2nd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to retirement; pension plan actuarial 1.3 reporting; various public retirement plans; volunteer 1.4 firefighter relief associations; Minneapolis 1.5 firefighters relief association; modifying actuarial 1.6 cost allocation by the legislative commission on 1.7 pensions and retirement; changing the actuarial value 1.8 of assets, actuarial assumptions and funding surplus 1.9 recognition method; revising re-employed annuitant 1.10 earnings limitations; adding certain prior 1.11 correctional positions to correctional plan coverage; 1.12 clarifying various former police and fire 1.13 consolidation account merger provisions; authorizing 1.14 certain optional annuity form elections by former 1.15 consolidation account members; revising local 1.16 correctional retirement plan membership eligibility; 1.17 increasing local correctional retirement plan member 1.18 and employer contribution rates; authorizing the 1.19 purchase of nonprofit community-based corporation 1.20 teaching service; expanding investment options for 1.21 employer matching contribution tax sheltered 1.22 annuities; modifying various volunteer firefighter 1.23 relief association benefit and administration 1.24 provisions; modifying judicial pension provision; 1.25 modifying the marriage duration requirement for 1.26 certain Minneapolis firefighter relief association 1.27 survivor benefits; creating additional Minneapolis 1.28 police and firefighter relief association post 1.29 retirement adjustment mechanisms; resolving various 1.30 individual and small group pension problems; amending 1.31 Minnesota Statutes 1998, sections 16A.055, subdivision 1.32 5; 69.773, subdivision 1; 122A.46, subdivision 1, and 1.33 by adding a subdivision; 136F.45, subdivision 1a; 1.34 352.115, subdivision 10; 352.15, subdivision 1a; 1.35 352.91, subdivisions 3c, 3d, and by adding a 1.36 subdivision; 352B.01, subdivision 3, and by adding a 1.37 subdivision; 352D.02, subdivision 1; 352D.04, 1.38 subdivision 2; 352D.05, subdivision 3; 352D.06; 1.39 352D.09, subdivision 5a; 353.01, subdivisions 2, 6, 1.40 11a, 28, 32, and by adding a subdivision; 353.15, 1.41 subdivision 2; 353.27, subdivisions 4 and 12; 353.33, 1.42 subdivisions 2 and 6; 353.34, subdivision 1; 353.37, 1.43 by adding a subdivision; 353.64, subdivisions 2, 3, 4, 1.44 and by adding a subdivision; 353.656, subdivisions 1 1.45 and 3; 353.71, subdivision 2; 353B.11, subdivision 3; 1.46 354.05, subdivisions 2 and 35; 354.091; 354.092, 2.1 subdivision 2; 354.093; 354.094, subdivision 1; 2.2 354.10, subdivision 2; 354.35; 354.44, subdivision 5; 2.3 354.46, subdivision 2a; 354.47, subdivision 1; 354.48, 2.4 subdivision 6; 354.49, subdivision 1; 354.52, 2.5 subdivisions 3, 4, 4a, and 4b; 354.63, subdivision 2; 2.6 354A.31, subdivisions 3 and 3a; 354B.23, subdivision 2.7 5a; 354C.12, subdivision 1a; 354C.165; 356.215, 2.8 subdivisions 1, 2, and 4d; 356.24, by adding a 2.9 subdivision; 356.30, subdivision 1; 356A.01, 2.10 subdivision 8; 356A.02; 356A.06, subdivision 4, and by 2.11 adding a subdivision; 423B.01; 424A.001, subdivision 2.12 9; 424A.02, subdivisions 3, 7, 9, 13, and by adding a 2.13 subdivision; 424A.04, subdivision 1; 424A.05, 2.14 subdivision 3; 490.121, subdivision 4, and by adding a 2.15 subdivision; 490.123, subdivisions 1a and 1b; and 2.16 490.124, subdivision 1; Minnesota Statutes 1999 2.17 Supplement, sections 3.85, subdivision 12; 69.021, 2.18 subdivision 7; 136F.48; 352.1155, subdivisions 1 and 2.19 4; 353.01, subdivisions 2b and 10; 353.64, subdivision 2.20 1; 353E.02; 353E.03; 353F.02, subdivision 5; 354.445; 2.21 354.536, subdivision 1; 354A.101, subdivision 1; 2.22 356.215, subdivision 4g; 356.24, subdivisions 1 and 2.23 1b; and 423A.02, subdivisions 1b, 4 and 5; Laws 1965, 2.24 chapter 705, section 1, subdivision 4, as amended; 2.25 proposing coding for new law in Minnesota Statutes, 2.26 chapters 69; 352; 353; 354; 354A; 356; and 423B; 2.27 proposing coding for new law as Minnesota Statutes, 2.28 chapters 352G; and 424B; repealing Minnesota Statutes 2.29 1998, section 353.024; 354.52, subdivision 2; and 2.30 424A.02, subdivision 11; Minnesota Statutes 1999 2.31 Supplement, sections 356.24, subdivision 1a; and 2.32 356.61. 2.33 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.34 ARTICLE 1 2.35 ACTUARIAL ASSET VALUE CHANGE, 2.36 ACTUARIAL ASSUMPTION CHANGES, 2.37 ACTUARIAL METHOD CHANGES, AND 2.38 ACTUARIAL REPORTING COST ALLOCATION CHANGES 2.39 Section 1. Minnesota Statutes 1999 Supplement, section 2.40 3.85, subdivision 12, is amended to read: 2.41 Subd. 12. [ALLOCATION OF ACTUARIAL COST.] (a) The 2.42 commission shall assess each retirement plan specified in 2.43 subdivision 11, paragraph (b), its appropriate portion of the 2.44 compensation paid to the actuary retained by the commission for 2.45 the actuarial valuation calculations, quadrennial projection 2.46 valuations, and quadrennial experience studies. The total 2.47 assessment is 100 percent of the amount of contract compensation 2.48 for the actuarial consulting firm retained by the commission for 2.49 actuarial valuation calculations, includingtheany public 2.50 employees police and fire plan consolidation accounts of the 2.51 public employees retirement association established before March 3.1 2, 1999, for which the municipality declined merger under 3.2 section 353.665, subdivision 1, or established after March 1, 3.3 1999, annual experience data collection and processing, and 3.4 quadrennial experience studies and quadrennial projection 3.5 valuations. 3.6 The portion of the total assessment payable by each 3.7 retirement system or pension plan must be determinedas follows:3.8(1) Each pension plan specified in subdivision 11,3.9paragraph (b), clauses (1) to (14), must pay the following3.10indexed amount based on its total active, deferred, inactive,3.11and benefit recipient membership:3.12up to 2,000 members, inclusive$2.55 per member3.132,001 through 10,000 members$1.13 per member3.14over 10,000 members$0.11 per member3.15The amount specified is applicable for the assessment of3.16the July 1, 1991, to June 30, 1992, fiscal year actuarial3.17compensation amounts. For the July 1, 1992, to June 30, 1993,3.18fiscal year and subsequent fiscal year actuarial compensation3.19amounts, the amount specified must be increased at the same3.20percentage increase rate as the implicit price deflator for3.21state and local government purchases of goods and services for3.22the 12-month period ending with the first quarter of the3.23calendar year following the completion date for the actuarial3.24valuation calculations, as published by the federal Department3.25of Commerce, and rounded upward to the nearest full cent.3.26(2) The total per-member portion of the allocation must be3.27determined, and that total per-member amount must be subtracted3.28from the total amount for allocation. Of the remainder dollar3.29amount, the following per-retirement system and per-pension plan3.30charges must be determined and the charges must be paid by the3.31system or plan:3.32(i) 37.87 percent is the total additional per-retirement3.33system charge, of which one-seventh must be paid by each3.34retirement system specified in subdivision 11, paragraph (b),3.35clauses (1), (2), (6), (7), (9), (10), and (11).3.36(ii) 62.13 percent is the total additional per-pension plan4.1charge, of which one-fourteenth must be paid by each pension4.2plan specified in subdivision 11, paragraph (b), clauses (1) to4.3(14)based on each plan's proportion, as determined by the 4.4 commission's retained actuary, to complete the actuarial 4.5 valuation calculations, annual experience data collection and 4.6 processing, and quadrennial experience studies for all plans. 4.7 (b) The assessment must be made following the completion of 4.8 the actuarial valuation calculations andtheapplicable 4.9 experience analysis. The amount of the assessment is 4.10 appropriated from the retirement fund applicable to the 4.11 retirement plan. Receipts from assessments must be deposited in 4.12 the state treasury and credited to the general fund. 4.13 Sec. 2. Minnesota Statutes 1998, section 16A.055, 4.14 subdivision 5, is amended to read: 4.15 Subd. 5. [RETIREMENT FUND REPORTING.] (a) The commissioner 4.16 may not require a public retirement fund to use financial or 4.17 actuarial reporting practices or procedures different from those 4.18 required by section 356.20 or 356.215. 4.19 (b) The commissioner may contract with the consulting 4.20 actuary retained by the legislative commission on pensions and 4.21 retirement for the preparation of quadrennial projection 4.22 valuations as required under section 356.215, subdivisions 2 and 4.23 2a. The initial projection valuation under this paragraph is 4.24 due on May 1, 2003, and May 1 each fourth year thereafter. The 4.25 commissioner of finance shall assess the various statewide and 4.26 major local retirement plans the cost of the quadrennial 4.27 projection valuation. 4.28 Sec. 3. Minnesota Statutes 1998, section 356.215, 4.29 subdivision 1, is amended to read: 4.30 Subdivision 1. [DEFINITIONS.] (a) For the purposes of 4.31 sections 3.85 and 356.20 to 356.23, each of thefollowingterms 4.32 in the following paragraphs have the meaning given:. 4.33(1)(b) "Actuarial valuation" means a set of calculations 4.34 prepared by the actuary retained by the legislative commission 4.35 on pensions and retirement if so required under section 3.85, or 4.36 otherwise, by an approved actuary, to determine the normal cost 5.1 and the accrued actuarial liabilities of a benefit plan, 5.2 according to the entry age actuarial cost method and based upon 5.3 stated assumptions including, but not limited to rates of 5.4 interest, mortality, salary increase, disability, withdrawal, 5.5 and retirement and to determine the payment necessary to 5.6 amortize over a stated period any unfunded accrued actuarial 5.7 liability disclosed as a result of the actuarial valuation of 5.8 the benefit plan. 5.9(2)(c) "Approved actuary" means a person who is regularly 5.10 engaged in the business of providing actuarial services and who 5.11 has at least 15 years of service to major public employee 5.12 pension or retirement funds or who is a fellow in the society of 5.13 actuaries. 5.14(3)(d) "Entry age actuarial cost method" means an 5.15 actuarial cost method under which the actuarial present value of 5.16 the projected benefits of each individual currently covered by 5.17 the benefit plan and included in the actuarial valuation is 5.18 allocated on a level basis over the service of the individual if 5.19 the benefit plan is governed by section 69.773 or over the 5.20 earnings of the individual if the benefit plan is governed by 5.21 any other law between the entry age and the assumed exit age, 5.22 with the portion of this actuarial present value which is 5.23 allocated to the valuation year to be the normal cost and the 5.24 portion of this actuarial present value not provided for at the 5.25 valuation date by the actuarial present value of future normal 5.26 costs to be the actuarial accrued liability, with aggregation in 5.27 the calculation process to be the sum of the calculated result 5.28 for each covered individual and with recognition given to any 5.29 different benefit formulas which may apply to various periods of 5.30 service. 5.31(4)(e) "Experience study" means a report providing 5.32 experience data and an actuarial analysis of the adequacy of the 5.33 actuarial assumptions on which actuarial valuations are based. 5.34(5)(f) "Current assets" means: 5.35 (1) for the July 1, 1999, actuarial valuation, the value of 5.36 all assets at cost, including realized capital gains or losses, 6.1 plus one-third of any unrealized capital gains or losses; 6.2 (2) for the July 1, 2000, actuarial valuations, the market 6.3 value of all assets as of June 30, 2000, reduced by: 6.4 (i) 60 percent of the difference between the market value 6.5 of all assets as of June 30, 1999, and the actuarial value of 6.6 assets used in the July 1, 1999, actuarial valuation, and 6.7 (ii) 80 percent of the difference between the actual net 6.8 change in the market value of assets between June 30, 1999, and 6.9 June 30, 2000, and the computed increase in the market value of 6.10 assets between June 30, 1999, and June 30, 2000, if the assets 6.11 had increased at the percentage preretirement interest rate 6.12 assumption used in the July 1, 1999, actuarial valuation; 6.13 (3) for the July 1, 2001, actuarial valuation, the market 6.14 value of all assets as of June 30, 2001, reduced by: 6.15 (i) 30 percent of the difference between the market value 6.16 of all assets as of June 30, 1999, and the actuarial value of 6.17 assets used in the July 1, 1999, actuarial valuation; 6.18 (ii) 60 percent of the difference between the actual net 6.19 change in the market value of assets between June 30, 1999, and 6.20 June 30, 2000, and the computed increase in the market value of 6.21 assets between June 30, 1999, and June 30, 2000, if the assets 6.22 had increased at the percentage preretirement interest rate 6.23 assumption used in the July 1, 1999, actuarial valuation; and 6.24 (iii) 80 percent of the difference between the actual net 6.25 change in the market value of assets between June 30, 2000, and 6.26 June 30, 2001, and the computed increase in the market value of 6.27 assets between June 30, 2000, and June 30, 2001, if the assets 6.28 had increased at the percentage preretirement interest rate 6.29 assumption used in the July 1, 2000, actuarial valuation; 6.30 (4) for the July 1, 2002, actuarial valuation, the market 6.31 value of all assets as of June 30, 2002, reduced by: 6.32 (i) ten percent of the difference between the market value 6.33 of all assets as of June 30, 1999, and the actuarial value of 6.34 assets used in the July 1, 1999, actuarial valuation; 6.35 (ii) 40 percent of the difference between the actual net 6.36 change in the market value of assets between June 30, 1999, and 7.1 June 30, 2000, and the computed increase in the market value of 7.2 assets between June 30, 1999, and June 30, 2000, if the assets 7.3 had increased at the percentage preretirement interest rate 7.4 assumption used in the July 1, 1999, actuarial valuation; 7.5 (iii) 60 percent of the difference between the actual net 7.6 change in the market value of assets between June 30, 2000, and 7.7 June 30, 2001, and the computed increase in the market value of 7.8 assets between June 30, 2000, and June 30, 2001, if the assets 7.9 had increased at the percentage preretirement interest rate 7.10 assumption used in the July 1, 2000, actuarial valuation; and 7.11 (iv) 80 percent of the difference between the actual net 7.12 change in the market value of assets between June 30, 2001, and 7.13 June 30, 2002, and the computed increase in the market value of 7.14 assets between June 30, 2001, and June 30, 2002, if the assets 7.15 had increased at the percentage preretirement interest rate 7.16 assumption used in the July 1, 2001, actuarial valuation; or 7.17 (5) for any actuarial valuation after July 1, 2002, the 7.18 market value of all assets as of the preceding June 30, reduced 7.19 by: 7.20 (i) 20 percent of the difference between the actual net 7.21 change in the market value of assets between the June 30 that 7.22 occurred three years earlier and the June 30 that occurred four 7.23 years earlier and the computed increase in the market value of 7.24 assets over that fiscal year period if the assets had increased 7.25 at the percentage preretirement interest rate assumption used in 7.26 the actuarial valuation for the July 1 that occurred four years 7.27 earlier; 7.28 (ii) 40 percent of the difference between the actual net 7.29 change in the market value of assets between the June 30 that 7.30 occurred two years earlier and the June 30 that occurred three 7.31 years earlier and the computed increase in the market value of 7.32 assets over that fiscal year period if the assets had increased 7.33 at the percentage preretirement interest rate assumption used in 7.34 the actuarial valuation for the July 1 that occurred three years 7.35 earlier; 7.36 (iii) 60 percent of the difference between the actual net 8.1 change in the market value of assets between the June 30 that 8.2 occurred one year earlier and the June 30 that occurred two 8.3 years earlier and the computed increase in the market value of 8.4 assets over that fiscal year period if the assets had increased 8.5 at the percentage preretirement interest rate assumption used in 8.6 the actuarial valuation for the July 1 that occurred two years 8.7 earlier; and 8.8 (iv) 80 percent of the difference between the actual net 8.9 change in the market value of assets between the immediately 8.10 prior June 30 and the June 30 that occurred one year earlier and 8.11 the computed increase in the market value of assets over that 8.12 fiscal year period if the assets had increased at the percentage 8.13 preretirement interest rate assumption used in the actuarial 8.14 valuation for the July 1 that occurred one year earlier. 8.15(6)(g) "Unfunded actuarial accrued liability" means the 8.16 total current and expected future benefit obligations, reduced 8.17 by the sum of current assets and the present value of future 8.18 normal costs. 8.19(7)(h) "Pension benefit obligation" means the actuarial 8.20 present value of credited projected benefits, determined as the 8.21 actuarial present value of benefits estimated to be payable in 8.22 the future as a result of employee service attributing an equal 8.23 benefit amount, including the effect of projected salary 8.24 increases and any step rate benefit accrual rate differences, to 8.25 each year of credited and expected future employee service. 8.26 Sec. 4. Minnesota Statutes 1998, section 356.215, 8.27 subdivision 2, is amended to read: 8.28 Subd. 2. [REQUIREMENTS.] (a) It is the policy of the 8.29 legislature that it is necessary and appropriate to determine 8.30 annually the financial status of tax supported retirement and 8.31 pension plans for public employees. To achieve this goal,: 8.32 (1) the legislative commission on pensions and retirement 8.33 shall have prepared by the actuary retained by the commission 8.34 annual actuarial valuations of the retirement plans enumerated 8.35 in section 3.85, subdivision 11, paragraph (b), and quadrennial 8.36 experience studies of the retirement plans enumerated in section 9.1 3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7),; 9.2 and 9.3 (2) the commissioner of finance may have prepared by the 9.4 actuary retained by the commission, two years after each set of 9.5 quadrennial experience studies, quadrennial projection 9.6 valuations of at least one of the retirement plans enumerated in 9.7 section 3.85, subdivision 11, paragraph (b), for whichitthe 9.8 commissioner determines that the analysis may be beneficial. 9.9 (b) The governing or managing board or administrative 9.10 officials of each public pension and retirement fund or plan 9.11 enumerated in section 356.20, subdivision 2, clauses (9), (10), 9.12 and (12), shall have prepared by an approved actuary annual 9.13 actuarial valuations of their respective funds as provided in 9.14 this section. This requirement also applies to any fund that is 9.15 the successor to any organization enumerated in section 356.20, 9.16 subdivision 2, or to the governing or managing board or 9.17 administrative officials of any newly formed retirement fund or 9.18 association operating under the control or supervision of any 9.19 public employee group, governmental unit, or institution 9.20 receiving a portion of its support through legislative 9.21 appropriations, and any local police or fire fund coming within 9.22 the provisions of section 356.216. 9.23(b)Subd. 2a. [PROJECTION VALUATION REQUIREMENTS.] A 9.24 quadrennial projection valuation required underparagraph9.25(a)subdivision 2 is intended to serve as an additional 9.26 analytical tool with which policy makers may assess the future 9.27 funding status of public plans through forecasting and testing 9.28 various potential outcomes over time if certain plan assumptions 9.29 or valuation methods were to be modified. In consultation with 9.30the executive director of the legislative commission on pensions9.31and retirement,the retirement fund directors, the state 9.32 economist, the state demographer, the commissioner of finance, 9.33 and the commissioner of employee relations, the actuary retained 9.34 by the legislative commission on pensions and retirement shall 9.35 perform the quadrennial projection valuations on behalf of the 9.36 commissioner of finance, testing future implications for plan 10.1 funding by modifying assumptions and methods currently in 10.2 place. The commission-retained actuary shall provide advice to 10.3 thecommissioncommissioner as to the periods over which such 10.4 projections should be made, the nature and scope of the 10.5 scenarios to be analyzed, and the measures of funding status to 10.6 be employed, and shall report the results of these analyses in 10.7 the same manner as for quadrennial experience studies. 10.8 Sec. 5. Minnesota Statutes 1998, section 356.215, 10.9 subdivision 4d, is amended to read: 10.10 Subd. 4d. [INTEREST AND SALARY ASSUMPTIONS.] (a) The 10.11 actuarial valuation must use the applicable following 10.12 preretirement interest assumption and the applicable following 10.13 postretirement interest assumption: 10.14 preretirement postretirement 10.15 interest rate interest rate 10.16 plan assumption assumption 10.17 general state employees 10.18 retirement plan 8.5%5.06.0% 10.19 correctional state employees 10.20 retirement plan 8.55.06.0 10.21 state patrol retirement plan 8.55.06.0 10.22 legislators retirement plan 8.55.06.0 10.23 elective state officers 10.24 retirement plan 8.55.06.0 10.25 judges retirement plan 8.55.06.0 10.26 general public employees 10.27 retirement plan 8.55.06.0 10.28 public employees police and fire 10.29 retirement plan 8.55.06.0 10.30 local government correctional 10.31 service retirement plan 8.55.06.0 10.32 teachers retirement plan 8.55.06.0 10.33 Minneapolis employees 10.34 retirement plan 6.0 5.0 10.35 Duluth teachers retirement plan 8.5 8.5 10.36 Minneapolis teachers retirement 10.37 plan 8.5 8.5 10.38 St. Paul teachers retirement 10.39 plan 8.5 7.5 10.40 Minneapolis police relief 10.41 association 6.0 6.0 10.42 other local police relief 10.43 associations 5.0 5.0 10.44 Minneapolis fire department 10.45 relief association 6.0 6.0 10.46 other local salaried firefighter 10.47 relief associations 5.0 5.0 10.48 local monthly benefit volunteer 10.49 firefighter relief associations 5.0 5.0 10.50 (b) The actuarial valuation must use the applicable 10.51 following single rate future salary increase assumption or the 10.52 applicable following graded rate future salary increase 10.53 assumption: 11.1 (1) single rate future salary increase assumption 11.2 future salary 11.3 plan increase assumption 11.4 legislators retirement plan 5.0% 11.5 elective state officers retirement 11.6 plan 5.0 11.7 judges retirement plan 5.0 11.8Minneapolis employees retirement plan4.011.9 Minneapolis police relief association 4.0 11.10 other local police relief associations 3.5 11.11 Minneapolis fire department relief 11.12 association 4.0 11.13 other local salaried firefighter relief 11.14 associations 3.5 11.15 (2) modified single rate future salary increase assumption 11.16 future salary 11.17 plan increase assumption 11.18 Minneapolis employees retirement prior calendar year 11.19 plan increased 1.0198 percent 11.20 to prior fiscal year date 11.21 and 4.0 percent annually 11.22 for each future year 11.23 (3) select and ultimate future salary increase assumption 11.24 or graded rate future salary increase assumption 11.25 future salary 11.26 plan increase assumption 11.27 general state employees select calculation and 11.28 retirement plan assumption A 11.29 correctional state employees 11.30 retirement plan assumptionAH 11.31 state patrol retirement plan assumptionAH 11.32 general public employees select calculation and 11.33 retirement plan assumption B 11.34 public employees police and fire 11.35 retirement plan assumption C 11.36 local government correctional service 11.37 retirement plan assumptionCH 11.38 teachers retirement plan assumption D 11.39 Duluth teachers retirement plan assumption E 11.40 Minneapolis teachers retirement plan assumption F 11.41 St. Paul teachers retirement plan assumption G 11.42 11.43 select calculation: 11.44 During the ten-year select period, 0.2 percent is 11.45 multiplied by the result of 10 minus T, where T is 11.46 the number of completed years of service, and is added 11.47 to the applicable future salary increase assumption. 11.48 11.49 future salary increase assumption: 11.50 11.51 age A B C D E F G H 11.52 167.2500%8.71% 11.50%7.25%8.00% 7.50% 7.25% 11.53 6.95 6.95 8.20 7.7500 11.54 177.25008.7111.507.258.00 7.50 7.25 11.55 6.90 6.90 8.15 7.7500 11.56 187.25008.7011.507.258.00 7.50 7.25 11.57 6.85 6.85 8.10 7.7500 11.58 197.25008.7011.507.258.00 7.50 7.25 11.59 6.80 6.80 8.05 7.7500 11.60 207.25007.7011.507.258.00 7.50 7.25 11.61 6.75 6.75 8.00 7.7500 11.62 217.14547.7011.507.258.00 7.50 7.25 11.63 6.70 6.70 7.95 7.1454 11.64 227.10947.7011.007.258.00 7.50 7.25 11.65 6.65 6.65 7.90 7.0725 12.1 247.03637.7010.007.157.80 7.30 7.20 12.2 6.66 6.55 7.80 7.0363 12.3 257.00007.609.507.107.70 7.20 7.15 12.4 6.50 6.50 7.75 7.0000 12.5 267.00007.519.207.057.60 7.10 7.10 12.6 6.45 6.45 7.70 7.0000 12.7 277.00007.398.907.007.50 7.00 7.05 12.8 6.40 6.40 7.65 7.0000 12.9 287.00007.308.607.007.40 6.90 7.00 12.10 6.35 6.35 7.60 7.0000 12.11 297.00007.208.307.007.30 6.80 6.95 12.12 6.30 6.30 7.55 7.0000 12.13 307.00007.208.007.007.20 6.70 6.90 12.14 6.25 6.30 7.50 7.0000 12.15 317.00007.107.807.007.10 6.60 6.85 12.16 6.20 6.25 7.45 7.0000 12.17 327.00007.107.607.007.00 6.50 6.80 12.18 6.15 6.21 7.40 7.0000 12.19 337.00007.007.407.006.90 6.40 6.75 12.20 6.10 6.17 7.30 7.0000 12.21 347.00007.007.207.006.80 6.30 6.70 12.22 6.05 6.09 7.10 7.0000 12.23 357.00006.907.00 7.00 6.70 6.20 6.65 12.24 6.00 6.05 7.0000 12.25 366.90196.806.807.006.60 6.10 6.60 12.26 6.95 6.01 6.85 6.9019 12.27 376.80746.706.607.006.50 6.00 6.55 12.28 5.90 5.97 6.70 6.8074 12.29 386.71256.606.406.906.40 5.90 6.50 12.30 5.85 5.93 6.55 6.7125 12.31 396.60546.506.206.806.30 5.80 6.40 12.32 5.80 5.89 6.40 6.6054 12.33 406.50006.406.006.706.20 5.70 6.30 12.34 5.75 5.85 6.25 6.5000 12.35 416.35406.305.906.606.10 5.60 6.20 12.36 5.70 5.81 6.10 6.3540 12.37 426.20876.305.806.506.00 5.50 6.10 12.38 5.65 5.77 5.95 6.2087 12.39 436.06226.305.706.355.90 5.45 6.00 12.40 5.60 5.73 5.80 6.0622 12.41 445.90486.205.606.205.80 5.40 5.90 12.42 5.55 5.69 5.65 5.9048 12.43 455.75006.205.506.055.70 5.35 5.80 12.44 5.50 5.65 5.50 5.7500 12.45 465.69406.095.455.905.60 5.30 5.70 12.46 5.45 5.62 5.45 5.6940 12.47 475.63756.005.405.755.50 5.25 5.65 12.48 5.40 5.59 5.40 5.6375 12.49 485.58225.905.355.705.45 5.20 5.60 12.50 5.35 5.56 5.35 5.5822 12.51 495.54055.805.305.655.40 5.15 5.55 12.52 5.30 5.53 5.30 5.5404 12.53 505.50005.705.255.605.35 5.10 5.50 12.54 5.25 5.50 5.25 5.5000 12.55 515.43845.705.255.555.30 5.05 5.45 12.56 5.20 5.45 5.20 5.4384 12.57 525.37765.705.255.505.25 5.00 5.40 12.58 5.15 5.40 5.15 5.3776 12.59 535.31675.705.255.455.25 5.00 5.35 12.60 5.10 5.35 5.10 5.3167 12.61 545.28265.705.255.405.25 5.00 5.30 12.62 5.05 5.30 5.05 5.2826 12.63 555.25005.705.255.355.25 5.00 5.25 12.64 5.00 5.25 5.00 5.2500 12.65 565.25005.705.255.305.25 5.00 5.25 12.66 5.00 5.20 5.00 5.2500 12.67 575.25005.705.255.255.25 5.00 5.25 12.68 5.00 5.15 5.00 5.2500 12.69 585.25005.705.255.255.25 5.00 5.25 12.70 5.00 5.10 5.00 5.2500 12.71 595.25005.705.255.255.25 5.00 5.25 13.1 5.00 5.05 5.00 5.2500 13.2 605.25005.00 5.255.255.25 5.00 5.25 13.3 5.00 5.00 5.2500 13.4 615.25005.00 5.255.255.25 5.00 5.25 13.5 5.00 5.00 5.2500 13.6 625.25005.00 5.255.255.25 5.00 5.25 13.7 5.00 5.00 5.2500 13.8 635.25005.00 5.255.255.25 5.00 5.25 13.9 5.00 5.00 5.2500 13.10 645.25005.00 5.255.255.25 5.00 5.25 13.11 5.00 5.00 5.2500 13.12 655.25005.00 5.255.255.25 5.00 5.25 13.13 5.00 5.00 5.2500 13.14 665.25005.00 5.255.255.25 5.00 5.25 13.15 5.00 5.00 5.2500 13.16 675.25005.00 5.255.255.25 5.00 5.25 13.17 5.00 5.00 5.2500 13.18 685.25005.00 5.255.255.25 5.00 5.25 13.19 5.00 5.00 5.2500 13.20 695.25005.00 5.255.255.25 5.00 5.25 13.21 5.00 5.00 5.2500 13.22 705.25005.00 5.255.255.25 5.00 5.25 13.23 5.00 5.00 5.2500 13.24 71 5.00 5.00 5.00 13.25 (c) The actuarial valuation must use the applicable 13.26 following payroll growth assumption for calculating the 13.27 amortization requirement for the unfunded actuarial accrued 13.28 liability where the amortization retirement is calculated as a 13.29 level percentage of an increasing payroll: 13.30 payroll growth 13.31 plan assumption 13.32 general state employees retirement plan 5.00% 13.33 correctional state employees retirement plan 5.00 13.34 state patrol retirement plan 5.00 13.35 legislators retirement plan 5.00 13.36 elective state officers retirement plan 5.00 13.37 judges retirement plan 5.00 13.38 general public employees retirement plan 6.00 13.39 public employees police and fire 13.40 retirement plan 6.00 13.41 local government correctional service 13.42 retirement plan 6.00 13.43 teachers retirement plan 5.00 13.44 Duluth teachers retirement plan 5.00 13.45 Minneapolis teachers retirement plan 5.00 13.46 St. Paul teachers retirement plan 5.00 13.47 Sec. 6. Minnesota Statutes 1999 Supplement, section 13.48 356.215, subdivision 4g, is amended to read: 13.49 Subd. 4g. [AMORTIZATION CONTRIBUTIONS.] (a) In addition to 13.50 the exhibit indicating the level normal cost, the actuarial 13.51 valuation must contain an exhibit indicating the additional 13.52 annual contribution sufficient to amortize the unfunded 13.53 actuarial accrued liability. For funds governed by chapters 3A, 13.54 352, 352B, 352C, 353, 354, 354A, and 490, the additional 13.55 contribution must be calculated on a level percentage of covered 14.1 payroll basis by the established date for full funding in effect 14.2 when the valuation is prepared. For funds governed by chapter 14.3 3A, sections 352.90 through 352.951, chapters 352B, 352C, 14.4 sections 353.63 through 353.68, and chapters 353C, 354A, and 14.5 490, the level percent additional contribution must be 14.6 calculated assuming annual payroll growth of 6.5 percent. For 14.7 funds governed by sections 352.01 through 352.86 and chapter 14.8 354, the level percent additional contribution must be 14.9 calculated assuming an annual payroll growth of five percent. 14.10 For the fund governed by sections 353.01 through 353.46, the 14.11 level percent additional contribution must be calculated 14.12 assuming an annual payroll growth of six percent. For all other 14.13 funds, the additional annual contribution must be calculated on 14.14 a level annual dollar amount basis. 14.15 (b) For any fund other than the Minneapolis employees 14.16 retirement fund, after the first actuarial valuation date 14.17 occurring after June 1, 1989, if there has not been a change in 14.18 the actuarial assumptions used for calculating the actuarial 14.19 accrued liability of the fund, a change in the benefit plan 14.20 governing annuities and benefits payable from the fund, a change 14.21 in the actuarial cost method used in calculating the actuarial 14.22 accrued liability of all or a portion of the fund, or a 14.23 combination of the three, which change or changes by themselves 14.24 without inclusion of any other items of increase or decrease 14.25 produce a net increase in the unfunded actuarial accrued 14.26 liability of the fund, the established date for full funding for 14.27 the first actuarial valuation made after June 1, 1989, and each 14.28 successive actuarial valuation is the first actuarial valuation 14.29 date occurring after June 1, 2020. 14.30 (c) For any fund or plan other than the Minneapolis 14.31 employees retirement fund, after the first actuarial valuation 14.32 date occurring after June 1, 1989, if there has been a change in 14.33 any or all of the actuarial assumptions used for calculating the 14.34 actuarial accrued liability of the fund, a change in the benefit 14.35 plan governing annuities and benefits payable from the fund, a 14.36 change in the actuarial cost method used in calculating the 15.1 actuarial accrued liability of all or a portion of the fund, or 15.2 a combination of the three, and the change or changes, by 15.3 themselves and without inclusion of any other items of increase 15.4 or decrease, produce a net increase in the unfunded actuarial 15.5 accrued liability in the fund, the established date for full 15.6 funding must be determined using the following procedure: 15.7 (i) the unfunded actuarial accrued liability of the fund 15.8 must be determined in accordance with the plan provisions 15.9 governing annuities and retirement benefits and the actuarial 15.10 assumptions in effect before an applicable change; 15.11 (ii) the level annual dollar contribution or level 15.12 percentage, whichever is applicable, needed to amortize the 15.13 unfunded actuarial accrued liability amount determined under 15.14 item (i) by the established date for full funding in effect 15.15 before the change must be calculated using the interest 15.16 assumption specified in subdivision 4d in effect before the 15.17 change; 15.18 (iii) the unfunded actuarial accrued liability of the fund 15.19 must be determined in accordance with any new plan provisions 15.20 governing annuities and benefits payable from the fund and any 15.21 new actuarial assumptions and the remaining plan provisions 15.22 governing annuities and benefits payable from the fund and 15.23 actuarial assumptions in effect before the change; 15.24 (iv) the level annual dollar contribution or level 15.25 percentage, whichever is applicable, needed to amortize the 15.26 difference between the unfunded actuarial accrued liability 15.27 amount calculated under item (i) and the unfunded actuarial 15.28 accrued liability amount calculated under item (iii) over a 15.29 period of 30 years from the end of the plan year in which the 15.30 applicable change is effective must be calculated using the 15.31 applicable interest assumption specified in subdivision 4d in 15.32 effect after any applicable change; 15.33 (v) the level annual dollar or level percentage 15.34 amortization contribution under item (iv) must be added to the 15.35 level annual dollar amortization contribution or level 15.36 percentage calculated under item (ii); 16.1 (vi) the period in which the unfunded actuarial accrued 16.2 liability amount determined in item (iii) is amortized by the 16.3 total level annual dollar or level percentage amortization 16.4 contribution computed under item (v) must be calculated using 16.5 the interest assumption specified in subdivision 4d in effect 16.6 after any applicable change, rounded to the nearest integral 16.7 number of years, but not to exceed 30 years from the end of the 16.8 plan year in which the determination of the established date for 16.9 full funding using the procedure set forth in this clause is 16.10 made and not to be less than the period of years beginning in 16.11 the plan year in which the determination of the established date 16.12 for full funding using the procedure set forth in this clause is 16.13 made and ending by the date for full funding in effect before 16.14 the change; and 16.15 (vii) the period determined under item (vi) must be added 16.16 to the date as of which the actuarial valuation was prepared and 16.17 the date obtained is the new established date for full funding. 