporter are filed, from the portion of salary paid by such county.

Subd. 9.

Fee officers; contributions; obligations of employers.

Any appointed or
elected officer of a governmental subdivision who was or is a "public employee" within
the meaning of section 353.01 and was or is a member of the deleted text beginfunddeleted text end new text begingeneral employees
retirement plan of the Public Employees Retirement Association
new text endand whose salary
was or is paid in whole or in part from revenue derived by fees and assessments, shall
pay employee contribution in the amount, at the time, and in the manner provided in
subdivisions 2 and 4. This subdivision deleted text beginshalldeleted text end new text begindoes new text endnot apply to district court reporters.
The employer contribution as provided in subdivision 3, and the additional employer
contribution as provided in subdivision 3a, with respect to such service deleted text beginshalldeleted text end new text beginmust new text endbe
paid by the governmental subdivision. This subdivision deleted text beginshall havedeleted text end new text beginhas new text endboth retroactive
and prospective application as to all such members; and every employing governmental
subdivision is deemed liable, retroactively and prospectively, for all employer and
additional employer contributions for every such member new text beginof the general employees
retirement plan
new text endin its employ. Delinquencies under this section deleted text beginshall bedeleted text endnew text begin arenew text end governed
in all respects by section 353.28.

Subd. 10.

Employer exclusion reports.

The head of a department shall annually
furnish the executive director with an exclusion report listing only those employees in
potentially PERAnew text begin general employees retirement plannew text end-eligible positions who were not
reported as members of the deleted text beginassociationdeleted text end new text begingeneral employees retirement plan new text endand who worked
during the school year for school employees and calendar year for nonschool employees.
The department head must certify the accuracy and completeness of the exclusion report
to the association. The executive director shall prescribe the manner and forms, including
standardized exclusion codes, to be used by a governmental subdivision in preparing and
filing exclusion reports. The executive director shall also check the exclusion report to
ascertain whether any omissions have been made by a department head in the reporting
of new public employees for membership. The executive director may delegate an
association employee under section 353.03, subdivision 3a, paragraph (b), clause (5), to
conduct a field audit to review the payroll records of a governmental subdivision.

Subd. 11.

Employers; required to furnish requested information.

(a) All
governmental subdivisions shall furnish promptly such other information relative to the
employment status of all employees or former employees, including, but not limited to,
payroll abstracts pertaining to all past and present employees, as may be requested by the
executive director, including schedules of salaries applicable to various categories of
employment.

(b) In the event payroll abstract records have been lost or destroyed, for whatever
reason or in whatever manner, so that such schedules of salaries cannot be furnished
therefrom, the employing governmental subdivision, in lieu thereof, shall furnish to the
association an estimate of the earnings of any employee or former employee for any
period as may be requested by the executive director. If the association is provided a
schedule of estimated earnings, the executive director is authorized to use the same as a
basis for making whatever computations might be necessary for determining obligations
of the employee and employer to the new text begingeneral employees new text endretirement deleted text beginfunddeleted text endnew text begin plan, the public
employees police and fire retirement plan, or the local government correctional employees
retirement plan
new text end. If estimates are not furnished by the employer at the request of the
executive director, the executive director may estimate the obligations of the employee
and employer to the new text begingeneral employees new text endretirement fundnew text begin, the public employees police and
fire retirement plan, or the local government correctional employees retirement plan
new text end based
upon those records that are in its possession.

Subd. 12.

Omitted salary deductions; obligations.

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

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

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

(d) An employer shall not hold an employee liable for omitted employee deductions
beyond the pay period dates under paragraph (c), nor attempt to recover from the employee
those employee deductions paid by the employer on behalf of the employee. Omitted
deductions due under paragraph (c) which are not paid by the employee constitute a
liability of the employer that failed to deduct the omitted deductions from the employee's
salary. The employer shall make payment with interest at an annual rate of 8.5 percent
compounded annually. Omitted employee deductions are no longer due if an employee
terminates public service before making payment of omitted employee deductions to
the association, but the employer remains liable to pay omitted employer contributions
plus interest at an annual rate of 8.5 percent compounded annually from the date the
contributions were first payable.

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

Subd. 12a.

Terminated employees: omitted deductions.

A terminated employee
new text begin who was a member of the general employees retirement plan of the Public Employees
Retirement Association, the public employees police and fire retirement plan, or the local
government correctional employees retirement plan and
new text endwho has a period of employment
in which previously omitted employer contributions were made under subdivision 12
but for whom no, or only partial, omitted employee contributions have been made, or
a member who had prior coverage in the association for which previously omitted
employer contributions were made under subdivision 12 but who terminated service
before required omitted employee deductions could be withheld from salary, may pay the
omitted employee deductions for the period on which omitted employer contributions
were previously paid plus interest at an annual rate of 8.5 percent compounded annually.
A terminated employee may pay the omitted employee deductions plus interest within six
months of an initial notification from the association of eligibility to pay those omitted
deductions. If a terminated employee is reemployed in a position covered under a public
pension fund under section 356.30, subdivision 3, and elects to pay omitted employee
deductions, payment must be made no later than six months after a subsequent termination
of public service.

Subd. 12b.

Terminated employees: immediate eligibility.

If deductions were
omitted from salary adjustments or final salary of a terminated employee new text beginwho was a
member of the general employees retirement plan, the public employees police and fire
retirement plan, or the local government correctional employees retirement plan and
new text endwho
is immediately eligible to draw a monthly benefit, the employer shall pay the omitted
employer and employer additional contributions plus interest on both the employer and
employee amounts due at an annual rate of 8.5 percent compounded annually. The
employee shall pay the employee deductions within six months of an initial notification
from the association of eligibility to pay omitted deductions or the employee forfeits
the right to make the payment.

Subd. 13.

Certain warrants canceled.

A warrant payable from the new text begingeneral
employees
new text endretirement fundnew text begin, the public employees police and fire retirement fund, or the
local government correctional retirement fund
new text end remaining unpaid for a period of six
months must be canceled into the new text beginapplicable new text endretirement fund and not new text begincanceled new text endinto the
new text begin state's new text endgeneral fund.

Subd. 14.

Periods before initial coverage date.

(a) If an entity is determined to
be a governmental subdivision due to receipt of a written notice of eligibility from the
associationnew text begin with respect to the general employees retirement plan, the public employees
police and fire retirement plan, or the local government correctional retirement plan
new text end, that
employer and its employees are subject to the requirements of subdivision 12, effective
retroactively to the date that the executive director of the association determines that
the entity first met the definition of a governmental subdivision, if that date predates
the notice of eligibility.

(b) If the retroactive time period under paragraph (a) exceeds three years, an
employee is authorized to purchase service credit in the applicable Public Employees
Retirement Association plan for the portion of the period in excess of three years, by
making payment under section 356.551. Notwithstanding new text beginany provision of new text endsection
356.551, subdivision 2, new text beginto the contrary, new text endregarding time limits on purchases, payment new text beginof a
service credit purchase amount
new text endmay be made anytime before new text beginthe new text endtermination of public
service.

(c) This subdivision does not apply if the applicable employment under paragraph
(a) included coverage by any public or private defined benefit or defined contribution
retirement plan, other than a volunteer firefighters relief association. If this paragraph
applies, an individual is prohibited from purchasing service credit new text beginfrom a Public Employees
Retirement Association plan
new text endfor any period or periods specified in paragraph (a).

Sec. 8.

Minnesota Statutes 2008, 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 before the date of
termination of public service. 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 placed on layoff under section 353.01, subdivision 12 or 12c,
a refund is not payable before termination of service under section 353.01, subdivision 11a.

(c) An individual who terminates public service covered by the Public Employees
Retirement Association general employees retirement plan, new text beginthe MERF division, new text endthe
Public Employees Retirement Association police and fire retirement plan, or the public
employees local government corrections service retirement plan, and who is employed
by a different employer and who becomes 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 from which the member terminated service.

Sec. 9.

Minnesota Statutes 2008, section 353.34, subdivision 6, is amended to read:


Subd. 6.

Additions to fund.

The board of trustees may credit to the new text begingeneral
employees retirement
new text endfund any deleted text beginmoneysdeleted text end new text beginmoney new text endreceived in the form of contributions,
donations, gifts, appropriations, bequests, or otherwise.

Sec. 10.

Minnesota Statutes 2008, section 353.37, subdivision 1, is amended to read:


Subdivision 1.

Salary maximums.

new text begin(a) new text endThe annuity of a person otherwise eligible
for an annuity deleted text beginunder this chapterdeleted text end new text beginfrom the general employees retirement plan of the Public
Employees Retirement Association, the public employees police and fire retirement plan,
or the local government correctional employees retirement plan
new text endmust be suspended under
subdivision 2 or reduced under subdivision 3, whichever results in the higher annual
annuity amount, if the person reenters public service as a nonelective employee of a
governmental subdivision in a position covered by this chapter or returns to work as an
employee of a labor organization that represents public employees who are association
members under this chapter and salary for the reemployment service exceeds the annual
maximum earnings allowable for that age for the continued receipt of full benefit amounts
monthly under the federal Old Age, Survivors and Disability Insurance Program as set by
the secretary of health and human services under United States Code, title 42, section 403,
in any calendar year. If the person has not yet reached the minimum age for the receipt
of Social Security benefits, the maximum salary for the person is equal to the annual
maximum earnings allowable for the minimum age for the receipt of Social Security
benefits.

new text begin (b) The provisions of paragraph (a) do not apply to the members of the MERF
division.
new text end

Sec. 11.

Minnesota Statutes 2008, section 353.37, subdivision 2, is amended to read:


Subd. 2.

Suspension of annuity.

new text begin(a) new text endThe association shall suspend the annuity on
the first of the month after the month in which the salary of the reemployed annuitant
new text begin described in subdivision 1, paragraph (a), new text endexceeds the maximums set in subdivision 1,
new text begin paragraph (a), new text endbased only on those months in which the annuitant is actually employed
in nonelective public service in a position covered under this chapter or employment
with a labor organization that represents public employees who are deleted text beginassociationdeleted text end members
new text begin of a retirement plan new text endunder this chapternew text begin or chapter 353Enew text end.

new text begin (b) new text endAn annuitant who is elected to public office after retirement may hold new text beginthat new text endoffice
and receive an annuity otherwise payable from new text begina retirement plan administered by new text endthe
association.

Sec. 12.

Minnesota Statutes 2008, section 353.37, subdivision 3, is amended to read:


Subd. 3.

Reduction of annuity.

new text begin(a) new text endThe association shall reduce the amount
of the annuity of a person who has not reached the retirement age by one-half of the
amount in excess of the applicable reemployment income maximum under subdivision
1new text begin, paragraph (a)new text end.

new text begin (b) new text endThere is no reduction upon reemployment, regardless of income, for a person
who has reached the retirement age.

Sec. 13.

Minnesota Statutes 2008, section 353.37, subdivision 4, is amended to read:


Subd. 4.

Resumption of annuity.

The association shall resume paying a full
annuity to the reemployed annuitant new text begindescribed in subdivision 1, paragraph (a), new text endat the
start of each calendar year until the salary exceeds the maximums under subdivision 1,
new text begin paragraph (a), new text endor on the first of the month following new text beginthe new text endtermination of new text beginthe new text endemployment
which resulted in the suspension of the annuity. The executive director may adopt policies
regarding the suspension and reduction of annuities under this section.

Sec. 14.

Minnesota Statutes 2008, section 353.37, subdivision 5, is amended to read:


Subd. 5.

Effect on annuity.

Except as provided under this section, public service
performed by an annuitant new text begindescribed in subdivision 1, paragraph (a), new text endsubsequent to
retirement deleted text beginunder this chapterdeleted text end new text beginfrom the general employees retirement plan, the public
employees police and fire retirement plan, or the local government correctional employees
retirement plan
new text enddoes not increase or decrease the amount of an annuity. The annuitant shall
not make any further contributions to deleted text beginthe association'sdeleted text end new text begina new text enddefined benefit plan new text beginadministered
by the association
new text endby reason of this subsequent public service.

Sec. 15.

Minnesota Statutes 2008, section 353.46, subdivision 2, is amended to read:


Subd. 2.

Rights of deferred annuitant.

The deleted text beginrightdeleted text end new text beginentitlement new text endof a deferred
annuitant or other former member new text beginof the general employees retirement plan of the
Public Employees Retirement Association, the Minneapolis Employees Retirement Fund
division, the public employees police and fire retirement plan, or the local government
correctional employees retirement plan
new text endto receive an annuity under the law in effect at the
time deleted text beginsuchdeleted text end new text beginthe new text endperson terminated public service is herein preserveddeleted text begin; provided, however,deleted text endnew text begin.new text end
The provisions of section 353.71, subdivision 2, as amended by Laws 1973, chapter 753deleted text begin
shall
deleted text endnew text begin,new text end apply to a deferred annuitant or other former member who first begins receiving an
annuity after July 1, 1973.

Sec. 16.

Minnesota Statutes 2008, section 353.46, subdivision 6, is amended to read:


Subd. 6.

Computation of benefits for certain coordinated members.

Any
coordinated member new text beginof the general employees retirement plan of the Public Employees
Retirement Association
new text endwho deleted text beginprior todeleted text endnew text begin, beforenew text end July 1, 1979new text begin,new text end was a member of the new text beginformer
new text endcoordinated program of the new text beginformer new text endMinneapolis Municipal Employees Retirement
Fund and who deleted text beginprior todeleted text endnew text begin, beforenew text end July 1, 1978new text begin,new text end was a member of the basic program of the
Minneapolis Municipal Employees Retirement Fund deleted text beginshall:
deleted text end

deleted text begin (1) bedeleted text end new text beginis new text endentitled to receive a retirement annuity when otherwise qualified, the
calculation of which deleted text beginshalldeleted text end new text beginmust new text endutilize the formula accrual rates specified in section
422A.15, subdivision 1, for that portion of credited service which was rendered deleted text beginprior todeleted text end
new text begin before new text endJuly 1, 1978, and the formula accrual rates specified in section 353.29, subdivision
3, for the remainder of credited service, both applied to the average salary as specified
in section deleted text begin353.29, subdivision 2deleted text endnew text begin 353.01, subdivision 17anew text end. The formula accrual rates to
be used in calculating the retirement annuity deleted text beginshalldeleted text end new text beginmust new text endrecognize the service after July
1, 1978 as a member of the new text beginformer new text endcoordinated program of the new text beginformer new text endMinneapolis
Municipal Employees Retirement Fund and after July 1, 1979 as a member of the
new text begin general employees retirement plan of the new text endPublic Employees Retirement Association as
a continuation of service rendered deleted text beginprior todeleted text end new text beginbefore new text endJuly 1, 1978. The annuity amount
attributable to service as a member of the basic program of the new text beginformer new text endMinneapolis
Municipal Employees Retirement Fund deleted text beginshall bedeleted text end new text beginis new text endpayable deleted text beginbydeleted text end new text beginfrom new text endthe deleted text beginMinneapolis
Employees Retirement Fund
deleted text end new text beginMERF division new text endand the annuity amount attributable to all
other service deleted text beginshall bedeleted text end new text beginis new text endpayable deleted text beginbydeleted text end new text beginfrom the general employees retirement fund of new text endthe
Public Employees Retirement Associationdeleted text begin; deleted text endnew text begin.
new text end

deleted text begin (2) retain eligibility when otherwise qualified for a disability benefit from the
Minneapolis Employees Retirement Fund until July 1, 1982, notwithstanding coverage
by the Public Employees Retirement Association, if the member has or would, without
the transfer of retirement coverage from the basic program of the Minneapolis Municipal
Employees Retirement Fund to the coordinated program of the Minneapolis Municipal
Employees Retirement Fund or from the coordinated program of the Minneapolis
Municipal Employees Retirement Fund to the public employees retirement fund, have
sufficient credited service prior to January 1, 1983, to meet the minimum service
requirements for a disability benefit pursuant to section 422A.18. The disability benefit
amount attributable to service as a member of the basic program of the Minneapolis
Municipal Employees Retirement Fund shall be payable by the Minneapolis Employees
Retirement Fund and the disability benefit amount attributable to all other service shall be
payable by the Public Employees Retirement Association.
deleted text end