16.18 (d) For the Minneapolis employees retirement fund, the 16.19 established date for full funding is June 30, 2020. 16.20 (e) For thefollowingretirement plans for which the annual 16.21 actuarial valuation indicates an excess of valuation assets over 16.22 the actuarial accrued liability, the valuation assets in excess 16.23 of the actuarial accrued liability must be recognizedin the16.24following manner:16.25(1) the public employees retirement association police and16.26fire plan, the valuation assets in excess of the actuarial16.27accrued liability serve to reduceas a reduction in the current 16.28 contribution requirements by an amount equal to the amortization 16.29 of the excess expressed as a level percentage of pay over a 16.30 30-year period beginning anew with each annual actuarial 16.31 valuation of the plan; and16.32(2) the correctional employees retirement plan of the16.33Minnesota state retirement system, and the state patrol16.34retirement plan, an excess of valuation assets over actuarial16.35accrued liability must be amortized in the same manner over the16.36same period as an unfunded actuarial accrued liability but must17.1serve to reduce the required contribution instead of increasing17.2it. 17.3 Sec. 7. [EFFECTIVE DATE.] 17.4 (a) Section 1 is effective for costs incurred on or after 17.5 July 1, 2000. 17.6 (b) Sections 2 to 6 are effective on June 30, 2000, for 17.7 actuarial valuations on or after that date. 17.8 ARTICLE 2 17.9 REEMPLOYED ANNUITANT EARNINGS LIMITATION 17.10 REVISIONS 17.11 Section 1. Minnesota Statutes 1999 Supplement, section 17.12 136F.48, is amended to read: 17.13 136F.48 [EMPLOYER-PAID HEALTH INSURANCE.] 17.14 (a) This section applies to a person who: 17.15 (1) retires from the Minnesota state colleges and 17.16 universities system with at least ten years of combined service 17.17 credit in a system under the jurisdiction of the board of 17.18 trustees of the Minnesota state colleges and universities; 17.19 (2) was employed on a full-time basis immediately preceding 17.20 retirement as a faculty member or as an unclassified 17.21 administrator in the Minnesota state colleges and universities 17.22 system; 17.23 (3) begins drawing a retirement benefit from the individual 17.24 retirement account plan or an annuity from the teachers 17.25 retirement association, from the general state employees 17.26 retirement plan or the unclassified state employees retirement 17.27 program of the Minnesota state retirement system, or from a 17.28 first class city teacher retirement plan; and 17.29 (4) returns to work on not less than a one-third time basis 17.30 and not more than a two-thirds time basis in the system from 17.31 which the person retiredunder an agreement in which the person17.32may not earn a salary of more than $35,000 in a calendar year17.33from employment after retirement in the system from which the17.34person retired. 17.35 (b) Initial participation, the amount of time worked, and 17.36 the duration of participation under this section must be 18.1 mutually agreed upon by the president of the institution where 18.2 the person returns to work and the employee. The president may 18.3 require up to one-year notice of intent to participate in the 18.4 program as a condition of participation under this section. The 18.5 president shall determine the time of year the employee shall 18.6 work. The employer or the president may not require a person to 18.7 waive any rights under a collective bargaining agreement as a 18.8 condition of participation under this section. 18.9 (c) For a person eligible under paragraphs (a) and (b), the 18.10 employing board shall make the same employer contribution for 18.11 hospital, medical, and dental benefits as would be made if the 18.12 person were employed full time. 18.13 (d) For work under paragraph (a), a person must receive a 18.14 percentage of the person's salary at the time of retirement that 18.15 is equal to the percentage of time the person works compared to 18.16 full-time work. 18.17 (e) If a collective bargaining agreement covering a person 18.18 provides for an early retirement incentive that is based on age, 18.19 the incentive provided to the person must be based on the 18.20 person's age at the time employment under this section ends. 18.21 However, the salary used to determine the amount of the 18.22 incentive must be the salary that would have been paid if the 18.23 person had been employed full time for the year immediately 18.24 preceding the time employment under this section ends. 18.25 (f) A person who returns to work under this section is a 18.26 member of the appropriate bargaining unit and is covered by the 18.27 appropriate collective bargaining contract. Except as provided 18.28 in this section, the person's coverage is subject to any part of 18.29 the contract limiting rights of part-time employees. 18.30 Sec. 2. Minnesota Statutes 1998, section 352.115, 18.31 subdivision 10, is amended to read: 18.32 Subd. 10. [REEMPLOYMENT OF ANNUITANT.] (a) If any retired 18.33 employee again becomes entitled to receive salary or wages from 18.34 the state, or any employer who employs state employees as that 18.35 term is defined in section 352.01, subdivision 2, other than 18.36 salary or wages received as a temporary employee of the 19.1 legislature during a legislative session, the annuity or 19.2 retirement allowance shall cease when the retired employee has 19.3 earned an amount equal to the annual maximum earnings allowable 19.4 for that age for the continued receipt of full benefit amounts 19.5 monthly under the federal old age, survivors, and disability 19.6 insurance program as set by the secretary of health and human 19.7 services under United States Code, title 42, section 403, in any 19.8 calendar year. If the retired employee has not yet reached the 19.9 minimum age for the receipt of social security benefits, the 19.10 maximum earnings for the retired employee shall be equal to the 19.11 annual maximum earnings allowable for the minimum age for the 19.12 receipt of social security benefits. 19.13 (b) The balance of the annual retirement annuity after 19.14 cessation must be handled or disposed of as provided in section 19.15 356.58. 19.16 (c) The annuity must be resumed when state service ends, 19.17 or, if the retired employee is still employed at the beginning 19.18 of the next calendar year, at the beginning of that calendar 19.19 year, and payment must again end when the retired employee has 19.20 earned the applicable reemployment earnings maximum specified in 19.21 this subdivision.No payroll deductions for the retirement fund19.22shall be made from the earnings of a reemployed retired19.23employee.If the retired employee is granted a sick leave 19.24 without pay, but not otherwise, the annuity or retirement 19.25 allowance must be resumed during the period of sick leave. 19.26 (d) No payroll deductions for the retirement fund may be 19.27 made from the earnings of a reemployed retired employee. 19.28 (e) No change shall be made in the monthly amount of an 19.29 annuity or retirement allowance because of the reemployment of 19.30 an annuitant. 19.31 Sec. 3. Minnesota Statutes 1999 Supplement, section 19.32 352.1155, subdivision 1, is amended to read: 19.33 Subdivision 1. [ELIGIBILITY.] Except as indicated in 19.34 subdivision 4, the annuity reduction provisions of section 19.35 352.115, subdivision 10, do not apply to a person who: 19.36 (1) retires from the Minnesota state colleges and 20.1 universities system with at least ten years of combined service 20.2 credit in a system under the jurisdiction of the board of 20.3 trustees of the Minnesota state colleges and universities; 20.4 (2) was employed on a full-time basis immediately preceding 20.5 retirement as a faculty member or as an unclassified 20.6 administrator in that system; 20.7 (3) begins drawing an annuity from the general state 20.8 employees retirement plan of the Minnesota state retirement 20.9 system; and 20.10 (4) returns to work on not less than a one-third time basis 20.11 and not more than a two-thirds time basis in the system from 20.12 which the person retired under an agreement in which the person 20.13 may not earn a salary of more than$35,000$46,000 in a calendar 20.14 year from employment after retirement in the system from which 20.15 the person retired. 20.16 Sec. 4. Minnesota Statutes 1999 Supplement, section 20.17 352.1155, subdivision 4, is amended to read: 20.18 Subd. 4. [EXEMPTION LIMIT.] For a person eligible under 20.19 this section who earns more than$35,000$46,000 in a calendar 20.20 year from reemployment in the Minnesota state colleges and 20.21 universities system following retirement, the annuity reduction 20.22 provisions of section 352.115, subdivision 10, apply only to 20.23 income over$35,000$46,000. 20.24 Sec. 5. Minnesota Statutes 1998, section 353.37, is 20.25 amended by adding a subdivision to read: 20.26 Subd. 3a. [DISPOSITION OF SUSPENSION OR REDUCTION AMOUNT.] 20.27 The balance of the annual retirement annuity after suspension or 20.28 the amount of the retirement annuity reduction must be handled 20.29 or disposed of as provided in section 356.58. 20.30 Sec. 6. Minnesota Statutes 1998, section 354.44, 20.31 subdivision 5, is amended to read: 20.32 Subd. 5. [RESUMPTION OF TEACHING SERVICE AFTER 20.33 RETIREMENT.] (a) Any person who retired under the provisions of 20.34 this chapter and has thereafter resumed teaching in any employer 20.35 unit to which this chapter applies is eligible to continue to 20.36 receive payments in accordance with the annuity except that 21.1 annuity payments must be reduced during the calendar year 21.2 immediately following any calendar year in which the person's 21.3 income from the teaching service is in an amount greater than 21.4 the annual maximum earnings allowable for that age for the 21.5 continued receipt of full benefit amounts monthly under the 21.6 federal old age, survivors and disability insurance program as 21.7 set by the secretary of health and human services under United 21.8 States Code, title 42, section 403. The amount of the reduction 21.9 must be one-half of the amount in excess of the applicable 21.10 reemployment income maximum specified in this subdivision and 21.11 must be deducted from the annuity payable for the calendar year 21.12 immediately following the calendar year in which the excess 21.13 amount was earned. If the person has not yet reached the 21.14 minimum age for the receipt of social security benefits, the 21.15 maximum earnings for the person must be equal to the annual 21.16 maximum earnings allowable for the minimum age for the receipt 21.17 of social security benefits. 21.18 (b) If the person is retired for only a fractional part of 21.19 the calendar year during the initial year of retirement, the 21.20 maximum reemployment income specified in this subdivision must 21.21 be prorated for that calendar year. 21.22 (c) After a person has reached the age of 70, no 21.23 reemployment income maximum is applicable regardless of the 21.24 amount of income. 21.25 (d) The amount of the retirement annuity reduction must be 21.26 handled or disposed of as provided in section 356.58. 21.27 (e) For the purpose of this subdivision, income from 21.28 teaching service includes, but is not limited to: 21.29(a)(1) all income for services performed as a consultant 21.30 or an independent contractor for an employer unit covered by the 21.31 provisions of this chapter; and 21.32(b)(2) the greater of either the income received or an 21.33 amount based on the rate paid with respect to an administrative 21.34 position, consultant, or independent contractor in an employer 21.35 unit with approximately the same number of pupils and at the 21.36 same level as the position occupied by the person who resumes 22.1 teaching service. 22.2 Sec. 7. Minnesota Statutes 1999 Supplement, section 22.3 354.445, is amended to read: 22.4 354.445 [NO ANNUITY REDUCTION.] 22.5 (a) The annuity reduction provisions of section 354.44, 22.6 subdivision 5, do not apply to a person who: 22.7 (1) retires from the Minnesota state colleges and 22.8 universities system with at least ten years of combined service 22.9 credit in a system under the jurisdiction of the board of 22.10 trustees of the Minnesota state colleges and universities; 22.11 (2) was employed on a full-time basis immediately preceding 22.12 retirement as a faculty member or as an unclassified 22.13 administrator in that system; 22.14 (3) begins drawing an annuity from the teachers retirement 22.15 association; and 22.16 (4) returns to work on not less than a one-third time basis 22.17 and not more than a two-thirds time basis in the system from 22.18 which the person retired under an agreement in which the person 22.19 may not earn a salary of more than$35,000$46,000 in a calendar 22.20 year from employment after retirement in the system from which 22.21 the person retired. 22.22 (b) Initial participation, the amount of time worked, and 22.23 the duration of participation under this section must be 22.24 mutually agreed upon by the president of the institution where 22.25 the person returns to work and the employee. The president may 22.26 require up to one-year notice of intent to participate in the 22.27 program as a condition of participation under this section. The 22.28 president shall determine the time of year the employee shall 22.29 work. The employer or the president may not require a person to 22.30 waive any rights under a collective bargaining agreement as a 22.31 condition of participation under this section. 22.32 (c) Notwithstanding any law to the contrary, a person 22.33 eligible under paragraphs (a) and (b) may not, based on 22.34 employment to which the waiver in this section applies, earn 22.35 further service credit in a Minnesota public defined benefit 22.36 plan and is not eligible to participate in a Minnesota public 23.1 defined contribution plan, other than a volunteer fire plan 23.2 governed by chapter 424A. No employer or employee contribution 23.3 to any of these plans may be made on behalf of such a person. 23.4 (d) For a person eligible under paragraphs (a) and (b) who 23.5 earns more than$35,000$46,000 in a calendar year from 23.6 employment after retirement due to employment by the Minnesota 23.7 state colleges and universities system, the annuity reduction 23.8 provisions of section 354.44, subdivision 5, apply only to 23.9 income over$35,000$46,000. 23.10 (e) A person who returns to work under this section is a 23.11 member of the appropriate bargaining unit and is covered by the 23.12 appropriate collective bargaining contract. Except as provided 23.13 in this section, the person's coverage is subject to any part of 23.14 the contract limiting rights of part-time employees. 23.15 Sec. 8. Minnesota Statutes 1998, section 354A.31, 23.16 subdivision 3, is amended to read: 23.17 Subd. 3. [RESUMPTION OF TEACHING AFTER COMMENCEMENT OF A 23.18 RETIREMENT ANNUITY.] (a) Any person who retired and is receiving 23.19 a coordinated program retirement annuity under the provisions of 23.20 sections 354A.31 to 354A.41 or any person receiving a basic 23.21 program retirement annuity under the governing sections in the 23.22 articles of incorporation or bylaws and who has resumed teaching 23.23 service for the school district in which the teachers retirement 23.24 fund association exists is entitled to continue to receive 23.25 retirement annuity payments, except that annuity payments must 23.26 be reduced during the calendar year immediately following the 23.27 calendar year in which the person's income from the teaching 23.28 service is in an amount greater than the annual maximum earnings 23.29 allowable for that age for the continued receipt of full benefit 23.30 amounts monthly under the federal old age, survivors, and 23.31 disability insurance program as set by the secretary of health 23.32 and human services under United States Code, title 42, section 23.33 403. The amount of the reduction must be one-third the amount 23.34 in excess of the applicable reemployment income maximum 23.35 specified in this subdivision and must be deducted from the 23.36 annuity payable for the calendar year immediately following the 24.1 calendar year in which the excess amount was earned. If the 24.2 person has not yet reached the minimum age for the receipt of 24.3 social security benefits, the maximum earnings for the person 24.4 must be equal to the annual maximum earnings allowable for the 24.5 minimum age for the receipt of social security benefits. 24.6 (b) If the person is retired for only a fractional part of 24.7 the calendar year during the initial year of retirement, the 24.8 maximum reemployment income specified in this subdivision must 24.9 be prorated for that calendar year. 24.10 (c) After a person has reached the age of 70, no 24.11 reemployment income maximum is applicable regardless of the 24.12 amount of any compensation received for teaching service for the 24.13 school district in which the teachers retirement fund 24.14 association exists. 24.15 (d) The amount of the retirement annuity reduction must be 24.16 handled or disposed of as provided in section 356.58. 24.17 (e) For the purpose of this subdivision, income from 24.18 teaching service includes: (i) all income for services 24.19 performed as a consultant or independent contractor; or income 24.20 resulting from working with the school district in any capacity; 24.21 and (ii) the greater of either the income received or an amount 24.22 based on the rate paid with respect to an administrative 24.23 position, consultant, or independent contractor in the school 24.24 district in which the teachers retirement fund association 24.25 exists and at the same level as the position occupied by the 24.26 person who resumes teaching service. 24.27 Sec. 9. Minnesota Statutes 1998, section 354A.31, 24.28 subdivision 3a, is amended to read: 24.29 Subd. 3a. [NO ANNUITY REDUCTION.] (a) The annuity 24.30 reduction provisions of subdivision 3 do not apply to a person 24.31 who: 24.32 (1) retires from the technical college system with at least 24.33 ten years of service credit in the system from which the person 24.34 retires; 24.35 (2) was employed on a full-time basis immediately preceding 24.36 retirement as a technical college faculty member; 25.1 (3) begins drawing an annuity from a first class city 25.2 teachers retirement association; and 25.3 (4) returns to work on not less than a one-third time basis 25.4 and not more than a two-thirds time basis in the technical 25.5 college system under an agreement in which the person may not 25.6 earn a salary of more than$35,000$46,000 in a calendar year 25.7 from the technical college system. 25.8 (b) Initial participation, the amount of time worked, and 25.9 the duration of participation under this section must be 25.10 mutually agreed upon by the employer and the employee. The 25.11 employer may require up to a one-year notice of intent to 25.12 participate in the program as a condition of participation under 25.13 this section. The employer shall determine the time of year the 25.14 employee shall work. 25.15 (c) Notwithstanding any law to the contrary, a person 25.16 eligible under paragraphs (a) and (b) may not earn further 25.17 service credit in a first class city teachers retirement 25.18 association and is not eligible to participate in the individual 25.19 retirement account plan or the supplemental retirement plan 25.20 established in chapter 354B as a result of service under this 25.21 section. No employer or employee contribution to any of these 25.22 plans may be made on behalf of such a person. 25.23 Sec. 10. [356.58] [DISPOSITION OF AMOUNT IN EXCESS OF 25.24 REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.] 25.25 Subdivision 1. [APPLICATION.] This section applies to the 25.26 balance of annual retirement annuities on the amount of 25.27 retirement annuity reductions after reemployed annuitant 25.28 earnings limitations for retirement plans governed by sections 25.29 352.115, subdivision 10; 353.37; 354.44, subdivision 5; and 25.30 354A.31, subdivision 3. 25.31 Subd. 2. [RECORDKEEPING; REPORTING.] The chief 25.32 administrative officer of each retirement plan will keep records 25.33 for each reemployed annuitant of the amount of the annuity 25.34 reduction. This amount will be reported to each member at least 25.35 once each year. 25.36 Subd. 3. [PAYMENT.] Upon the retired member attaining the 26.1 age of 65 years or one year after termination of the 26.2 reemployment that gave rise to the limitation, whichever is 26.3 later, and the filing of an application for the payment by the 26.4 person, or upon the death of the retired member and the filing 26.5 of an application for the payment by the deceased person's 26.6 surviving spouse, or if none by the deceased person's designated 26.7 beneficiary, or if none, by the deceased person's estate, the 26.8 chief administrative officer of the applicable retirement plan 26.9 shall pay in a lump sum of the value of the person's amount 26.10 under subdivision 2, plus six percent interest compounded 26.11 annually. 26.12 Sec. 11. [EFFECTIVE DATE.] 26.13 Sections 1 to 10 are effective on July 1, 2000. 26.14 ARTICLE 3 26.15 ADMINISTRATIVE PROVISIONS 26.16 Section 1. Minnesota Statutes 1998, section 352.15, 26.17 subdivision 1a, is amended to read: 26.18 Subd. 1a. [AUTOMATIC DEPOSITS.] The executive director may 26.19pay anremit, through an automatic deposit system, annuity, 26.20 benefit, or refund payments only to abankingfinancial 26.21 institution, qualified under chapter 48,associated with the 26.22 National Automated Clearinghouse Association or a comparable 26.23 successor organization that is trustee for a person eligible to 26.24 receive the annuity, benefit, or refund. Upon the request ofa26.25retired, disabled,the retiree, disabilitant, survivor, or 26.26 former employee, the executive director maya banking institution,26.28savings association, or credit unionthe applicable financial 26.29 institution for deposittoin theemployee'sperson's account 26.30 or joint account. The board of directors may prescribe the 26.31 conditions under which payments will be made. 26.32 Sec. 2. Minnesota Statutes 1998, section 352B.01, 26.33 subdivision 3, is amended to read: 26.34 Subd. 3. [ALLOWABLESERVICESSERVICE.] "Allowable service" 26.35 means: 26.36 (a) for members defined in subdivision 2, clause (a), 27.1 monthly service is granted for any month for which payments have 27.2 been made to the state patrol retirement fund, and 27.3 (b) for members defined in subdivision 2, clauses (b) and 27.4 (c), service for which payments have been made to the state 27.5 patrol retirement fund, service for which payments were made to 27.6 the state police officers retirement fund after June 30, 1961, 27.7 and all prior service which was credited to a member for service 27.8 on or before June 30, 1961. 27.9 Allowable service also includes any period of absence from duty 27.10 by a member who, by reason of injury incurred in the performance 27.11 of duty, is temporarily disabled and for which disability the 27.12 state is liable under the workers' compensation law, until the 27.13 date authorized by the executive director for commencement of 27.14 payment of a disability benefit or return to employment. 27.15 Sec. 3. Minnesota Statutes 1998, section 352D.02, 27.16 subdivision 1, is amended to read: 27.17 Subdivision 1. [COVERAGE.] (a) Employees enumerated in 27.18 paragraph (c), clauses (2), (3), (4), and (6) to (15), if they 27.19 are in the unclassified service of the state or metropolitan 27.20 council and are eligible for coverage under the general state 27.21 employees retirement plan under chapter 352, are participants in 27.22 the unclassifiedprogramplan under this chapter unless the 27.23 employee gives notice to the executive director of the Minnesota 27.24 state retirement system within one year following the 27.25 commencement of employment in the unclassified service that the 27.26 employee desires coverage under the general state employees 27.27 retirement plan. For the purposes of this chapter, an employee 27.28 who does not file notice with the executive director is deemed 27.29 to have exercised the option to participate in the unclassified 27.30 plan. 27.31 (b) Persons referenced in paragraph (c), clauses (1) and 27.32 (5), are participants in the unclassified program under this 27.33 chapter unless the person is eligible to elect different 27.34 coverage under section 3A.07 or 352C.011 and, after July 1, 27.35 1998, elects retirement coverage by the applicable alternative 27.36 retirement plan. 28.1 (c) Enumerated employees and referenced persons are: 28.2 (1) the governor, the lieutenant governor, the secretary of 28.3 state, the state auditor, the state treasurer, and the attorney 28.4 general; 28.5 (2) an employee in the office of the governor, lieutenant 28.6 governor, secretary of state, state auditor, state treasurer, 28.7 attorney general; 28.8 (3) an employee of the state board of investment; 28.9 (4) the head of a department, division, or agency created 28.10 by statute in the unclassified service, an acting department 28.11 head subsequently appointed to the position, or an employee 28.12 enumerated in section 15A.0815 or 15A.083, subdivision 4; 28.13 (5) a member of the legislature; 28.14 (6) a permanent, full-time unclassified employee of the 28.15 legislature or a commission or agency of the legislature or a 28.16 temporary legislative employee having shares in the supplemental 28.17 retirement fund as a result of former employment covered by this 28.18 chapter, whether or not eligible for coverage under the 28.19 Minnesota state retirement system; 28.20 (7) a person who is employed in a position established 28.21 under section 43A.08, subdivision 1, clause (3), or in a 28.22 position authorized under a statute creating or establishing a 28.23 department or agency of the state, which is at the deputy or 28.24 assistant head of department or agency or director level; 28.25 (8) the regional administrator, or executive director of 28.26 the metropolitan council, general counsel, division directors, 28.27 operations managers, and other positions as designated by the 28.28 council, all of which may not exceed 27 positions at the council 28.29 and the chair, provided that upon initial designation of all28.30positions provided for in this clause, no further designations28.31or redesignations may be made without approval of the board of28.32directors of the Minnesota state retirement system; 28.33 (9) the executive director, associate executive director, 28.34 and not to exceed nine positions of the higher education 28.35 services office in the unclassified service, as designated by 28.36 the higher education services office before January 1, 1992, or 29.1 subsequently redesignated with the approval of the board of 29.2 directors of the Minnesota state retirement system, unless the 29.3 person has elected coverage by the individual retirement account 29.4 plan under chapter 354B; 29.5 (10) the clerk of the appellate courts appointed under 29.6 article VI, section 2, of the Constitution of the state of 29.7 Minnesota; 29.8 (11) the chief executive officers of correctional 29.9 facilities operated by the department of corrections and of 29.10 hospitals and nursing homes operated by the department of human 29.11 services; 29.12 (12) an employee whose principal employment is at the state 29.13 ceremonial house; 29.14 (13) an employee of the Minnesota educational computing 29.15 corporation; 29.16 (14) an employee of the world trade center board; and 29.17 (15) an employee of the state lottery board who is covered 29.18 by the managerial plan established under section 43A.18, 29.19 subdivision 3. 29.20 Sec. 4. Minnesota Statutes 1998, section 352D.05, 29.21 subdivision 3, is amended to read: 29.22 Subd. 3. [FULL OR PARTIAL WITHDRAWAL.] After termination 29.23 of covered employment or at any time thereafter, a participant 29.24 is entitled, upon application, to withdraw the cash value of the 29.25 participant's total shares or leave such shares on deposit with 29.26 the supplemental retirement fund. The account is valued at the 29.27 end of the month in which application for withdrawal is made. 29.28 Shares not withdrawn remain on deposit with the supplemental 29.29 retirement fund until the former participant becomes at least 55 29.30 years old, and applies for an annuity under section 352D.06, 29.31 subdivision 1. 29.32 Sec. 5. Minnesota Statutes 1998, section 352D.06, is 29.33 amended to read: 29.34 352D.06 [ANNUITIES.] 29.35 Subdivision 1. [ANNUITY; RESERVES.] When a participant 29.36 attains at least age 55,is retiredterminates from covered 30.1 service, and applies for a retirement annuity, the cash value of 30.2 the participant's shares shall be transferred to the Minnesota 30.3 postretirement investment fund and used to provide an annuity 30.4 for the retired employee based upon the participant's age when 30.5 the benefit begins to accrue according to the reserve basis used 30.6 by the state employees retirement fund in determining pensions 30.7 and reserves. 30.8 Subd. 2. [PARTIAL VALUE ANNUITY.] A participant has the 30.9 option in an application for an annuity to apply for and receive 30.10thea partial value ofone-half ofthe total shares and 30.11 thereafter receive an annuity, as provided in subdivision 1, 30.12 based on the remaining value ofone-half ofthe total shares. 30.13 Subd. 3. [ACCRUAL DATE.] An annuityherein shall begin to30.14accrueunder this section accrues the first day of the first 30.15 full month after an application is received or after termination 30.16 of state service, whichever is later. Upon the former 30.17 employee's request, the annuity may begin to accrue up to six 30.18 months before redemption of shares, but not prior to the 30.19 termination date from covered service, and will be based on the 30.20 account value at redemption and upon the age of the former 30.21 employee at the date annuity accrual starts. The account is 30.22 valued and redeemed the later of the end of the month of 30.23 termination of covered employment, or the end of the month of 30.24 receipt of the annuity application for the purpose of computing 30.25 the annuity. 30.26 Sec. 6. Minnesota Statutes 1998, section 352D.09, 30.27 subdivision 5a, is amended to read: 30.28 Subd. 5a. [SMALL BALANCE ACCOUNTS.] If a former 30.29 participant who contributed less than$100$500 in employee 30.30 contributions cannot be contacted by the system for five or more 30.31 years, the value of the shares shall be appropriated to the 30.32 general employees retirement fund, but upon subsequent contact 30.33 by the former employee the account shall be reinstated to the 30.34 amount that would have been payable had the money been left in 30.35 the unclassified plan. 30.36 Sec. 7. Minnesota Statutes 1998, section 353.01, 31.1 subdivision 2, is amended to read: 31.2 Subd. 2. [PUBLIC EMPLOYEE.] "Public employee" means an 31.3 employee performing personal services for a governmental 31.4 subdivision under subdivision 6, whose salary is paid, in whole 31.5 or in part, from revenue derived from taxation, fees, 31.6 assessments, or from other sources. The term also includes 31.7 special classes of persons listed in subdivision 2a, but 31.8 excludes special classes of persons listed in subdivision 2b for 31.9 purposes of membership in the association. Public employee does 31.10 not include independent contractors and their employees. A 31.11 reemployed annuitant under section 353.37 is not considered to 31.12 be a public employee for purposes of that reemployment. 31.13 Sec. 8. Minnesota Statutes 1998, section 353.01, 31.14 subdivision 6, is amended to read: 31.15 Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 31.16 subdivision" means a county, city, town, school district within 31.17 this state, or a department or unit of state government, or any 31.18 public body whose revenues are derived from taxation, fees, 31.19 assessments or from other sources. 31.20 (b) Governmental subdivision also means the public 31.21 employees retirement association, the league of Minnesota 31.22 cities, the association of metropolitan municipalities, public 31.23 hospitals owned or operated by, or an integral part of, a 31.24 governmental subdivision or governmental subdivisions, the 31.25 association of Minnesota counties, the metropolitan intercounty 31.26 association, the Minnesota municipal utilities association, the 31.27 metropolitan airports commission,andthe Minneapolis employees 31.28 retirement fund for employment initially commenced after June 31.29 30, 1979, the range association of municipalities and schools, 31.30 soil and water conservation districts, and economic development 31.31 authorities created or operating under sections 469.090 to 31.32 469.108. 