Sec. 17.

new text begin [353.50] MERF CONSOLIDATION ACCOUNT; ESTABLISHMENT
AND OPERATION.
new text end

new text begin Subdivision 1. new text end

new text begin Administrative consolidation. new text end

new text begin (a) Notwithstanding any provision
of this chapter or chapter 422A to the contrary, the administration of the Minneapolis
Employees Retirement Fund as the MERF division is transferred to the Public Employees
Retirement Association board of trustees. The assets, service credit, and benefit liabilities
of the Minneapolis Employees Retirement Fund transfer to the MERF division account
within the general employees retirement plan of the Public Employees Retirement
Association established by section 353.27, subdivision 1a, on July 1, 2010.
new text end

new text begin (b) The creation of the MERF division must not be construed to alter the Social
Security or Medicare coverage of any member of the former Minneapolis Employees
Retirement Fund on June 29, 2010, while employed in a position covered under the MERF
division of the Public Employees Retirement Association.
new text end

new text begin Subd. 2. new text end

new text begin Membership transfer. new text end

new text begin Effective June 30, 2010, the active, inactive, and
retired members of the Minneapolis Employees Retirement Fund are transferred to the
MERF division administered by the Public Employees Retirement Association and are no
longer members of the Minneapolis Employees Retirement Fund.
new text end

new text begin Subd. 3. new text end

new text begin Service credit and benefit liability transfer. new text end

new text begin (a) All allowable service
credit and salary credit of the members of the Minneapolis Employees Retirement Fund
as specified in the records of the Minneapolis Employees Retirement Fund through June
30, 2010, are transferred to the MERF division of the Public Employees Retirement
Association and are credited by the MERF division. Annuities or benefits of persons
who are active members of the former Minneapolis Employees Retirement Fund on
June 30, 2010, must be calculated under Minnesota Statutes 2008, sections 422A.11;
422A.12; 422A.13; 422A.14; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16;
422A.17; 422A.18; 422A.19; 422A.20; and 422A.23, but are only eligible for automatic
postretirement adjustments after December 31, 2010, under section 356.415.
new text end

new text begin (b) The liability for the payment of annuities and benefits of the Minneapolis
Employees Retirement Fund retirees and benefit recipients as specified in the records
of the Minneapolis Employees Retirement Fund on June 29, 2010, is transferred to the
MERF division of the Public Employees Retirement Association on June 30, 2010.
new text end

new text begin Subd. 4. new text end

new text begin Records transfer. new text end

new text begin On June 30, 2010, the executive director of the
Minneapolis Employees Retirement Fund shall transfer all records and documents relating
to the Minneapolis Employees Retirement Fund and its benefit plan to the executive
director of the Public Employees Retirement Association. To the extent possible, original
copies of all records and documents must be transferred.
new text end

new text begin Subd. 5. new text end

new text begin Transfer of title to assets. new text end

new text begin On June 30, 2010, legal title to the assets of
the Minneapolis Employees Retirement Fund transfers to the State Board of Investment
and the assets must be invested under section 11A.14, as assets of the MERF division of
the Public Employees Retirement Association. The MERF division is the successor in
interest to all claims that the former Minneapolis Employees Retirement Fund may have
or may assert against any person and is the successor in interest to all claims which could
have been asserted against the former Minneapolis Employees Retirement Fund, but the
MERF division is not liable for any claim against the former Minneapolis Employees
Retirement Fund, its former governing board, or its former administrative staff acting in a
fiduciary capacity under chapter 356A or under common law, which is founded upon a
claim of breach of fiduciary duty, but where the act or acts constituting the claimed breach
were not undertaken in good faith, the Public Employees Retirement Association may
assert any applicable defense to any claim in any judicial or administrative proceeding
that the former Minneapolis Employees Retirement Fund, its former board, or its
former administrative staff would otherwise have been entitled to assert, and the Public
Employees Retirement Association may assert any applicable defense that it has in its
capacity as a statewide agency.
new text end

new text begin Subd. 6. new text end

new text begin Benefits. new text end

new text begin (a) The annuities and benefits of, or attributable to, retired,
disabled, deferred, or inactive Minneapolis Employees Retirement Fund members
with that status as of June 30, 2010, with the exception of post-December 31, 2010,
postretirement adjustments, which are governed by paragraph (b), as calculated under
Minnesota Statutes 2008, sections 422A.11; 422A.12; 422A.13; 422A.14; 422A.15;
422A.151; 422A.155; 422A.156; 422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and
422A.23, continue in force after the administrative consolidation under this article.
new text end

new text begin (b) After December 31, 2010, annuities and benefits from the MERF division are
eligible for annual automatic postretirement adjustments solely under section 356.415.
new text end

new text begin Subd. 7. new text end

new text begin MERF division account contributions. new text end

new text begin (a) After June 30, 2010, the
member and employer contributions to the MERF division account are governed by this
subdivision.
new text end

new text begin (b) An active member covered by the MERF division must make an employee
contribution of 9.75 percent of the total salary of the member as defined in section 353.01,
subdivision 10. The employee contribution must be made by payroll deduction by the
member's employing unit under section 353.27, subdivision 4, and is subject to the
provisions of section 353.27, subdivisions 7, 7a, 7b, 12, 12a, and 12b.
new text end

new text begin (c) The employer regular contribution to the MERF division account with respect
to an active MERF division member is 9.75 percent of the total salary of the member as
defined in section 353.01, subdivision 10.
new text end

new text begin (d) The employer additional contribution to the MERF division account with respect
to an active member of the MERF division is 2.68 percent of the total salary of the member
as defined in section 353.01, subdivision 10, plus the employing unit's share of $3,900,000
that the employing unit paid or is payable to the former Minneapolis Employees
Retirement Fund under Minnesota Statutes 2008, section 422A.101, subdivision 1a, 2,
or 2a, during calendar year 2009, as was certified by the former executive director of the
former Minneapolis Employees Retirement Fund.
new text end

new text begin (e) Annually after June 30, 2012, the employer supplemental contribution to
the MERF division account by the city of Minneapolis, Special School District No. 1,
Minneapolis, a Minneapolis-owned public utility, improvement, or municipal activity,
Hennepin county, the Metropolitan Council, the Metropolitan Airports Commission,
and the Minnesota State Colleges and Universities system is the amount by which the
total actuarial required contribution determined under section 356.215 by the approved
actuary retained by the Public Employees Retirement Association in the most recent
actuarial valuation of the MERF division and based on a June 30, 2031, amortization
date, after subtracting the contributions under paragraphs (b), (c), and (d), exceeds
$36,500,000. Unless the various employing units agree to a different allocation and file
that agreement with the executive director by August 15 for the following calendar year,
each employing unit's share of the total employer supplemental contribution amount
is equal to its percentage share of the total amount allocated under Minnesota Statutes
2008, section 422A.101, subdivision 3, payable for calendar year 2009. The initial total
actuarial required contribution after June 30, 2012, must be calculated using the mortality
assumption change recommended on September 30, 2009, for the Minneapolis Employees
Retirement Fund by the approved consulting actuary retained by the Minneapolis
Employees Retirement Fund board.
new text end

new text begin (f) Notwithstanding any provision of paragraph (c), (d), or (e) to the contrary, as of
August 1 annually, if the amount of the retirement annuities and benefits paid from the
MERF division account during the preceding fiscal year, multiplied by the factor of 1.035,
exceeds the market value of the assets of the MERF division account on the preceding June
30, plus state aid of $9,000,000 or $36,500,000, whichever applies, and plus the amounts
payable under paragraphs (b), (c), (d), and (e) during the preceding fiscal year, multiplied
by the factor of 1.035, the balance calculated is a special additional employer contribution.
The special additional employer contribution under this paragraph is payable in addition
to any employer contribution required under paragraphs (c), (d), and (e), and is payable on
or before the next following June 30. The special additional employer contribution under
this paragraph must be allocated between the city of Minneapolis, Special School District
No. 1, Minneapolis, any Minneapolis-owned public utility, improvement, or municipal
activity, the Minnesota State Colleges and Universities system, Hennepin County, the
Metropolitan Council, and the Metropolitan Airports Commission in proportion to their
share of the actuarial accrued liability of the former Minneapolis Employees Retirement
Fund as of July 1, 2009, as calculated by the approved actuary retained under section
356.214 as part of the actuarial valuation prepared as of July 1, 2009, under section
356.215 and the Standards for Actuarial Work adopted by the Legislative Commission on
Pensions and Retirement.
new text end

new text begin (g) The employer contributions under paragraphs (c), (d), and (e) must be paid as
provided in section 353.28.
new text end

new text begin (h) Contributions under this subdivision are subject to the provisions of section
353.27, subdivisions 4, 7, 7a, 7b, 11, 12, 12a, 12b, 13, and 14.
new text end

new text begin Subd. 7a. new text end

new text begin Minneapolis Municipal Retirement Association dues. new text end

new text begin If authorized
by an annuitant or retirement benefit recipient in writing on a form prescribed by the
executive director of the Public Employees Retirement Association, the executive director
shall deduct the dues for the Minneapolis Municipal Retirement Association from the
person's annuity or retirement benefit. This dues deduction authority expires upon the
eventual full consolidation of the MERF account under subdivision 8.
new text end

new text begin Subd. 8. new text end

new text begin Eventual full consolidation. new text end

new text begin (a) Once the fiscal year end market value
of assets of the MERF division account equals or exceeds 80 percent of the actuarial
accrued liability of the MERF division as calculated by the approved actuary retained by
the Public Employees Retirement Association under section 356.215 and the Standards
for Actuarial Work adopted by the Legislative Commission on Pensions and Retirement,
the MERF division must be merged with the general employees retirement plan of the
Public Employees Retirement Association and the MERF division account ceases as a
separate account within the general employees retirement fund of the Public Employees
Retirement Association.
new text end

new text begin (b) If the market value of the MERF division account is less than 100 percent of the
actuarial accrued liability of the MERF division under paragraph (a), the total employer
contribution of employing units referenced in subdivision 7, paragraph (e), for the period
after the full consolidation and June 30, 2031, to amortize on a level annual dollar payment
the remaining unfunded actuarial accrued liability of the former MERF division account
on the full consolidation date by June 30, 2031, shall be calculated by the consulting
actuary retained under section 356.214 using the applicable postretirement interest rate
actuarial assumption for the general employees retirement plan under section 356.215.
The actuarial accrued liability of the MERF division must be calculated using the healthy
retired life mortality assumption applicable to the general employees retirement plan.
new text end

new text begin (c) The merger shall occur as of the first day of the first month after the date on
which the triggering actuarial valuation report is filed with the executive director of the
Legislative Commission on Pensions and Retirement.
new text end

new text begin (d) The executive director of the Public Employees Retirement Association shall
prepare proposed legislation fully implementing the merger and updating the applicable
provisions of chapters 353 and 356 and transmit the proposed legislation to the executive
director of the Legislative Commission on Pensions and Retirement by the following
February 15.
new text end

new text begin Subd. 9. new text end

new text begin Merger of former MERF membership groups into PERA-general.
new text end

new text begin If provided for in an agreement between the board of trustees of the Public Employees
Retirement Association and the governing board of an employing unit formerly with
retirement coverage provided for its employees by the former Minneapolis Employees
Retirement Fund, an employing unit may transfer sufficient assets to the general
employees retirement fund to cover the anticipated actuarial accrued liability for its
current or former employees that is in excess of MERF division account assets attributable
to those employees, have those employees be considered full members of the general
employees retirement plan, and be relieved of any further contribution obligation to the
general employees retirement plan for those employees under this section. Any agreement
under this subdivision and any actuarial valuation report related to a merger under this
subdivision must be submitted to the executive director of the Legislative Commission on
Pensions and Retirement for comment prior to the final execution.
new text end

Sec. 18.

Minnesota Statutes 2008, section 353.64, subdivision 7, is amended to read:


Subd. 7.

Pension coverage for deleted text begincertaindeleted text end public safety employees of deleted text beginthedeleted text end
Metropolitan Airports Commission.

Any person first employed as either a full-time
firefighter or a full-time police officer by the Metropolitan Airports Commission deleted text beginafter June
30, 1978,
deleted text end who is not eligible for coverage under the agreement signed between the state
and the secretary of the federal Department of Health and Human Services making the
provisions of the federal Old Age, Survivors, and Disability Insurance Act applicable to
municipal employees because that position is excluded from application deleted text beginpursuant todeleted text end new text beginunder
new text endTitle 42, United States Code, Sections 418 (d) (5) (A) and 418 (d) (8) (D) and section
355.07, deleted text beginshall not be a member of the Minneapolis Employees Retirement Fund but shall
be
deleted text end new text beginis new text enda member of the public employees police and fire fund and deleted text beginshall bedeleted text end new text beginis new text enddeemed to be a
firefighter or a police officer within the meaning of this section. The Metropolitan Airports
Commission shall make the employer contribution required deleted text beginpursuant todeleted text end new text beginunder new text endsection
353.65, subdivision 3, with respect to each of its firefighters or police officers covered
by the public employees police and fire fund and shall meet the employers recording and
reporting requirements set forth in section 353.65, subdivision 4.

Sec. 19.

Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to read:


Subd. 8.

Interest and salary assumptions.

(a) The actuarial valuation must use
the applicable following preretirement interest assumption and the applicable following
postretirement interest assumption:

plan
preretirement
interest rate
assumption
postretirement
interest rate
assumption
general state employees retirement plan
8.5%
6.0%
correctional state employees retirement plan
8.5
6.0
State Patrol retirement plan
8.5
6.0
legislators retirement plan
8.5
6.0
elective state officers retirement plan
8.5
6.0
judges retirement plan
8.5
6.0
general public employees retirement plan
8.5
6.0
public employees police and fire retirement plan
8.5
6.0
local government correctional service retirement
plan
8.5
6.0
teachers retirement plan
8.5
6.0
deleted text begin Minneapolis employees retirement plan
deleted text end
deleted text begin 6.0
deleted text end
deleted text begin 5.0
deleted text end
Duluth teachers retirement plan
8.5
8.5
St. Paul teachers retirement plan
8.5
8.5
Minneapolis Police Relief Association
6.0
6.0
Fairmont Police Relief Association
5.0
5.0
Minneapolis Fire Department Relief Association
6.0
6.0
Virginia Fire Department Relief Association
5.0
5.0
Bloomington Fire Department Relief Association
6.0
6.0
local monthly benefit volunteer firefighters relief
associations
5.0
5.0

(b) Before July 1, 2010, the actuarial valuation must use the applicable following
single rate future salary increase assumption, the applicable following modified single
rate future salary increase assumption, or the applicable following graded rate future
salary increase assumption:

(1) single rate future salary increase assumption

plan
future salary
increase assumption
legislators retirement plan
5.0%
judges retirement plan
4.0
Minneapolis Police Relief Association
4.0
Fairmont Police Relief Association
3.5
Minneapolis Fire Department Relief
Association
4.0
Virginia Fire Department Relief Association
3.5
Bloomington Fire Department Relief
Association
4.0

deleted text begin (2) modified single rate future salary increase assumption
deleted text end

deleted text begin plan
deleted text end
deleted text begin future salary
increase assumption
deleted text end
deleted text begin Minneapolis employees
retirement plan
deleted text end
deleted text begin the prior calendar year amount increased
first by 1.0198 percent to prior fiscal year
date and then increased by 4.0 percent
annually for each future year
deleted text end

deleted text begin (3)deleted text end new text begin(2) new text endselect and ultimate future salary increase assumption or graded rate future
salary increase assumption

plan
future salary
increase assumption
general state employees retirement plan
select calculation and
assumption A
correctional state employees retirement plan
assumption H
State Patrol retirement plan
assumption G
general public employees retirement plan
select calculation and
assumption B
public employees police and fire fund retirement plan
assumption C
local government correctional service retirement plan
assumption G
teachers retirement plan
assumption D
Duluth teachers retirement plan
assumption E
St. Paul teachers retirement plan
assumption F

The select calculation is: during the
designated select period, a designated
percentage rate is multiplied by the result of
the designated integer minus T, where T is the
number of completed years of service, and is
added to the applicable future salary increase
assumption. The designated select period is
five years and the designated integer is five
for the general state employees retirement
plan and the general public employees
retirement plan. The designated select period
is ten years and the designated integer is ten
for all other retirement plans covered by
this clause. The designated percentage rate
is: (1) 0.2 percent for the correctional state
employees retirement plan, the State Patrol
retirement plan, the public employees police
and fire plan, and the local government
correctional service plan; (2) 0.6 percent
for the general state employees retirement
plan and the general public employees
retirement plan; and (3) 0.3 percent for the
teachers retirement plan, the Duluth Teachers
Retirement Fund Association, and the St.
Paul Teachers Retirement Fund Association.
The select calculation for the Duluth Teachers
Retirement Fund Association is 8.00 percent
per year for service years one through seven,
7.25 percent per year for service years seven
and eight, and 6.50 percent per year for
service years eight and nine.

The ultimate future salary increase assumption is:

age
A
B
C
D
E
F
G
H
16
5.95%
5.95%
11.00%
7.70%
8.00%
6.90%
7.7500%
7.2500%
17
5.90
5.90
11.00
7.65
8.00
6.90
7.7500
7.2500
18
5.85
5.85
11.00
7.60
8.00
6.90
7.7500
7.2500
19
5.80
5.80
11.00
7.55
8.00
6.90
7.7500
7.2500
20
5.75
5.40
11.00
5.50
6.90
6.90
7.7500
7.2500
21
5.75
5.40
11.00
5.50
6.90
6.90
7.1454
6.6454
22
5.75
5.40
10.50
5.50
6.90
6.90
7.0725
6.5725
23
5.75
5.40
10.00
5.50
6.85
6.85
7.0544
6.5544
24
5.75
5.40
9.50
5.50
6.80
6.80
7.0363
6.5363
25
5.75
5.40
9.00
5.50
6.75
6.75
7.0000
6.5000
26
5.75
5.36
8.70
5.50
6.70
6.70
7.0000
6.5000
27
5.75
5.32
8.40
5.50
6.65
6.65
7.0000
6.5000
28
5.75
5.28
8.10
5.50
6.60
6.60
7.0000
6.5000
29
5.75
5.24
7.80
5.50
6.55
6.55
7.0000
6.5000
30
5.75
5.20
7.50
5.50
6.50
6.50
7.0000
6.5000
31
5.75
5.16
7.30
5.50
6.45
6.45
7.0000
6.5000
32
5.75
5.12
7.10
5.50
6.40
6.40
7.0000
6.5000
33
5.75
5.08
6.90
5.50
6.35
6.35
7.0000
6.5000
34
5.75
5.04
6.70
5.50
6.30
6.30
7.0000
6.5000
35
5.75
5.00
6.50
5.50
6.25
6.25
7.0000
6.5000
36
5.75
4.96
6.30
5.50
6.20
6.20
6.9019
6.4019
37
5.75
4.92
6.10
5.50
6.15
6.15
6.8074
6.3074
38
5.75
4.88
5.90
5.40
6.10
6.10
6.7125
6.2125
39
5.75
4.84
5.70
5.30
6.05
6.05
6.6054
6.1054
40
5.75
4.80
5.50
5.20
6.00
6.00
6.5000
6.0000
41
5.75
4.76
5.40
5.10
5.90
5.95
6.3540
5.8540
42
5.75
4.72
5.30
5.00
5.80
5.90
6.2087
5.7087
43
5.65
4.68
5.20
4.90
5.70
5.85
6.0622
5.5622
44
5.55
4.64
5.10
4.80
5.60
5.80
5.9048
5.4078
45
5.45
4.60
5.00
4.70
5.50
5.75
5.7500
5.2500
46
5.35
4.56
4.95
4.60
5.40
5.70
5.6940
5.1940
47
5.25
4.52
4.90
4.50
5.30
5.65
5.6375
5.1375
48
5.15
4.48
4.85
4.50
5.20
5.60
5.5822
5.0822
49
5.05
4.44
4.80
4.50
5.10
5.55
5.5404
5.0404
50
4.95
4.40
4.75
4.50
5.00
5.50
5.5000
5.0000
51
4.85
4.36
4.75
4.50
4.90
5.45
5.4384
4.9384
52
4.75
4.32
4.75
4.50
4.80
5.40
5.3776
4.8776
53
4.65
4.28
4.75
4.50
4.70
5.35
5.3167
4.8167
54
4.55
4.24
4.75
4.50
4.60
5.30
5.2826
4.7826
55
4.45
4.20
4.75
4.50
4.50
5.25
5.2500
4.7500
56
4.35
4.16
4.75
4.50
4.40
5.20
5.2500
4.7500
57
4.25
4.12
4.75
4.50
4.30
5.15
5.2500
4.7500
58
4.25
4.08
4.75
4.60
4.20
5.10
5.2500
4.7500
59
4.25
4.04
4.75
4.70
4.10
5.05
5.2500
4.7500
60
4.25
4.00
4.75
4.80
4.00
5.00
5.2500
4.7500
61
4.25
4.00
4.75
4.90
3.90
5.00
5.2500
4.7500
62
4.25
4.00
4.75
5.00
3.80
5.00
5.2500
4.7500
63
4.25
4.00
4.75
5.10
3.70
5.00
5.2500
4.7500
64
4.25
4.00
4.75
5.20
3.60
5.00
5.2500
4.7500
65
4.25
4.00
4.75
5.20
3.50
5.00
5.2500
4.7500
66
4.25
4.00
4.75
5.20
3.50
5.00
5.2500
4.7500
67
4.25
4.00
4.75
5.20
3.50
5.00
5.2500
4.7500
68
4.25
4.00
4.75
5.20
3.50
5.00
5.2500
4.7500
69
4.25
4.00
4.75
5.20
3.50
5.00
5.2500
4.7500
70
4.25
4.00
4.75
5.20
3.50
5.00
5.2500
4.7500
71
4.25
4.00
5.20

(c) Before July 2, 2010, the actuarial valuation must use the applicable following
payroll growth assumption for calculating the amortization requirement for the unfunded
actuarial accrued liability where the amortization retirement is calculated as a level
percentage of an increasing payroll:

plan
payroll growth
assumption
general state employees retirement plan
4.50%
correctional state employees retirement plan
4.50
State Patrol retirement plan
4.50
legislators retirement plan
4.50
judges retirement plan
4.00
general public employees retirement plan
4.50
public employees police and fire retirement plan
4.50
local government correctional service retirement
plan
4.50
teachers retirement plan
4.50
Duluth teachers retirement plan
4.50
St. Paul teachers retirement plan
5.00

(d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to
apply, unless a different salary assumption or a different payroll increase assumption:

(1) has been proposed by the governing board of the applicable retirement plan;

(2) is accompanied by the concurring recommendation of the actuary retained under
section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the
most recent actuarial valuation report if section 356.214 does not apply; and

(3) has been approved or deemed approved under subdivision 18.

Sec. 20.

Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11,
is amended to read:


Subd. 11.

Amortization contributions.

(a) In addition to the exhibit indicating
the level normal cost, the actuarial valuation of the retirement plan must contain an
exhibit for financial reporting purposes indicating the additional annual contribution
sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit
for contribution determination purposes indicating the additional contribution sufficient
to amortize the unfunded actuarial accrued liability. For the retirement plans listed in
subdivision 8, paragraph (c), new text beginbut excluding the MERF division of the Public Employees
Retirement Association,
new text endthe additional contribution must be calculated on a level
percentage of covered payroll basis by the established date for full funding in effect when
the valuation is prepared, assuming annual payroll growth at the applicable percentage
rate set forth in subdivision 8, paragraph (c). For all other retirement plansnew text begin and for the
MERF division of the Public Employees Retirement Association
new text end, the additional annual
contribution must be calculated on a level annual dollar amount basis.

(b) For any retirement plan other than deleted text beginthe Minneapolis Employees Retirement Fund,
the general employees
deleted text end new text begina new text endretirement plan deleted text beginof the Public Employees Retirement Association,
and the St. Paul Teachers Retirement Fund Association
deleted text endnew text begin governed by paragraph (d), (e),
(f), (g), (h), (i), or (j)
new text end, if there has not been a change in the actuarial assumptions used
for calculating the actuarial accrued liability of the fund, a change in the benefit plan
governing annuities and benefits payable from the fund, a change in the actuarial cost
method used in calculating the actuarial accrued liability of all or a portion of the fund, or
a combination of the three, which change or changes by itself or by themselves without
inclusion of any other items of increase or decrease produce a net increase in the unfunded
actuarial accrued liability of the fund, the established date for full funding is the first
actuarial valuation date occurring after June 1, 2020.

(c) For any retirement plan other than the deleted text beginMinneapolis Employees Retirement
Fund and the
deleted text end general employees retirement plan of the Public Employees Retirement
Association, if there has been a change in any or all of the actuarial assumptions used
for calculating the actuarial accrued liability of the fund, a change in the benefit plan
governing annuities and benefits payable from the fund, a change in the actuarial cost
method used in calculating the actuarial accrued liability of all or a portion of the fund,
or a combination of the three, and the change or changes, by itself or by themselves and
without inclusion of any other items of increase or decrease, produce a net increase in the
unfunded actuarial accrued liability in the fund, the established date for full funding must
be determined using the following procedure:

(i) the unfunded actuarial accrued liability of the fund must be determined in
accordance with the plan provisions governing annuities and retirement benefits and the
actuarial assumptions in effect before an applicable change;

(ii) the level annual dollar contribution or level percentage, whichever is applicable,
needed to amortize the unfunded actuarial accrued liability amount determined under item
(i) by the established date for full funding in effect before the change must be calculated
using the interest assumption specified in subdivision 8 in effect before the change;

(iii) the unfunded actuarial accrued liability of the fund must be determined in
accordance with any new plan provisions governing annuities and benefits payable from
the fund and any new actuarial assumptions and the remaining plan provisions governing
annuities and benefits payable from the fund and actuarial assumptions in effect before
the change;

(iv) the level annual dollar contribution or level percentage, whichever is applicable,
needed to amortize the difference between the unfunded actuarial accrued liability amount
calculated under item (i) and the unfunded actuarial accrued liability amount calculated
under item (iii) over a period of 30 years from the end of the plan year in which the
applicable change is effective must be calculated using the applicable interest assumption
specified in subdivision 8 in effect after any applicable change;

(v) the level annual dollar or level percentage amortization contribution under item
(iv) must be added to the level annual dollar amortization contribution or level percentage
calculated under item (ii);

(vi) the period in which the unfunded actuarial accrued liability amount determined
in item (iii) is amortized by the total level annual dollar or level percentage amortization
contribution computed under item (v) must be calculated using the interest assumption
specified in subdivision 8 in effect after any applicable change, rounded to the nearest
integral number of years, but not to exceed 30 years from the end of the plan year in
which the determination of the established date for full funding using the procedure set
forth in this clause is made and not to be less than the period of years beginning in the
plan year in which the determination of the established date for full funding using the
procedure set forth in this clause is made and ending by the date for full funding in effect
before the change; and

(vii) the period determined under item (vi) must be added to the date as of which
the actuarial valuation was prepared and the date obtained is the new established date
for full funding.

(d) For the deleted text beginMinneapolis Employees Retirement Funddeleted text endnew text begin MERF division of the Public
Employees Retirement Association
new text end, the established date for full funding is June 30, deleted text begin2020deleted text endnew text begin
2031
new text end.

(e) For the general employees retirement plan of the Public Employees Retirement
Association, the established date for full funding is June 30, 2031.

(f) For the Teachers Retirement Association, the established date for full funding is
June 30, 2037.

(g) For the correctional state employees retirement plan of the Minnesota State
Retirement System, the established date for full funding is June 30, 2038.

(h) For the judges retirement plan, the established date for full funding is June
30, 2038.

(i) For the public employees police and fire retirement plan, the established date
for full funding is June 30, 2038.

(j) For the St. Paul Teachers Retirement Fund Association, the established date for
full funding is June 30 of the 25th year from the valuation date. In addition to other
requirements of this chapter, the annual actuarial valuation shall contain an exhibit
indicating the funded ratio and the deficiency or sufficiency in annual contributions when
comparing liabilities to the market value of the assets of the fund as of the close of the
most recent fiscal year.

(k) For the retirement plans for which the annual actuarial valuation indicates an
excess of valuation assets over the actuarial accrued liability, the valuation assets in
excess of the actuarial accrued liability must be recognized as a reduction in the current
contribution requirements by an amount equal to the amortization of the excess expressed
as a level percentage of pay over a 30-year period beginning anew with each annual
actuarial valuation of the plan.

Sec. 21.

Minnesota Statutes 2008, section 422A.101, subdivision 3, is amended to read:


Subd. 3.

State contributions.

(a) Subject to the limitation deleted text beginset forthdeleted text end in paragraph
(c), the state shall pay to the new text beginMERF division account of the Public Employees Retirement
Association with respect to the former
new text endMinneapolis Employees Retirement Fund annually
an amount equal to the amount calculated under paragraph (b).

(b) The payment amount is an amount equal to the financial requirements of the
deleted text begin Minneapolis Employees Retirement Funddeleted text end new text beginMERF division of the Public Employees
Retirement Association
new text endreported in the actuarial valuation of the deleted text beginfunddeleted text end new text begingeneral employees
retirement plan of the Public Employees Retirement Association
new text endprepared by the actuary
retained under section 356.214 consistent with section 356.215 for the most recent year
but based on a target date for full amortization of the unfunded actuarial accrued liabilities
by June 30, deleted text begin2020deleted text endnew text begin 2031new text end, less the amount of employee contributions required under section
deleted text begin 422A.10deleted text endnew text begin 353.50, subdivision 7, paragraph (b)new text end, and the amount of employer contributions
required under deleted text beginsubdivisions 1a, 2, and 2adeleted text endnew text begin section 353.50, subdivision 7, paragraphs (c)
and (d)
new text end. Payments deleted text beginshalldeleted text end new text beginmust new text endbe made September 15 annually.

(c) The annual state contribution under this subdivision may not exceed $9,000,000,
plus the cost of the annual supplemental benefit determined under new text beginMinnesota Statutes
2008,
new text endsection 356.43new text begin, through June 30, 2012, and may not exceed $9,000,000, plus the
cost of the annual supplemental benefit determined under Minnesota Statutes 2008, section
356.43, plus $27,500,000 annually after June 30, 2012, and until June 30, 2031
new text end.