31.33 (c) Governmental subdivision does not mean any municipal 31.34 housing and redevelopment authority organized under the 31.35 provisions of sections 469.001 to 469.047; or any port authority 31.36 organized under sections 469.048 to469.068469.089; or any 32.1 hospital district organized or reorganized prior to July 1, 32.2 1975, under sections 447.31 to 447.37 or the successor of the 32.3 district, nor the Minneapolis community development agency. 32.4 Sec. 9. Minnesota Statutes 1999 Supplement, section 32.5 353.01, subdivision 10, is amended to read: 32.6 Subd. 10. [SALARY.] (a) "Salary" means: 32.7 (1) periodic compensation of a public employee, before 32.8 deductions for deferred compensation, supplemental retirement 32.9 plans, or other voluntary salary reduction programs, and also 32.10 means "wages" and includes net income from fees; and 32.11 (2) for a public employee who has prior service covered by 32.12 a local police or firefighters' relief association that has 32.13 consolidated with the public employees retirement association or 32.14 to which section 353.665 applies and who has elected coverage 32.15 either under the public employees police and fire fund benefit 32.16 plan under section 353A.08 following the consolidation or under 32.17 section 353.665, subdivision 4, "salary" means the rate of 32.18 salary upon which member contributions to the special fund of 32.19 the relief association were made prior to the effective date of 32.20 the consolidation as specified by law and by bylaw provisions 32.21 governing the relief association on the date of the initiation 32.22 of the consolidation procedure and the actual periodic 32.23 compensation of the public employee after the effective date of 32.24 consolidation. 32.25 (b) Salary does not mean: 32.26 (1) fees paid to district court reporters, unused 32.27 annual vacation or sick leave payments, in lump-sum or periodic 32.28 payments, severance payments, reimbursement of expenses, 32.29 lump-sum settlements not attached to a specific earnings period, 32.30 or workers' compensation payments; 32.31 (2) employer-paid amounts used by an employee toward the 32.32 cost of insurance coverage, employer-paid fringe benefits, 32.33 flexible spending accounts, cafeteria plans, health care expense 32.34 accounts, day care expenses, or any payments in lieu of any 32.35 employer-paid group insurance coverage, including the difference 32.36 between single and family rates that may be paid to a member 33.1 with single coverage and certain amounts determined by the 33.2 executive director to be ineligible; 33.3 (3) the amount equal to that which the employing 33.4 governmental subdivision would otherwise pay toward single or 33.5 family insurance coverage for a covered employee when, through a 33.6 contract or agreement with some but not all employees, the 33.7 employer: 33.8 (i) discontinues, or for new hires does not provide, 33.9 payment toward the cost of the employee's selected insurance 33.10 coverages under a group plan offered by the employer; 33.11 (ii) makes the employee solely responsible for all 33.12 contributions toward the cost of the employee's selected 33.13 insurance coverages under a group plan offered by the employer, 33.14 including any amount the employer makes toward other employees' 33.15 selected insurance coverages under a group plan offered by the 33.16 employer; and 33.17 (iii) provides increased salary rates for employees who do 33.18 not have any employer-paid group insurance coverages; and 33.19 (4) except as provided in section 353.86 or 353.87, 33.20 compensation of any kind paid to volunteer ambulance service 33.21 personnel or volunteer firefighters, as defined in subdivisions 33.22 35 and 36. 33.23 Sec. 10. Minnesota Statutes 1998, section 353.01, 33.24 subdivision 11a, is amended to read: 33.25 Subd. 11a. [TERMINATION OF PUBLIC SERVICE.] (a) 33.26 "Termination of public service" occurs when a member resigns or 33.27 is dismissed from public service by the employing governmental 33.28 subdivision, as evidenced by appropriate written record33.29transmitted to the association,or when a position ends and the 33.30 member who held the position is not considered by the 33.31 governmental subdivision to be on a temporary layoff, and the 33.32 employee does not, within 30 days ofresignation or dismissal33.33 the date the employment relationship ended, return toa33.34nontemporaryan employment position in the same governmental 33.35 subdivision. 33.36 (b) The termination of public service shall be recorded in 34.1 the association records upon receipt of an appropriate notice 34.2 from the governmental subdivision. 34.3 Sec. 11. Minnesota Statutes 1998, section 353.01, 34.4 subdivision 28, is amended to read: 34.5 Subd. 28. [RETIREMENT.] (a) "Retirement" means the 34.6 commencement of payment of an annuity based on a date designated 34.7 by the board of trustees. This date determines the rights under 34.8 this chapter which occur either before or after retirement. A 34.9 right to retirement is subject to termination of public service 34.10 under subdivision 11aor termination of membership under34.11subdivision 11b, the earlier of which will determine the date34.12membership and coverage cease. A right to retirementmust not34.13accrue withoutrequires a complete and continuous separation for 34.14 30 days from employment as a public employeeunder subdivision 234.15 and from provision of paid services to that employer. 34.16 (b) An individual who separates from employment as a public 34.17 employee and who, within 30 days of separation, returns to 34.18 provide service to a governmental subdivision as an independent 34.19 contractor or as an employee of an independent contractor, has 34.20 not satisfied separation requirements under paragraph (a). 34.21 (c) A former member of the basic or police and fire fund 34.22 who becomes a coordinated member upon returning to eligible, 34.23 nontemporary public service, terminates employment before 34.24 obtaining six months' allowable service under subdivision 16, 34.25 paragraph (a), in the coordinated fund, and is eligible to 34.26 receive an annuity the first day of the month after the most 34.27 recent termination date shall not accrue a right to a retirement 34.28 annuity under the coordinated fund. An annuity otherwise 34.29 payable to the former member must be based on the laws in effect 34.30 on the date of termination of the most recent service under the 34.31 basic or police and fire fund and shall be retroactive to the 34.32 first day of the month following that termination date or one 34.33 year preceding the filing of an application for retirement 34.34 annuity as provided by section 353.29, subdivision 7, whichever 34.35 is later. The annuity payment must be suspendedor reduced34.36 under the provisions of section 353.37, if earned compensation 35.1 for the reemployment equals or exceeds the amounts indicated 35.2 under that section. The association will refund the employee 35.3 deductions made to the coordinated fund, with interest under 35.4 section 353.34, subdivision 2, return the accompanying employer 35.5 contributions, and remove the allowable service credits covering 35.6 the deductions refunded. 35.7(b)(d) Notwithstanding the 30-day separation requirement 35.8 under paragraph (a), a member of the defined benefit plan under 35.9 this chapter, who also participates in the public employees 35.10 defined contribution plan under chapter 353D for other public 35.11 service, may be paid, if eligible, a retirement annuity from the 35.12 defined benefit plan while participating in the defined 35.13 contribution plan. 35.14 Sec. 12. Minnesota Statutes 1998, section 353.01, 35.15 subdivision 32, is amended to read: 35.16 Subd. 32. [COORDINATED MEMBER.] "Coordinated member" means 35.17 any public employee, including any public hospital employee, 35.18 covered by any agreement or modification made between the state 35.19 and the Secretary of Health, Education and Welfare, making the 35.20 provisions of the federal Old Age, Survivors and Disability 35.21 Insurance Act applicable to the member if membership eligibility 35.22 criteria are met under this chapter. Coordinated member also 35.23 means a former basic member whoterminates public service under35.24subdivision 11a,has a complete and continuous separation for at 35.25 least 30 days from employment as a public employee meeting 35.26 requirements specified in subdivision 28, paragraphs (a) and 35.27 (b), and who reenters public servicein a nontemporary position,35.28 as a public employee and meets the membership eligibility 35.29 criteria under this chapter. 35.30 Sec. 13. Minnesota Statutes 1998, section 353.15, 35.31 subdivision 2, is amended to read: 35.32 Subd. 2. [AUTOMATIC DEPOSITS.] The association maypay an35.33 remit, through an automatic deposit system, annuity, benefit, or 35.34 refund payments only to atrust company, qualified under chapter35.3548,financial institution associated with the National Automated 35.36 Clearinghouse Association or a comparable successor organization 36.1 that is trustee for a person eligible to receivesuchthe 36.2 annuity, benefit, or refund. Upon the request ofa retired,36.3disabledthe retiree, disabilitant, survivor, or former member, 36.4 the association may mail or send by electronic transfer the 36.5 annuity, benefit or refund check toa banking institution,36.6savings association or credit unionthe applicable financial 36.7 institution for depositto suchin the person's account or joint 36.8 account with a spouse. The association may prescribe the 36.9 conditions under which such payment will be made. 36.10 Sec. 14. Minnesota Statutes 1998, section 353.27, 36.11 subdivision 4, is amended to read: 36.12 Subd. 4. [EMPLOYERSREPORTING REQUIREMENTS; CONTRIBUTIONS; 36.13 MEMBER STATUS.] (a) A representative authorized by the head of 36.14 each department shall deduct employee contributions from the 36.15 salary of eachmemberemployee who qualifies for membership 36.16 under this chapter andissue or approve one warrantremit 36.17 payment in a manner prescribed by the executive director for the 36.18 aggregate amount of the employee contributions, the employer 36.19 contributions and the additional employer contributionsto be36.20receivedwithin2014 calendar daysin the office of the36.21association. The head of each department or designee shall,for 36.22 each pay periodin which employee contributions are deducted,36.23 submit to the association a salary deduction report,in theform36.24 format prescribed by the executive director, showing. Data to 36.25 be submitted as part of salary deduction reporting may include, 36.26 but are not limited to: 36.27(a)(1) the legal names andthe association membership36.28numbers, listed in alphabetical order,social security numbers 36.29 of employees who are members; 36.30(b) the legal names of all new public employees and the36.31effective dates of appointment; (c)(2) the amount of each 36.32 employee's salary deduction;(d)36.33 (3) the amount of salary from which each deduction was 36.34 made;(e) effective dates of member terminations of public36.35service accompanied by the applicable status code as set by the36.36association for those terminations caused by death or37.1retirement; (f) effective dates of all temporary layoffs and37.2leaves of absence accompanied by the applicable status code as37.3set by the association; and (g)37.4 (4) the beginning and ending dates of the payroll period 37.5 covered and the date of actual payment; and 37.6 (5) adjustments or corrections covering past pay periods. 37.7Reports of contributions must be accompanied by a37.8membership enrollment form37.9 (b) Employers must furnish the data required for enrollment 37.10 for each new employee who qualifies for membership in theform37.11 format prescribed by the executive director. The required 37.12 enrollmentforms fromdata on new employees must becollected by37.13the employer andsubmitted to the associationwithin 30 days37.14following the date of employmentprior to or concurrent with the 37.15 submission of the initial employee salary deduction. The 37.16 employer shall also report to the association all member 37.17 employment status changes, such as leaves of absence, 37.18 terminations, and death, and the effective dates of those 37.19 changes, on an ongoing basis for the payroll cycle in which they 37.20 occur. The employer shall furnishsuch additionaldata, forms, 37.21 and reportson magnetic media on other formsas may berequested37.22 required by the executive director for proper administration of 37.23 the retirement system. Before implementing new or different 37.24 computerized reporting requirements, the executive director 37.25 shall give advance notice to governmental subdivisions to allow 37.26 time for system modifications. 37.27(b)(c) Notwithstanding paragraph (a), the association may 37.28 provide for less frequent reporting and payments for small 37.29 employers. 37.30 Sec. 15. Minnesota Statutes 1998, section 353.27, 37.31 subdivision 12, is amended to read: 37.32 Subd. 12. [OMITTED SALARY DEDUCTIONS; OBLIGATIONS.] (a) In 37.33 the case of omission of required deductions from the salary of 37.34 an employee, the department head or designee shall immediately, 37.35 upon discovery, report the employee for membership and deduct 37.36 the employee deductions under subdivision 4. Upon receipt of38.1billing from the association,in the current pay period or the 38.2 pay period immediately following the discovery of the omission. 38.3 Payment for the omitted obligations shall be made in accordance 38.4 with reporting procedures and methods established by the 38.5 executive director. 38.6 (b) When the entire omission period of an employee does not 38.7 exceed 60 days, the governmental subdivision may report and 38.8 submit payment of the omitted employee deductions and omitted 38.9 employer contributions through the reporting processes under 38.10 subdivision 4. 38.11 (c) When the omission period of an employee exceeds 60 38.12 days, the governmental subdivision shall furnish to the 38.13 association sufficient data and documentation upon which 38.14 obligations for omitted employee and employer contributions can 38.15 be calculated. The omitted employee deductions must be deducted 38.16 from the employee'snextsubsequent salary payment or payments 38.17 and remitted to the association. The employee shall pay omitted 38.18 employee deductions due for the 60 days prior to the end of the 38.19 last pay period in the omission period during which salary was 38.20 earned. The employer shall pay any remaining omitted employee 38.21 deductions and any omitted employer contributions, plus 38.22 cumulative interest at an annual rate of 8.5 percent compounded 38.23 annually, from the date or dates each omitted employee 38.24 contribution was first payable. 38.25(b)(d) An employer shall not hold an employee liable for 38.26 omitted employee deductions beyond the pay period dates under 38.27 paragraph(a)(c), nor attempt to recover from the employee 38.28 those employee deductions paid by the employer on behalf of the 38.29 employee. Omitted deductions due under paragraph(a)(c) which 38.30 are not paid by the employee constitute a liability of the 38.31 employer that failed to deduct the omitted deductions from the 38.32 employee's salary. The employer shall make payment with 38.33 interest at an annual rate of 8.5 percent compounded annually. 38.34 Omitted employee deductions are no longer due if an employee 38.35 terminates public service before making payment of omitted 38.36 employee deductions to the association, but the employer remains 39.1 liable to pay omitted employer contributions plus interest at an 39.2 annual rate of 8.5 percent compounded annually from the date the 39.3 contributions were first payable. 39.4(c)(e) The association may not commence action for the 39.5 recovery of omitted employee deductions and employer 39.6 contributions after the expiration of three calendar years after 39.7 the calendar year in which the contributions and deductions were 39.8 omitted. Except as provided under paragraph (b), no payment may 39.9 be made or accepted unless the association has already commenced 39.10 action for recovery of omitted deductions. An action for 39.11 recovery commences on the date of the mailing of any written 39.12 correspondence from the association requesting information from 39.13 the governmental subdivision upon which to determine whether or 39.14 not omitted deductions occurred. 39.15 Sec. 16. Minnesota Statutes 1998, section 353.33, 39.16 subdivision 2, is amended to read: 39.17 Subd. 2. [APPLICATIONS; ACCRUAL OF BENEFITS.] Every claim 39.18 or demand for a total and permanent disability benefit must be 39.19 initiated by written application in the manner and form 39.20 prescribed by the executive director showing compliance with the 39.21 statutory conditions qualifying the applicant for a total and 39.22 permanent disability benefit and filed with the executive 39.23 director. A member or former member who became totally and 39.24 permanently disabled during a period of membership shall file 39.25 application for total and permanent disability benefits within 39.26 three years next following termination of public service. This 39.27 benefit begins to accrue the day following the commencement of 39.28 disability, 90 days preceding the filing of the application, or, 39.29 if annual or sick leave is paid for more than the 90-day period, 39.30 from the date salary ceased, whichever is later. No member is 39.31 entitled to receive a disability benefit payment when there 39.32 remains to the member's credit unused annual leave or sick leave 39.33 or under any other circumstances when, during the period of 39.34 disability, there has been no impairment of the person's 39.35 salary. Payment must not accrue beyond the end of the month in 39.36 which entitlement has terminated. If the disabilitant dies 40.1 prior to negotiating the check for the month in which death 40.2 occurs, payment is made to the surviving spouse, or if none, to 40.3 the designated beneficiary, or if none, to the estate. An 40.4 applicant for total and permanent disability benefits may file a 40.5 retirement annuity application under section 353.29, subdivision 40.6 4, simultaneously with an application for total and permanent 40.7 disability benefits. The retirement annuity application is void 40.8 upon the determination of the entitlement for disability 40.9 benefits by the executive director. If disability benefits are 40.10 denied, the retirement annuity application must be initiated and 40.11 processed. 40.12 Sec. 17. Minnesota Statutes 1998, section 353.33, 40.13 subdivision 6, is amended to read: 40.14 Subd. 6. [CONTINUING ELIGIBILITY FOR BENEFITS.] The 40.15 association shall determine eligibility for continuation of 40.16 disability benefits and require periodic examinations and 40.17 evaluations of disabled members as frequently as deemed 40.18 necessary. The association shall require the disabled member to 40.19 provide and authorize release of medical evidence, including all 40.20 medical records and information from any source, relating to an 40.21 application for continuation of disability benefits. Disability 40.22 benefits are contingent upon a disabled person's participation 40.23 in a vocational rehabilitation program if the executive director 40.24 determines that the disabled person may be able to return to a 40.25 gainful occupation. If a member is found to be no longer 40.26 totally and permanently disabledand is reinstated to the40.27payroll, payments must cease the first of the month following 40.28 thereinstatement to the payrollexpiration of 30 days after the 40.29 member receives a certified letter notifying the member that 40.30 payments will cease. 40.31 Sec. 18. Minnesota Statutes 1998, section 353.34, 40.32 subdivision 1, is amended to read: 40.33 Subdivision 1. [REFUND OR DEFERRED ANNUITY.] (a) A former 40.34 member is entitled to a refund of accumulated employee 40.35 deductions under subdivision 2, or to a deferred annuity under 40.36 subdivision 3.An active member of a fund enumerated in section41.1356.30, subdivision 3, clause (7), (8), or (14), who terminates41.2public service in any of those funds and becomes a member of41.3another fund enumerated in those clauses may receive a refund of41.4employee contributions plus six percent interest compounded41.5annually from the fund in which the member terminated service.41.6 Application for a refund may not be made prior to the date of 41.7 termination of public service or the termination of membership, 41.8 whichever is sooner. Except as specified in paragraph (b), a 41.9 refund must be paid within 120 days following receipt of the 41.10 application unless the applicant has again become a public 41.11 employee required to be covered by the association. 41.12 (b) If an individual was granted an authorized temporary 41.13 layoff, a refund is not payable before termination of membership 41.14 under section 353.01, subdivision 11b, clause (3). 41.15 (c) An individual who terminates public service covered by 41.16 the public employees retirement association general plan or the 41.17 public employees retirement association police and fire plan, or 41.18 the public employees local government corrections service 41.19 retirement plan, and who becomes an active member covered by one 41.20 of the other two plans, may receive a refund of employee 41.21 contributions plus six percent interest compounded annually from 41.22 the plan in which the member terminated service. 41.23 Sec. 19. Minnesota Statutes 1999 Supplement, section 41.24 353.64, subdivision 1, is amended to read: 41.25 Subdivision 1. [POLICE AND FIREFUNDPLAN MEMBERSHIP; 41.26 MANDATORY.] A governmental subdivision must report a public 41.27 employee for membership in the police and fire plan if the 41.28 employee is employed full-time as specified in clause (1), (2), 41.29 or (3): 41.30 (1) a full-time police officer or a person in charge of a 41.31 designated police or sheriff's department, who by virtue of that 41.32 employment is required by the employing governmental subdivision 41.33 to be and is licensed by the Minnesota peace officer standards 41.34 and training board under sections 626.84 to 626.863, who is 41.35 charged with the prevention and detection of crime, who has the 41.36 full power of arrest, who is assigned to a designated police or 42.1 sheriff's department, and whose primary job is the enforcement 42.2 of the general criminal laws of the state; 42.3 (2) a full-time firefighter or a person in charge of a 42.4 designated fire company or companies who is engaged in the 42.5 hazards of fire fighting; or 42.6 (3) a full-time police officer or firefighter meeting all 42.7 requirements of clause (1) or (2), as applicable, who as part of 42.8 the position is periodically assigned to employment duties in 42.9 the same department but not within the scope of this subdivision. 42.10 An individual to which clause (3) applies must contribute 42.11 as a member of the police and fire plan for both the primary and 42.12 secondary services that are provided to the employing 42.13 governmental subdivision. 42.14 Subd. 1a. [POLICE AND FIRE PLAN; OTHER MEMBERS.] (a) A 42.15 person who prior to July 1, 1961, was a member of the police and 42.16 firefundplan, by virtue of being a police officer or 42.17 firefighter, shall, as long as the person remains in either 42.18 position, continue membership in thefundplan. 42.19 (b) A person who was employed by a governmental subdivision 42.20 as a police officer and was a member of the police and firefund42.21 plan on July 1, 1978, by virtue of being a police officer as 42.22 defined by this section on that date, and if employed by the 42.23 same governmental subdivision in a position in the same 42.24 department in which the person was employed on that date, 42.25 continues to be a member of thefundplan, whether or not that 42.26 person has the power of arrest by warrant and is licensed by the 42.27 peace officers standards and training board after that date. 42.28 (c) A person who was employed as a correctional officer by 42.29 Rice county before July 1, 1998, for the duration of employment 42.30 in the correctional position held on July 1, 1998, continues to 42.31 be a member of the public employees police and fire plan, 42.32 whether or not the person has the power of arrest by warrant and 42.33 is licensed by the peace officers standards and training board 42.34 after that date. 42.35(c)(d) A person who was employed by a governmental 42.36 subdivision as a police officer or a firefighter, whichever 43.1 applies, was an active member of the local police or salaried 43.2 firefighters relief association located in that governmental 43.3 subdivision by virtue of that employment as of the effective 43.4 date of the consolidation as authorized by sections 353A.01 to 43.5 353A.10, and has elected coverage by the public employees police 43.6 and firefund benefitplan, shall become a member of the police 43.7 and firefundplan after that date if employed by the same 43.8 governmental subdivision in a position in the same department in 43.9 which the person was employed on that date. 43.10(d) Any other employee serving on a full-time basis as a43.11police officer as defined in subdivision 2 or as a firefighter43.12as defined in subdivision 3 on or after July 1, 1961, shall43.13become a member of the public employees police and fire fund.43.14(e) An employee serving on less than a full-time basis as a43.15police officer shall become a member of the public employees43.16police and fire fund only after a resolution stating that the43.17employee should be covered by the police and fire fund is43.18adopted by the governing body of the governmental subdivision43.19employing the person declaring that the position which the43.20person holds is that of a police officer.43.21(f) An employee serving on less than a full-time basis as a43.22firefighter shall become a member of the public employees police43.23and fire fund only after a resolution stating that the employee43.24should be covered by the police and fire fund is adopted by the43.25governing body of the governmental subdivision employing the43.26person declaring that the position which the person holds is43.27that of a firefighter.43.28(g) A police officer or firefighter employed by a43.29governmental subdivision who by virtue of that employment is43.30required by law to be a member of and to contribute to any43.31police or firefighter relief association governed by section43.3269.77 which has not consolidated with the public employees43.33police and fire fund,(e) Any police officer or firefighter of a 43.34 relief association that has consolidated with the association 43.35 for which the employee has not elected coverage by the public 43.36 employees police and firefund benefitplan as provided in 44.1 sections 353A.01 to 353A.10, or any police officer or 44.2 firefighter to whom section 353.665 applies who has not elected 44.3 coverage by the public employees police and firefund benefit44.4 plan as provided in section 353.665, subdivision 4, shallnot44.5 become a member of the public employees police and firefund44.6 plan, but shall not be subject to the provisions of sections 44.7 353.651 to 353.659 unless an election for such coverage is made 44.8 under section 353.665, subdivision 4. 44.9 Sec. 20. Minnesota Statutes 1998, section 353.64, 44.10 subdivision 2, is amended to read: 44.11 Subd. 2. [POLICE AND FIRE FUND MEMBERSHIP; PART-TIME 44.12 EMPLOYMENT COVERAGE OPTION.]Before a(a) The governing body of 44.13 a governmental subdivision may adopt a resolution, subject to 44.14 requirements specified in paragraph (b), declaring that a public 44.15 employee employed in a position on a part-time basis by that 44.16 governmental subdivision shall be covered by the police and fire 44.17 plan for that employment. 44.18 (b) If the public employee's position is related to police 44.19 service, the resolution is valid if conditions specified in 44.20 paragraph (c) are met. If the public employee's position is 44.21 related to fire service, the resolution is valid if conditions 44.22 specified in paragraph (d) are met. If the public employee in 44.23 the applicable position is periodically assigned to employment 44.24 duties not within the scope of this subdivision, the resolution 44.25 is considered valid if the governing body of the governmental 44.26 subdivision declares that the public employee's position, for 44.27 primary services provided, satisfies all requirements of 44.28 subdivision 1, clause (3), other than the requirement of 44.29 full-time employment. 44.30 (c) For the governing bodymayof the governmental 44.31 subdivision to declare a position to be that of a police 44.32 officer, the duties and qualifications of the person so employed 44.33 must,asat a minimum,include employment as an officer of a44.34designated police department or sheriff's office or person in44.35charge of a designated police department or sheriff's office44.36whose primary job it is to enforce the law, who is licensed by45.1the Minnesota board of peace officer standards and training45.2under sections 626.84 to 626.863, who is engaged in the hazards45.3of protecting the safety and property of others, and who has the45.4power to arrest by warrant.45.5A police officer who is periodically assigned to employment45.6duties not within the scope of this subdivision may contribute45.7to the public employees police and fire fund for all service, if45.8a resolution declaring that the primary position held by the45.9person is that of a police officer, is adopted by the governing45.10body of the department, and is promptly submitted to the45.11executive director.satisfy all requirements of subdivision 1, 45.12 clause (1), other than the requirement of full-time employment. 45.13 (d) For the governing body of a governmental subdivision to 45.14 declare a position to be that of a firefighter, the duties and 45.15 qualifications of the person so employed must, at a minimum, 45.16 satisfy all requirements of subdivision 1, clause (2), other 45.17 than the requirement of full-time employment. 45.18 Sec. 21. Minnesota Statutes 1998, section 353.64, 45.19 subdivision 3, is amended to read: 45.20 Subd. 3. [POLICE AND FIRE FUND MEMBERSHIP; EXCLUSION.] 45.21Before a governing body may declare a position to be that of a45.22firefighter, the duties of the person so employed must, as a45.23minimum, include services as an employee of a designated fire45.24company or person in charge of a designated fire company or45.25companies who is engaged in the hazards of fire fighting. A45.26firefighter who is periodically assigned to employment duties45.27outside the scope of firefighting may contribute to the public45.28employees police and fire fund for all service, if a resolution45.29declaring that the primary position held by the person is that45.30of a firefighter, is adopted by the governing body of the45.31company or companies, and is promptly submitted to the executive45.32director.A police officer or firefighter employed by a 45.33 governmental subdivision who by virtue of that employment is 45.34 required by law to be a member of and to contribute to any 45.35 police or firefighter relief association governed by section 45.36 69.77 which has not consolidated with the public employees 46.1 police and fire plan shall not become a member of the public 46.2 employees police and fire plan. 46.3 Sec. 22. Minnesota Statutes 1998, section 353.64, 46.4 subdivision 4, is amended to read: 46.5 Subd. 4. [RESOLUTION FILING.] (a) A copy of the resolution 46.6 of the governing body declaring a position to be that of police 46.7 officer or firefighter shall be promptly filed with the board of 46.8 trustees and shall be irrevocable. 46.9 (b) Following notice from the association, if a valid 46.10 resolution is not filed with the public employees retirement 46.11 association within six months following the date of that notice, 46.12 any contributions or deductions made to the police and fire fund 46.13 for the applicable employment are deemed to be contributions or 46.14 deductions transmitted in error under section 353.27, 46.15 subdivision 7a. 46.16 Sec. 23. Minnesota Statutes 1998, section 353.656, 46.17 subdivision 1, is amended to read: 46.18 Subdivision 1. [IN LINE OF DUTY; COMPUTATION OF BENEFITS.] 46.19 A member of the police and firefundplan who becomes disabled 46.20 and physically unfit to perform duties as a police officeror, 46.21 firefightersubsequent to June 30, 1973, or paramedic as defined 46.22 under section 353.64, subdivision 10, as a direct result of an 46.23 injury, sickness, or other disability incurred in or arising out 46.24 of any act of duty, which has or is expected to render the 46.25 member physically or mentally unable to perform the duties as a 46.26 police officeror, firefighter, or paramedic as defined under 46.27 section 353.64, subdivision 10, for a period of at least one 46.28 year, shall receive disability benefits during the period of 46.29 such disability. The benefits must be in an amount equal to 60 46.30 percent of the "average salary"underas defined in section 46.31 353.651, subdivision32, plus an additional percent specified 46.32 in section 356.19, subdivision 6, ofsaidthat average salary 46.33 for each year of service in excess of 20 years.ShouldIf 46.34 disability under this subdivisionoccuroccurs before the member 46.35 has at least five years of allowable service credit in the 46.36 police and firefundplan, the disability benefit must be 47.1 computed on the "average salary" from which deductions were made 47.2 for contribution to the police and fire fund. 47.3 Sec. 24. Minnesota Statutes 1998, section 353.656, 47.4 subdivision 3, is amended to read: 47.5 Subd. 3. [NONDUTY DISABILITY BENEFIT.] Any member of the 47.6 police and fire plan who becomes disabled after not less than 47.7 one year of allowable service because of sickness or injury 47.8 occurring while not on duty as a police officeror, firefighter, 47.9 or paramedic as defined under section 353.64, subdivision 10, 47.10 and by reason of that sickness or injury the member has been or 47.11 is expected to be unable to perform the duties as a police 47.12 officeror, firefighter, or paramedic as defined under section 47.13 353.64, subdivision 10, for a period of at least one year, is 47.14 entitled to receive a disability benefit. The benefit must be 47.15 paid in the same manner as if the benefit were paid under 47.16 section 353.651. If a disability under this subdivision occurs 47.17 after one but in less than 15 years of allowable service, the 47.18 disability benefit must be the same as though the member had at 47.19 least 15 years service. For a member who is employed as a 47.20 full-time firefighter by the department of military affairs of 47.21 the state of Minnesota, allowable service as a full-time state 47.22 military affairs department firefighter credited by the 47.23 Minnesota state retirement system may be used in meeting the 47.24 minimum allowable service requirement of this subdivision. 