(d) new text beginAnnually and after June 30, 2012,new text end if the amount determined under paragraph
(b) exceeds deleted text begin$9,000,000deleted text endnew text begin the applicable maximum amount specified in paragraph (c)new text end,
the excess must be allocated to and paid to the fund by the employers identified in
new text begin Minnesota Statutes 2008, section 422A.101, new text endsubdivisions 1a deleted text beginanddeleted text endnew text begin,new text end 2, new text beginand 2a new text enddeleted text beginother than
units of metropolitan government
deleted text end. Each employer's share of the excess is proportionate
to the employer's share of the fund's unfunded actuarial accrued liability as disclosed in
the annual actuarial valuation prepared by the actuary retained under section 356.214
compared to the total unfunded actuarial accrued liability new text beginas of July 1, 2009, new text endattributed
to all employers identified in new text beginMinnesota Statutes 2008, section 422A.101, new text endsubdivisions
1a and 2, other than units of metropolitan government. Payments must be made deleted text beginin equal
installments
deleted text end as set forth in paragraph (b).

new text begin (e) State contributions under this section end on September 15, 2031, or on
September 1 following the first date on which the current assets of the MERF division
of the Public Employees Retirement Association equal or exceed the actuarial accrued
liability of the MERF division of the Public Employees Retirement Association,
whichever occurs earlier.
new text end

Sec. 22.

Minnesota Statutes 2008, section 422A.26, is amended to read:


422A.26 COVERAGE BY THE PUBLIC EMPLOYEES RETIREMENT
ASSOCIATION.

Notwithstanding deleted text beginsection 422A.09, ordeleted text end any deleted text beginotherdeleted text end law to the contrary, any person
whose employment by, or assumption of a position as an appointed or elected officer
of, the city of Minneapolis, any of the boards, departments, or commissions operated
as a department of the city of Minneapolis or independently if financed in whole or in
part by funds of the city of Minneapolis, the Metropolitan Airports Commission, the
new text begin former new text endMinneapolis Employees Retirement Fund, or Special School District Number 1 if
the person is not a member of the deleted text beginMinneapolisdeleted text end Teachers Retirement deleted text beginFunddeleted text end Association
by virtue of that employment or position, initially commences on or after July 1, 1979
deleted text begin shall bedeleted text end new text beginis new text enda member of the new text begingeneral employees retirement plan of the new text endPublic Employees
Retirement Association unless excluded from membership deleted text beginpursuant todeleted text end new text beginunder new text endsection
353.01, subdivision 2b. deleted text beginIn no event shall there be any new members of the contributing
class of the Minneapolis employees fund on or after July 1, 1979.
deleted text end

Sec. 23. new text beginJULY 1, 2010, MERF DIVISION ACTUARIAL VALUATION
ASSUMPTIONS.
new text end

new text begin The approved actuary retained by the Minneapolis Employees Retirement Fund shall
compare the actuarial assumptions to be used for the July 1, 2010, actuarial valuation of
the general employees retirement plan of the Public Employees Retirement Association
with the actuarial assumptions used to prepare the July 1, 2009, actuarial valuation of the
Minneapolis Employees Retirement Fund and, on or before July 1, 2010, shall recommend
to the approved actuary retained by the Public Employees Retirement Association and to
the Legislative Commission on Pensions and Retirement the actuarial assumptions that
the actuary believes would be appropriate for the MERF division portion of the actuarial
valuation of the general employees retirement plan of the Public Employees Retirement
Association. Any actuarial assumption changes related to the MERF division must be
approved under Minnesota Statutes, section 356.215, subdivision 18.
new text end

Sec. 24. new text beginMINNEAPOLIS MUNICIPAL RETIREMENT ASSOCIATION.
new text end

new text begin (a) The administrative consolidation of the former Minneapolis Employees
Retirement Fund into the general employees retirement plan of the Public Employees
Retirement Association and the merger of the MERF division of the Public Employees
Retirement Association into the general employees retirement plan of the Public
Employees Retirement Association does not affect the function of the Minneapolis
Municipal Retirement Association, a nonprofit corporation, to monitor the administration
of the retirement coverage for former members of the former Minneapolis Employees
Retirement Fund.
new text end

new text begin (b) Nothing in this article entitles the Minneapolis Municipal Retirement Association
to receive any revenue derived from taxes or obligates the Public Employees Retirement
Association to undertake any special duties with respect to the corporation.
new text end

Sec. 25. new text beginTRANSFER OF MERF EMPLOYEES.
new text end

new text begin (a) Unless the employee elects the severance pay option under paragraph (c),
full-time employees of the Minneapolis Employees Retirement Fund first employed
before June 30, 2008, and employed full time by the Minneapolis Employees Retirement
Fund on June 29, 2010, with the employment title of benefits coordinator, are transferred
to employment by the city of Minneapolis on July 1, 2010. The chief human relations
official of the city of Minneapolis shall place the transferred employee in an appropriate
employment position based on the employee's education and employment experience. The
transferred employee must have their accumulated, but unused, vacation and sick leave
balances as of June 30, 2010, posted to the individual accounts with the new employer.
The transferred employees must receive length of service credit for time served with the
Minneapolis Employees Retirement Fund. The transferred employee must be given the
opportunity as of the date of transfer to be covered for all health and other insurance
benefits offered by the new employer. Upon the transfer of the employee, the Minneapolis
Employees Retirement Fund shall transfer assets to the city of Minneapolis equal to the
present value of any accumulated unused vacation or sick leave balances as of the date
of transfer.
new text end

new text begin (b) Unless the employee elects the severance pay option under paragraph (c),
full-time employees of the Minneapolis Employees Retirement Fund first employed before
June 30, 2008, and employed full time by the Minneapolis Employees Retirement Fund
on June 29, 2010, with the employment title of accounting manager or accountant II are
transferred to employment by the Public Employees Retirement Association on July 1,
2010. The chief human relations official of the Public Employees Retirement Association
shall place the transferred employee in an appropriate employment position based on the
employee's education and employment experience. The transferred employee must have
their accumulated, but unused, vacation and sick leave balances as of June 30, 2010,
posted to the individual accounts with the new employer. The transferred employees
must receive length of service credit for time served with the Minneapolis Employees
Retirement Fund. The transferred employee must be given the opportunity as of the
date of transfer to be covered for all health and other insurance benefits offered by the
new employer. Upon the transfer of the employee, the executive director of the Public
Employees Retirement Association shall deduct from any assets transferred under section
353.50 an amount equal to the present value of any accumulated unused vacation or sick
leave balances as of the date of transfer.
new text end

new text begin (c) An employee covered by paragraph (a) or (b) who elects not to transfer to the
new employer unit is granted severance pay in an amount equivalent to one year of salary
based on the last annual salary rate received by the employee. The election must be
made prior to June 30, 2010, and is irrevocable. The severance pay is payable from the
Minneapolis Employees Retirement Fund on June 30, 2010.
new text end

Sec. 26. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin In the next and future editions of Minnesota Statutes, the revisor of statutes shall
renumber Minnesota Statutes, section 422A.101, subdivision 3, as Minnesota Statutes,
section 353.505, and shall renumber Minnesota Statutes, section 422A.26, as Minnesota
Statutes, section 353.855. The revisor of statutes shall make conforming changes in
Minnesota Statutes and Minnesota Rules consistent with the renumbering.
new text end

Sec. 27. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a;
356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, and 18;
422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6,
and 8; 422A.06, subdivisions 1, 2, 3, 5, 6, and 7; 422A.08, subdivision 1; 422A.09;
422A.10; 422A.101, subdivisions 1, 1a, 2, and 2a; 422A.11; 422A.12; 422A.13; 422A.14,
subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3,
4, 5, 6, 7, 8, 9, and 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, and 7; 422A.19;
422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, and 6; 422A.23, subdivisions 1, 2, 5, 6,
7, 8, 9, 10, 11, and 12; 422A.231; 422A.24; and 422A.25,
new text end new text begin are repealed.
new text end

new text begin Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; and
422A.08, subdivision 5,
new text end new text begin are repealed.
new text end

Sec. 28. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 27 are effective June 30, 2010.
new text end

ARTICLE 2

CONFORMING CHANGES

Section 1.

Minnesota Statutes 2009 Supplement, section 6.67, is amended to read:


6.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT.

Whenever a public accountant in the course of auditing the books and affairs of a
political subdivision or a local public pension plan governed by section 69.77, sections
69.771 to 69.775, or chapter 354A, deleted text begin422A,deleted text end 423B, 423C, or 424A, discovers evidence
pointing to nonfeasance, misfeasance, or malfeasance, on the part of an officer or
employee in the conduct of duties and affairs, the public accountant shall promptly make
a report of such discovery to the state auditor and the county attorney of the county in
which the governmental unit is situated and the public accountant shall also furnish a
copy of the report of audit upon completion to said officers. The county attorney shall
act on such report in the same manner as required by law for reports made to the county
attorney by the state auditor.

Sec. 2.

Minnesota Statutes 2008, section 11A.23, subdivision 4, is amended to read:


Subd. 4.

Covered retirement funds and plans.

The provisions of this section shall
apply to the following retirement funds and plans:

(1) Board of Trustees of the Minnesota State Colleges and Universities supplemental
retirement plan established under chapter 354C;

(2) state employees retirement fund established pursuant to chapter 352;

(3) correctional employees retirement plan established pursuant to chapter 352;

(4) State Patrol retirement fund established pursuant to chapter 352B;

(5) unclassified employees retirement plan established pursuant to chapter 352D;

(6) deleted text beginpublicdeleted text endnew text begin generalnew text end employees retirement fund established pursuant to chapter 353;

(7) public employees police and fire fund established pursuant to chapter 353;

(8) teachers' retirement fund established pursuant to chapter 354;

(9) judges' retirement fund established pursuant to chapter 490; and

(10) any other funds required by law to be invested by the board.

Sec. 3.

Minnesota Statutes 2008, section 13D.01, subdivision 1, is amended to read:


Subdivision 1.

In executive branch, local government.

All meetings, including
executive sessions, must be open to the public

(a) of a state

(1) agency,

(2) board,

(3) commission, or

(4) department,

when required or permitted by law to transact public business in a meeting;

(b) of the governing body of a

(1) school district however organized,

(2) unorganized territory,

(3) county,

(4) statutory or home rule charter city,

(5) town, or

(6) other public body;

(c) of any

(1) committee,

(2) subcommittee,

(3) board,

(4) department, or

(5) commission,

of a public body; and

(d) of the governing body or a committee of:

(1) a statewide public pension plan defined in section 356A.01, subdivision 24; or

(2) a local public pension plan governed by section 69.77, sections 69.771 to 69.775,
or chapter 354A, deleted text begin422A,deleted text end or 423B.

Sec. 4.

Minnesota Statutes 2008, section 43A.17, subdivision 9, is amended to read:


Subd. 9.

Political subdivision compensation limit.

(a) The salary and the value of
all other forms of compensation of a person employed by a political subdivision of this
state, excluding a school district, deleted text beginor employed under section 422A.03deleted text end may not exceed 110
percent of the salary of the governor as set under section 15A.082, except as provided
in this subdivision. For purposes of this subdivision, "political subdivision of this state"
includes a statutory or home rule charter city, county, town, metropolitan or regional
agency, or other political subdivision, but does not include a hospital, clinic, or health
maintenance organization owned by such a governmental unit.

(b) Beginning in 2006, the limit in paragraph (a) shall be adjusted annually in
January. The limit shall equal the limit for the prior year increased by the percentage
increase, if any, in the Consumer Price Index for all-urban consumers from October of the
second prior year to October of the immediately prior year.

(c) Deferred compensation and payroll allocations to purchase an individual annuity
contract for an employee are included in determining the employee's salary. Other forms
of compensation which shall be included to determine an employee's total compensation
are all other direct and indirect items of compensation which are not specifically excluded
by this subdivision. Other forms of compensation which shall not be included in a
determination of an employee's total compensation for the purposes of this subdivision are:

(1) employee benefits that are also provided for the majority of all other full-time
employees of the political subdivision, vacation and sick leave allowances, health and
dental insurance, disability insurance, term life insurance, and pension benefits or like
benefits the cost of which is borne by the employee or which is not subject to tax as
income under the Internal Revenue Code of 1986;

(2) dues paid to organizations that are of a civic, professional, educational, or
governmental nature; and

(3) reimbursement for actual expenses incurred by the employee which the
governing body determines to be directly related to the performance of job responsibilities,
including any relocation expenses paid during the initial year of employment.

The value of other forms of compensation shall be the annual cost to the political
subdivision for the provision of the compensation.

(d) The salary of a medical doctor or doctor of osteopathy occupying a position that
the governing body of the political subdivision has determined requires an M.D. or D.O.
degree is excluded from the limitation in this subdivision.

(e) The commissioner may increase the limitation in this subdivision for a position
that the commissioner has determined requires special expertise necessitating a higher
salary to attract or retain a qualified person. The commissioner shall review each
proposed increase giving due consideration to salary rates paid to other persons with
similar responsibilities in the state and nation. The commissioner may not increase the
limitation until the commissioner has presented the proposed increase to the Legislative
Coordinating Commission and received the commission's recommendation on it. The
recommendation is advisory only. If the commission does not give its recommendation
on a proposed increase within 30 days from its receipt of the proposal, the commission
is deemed to have made no recommendation. If the commissioner grants or granted an
increase under this paragraph, the new limitation shall be adjusted beginning in August
2005 and in each subsequent calendar year in January by the percentage increase equal to
the percentage increase, if any, in the Consumer Price Index for all-urban consumers from
October of the second prior year to October of the immediately prior year.

Sec. 5.

Minnesota Statutes 2008, section 43A.316, subdivision 8, is amended to read:


Subd. 8.

Continuation of coverage.

(a) A former employee of an employer
participating in the program who is receiving a public pension disability benefit or an
annuity or has met the age and service requirements necessary to receive an annuity under
chapter 353, 353C, 354, 354A, 356, deleted text begin422A,deleted text end 423, 423A, deleted text beginordeleted text end 424, new text beginor Minnesota Statutes
2008, chapter 422A,
new text endand the former employee's dependents, are eligible to participate in
the program. This participation is at the person's expense unless a collective bargaining
agreement or personnel policy provides otherwise. Premiums for these participants must
be established by the commissioner.

The commissioner may provide policy exclusions for preexisting conditions
only when there is a break in coverage between a participant's coverage under the
employment-based group insurance program and the participant's coverage under this
section. An employer shall notify an employee of the option to participate under this
paragraph no later than the effective date of retirement. The retired employee or the
employer of a participating group on behalf of a current or retired employee shall notify
the commissioner within 30 days of the effective date of retirement of intent to participate
in the program according to the rules established by the commissioner.

(b) The spouse of a deceased employee or former employee may purchase the
benefits provided at premiums established by the commissioner if the spouse was a
dependent under the employee's or former employee's coverage under this section at the
time of the death. The spouse remains eligible to participate in the program as long as
the group that included the deceased employee or former employee participates in the
program. Coverage under this clause must be coordinated with relevant insurance benefits
provided through the federally sponsored Medicare program.

(c) The program benefits must continue in the event of strike permitted by section
179A.18, if the exclusive representative chooses to have coverage continue and the
employee pays the total monthly premiums when due.

(d) A participant who discontinues coverage may not reenroll.