47.25 Sec. 25. Minnesota Statutes 1998, section 353.71, 47.26 subdivision 2, is amended to read: 47.27 Subd. 2. [DEFERRED ANNUITY COMPUTATION; AUGMENTATION.] (a) 47.28 The deferred annuity, if any,accruing under subdivision 1, or 47.29 under sections 353.34, subdivision 3, and 353.68, subdivision 4, 47.30 must be computedin the manner provided in said sections,on the 47.31 basis of allowable service prior to termination of public 47.32 service and augmented as providedhereinin this paragraph. The 47.33 required reserves applicable to a deferred annuity,or to an47.34annuity for which a former member was eligible but had not47.35applied,or to any deferred segment of an annuityshallmust be 47.36 determined as ofthe date the annuity begins to accrue and shall48.1be augmented fromthe first day of the month following the month 48.2 in which the former member ceased to be a public employee, or 48.3 July 1, 1971, whichever is later, to the first day of the month48.4in which the annuity begins to accrue,. These required reserves 48.5 must be augmented at the rate of five percentper annumannually 48.6 compounded annually until January 1, 1981, and at the rate of 48.7 three percent thereafter until January 1 of the year following 48.8 the year in which the former member attains age 55. From that 48.9 date to the effective date of retirement, the rate is five 48.10 percentper annumcompounded annually. If a person has more 48.11 than one period of uninterrupted service, the required reserves 48.12 related to each periodshallmust be augmentedby interest48.13pursuant to this subdivisionas specified in this paragraph. 48.14 The sum of the augmented required reservesso determined shall48.15beis the present value of the annuity. Uninterrupted service 48.16 for the purpose of this subdivisionshall meanmeans periods of 48.17 covered employment during which the employee has not been 48.18 separated from public service for more than two years. If a 48.19 person repays a refund, the restored servicerestored thereby48.20shallmust be considered as continuous with the next period of 48.21 service for which the employee has credit with this association. 48.22The formula percentages used for each period of uninterrupted48.23service shall be those as would be applicable to a new employee.48.24 This sectionshallmust not reduce the annuity otherwise payable 48.25 under this chapter. Thissubdivisionparagraphshall apply48.26 applies to individuals who become deferred annuitantsof record48.27 on or after July 1, 1971, and to employees who thereafter become48.28deferred annuitants; it shall also apply. For a member who 48.29 became a deferred annuitant before July 1, 1971, the paragraph 48.30 applies from July 1, 1971,toif the formermembers who make48.31applicationactive member applies for an annuity after July 1, 48.32 1973. 48.33 (b) The retirement annuity or disability benefit of, or the 48.34 survivor benefit payable on behalf of, a former member who 48.35 terminated service before July 1, 1997, or the survivor benefit 48.36 payable on behalf of a basic or police and fire member who was 49.1 receiving disability benefits before July 1, 1997, which isnot49.2 first payableuntilafter June 30, 1997, must be increased on an 49.3 actuarial equivalent basis to reflect the change in the 49.4 postretirement interest rate actuarial assumption under section 49.5 356.215, subdivision 4d, from five percent to six percent under 49.6 a calculation procedure and tables adopted by the board and 49.7 approved by the actuary retained by the legislative commission 49.8 on pensions and retirement. 49.9 Sec. 26. Minnesota Statutes 1998, section 353B.11, 49.10 subdivision 3, is amended to read: 49.11 Subd. 3. [AMOUNT; SURVIVING SPOUSE BENEFIT.] (a) The 49.12 surviving spouse benefit shall be 30 percent of the salary base 49.13 for the former members of the following consolidating relief 49.14 associations: 49.15 (1) Albert Lea firefighters relief association; 49.16 (2) Albert Lea police relief association; 49.17 (3) Anoka police relief association; 49.18 (4) Austin police relief association; 49.19 (5) Brainerd police benefit association; 49.20 (6) Crookston police relief association; 49.21 (7) Faribault fire department relief association; and 49.22 (8) West St. Paul firefighters relief association. 49.23 (b) The surviving spouse benefit shall be 25 percent of the 49.24 salary base for the former members of the following 49.25 consolidating relief associations: 49.26 (1) Chisholm police relief association; 49.27 (2) Duluth firefighters relief association; 49.28 (3) Duluth police pension association; 49.29 (4) Fairmont police benefit association; 49.30 (5) Red Wing fire department relief association; 49.31 (6) South St. Paul police relief association; and 49.32 (7) West St. Paul police relief association. 49.33 (c) The surviving spouse benefit shall be 24 percent of the 49.34 salary base for the former members of the following 49.35 consolidating relief associations: 49.36 (1) Fridley police pension association; 50.1 (2) Richfield police relief association; 50.2 (3) Rochester fire department relief association; 50.3 (4) Rochester police relief association; 50.4 (5) Winona fire department relief association; and 50.5 (6) Winona police relief association. 50.6 (d) The surviving spouse benefit shall be 40 percent of the 50.7 salary base for the former members of the following 50.8 consolidating relief associations: 50.9 (1) Columbia Heights fire department relief association, 50.10 paid division; and 50.11 (2) New Ulm police relief association. 50.12 (e) The surviving spouse benefit shall be$250 per month30 50.13 percent of the salary base for the former members of the 50.14 following consolidating relief associations: 50.15 (1) Hibbing firefighters relief association; and 50.16 (2) Hibbing police relief association. 50.17 (f) The surviving spouse benefit shall be 23.75 percent of 50.18 the salary base for the former members of the following 50.19 consolidating relief associations: 50.20 (1) Crystal police relief associations; and 50.21 (2) Minneapolis police relief association. 50.22 (g) The surviving spouse benefit shall be 32 percent of the 50.23 salary base for the former members of the following 50.24 consolidating relief associations: 50.25 (1) St. Cloud fire department relief association; and 50.26 (2) St. Cloud police relief association. 50.27 (h) The surviving spouse benefit shall be one-half of the 50.28 service pension or disability benefit which the deceased member 50.29 was receiving as of the date of death, or of the service pension 50.30 which the deferred member would have been receiving if the 50.31 service pension had commenced as of the date of death or of the 50.32 service pension which the active member would have received 50.33 based on the greater of the allowable service credit of the 50.34 person as of the date of death or 20 years of allowable service 50.35 credit if the person would have been eligible as of the date of 50.36 death, for the former members of the following consolidating 51.1 relief associations: 51.2 (1) Virginia fire department relief association; and 51.3 (2) Virginia police relief association. 51.4 (i) The surviving spouse benefit shall be the following for 51.5 the former members of the consolidating relief associations as 51.6 indicated: 51.7 (1) 30 percent of the salary base, reduced by any amount 51.8 awarded or payable from the service pension or disability 51.9 benefit of the deceased former firefighter to a former spouse of 51.10 the member by virtue of the legal dissolution of the member's 51.11 marriage to the former spouse if the surviving spouse married 51.12 the member after the time of separation from active service, 51.13 Austin firefighters relief association; 51.14 (2) 27.333 percent of the salary base, or one-half of the 51.15 service pension payable to or accrued by the deceased former 51.16 member, whichever is greater, Bloomington police relief 51.17 association; 51.18 (3) 72.25 percent of the salary base, Buhl police relief 51.19 association; 51.20 (4) 50 percent of the service pension which the active 51.21 member would have received based on allowable service credit to 51.22 the date of death and prospective service from the date of death 51.23 until the date on which the person would have attained the 51.24 normal retirement age, 50 percent of the service pension which 51.25 the deferred member would have been receiving if the service 51.26 pension had commenced as of the date of death or $175 per month 51.27 if the deceased member was receiving a service pension or 51.28 disability benefit as of the date of death, Chisholm 51.29 firefighters relief association; 51.30 (5) two-thirds of the service pension or disability benefit 51.31 which the deceased member was receiving as of the date of death, 51.32 or of the service pension which the deferred member would have 51.33 been receiving if the service pension had commenced as of the 51.34 date of death or of the service pension which the active member 51.35 would have received based on the greater of the allowable 51.36 service credit of the person as of the date of death or 20 years 52.1 of allowable service credit if the person would have been 52.2 eligible as of the date of death, Columbia Heights police relief 52.3 association; 52.4 (6) the greater of $300 per month or one-half of the 52.5 service pension or disability benefit which the deceased member 52.6 was receiving as of the date of death, or of the service pension 52.7 which the deferred member would have been receiving if the 52.8 service pension had commenced as of the date of death or of the 52.9 service pension which the active member would have received 52.10 based on the allowable service credit of the person as of the 52.11 date of death if the person would have been eligible as of the 52.12 date of death, Crookston fire department relief association; 52.13 (7) $100 per month, Faribault police benefit association; 52.14 (8) 60 percent of the service pension or disability benefit 52.15 which the deceased member was receiving as of the date of death, 52.16 or of the service pension which the deferred member would have 52.17 been receiving if the service pension had commenced as of the 52.18 date of death or of the service pension which the active member 52.19 would have received based on the allowable service credit of the 52.20 person as of the date of death if the person would have been 52.21 eligible as of the date of death, Mankato fire department relief 52.22 association; 52.23 (9) $175 per month, Mankato police benefit association; 52.24 (10) 26.25 percent of the salary base, Minneapolis fire 52.25 department relief association; 52.26 (11) equal to the service pension or disability benefit 52.27 which the deceased member was receiving as of the date of death, 52.28 or of the service pension which the deferred member would have 52.29 been receiving if the service pension had commenced as of the 52.30 date of death or of the service pension which the active member 52.31 would have received based on the allowable service credit of the 52.32 person as of the date of death if the person would have been 52.33 eligible as of the date of death, Red Wing police relief 52.34 association; 52.35 (12) 78.545 percent of the benefit amount payable prior to 52.36 the death of the deceased active, disabled, deferred, or retired 53.1 firefighter if that firefighter's benefit was 55 percent of 53.2 salary or would have been 55 percent of salary if the 53.3 firefighter had survived to begin benefit receipt; or 80 percent 53.4 of the benefit amount payable prior to the death of the deceased 53.5 active, disabled, deferred, or retired firefighter if that 53.6 firefighter's benefit was 54 percent of salary or would have 53.7 been 54 percent of salary if the firefighter had survived to 53.8 begin benefit receipt, Richfield fire department relief 53.9 association; 53.10 (13) 40 percent of the salary base for a surviving spouse 53.11 of a deceased active member, disabled member, or retired or 53.12 deferred member with at least 20 years of allowable service, or 53.13 the prorated portion of 40 percent of the salary base that bears 53.14 the same relationship to 40 percent that the deceased member's 53.15 years of allowable service bear to 20 years of allowable service 53.16 for the surviving spouse of a deceased retired or deferred 53.17 member with at least ten but less than 20 years of allowable 53.18 service, St. Louis Park fire department relief association; 53.19 (14) 26.6667 percent of the salary base, St. Louis Park 53.20 police relief association; 53.21 (15) 27.5 percent of the salary base, St. Paul fire 53.22 department relief association; 53.23 (16)2027.5 percent of the salary base, St. Paul police 53.24 relief association; and 53.25 (17) 27 percent of the salary base, South St. Paul 53.26 firefighters relief association. 53.27 Sec. 27. Minnesota Statutes 1998, section 354.05, 53.28 subdivision 2, is amended to read: 53.29 Subd. 2. [TEACHER.] (a) "Teacher" means: 53.30 (1) a person who renders service as a teacher, supervisor, 53.31 principal, superintendent, librarian, nurse, counselor, social 53.32 worker, therapist, or psychologist in the public schools of the 53.33 state located outside of the corporate limits of the cities of 53.34 the first classas those cities were so classified on January 1,53.351979,or in the Minnesota state colleges and universities 53.36 system, or in any charitable, penal, or correctional 54.1 institutions of a governmental subdivision, or who is engaged in 54.2 educational administration in connection with the state public 54.3 school system, including the Minnesota state colleges and 54.4 university system, but excluding the University of Minnesota, 54.5 whether the position be a public office or an employment, not 54.6 including members or officers of any general governing or 54.7 managing board or body; 54.8 (2) an employee of the teachers retirement association 54.9 unless the employee is covered by the Minnesota state retirement 54.10 systemby virtue ofdue to prior employment bythe association54.11 that system; 54.12 (3) a person who renders teaching service on a part-time 54.13 basis and who also renders other services for a single employing 54.14 unit.In such cases, the executive director shall determine54.15whether all or none of the combined service is covered by the54.16association, however aA person whose teaching service comprises 54.17 at least 50 percent of the combined employment salary is a 54.18 member of the association for all services with the single 54.19 employing unit. If the person's teaching service comprises less 54.20 than 50 percent of the combined employment salary, the executive 54.21 director must determine whether all or none of the combined 54.22 service is covered by the association. 54.23 (b)The termTeacher does not mean: 54.24 (1)an employee described in section 352D.02, subdivision54.251a, who is hired after the effective date of Laws 1986, chapter54.26458;54.27(2)a person who works for a school or institution as an 54.28 independent contractor as defined by the Internal Revenue 54.29 Service; 54.30(3)(2) a person employed in subsidized on-the-job 54.31 training, work experience or public service employment as an 54.32 enrollee under the federal Comprehensive Employment and Training 54.33 Act from and after March 30, 1978, unless the person has, as of 54.34 the later of March 30, 1978, or the date of employment, 54.35 sufficient service credit in the retirement association to meet 54.36 the minimum vesting requirements for a deferred retirement 55.1 annuity, or the employer agrees in writing on forms prescribed 55.2 by the executive director to make the required employer 55.3 contributions, including any employer additional contributions, 55.4 on account of that person from revenue sources other than funds 55.5 provided under the federal Comprehensive Training and Employment 55.6 Act, or the person agrees in writing on forms prescribed by the 55.7 executive director to make the required employer contribution in 55.8 addition to the required employee contribution; 55.9(4)(3) a person holding a part-time adult supplementary 55.10 technical college license who renders part-time teaching service 55.11 or a customized trainer as defined by the Minnesota state 55.12 colleges and universities system in a technical college if (i) 55.13 the service is incidental to the regular nonteaching occupation 55.14 of the person; and (ii) the applicable technical college 55.15 stipulates annually in advance that the part-time teaching 55.16 service or customized training service will not exceed 300 hours 55.17 in a fiscal year and retains the stipulation in its records; and 55.18 (iii) the part-time teaching service or customized training 55.19 service actually does not exceed 300 hours in a fiscal year; or 55.20(5)(4) a person exempt from licensurepursuant tounder 55.21 section 122A.30. 55.22 Sec. 28. Minnesota Statutes 1998, section 354.05, 55.23 subdivision 35, is amended to read: 55.24 Subd. 35. [SALARY.] (a) "Salary" means the periodic 55.25 compensation, upon which member contributions are requiredand55.26made, that is paid to a teacher before employee-paid fringe55.27benefits, tax sheltered annuities, deferred compensation, or any55.28combination of these employee-paid items are deductedbefore 55.29 deductions for deferred compensation, supplemental retirement 55.30 plans, or other voluntary salary reduction programs. 55.31 (b) "Salary" does not mean: 55.32 (1) lump sum annual leave payments; 55.33 (2) lump sum wellness and sick leave payments; 55.34 (3)payments in lieu of any employer-paid group insurance55.35coverage;55.36(4) payments for the difference between single and family56.1premium rates that may be paid to a member with single coverage;56.2(5) employer-paid fringe benefits including, but not56.3limited to, flexible spending accounts, cafeteria plans, health56.4care expense accounts, day care expenses, or automobile56.5allowances and expenses;employer-paid amounts used by an 56.6 employee toward the cost of insurance coverage, employer-paid 56.7 fringe benefits, flexible spending accounts, cafeteria plans, 56.8 health care expense accounts, day care expenses, or any payments 56.9 in lieu of any employer-paid group insurance coverage, including 56.10 the difference between single and family rates that may be paid 56.11 to a member with single coverage and certain amounts determined 56.12 by the executive director to be ineligible; 56.13(6)(4) any form of payment made in lieu of any other 56.14 employer-paid fringe benefit or expense; 56.15(7)(5) any form of severance payments; 56.16(8)(6) workers' compensation payments; 56.17(9)(7) disability insurance payments including 56.18 self-insured disability payments; 56.19(10)(8) payments to school principals and all other 56.20 administrators for services in addition to the normal work year 56.21 contract if these additional services are performed on an 56.22 extended duty day, Saturday, Sunday, holiday, annual leave day, 56.23 sick leave day, or any other nonduty day; 56.24(11)(9) payments under section 356.24, subdivision 1, 56.25 clause (4); and 56.26(12)(10) payments made under section 122A.40, subdivision 56.27 12, except for payments for sick leave accumulated under the 56.28 provisions of a uniform school district policy that applies 56.29 equally to all similarly situated persons in the district. 56.30 Sec. 29. Minnesota Statutes 1998, section 354.091, is 56.31 amended to read: 56.32 354.091 [SERVICE CREDIT.] 56.33 (a) In computingthe time of service of a teacher, the56.34length of a legal school year in the district or institution56.35where such service was rendered must constitute a year under56.36sections 354.05 to 354.10, provided the year is not less than57.1the legal minimum school year of this state.service credit, 57.2 nopersonteacher shall receive credit for more than one year of 57.3 teaching service for any fiscal year. Commencing July 1, 1961,: 57.4 (1) if a teacher teachesonly a fractional part of a day,57.5credit must be given for a day of teaching service for eachless 57.6 than five hourstaught, andin a day, service must be given for 57.7 the fractional part of the day as the term of service performed 57.8 bears to five hours; 57.9 (2) if a teacher teaches five or more hours in a day, 57.10 service credit must be given for only one day; 57.11 (3) if a teacher teaches at least 170 full days in any 57.12 fiscal year, credit must be given for a full year of teaching 57.13 service,; and 57.14(3)(4) if a teacher teaches for only a fractional part of 57.15 the year, credit must be given for such fractional part of the 57.16 year as the term of servicerenderedperformed bears to 170 days. 57.17 (b) Aperson who teaches in the state colleges and57.18university systemteacher shall receive a full year of service 57.19 credit based on the number of days in thesystem'semployer's 57.20 full school year if it is less than 170 days. Teaching service 57.21 performedprior tobefore July 1, 1961, must be computed under 57.22 the law in effect at the time it wasrenderedperformed. 57.23 (c) A teachershalldoes not lose or gain retirement 57.24 service credit as a result of the employer converting to 57.25 afour-day work weekflexible or alternate work schedule. If 57.26 the employerdoes convertconverts to afour-day work week57.27 flexible or alternate work schedule, the forms for reporting and 57.28 procedures for determining service creditshallmust be 57.29 determined by the executive director with the approval of the 57.30 board of trustees. 57.31 Sec. 30. Minnesota Statutes 1998, section 354.092, 57.32 subdivision 2, is amended to read: 57.33 Subd. 2. [PAY RATE; CERTIFICATION.] A sabbatical leave 57.34 must be compensated by a minimum of one-third of the salary the 57.35 member received for a comparable period during the prior fiscal 57.36 year.Before the end of the fiscal year during which any58.1sabbatical leave is grantedUpon granting a sabbatical leave, 58.2 the employing unit granting the leave must certify the leave to 58.3 the association on a form specified by the executive director. 58.4 Sec. 31. Minnesota Statutes 1998, section 354.093, is 58.5 amended to read: 58.6 354.093 [PARENTALOR MATERNITYLEAVE.] 58.7Before the end of the fiscal year during which any parental58.8or maternity leave is grantedUpon granting a parental leave for 58.9 the birth or adoption of a child, the employing unit granting 58.10 the leave must certify the leave to the association on a form 58.11 specified by the executive director. A member of the 58.12 association granted parentalor maternityleave of absence by 58.13 the employing unit is entitled to service credit not to exceed 58.14 one year for the period of leave upon payment to the association 58.15 by the end of the fiscal year following the fiscal year in which 58.16 the leave of absence terminated. This payment mustinclude58.17 equal the total required employee,and employer contributions, 58.18 and amortization contributions, if any, for the period of leave 58.19 prescribed in section 354.42. The payment must be based on the 58.20 member's average full-time monthly salary rate on the date the 58.21 leave of absence commenced, and must be without interest. 58.22 Notwithstanding the provisions of any agreements to the 58.23 contrary,employee and employerthe contributions specified in 58.24 this section may not be made to receive allowable service credit 58.25 under this section if the member does not retain the right to 58.26 full reinstatement at the end of the leave. 58.27 Sec. 32. Minnesota Statutes 1998, section 354.094, 58.28 subdivision 1, is amended to read: 58.29 Subdivision 1. [SERVICE CREDIT CONTRIBUTIONS.]Before the58.30end of the fiscal year during whichUpon granting any extended 58.31 leave of absenceis granted pursuant tounder section 122A.46 or 58.32 136F.43, the employing unit granting the leave must certify the 58.33 leave to the association on a form specified by the executive 58.34 director. A member granted an extended leave of absence 58.35pursuant tounder section 122A.46 or 136F.43 may pay employee 58.36 contributions and receive allowable service credit toward 59.1 annuities and other benefits under this chapter, for each year 59.2 of the leave, provided the member and the employing board make 59.3 the required employer contribution in any proportion they may 59.4 agree upon, during the period of the leave.which shallThe 59.5 leave period must not exceed five years. A member may not 59.6 receive more than five years of allowable service credit under 59.7 this section. The employee and employer contributions must be 59.8 based upon the rates of contribution prescribed by section 59.9 354.42 for the salary received during the year immediately 59.10 preceding the extended leave. Payments for the years for which 59.11 a member is receiving service credit while on extended leave 59.12 must be made on or before the later of June 30 of each fiscal 59.13 year for which service credit is received or within 30 days 59.14 after first notification of the amount due, if requested by the 59.15 member, is given by the association. No payment is permitted 59.16 after the following September 30. Payments received after June 59.17 30 must include interest at an annual rate of 8.5 percent from 59.18 June 30 through the end of the month in which payment is 59.19 received. Notwithstanding the provisions of any agreements to 59.20 the contrary, employee and employer contributions may not be 59.21 made to receive allowable service credit if the member does not 59.22 have full reinstatement rights as provided in section 122A.46 or 59.23 136F.43, both during and at the end of the extended leave. 59.24 Sec. 33. Minnesota Statutes 1998, section 354.10, 59.25 subdivision 2, is amended to read: 59.26 Subd. 2. [AUTOMATIC DEPOSITS.] Upon receipt of the 59.27 properly completed forms as provided by the executive director, 59.28 the annuity or benefit amount may be electronically transferred 59.29 or the annuity or benefit check may be mailed toa banking59.30institution, savings association, or credit unionany financial 59.31 institution associated with the National Automated Clearinghouse 59.32 Association or a comparable successor organization for deposit 59.33 to the recipient's individual account or joint account with the 59.34 recipient's spouse or any other person designated by the 59.35 recipient. An overpayment to a joint account after the death of 59.36 the annuity or benefit recipient must be repaid to the fund by 60.1 the joint tenant if the overpayment is not repaid to the fund by 60.2 thebanking institution, savings association, or credit60.3unionfinancial institution associated with the National 60.4 Automated Clearinghouse Association or a successor. The board 60.5 may prescribe the conditions which govern these procedures. 60.6 Sec. 34. Minnesota Statutes 1998, section 354.35, is 60.7 amended to read: 60.8 354.35 [OPTIONAL ACCELERATED RETIREMENT ANNUITY BEFOREAGE60.965NORMAL RETIREMENT AGE.] 60.10 Any coordinated member who retires before normal retirement 60.11 age65may elect to receive an optional accelerated retirement 60.12 annuity from the association which provides for different 60.13 annuity amounts over different periods of retirement.The60.14election of this optional accelerated retirement annuity is60.15exercised by making an application to the board on a form60.16provided by the executive director.The optional accelerated 60.17 retirement annuity must take the form of an annuity payable for 60.18 the period before the member attains normal retirement age65in 60.19 a greater amount than the amount of the annuity calculated under 60.20 section 354.44 on the basis of the age of the member at 60.21 retirement, but the optional accelerated retirement annuity must 60.22 be the actuarial equivalent of the member's annuity computed on 60.23 the basis of the member's age at retirement. The greater amount 60.24 must be paid until the retiree reaches normal retirement age6560.25 and at that time the payment from the association must be 60.26 reduced. For each year the retiree is under normal retirement 60.27 age65, up to five percent of the total life annuity required 60.28 reserves may be used to accelerate the optional retirement 60.29 annuity under this section. At retirement, members who retire 60.30 before age 62 may elect to have the age specified in this 60.31 section be 62 instead of65the normal retirement age.This60.32election is irrevocable and may be made only once on the60.33application form provided by the executive director.The method 60.34 of computing the optional accelerated retirement annuity 60.35 provided in this section is established by the board of 60.36 trustees. In establishing the method of computing the optional 61.1 accelerated retirement annuity, the board of trustees must 61.2 obtain the written approval of the commission-retained actuary. 61.3 The written approval must be a part of the permanent records of 61.4 the board of trustees. The election of an optional accelerated 61.5 retirement annuity is exercised by making an application on a 61.6 form provided by the executive director. 61.7 Sec. 35. Minnesota Statutes 1998, section 354.46, 61.8 subdivision 2a, is amended to read: 61.9 Subd. 2a. [SURVIVOR COVERAGE TERM CERTAIN.] In lieu of the 61.10 100 percent optional annuity under subdivision 2, or a refund 61.11 under section 354.47, subdivision 1, the surviving spouse of a 61.12 deceased member may elect to receive survivor coverage in a term 61.13 certain of five, ten, 15, or 20 years, but monthly payments must 61.14 not exceed 75 percent of the average high-five monthly salary of 61.15 the deceased member. The monthly term certain annuity must be 61.16 actuarially equivalent to the 100 percent optional annuity under 61.17 subdivision 2. 61.18 If a surviving spouse elects a term certain payment and 61.19 dies before the expiration of the specified term certain period, 61.20 the commuted value of the remaining annuity payments must be 61.21 paid in a lump sum to thesurvivor'ssurviving spouse's estate. 61.22 Sec. 36. Minnesota Statutes 1998, section 354.47, 61.23 subdivision 1, is amended to read: 61.24 Subdivision 1. [DEATH BEFORE RETIREMENT.](1)(a) If a 61.25 member dies before retirement and is covered under section 61.26 354.44, subdivision 2, and neither an optional annuity, nor a 61.27 reversionary annuity, nor a benefit under section 354.46, 61.28 subdivision 1, is payable to the survivors if the member was a 61.29 basic member, then the surviving spouse, or if there is no 61.30 surviving spouse, the designated beneficiary is entitled to an 61.31 amount equal to the member's accumulated deductions with 61.32 interest credited to the account of the member to the date of 61.33 death of the member. If the designated beneficiary is a minor, 61.34 interest must be credited to the date the beneficiary reaches 61.35 legal age, or the date of receipt, whichever is earlier. 61.36(2)(b) If a member dies before retirement and is covered 62.1 under section 354.44, subdivision 6, and neither an optional 62.2 annuity, nor reversionary annuity, nor the benefit described in 62.3 section 354.46, subdivision 1, is payable to the survivors if 62.4 the member was a basic member,; then the surviving spouse, or if 62.5 there is no surviving spouse, the designated beneficiary is 62.6 entitled to an amount equal to the member's accumulated 62.7 deductions credited to the account of the member as of June 30, 62.8 1957, and from July 1, 1957, to the date of death of the member, 62.9 the member's accumulated deductions plus six percent interestat62.10the rate of six percent per annumcompounded annually. 62.11 (c) If the designated beneficiary under paragraph (b) is a 62.12 minor, any interest credited under that paragraph must be 62.13 credited to the date the beneficiary reaches legal age, or the 62.14 date of receipt, whichever is earlier. 62.15 Sec. 37. Minnesota Statutes 1998, section 354.48, 62.16 subdivision 6, is amended to read: 62.17 Subd. 6. [REGULAR PHYSICAL EXAMINATIONS.] At least once 62.18 each year during the first five years following the allowance of 62.19 a disability benefit to any member, and at least once in every 62.20 three-year period thereafter, the executive director shall 62.21 require the disability beneficiary to undergo a medical 62.22 examinationto be made at the place of residence of such person,62.23or at any other place mutually agreed upon,by a physician or 62.24 physicians engaged by the executive director. If any 62.25 examination indicates that the member is no longer permanently 62.26 and totally disabled or that the member is engaged or is able to 62.27 engage in a substantial gainful occupation, payments of the 62.28 disability benefit by the association shall be discontinued. 62.29 The payments shall discontinue as soon as the member is 62.30 reinstated to the payroll following sick leave, but payment may 62.31 not be made for more than 60 days after physicians engaged by 62.32 the executive director find that the person is no longer 62.33 permanently and totally disabled. 