Persons participating under these paragraphs shall make appropriate premium
payments in the time and manner established by the commissioner.

Sec. 6.

Minnesota Statutes 2009 Supplement, section 69.011, subdivision 1, is
amended to read:


Subdivision 1.

Definitions.

Unless the language or context clearly indicates that
a different meaning is intended, the following words and terms, for the purposes of this
chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:

(a) "Commissioner" means the commissioner of revenue.

(b) "Municipality" means:

(1) a home rule charter or statutory city;

(2) an organized town;

(3) a park district subject to chapter 398;

(4) the University of Minnesota;

(5) for purposes of the fire state aid program only, an American Indian tribal
government entity located within a federally recognized American Indian reservation;

(6) for purposes of the police state aid program only, an American Indian tribal
government with a tribal police department which exercises state arrest powers under
section 626.90, 626.91, 626.92, or 626.93;

(7) for purposes of the police state aid program only, the Metropolitan Airports
Commission deleted text beginwith respect to peace officers covered under chapter 422Adeleted text end; and

(8) for purposes of the police state aid program only, the Department of Natural
Resources and the Department of Public Safety with respect to peace officers covered
under chapter 352B.

(c) "Minnesota Firetown Premium Report" means a form prescribed by the
commissioner containing space for reporting by insurers of fire, lightning, sprinkler
leakage and extended coverage premiums received upon risks located or to be performed
in this state less return premiums and dividends.

(d) "Firetown" means the area serviced by any municipality having a qualified fire
department or a qualified incorporated fire department having a subsidiary volunteer
firefighters' relief association.

(e) "Market value" means latest available market value of all property in a taxing
jurisdiction, whether the property is subject to taxation, or exempt from ad valorem
taxation obtained from information which appears on abstracts filed with the commissioner
of revenue or equalized by the State Board of Equalization.

(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the
commissioner for reporting by each fire and casualty insurer of all premiums received
upon direct business received by it in this state, or by its agents for it, in cash or otherwise,
during the preceding calendar year, with reference to insurance written for insuring against
the perils contained in auto insurance coverages as reported in the Minnesota business
schedule of the annual financial statement which each insurer is required to file with
the commissioner in accordance with the governing laws or rules less return premiums
and dividends.

(g) "Peace officer" means any person:

(1) whose primary source of income derived from wages is from direct employment
by a municipality or county as a law enforcement officer on a full-time basis of not less
than 30 hours per week;

(2) who has been employed for a minimum of six months prior to December 31
preceding the date of the current year's certification under subdivision 2, clause (b);

(3) who is sworn to enforce the general criminal laws of the state and local
ordinances;

(4) who is licensed by the Peace Officers Standards and Training Board and is
authorized to arrest with a warrant; and

(5) who is a member of deleted text begina local police relief association to which section 69.77
applies
deleted text endnew text begin the Minneapolis Police Relief Associationnew text end, the State Patrol retirement plan, new text beginor new text endthe
public employees police and fire funddeleted text begin, or the Minneapolis Employees Retirement Funddeleted text end.

(h) "Full-time equivalent number of peace officers providing contract service" means
the integral or fractional number of peace officers which would be necessary to provide
the contract service if all peace officers providing service were employed on a full-time
basis as defined by the employing unit and the municipality receiving the contract service.

(i) "Retirement benefits other than a service pension" means any disbursement
authorized under section 424A.05, subdivision 3, clauses (2) and (3).

(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person
who was elected or appointed to the specified position or, in the absence of the person,
another person who is designated by the applicable governing body. In a park district,
the clerk is the secretary of the board of park district commissioners. In the case of the
University of Minnesota, the clerk is that official designated by the Board of Regents.
For the Metropolitan Airports Commission, the clerk is the person designated by the
commission. For the Department of Natural Resources or the Department of Public Safety,
the clerk is the respective commissioner. For a tribal police department which exercises
state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the clerk is the person
designated by the applicable American Indian tribal government.

(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the
retirement plan established by chapter 353G.

Sec. 7.

Minnesota Statutes 2008, section 69.021, subdivision 10, is amended to read:


Subd. 10.

Reduction in police state aid apportionment.

(a) The commissioner of
revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph
(b), 6, and 7a, for eligible employer units by any excess police state aid.

(b) "Excess police state aid" is:

(1) for counties and for municipalities in which police retirement coverage is
provided wholly by the public employees police and fire fund and all police officers are
members of the plan governed by sections 353.63 to 353.657, the amount in excess of the
employer's total prior calendar year obligation as defined in paragraph (c), as certified by
the executive director of the Public Employees Retirement Association;

(2) for municipalities in which police retirement coverage is provided in part by the
public employees police and fire fund governed by sections 353.63 to 353.657 and in
part by a local police consolidation account governed by chapter 353A, and established
before March 2, 1999, for which the municipality declined merger under section 353.665,
subdivision 1
, or established after March 1, 1999, the amount in excess of the employer's
total prior calendar year obligation as defined in paragraph (c), plus the amount of the
employer's total prior calendar year obligation under section 353A.09, subdivision 5,
paragraphs (a) and (b), as certified by the executive director of the Public Employees
Retirement Association;

(3) for municipalities in which police retirement coverage is provided by the public
employees police and fire plan governed by sections 353.63 to 353.657, in which police
retirement coverage was provided by a police consolidation account under chapter
353A before July 1, 1999, and for which the municipality has an additional municipal
contribution under section 353.665, subdivision 8, paragraph (b), the amount in excess of
the employer's total prior calendar year obligation as defined in paragraph (c), plus the
amount of any additional municipal contribution under section 353.665, subdivision 8,
paragraph (b), until the year 2010, as certified by the executive director of the Public
Employees Retirement Association;

(4) for municipalities in which police retirement coverage is provided in part by the
public employees police and fire fund governed by sections 353.63 to 353.657 and in part
by a local police relief association governed by sections 69.77 and 423A.01, the amount
in excess of the employer's total prior calendar year obligation as defined in paragraph
(c), as certified by the executive director of the public employees retirement association,
plus the amount of the financial requirements of the relief association certified to the
applicable municipality during the prior calendar year under section 69.77, subdivisions 4
and 5
, reduced by the amount of member contributions deducted from the covered salary
of the relief association during the prior calendar year under section 69.77, subdivision 3,
as certified by the chief administrative officer of the applicable municipality;

(5) for the Metropolitan Airports Commission, deleted text beginif there are police officers hired
before July 1, 1978, with retirement coverage by the Minneapolis Employees Retirement
Fund remaining,
deleted text end the amount in excess of the commission's total prior calendar year
obligation as defined in paragraph (c), as certified by the executive director of the Public
Employees Retirement Associationdeleted text begin, plus the amount determined by expressing the
commission's total prior calendar year contribution to the Minneapolis Employees
Retirement Fund under section 422A.101, subdivisions 2 and 2a, as a percentage of
the commission's total prior calendar year covered payroll for commission employees
covered by the Minneapolis Employees Retirement Fund and applying that percentage
to the commission's total prior calendar year covered payroll for commission police
officers covered by the Minneapolis Employees Retirement Fund, as certified by the chief
administrative officer of the Metropolitan Airports Commission
deleted text end; and

(6) for the Department of Natural Resources and for the Department of Public
Safety, the amount in excess of the employer's total prior calendar year obligation under
section 352B.02, subdivision 1c, for plan members who are peace officers under section
69.011, subdivision 1, clause (g), as certified by the executive director of the Minnesota
State Retirement System.

(c) The employer's total prior calendar year obligation with respect to the public
employees police and fire plan is the total prior calendar year obligation under section
353.65, subdivision 3, for police officers as defined in section 353.64, subdivision 2,
and the actual total prior calendar year obligation under section 353.65, subdivision 3,
for firefighters, as defined in section 353.64, subdivision 3, but not to exceed for those
firefighters the applicable following amounts:

Municipality
Maximum Amount
Albert Lea
$54,157.01
Anoka
10,399.31
Apple Valley
5,442.44
Austin
49,864.73
Bemidji
27,671.38
Brooklyn Center
6,605.92
Brooklyn Park
24,002.26
Burnsville
15,956.00
Cloquet
4,260.49
Coon Rapids
39,920.00
Cottage Grove
8,588.48
Crystal
5,855.00
East Grand Forks
51,009.88
Edina
32,251.00
Elk River
5,216.55
Ely
13,584.16
Eveleth
16,288.27
Fergus Falls
6,742.00
Fridley
33,420.64
Golden Valley
11,744.61
Hastings
16,561.00
Hopkins
4,324.23
International Falls
14,400.69
Lakeville
782.35
Lino Lakes
5,324.00
Little Falls
7,889.41
Maple Grove
6,707.54
Maplewood
8,476.69
Minnetonka
10,403.00
Montevideo
1,307.66
Moorhead
68,069.26
New Hope
6,739.72
North St. Paul
4,241.14
Northfield
770.63
Owatonna
37,292.67
Plymouth
6,754.71
Red Wing
3,504.01
Richfield
53,757.96
deleted text begin Rosemont deleted text end new text begin Rosemount
new text end
1,712.55
Roseville
9,854.51
St. Anthony
33,055.00
St. Louis Park
53,643.11
Thief River Falls
28,365.04
Virginia
31,164.46
Waseca
11,135.17
West St. Paul
15,707.20
White Bear Lake
6,521.04
Woodbury
3,613.00
any other municipality
0.00

(d) The total amount of excess police state aid must be deposited in the excess
police state-aid account in the general fund, administered and distributed as provided
in subdivision 11.

Sec. 8.

Minnesota Statutes 2009 Supplement, section 69.031, subdivision 5, is
amended to read:


Subd. 5.

Deposit of state aid.

(a) If the municipality or the independent nonprofit
firefighting corporation is covered by the voluntary statewide lump-sum volunteer
firefighter retirement plan under chapter 353G, the executive director shall credit the fire
state aid against future municipal contribution requirements under section 353G.08 and
shall notify the municipality or independent nonprofit firefighting corporation of the fire
state aid so credited at least annually. If the municipality or the independent nonprofit
firefighting corporation is not covered by the voluntary statewide lump-sum volunteer
firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt,
transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief
association if there is one organized and the association has filed a financial report with the
municipality. If the relief association has not filed a financial report with the municipality,
the municipal treasurer shall delay transmission of the fire state aid to the relief association
until the complete financial report is filed. If the municipality or independent nonprofit
firefighting corporation is not covered by the voluntary statewide lump-sum volunteer
firefighter retirement plan, if there is no relief association organized, or if the association
has dissolved or has been removed as trustees of state aid, then the treasurer of the
municipality shall deposit the money in the municipal treasury and the money may be
disbursed only for the purposes and in the manner set forth in section 424A.08 or for the
payment of the employer contribution requirement with respect to firefighters covered by
the public employees police and fire retirement plan under section 353.65, subdivision 3.

(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the
police state aid in the following manner:

(1) For a municipality in which a local police relief association exists and all peace
officers are members of the association, the total state aid must be transmitted to the
treasurer of the relief association within 30 days of the date of receipt, and the treasurer
of the relief association shall immediately deposit the total state aid in the special fund
of the relief association;

(2) For a municipality in which police retirement coverage is provided by the public
employees police and fire fund and all peace officers are members of the fund, including
municipalities covered by section 353.665, the total state aid must be applied toward the
municipality's employer contribution to the public employees police and fire fund under
sections 353.65, subdivision 3, and 353.665, subdivision 8, paragraph (b), if applicable; or

(3) For a municipality other than a city of the first class with a population of more
than 300,000 in which both a police relief association exists and police retirement
coverage is provided in part by the public employees police and fire fund, the municipality
may elect at its option to transmit the total state aid to the treasurer of the relief association
as provided in clause (1), to use the total state aid to apply toward the municipality's
employer contribution to the public employees police and fire fund subject to all the
provisions set forth in clause (2), or to allot the total state aid proportionately to be
transmitted to the police relief association as provided in this subdivision and to apply
toward the municipality's employer contribution to the public employees police and fire
fund subject to the provisions of clause (2) on the basis of the respective number of active
full-time peace officers, as defined in section 69.011, subdivision 1, clause (g).

For a city of the first class with a population of more than 300,000, in addition, the
city may elect to allot the appropriate portion of the total police state aid to apply toward
the employer contribution of the city to the public employees police and fire fund based
on the covered salary of police officers covered by the fund each payroll period and to
transmit the balance to the police relief association; or

(4) For a municipality in which police retirement coverage is provided in part by
the public employees police and fire fund and in part by a local police consolidation
account governed by chapter 353A and established before March 2, 1999, for which the
municipality declined merger under section 353.665, subdivision 1, or established after
March 1, 1999, the total police state aid must be applied towards the municipality's total
employer contribution to the public employees police and fire fund and to the local police
consolidation account under sections 353.65, subdivision 3, and 353A.09, subdivision 5.

(c) The county treasurer, upon receipt of the police state aid for the county, shall
apply the total state aid toward the county's employer contribution to the public employees
police and fire fund under section 353.65, subdivision 3.

(d) The designated Metropolitan Airports Commission official, upon receipt of the
police state aid for the Metropolitan Airports Commission, shall apply the total police
state aid deleted text beginfirstdeleted text end toward the commission's employer contribution for police officers to the
deleted text begin Minneapolis Employees Retirement Fund under section 422A.101, subdivision 2a, and, if
there is any amount of police state aid remaining, shall apply that remainder toward the
commission's employer contribution for police officers to the
deleted text end public employees police and
fire plan under section 353.65, subdivision 3.

(e) The police state aid apportioned to the Departments of Public Safety and Natural
Resources under section 69.021, subdivision 7a, is appropriated to the commissioner
of management and budget for transfer to the funds and accounts from which the
salaries of peace officers certified under section 69.011, subdivision deleted text begin2adeleted text endnew text begin 2bnew text end, are paid.
The commissioner of revenue shall certify to the commissioners of public safety,
natural resources, and management and budget the amounts to be transferred from the
appropriation for police state aid. The commissioners of public safety and natural
resources shall certify to the commissioner of management and budget the amounts to be
credited to each of the funds and accounts from which the peace officers employed by their
respective departments are paid. Each commissioner shall allocate the police state aid first
for employer contributions for employees funded from the general fund and then for
employer contributions for employees funded from other funds. For peace officers whose
salaries are paid from the general fund, the amounts transferred from the appropriation
for police state aid must be canceled to the general fund.

Sec. 9.

Minnesota Statutes 2008, section 126C.41, subdivision 3, is amended to read:


Subd. 3.

Retirement levies.

(a) In 1991 and each year thereafter, a district to which
this subdivision applies may levy an additional amount required for contributions to the
new text begin general employees retirement plan of the Public Employees Retirement Association as the
successor of the
new text endMinneapolis Employees Retirement Fund as a result of the maximum
dollar amount limitation on state contributions to deleted text beginthe funddeleted text end new text beginthat plan new text endimposed under
section 422A.101, subdivision 3. The additional levy must not exceed the most recent
amount certified by the deleted text beginboard of the Minneapolis Employees Retirement Funddeleted text end new text beginexecutive
director of the Public Employees Retirement Association
new text endas the district's share of the
contribution requirement in excess of the maximum state contribution under section
422A.101, subdivision 3.

(b) For taxes payable in 1994 and thereafter, Special School District No. 1,
Minneapolis, and Independent School District No. 625, St. Paul, may levy for the increase
in the employer retirement fund contributions, under Laws 1992, chapter 598, article 5,
section 1.

(c) If the employer retirement fund contributions under section 354A.12, subdivision
2a
, are increased for fiscal year 1994 or later fiscal years, Special School District No. 1,
Minneapolis, and Independent School District No. 625, St. Paul, may levy in payable
1994 or later an amount equal to the amount derived by applying the net increase in
the employer retirement fund contribution rate of the respective teacher retirement fund
association between fiscal year 1993 and the fiscal year beginning in the year after the
levy is certified to the total covered payroll of the applicable teacher retirement fund
association. If an applicable school district levies under this paragraph, they may not
levy under paragraph (b).

(d) In addition to the levy authorized under paragraph (c), Special School District
No. 1, Minneapolis, may also levy payable in 1997 or later an amount equal to the
contributions under section 423A.02, subdivision 3, and may also levy in payable 1994
or later an amount equal to the state aid contribution under section 354A.12, subdivision
3b
. Independent School District No. 625, St. Paul, may levy payable in 1997 or later an
amount equal to the supplemental contributions under section 423A.02, subdivision 3.

Sec. 10.

Minnesota Statutes 2008, section 256D.21, is amended to read:


256D.21 CONTINUATION OF BENEFITS; FORMER MINNEAPOLIS
EMPLOYEES.

Subdivision 1.

Continuation of benefits.

Each employee of the city of Minneapolis
who is transferred to and employed by the county under the provisions of section 256D.20
and who is a contributing member of a retirement system organized under the provisions
of new text beginMinnesota Statutes 2008, new text endchapter 422A, deleted text beginshall continue to bedeleted text end new text beginis new text enda member of deleted text beginthat systemdeleted text end
new text begin the MERF division of the Public Employees Retirement Association new text endand new text beginis new text endentitled to all
of the new text beginapplicable new text endbenefits conferred deleted text begintherebydeleted text end new text beginby new text endand subject to all the restrictions of deleted text beginchapter
422A, unless the member applies to cancel membership within six months after January
1, 1974
deleted text endnew text begin section 353.50new text end.

Subd. 2.

City obligation.

The cost to the public of that portion of the retirement
allowances or other benefits accrued while any such employee was in the service of the
city of Minneapolis shall remain an obligation of the city and a tax shall be levied and
collected by it to discharge its obligation as provided deleted text beginby chapter 422Adeleted text endnew text begin in section 353.50,
subdivision 7
new text end.

Subd. 3.

County obligation.

The cost to the public of the retirement allowances
or other benefits accruing to employees so transferred to and employed by the county
shall be the obligation of and paid by the county deleted text beginat such time as the retirement board
shall fix and determine in accordance with chapter 422A
deleted text endnew text begin in section 353.50, subdivision
7
new text end. The county shall pay to the deleted text beginmunicipaldeleted text end new text begingeneral employees new text endretirement fund deleted text beginan amount
certified to the county auditor of the county by the retirement board as the cost of the
retirement allowances and other benefits accruing and owing to such county employees
deleted text endnew text begin of
the Public Employees Retirement Association those amounts
new text end. The cost to the public of
the retirement deleted text beginallowances as herein provided shalldeleted text end new text begincoverage under this section must new text endbe
paid from the county revenue fund by the county auditor deleted text beginupon receipt of certification from
the retirement board as herein provided
deleted text end, and the county board is authorized to levy and
collect such taxes as may be necessary to pay such costs.

Sec. 11.

Minnesota Statutes 2009 Supplement, section 352.01, subdivision 2b, is
amended to read:


Subd. 2b.

Excluded employees.

"State employee" does not include:

(1) students employed by the University of Minnesota, or the state colleges and
universities, unless approved for coverage by the Board of Regents of the University of
Minnesota or the Board of Trustees of the Minnesota State Colleges and Universities,
whichever is applicable;

(2) employees who are eligible for membership in the state Teachers Retirement
Association, except employees of the Department of Education who have chosen or may
choose to be covered by the general state employees retirement plan of the Minnesota
State Retirement System instead of the Teachers Retirement Association;

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

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

(5) election officers;

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

(7) officers and employees of the senate, or of the house of representatives, or of a
legislative committee or commission who are temporarily employed;

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

(9) patient and inmate help in state charitable, penal, and correctional institutions
including the Minnesota Veterans Home;

(10) persons who are employed for professional services where the service is
incidental to their regular professional duties and whose compensation is paid on a per
diem basis;

(11) employees of the Sibley House Association;

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

(13) state troopers and persons who are described in section 352B.011, subdivision
10
, clauses (2) to (8);

(14) temporary employees of the Minnesota State Fair who are employed on or
after July 1 for a period not to extend beyond October 15 of that year; and persons who
are employed at any time by the state fair administration for special events held on the
fairgrounds;

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

(16) temporary employees in the classified service, and temporary employees in the
unclassified service who are appointed for a definite period of not more than six months
and who are employed less than six months in any one-year period;

(17) interns hired for six months or less and trainee employees, except those listed in
subdivision 2a, clause (8);

(18) persons whose compensation is paid on a fee basis or as an independent
contractor;

(19) state employees who are employed by the Board of Trustees of the Minnesota
State Colleges and Universities in unclassified positions enumerated in section 43A.08,
subdivision 1
, clause (9);

(20) state employees who in any year have credit for 12 months service as teachers
in the public schools of the state and as teachers are members of the Teachers Retirement
Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for
incidental employment as a state employee that is not covered by one of the teacher
retirement associations or systems;

(21) employees of the adjutant general who are employed on an unlimited
intermittent or temporary basis in the classified or unclassified service for the support of
Army and Air National Guard training facilities;

(22) chaplains and nuns who are excluded from coverage under the federal Old
Age, Survivors, Disability, and Health Insurance Program for the performance of service
as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no
irrevocable election of coverage has been made under section 3121(r) of the Internal
Revenue Code of 1986, as amended through December 31, 1992;

(23) examination monitors who are employed by departments, agencies,
commissions, and boards to conduct examinations required by law;

(24) persons who are appointed to serve as members of fact-finding commissions or
adjustment panels, arbitrators, or labor referees under chapter 179;

(25) temporary employees who are employed for limited periods under any state or
federal program for training or rehabilitation, including persons who are employed for
limited periods from areas of economic distress, but not including skilled and supervisory
personnel and persons having civil service status covered by the system;

(26) full-time students who are employed by the Minnesota Historical Society
intermittently during part of the year and full-time during the summer months;

(27) temporary employees who are appointed for not more than six months, of
the Metropolitan Council and of any of its statutory boards, if the board members are
appointed by the Metropolitan Council;

(28) persons who are employed in positions designated by the Department of
Management and Budget as student workers;

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

(30) off-duty peace officers while employed by the Metropolitan Council;

(31) persons who are employed as full-time police officers by the Metropolitan
Council and as police officers are members of the public employees police and fire fund;

(32) persons who are employed as full-time firefighters by the Department of Military
Affairs and as firefighters are members of the public employees police and fire fund;

(33) foreign citizens with a work permit of less than three years, or an H-1b/JV visa
valid for less than three years of employment, unless notice of extension is supplied which
allows them to work for three or more years as of the date the extension is granted, in
which case they are eligible for coverage from the date extended; and

(34) persons who are employed by the Board of Trustees of the Minnesota State
Colleges and Universities and who elected to remain members of the Public Employees
Retirement Association or new text beginof the MERF division of the Public Employees Retirement
Association as the successor of
new text endthe Minneapolis Employees Retirement Fund, whichever
applies, under Minnesota Statutes 1994, section 136C.75.

Sec. 12.

Minnesota Statutes 2008, section 353.03, subdivision 1, is amended to read:


Subdivision 1.

Management; composition; election.

(a) The management of
the Public Employees Retirement deleted text beginfunddeleted text endnew text begin Associationnew text end is vested in an 11-member board of
trustees consisting of ten members and the state auditor. The state auditor 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 trustees for terms of four years, 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 benefit. Terms expire on January 31 of the fourth year, and positions are
vacant until newly elected members are seated. Except as provided in this subdivision,
trustees elected by the membership of the association must be public employees and
members of the association.

(b) For 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 association. 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 policies, subject to review and approval by the
secretary of state under paragraph (e), to govern the form and length of these statements,
timing of mailings, and deadlines for submitting materials to be mailed. The secretary
of state shall resolve disputes between the board and a candidate concerning application
of these policies to a particular statement.

(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.

(d) A candidate who receives contributions or makes expenditures in excess of $100,
or 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.

(e) The secretary of state shall review and approve the procedures defined by the
board of trustees for conducting the elections specified in this subdivision, including
board policies adopted under paragraph (b).

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

Sec. 13.

Minnesota Statutes 2008, section 353.71, subdivision 4, is amended to read:


Subd. 4.

Repayment of refund.

Any person who has received a refund from the
Public Employees Retirement deleted text beginfunddeleted text endnew text begin Associationnew text end and who is a member of any public
retirement system referred to in subdivision 1, may repay such refund to the Public
Employees Retirement deleted text beginfunddeleted text endnew text begin Associationnew text end as provided in section 353.35.

Sec. 14.

Minnesota Statutes 2008, section 353.86, subdivision 1, is amended to read:


Subdivision 1.

Participation.

Volunteer ambulance service personnel, as defined
in section 353.01, subdivision 35, who are or become members of and participants in
the deleted text beginpublicdeleted text endnew text begin generalnew text end employees retirement fund or the public employees police and fire
fund before July 1, 2002, and make contributions to either of those funds based on
compensation for service other than volunteer ambulance service may elect to participate
in that same fund with respect to compensation received for volunteer ambulance service,
provided that the volunteer ambulance service is not credited to another public or private
pension plan including the public employees retirement plan established by chapter
353D and provided further that the volunteer ambulance service is rendered for the same
governmental unit for which the nonvolunteer ambulance service is rendered.

Sec. 15.

Minnesota Statutes 2008, section 353.86, subdivision 2, is amended to read:


Subd. 2.

Election.

Volunteer ambulance service personnel to whom subdivision
1 applies may exercise the election authorized under subdivision 1 within the earlier of
the one-year period beginning on July 1, 1989, and extending through June 30, 1990, or
the one-year period commencing on the first day of the first month following the start of
employment in a position covered by the deleted text beginpublicdeleted text endnew text begin generalnew text end employees retirement fund or the
public employees police and fire fund. The election must be exercised by filing a written
notice on a form prescribed by the executive director of the association.

Sec. 16.

Minnesota Statutes 2008, section 353.87, subdivision 1, is amended to read:


Subdivision 1.

Participation.

Except as provided in subdivision 2, a volunteer
firefighter, as defined in section 353.01, subdivision 36, who, on June 30, 1989, was
a member of, and a participant in, the deleted text beginpublicdeleted text endnew text begin generalnew text end employees retirement fund or the
public employees police and fire fund and was making contributions to either of those
funds based, at least in part, on compensation for services performed as a volunteer
firefighter shall continue as a member of, and a participant in, the deleted text beginpublicdeleted text endnew text begin generalnew text end
employees retirement fund or the public employees police and fire fund and compensation
for services performed as a volunteer firefighter shall be considered salary.

Sec. 17.

Minnesota Statutes 2008, section 353.87, subdivision 2, is amended to read:


Subd. 2.

Option.

A volunteer firefighter to whom subdivision 1 applies has the
option to terminate membership and future participation in the deleted text beginpublicdeleted text endnew text begin generalnew text end employees
retirement fund or the public employees police and fire fund upon filing of a written notice
of intention to terminate participation. Notice must be given on a form prescribed by the
executive director of the association and must be filed in the offices of the association not
later than June 30, 1990.

Sec. 18.

Minnesota Statutes 2008, section 353.88, is amended to read:


353.88 PENALTY FOR MEMBERSHIP MISCERTIFICATIONS AND
CERTIFICATION FAILURES.

(a) If the board of trustees of the Public Employees Retirement Association,
upon the recommendation of the executive director, determines that a governmental
subdivision has certified a public employee for membership in the public employees
police and fire retirement plan when the public employee was not eligible for that
retirement plan coverage, the public employee must be covered by the correct retirement
plan for subsequent service, the public employee retains the coverage for the period of
the misclassification, and the governmental subdivision shall pay in a lump sum the
difference in the actuarial present value of the retirement annuities to which the public
employee would have been entitled if the public employee was properly classified. The
governmental subdivision payment is payable within 30 days of the board's determination.
If unpaid, it must be collected under section 353.28. The lump-sum payment must be
deposited in the deleted text beginpublicdeleted text endnew text begin generalnew text end employees retirement fund.

(b) If the executive director of the Public Employees Retirement Association
determines that a governmental subdivision has failed to certify a person for retirement
plan membership and coverage under this chapter, in addition to the procedures under
section 353.27, subdivision 4, 9, 10, 11, 12, 12a, or 12b, the director shall charge a fine of
$25 for each membership certification failure.

Sec. 19.

Minnesota Statutes 2008, section 354.71, is amended to read:


354.71 MINNEAPOLIS EMPLOYEES RETIREMENT FUND STATE AID
REDEDICATED.

Subdivision 1.

Appropriation.

The positive difference, if any, between the
actual state aid deleted text beginpaiddeleted text end new text beginpayable new text endto the new text beginMERF division account of the Public Employees
Retirement Association with respect to the former
new text endMinneapolis Employees Retirement
Fund under section 422A.101, subdivision 3, and $8,065,000 annually is appropriated
from the general fund to the commissioner of management and budget for deposit in
the Teachers Retirement Association to offset all or a portion of the deleted text begincurrent and futuredeleted text end
unfunded actuarial accrued liability of the new text beginformer new text endMinneapolis Teachers Retirement
Fund Association.

Subd. 2.

Financial requirements.

The appropriation in subdivision 1 is available to
the extent that financial requirements deleted text beginofdeleted text end new text beginwith respect to new text endthe new text beginMERF division of the Public
Employees Retirement Association as the successor of the former
new text endMinneapolis Employees
Retirement Fund under section deleted text begin422A.101, subdivision 3,deleted text end new text begin353.50 new text endhave been satisfied.

Sec. 20.

Minnesota Statutes 2008, section 354A.011, subdivision 27, is amended to
read:


Subd. 27.

Teacher.

(a) "Teacher" means any person who renders service for a public
school district, other than a charter school, located in the corporate limits of Duluth or
St. Paul, as any of the following:

(1) a full-time employee in a position for which a valid license from the state
Department of Education is required;

(2) an employee of the teachers retirement fund association located in the city of
the first class deleted text beginunless the employee has exercised the option pursuant to Laws 1955,
deleted text enddeleted text beginchapter 10, section 1, to retain membership in the Minneapolis Employees Retirement
Fund established pursuant to chapter 422A
deleted text end;

(3) a part-time employee in a position for which a valid license from the state
Department of Education is required; or

(4) a part-time employee in a position for which a valid license from the state
Department of Education is required who also renders other nonteaching services for the
school district, unless the board of trustees of the teachers retirement fund association
determines that the combined employment is on the whole so substantially dissimilar to
teaching service that the service may not be covered by the association.

(b) The term does not mean any person who renders service in the school district
as any of the following:

(1) an independent contractor or the employee of an independent contractor;

(2) an employee who is a full-time teacher covered by the Teachers Retirement
Association or by another teachers retirement fund association established pursuant to this
chapter or chapter 354;

(3) an employee exempt from licensure pursuant to section 122A.30;

(4) an employee who is a teacher in a technical college located in a city of the first
class unless the person elects coverage by the applicable first class city teacher retirement
fund association under section 354B.21, subdivision 2;

(5) a teacher employed by a charter school, irrespective of the location of the
school; or

(6) an employee who is a part-time teacher in a technical college in a city of the first
class and who has elected coverage by the applicable first class city teacher retirement
fund association under section 354B.21, subdivision 2, but (i) the teaching service is
incidental to the regular nonteaching occupation of the person; (ii) the applicable technical
college stipulates annually in advance that the part-time teaching service will not exceed
300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed 300
hours in the fiscal year to which the certification applies.