62.34 Sec. 38. Minnesota Statutes 1998, section 354.49, 62.35 subdivision 1, is amended to read: 62.36 Subdivision 1. [ENTITLEMENT, APPLICATION.] A person who 63.1 ceases to render teaching service in any school or institution 63.2 to which the provisions of this chapter apply is entitled to a 63.3 refund provided in subdivision 2, or a deferred retirement 63.4 annuity under section 354.55, subdivision 11. An application 63.5 for a refund must not be made sooner than 30 days after 63.6 termination of teaching service if the applicant has not again 63.7 become a teacher. This payment must be made within9045 days 63.8 after receipt of application for refund or uponcompletion of63.9processing the report made pursuant to section 354.52,63.10subdivision 2receipt of member reporting data under section 63.11 354.52, subdivision 4a, and payroll cycle data under section 63.12 354.52, subdivision 4b, whichever is later. 63.13 Sec. 39. Minnesota Statutes 1998, section 354.52, 63.14 subdivision 3, is amended to read: 63.15 Subd. 3. [DUTY OF FINANCE OFFICIALSDEDUCTION 63.16 REQUIREMENTS.]It is the duty of each person, officer, school63.17board, or managing body required by law to draw the warrants or63.18orders for payment of salaries to teachers toEvery pay period 63.19 each employer shall deduct and withhold fromallthe salarypaid63.20each pay period toof every teacher who is a member of the fund 63.21 the amountwhich the teacher is required to pay into the fund63.22and,required under section 354.42. At the time of each 63.23 deduction,tothe employer shall also furnish to each teacher a 63.24 statement showing the amount of the deduction. 63.25 Sec. 40. Minnesota Statutes 1998, section 354.52, 63.26 subdivision 4, is amended to read: 63.27 Subd. 4. [REPORTING AND REMITTANCE REQUIREMENTS.]At least63.28once each month, a representative authorized byAnemploying63.29unitemployer shalltransmitremit all amounts due to the 63.30 association and furnish asignedstatement indicating the amount 63.31 due and transmitted with any other information required by the 63.32 executive director.Signing the statement has the force and63.33effect of an oath as to the correctness of the amount due and63.34transmitted.If an amount dueandis nottransmitted63.35 remitted to the association within seven calendar days of the 63.36 payroll warrant, the amount accrues interest at an annual rate 64.1 of 8.5 percent compounded annuallycommencing 15 days afterfrom 64.2 the due datefirst dueuntil the amount istransmitted and must64.3be paid by the employing unit. These paymentsreceived by the 64.4 association. All amounts due and otheremploying unitemployer 64.5 obligations not remitted within 60 days of notification by the 64.6 association must be certified to the commissioner of finance who 64.7 shall deduct the amount from any state aid or appropriation 64.8 amount applicable to the employing unit. 64.9 Sec. 41. Minnesota Statutes 1998, section 354.52, 64.10 subdivision 4a, is amended to read: 64.11 Subd. 4a. [MEMBER DATA REPORTING REQUIREMENTS.] (a) An 64.12 employing unitshallmust initially provide thefollowingmember 64.13 data specified in paragraph (b) or any of that data not 64.14 previously provided to the association for payroll warrants 64.15 dated after June 30, 1995, in a format prescribed by the 64.16 executive director. Data changes and the dates of those changes 64.17 under this subdivision must be reported to the association on an 64.18 ongoing basisforwithin 14 calendar days after the date of the 64.19 end of the payroll cycle in which they occur. These data 64.20 changes should be reported with the payroll cycle data under 64.21 subdivision 4b. 64.22 (b) Data on the member includes: 64.23 (1) legal name, address, date of birth, association member 64.24 number, employer-assigned employee number, and social security 64.25 number; 64.26 (2) association status, including, but not limited to, 64.27 basic, coordinated, exempt annuitant, exempt technical college 64.28 teacher, and exempt independent contractor or consultant; 64.29 (3) employment status, including, but not limited to, full 64.30 time, part time, intermittent, substitute, or part-time 64.31 mobility; 64.32 (4) employment position, including, but not limited to, 64.33 teacher, superintendent, principal, administrator, or other; 64.34 (5) employment activity, including, but not limited to, 64.35 hire, termination, resumption of employment, disability, or 64.36 death; 65.1 (6) leaves of absence; 65.2 (7) county district number assigned by the association for 65.3 the employing unit; 65.4 (8) data center identification number, if applicable; and 65.5 (9) other information as may be required by the executive 65.6 director. 65.7 Sec. 42. Minnesota Statutes 1998, section 354.52, 65.8 subdivision 4b, is amended to read: 65.9 Subd. 4b. [PAYROLL CYCLE REPORTING REQUIREMENTS.] An 65.10 employing unit shall provide the following data to the 65.11 association for payroll warrantsdated after June 30, 1995, for65.12eachon an ongoing basis within 14 calendar days after the date 65.13 of the payrollcyclewarrant in a format prescribed by the 65.14 executive director: 65.15 (1) association member number; 65.16 (2) employer-assigned employee number; 65.17 (3) social security number; 65.18 (4) amount of each salary deduction; 65.19 (5) amount of salary as defined in section 354.05, 65.20 subdivision 35, from which each deduction was made; 65.21 (6) reason for payment; 65.22 (7) service credit; 65.23 (8) the beginning and ending dates of the payroll period 65.24 covered and the date of actual payment; 65.25 (9) fiscal year of salary earnings; 65.26 (10) total remittance amount including employee, employer, 65.27 and additional employer contributions; and 65.28 (11) other information as may be required by the executive 65.29 director. 65.30 Sec. 43. Minnesota Statutes 1998, section 354.63, 65.31 subdivision 2, is amended to read: 65.32 Subd. 2. [VALUATION OF ASSETS; ADJUSTMENT OF BENEFITS.] 65.33 (1) The required reserves for retirement annuitiesasdetermined 65.34in accordance withunder this chaptershallmust be transferred 65.35 to the Minnesota postretirement investment fundas ofno later 65.36 than the last business day of the month in which the retirement 66.1 annuity begins. The required reserves shall be determined in 66.2 accordance with the appropriate annuity table of mortality 66.3 adopted by the board of trustees as provided in section 354.07, 66.4 subdivision 1, based on the experience of the fund as 66.5 recommended by the commission-retained actuary and using the 66.6 interest assumption specified in section 356.215, subdivision 4d. 66.7 (2) Annuity payments shall be adjusted as provided in 66.8accordance with the provisions ofsection 11A.18. In making 66.9 these adjustments, members who retire effective July 1 shall be 66.10 considered to have retired effective the preceding June 66.11 30.This section applies to persons who retired effective July66.121, 1982, or later.66.13 (3) An increase in annuity paymentspursuant tounder this 66.14 section will be made automatically unless written notice is 66.15 filed by the annuitant with the executive director of the 66.16 teachers retirement association requesting that the increase 66.17shallnot be made. 66.18 Sec. 44. Minnesota Statutes 1998, section 356.30, 66.19 subdivision 1, is amended to read: 66.20 Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] 66.21(1)(a) Notwithstanding any provisionsto the contraryof the 66.22 laws governing thefundsplans enumerated in subdivision 3, a 66.23 person who has met the qualifications ofclause (2)paragraph 66.24 (b) may elect to receive a retirement annuity from eachfund66.25 plan in which the person has at leastsix monthsone-half year 66.26 of allowable service, based on the allowable service in 66.27 eachfundplan, subject to the provisions ofclause66.28(3)paragraph (c). 66.29(2)(b) A person may receive upon retirement a retirement 66.30 annuity from eachfundplan in which the person has at leastsix66.31monthsone-half year of allowable service, and augmentation of a 66.32 deferred annuity calculated under the laws governing each public 66.33 pension plan or fund named in subdivision 3, from the date the 66.34 person terminated all public service if: 66.35(a)(1) the person has allowable service totaling an amount 66.36 that allows the person to receive an annuity in any two or more 67.1 of the enumeratedfundsplans; and 67.2(b)(2) the person has not begun to receive an annuity from 67.3 any enumeratedfundplan or the person has made application for 67.4 benefits fromall fundseach applicable plan and the effective 67.5 dates of the retirement annuity with eachfundplan under which 67.6 the person chooses to receive an annuity are within a one-year 67.7 period. 67.8(3)(c) The retirement annuity from eachfundplan must be 67.9 based upon the allowable service, accrual rates, and average 67.10 salary ineach fund, except thatthe applicable plan as further 67.11 specified or modified in the following clauses: 67.12(a)(1) the laws governing annuities must be the law in 67.13 effect on the date of termination from the last period of public 67.14 service under a coveredfundplan with which the person earned a 67.15 minimum of one-half year of allowable service credit during that 67.16 employment.; 67.17(b)(2) the "average salary" on which the annuity from each 67.18 coveredfundplan in which the employee has credit in a formula 67.19 plan shall be based on the employee's highest five successive 67.20 years of covered salary during the entire service in 67.21 coveredfunds.plans; 67.22(c) The formula percentages(3) accrual rates to be used by 67.23 eachfundplan must be those percentages prescribed by 67.24 eachfund'splan's formula as continued for the respective years 67.25 of allowable service from onefundplan to the next, recognizing 67.26 all previous allowable service with the other 67.27 coveredfunds.plans; 67.28(d)(4) allowable service in all thefundsplans must be 67.29 combined in determining eligibility for and the application of 67.30 eachfund'splan's provisions in respect toactuarialreduction 67.31 in the annuity amount for retirement prior to normal retirement.67.32 age; and 67.33(e)(5) the annuity amount payable for any allowable 67.34 service under a nonformula plan of a covered fund must not be 67.35 affected but such service and covered salary must be used in the 67.36 above calculation. 68.1(f)(d) This sectionshalldoes not apply to any person 68.2 whose final termination from the last public service under a 68.3 covered fund is prior to May 1, 1975. 68.4(g)(e) For the purpose of computing annuities under this 68.5 section theformula percentagesaccrual rates used by any 68.6 coveredfundplan, except the public employees police and 68.7 firefundplan and the state patrol retirementfundplan, must 68.8 not exceed the percent specified in section 356.19, subdivision 68.9 4, per year of service for any year of service or fraction 68.10 thereof. Theformula percentageaccrual rate used by the public 68.11 employees police and firefundplan and the state patrol 68.12 retirementfundplan must not exceed the percent specified in 68.13 section 356.19, subdivision 6, per year of service for any year 68.14 of service or fraction thereof. Theformula percentageaccrual 68.15 rate or rates used by the legislators retirement plan and the 68.16 elective state officers retirement plan must not exceed 2.5 68.17 percent, but this limit does not apply to the adjustment 68.18 provided under section 3A.02, subdivision 1, paragraph (c), or 68.19 352C.031, paragraph (b). 68.20(h)(f) Any period of time for which a person has credit in 68.21 more than one of the covered funds must be used only once for 68.22 the purpose of determining total allowable service. 68.23(i)(g) If the period of duplicated service credit is more 68.24 thansix monthsone-half year, or the person has credit for more 68.25 thansix monthsone-half year, with each of thefundsplans, 68.26 eachfund shallplan must apply its formula to a prorated 68.27 service credit for the period of duplicated service based on a 68.28 fraction of the salary on which deductions were paid to that 68.29 fund for the period divided by the total salary on which 68.30 deductions were paid to all funds for the period. 68.31(j)(h) If the period of duplicated service credit is less 68.32 thansix monthsone-half year, or when added to other service 68.33 credit with that fund is less thansix monthsone-half year, the 68.34 service credit must be ignored and a refund of contributions 68.35 made to the person in accord with that fund's refund provisions. 68.36 Sec. 45. [356.90] [COMBINED PAYMENT.] 69.1 (a) The public employees retirement association and the 69.2 Minnesota state retirement system are permitted to combine 69.3 payments to retirees and the total payment must be equal to what 69.4 is payable if payments are kept separate. The retiree must 69.5 agree, in writing, to have the payment combined. 69.6 (b) Each fund will calculate benefits under the laws 69.7 governing the plan and the required reserves and future 69.8 mortality losses or gains will be paid or accrued to the fund 69.9 from which the service was earned. Each fund must account for 69.10 their portion of the payment separately, and there may be no 69.11 additional liabilities realized by either fund. 69.12 (c) The fund making payment would be responsible for 69.13 issuing one payment, making address changes, tax withholding 69.14 changes, and other administrative functions needed to process 69.15 the payment. 69.16 Sec. 46. [INSTRUCTION TO REVISOR.] 69.17 The revisor of statutes shall change the term "six months" 69.18 to "one-half year" wherever it appears in Minnesota Statutes, 69.19 sections 356.302 and 356.303. 69.20 Sec. 47. [REPEALER.] 69.21 Minnesota Statutes 1998, sections 353.024; and 354.52, 69.22 subdivision 2, are repealed. 69.23 Sec. 48. [EFFECTIVE DATE.] 69.24 (a) Sections 1 to 47 are effective on July 1, 2000. 69.25 (b) Section 26 is not intended to increase or decrease any 69.26 surviving spouse benefit compared to the surviving spouse 69.27 benefit payable immediately prior to July 1, 2000. 69.28 ARTICLE 4 69.29 MILITARY SERVICE CREDIT 69.30 PURCHASE AUTHORIZATION 69.31 Section 1. [352.275] [UNCREDITED MILITARY SERVICE CREDIT 69.32 PURCHASE.] 69.33 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A 69.34 state employee who has at least three years of allowable service 69.35 with the Minnesota state retirement system and who performed 69.36 service in the United States armed forces before becoming a 70.1 state employee, or who failed to obtain service credit for a 70.2 military leave of absence under section 352.27, is entitled to 70.3 purchase allowable service credit for the initial period of 70.4 enlistment, induction, or call to active duty without any 70.5 voluntary extension by making payment under section 356.55 70.6 provided the employee is not entitled to receive a current or 70.7 deferred retirement annuity from a United States armed forces 70.8 pension plan and has not purchased service credit from any other 70.9 defined benefit public employee pension plan for the same period 70.10 of service. 70.11 Subd. 2. [APPLICATION AND DOCUMENTATION.] An employee who 70.12 desires to purchase service credit under subdivision 1 must 70.13 apply with the executive director to make the purchase. The 70.14 application must include all necessary documentation of the 70.15 employee's qualifications to make the purchase, signed written 70.16 permission to allow the executive director to request and 70.17 receive necessary verification of applicable facts and 70.18 eligibility requirements, and any other relevant information 70.19 that the executive director may require. 70.20 Subd. 3. [SERVICE CREDIT GRANT.] Allowable service credit 70.21 for the purchase period must be granted by the Minnesota state 70.22 retirement system to the purchasing employee upon receipt of the 70.23 purchase payment amount. Payment must be made before the 70.24 employee's effective date of retirement. 70.25 Sec. 2. Minnesota Statutes 1998, section 352B.01, is 70.26 amended by adding a subdivision to read: 70.27 Subd. 3a. [UNCREDITED MILITARY SERVICE CREDIT 70.28 PURCHASE] (a) A member who has at least three years of allowable 70.29 service with the state patrol retirement plan under subdivision 70.30 3 and who performed service in the United States armed forces 70.31 before becoming a member is entitled to purchase allowable 70.32 service credit for the initial period of enlistment, induction, 70.33 or call to active duty without any voluntary extension by making 70.34 payment under section 356.55 provided the employee is not 70.35 entitled to receive a current or deferred retirement annuity 70.36 from a United States armed forces pension plan and has not 71.1 purchased service credit from any other defined benefit public 71.2 employee pension plan for the same period of service. 71.3 (b) A member who desires to purchase service credit under 71.4 paragraph (a) must apply with the executive director to make the 71.5 purchase. The application must include all necessary 71.6 documentation of the member's qualifications to make the 71.7 purchase, signed written permission to allow the executive 71.8 director to request and receive necessary verification of 71.9 applicable facts and eligibility requirements, and any other 71.10 relevant information that the executive director may require. 71.11 (c) Allowable service credit for the purchase period must 71.12 be granted by the state patrol retirement plan to the purchasing 71.13 employee upon receipt of the purchase payment amount. Payment 71.14 must be made before the effective date of retirement of the 71.15 member. 71.16 Sec. 3. Minnesota Statutes 1998, section 353.01, is 71.17 amended by adding a subdivision to read: 71.18 Subd. 16a. [UNCREDITED MILITARY SERVICE CREDIT PURCHASE.] 71.19 (a) A public employee who has at least three years of allowable 71.20 service with the public employees retirement association or the 71.21 public employees police and fire plan and who performed service 71.22 in the United States armed forces before becoming a public 71.23 employee, or who failed to obtain service credit for a military 71.24 leave of absence under subdivision 16, paragraph (h), is 71.25 entitled to purchase allowable service credit for the initial 71.26 period of enlistment, induction, or call to active duty without 71.27 any voluntary extension by making payment under section 356.55 71.28 provided the public employee is not entitled to receive a 71.29 current or deferred retirement annuity from a United States 71.30 armed forces pension plan and has not purchased service credit 71.31 from any other defined benefit public employee pension plan for 71.32 the same period of service. 71.33 (b) A public employee who desires to purchase service 71.34 credit under paragraph (a) must apply with the executive 71.35 director to make the purchase. The application must include all 71.36 necessary documentation of the public employee's qualifications 72.1 to make the purchase, signed written permission to allow the 72.2 executive director to request and receive necessary verification 72.3 of applicable facts and eligibility requirements, and any other 72.4 relevant information that the executive director may require. 72.5 (c) Allowable service credit for the purchase period must 72.6 be granted by the public employees association or the public 72.7 employees police and fire plan, whichever applies, to the 72.8 purchasing public employee upon receipt of the purchase payment 72.9 amount. Payment must be made before the effective date of 72.10 retirement of the public employee. 72.11 Sec. 4. [EFFECTIVE DATE; SUNSET REPEALER.] 72.12 (a) Sections 1, 2, and 3 are effective on the day following 72.13 final enactment. 72.14 (b) Sections 1, 2, and 3 are repealed on May 16, 2003. 72.15 ARTICLE 5 72.16 RETIREMENT HEALTH CARE PROVISIONS 72.17 Section 1. [352G.01] [DEFINITIONS.] 72.18 Subdivision 1. [TERMS.] Unless the language or context 72.19 clearly indicates that a different meaning is intended, the 72.20 terms defined in this section, for the purposes of this chapter, 72.21 have the meanings given them. 72.22 Subd. 2. [INCLUDED PARTICIPANTS.] "Included participants" 72.23 means persons contributing to a retirement plan under chapter 72.24 3A, 352, 352B, 352D, or 490, or an employee of the Minnesota 72.25 historical society, the Minnesota humanities commission, or the 72.26 board of the arts contributing to a retirement plan under 72.27 chapter 354B, on or after July 1, 2000. 72.28 Subd. 3. [ELIGIBLE RETIRED EMPLOYEE.] "Eligible retired 72.29 employee" means a former employee who is drawing monthly 72.30 retirement benefits under chapter 3A, 352, 352B, 352D, or 490, 72.31 or an employee of the Minnesota historical society, the 72.32 Minnesota humanities commission, or the board of the arts 72.33 contributing to a retirement plan under chapter 354B, and who 72.34 has at least 15 years of allowable service and was eligible to 72.35 draw retirement benefits at the time of separation from state 72.36 service. 73.1 Subd. 4. [DISABLED EMPLOYEE.] "Disabled employee" means an 73.2 employee who has been determined disabled under chapter 3A, 352, 73.3 352B, 352D, 354B, or 490. 73.4 Subd. 5. [INELIGIBLE TERMINATED EMPLOYEE.] "Ineligible 73.5 terminated employee" means a former state employee who is not 73.6 eligible for benefits from the health care reimbursement plan. 73.7 Subd. 6. [ACCUMULATED CONTRIBUTIONS.] "Accumulated 73.8 contributions" means the total deductions made from the salary 73.9 of an employee into the health care reimbursement plan. 73.10 Subd. 7. [HEALTH CARE REIMBURSEMENT FUND.] The "health 73.11 care reimbursement fund" includes the total accumulated 73.12 contributions and employer contributions made by or on behalf of 73.13 all included participants and any investment return attributable 73.14 to the contributions. 73.15 Subd. 8. [ALLOWABLE SERVICE.] "Allowable service" means 73.16 allowable service under chapter 3A, 352, 352B, 352D, or 490 73.17 except any allowable service reinstated by repaying a refund on 73.18 or after July 1, 2000. For an employee of the Minnesota 73.19 historical society, the Minnesota humanities commission, or the 73.20 board of the arts contributing to a retirement plan under 73.21 chapter 354B, "allowable service" means service after the 73.22 effective date of this section. 73.23 Subd. 9. [SALARY.] "Salary" means wages, or other periodic 73.24 compensation paid to an employee before deductions for deferred 73.25 compensation, supplemental retirement plans, or other voluntary 73.26 salary reduction programs. Lump sum sick leave payments, 73.27 severance payments, lump sum annual leave payments and overtime 73.28 payments made at the time of separation from state service, 73.29 payments in lieu of any employee-paid group insurance coverage, 73.30 including the difference between single and family rates that 73.31 may be paid to an employee with single coverage, and payments 73.32 made as an employer-paid fringe benefit, workers' compensation 73.33 payments, employer contributions to a deferred compensation or 73.34 tax sheltered annuity program, and amounts contributed under a 73.35 benevolent vacation and sick leave donation program are not 73.36 salary. 74.1 Subd. 10. [DESIGNATED BENEFICIARY.] "Designated 74.2 beneficiary" means the designated beneficiary established by the 74.3 included participants or eligible retired employees under the 74.4 retirement plan under chapter 3A, 352, 352B, 352D, or 490. 74.5 Subd. 11. [EXECUTIVE DIRECTOR.] "Executive director" means 74.6 the executive director of the Minnesota state retirement system 74.7 under section 352.03, subdivision 5. 74.8 Subd. 12. [BOARD.] "Board" means the board of directors of 74.9 the Minnesota state retirement system established under section 74.10 352.03. 74.11 Subd. 13. [EMPLOYEE.] "Employee" means a person 74.12 contributing to a retirement plan under chapter 3A, 352, 352B, 74.13 352D, 354B, or 490. 74.14 Sec. 2. [352G.02] [HEALTH CARE REIMBURSEMENT PLAN.] 74.15 Subdivision 1. [ESTABLISHMENT.] There is established the 74.16 health care reimbursement plan for state employees covered under 74.17 chapter 3A, 352, 352B, 352D, or 490. This plan must meet 74.18 qualification requirements under the Internal Revenue Code, 74.19 section 401(h), to ensure that both contributions and benefit 74.20 payments are tax free. 74.21 Subd. 2. [STATE EMPLOYEES COVERED.] Every state employee 74.22 contributing to a plan under chapter 3A, 352, 352B, 352D, or 74.23 490, or an employee of the Minnesota historical society, the 74.24 Minnesota humanities commission, or the board of the arts 74.25 contributing to a retirement plan under chapter 354B, on or 74.26 after July 1, 2000, is covered by the health care reimbursement 74.27 plan. Acceptance of state employment or continuance in state 74.28 service in which contributions are made under chapter 3A, 352, 74.29 352B, 352D, 354B, or 490 is deemed consent to have deductions 74.30 made from salary for deposit to the credit of the account of the 74.31 state employee in the health care reimbursement plan. 74.32 Sec. 3. [352G.03] [COVERAGE TERMINATION.] 74.33 Coverage of any person under the health care reimbursement 74.34 plan ends when the person ceases to be a state employee or is no 74.35 longer covered by a pension plan under chapter 3A, 352, 352B, 74.36 352D, or 490. 75.1 Sec. 4. [352G.04] [APPEALS PROCEDURE.] 75.2 If someone wishes to appeal a decision made by the 75.3 executive director, the appeal procedure established under 75.4 section 352.031 must be followed. 75.5 Sec. 5. [352G.05] [STATE EMPLOYEES HEALTH CARE 75.6 REIMBURSEMENT FUND, CONTRIBUTIONS BY EMPLOYEE AND EMPLOYER.] 75.7 Subdivision 1. [FUND CREATED.] There is created a special 75.8 fund to be known as the state employees health care 75.9 reimbursement fund. Employee contributions, employer 75.10 contributions, investment returns, and any other amounts 75.11 authorized by law shall be deposited in this account. 75.12 Subd. 2. [EMPLOYEE CONTRIBUTIONS.] The employee 75.13 contribution to the fund must be equal to .5 percent of salary. 75.14 These contributions must be made by deduction from salary as 75.15 provided in section 352.04, subdivision 4. 75.16 Subd. 3. [EMPLOYER CONTRIBUTIONS.] The employer 75.17 contribution to the fund must be equal to .5 percent of salary. 75.18 These contributions shall be made under section 352.04, 75.19 subdivisions 5 and 6. 75.20 Subd. 4. [OMITTED SALARY DEDUCTIONS.] If a department 75.21 fails to take deductions from an employee's salary as provided 75.22 in this section, the collection of omitted deduction must be 75.23 made in accordance with section 352.04, subdivision 8, 75.24 paragraphs (a), (b), and (c). 75.25 Subd. 5. [ERRONEOUS DEDUCTIONS; CANCELED 75.26 WARRANTS.] Deductions taken from the salary of an employee for 75.27 the health care reimbursement fund in error must, upon discovery 75.28 and verification by the department making the deduction, be 75.29 refunded to the employee in accordance with section 352.04, 75.30 subdivision 9. 75.31 Subd. 6. [FUND DISBURSEMENT RESTRICTED.] The health care 75.32 reimbursement fund must be disbursed only for the purposes 75.33 provided by law. The expenses of the health care reimbursement 75.34 plan and any benefits provided by law must be paid from the 75.35 health care reimbursement fund. Refunds under section 352G.10, 75.36 subdivisions 1 and 2, must be paid from the contributions prior 76.1 to being invested in the health care reimbursement fund. 76.2 Sec. 6. [352G.06] [STATE TREASURER TO BE TREASURER OF THE 76.3 HEALTH CARE REIMBURSEMENT FUND.] 76.4 The state treasurer and the treasurer's successor is ex 76.5 officio treasurer of the health care reimbursement fund. The 76.6 general bond to the state shall cover all liability for actions 76.7 as treasurer of these funds. Funds of the system received by 76.8 the treasurer must be set aside in the state treasury and 76.9 credited to the health care reimbursement fund. The treasurer 76.10 and the treasurer's successor shall deliver to the executive 76.11 director copies of all payroll abstracts of the state together 76.12 with the commissioner of finance's warrants covering the 76.13 deductions made on these payroll abstracts for the health care 76.14 reimbursement fund. The executive director shall have a list 76.15 made of the commissioner of finance's warrants. These warrants 76.16 must then be deposited with the state's treasurer or the 76.17 treasurer's successor to be credited to the health care 76.18 reimbursement fund. The treasurer shall pay out of this fund 76.19 only on warrants issued by the commissioner of finance, upon 76.20 abstracts signed by the director, or by the finance officer 76.21 designated by the director during the disability or the absence 76.22 of the director. Abstracts for investments may be signed by the 76.23 executive director of the state board of investment. 76.24 Sec. 7. [352G.07] [INVESTMENT BOARD TO INVEST FUNDS.] 76.25 The director shall, from time to time, certify to the state 76.26 board of investment any portions of the health care 76.27 reimbursement fund that in the judgment of the director are not 76.28 required for immediate use. The state board of investment shall 76.29 invest and reinvest sums so transferred, or certified, in 76.30 securities that are duly authorized legal investments under 76.31 section 11A.24. Amounts invested in the health care 76.32 reimbursement fund must be accounted for separately from the 76.33 retirement funds invested by the investment board. 76.34 Sec. 8. [352G.08] [HEALTH CARE REIMBURSEMENT PLAN 76.35 BENEFITS.] 76.36 Subdivision 1. [AGE AND SERVICE REQUIREMENTS.] After 77.1 separation from state service, an employee who has attained the 77.2 age of at least 60, who has at least 15 years of allowable 77.3 service, and is immediately eligible for retirement or 77.4 disability benefits or an employee who qualifies for the rule of 77.5 90 regardless of age is entitled upon application to benefits 77.6 from the health care reimbursement plan as long as the employee 77.7 has not accepted a refund under section 352G.10, subdivisions 1 77.8 and 2, or has repaid all refunds to the health care 77.9 reimbursement plan under section 352G.10, subdivision 4. 77.10 Benefits are not payable to an eligible disabled employee who is 77.11 no longer collecting disability or retirement benefits. 77.12 Subd. 2. [BENEFIT SCHEDULE.] Those meeting the eligibility 77.13 requirements in subdivision 1 will be entitled to the following 77.14 monthly benefits: 77.15 Retirement Date Monthly Benefits 77.16 July 1, 2000 - June 30, 2002 $55 77.17 July 1, 2002 - June 30, 2003 $64 77.18 July 1, 2003 - June 30, 2004 $73 77.19 July 1, 2004 - June 30, 2005 $82 77.20 July 1, 2005 - June 30, 2006 $92 77.21 July 1, 2006 - June 30, 2007 $102 77.22 July 1, 2007 - June 30, 2008 $113 77.23 July 1, 2008 - June 30, 2009 $123 77.24 July 1, 2009 - June 30, 2010 $134 77.25 July 1, 2010 - June 30, 2011 $146 77.26 July 1, 2011 - and after $158 77.27 Subd. 3. [PAYMENTS.] The first monthly payment will begin 77.28 on July 1, 2002, and will be based on the schedule above. No 77.29 monthly payments will be made prior to July 1, 2002. Payments 77.30 will be paid directly to the eligible retired employee, but only 77.31 upon providing documentation that the money is used to offset 77.32 health insurance premiums or any other health expenses to meet 77.33 the requirements under the Internal Revenue Code, section 401(h). 77.34 At the discretion of the executive director, payments may be 77.35 added to the monthly retirement checks received by the eligible 77.36 retired employee. 78.1 Subd. 4. [TERMINATION OF BENEFITS.] Monthly benefits will 78.2 terminate upon the death of the member, and will not continue to 78.3 a survivor or designated beneficiary. 78.4 Sec. 9. [352G.09] [ANNUAL INCREASES, CALCULATION OF HEALTH 78.5 INSURANCE PLAN INFLATION ADJUSTMENT.] 78.6 (a) Annually, following June 30, the Minnesota state 78.7 retirement system shall use the procedures in paragraph (b) to 78.8 determine whether an inflation adjustment is payable and to 78.9 determine the amount of the adjustment. 78.10 (b) If the medical inflation index increases from June 30 78.11 of the preceding year to June 30 of the current year, the 78.12 Minnesota state retirement system shall certify the percentage 78.13 increase. The amount certified is the lesser of the medical 78.14 inflation index or five percent. The board, at its discretion, 78.15 can decrease the adjustment in any year in order to maintain the 78.16 financial integrity of the health insurance plan which includes 78.17 avoiding projected unfunded liability. The board will seek 78.18 advice from an approved actuary in determining if the inflation 78.19 adjustment should be lowered. 78.20 (c) If an increase is payable, it will be made the 78.21 following January 1. An eligible retired employee who has been 78.22 receiving health insurance reimbursement benefits for at least 78.23 12 months as of the current June 30 is eligible to receive a 78.24 full insurance plan inflation adjustment. An eligible retired 78.25 employee who has been receiving a health insurance benefit for 78.26 at least one full month, but less than 12 full months as of the 78.27 current June 30 is eligible to receive a partial inflation 78.28 adjustment as follows: 78.29 Month Retired Fraction of the Increase 78.30 July 11/12 78.31 August 10/12 78.32 September 9/12 78.33 October 8/12 78.34 November 7/12 78.35 December 6/12 78.36 January 5/12 79.1 February 4/12 79.2 March 3/12 79.3 April 2/12 79.4 May 1/12 79.5 Sec. 10. [352G.10] [REFUND OF EMPLOYEE CONTRIBUTIONS.] 79.6 Subdivision 1. [REFUND.] An ineligible terminated 79.7 employee, an eligible retired employee who has not yet begun 79.8 collecting benefits, an employee who moves to a state position 79.9 no longer covered by chapter 3A, 352, 352B, 352D, or 490, or an 79.10 employee covered by chapter 354B who moves to a state position 79.11 with an employer not listed in section 352G.01, subdivision 2, 79.12 may apply for a refund provided in subdivision 2. Application 79.13 for a refund may be made after the termination of state service 79.14 if the applicant has not again become a state employee required 79.15 to be covered by the system. 