Sec. 21.

Minnesota Statutes 2008, section 354A.39, is amended to read:


354A.39 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY.

Any person who has been a member of the Minnesota State Retirement System, the
Public Employees Retirement Association including the Public Employees Retirement
Association Police and Fire Fund, the Teachers Retirement Association, the Minnesota
State Patrol Retirement Association, the legislators retirement plan, the constitutional
officers retirement plan, deleted text beginthe Minneapolis Employees Retirement Fund,deleted text end the Duluth
Teachers Retirement Fund Association new law coordinated program, the St. Paul
Teachers Retirement Fund Association coordinated program, or any other public employee
retirement system in the state of Minnesota having a like provision but excluding all other
funds providing retirement benefits for police officers or firefighters shall be entitled
when qualified to an annuity from each fund if the person's total allowable service in all
of the funds or in any two or more of the funds totals three or more years, provided that
no portion of the allowable service upon which the retirement annuity from one fund is
based is used again in the computation for a retirement annuity from another fund and
provided further that the person has not taken a refund from any of funds or associations
since the person's membership in the fund or association has terminated. The annuity
from each fund or association shall be determined by the appropriate provisions of the
law governing each fund or association, except that the requirement that a person must
have at least three years of allowable service in the respective fund or association shall not
apply for the purposes of this section, provided that the aggregate service in two or more
of these funds equals three or more years.

Sec. 22.

Minnesota Statutes 2008, section 355.095, subdivision 1, is amended to read:


Subdivision 1.

Agreement.

(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.

(b) The applicable employees are:

(1) employees who are members of one of the retirement plans in new text beginMinnesota Statutes
2008,
new text endsection 356.30, subdivision 3, except clauses (4) and (8), based on continuous
employment since March 31, 1986; and

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

Sec. 23.

Minnesota Statutes 2009 Supplement, section 356.20, subdivision 2, is
amended to read:


Subd. 2.

Covered public pension plans and funds.

This section applies to the
following public pension plans:

(1) the general state employees retirement plan of the Minnesota State Retirement
System;

(2) the general employees retirement plan of the Public Employees Retirement
Association;

(3) the Teachers Retirement Association;

(4) the State Patrol retirement plan;

(5) the St. Paul Teachers Retirement Fund Association;

(6) the Duluth Teachers Retirement Fund Association;

deleted text begin (7) the Minneapolis Employees Retirement Fund;
deleted text end

deleted text begin (8)deleted text end new text begin(7) new text endthe University of Minnesota faculty retirement plan;

deleted text begin (9)deleted text end new text begin(8) new text endthe University of Minnesota faculty supplemental retirement plan;

deleted text begin (10)deleted text end new text begin(9) new text endthe judges retirement fund;

deleted text begin (11)deleted text end new text begin(10) new text enda police or firefighter's relief association specified or described in section
69.77, subdivision 1a;

deleted text begin (12)deleted text end new text begin(11) new text enda volunteer firefighter relief association governed by section 69.771,
subdivision 1
;

deleted text begin (13)deleted text end new text begin(12) new text endthe public employees police and fire plan of the Public Employees
Retirement Association;

deleted text begin (14)deleted text end new text begin(13) new text endthe correctional state employees retirement plan of the Minnesota State
Retirement System;

deleted text begin (15)deleted text end new text begin(14) new text endthe local government correctional service retirement plan of the Public
Employees Retirement Association; and

deleted text begin (16)deleted text end new text begin(15) new text endthe voluntary statewide lump-sum volunteer firefighter retirement plan.

Sec. 24.

Minnesota Statutes 2008, section 356.214, subdivision 1, is amended to read:


Subdivision 1.

Actuary retention.

(a) The governing board or managing or
administrative official of each public pension plan and retirement fund or plan enumerated
in paragraph (b) shall contract with an established actuarial consulting firm to conduct
annual actuarial valuations and related services. The principal from the actuarial
consulting firm on the contract must be an approved actuary under section 356.215,
subdivision 1
, paragraph (c).

(b) Actuarial services must include the preparation of actuarial valuations and
related actuarial work for the following retirement plans:

(1) the teachers retirement plan, Teachers Retirement Association;

(2) the general state employees retirement plan, Minnesota State Retirement System;

(3) the correctional employees retirement plan, Minnesota State Retirement System;

(4) the State Patrol retirement plan, Minnesota State Retirement System;

(5) the judges retirement plan, Minnesota State Retirement System;

deleted text begin (6) the Minneapolis employees retirement plan, Minneapolis Employees Retirement
Fund;
deleted text end

deleted text begin (7)deleted text end new text begin(6) new text endthe deleted text beginpublicdeleted text end new text begingeneral new text endemployees retirement plan, Public Employees Retirement
Associationnew text begin, including the MERF divisionnew text end;

deleted text begin (8)deleted text end new text begin(7) new text endthe public employees police and fire plan, Public Employees Retirement
Association;

deleted text begin (9)deleted text end new text begin(8) new text endthe Duluth teachers retirement plan, Duluth Teachers Retirement Fund
Association;

deleted text begin (10)deleted text end new text begin(9) new text endthe St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund
Association;

deleted text begin (11)deleted text end new text begin(10) new text endthe legislators retirement plan, Minnesota State Retirement System;

deleted text begin (12)deleted text end new text begin(11) new text endthe elective state officers retirement plan, Minnesota State Retirement
System; and

deleted text begin (13)deleted text end new text begin(12) new text endlocal government correctional service retirement plan, Public Employees
Retirement Association.

(c) The contracts must require completion of the annual actuarial valuation
calculations on a fiscal year basis, with the contents of the actuarial valuation calculations
as specified in section 356.215, and in conformity with the standards for actuarial work
adopted by the Legislative Commission on Pensions and Retirement.

The contracts must require completion of annual experience data collection and
processing and a quadrennial published experience study for the plans listed in paragraph
(b), clauses (1), (2), and deleted text begin(7)deleted text endnew text begin (6)new text end, as provided for in the standards for actuarial work
adopted by the commission. The experience data collection, processing, and analysis
must evaluate the following:

(1) individual salary progression;

(2) the rate of return on investments based on the current asset value;

(3) payroll growth;

(4) mortality;

(5) retirement age;

(6) withdrawal; and

(7) disablement.

(d) The actuary shall annually prepare a report to the governing or managing board
or administrative official and the legislature, summarizing the results of the actuarial
valuation calculations. The actuary shall include with the report any recommendations
concerning the appropriateness of the support rates to achieve proper funding of
the retirement plans by the required funding dates. The actuary shall, as part of the
quadrennial experience study, include recommendations on the appropriateness of the
actuarial valuation assumptions required for evaluation in the study.

(e) If the actuarial gain and loss analysis in the actuarial valuation calculations
indicates a persistent pattern of sizable gains or losses, the governing or managing board
or administrative official shall direct the actuary to prepare a special experience study for a
plan listed in paragraph (b), clause (3), (4), (5), deleted text begin(6)deleted text endnew text begin (7)new text end, (8), (9), (10), (11),new text begin ornew text end (12), deleted text beginor (13),deleted text end
in the manner provided for in the standards for actuarial work adopted by the commission.

Sec. 25.

Minnesota Statutes 2008, section 356.30, subdivision 3, is amended to read:


Subd. 3.

Covered plans.

This section applies to the following retirement plans:

(1) the general state employees retirement plan of the Minnesota State Retirement
System, established under chapter 352;

(2) the correctional state employees retirement plan of the Minnesota State
Retirement System, established under chapter 352;

(3) the unclassified employees retirement program, established under chapter 352D;

(4) the State Patrol retirement plan, established under chapter 352B;

(5) the legislators retirement plan, established under chapter 3A;

(6) the elective state officers retirement plan, established under chapter 352C;

(7) the general employees retirement plan of the Public Employees Retirement
Association, established under chapter 353new text begin, including the MERF division of the Public
Employees Retirement Association
new text end;

(8) the public employees police and fire retirement plan of the Public Employees
Retirement Association, established under chapter 353;

(9) the local government correctional service retirement plan of the Public
Employees Retirement Association, established under chapter 353E;

(10) the Teachers Retirement Association, established under chapter 354;

deleted text begin (11) the Minneapolis Employees Retirement Fund, established under chapter 422A;
deleted text end

deleted text begin (12)deleted text end new text begin(11) new text endthe St. Paul Teachers Retirement Fund Association, established under
chapter 354A;

deleted text begin (13)deleted text end new text begin(12) new text endthe Duluth Teachers Retirement Fund Association, established under
chapter 354A; and

deleted text begin (14)deleted text end new text begin(13) new text endthe judges retirement fund, established by chapter 490.

Sec. 26.

Minnesota Statutes 2008, section 356.302, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) The terms used in this section are defined in this
subdivision.

(b) "Average salary" means the highest average of covered salary for the appropriate
period of credited service that is required for the calculation of a disability benefit by
the covered retirement plan and that is drawn from any period of credited service and
successive years of covered salary in a covered retirement plan.

(c) "Covered retirement plan" or "plan" means a retirement plan listed in subdivision
7.

(d) "Duty-related" means a disabling illness or injury that occurred while the person
was actively engaged in employment duties or that arose out of the person's active
employment duties.

(e) "General employee retirement plan" means a covered retirement plan listed in
subdivision 7, clauses (1) to deleted text begin(8)deleted text end new text begin(6) new text endand deleted text begin(13)deleted text endnew text begin (12)new text end.

(f) "Occupationally disabled" means the condition of having a medically
determinable physical or mental impairment that makes a person unable to satisfactorily
perform the minimum requirements of the person's employment position or a substantially
similar employment position.

(g) "Public safety employee retirement plan" means a covered retirement plan listed
in subdivision 7, clauses deleted text begin(9)deleted text endnew text begin (7) new text end to deleted text begin(12)deleted text endnew text begin (11)new text end.

(h) "Totally and permanently disabled" means the condition of having a medically
determinable physical or mental impairment that makes a person unable to engage in any
substantial gainful activity and that is expected to continue or has continued for a period
of at least one year or that is expected to result directly in the person's death.

Sec. 27.

Minnesota Statutes 2008, section 356.302, subdivision 7, is amended to read:


Subd. 7.

Covered retirement plans.

This section applies to the following
retirement plans:

(1) the general state employees retirement plan of the Minnesota State Retirement
System, established by chapter 352;

(2) the unclassified state employees retirement program of the Minnesota State
Retirement System, established by chapter 352D;

(3) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353new text begin, including the MERF division of the Public
Employees Retirement Association
new text end;

(4) the Teachers Retirement Association, established by chapter 354;

(5) the Duluth Teachers Retirement Fund Association, established by chapter 354A;

(6) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;

deleted text begin (7) the Minneapolis Employees Retirement Fund, established by chapter 422A;
deleted text end

deleted text begin (8)deleted text end new text begin(7) new text endthe state correctional employees retirement plan of the Minnesota State
Retirement System, established by chapter 352;

deleted text begin (9)deleted text end new text begin(8) new text endthe State Patrol retirement plan, established by chapter 352B;

deleted text begin (10)deleted text end new text begin(9) new text endthe public employees police and fire plan of the Public Employees
Retirement Association, established by chapter 353;

deleted text begin (11)deleted text end new text begin(10) new text endthe local government correctional service retirement plan of the Public
Employees Retirement Association, established by chapter 353E; and

deleted text begin (12)deleted text end new text begin(11) new text endthe judges retirement plan, established by chapter 490.

Sec. 28.

Minnesota Statutes 2008, section 356.303, subdivision 4, is amended to read:


Subd. 4.

Covered retirement plans.

This section applies to the following
retirement plans:

(1) the legislators retirement plan, established by chapter 3A;

(2) the general state employees retirement plan of the Minnesota State Retirement
System, established by chapter 352;

(3) the correctional state employees retirement plan of the Minnesota State
Retirement System, established by chapter 352;

(4) the State Patrol retirement plan, established by chapter 352B;

(5) the elective state officers retirement plan, established by chapter 352C;

(6) the unclassified state employees retirement program, established by chapter
352D;

(7) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353new text begin, including the MERF division of the Public
Employees Retirement Association
new text end;

(8) the public employees police and fire plan of the Public Employees Retirement
Association, established by chapter 353;

(9) the local government correctional service retirement plan of the Public
Employees Retirement Association, established by chapter 353E;

(10) the Teachers Retirement Association, established by chapter 354;

(11) the Duluth Teachers Retirement Fund Association, established by chapter 354A;

(12) the St. Paul Teachers Retirement Fund Association, established by chapter
354A;new text begin and
new text end

deleted text begin (13) the Minneapolis Employees Retirement Fund, established by chapter 422A; and
deleted text end

deleted text begin (14)deleted text end new text begin(13) new text endthe judges retirement fund, established by chapter 490.

Sec. 29.

Minnesota Statutes 2009 Supplement, section 356.32, subdivision 2, is
amended to read:


Subd. 2.

Covered retirement plans.

The provisions of this section apply to the
following retirement plans:

(1) the general state employees retirement plan of the Minnesota State Retirement
System, established under chapter 352;

(2) the correctional state employees retirement plan of the Minnesota State
Retirement System, established under chapter 352;

(3) the State Patrol retirement plan, established under chapter 352B;

(4) the general employees retirement plan of the Public Employees Retirement
Association, established under chapter 353new text begin, including the MERF division of the Public
Employees Retirement Association
new text end;

(5) the public employees police and fire plan of the Public Employees Retirement
Association, established under chapter 353;

(6) the Teachers Retirement Association, established under chapter 354;

deleted text begin (7) the Minneapolis Employees Retirement Fund, established under chapter 422A;
deleted text end

deleted text begin (8)deleted text end new text begin(7) new text endthe Duluth Teachers Retirement Fund Association, established under chapter
354A; and

deleted text begin (9)deleted text end new text begin(8) new text endthe St. Paul Teachers Retirement Fund Association, established under chapter
354A.

Sec. 30.

Minnesota Statutes 2009 Supplement, section 356.401, subdivision 3, is
amended to read:


Subd. 3.

Covered retirement plans.

The provisions of this section apply to the
following retirement plans:

(1) the legislators retirement plan, established by chapter 3A;

(2) the general state employees retirement plan of the Minnesota State Retirement
System, established by chapter 352;

(3) the correctional state employees retirement plan of the Minnesota State
Retirement System, established by chapter 352;

(4) the State Patrol retirement plan, established by chapter 352B;

(5) the elective state officers retirement plan, established by chapter 352C;

(6) the unclassified state employees retirement program, established by chapter
352D;

(7) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353new text begin, including the MERF division of the Public
Employees Retirement Association
new text end;

(8) the public employees police and fire plan of the Public Employees Retirement
Association, established by chapter 353;

(9) the public employees defined contribution plan, established by chapter 353D;

(10) the local government correctional service retirement plan of the Public
Employees Retirement Association, established by chapter 353E;

(11) the voluntary statewide lump-sum volunteer firefighter retirement plan,
established by chapter 353G;

(12) the Teachers Retirement Association, established by chapter 354;

(13) the Duluth Teachers Retirement Fund Association, established by chapter 354A;

(14) the St. Paul Teachers Retirement Fund Association, established by chapter
354A;

(15) the individual retirement account plan, established by chapter 354B;

(16) the higher education supplemental retirement plan, established by chapter 354C;

deleted text begin (17) the Minneapolis Employees Retirement Fund, established by chapter 422A;
deleted text end

deleted text begin (18)deleted text end new text begin(17) new text endthe Minneapolis Police Relief Association, established by chapter 423B;

deleted text begin (19)deleted text end new text begin(18) new text endthe Minneapolis Firefighters Relief Association, established by chapter
423C; and

deleted text begin (20)deleted text end new text begin(19) new text endthe judges retirement fund, established by chapter 490.

Sec. 31.

Minnesota Statutes 2008, section 356.407, subdivision 2, is amended to read:


Subd. 2.

Covered funds.

The provisions of this section apply to the following
retirement funds:

(1) the general employees retirement plan of the Public Employees Retirement
Association established under chapter 353new text begin, including the MERF division of the Public
Employees Retirement Association
new text end;

(2) the public employees police and fire plan of the Public Employees Retirement
Association established under chapter 353;

(3) the State Patrol retirement plan established under chapter 352B;

(4) the legislators retirement plan established under chapter 3A;

(5) the elective state officers retirement plan established under chapter 352C;new text begin and
new text end

(6) the Teachers Retirement Association established under chapter 354deleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (7) the Minneapolis Employees Retirement Fund established under chapter 422A.
deleted text end

Sec. 32.

Minnesota Statutes 2009 Supplement, section 356.415, subdivision 2, is
amended to read:


Subd. 2.

Covered retirement plans.

The provisions of this section apply to the
following retirement plans:

(1) the legislators retirement plan established under chapter 3A;

(2) the correctional state employees retirement plan of the Minnesota State
Retirement System established under chapter 352;

(3) the general state employees retirement plan of the Minnesota State Retirement
System established under chapter 352;

(4) the State Patrol retirement plan established under chapter 352B;

(5) the elective state officers retirement plan established under chapter 352C;

(6) the general employees retirement plan of the Public Employees Retirement
Association established under chapter 353new text begin, including the MERF division of the Public
Employees Retirement Association
new text end;

(7) the public employees police and fire retirement plan of the Public Employees
Retirement Association established under chapter 353;

(8) the local government correctional employees retirement plan of the Public
Employees Retirement Association established under chapter 353E;

(9) the teachers retirement plan established under chapter 354; and

(10) the judges retirement plan established under chapter 490.

Sec. 33.

Minnesota Statutes 2008, section 356.431, subdivision 1, is amended to read:


Subdivision 1.

Lump-sum postretirement payment conversion.

For benefits paid
after December 31, 2001, to eligible persons under deleted text beginsectionsdeleted text end new text beginsection new text end356.42 deleted text beginand 356.43deleted text end,
the amount of the most recent lump-sum benefit payable to an eligible recipient under
deleted text begin sectionsdeleted text end new text beginsection new text end356.42 deleted text beginand 356.43deleted text end must be divided by 12. The result must be added to
the monthly annuity or benefit otherwise payable to an eligible recipient, must become a
permanent part of the benefit recipient's pension, and must be included in any pension
benefit subject to future increases.

Sec. 34.

Minnesota Statutes 2008, section 356.465, subdivision 3, is amended to read:


Subd. 3.

Covered retirement plans.

The provisions of this section apply to the
following retirement plans:

(1) the general state employees retirement plan of the Minnesota State Retirement
System established under chapter 352;

(2) the correctional state employees retirement plan of the Minnesota State
Retirement System established under chapter 352;

(3) the State Patrol retirement plan established under chapter 352B;

(4) the legislators retirement plan established under chapter 3A;

(5) the judges retirement plan established under chapter 490;

(6) the general employees retirement plan of the Public Employees Retirement
Association established under chapter 353new text begin, including the MERF division of the Public
Employees Retirement Association
new text end;

(7) the public employees police and fire plan of the Public Employees Retirement
Association established under chapter 353;

(8) the teachers retirement plan established under chapter 354;

(9) the Duluth Teachers Retirement Fund Association established under chapter
354A;

(10) the St. Paul Teachers Retirement Fund Association established under chapter
354A;

deleted text begin (11) the Minneapolis Employees Retirement Fund established under chapter 422A;
deleted text end

deleted text begin (12)deleted text end new text begin(11) new text endthe Minneapolis Firefighters Relief Association established under chapter
423C;

deleted text begin (13)deleted text end new text begin(12) new text endthe Minneapolis Police Relief Association established under chapter
423B; and

deleted text begin (14)deleted text end new text begin(13) new text endthe local government correctional service retirement plan of the Public
Employees Retirement Association established under chapter 353E.

Sec. 35.

Minnesota Statutes 2008, section 356.64, is amended to read:


356.64 REAL ESTATE INVESTMENTS.

(a) Notwithstanding any law to the contrary, any public pension plan whose assets
are not invested by the State Board of Investment may invest its funds in Minnesota situs
nonfarm real estate ownership interests or loans secured by mortgages or deeds of trust if
the investment is consistent with section 356A.04.

(b) deleted text beginExcept to the extent authorized in the case of the Minneapolis Employees
Retirement Fund under section 422A.05, subdivision 2c, paragraph (a),
deleted text end An investment
otherwise authorized by this section must also comply with the requirements and
limitations of section 11A.24, subdivision 6.

Sec. 36.

Minnesota Statutes 2008, section 356.65, subdivision 2, is amended to read:


Subd. 2.

Disposition of abandoned amounts.

Any unclaimed public pension
fund amounts existing in any public pension fund are presumed to be abandoned, but are
not subject to the provisions of sections 345.31 to 345.60. Unless the benefit plan of
the public pension fund specifically provides for a different disposition of unclaimed or
abandoned funds or amounts, any unclaimed public pension fund amounts cancel and
must be credited to the public pension fund. If the unclaimed public pension fund amount
exceeds $25 and the inactive or former member again becomes a member of the applicable
public pension plan or applies for a retirement annuity under section 3A.12, 352.72,
352B.30, 353.71, 354.60, new text beginor new text end356.30, deleted text beginor 422A.16, subdivision 8,deleted text end whichever applies, the
canceled amount must be restored to the credit of the person.

Sec. 37.

Minnesota Statutes 2008, section 356.91, is amended to read:


356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION.

(a) Upon written authorization of a person receiving an annuity from a public
pension fund administered by the Minnesota State Retirement Systemdeleted text begin,deleted text end new text beginor new text endthe Public
Employees Retirement Association, deleted text beginor the Minneapolis Employees Retirement Fund,deleted text end the
executive director of the public pension fund may deduct from the retirement annuity an
amount requested by the annuitant to be paid as dues to any labor organization that is an
exclusive bargaining agent representing public employees or an organization representing
retired public employees of which the annuitant is a member and shall pay the amount to
the organization so designated by the annuitant.

(b) A pension fund and the plan fiduciaries which authorize or administer deductions
of dues payments under paragraph (a) are not liable for failure to properly deduct or
transmit the dues amounts, provided that the fund and the fiduciaries have acted in good
faith.

(c) The deductions under paragraph (a) may occur no more frequently than two
times per year and may not be used for political purposes.

(d) Any labor organization specified in paragraph (a) shall reimburse the public
pension fund for the administrative expense of withholding premium amounts.

Sec. 38.

Minnesota Statutes 2009 Supplement, section 356.96, subdivision 1, is
amended to read:


Subdivision 1.

Definitions.

(a) Unless the language or context clearly indicates that
a different meaning is intended, for the purpose of this section, the terms in paragraphs
(b) to (e) have the meanings given them.

(b) "Chief administrative officer" means the executive director of a covered pension
plan or the executive director's designee or representative.

(c) "Covered pension plan" means a plan enumerated in section 356.20, subdivision
2, clauses (1) to (4), deleted text begin(10)deleted text endnew text begin (9)new text end, and deleted text begin(13)deleted text end new text begin(12) new text endto deleted text begin(16)deleted text endnew text begin (15)new text end, but does not mean the
deferred compensation plan administered under sections 352.965 and 352.97 or to the
postretirement health care savings plan administered under section 352.98.

(d) "Governing board" means the Board of Trustees of the Public Employees
Retirement Association, the Board of Trustees of the Teachers Retirement Association, or
the Board of Directors of the Minnesota State Retirement System.

(e) "Person" includes an active, retired, deferred, or nonvested inactive participant in
a covered pension plan or a beneficiary of a participant, or an individual who has applied
to be a participant or who is or may be a survivor of a participant, or a state agency or
other governmental unit that employs active participants in a covered pension plan.

Sec. 39.

Minnesota Statutes 2008, section 473.511, subdivision 3, is amended to read:


Subd. 3.

Existing sanitary districts, joint sewer boards.

Effective January 1,
1971, the corporate existence of the Minneapolis-St. Paul Sanitary District, the North
Suburban Sanitary Sewer District, and any joint board created by agreement among local
government units pursuant to section 471.59, to provide interceptors and treatment works
for such local government units, shall terminate. All persons regularly employed by
such sanitary districts and joint boards on that date or on any earlier date on which the
former waste control commission pursuant to subdivisions 1 and 2 assumed ownership
and control of any interceptors or treatment works owned or operated by such sanitary
districts and joint boards, and who are employees of the commission on July 1, 1994, shall
be employees of the councildeleted text begin, and may at their option become members of the Minnesota
State Retirement System or may continue as members of a public retirement association
under chapter 422A or any other law, to which they belonged before such date, and shall
retain all pension rights which they may have under such latter laws, and all other rights
to which they are entitled by contract or law
deleted text end. Members of trades who are employed by
the former Metropolitan Waste Control Commission, who have trade union pension
coverage pursuant to a collective bargaining agreement, and who elected exclusion from
coverage pursuant to section 473.512, or who are first employed after July 1, 1977, shall
not be covered by the Minnesota State Retirement System. The council shall make the
employer's contributions to pension funds of its employees. Such employees shall perform
such duties as may be prescribed by the council. All funds of such sanitary districts and
joint boards then on hand, and all subsequent collections of taxes, special assessments or
service charges levied or imposed by or for such sanitary districts or joint boards shall
be transferred to the council. The local government units otherwise entitled to such
cash, taxes, assessments or service charges shall be credited with such amounts, and
such credits shall be offset against any amounts to be paid by them to the council as
provided in section 473.517. The former Metropolitan Waste Control Commission, and
on July 1, 1994, the council shall succeed to and become vested by action of law with
all right, title and interest in and to any property, real or personal, owned or operated
by such sanitary districts and joint boards. Prior to that date the proper officers of such
sanitary districts and joint boards, or the former Metropolitan Waste Control Commission,
shall execute and deliver to the council all deeds, conveyances, bills of sale, and other
documents or instruments required to vest in the council good and marketable title to all
such real or personal property; provided that vesting of the title shall occur by operation
of law and failure to execute and deliver the documents shall not affect the vesting of
title in the former Metropolitan Waste Control Commission or the council on the dates
indicated in this subdivision. The council shall become obligated to pay or assume all
bonded or other debt and contract obligations incurred by the former Metropolitan Waste
Control Commission, or by such sanitary districts and joint boards, or incurred by local
government units for the acquisition or betterment of any interceptors or treatment works
owned or operated by such sanitary districts or joint boards.

Sec. 40.

Minnesota Statutes 2008, section 473.606, subdivision 5, is amended to read:


Subd. 5.

Employees, others, affirmative action; prevailing wage.

The corporation
shall have the power to appoint engineers and other consultants, attorneys, and such other
officers, agents, and employees as it may see fit, who shall perform such duties and receive
such compensation as the corporation may determine, and be removable at the pleasure of
the corporation. The corporation shall adopt an affirmative action plan, which shall be
submitted to the appropriate agency or office of the state for review and approval. The plan
shall include a yearly progress report to the agency or office. deleted text beginOfficers and employees of
the corporation who cannot qualify and participate in the municipal employees retirement
fund under chapter 422A, shall be separated from service at the retirement age applicable
to officers or employees of the state of Minnesota in the classified service of the state civil
service as provided in section 43A.34, or as the same may from time to time be amended,
regardless of the provisions of the Veteran's Preference Act.
deleted text end Whenever the corporation
performs any work within the limits of a city of the first class, or establishes a minimum
wage for skilled or unskilled labor in the specifications or any contract for work within
one of the cities, the rate of pay to such skilled and unskilled labor shall be the prevailing
rate of wage for such labor in that city.

Sec. 41.

Minnesota Statutes 2008, section 475.52, subdivision 6, is amended to read:


Subd. 6.

Certain purposes.

Any municipality may issue bonds for paying
judgments against it; for refunding outstanding bonds; for funding floating indebtedness;
for funding actuarial liabilities to pay postemployment benefits to employees or officers
after their termination of service; or for funding all or part of the municipality's current
and future unfunded liability for a pension or retirement fund or plan referred to in
section 356.20, subdivision 2, as those liabilities are most recently computed pursuant
to sections 356.215 and 356.216. The board of trustees or directors of a deleted text beginpension fund ordeleted text end
relief association referred to in section 69.77 deleted text beginor chapter 422Adeleted text end must consent and must
be a party to any contract made under this section with respect to the fund held by it
for the benefit of and in trust for its members. For purposes of this section, the term
"postemployment benefits" means benefits giving rise to a liability under Statement No.
45 of the Governmental Accounting Standards Board.

Sec. 42.

Minnesota Statutes 2009 Supplement, section 480.181, subdivision 2, is
amended to read:


Subd. 2.

Election to retain insurance and benefits; retirement.

(a) Before a
person is transferred to state employment under this section, the person may elect to do
either or both of the following:

(1) keep life insurance; hospital, medical, and dental insurance; and vacation and
sick leave benefits and accumulated time provided by the county instead of receiving
benefits from the state under the judicial branch personnel rules; or

(2) remain a member of the new text begingeneral employees retirement plan of the new text endPublic
Employees Retirement Association or the deleted text beginMinneapolis employees retirement funddeleted text end new text beginMERF
division of the Public Employees Retirement Association
new text endinstead of joining the Minnesota
State Retirement System.

Employees who make an election under clause (1) remain on the county payroll,
but the state shall reimburse the county on a quarterly basis for the salary and cost of the
benefits provided by the county. The state shall make the employer contribution to the
new text begin general employees retirement plan of the new text endPublic Employees Retirement Association or the
employer contribution under section deleted text begin422A.101deleted text endnew text begin 353.50new text end, subdivision deleted text begin1adeleted text endnew text begin 7, paragraphs (c)
and (d)
new text end
, to the deleted text beginMinneapolis Employees Retirement Funddeleted text end new text beginMERF division of the Public
Employees Retirement Association
new text endon behalf of employees who make an election under
clause (2).

(b) An employee who makes an election under paragraph (a), clause (1), may revoke
the election, once, at any time, but if the employee revokes the election, the employee
cannot make another election. An employee who makes an election under paragraph (a),
clause (2), may revoke the election at any time within six months after the person becomes
a state employee. Once an employee revokes this election, the employee cannot make
another election.

(c) The Supreme Court, after consultation with the Judicial Council, the
commissioner of management and budget, and the executive directors of the Public
Employees Retirement Association and the Minnesota State Retirement Association, shall
adopt procedures for making elections under this section.

(d) The Supreme Court shall notify all affected employees of the options available
under this section. The executive directors of the Public Employees Retirement
Association and the Minnesota State Retirement System shall provide counseling to
affected employees on the effect of making an election to remain a member of the Public
Employees Retirement Association.

Sec. 43. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 42 are effective June 30, 2010.
new text end