79.16 Subd. 2. [AMOUNT OF REFUND.] The refund payable to a 79.17 person defined in subdivision 1 is an amount equal to employee 79.18 contributions plus interest at a rate of five percent per year 79.19 compounded annually. The amount of the refund is paid from 79.20 contributions paid under section 352G.05 prior to the money 79.21 being invested in the health care reimbursement fund. 79.22 Subd. 3. [TERMINATION OF RIGHTS.] When an ineligible 79.23 terminated employee or an eligible retired employee accepts a 79.24 refund as provided in subdivision 2, all existing service and 79.25 all rights and benefits to which the employee was entitled 79.26 before accepting the refund terminate. Refunds may not be 79.27 repaid. 79.28 Subd. 4. [REPAYMENT OF REFUND.] An included participant 79.29 may repay a refund paid under subdivision 2 by paying the amount 79.30 refunded plus 8.5 percent interest compounded annually. All 79.31 refunds must be paid before termination or within one month 79.32 following termination of state service. 79.33 Sec. 11. [352G.11] [PAYMENTS UPON THE DEATH OF AN INCLUDED 79.34 PARTICIPANT.] 79.35 Upon the death of an included participant or a person not 79.36 yet collecting monthly benefits under this section, the 80.1 designated beneficiary is entitled to a refund of contributions 80.2 plus five percent interest, compounded annually. 80.3 Sec. 12. [352G.12] [PAYMENT UPON THE DEATH OF AN ELIGIBLE 80.4 RETIRED EMPLOYEE.] 80.5 Upon the death of an eligible retired employee who has 80.6 started collecting monthly benefits, the designated beneficiary 80.7 is entitled to a refund of the eligible retired employee's 80.8 contributions plus five percent interest compounded annually 80.9 until the date of termination of state service less the monthly 80.10 benefits that have been paid. 80.11 Sec. 13. [CURRENT RETIREES AND DISABLED EMPLOYEES.] 80.12 Any current retiree or disabled employee receiving monthly 80.13 benefits under Minnesota Statutes, chapter 3A, 352, 352B, 352D, 80.14 or 490, or an employee of the Minnesota historical society, the 80.15 Minnesota humanities commission, or the board of the arts 80.16 contributing to a retirement plan under chapter 354B, who has 15 80.17 or more years of service and is age 60 or who qualified for the 80.18 rule of 90 at the time of termination of public employment would 80.19 be eligible to receive an additional $55 per month. This 80.20 additional payment will be added to the retired or disabled 80.21 employees monthly retirement check and will be eligible for 80.22 future postretirement adjustments under Minnesota Statutes, 80.23 section 11A.18, subdivision 9. The present value necessary to 80.24 provide this benefit increase to retired and disabled employees 80.25 must be transferred to the postretirement fund under Minnesota 80.26 Statutes, section 11A.18, subdivision 6, from the retirement 80.27 fund the person is currently receiving the benefits. If the 80.28 retired or disabled employee is receiving payments from more 80.29 than one retirement plan meeting qualifications under this 80.30 subdivision, the required reserves will be transferred from the 80.31 plan with the most service credit. 80.32 Sec. 14. [RETIREES AND DISABLED EMPLOYEES UNDER AGE 60.] 80.33 A retired or disabled employee who has 15 or more years of 80.34 service, but has not yet reached age 60 will be entitled to an 80.35 additional $55 per month upon attainment of age 60. The present 80.36 value necessary to provide the benefit increase to those who 81.1 become eligible later must be transferred to the postretirement 81.2 fund when they reach age 60. 81.3 Sec. 15. [FIRST INCREASE.] 81.4 An eligible or retired eligible employee would first be 81.5 eligible for an increase on January 1, 2003. The required 81.6 reserves to support the payment must be transferred on July 1, 81.7 2001. 81.8 Sec. 16. [UNLIMITED RIGHT TO AMEND.] 81.9 Notwithstanding any other provision of the health benefit 81.10 fund and provisions of the Internal Revenue Code, the provisions 81.11 governing the health care reimbursement plan may be amended at 81.12 any time and in any manner for any reason whatsoever. This 81.13 right to amend includes, but is not limited to, the right to 81.14 reduce or eliminate prospectively or retroactively any or all 81.15 health benefits under the health care reimbursement plan for any 81.16 or all persons who may be members, retirees, and other 81.17 recipients or otherwise may be entitled to health benefits under 81.18 this plan. Benefits may be reduced or eliminated for any or all 81.19 persons including members, retirees, and other recipients even 81.20 if they are then entitled to or are receiving health benefits. 81.21 Sec. 17. [POSTRETIREMENT AND ACTIVE EMPLOYEE HEALTH CARE 81.22 TASK FORCE.] 81.23 (a) The commissioner of employee relations shall convene a 81.24 task force on postretirement and active employee health care. 81.25 The task force shall identify strategies for providing 81.26 postretirement and active employee health care coverage for 81.27 public employees and make recommendations regarding the most 81.28 appropriate and efficient manner for providing postretirement 81.29 and active employee health care. 81.30 (b) One-half of the task force membership must be composed 81.31 of employees and the other half of the membership must be 81.32 composed of employers. The task force shall include, but not be 81.33 limited to, the following: 81.34 (1) a representative of the department of employee 81.35 relations; 81.36 (2) a representative of the Minnesota state retirement 82.1 system; 82.2 (3) a representative of the teachers retirement 82.3 association; 82.4 (4) a representative of the public employees retirement 82.5 association; 82.6 (5) a representative of the first class city teacher 82.7 retirement fund associations; 82.8 (6) a representative of the first class city police and 82.9 fire department relief associations; 82.10 (7) a representative of the Minneapolis employees 82.11 retirement fund; 82.12 (8) a representative of the legislative coordinating 82.13 commission subcommittee on employee relations; 82.14 (9) one representative each from the Minnesota school 82.15 boards association, Minnesota service cooperatives, the 82.16 association of Minnesota counties, the Minnesota association of 82.17 townships, the league of Minnesota cities; 82.18 (10) exclusive representatives of affected public 82.19 employees; and 82.20 (11) representatives of major public employers. 82.21 (c) The task force shall report its findings and 82.22 recommendations to the legislature by November 15, 2000. The 82.23 report shall address: 82.24 (1) alternative methods of providing and paying for 82.25 postretirement and active employee health care; 82.26 (2) the estimated cost of providing postretirement and 82.27 active employee health care under various alternatives, 82.28 including statewide, regional, or market alternatives; 82.29 (3) the most efficient administrative structure for 82.30 providing for postretirement and active employee health care; 82.31 and 82.32 (4) issues of adverse selection, cost containment, consumer 82.33 choice, and options for dealing with other employee concerns. 82.34 (d) The task force shall conduct the study and assemble 82.35 data in a manner that will provide for the ability to conduct 82.36 analysis for subsets of the groups being studied by employer and 83.1 employee types. 83.2 Sec. 18. [EFFECTIVE DATE.] 83.3 Section 17 is effective on the day following final 83.4 enactment. 83.5 ARTICLE 6 83.6 MSRS-CORRECTIONAL PLAN MEMBERSHIP 83.7 INCLUSIONS 83.8 Section 1. Minnesota Statutes 1998, section 352.91, 83.9 subdivision 3c, is amended to read: 83.10 Subd. 3c. [NURSING PERSONNEL.] (a) "Covered correctional 83.11 service" means service by a state employee in one of the 83.12 employment positions at a correctional facility or at the 83.13 Minnesota security hospital specified in paragraph (b), provided 83.14 that at least 75 percent of the employee's working time is spent 83.15 in direct contact with inmates or patients and the fact of this 83.16 direct contact is certified to the executive director by the 83.17 appropriate commissioner, unless the person elects to retain the 83.18 current retirement coverage under Laws 1996, chapter 408, 83.19 article 8, section 21. 83.20 (b) The employment positions are as follows: 83.21 (1) registered nurse - senior; 83.22 (2) registered nurse; 83.23 (3) registered nurse - principal;and83.24 (4) licensed practical nurse 2; and 83.25 (5) registered nurse practitioner. 83.26 Sec. 2. Minnesota Statutes 1998, section 352.91, 83.27 subdivision 3d, is amended to read: 83.28 Subd. 3d. [OTHER CORRECTIONAL PERSONNEL.] (a) "Covered 83.29 correctional service" means service by a state employee in one 83.30 of the employment positions at a correctional facility or at the 83.31 Minnesota security hospital specified in paragraph (b), provided 83.32 that at least 75 percent of the employee's working time is spent 83.33 in direct contact with inmates or patients and the fact of this 83.34 direct contact is certified to the executive director by the 83.35 appropriate commissioner, unless the person elects to retain the 83.36 current retirement coverage under Laws 1996, chapter 408, 84.1 article 8, section 21. 84.2 (b) The employment positions are as follows: baker, 84.3 chemical dependency counselor supervisor, chief cook, cook, cook 84.4 coordinator, corrections behavior therapist, corrections 84.5 behavior therapist specialist, corrections parent education 84.6 coordinator, corrections security caseworker, corrections 84.7 security caseworker career, corrections teaching assistant, 84.8 dentist, electrician supervisor, general repair worker, 84.9 library/information research services specialist, 84.10 library/information research services specialist senior, plumber 84.11 supervisor, psychologist 3, recreation therapist, recreation 84.12 therapist coordinator, recreation program assistant, recreation 84.13 therapist senior, stores clerk senior, water treatment plant 84.14 operator, work therapy technician, work therapy assistant, work 84.15 therapy program coordinator, corrections discipline unit 84.16 supervisor, dental assistant registered, dental hygienist, 84.17 psychologist 2, and sentencing to service crew leader involved 84.18 with the inmate community work crew program. 84.19 (c) "Covered correctional service" also means service as 84.20 the director of the Phoenix/Pomiga treatment/behavior change 84.21 program of the department of corrections and the Phoenix/Pomiga 84.22 assistant group supervisors. 84.23 Sec. 3. Minnesota Statutes 1998, section 352.91, is 84.24 amended by adding a subdivision to read: 84.25 Subd. 3f. [ADDITIONAL CORRECTIONAL PERSONNEL.] (a) 84.26 "Covered correctional service" means service by a state employee 84.27 in one of the employment positions at the Minnesota security 84.28 hospital or the Minnesota sexual psychopathic personality 84.29 treatment center specified in paragraph (b), provided that at 84.30 least 75 percent of the employee's working time is spent in 84.31 direct contact with patients and the fact of this direct contact 84.32 is certified to the executive director by the commissioner of 84.33 human services. 84.34 (b) The employment positions are: 84.35 (1) behavior analyst 2; 84.36 (2) licensed practical nurse 1; 85.1 (3) office and administrative specialist senior; 85.2 (4) psychologist 2; 85.3 (5) social worker specialist; 85.4 (6) behavior analyst 3; and 85.5 (7) social worker senior. 85.6 Sec. 4. [COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN 85.7 PERSONS.] 85.8 Subdivision 1. [ELECTION OF PRIOR STATE SERVICE 85.9 COVERAGE.] (a) An employee who has future retirement coverage 85.10 transferred to the correctional employees retirement plan under 85.11 section 1, 2, or 3, or an employee who has retirement coverage 85.12 for past correctional service transferred to the correctional 85.13 employees retirement plan under section 2, is entitled to elect 85.14 to obtain prior service credit for eligible state service 85.15 performed after June 30, 1975, and before the first day of the 85.16 first full pay period beginning after June 30, 2000, with the 85.17 department of corrections or the department of human services at 85.18 the Minnesota security hospital or the Minnesota sexual 85.19 psychopathic personality treatment center. All eligible prior 85.20 service credit must be purchased. 85.21 (b) For purposes of section 1; 2, paragraph (b); or 3, 85.22 eligible state service with the department of corrections or the 85.23 department of human services is any prior period of continuous 85.24 service after June 30, 1975, performed as an employee of the 85.25 department of corrections or the department of human services 85.26 that would have been eligible for the correctional employees 85.27 retirement plan coverage under section 1, 2, or 3 if that prior 85.28 service had been performed after the first day of the first full 85.29 pay period beginning after June 30, 2000, rather than before 85.30 that date. Service is continuous if there has been no period of 85.31 discontinuation of eligible state service for a period greater 85.32 than 180 calendar days. For purposes of section 2, paragraph 85.33 (c), eligible state service is any period of service on or after 85.34 the date which the employee started employment with the Phoenix 85.35 treatment/behavior change program in a position specified in 85.36 Minnesota Statutes, section 352.91, subdivision 3d, paragraph 86.1 (c), in which at least 75 percent of the employee's working time 86.2 is determined to have been spent in direct contact with program 86.3 participants, and the date the employee joined the correctional 86.4 employees plan. 86.5 (c) The commissioner of corrections or the commissioner of 86.6 human services shall certify eligible state service to the 86.7 executive director of the Minnesota state retirement system. 86.8 (d) A covered correctional plan employee employed on July 86.9 1, 2000, who has past service in a job classification covered 86.10 under section 1, 2, or 3 on July 1, 2000, is entitled to 86.11 purchase the past service if the applicable department certifies 86.12 that the employee met the eligibility requirements for 86.13 coverage. The employee shall pay the difference between the 86.14 employee contributions actually paid during the period and what 86.15 should have been paid under the correctional employees 86.16 retirement plan. Payment for past service must be completed by 86.17 June 30, 2002. 86.18 Subd. 2. [PAYMENT FOR PAST SERVICE.] (a) An employee 86.19 electing to obtain prior service credit under subdivision 1 must 86.20 pay an additional employee contribution for that prior service. 86.21 The additional member contribution is the contribution 86.22 differential percentage applied to the actual salary paid to the 86.23 employee during the period of the prior eligible state service, 86.24 plus interest at the rate of six percent per annum, compounded 86.25 annually. The contribution differential percentage is the 86.26 difference between 4.9 percent of salary and the applicable 86.27 employee contribution rate of the general state employees 86.28 retirement plan during the prior eligible state service. 86.29 (b) The additional member contribution must be paid only in 86.30 a lump sum. Payment must accompany the election to obtain prior 86.31 service credit. No election of payment may be made by the 86.32 person or accepted by the executive director after June 30, 2002. 86.33 Subd. 3. [TRANSFER OF ASSETS.] Assets must be transferred 86.34 from the general state employees retirement plan to the 86.35 correctional employees retirement plan, in an amount equal to 86.36 the present value of benefits earned under the general employees 87.1 retirement plan for each employee transferring to the 87.2 correctional employees retirement plan, as determined by the 87.3 actuary retained by the legislative commission on pensions and 87.4 retirement in accordance with Minnesota Statutes, section 87.5 356.215. The transfer of assets must be made within 45 days 87.6 after the employee elects to transfer coverage to the 87.7 correctional employees retirement plan. 87.8 Subd. 4. [EFFECT OF THE ASSET TRANSFER.] Upon transfer of 87.9 assets in subdivision 3, service credit in the general state 87.10 employees plan of the Minnesota state retirement system is 87.11 forfeited and may not be reinstated. The service credit and 87.12 transferred assets must be credited to the correctional 87.13 employees retirement plan. 87.14 Subd. 5. [PAYMENT OF ACTUARIAL CALCULATION COSTS.] (a) The 87.15 expense of the legislative commission on pensions and retirement 87.16 attributable to the calculations of its consulting actuary under 87.17 subdivision 3 must be reimbursed by the department of 87.18 corrections and the department of human services. 87.19 (b) The expense reimbursement under paragraph (a) must be 87.20 allocated between the two departments in a manner that is 87.21 jointly agreeable. If no allocation procedure is developed by 87.22 the commissioner of corrections and the commissioner of human 87.23 services, the cost must be allocated on an equally shared basis. 87.24 (c) Payment of the expense reimbursement to the legislative 87.25 commission on pensions and retirement is due 30 days after the 87.26 receipt of the reimbursement request from the executive director 87.27 of the legislative commission on pensions and retirement. 87.28 Sec. 5. [EFFECTIVE DATE.] 87.29 Sections 1 to 4 are effective July 1, 2000. 87.30 ARTICLE 7 87.31 PERA AND PERA-P&F MEMBERSHIP INCLUSIONS 87.32 Section 1. Minnesota Statutes 1999 Supplement, section 87.33 353.01, subdivision 2b, is amended to read: 87.34 Subd. 2b. [EXCLUDED EMPLOYEES.] The following public 87.35 employees shall not participate as members of the association 87.36 with retirement coverage by the public employees retirement plan 88.1 or the public employees police and fire retirement plan: 88.2 (1) elected public officers, or persons appointed to fill a 88.3 vacancy in an elective office, who do not elect to participate 88.4 in the association by filing an application for membership; 88.5 (2) election officers; 88.6 (3) patient and inmate personnel who perform services in 88.7 charitable, penal, or correctional institutions of a 88.8 governmental subdivision; 88.9 (4) employees who are hired for a temporary position under 88.10 subdivision 12a, and employees who resign from a nontemporary 88.11 position and accept a temporary position within 30 days in the 88.12 same governmental subdivision, but not those employees who are 88.13 hired for an unlimited period but are serving a probationary 88.14 period. If the period of employment extends beyond six 88.15 consecutive months and the employee earns more than $425 from 88.16 one governmental subdivision in any one calendar month, the 88.17 department head shall report the employee for membership and 88.18 require employee deductions be made on behalf of the employee 88.19 under section 353.27, subdivision 4. 88.20 Membership eligibility of an employee who resigns or is 88.21 dismissed from a temporary position and within 30 days accepts 88.22 another temporary position in the same governmental subdivision 88.23 is determined on the total length of employment rather than on 88.24 each separate position. Membership eligibility of an employee 88.25 who holds concurrent temporary and nontemporary positions in one 88.26 governmental subdivision is determined by the length of 88.27 employment and salary of each separate position; 88.28 (5) employees whose actual salary from one governmental 88.29 subdivision does not exceed $425 per month, or whose annual 88.30 salary from one governmental subdivision does not exceed a 88.31 stipulation prepared in advance, in writing, that the salary 88.32 must not exceed $5,100 per calendar year or per school year for 88.33 school employees for employment expected to be of a full year's 88.34 duration or more than the prorated portion of $5,100 per 88.35 employment period for employment expected to be of less than a 88.36 full year's duration; 89.1 (6) employees who are employed by reason of work emergency 89.2 caused by fire, flood, storm, or similar disaster; 89.3 (7) employees who by virtue of their employment in one 89.4 governmental subdivision are required by law to be a member of 89.5 and to contribute to any of the plans or funds administered by 89.6 the Minnesota state retirement system, the teachers retirement 89.7 association, the Duluth teachers retirement fund association, 89.8 the Minneapolis teachers retirement association, the St. Paul 89.9 teachers retirement fund association, the Minneapolis employees 89.10 retirement fund, or any police or firefighters relief 89.11 association governed by section 69.77 that has not consolidated 89.12 with the public employees retirement association, or any local 89.13 police or firefighters consolidation account but who have not 89.14 elected the type of benefit coverage provided by the public 89.15 employees police and fire fund under sections 353A.01 to 89.16 353A.10, or any persons covered by section 353.665, subdivision 89.17 4, 5, or 6, who have not elected public employees police and 89.18 fire plan benefit coverage. This clause must not be construed 89.19 to prevent a person from being a member of and contributing to 89.20 the public employees retirement association and also belonging 89.21 to and contributing to another public pension fund for other 89.22 service occurring during the same period of time. A person who 89.23 meets the definition of "public employee" in subdivision 2 by 89.24 virtue of other service occurring during the same period of time 89.25 becomes a member of the association unless contributions are 89.26 made to another public retirement fund on the salary based on 89.27 the other service or to the teachers retirement association by a 89.28 teacher as defined in section 354.05, subdivision 2; 89.29 (8) persons who are excluded from coverage under the 89.30 federal Old Age, Survivors, Disability, and Health Insurance 89.31 Program for the performance of service as specified in United 89.32 States Code, title 42, section 410(a)(8)(A), as amended through 89.33 January 1, 1987, if no irrevocable election of coverage has been 89.34 made under section 3121(r) of the Internal Revenue Code of 1954, 89.35 as amended; 89.36 (9) full-time students who are enrolled and are regularly 90.1 attending classes at an accredited school, college, or 90.2 university and who are part-time employees as defined by a 90.3 governmental subdivision; 90.4 (10) resident physicians, medical interns, and pharmacist 90.5 residents and pharmacist interns who are serving in a degree or 90.6 residency program in public hospitals; 90.7 (11) students who are serving in an internship or residency 90.8 program sponsored by an accredited educational institution; 90.9 (12) persons who hold a part-time adult supplementary 90.10 technical college license who render part-time teaching service 90.11 in a technical college; 90.12 (13) foreign citizens working for a governmental 90.13 subdivision with a work permit of less than three years, or an 90.14 H-1b visa valid for less than three years of employment. Upon 90.15 notice to the association that the work permit or visa extends 90.16 beyond the three-year period, the foreign citizens are eligible 90.17 for membership from the date of the extension; 90.18 (14) public hospital employees who elected not to 90.19 participate as members of the association before 1972 and who 90.20 did not elect to participate from July 1, 1988, to October 1, 90.21 1988; 90.22 (15) except as provided in section 353.86, volunteer 90.23 ambulance service personnel, as defined in subdivision 35, but 90.24 persons who serve as volunteer ambulance service personnel may 90.25 still qualify as public employees under subdivision 2 and may be 90.26 members of the public employees retirement association and 90.27 participants in the public employees retirement fund or the 90.28 public employees police and fire fund on the basis of 90.29 compensation received from public employment service other than 90.30 service as volunteer ambulance service personnel; 90.31 (16) except as provided in section 353.87, volunteer 90.32 firefighters, as defined in subdivision 36, engaging in 90.33 activities undertaken as part of volunteer firefighter duties; 90.34 provided that a person who is a volunteer firefighter may still 90.35 qualify as a public employee under subdivision 2 and may be a 90.36 member of the public employees retirement association and a 91.1 participant in the public employees retirement fund or the 91.2 public employees police and fire fund on the basis of 91.3 compensation received from public employment activities other 91.4 than those as a volunteer firefighter;and91.5 (17) pipefitters and associated trades personnel employed 91.6 by independent school district No. 625, St. Paul, with coverage 91.7 by the pipefitters local 455 pension plan under a collective 91.8 bargaining agreement who were either first employed after May 1, 91.9 1997, or, if first employed before May 2, 1997, elected to be 91.10 excluded under Laws 1997, chapter 241, article 2, section 12; 91.11 and 91.12 (18) electrical workers, plumbers, carpenters, and 91.13 associated trades personnel employed by independent school 91.14 district No. 625, St. Paul, or the city of St. Paul, with 91.15 coverage by the electrical workers local 110 pension plan, the 91.16 united association plumbers local 34 pension plan, or carpenters 91.17 local 87 pension plan under a collective bargaining agreement 91.18 who were either first employed after May 1, 2000, or, if first 91.19 employed before May 2, 2000, elected to be excluded under 91.20 section 5. 91.21 Sec. 2. Minnesota Statutes 1998, section 353.64, is 91.22 amended by adding a subdivision to read: 91.23 Subd. 11. [PENSION COVERAGE FOR CERTAIN TRIBAL POLICE 91.24 OFFICERS EXERCISING STATE ARREST POWERS.] (a) The governing body 91.25 of a tribal police department which is exercising state arrest 91.26 powers under section 626.90, 626.91, 626.92, or 626.93 may 91.27 request by resolution to the executive director that its police 91.28 officers be considered public employees under section 353.01, 91.29 subdivision 2, and become members of the public employees police 91.30 and fire retirement plan and that the tribal police department 91.31 be considered a governmental subdivision under section 353.01, 91.32 subdivision 6. 91.33 (b) The executive director of the association must approve 91.34 the request by a tribal police department under paragraph (a) if 91.35 a ruling made by the federal Internal Revenue Service provides 91.36 that: 92.1 (1) the tribal police department is an agency or 92.2 instrumentality of the state of Minnesota for purposes of 92.3 enforcing state law; and 92.4 (2) that contributions made by the tribal police department 92.5 to a retirement plan on behalf of employees of the tribal police 92.6 department are contributions to a governmental plan within the 92.7 meaning of section 414(d) of the federal Internal Revenue Code. 92.8 (c) Following approval of the request by the executive 92.9 director, the head of the police department or designee must 92.10 immediately report for membership in the police and fire fund a 92.11 person who is employed as a full-time or part-time police 92.12 officer in a position that meets the conditions in sections 92.13 353.01, subdivision 2a, and 353.64, subdivisions 1 and 2. The 92.14 police department head or designee must deduct the employee 92.15 contributions from the salary of each eligible police officer as 92.16 required by section 353.65, subdivision 2, and make the employer 92.17 contributions required by section 353.65, subdivision 3. The 92.18 head of the police department must meet the reporting 92.19 requirements in section 353.65, subdivision 4. 92.20 Sec. 3. [353.666] [PAST SERVICE CREDIT FOR CERTAIN MEMBERS 92.21 EXTENDED COVERAGE.] 92.22 (a) A member to whom public employees police and fire 92.23 retirement plan membership was extended under section 353.64, 92.24 subdivision 11, may receive retroactive service credit in the 92.25 public employees police and fire retirement plan for service as 92.26 a tribal police officer rendered before the effective date of 92.27 membership of the tribal police department employee in the 92.28 police and fire fund, provided that the employee and the police 92.29 department did not make contributions into a qualified 92.30 tax-deferred retirement plan for that employment period. 92.31 (b) The request for retroactive coverage must be in writing 92.32 and must be filed with the association within 60 days of when 92.33 police and fire fund membership commenced. The prior service 92.34 credit purchase payment is governed by section 356.55, except 92.35 that the member must pay an amount equal to the employee salary 92.36 deductions. The employee salary deductions for the retroactive 93.1 period must be based on the police and fire pension plan rates 93.2 in effect when the service was rendered and applied to the 93.3 salary amount that was earned and paid to the police officer. 93.4 The employer must pay the balance of the prior service credit 93.5 purchase payment amount. 93.6 Sec. 4. Laws 1965, chapter 705, section 1, subdivision 4, 93.7 as amended by Laws 1995, First Special Session chapter 3, 93.8 article 8, section 14, and Laws 1997, chapter 241, article 2, 93.9 section 8, is amended to read: 93.10 Subd. 4. [INDEPENDENT SCHOOL DISTRICT NO. 625; 93.11 APPLICABILITY OF CERTAIN LAWS.] (a) As of July 1, 1965, the 93.12 organization, operation, maintenance and conduct of the affairs 93.13 of the converted district shall be governed by general laws 93.14 relating to independent districts, except as otherwise provided 93.15 in Extra Session Laws 1959, Chapter 71, as amended, and all 93.16 special laws and charter provisions relating only to the 93.17 converted district are repealed. 93.18 (b) Where an existing pension law is applicable to 93.19 employees of the special district, such law shall continue to be 93.20 applicable in the same manner and to the same extent to 93.21 employees of the converted district. Notwithstanding this 93.22 requirement, pipefitters and associated trades personnel with 93.23 coverage by the pipefitters local 455 pension plan under a 93.24 collective bargaining agreement who either were first employed 93.25 after May 1, 1997, or, if first employed before May 2, 1997, 93.26 elected exclusion from coverage under section 12 and electrical 93.27 workers, carpenters, and associated trades personnel with 93.28 coverage by the electrical workers local 110 pension plan or the 93.29 carpenters local 87 pension plan under a collective bargaining 93.30 agreement who either were first employed after May 1, 2000, or, 93.31 if first employed before May 2, 2000, elected exclusion from 93.32 coverage under section 5, are not covered by the public 93.33 employees retirement association. 93.34 (c) General laws applicable to independent school districts 93.35 wholly or partly within cities of the first class shall not be 93.36 applicable to the converted district. 94.1 (d) The provision of the statutes applicable only to 94.2 teachers retirement fund associations in cities of the first 94.3 class, limiting the amount of annuity to be paid from public 94.4 funds, limiting the taxes to be levied to carry out the plan of 94.5 such associations, and limiting the amount of annuities to be 94.6 paid to beneficiaries shall not be applicable to such converted 94.7 district, but the statutes applicable to such special district 94.8 prior to the conversion shall continue to be applicable and the 94.9 pension plan in operation prior to the conversion shall continue 94.10 in operation until changed in accordance with law, and the 94.11 teacher tenure law applicable to the special district shall 94.12 continue to apply to the converted district in the same manner 94.13 and to the same extent to teachers in the converted district; 94.14 provided further, where existing civil service provisions of any 94.15 law or charter are applicable to special district employees, 94.16 such provision may continue to be applicable in the same manner 94.17 and to the same extent to employees of the converted district, 94.18 unless the board and city governing body each adopt a resolution 94.19 declaring that civil service bureau (city human resources 94.20 department) functions would be more efficiently and effectively 94.21 administered separately in each jurisdiction. Notwithstanding 94.22 any contrary provision of Extra Session Laws 1959, Chapter 71, 94.23 as amended, if there was in the special district a teachers 94.24 retirement fund association operating and existing under the 94.25 provisions of Laws 1909, Chapter 343, and all acts amendatory 94.26 thereof, then such teachers retirement fund association shall 94.27 continue to exist and operate in the converted district under 94.28 and to be subject to the provisions of Laws 1909, Chapter 343, 94.29 and all acts amendatory thereof, to the same extent and in the 94.30 same manner as before the conversion, and, without limiting the 94.31 generality of the foregoing, such teachers retirement fund 94.32 association shall continue, after the conversion as before the 94.33 conversion, to certify to the same authorities the amount 94.34 necessary to raise by taxation in order to carry out its 94.35 retirement plan, and it shall continue, after the conversion as 94.36 before the conversion, to be the duty of said authorities to 95.1 include in the tax levy for the ensuing year a tax in addition 95.2 to all other taxes sufficient to produce so much of the sums so 95.3 certified as said authorities shall approve, and such teachers 95.4 retirement fund association shall not be subject after the 95.5 conversion to any limitation on payments to any beneficiary from 95.6 public funds or on taxes to be levied to carry out the plan of 95.7 such association to which it was not subject before the 95.8 conversion. 95.9 Sec. 5. [PUBLIC PENSION COVERAGE EXCLUSION FOR CERTAIN 95.10 TRADES PERSONNEL.] 95.11 Subdivision 1. [EXCLUSION ELECTION.] (a) An electrical 95.12 worker, plumber, carpenter, or an associated trades person who 95.13 is employed by independent school district No. 625, St. Paul, or 95.14 the city of St. Paul, on the effective date of this section and 95.15 who has pension coverage by the electrical workers 110 pension 95.16 plan, the united association plumbers local 34 pension plan, or 95.17 the carpenters local 87 pension plan under a collective 95.18 bargaining agreement may elect to be excluded from pension 95.19 coverage by the public employees retirement association. 95.20 (b) The exclusion election under this section must be in 95.21 writing on a form prescribed by the executive director of the 95.22 public employees retirement association and filed with the 95.23 executive director. The exclusion election is irrevocable. 95.24 Authority to make the coverage exclusion expires on January 1, 95.25 2001. 95.26 Subd. 2. [ELIGIBILITY FOR MEMBER CONTRIBUTION REFUND.] A 95.27 person who has less than three years of allowable service in the 95.28 public employees retirement association and who elects the 95.29 pension coverage exclusion under subdivision 1 is entitled to 95.30 immediately apply for a refund under Minnesota Statutes, section 95.31 353.34, subdivisions 1 and 2, following the effective date of 95.32 the exclusion election. 95.33 Subd. 3. [DEFERRED ANNUITY ELIGIBILITY.] In lieu of the 95.34 refund under subdivision 2, a person who elects the pension 95.35 coverage exclusion under subdivision 1 is entitled to a deferred 95.36 retirement annuity under Minnesota Statutes, sections 353.34, 96.1 subdivision 3, and 353.71, subdivision 2, based on any length of 96.2 allowable service credit under Minnesota Statutes, section 96.3 353.01, subdivision 16, to the credit of the person as of the 96.4 date of the coverage exclusion election. 96.5 Sec. 6. [PERA GENERAL AND PERA P&F; PRIOR SERVICE CREDIT 96.6 PURCHASE.] 96.7 Subdivision 1. [ELIGIBILITY.] (a) Except as restricted 96.8 under subdivision 4, an eligible person described in paragraph 96.9 (b) is entitled to purchase allowable service credit for the 96.10 period or periods specified in paragraph (d) in the public 96.11 employees retirement association general plan. Except as 96.12 restricted under subdivision 4, an eligible person described in 96.13 paragraph (c) is entitled to purchase allowable service credit 96.14 for the period or periods specified in paragraph (d) in the 96.15 public employees retirement association police and fire plan. 96.16 (b) An eligible person is a person who: 96.17 (1) is a full-time salaried employee or permanent part-time 96.18 salaried employee of the Spring Lake Park Fire Department, 96.19 Incorporated; 96.20 (2) became a member of the public employees retirement 96.21 association general plan due to that employment on June 1, 1999; 96.22 and 96.23 (3) was employed by the Spring Lake Park Fire Department, 96.24 Incorporated, during all or part of the period from January 1, 96.25 1996, to June 1, 1999. 96.26 (c) An eligible person is a person who meets requirements 96.27 specified in paragraph (b), clauses (1) and (3), and who became 96.28 a member of the public employees retirement association police 96.29 and fire plan due to applicable employment with the Spring Lake 96.30 Park Fire Department, Incorporated, on June 1, 1999. 96.31 (d) The period or periods eligible for service credit 96.32 purchase in the public employees retirement association general 96.33 plan or public employees retirement association police and fire 96.34 plan, as applicable, is the period or periods from January 1, 96.35 1996, to June 1, 1999, during which an eligible individual 96.36 described in paragraph (b) or (c), as applicable, provided 97.1 service to the Spring Lake Park Fire Department, Incorporated, 97.2 which would have been eligible service for coverage by the 97.3 applicable public employees retirement association plan if that 97.4 service had been provided on or after June 1, 1999, rather than 97.5 before. 97.6 Subd. 2. [PAYMENT REQUIREMENTS.] Minnesota Statutes, 97.7 section 356.55, applies to service credit purchases authorized 97.8 under this section. 97.9 Subd. 3. [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An 97.10 eligible person described in subdivision 1, paragraph (b) or 97.11 (c), must provide any documentation related to eligibility to 97.12 make this service credit purchase required by the executive 97.13 director of the public employees retirement association. 97.14 (b) Allowable service credit for the purchase period or 97.15 periods must be granted in the applicable public employees 97.16 retirement association plan on behalf of the eligible person 97.17 upon receipt of the prior service credit purchase payment amount. 97.18 Subd. 4. [RESTRICTIONS.] (a) An eligible person as 97.19 specified in subdivision 1, paragraph (c), is not authorized to 97.20 purchase service credit in the public employees retirement 97.21 association police and fire plan under this section if the 97.22 eligible person, or the eligible person and the Spring Lake Park 97.23 Fire Department, Incorporated, made contributions on that 97.24 person's behalf to the social security old age insurance program 97.25 during all or part of the period from January 1, 1996, to June 97.26 1, 1999, and coverage under that program for the applicable 97.27 period remains in effect. 97.28 (b) If paragraph (a) applies to the eligible person, that 97.29 eligible person may purchase service credit under this section 97.30 in the public employees retirement association general plan. 97.31 (c) If contributions are made by an eligible person 97.32 specified in paragraph (a) or by that eligible person and the 97.33 Spring Lake Park Fire Department, Incorporated, or a successor 97.34 organization, to the social security old age insurance program 97.35 after June 1, 1999, due to employment for which coverage in the 97.36 public employees retirement association police and fire plan 98.1 commenced on June 1, 1999, coverage by the public employees 98.2 retirement association police and fire plan terminates and 98.3 coverage by the public employees retirement association general 98.4 plan commences, if the employment otherwise meets requirements 98.5 in law for that coverage. If public employees retirement 98.6 association police and fire plan contributions have been 98.7 received on or after June 1, 1999, for any periods where 98.8 contributions were also made to the social security old age 98.9 insurance program as specified in this paragraph, the 98.10 contributions to the public employees retirement association 98.11 police and fire plan for the applicable period or periods on or 98.12 after June 1, 1999, must be treated as contributions made in 98.13 error under Minnesota Statutes, section 353.27, subdivision 7a. 98.14 Sec. 7. [EFFECTIVE DATE.] 98.15 (a) Sections 2 and 3 are effective on July 1, 2000. 98.16 (b) Section 6 is effective on the day following final 98.17 enactment. 98.18 (c) Sections 1, 4, and 5 are effective for electrical 98.19 workers, plumbers, and associated trades personnel employed by 98.20 independent school district No. 625, St. Paul, on the day 98.21 following approval by majority vote of the board of independent 98.22 school district No. 625, St. Paul, and compliance with Minnesota 98.23 Statutes, section 645.021. 98.24 (d) Sections 1, 4, and 5 are effective for electrical 98.25 workers, plumbers, and associated trades personnel employed by 98.26 the city of St. Paul on the day following approval by majority 98.27 vote of the St. Paul city council and compliance with Minnesota 98.28 Statutes, section 645.021. 98.29 ARTICLE 8 98.30 PENSION COVERAGE UPON 98.31 EMPLOYMENT PRIVATIZATION 98.32 Section 1. Minnesota Statutes 1999 Supplement, section 98.33 353F.02, subdivision 5, is amended to read: 98.34 Subd. 5. [OTHER PUBLIC EMPLOYING UNIT.] "Other public 98.35 employing unit" means: 98.36 (1) Metro II, a joint powers organization formed under 99.1 section 471.59; and 99.2 (2) the St. Paul civic center authority. 99.3 Sec. 2. [EFFECTIVE DATE.] 99.4 Section 1 is effective on the first day of the month next 99.5 following certification by the executive director of the public 99.6 employees retirement association that the actuarial accrued 99.7 liability of the special benefit coverage proposed for extension 99.8 to the privatized St. Paul civic center authority employees 99.9 under this article does not exceed the actuarial gain otherwise 99.10 to be accrued by the public employees retirement association, as 99.11 calculated by the consulting actuary retained by the legislative 99.12 commission on pensions and retirement. The cost of the 99.13 actuarial calculations must be borne by the St. Paul civic 99.14 center authority. 99.15 ARTICLE 9 99.16 FORMER LOCAL POLICE AND FIRE CONSOLIDATION ACCOUNT 99.17 MODIFICATIONS AND CORRECTIONS 99.18 Section 1. Minnesota Statutes 1999 Supplement, section 99.19 423A.02, subdivision 1b, is amended to read: 99.20 Subd. 1b. [ADDITIONAL AMORTIZATION STATE AID.] (a) 99.21 Annually, on October 1, the commissioner of revenue shall 99.22 allocate the additional amortization state aid transferred under 99.23 section 69.021, subdivision 11, to: 99.24 (1) all police or salaried firefighter relief associations 99.25 governed by and in full compliance with the requirements of 99.26 section 69.77, that had an unfunded actuarial accrued liability 99.27 in the actuarial valuation prepared under sections 356.215 and 99.28 356.216 as of the preceding December 31; 99.29 (2) all local police or salaried firefighter consolidation 99.30 accounts governed by chapter 353A that are certified by the 99.31 executive director of the public employees retirement 99.32 association as having for the current fiscal year an additional 99.33 municipal contribution amount under section 353A.09, subdivision 99.34 5, paragraph (b), and that have implemented section 353A.083, 99.35 subdivision 1, if the effective date of the consolidation 99.36 preceded May 24, 1993, and that have implemented section 100.1 353A.083, subdivision 2, if the effective date of the 100.2 consolidation preceded June 1, 1995; and 100.3 (3) thepublic employees police and fire fund on behalf of100.4 municipalities thatreceived amortization aid in 1999 andare 100.5 required to make an additional municipal contribution under 100.6 section 353.665, subdivision 8, for the duration of the required 100.7 additional contribution. 100.8 (b) The commissioner shall allocate the state aid on the 100.9 basis of the proportional share of the relief association or 100.10 consolidation account of the total unfunded actuarial accrued 100.11 liability of all recipient relief associations and consolidation 100.12 accounts as of December 31, 1993, for relief associations, and 100.13 as of June 30, 1994, for consolidation accounts. 100.14 (c) Beginning October 1, 2000, and annually thereafter, the 100.15 commissioner shall allocate the state aid, including any state 100.16 aid in excess of the limitation in subdivision 4, on the 100.17 following basisof: 100.18 (1) 64.5 percent to thepublic employees police and fire100.19fund or local consolidation account, whichever applies, on100.20behalf ofmunicipalities to which section 353.665, subdivision 100.21 8, paragraph (b), or 353A.09, subdivision 5, paragraph (b), 100.22 apply for distribution in accordance with paragraph (b) and 100.23 subject to the limitation in subdivision 4,; 100.24 (2) 34.2 percent to the city of Minneapolis to fund any 100.25 unfunded actuarial accrued liability in the actuarial valuation 100.26 prepared under sections 356.215 and 356.216 as of the preceding 100.27 December 31 for the Minneapolis police relief association or the 100.28 Minneapolis fire department relief association,; and 100.29 (3) 1.3 percent to the city of Virginia to fund any 100.30 unfunded actuarial accrued liability in the actuarial valuation 100.31 prepared under sections 356.215 and 356.216 as of the preceding 100.32 December 31 for the Virginia fire department relief association. 100.33In the event thatIf there is no unfunded actuarial accrued 100.34 liability in both the Minneapolis police relief association and 100.35 the Minneapolis fire department relief association as disclosed 100.36 in the most recent actuarial valuations for the relief 101.1 associations prepared under sections 356.215 and 356.216, the 101.2 commissioner shall allocate that 34.2 percent of the aid as 101.3 follows: 49 percent to the Minneapolis teachers retirement fund 101.4 association,provided that,21 percent to the St. Paul teachers 101.5 retirement fund association, and 30 percent as additional 101.6 funding to support minimum fire state aid for volunteer 101.7 firefighter relief associations. If there is no unfunded 101.8 actuarial accrued liability in the Virginia fire department 101.9 relief association as disclosed in the most recent actuarial 101.10 valuation for the relief association prepared under sections 101.11 356.215 and 356.216, the commissioner shall allocate that 1.3 101.12 percent of the aid as follows: 49 percent to the Minneapolis 101.13 teachers retirement fund association, 21 percent to the St. Paul 101.14 teachers retirement fund association, and 30 percent as 101.15 additional funding to support minimum fire state aid for 101.16 volunteer firefighter relief associations. The allocation must 101.17 be made by the commissioner at the same time and under the same 101.18 procedures as specified in subdivision 3. With respect to the 101.19 Minneapolis teachers retirement fund association or the St. Paul 101.20 teachers retirement fund association, annually, beginning on 101.21 July 1, 2005, ifathe applicable teacher's association 101.22 five-year average time-weighted rate of investment return does 101.23 not equal or exceed the performance of a composite portfolio 101.24 assumed passively managed (indexed) invested ten percent in cash 101.25 equivalents, 60 percent in bonds and similar debt securities, 101.26 and 30 percent in domestic stock calculated using the formula 101.27 under section 11A.04, clause (11), the aid allocation to that 101.28 retirement fund under this section ceases until the five-year 101.29 annual rate of investment return equals or exceeds the 101.30 performance ofathat composite portfolio, 21 percent to the St.101.31Paul teachers retirement fund association, provided that,101.32annually, beginning on July 1, 2005, if a teacher's association101.33five-year average time-weighted rate of investment return does101.34not equal or exceed the performance of a composite portfolio101.35assumed passively managed (indexed) invested ten percent in cash101.36equivalents, 60 percent bonds and similar debt securities, and102.130 percent in domestic stock calculated using the formula under102.2section 11A.04, clause (11), the aid under this section ceases102.3until the five-year annual rate of return equals or exceeds the102.4performance of a composite portfolio, and 30 percent as102.5additional funding to support minimum fire state aid for102.6volunteer firefighter relief associations, with the allocation102.7made at the same time and under the same procedures in102.8subdivision 3. In the event there is no actuarial accrued102.9unfunded liability in the Virginia fire department relief102.10association, the commissioner shall allocate that 1.3 percent of102.11the aid as follows: 49 percent to the Minneapolis teachers102.12retirement fund association, provided that, annually, beginning102.13on July 1, 2005, if a teacher's association five-year average102.14time-weighted rate of investment return does not equal or exceed102.15the performance of a composite portfolio assumed passively102.16managed (indexed) invested ten percent in cash equivalents, 60102.17percent bonds and similar debt securities, and 30 percent in102.18domestic stock calculated using the formula under section102.1911A.04, clause (11), the aid under this section ceases until the102.20five-year annual rate of return equals or exceeds the102.21performance of a composite portfolio, 21 percent to the St. Paul102.22teachers retirement fund association, provided that, annually,102.23beginning on July 1, 2005, if a teacher's association five-year102.24average time-weighted rate of investment return does not equal102.25or exceed the performance of a composite portfolio assumed102.26passively managed (indexed) invested ten percent in cash102.27equivalents, 60 percent bonds and similar debt securities, and102.2830 percent in domestic stock calculated using the formula under102.29section 11A.04, clause (11), the aid under this section ceases102.30until the five-year annual rate of return equals or exceeds the102.31performance of a composite portfolio, and 30 percent as102.32additional funding to support minimum fire state aid for102.33volunteer firefighter relief associations, with the allocation102.34made at the same time and under the same procedures in102.35subdivision 3. 102.36 (d)Additional amortization state aid payable to the public103.1employees retirement association on behalf of a municipality103.2must be credited by the executive director of the public103.3employees retirement association against any additional103.4municipal contribution to which the applicable municipality is103.5obligated to make under section 353A.09, subdivision 5, or under103.6section 353.665, subdivision 8.103.7(e)The amounts required under this subdivision are 103.8 annually appropriated to the commissioner of revenue. 103.9 Sec. 2. Minnesota Statutes 1999 Supplement, section 103.10 423A.02, subdivision 4, is amended to read: 103.11 Subd. 4. [LIMIT ON CERTAIN TOTAL AID AMOUNTS.] (a) The 103.12 total of amortization aid, supplemental amortization aid, and 103.13 additional amortization aid under this section payable tothe103.14executive director of the public employees retirement103.15association on behalf ofa municipality to which section 103.16 353.665, subdivision 8, paragraph (b), applies, may not exceed 103.17 the amount of the additional municipal contribution payable by 103.18 an individual municipality under section 353.665, subdivision 8, 103.19 paragraph (b). 103.20 (b) Any aid amount in excess of the limit under this 103.21 subdivision for an individual municipality must be redistributed 103.22 to the other municipalities to which section 353.665, 103.23 subdivision 8, paragraph (b), applies. The excess aid must be 103.24 distributed in proportion to each municipality's additional 103.25 municipal contribution under section 353.665, subdivision 8, 103.26 paragraph (b). 103.27 (c) When the total aid for each municipality under this 103.28 section equals the limit under paragraph (a), any aid in excess 103.29 of the limit must be redistributed undersubdivisions 1, 1a, and103.30 subdivision 1b. 103.31 Sec. 3. Minnesota Statutes 1999 Supplement, section 103.32 423A.02, subdivision 5, is amended to read: 103.33 Subd. 5. [TERMINATION OF STATE AID PROGRAMS.] The 103.34 amortization state aid, supplemental amortization state aid, and 103.35 additional amortization state aid programs terminate as of the 103.36 December 31, next following the date of the actuarial valuation 104.1 when the assets of the Minneapolis teachers retirement fund 104.2 association equal the actuarial accrued liability of that plan 104.3 and when the assets of the St. Paul teachers retirement fund 104.4 association equal the actuarial accrued liability of that 104.5 plan or December 31, 2009, whichever is later. 104.6 Sec. 4. [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; ONE-TIME 104.7 SPECIAL OPTIONAL ANNUITY ELECTION FOR CERTAIN FORMER 104.8 CONSOLIDATION ACCOUNT RETIREES.] 104.9 Subdivision 1. [ELIGIBILITY.] An individual who was a 104.10 deferred annuitant, a service pension annuitant, or who was 104.11 receiving disability benefits from the relief association on the 104.12 effective date of the consolidation of the applicable local 104.13 police or paid firefighter relief association, and who chose 104.14 annual adjustments applicable to the public employees retirement 104.15 association police and fire plan in elections provided under 104.16 Minnesota Statutes, section 353A.08, subdivision 1 or 2, or 104.17 353.615, subdivisions 5 and 6, may elect an optional annuity 104.18 form under subdivision 2 to provide additional payments to a 104.19 surviving spouse. 104.20 Subd. 2. [OPTIONAL ANNUITIES.] The optional annuity form 104.21 may be either a 15 percent or a 25 percent joint and survivor 104.22 annuity and is without reinstatement in the event of the 104.23 surviving spouse predeceasing the member. The optional annuity 104.24 forms must be actuarially equivalent to the service pension 104.25 currently paid to the retired consolidated member without 104.26 consideration of the value of survivor benefits payable under 104.27 Minnesota Statutes, section 353B.11, and must be based upon the 104.28 age of the member and the age of the spouse of the member as of 104.29 October 1, 2000. 104.30 Subd. 3. [ADDITIONAL SURVIVOR BENEFIT.] An optional 104.31 annuity under subdivision 2 is payable in addition to any 104.32 applicable survivor benefit payable under Minnesota Statutes, 104.33 section 353.11. An optional annuity under subdivision 2 when 104.34 combined with applicable survivor benefits under Minnesota 104.35 Statutes, section 353.11, must not exceed the benefit payable to 104.36 the deceased service or disability pensioner immediately prior 105.1 to death. 105.2 Subd. 4. [ELECTION.] (a) To be valid, an optional annuity 105.3 form under subdivision 2 must be elected in writing on a form 105.4 prescribed by the executive director of the public employees 105.5 retirement association and signed by the eligible service 105.6 pensioner or disabilitant before October 1, 2000. Once 105.7 selected, the optional annuity is irrevocable. 105.8 (b) The executive director of the public employees 105.9 retirement association shall provide counseling to members 105.10 regarding the election of an optional annuity form under this 105.11 section, including the impact on current benefit levels payable 105.12 if an option annuity form is elected. 105.13 Sec. 5. [EFFECTIVE DATE.] 105.14 Sections 1 to 4 are effective on the day following final 105.15 enactment. 105.16 ARTICLE 10 105.17 PERA LOCAL CORRECTIONAL RETIREMENT 105.18 PLAN MODIFICATIONS 105.19 Section 1. Minnesota Statutes 1999 Supplement, section 105.20 353E.02, is amended to read: 105.21 353E.02 [CORRECTIONAL SERVICEEMPLOYEESRETIREMENT PLAN 105.22 MEMBERSHIP.] 105.23 Subdivision 1. [RETIREMENT COVERAGE.] Local government 105.24 correctional service employees are members of the local 105.25 government correctional service retirement plan established by 105.26 this chapter. 105.27 Subd. 2. [LOCAL GOVERNMENT CORRECTIONAL SERVICE EMPLOYEE.] 105.28 (a) A local government correctional service employee, for 105.29 purposes of subdivision 1, is a personwhowhom the employer 105.30 certifies: 105.31 (1) is employed in acounty-administered jail or105.32correctional facility or in a regional correctional facility105.33administered by multiple countiescounty correctional 105.34 institution as a correctional guard or officer, a joint 105.35 jailer/dispatcher, or as a supervisor of correctional guards or 105.36 officers or of joint jailers/dispatchers; 106.1 (2)spends at least 95 percent of the employee's working106.2time in direct contact with persons confined in the jail or106.3facility, as certified in writing, in advance, by the employer106.4to the executive director of the associationis directly 106.5 responsible for the direct security, custody, and control of the 106.6 county correctional institution and its inmates; 106.7 (3) is expected to respond to incidents within the county 106.8 correctional institution as part of the person's regular 106.9 employment duties and is trained to do so; and 106.10(3)(4) is a "public employee" as defined in section 106.11 353.01, but is not a member of the public employees police and 106.12 fire fund. 106.13 (b) The certification required under paragraph (a) must be 106.14 made in writing on a form prescribed by the executive director 106.15 of the public employees retirement association. 106.16 (c) A person who was a member of the local government 106.17 correctional service retirement plan on the day before the 106.18 effective date of this section remains a member of the plan 106.19 after the effective date of this section for the duration of the 106.20 person's employment in that county correctional institution 106.21 position, even if the person's service in this position does not 106.22 meet the requirements set forth in paragraph (a). 106.23 Subd. 3. [COUNTY CORRECTIONAL INSTITUTION.] A county 106.24 correctional institution is: 106.25 (1) a jail administered by a county; 106.26 (2) a correctional facility administered by a county; or 106.27 (3) a regional correctional facility administered by or on 106.28 behalf of multiple counties. 106.29 Sec. 2. Minnesota Statutes 1999 Supplement, section 106.30 353E.03, is amended to read: 106.31 353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.] 106.32 Subdivision 1. [MEMBER CONTRIBUTIONS.] A local government 106.33 correctional service employee shall make an employee 106.34 contribution in an amount equal to5.836.01 percent of salary. 106.35 Subd. 2. [EMPLOYER CONTRIBUTIONS.] The employer shall 106.36 contribute for a local government correctional service employee 107.1 an amount equal to8.759.02 percent of salary. 107.2 Sec. 3. [EFFECTIVE DATE.] 107.3 Section 1 is effective on the day following final enactment. 107.4 Section 2 is effective on the first day of the first full pay 107.5 period beginning after January 1, 2002. 107.6 ARTICLE 11 107.7 TEACHER RETIREMENT AND 107.8 RELATED CHANGES 107.9 Section 1. Minnesota Statutes 1998, section 122A.46, 107.10 subdivision 1, is amended to read: 107.11 Subdivision 1. [TEACHERS DEFINED.] As used in this 107.12 section, the term "teachers" shall have the meaning given it in 107.13 section 122A.15, subdivision 1. The term "teachers" shall also 107.14 include any teacher in the classifications included in the 107.15 professional state residential instructional unit, pursuant to 107.16 section 179A.10, subdivision 2, clause (16). 107.17 Sec. 2. Minnesota Statutes 1998, section 122A.46, is 107.18 amended by adding a subdivision to read: 107.19 Subd. 1a. [APPOINTING AUTHORITY.] For purposes of teachers 107.20 included in the professional state residential instructional 107.21 unit, the term "school board" shall include the appointing 107.22 authority as defined in section 43A.02, subdivision 5. 107.23 Sec. 3. Minnesota Statutes 1999 Supplement, section 107.24 354.536, subdivision 1, is amended to read: 107.25 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A 107.26 teacher who has at least three years of allowable service credit 107.27 with the teachers retirement association is entitled to purchase 107.28 up to ten years of allowable and formula service credit for 107.29 non-profit community-based corporation, private, or parochial 107.30 school teaching service by making payment under section 356.55, 107.31 provided that the teacher is not entitled to receive a current 107.32 or deferred age and service retirement annuity or disability 107.33 benefit from the applicable employer-sponsored pension plan and 107.34 has not purchased service credit from the applicable defined 107.35 benefit employer-sponsored pension plan for that service. 107.36 Sec. 4. Minnesota Statutes 1999 Supplement, section 108.1 354A.101, subdivision 1, is amended to read: 108.2 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A 108.3 teacher who has at least three years of allowable service credit 108.4 with the teachers retirement fund association is entitled to 108.5 purchase up to ten years of allowable service credit 108.6 for non-profit community-based corporation, private, or 108.7 parochial school teaching service by making payment under 108.8 section 356.55, provided that the teacher is not entitled to 108.9 receive a current or deferred age and service retirement annuity 108.10 or disability benefit from the applicable employer-sponsored 108.11 pension plan and has not purchased service credit from the 108.12 applicable defined benefit employer-sponsored pension plan for 108.13 that service. 108.14 Sec. 5. [354A.051] [MTRFA COVERAGE FOR UNION BUSINESS 108.15 AGENTS.] 108.16 Subdivision 1. [AUTHORIZATION.] A member of the 108.17 Minneapolis teachers retirement fund association on a leave of 108.18 absence from a teaching position with special school district 108.19 No. 1, and who is employed by an employee organization 108.20 representing Minneapolis teachers retirement fund association 108.21 active members, may elect under subdivision 2 to be a member of 108.22 the coordinated program of the association for service with that 108.23 employee organization, subject to the limitations specified in 108.24 subdivisions 3, 4, and 5. 108.25 Subd. 2. [ELECTION.] Except as indicated in subdivision 3, 108.26 a person described in subdivision 1 must be covered by the 108.27 Minneapolis teachers retirement fund association coordinated 108.28 program for employment with the employer organization if the 108.29 person files a written election to be covered with the executive 108.30 director of the teachers retirement fund association within 90 108.31 days of first being employed by the employee organization, or 108.32 within 90 days of the start of the first leave of absence due to 108.33 service as an employee organization business agent, whichever is 108.34 later. 108.35 Subd. 3. [WAIVER OF LEAVE COVERAGE.] Coverage under this 108.36 section does not apply to any leave period or portion of a leave 109.1 period for which a person has received service credit or is 109.2 eligible to receive service credit for the leave period under 109.3 any leave of absence provision in chapter 354A, any other 109.4 applicable law, or bylaws or articles of incorporation of the 109.5 association. The person may waive eligibility to receive 109.6 service credit under a leave of absence provision and be covered 109.7 by this section for the applicable period by filing a waiver 109.8 with the executive director within 90 days of the start of the 109.9 leave. 109.10 Subd. 4. [COVERED SALARY LIMITATION.] The covered salary 109.11 for an employee of the employee organization covered by the 109.12 coordinated program of the Minneapolis teachers retirement fund 109.13 association under this section is limited to the lesser of: 109.14 (1) the person's actual salary from the employee 109.15 organization as defined in section 354A.011, subdivision 24; or 109.16 (2) 75 percent of the salary of the governor as set under 109.17 section 15A.082. 109.18 The limited covered salary determined under this 109.19 paragraph must be used in determining member, employer, and 109.20 employer additional contributions under section 354A.12, and in 109.21 determining annuities and other benefits under sections 354A.30 109.22 to 354A.41 and chapter 356. 109.23 Subd. 5. [ANNUITY RECEIPT REQUIREMENTS.] A retirement 109.24 annuity is only payable from the coordinated program of the 109.25 Minneapolis teachers retirement fund association to a person 109.26 described in subdivision 1 if the person has met all applicable 109.27 requirements, including the termination by the person from 109.28 employment by the employee organization and by the school 109.29 district. The reemployed annuitant earnings limitation in 109.30 section 354A.31, subdivision 3, applies if the person retires 109.31 and is subsequently reemployed while an annuitant by the 109.32 employee organization or by any other entity employing persons 109.33 who are members of the applicable teachers retirement fund 109.34 association by virtue of that employment. 109.35 Subd. 6. [CONTRIBUTION REQUIREMENTS.] The member, 109.36 employer, and employer additional contributions required by 110.1 section 354A.12 are the obligation of the person who elects 110.2 coverage by the coordinated program of the Minneapolis teachers 110.3 retirement fund association, but the employee organization may 110.4 pay the employer and employer additional contributions. 110.5 Contributions made by the person must be made by salary 110.6 deduction. Contributions made by the employee organization must 110.7 be made as provided in section 354A.12. 110.8 Subd. 7. [BOARD INELIGIBILITY.] A person employed by an 110.9 employee organization who retains active membership in the 110.10 applicable teachers retirement fund association is not eligible 110.11 for election to the board of trustees of the applicable teachers 110.12 retirement fund association. 110.13 Sec. 6. [ELECTION OF COVERAGE BY EMPLOYEE OF EMPLOYEE 110.14 ORGANIZATION REPRESENTING MINNEAPOLIS TEACHERS RETIREMENT FUND 110.15 ASSOCIATION ACTIVE MEMBERS.] 110.16 Subdivision 1. [ELIGIBILITY ELECTION.] Notwithstanding 110.17 election date requirements in section 5, subdivision 2, a person 110.18 who is currently employed as a business agent by an employee 110.19 organization representing Minneapolis teachers retirement fund 110.20 association active members and who has been on a mobility leave 110.21 or leaves from special school district No. 1 since March 23, 110.22 1998, may make a written election to be covered under section 5. 110.23 To be valid, that written election must be on a form specified 110.24 by the executive director of the Minneapolis teachers retirement 110.25 fund association and be filed with the executive director within 110.26 90 days following the effective date of this section. 110.27 Subd. 2. [PAYMENT REQUIREMENTS.] If a valid election is 110.28 made under subdivision 1, an eligible individual under 110.29 subdivision 1 is required to pay, in a lump sum within 90 days 110.30 of the effective date of this section, any additional employee, 110.31 employer, and employer additional contributions based on the 110.32 eligible individual's salary and employment with the employee 110.33 organization, as required by the election, compared to amounts 110.34 previously paid or payable. These amounts are in addition to 110.35 any amounts previously payable. The additional contribution 110.36 requirements are to be computed from March 23, 1998, to the date 111.1 payroll deductions are first made on the high contribution 111.2 requirements. The lump sum payment under this subdivision must 111.3 include 8.5 percent annual interest. The amounts required under 111.4 this subdivision are the obligation of the eligible individual, 111.5 but the employee organization may pay the additional employer 111.6 and employer additional amounts with applicable interest. 111.7 Subd. 3. [SALARY CREDIT GRANT.] The additional salary 111.8 credit is to be granted to the account of the eligible 111.9 individual upon payment of amounts required under the section. 111.10 Sec. 7. [EFFECTIVE DATE.] 111.11 Sections 1 to 6 are effective on the day following final 111.12 enactment. 111.13 ARTICLE 12 111.14 MNSCU PENSION COVERAGE 111.15 AND RELATED CHANGES 111.16 Section 1. Minnesota Statutes 1998, section 136F.45, 111.17 subdivision 1a, is amended to read: 111.18 Subd. 1a. [SUBSEQUENT VENDOR CONTRACTS.] (a) The board may 111.19 limit the number of vendors under subdivision 1. 111.20 (b) In addition to any other tax-sheltered annuity program 111.21 investment options, the board may offer as an investment option 111.22 the Minnesota supplemental investment fund administered by the 111.23 state board of investment under section 11A.17. 111.24 (c) For the tax-sheltered annuity program vendor contracts 111.25to beexecutedfor the period beginningafter July 1, 2000, the 111.26 board shall actively solicit participation of and shall include 111.27 as vendors lower expense and "no-load" mutual funds or 111.28 equivalent investment products as those terms are defined by the 111.29 federal securities and exchange commission. To the extent 111.30 possible, in addition to a range of insurance annuity contract 111.31 providers and other mutual fund provider arrangements, the board 111.32 must assure that no less than five insurance annuity providers 111.33 and no less than one nor more than three lower expense and 111.34 "no-load" mutual funds or equivalent investment products will be 111.35 made available for direct-access by employee participants. To 111.36 the extent that offering a lower expense "no-load" product 112.1 increases the total necessary and reasonable expenses of the 112.2 program and if the board is unable to negotiate a rebate of fees 112.3 from the mutual fund or equivalent investment product providers, 112.4 the board may charge the participants utilizing the lower 112.5 expense "no-load" mutual fund products a fee to cover those 112.6 expenses. The participant fee may not exceed one percent of the 112.7 participant's annual contributions or $20 per participant per 112.8 year, whichever is greater. Any excess fee revenue generated 112.9 under this subdivision must be reimbursed to participant 112.10 accounts in the manner provided in subdivision 3a. 112.11 Sec. 2. [354.539] [USE OF COLLEGE SUPPLEMENTAL RETIREMENT 112.12 FUNDS TO PURCHASE SERVICE CREDIT.] 112.13 (a) Unless prohibited by or subject to a penalty under 112.14 federal law, a teacher who is a participant in the college 112.15 supplemental retirement plan established under chapter 354C may 112.16 utilize the teacher's supplemental plan account to purchase 112.17 service credit under sections 354.53, 354.533, 354.534, 354.535, 112.18 354.536, 354.537, and 354.538. 112.19 (b) At the request of a member, if determined by the 112.20 executive director to be eligible to purchase service credit, 112.21 the executive director shall notify the board of the Minnesota 112.22 state colleges and universities system of the cost of the 112.23 purchase and shall request the transfer of funds from the 112.24 member's college supplemental retirement account to the teachers 112.25 retirement association. Upon receipt of the full prior service 112.26 credit purchase payment amount, the teachers retirement 112.27 association shall grant the requested allowable and formula 112.28 service credit. 112.29 Sec. 3. [354A.106] [USE OF COLLEGE SUPPLEMENTAL RETIREMENT 112.30 FUNDS TO PURCHASE SERVICE CREDIT.] 112.31 (a) Unless prohibited by or subject to a penalty under 112.32 federal law, a teacher who is a participant in the college 112.33 supplemental retirement plan established under chapter 354C may 112.34 utilize the teacher's supplemental plan account to purchase 112.35 service credit under sections 354A.097, 354A.098, 354A.099, 112.36 354A.101, 354A.102, 354A.103, and 354A.104. 113.1 (b) At the request of a member, if determined by the 113.2 executive director of the applicable teachers retirement fund 113.3 association to be eligible to purchase service credit, the 113.4 executive director shall notify the board of the Minnesota state 113.5 colleges and universities system of the cost of the purchase and 113.6 shall request the transfer of funds from the member's college 113.7 supplemental retirement account to the applicable teachers 113.8 retirement fund association. Upon receipt of the full prior 113.9 service credit purchase payment amount, the applicable teachers 113.10 retirement fund association shall grant the requested allowable 113.11 and formula service credit. 113.12 Sec. 4. Minnesota Statutes 1998, section 354B.23, 113.13 subdivision 5a, is amended to read: 113.14 Subd. 5a. [EXCESS CONTRIBUTIONS.](a)When contributions 113.15 to the plan exceed limits imposed by federal law or 113.16 regulationand it is necessary to return contributions to comply113.17with the federal limits, the excess employee contributions must 113.18 be returned to the employee andtothe excess employerin the113.19same proportions as the contributions were madecontributions 113.20 must be reallocated in accordance with section 415 of the 113.21 Internal Revenue Code, as amended, and the applicable federal 113.22 regulations and revenue rulings. 113.23(b) When an employer contribution required under section113.24354B.24 due to a sabbatical leave is made after completion of113.25the leave or an employer contribution is made due to omitted113.26deductions under subdivision 5, and these employer contributions113.27cause or would cause total contributions to the plan to exceed113.28limits imposed by federal law or regulation, the employer must113.29make that portion of the contribution that would exceed the113.30federal limit during the next calendar year.113.31 Sec. 5. Minnesota Statutes 1998, section 354C.12, 113.32 subdivision 1a, is amended to read: 113.33 Subd. 1a. [EXCESS CONTRIBUTIONS.](a)When contributions 113.34 to the plan exceed limits imposed by federal law or 113.35 regulationand it is necessary to return contributions to comply113.36with the federal limits, one-half of the excess contributions114.1must be returned tothe excess employee contributions must be 114.2 returned to the employee andone-half tothe excess employer 114.3 contributions must be reallocated in accordance with section 415 114.4 of the federal Internal Revenue Code, as amended, and the 114.5 applicable federal regulations and revenue rulings. 114.6(b) When an employer contribution is made due to omitted114.7deductions under subdivision 2, and these employer contributions114.8cause or would cause total contributions to the plan to exceed114.9limits imposed by federal law or regulation, the employer must114.10make that portion of the contribution that would exceed the114.11federal limit during the next calendar year.114.12 Sec. 6. Minnesota Statutes 1998, section 354C.165, is 114.13 amended to read: 114.14 354C.165 [PROHIBITION ON LOANS OR PRETERMINATION 114.15 DISTRIBUTIONS.] 114.16 (a) Except as provided in paragraph (c), no participant may 114.17 obtain a loanfrom the planorobtainany distribution from the 114.18 planat a timebefore the participant terminates the employment 114.19 that gave rise to plan coverage. 114.20 (b) No amounts to the credit of the plan are assignable 114.21 either in law or in equity, are subject to state estate tax, or 114.22 are subject to execution, levy, attachment, garnishment, or 114.23 other legal process, except as provided in section 518.58, 114.24 518.581, or 518.6111. 114.25 (c) Unless prohibited by or subject to a penalty under 114.26 federal law, a teacher who is a participant in the supplemental 114.27 retirement plan may request, in writing, a transfer of all or a 114.28 portion of the funds accumulated in the person's supplemental 114.29 plan account to the teachers retirement association to purchase 114.30 service credit under sections 354.53, 354.533, 354.534, 354.535, 114.31 354.536, 354.537, and 354.538 or to the teachers retirement fund 114.32 association to purchase service credit under sections 354A.097, 114.33 354A.098, 354A.099, 354A.101, 354A.102, 354A.103, and 354A.104. 114.34 Upon receipt of a valid request, the board shall execute the 114.35 transfer. The transfer must be a fund-to-fund transfer, and in 114.36 no event shall the participant directly receive any of the funds 115.1 while still employed by the board. In no event may the board 115.2 transfer more than the participant's account balance. The 115.3 board, in cooperation with the teachers retirement association, 115.4 shall develop the forms for requesting a transfer and the 115.5 procedures for executing the requested transfers. 115.6 Sec. 7. Minnesota Statutes 1999 Supplement, section 115.7 356.24, subdivision 1, is amended to read: 115.8 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 115.9 for a school district or other governmental subdivision or state 115.10 agency to levy taxes for, or contribute public funds to a 115.11 supplemental pension or deferred compensation plan that is 115.12 established, maintained, and operated in addition to a primary 115.13 pension program for the benefit of the governmental subdivision 115.14 employees other than: 115.15 (1) to a supplemental pension plan that was established, 115.16 maintained, and operated before May 6, 1971; 115.17 (2) to a plan that provides solely for group health, 115.18 hospital, disability, or death benefits; 115.19 (3) to the individual retirement account plan established 115.20 by chapter 354B; 115.21 (4) to a plan that provides solely for severance pay under 115.22 section 465.72 to a retiring or terminating employee; 115.23 (5) for employees other than personnel employed by the 115.24 state university board or the community college board and 115.25 covered by the board of trustees of the Minnesota state colleges 115.26 and universities supplemental retirement plan under chapter 115.27 354C, if provided for in a personnel policy of the public 115.28 employer or in the collective bargaining agreement between the 115.29 public employer and the exclusive representative of public 115.30 employees in an appropriate unit, in an amount matching employee 115.31 contributions on a dollar for dollar basis, but not to exceed an 115.32 employer contribution of $2,000 a year per employee; 115.33 (i) to the state of Minnesota deferred compensation plan 115.34 under section 352.96; or 115.35 (ii) in payment of the applicable portion of the premium on 115.36 a tax-sheltered annuity contract qualified under section 403(b) 116.1 of the Internal Revenue Code, if purchased from a qualified 116.2 insurance company, or to a qualified investment entity, as 116.3 defined in subdivision 1a, and, in either case, if the employing 116.4 unit has complied with any applicable pension plan provisions of 116.5 the Internal Revenue Code with respect to the tax-sheltered 116.6 annuity program during the preceding calendar year; or 116.7 (6) for personnel employed by the state university board or 116.8 the community college board and not covered by clause (5), to 116.9 the supplemental retirement plan under chapter 354C, if provided 116.10 for in a personnel policy or in the collective bargaining 116.11 agreement of the public employer with the exclusive 116.12 representative of the covered employees in an appropriate unit, 116.13 in an amount matching employee contributions on a dollar for 116.14 dollar basis, but not to exceed an employer contribution of 116.15$2,000$2,700 a year for each employee. 116.16 Sec. 8. Minnesota Statutes 1998, section 356A.01, 116.17 subdivision 8, is amended to read: 116.18 Subd. 8. [COVERED PENSION PLAN.] "Covered pension plan" 116.19 means a pension plan or fund listed in section 356.20, 116.20 subdivision 2, or section 356.30, subdivision 3, or a plan 116.21 established under chapter 353D, 354B, 354C, or 354D. 116.22 Sec. 9. Minnesota Statutes 1998, section 356A.02, is 116.23 amended to read: 116.24 356A.02 [FIDUCIARY STATUS AND ACTIVITIES.] 116.25 Subdivision 1. [FIDUCIARY STATUS.] For purposes of this 116.26 chapter, the following persons are fiduciaries: 116.27 (1) any member of the governing board of a covered pension 116.28 plan; 116.29 (2) the chief administrative officer of a covered pension 116.30 plan or of the state board of investment; 116.31 (3) any member of the state board of investment;and116.32 (4) any member of the investment advisory council; and 116.33 (5) any member of the advisory committee established under 116.34 section 354B.25. 116.35 Subd. 2. [FIDUCIARY ACTIVITY.] The activities of a 116.36 fiduciary identified in subdivision 1 that must be carried out 117.1 in accordance with the requirements of section 356A.04 include, 117.2 but are not limited to: 117.3 (1) the investment and reinvestment of plan assets; 117.4 (2) the determination of benefits; 117.5 (3) the determination of eligibility for membership or 117.6 benefits; 117.7 (4) the determination of the amount or duration of 117.8 benefits; 117.9 (5) the determination of funding requirements or the 117.10 amounts of contributions; 117.11 (6) the maintenance of membership or financial records;and117.12 (7) the expenditure of plan assets; and 117.13 (8) the selection of financial institutions and investment 117.14 products. 117.15 Sec. 10. Minnesota Statutes 1998, section 356A.06, is 117.16 amended by adding a subdivision to read: 117.17 Subd. 10. [DEFINED CONTRIBUTION PLANS; APPLICATION.] (a) 117.18 To the extent that a plan governed by chapter 352D, 353D, 354B, 117.19 354C, or 354D permits a participant or beneficiary to select 117.20 among investment products for the person's account and the 117.21 participant or beneficiary exercises that investment 117.22 self-direction, no fiduciary is liable for any loss which may 117.23 result from the participant's or beneficiary's exercise of that 117.24 investment self-direction. 117.25 (b) Subdivisions 1, 2, 6, 8, and 8a do not apply to plans 117.26 governed by chapter 354B or 354C. 117.27 Sec. 11. [VENDOR CONTRACT EXTENSION OPTION.] 117.28 Notwithstanding Minnesota Statutes, section 136F.45, 117.29 subdivision 1a, paragraph (c), the board of trustees of the 117.30 Minnesota state colleges and universities may, with the 117.31 agreement of the parties involved, extend the vendor contracts 117.32 in effect immediately before July 1, 2000, with any revisions 117.33 that are mutually agreeable to the parties, for up to an 117.34 additional two years duration. 117.35 Sec. 12. [EFFECTIVE DATE.] 117.36 Sections 1 to 11 are effective on the day following final 118.1 enactment. 118.2 (b) Sections 2, 3, and 6, paragraph (c), expire on May 16, 118.3 2002. 118.4 ARTICLE 13 118.5 EMPLOYER MATCHING CONTRIBUTION 118.6 TAX SHELTERED ANNUITY CHANGES 118.7 Section 1. Minnesota Statutes 1999 Supplement, section 118.8 356.24, subdivision 1, is amended to read: 118.9 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 118.10 for a school district or other governmental subdivision or state 118.11 agency to levy taxes for, or contribute public funds to a 118.12 supplemental pension or deferred compensation plan that is 118.13 established, maintained, and operated in addition to a primary 118.14 pension program for the benefit of the governmental subdivision 118.15 employees other than: 118.16 (1) to a supplemental pension plan that was established, 118.17 maintained, and operated before May 6, 1971; 118.18 (2) to a plan that provides solely for group health, 118.19 hospital, disability, or death benefits; 118.20 (3) to the individual retirement account plan established 118.21 by chapter 354B; 118.22 (4) to a plan that provides solely for severance pay under 118.23 section 465.72 to a retiring or terminating employee; 118.24 (5) for employees other than personnel employed by the 118.25 state university board or the community college board and 118.26 covered by the board of trustees of the Minnesota state colleges 118.27 and universities supplemental retirement plan under chapter 118.28 354C, if provided for in a personnel policy of the public 118.29 employer or in the collective bargaining agreement between the 118.30 public employer and the exclusive representative of public 118.31 employees in an appropriate unit, in an amount matching employee 118.32 contributions on a dollar for dollar basis, but not to exceed an 118.33 employer contribution of $2,000 a year per employee; 118.34 (i) to the state of Minnesota deferred compensation plan 118.35 under section 352.96; or 118.36 (ii) in payment of the applicable portion of thepremium on119.1a tax-sheltered annuity contract qualifiedcontribution made to 119.2 any investment eligible under section 403(b) of the Internal 119.3 Revenue Code, ifpurchased from a qualified insurance company,119.4or to a qualified investment entity, as defined in subdivision119.51a, and, in either case, ifthe employing unit has complied with 119.6 any applicable pension plan provisions of the Internal Revenue 119.7 Code with respect to the tax-sheltered annuity program during 119.8 the preceding calendar year; or 119.9 (6) for personnel employed by the state university board or 119.10 the community college board and not covered by clause (5), to 119.11 the supplemental retirement plan under chapter 354C, if provided 119.12 for in a personnel policy or in the collective bargaining 119.13 agreement of the public employer with the exclusive 119.14 representative of the covered employees in an appropriate unit, 119.15 in an amount matching employee contributions on a dollar for 119.16 dollar basis, but not to exceed an employer contribution of 119.17 $2,000 a year for each employee. 119.18 Sec. 2. Minnesota Statutes 1999 Supplement, section 119.19 356.24, subdivision 1b, is amended to read: 119.20 Subd. 1b. [VENDOR RESTRICTIONS.]A personnel policy for119.21unrepresented employees or a collective bargaining agreementA 119.22 school board may establish limits on the number of vendorsunder119.23subdivision 1that it will utilize and conditions under which 119.24 the vendors may contact employees both during working hours and 119.25 after working hours. 119.26 Sec. 3. Minnesota Statutes 1998, section 356.24, is 119.27 amended by adding a subdivision to read: 119.28 Subd. 1c. [STATE BOARD OF INVESTMENT REVIEW.] Any 119.29 insurance company, mutual fund company, or similar company 119.30 providing investments eligible under section 403(b) of the 119.31 Internal Revenue Code and eligible to receive employer 119.32 contributions under this section may request the state board of 119.33 investment, in conjunction with the department of commerce, to 119.34 review the financial standing of the company, the 119.35 competitiveness of its investment options and returns, and the 119.36 level of all charges and fees impacting those returns. The 120.1 state board of investment shall establish standards, policies, 120.2 and procedures under section 11A.04, clause (2), to implement 120.3 this subdivision. The state board of investment may establish a 120.4 fee for each review. The state board of investment must 120.5 maintain and have available a list of all reviewed companies 120.6 which meet the established standards. 120.7 Sec. 4. [REPEALER.] 120.8 Minnesota Statutes 1999 Supplement, section 356.24, 120.9 subdivision 1a, is repealed. 120.10 Sec. 5. [EFFECTIVE DATE.] 120.11 Sections 1 to 4 are effective on the day following final 120.12 enactment. 120.13 ARTICLE 14 120.14 RETIREMENT GENERALLY 120.15 Section 1. [REPEALER.] 120.16 Minnesota Statutes 1999 Supplement, section 356.61, is 120.17 repealed. 120.18 Sec. 2. [EFFECTIVE DATE.] 120.19 Section 1 is effective retroactively to July 1, 1999. 120.20 ARTICLE 15 120.21 VOLUNTEER FIREFIGHTER RELIEF 120.22 ASSOCIATION CHANGES 120.23 Section 1. Minnesota Statutes 1999 Supplement, section 120.24 69.021, subdivision 7, is amended to read: 120.25 Subd. 7. [APPORTIONMENT OF FIRE STATE AID TO 120.26 MUNICIPALITIES AND RELIEF ASSOCIATIONS.] (a) The commissioner 120.27 shall apportion the fire state aid relative to the premiums 120.28 reported on the Minnesota Firetown Premium Reports filed under 120.29 this chapter to each municipality and/or firefighters' relief 120.30 association. 120.31 (b) The commissioner shall calculate an initial fire state 120.32 aid allocation amount for each municipality or fire department 120.33 under paragraph (c) and a minimum fire state aid allocation 120.34 amount for each municipality or fire department under paragraph 120.35 (d). The municipality or fire department must receive the 120.36 larger fire state aid amount. 121.1 (c) The initial fire state aid allocation amount is the 121.2 amount available for apportionment as fire state aid under 121.3 subdivision 5, without inclusion of any additional funding 121.4 amount to support a minimum fire state aid amount under section 121.5 423A.02, subdivision 3, allocated one-half in proportion to the 121.6 population as shown in the last official statewide federal 121.7 census for each fire town and one-half in proportion to the 121.8 market value of each fire town, including (1) the market value 121.9 of tax exempt property and (2) the market value of natural 121.10 resources lands receiving in lieu payments under sections 121.11 477A.11 to 477A.14, but excluding the market value of minerals. 121.12 In the case of incorporated or municipal fire departments 121.13 furnishing fire protection to other cities, towns, or townships 121.14 as evidenced by valid fire service contracts filed with the 121.15 commissioner, the distribution must be adjusted proportionately 121.16 to take into consideration the crossover fire protection 121.17 service. Necessary adjustments shall be made to subsequent 121.18 apportionments. In the case of municipalities or independent 121.19 fire departments qualifying for the aid, the commissioner shall 121.20 calculate the state aid for the municipality or relief 121.21 association on the basis of the population and the market value 121.22 of the area furnished fire protection service by the fire 121.23 department as evidenced by duly executed and valid fire service 121.24 agreements filed with the commissioner. If one or more fire 121.25 departments are furnishing contracted fire service to a city, 121.26 town, or township, only the population and market value of the 121.27 area served by each fire department may be considered in 121.28 calculating the state aid and the fire departments furnishing 121.29 service shall enter into an agreement apportioning among 121.30 themselves the percent of the population and the market value of 121.31 each service area. The agreement must be in writing and must be 121.32 filed with the commissioner. 121.33 (d) The minimum fire state aid allocation amount is the 121.34 amount in addition to the initial fire state allocation amount 121.35 that is derived from any additional funding amount to support a 121.36 minimum fire state aid amount under section 423A.02, subdivision 122.1 3, and allocated to municipalities with volunteer firefighter 122.2 relief associations based on the number of active volunteer 122.3 firefighters who are members of the relief association as 122.4 reported in the annual financial reporting for the calendar year 122.5 1993 to the office of the state auditor, but not to exceed 30 122.6 active volunteer firefighters, so that all municipalities or 122.7 fire departments with volunteer firefighter relief associations 122.8 receive in total at least a minimum fire state aid amount per 122.9 1993 active volunteer firefighter to a maximum of 30 122.10 firefighters. If a relief associationdid not exist inis 122.11 established after calendar year 1993 and before calendar year 122.12 2000, the number of active volunteer firefighters who are 122.13 members of the relief association as reported in the annual 122.14 financial reporting for calendar year 1998 to the office of the 122.15 state auditor, but not to exceed 30 active volunteer 122.16 firefighters, shall be used in this determination. If a relief 122.17 association is established after calendar year 1999, the number 122.18 of active volunteer firefighters who are members of the relief 122.19 association as reported in the first annual financial reporting 122.20 submitted to the office of the state auditor, but not to exceed 122.21 20 active volunteer firefighters, must be used in this 122.22 determination. 122.23 (e) The fire state aid must be paid to the treasurer of the 122.24 municipality where the fire department is located and the 122.25 treasurer of the municipality shall, within 30 days of receipt 122.26 of the fire state aid, transmit the aid to the relief 122.27 association if the relief association has filed a financial 122.28 report with the treasurer of the municipality and has met all 122.29 other statutory provisions pertaining to the aid apportionment. 122.30 (f) The commissioner may make rules to permit the 122.31 administration of the provisions of this section. 122.32 (g) Any adjustments needed to correct prior misallocations 122.33 must be made to subsequent apportionments. 122.34 Sec. 2. [69.041] [SHORTFALL FROM GENERAL FUND.] 122.35 (a) If the annual funding requirements of fire or police 122.36 relief associations or consolidation accounts under section 123.1 69.77, sections 69.771 to 69.775, or section 353A.09, exceed all 123.2 applicable revenue sources of a given year, including the 123.3 insurance premium taxes funding the applicable fire or police 123.4 state aid as set under section 60A.15, subdivision 1, paragraph 123.5 (e), clauses (1) to (3), the shortfall in the annual funding 123.6 requirements must be paid from the general fund to the extent 123.7 appropriated by the legislature. 123.8 (b) Nothing in this section may be deemed to relieve any 123.9 municipality from its obligation to a relief association or 123.10 consolidation account under law. 123.11 Sec. 3. Minnesota Statutes 1998, section 69.773, 123.12 subdivision 1, is amended to read: 123.13 Subdivision 1. [APPLICATION.] (a) This sectionshall apply123.14 applies to any firefighters' relief association specified in 123.15 section 69.771, subdivision 1, which pays or allows for an 123.16 option of a monthly service pension to a retiring firefighter 123.17 when at least the minimum requirements for entitlement to a 123.18 service pension specified in section 424A.02, any applicable 123.19 special legislation and the articles of incorporation or bylaws 123.20 of the relief association have been met. Each firefighters' 123.21 relief association to which this section applies shall determine 123.22 the actuarial condition and funding costs of the special fund of 123.23 the relief association in accordance with subdivisions 2 and 3, 123.24 the financial requirements of the special fund of the relief 123.25 association in accordance with subdivision 4 and the minimum 123.26 obligation of the municipality with respect to the special fund 123.27 of the relief association in accordance with subdivision 5. 123.28 (b) If a firefighters relief association that previously 123.29 provided a monthly benefit service pension discontinues that 123.30 practice and either replaces the monthly benefit amount with a 123.31 lump sum benefit amount consistent with section 424A.02, 123.32 subdivision 3, or purchases an annuity in the same amount as the 123.33 monthly benefit from an insurance company licensed to do 123.34 business in this state, the actuarial condition and funding 123.35 costs, financial, and minimum municipal obligation requirements 123.36 of section 69.772 apply rather than this section. 124.1 Sec. 4. Minnesota Statutes 1998, section 356A.06, 124.2 subdivision 4, is amended to read: 124.3 Subd. 4. [ECONOMIC INTEREST STATEMENT.] (a) Each member of 124.4 the governing board of a covered pension plan and the chief 124.5 administrative officer of the plan shall file with the plan a 124.6 statement of economic interest. 124.7 (b) For a covered pension plan other than a plan specified 124.8 in paragraph (c), the statement must contain the information 124.9 required by section 10A.09, subdivision 5, and any other 124.10 information that the fiduciary or the governing board of the 124.11 plan determines is necessary to disclose a reasonably 124.12 foreseeable potential or actual conflict of interest. 124.13 (c) For a covered pension plan governed by sections 69.771 124.14 to 69.776 or a covered pension plan governed by section 69.77 124.15 with assets under $8,000,000, the statement must contain the 124.16 following: 124.17 (1) the person's principal occupation and principal place 124.18 of business; 124.19 (2) whether or not the person has an ownership of or 124.20 interest of ten percent or greater in an investment security 124.21 brokerage business, a real estate sales business, an insurance 124.22 agency, a bank, a savings and loan, or another financial 124.23 institution; and 124.24 (3) any relationship or financial arrangement that can 124.25 reasonably be expected to give rise to a conflict of interest. 124.26 (d) The statement must be filed annually with the chief 124.27 administrative officer of the plan and be available for public 124.28 inspection during regular office hours at the office of the 124.29 pension plan. 124.30 (e) A disclosure form meeting the requirements of the 124.31 federal Investment Advisers Act of 1940, United States Code, 124.32 title 15, sections 80b-1 to 80b-21 as amended, and filed with 124.33 the state board of investment or the pension plan meets the 124.34 requirements of this subdivision. 124.35(f) The chief administrative officer of each covered124.36pension plan, by January 15, annually, shall transmit a copy of125.1all statements of economic interest received by the plan under125.2this subdivision during the preceding 12 months to the campaign125.3finance and public disclosure board.125.4 Sec. 5. Minnesota Statutes 1998, section 424A.001, 125.5 subdivision 9, is amended to read: 125.6 Subd. 9. [SEPARATE FROM ACTIVE SERVICE.] "Separate from 125.7 active service" means to permanently cease to perform fire 125.8 suppression duties with a particular volunteer fire department, 125.9 to permanently cease to perform fire prevention duties, 125.10 to permanently cease to supervise fire suppression duties, and 125.11 to permanently cease to supervise fire prevention duties. 125.12 Sec. 6. Minnesota Statutes 1998, section 424A.02, 125.13 subdivision 3, is amended to read: 125.14 Subd. 3. [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) On or 125.15 before August 1 of each year as part of the certification of the 125.16 financial requirements and minimum municipal obligation made 125.17 pursuant to section 69.772, subdivision 4, or 69.773, 125.18 subdivision 5, the secretary or some other official of the 125.19 relief association designated in the bylaws of each relief 125.20 association shall calculate and certify to the governing body of 125.21 the applicable qualified municipality the average amount of 125.22 available financing per active covered firefighter for the most 125.23 recent three-year period. The amount of available financing 125.24 shall include any amounts of fire state aid received or 125.25 receivable by the relief association, any amounts of municipal 125.26 contributions to the relief association raised from levies on 125.27 real estate or from other available revenue sources exclusive of 125.28 fire state aid, and one-tenth of the amount of assets in excess 125.29 of the accrued liabilities of the relief association calculated 125.30 pursuant to sections 69.772, subdivision 2; 69.773, subdivisions 125.31 2 and 4; or 69.774, subdivision 2, if any. 125.32 (b) The maximum service pension which the relief 125.33 association has authority to provide for in its bylaws for 125.34 payment to a member retiring after the calculation date when the 125.35 minimum age and service requirements specified in subdivision 1 125.36 are met must be determined using the table in paragraph (c) or 126.1 (d), whichever applies. 126.2 (c) For a relief association where the governing bylaws 126.3 provide for a monthly service pension to a retiring member, the 126.4 maximum monthly service pension amount per month for each year 126.5 of service credited that may be provided for in the bylaws is 126.6 the maximum service pension figure corresponding to the average 126.7 amount of available financing per active covered firefighter: 126.8 Minimum Average Amount of Maximum Service Pension 126.9 Available Financing per Amount Payable per Month 126.10 Firefighter for Each Year of Service 126.11 $... $ .25 126.12 42 .50 126.13 84 1.00 126.14 126 1.50 126.15 168 2.00 126.16 209 2.50 126.17 252 3.00 126.18 294 3.50 126.19 335 4.00 126.20 378 4.50 126.21 420 5.00 126.22 503 6.00 126.23 587 7.00 126.24 672 8.00 126.25 755 9.00 126.26 839 10.00 126.27 923 11.00 126.28 1007 12.00 126.29 1090 13.00 126.30 1175 14.00 126.31 1259 15.00 126.32 1342 16.00 126.33 1427 17.00 126.34 1510 18.00 126.35 1594 19.00 126.36 1677 20.00 127.1 1762 21.00 127.2 1845 22.00 127.3 1888 22.50 127.4 1929 23.00 127.5 2014 24.00 127.6 2098 25.00 127.7 2183 26.00 127.8 2267 27.00 127.9 2351 28.00 127.10 2436 29.00 127.11 2520 30.00 127.12 2604 31.00 127.13 2689 32.00 127.14 2773 33.00 127.15 2857 34.00 127.16 2942 35.00 127.17 3026 36.00 127.18 3110 37.00 127.19 3963 38.00 127.20 4047 39.00 127.21 4137 40.00 127.22any amount more than 413740.00127.23 Effective beginning December 31, 2000: 127.24 4227 41.00 127.25 4317 42.00 127.26 4407 43.00 127.27 4497 44.00 127.28 Effective beginning December 31, 2001: 127.29 4587 45.00 127.30 4677 46.00 127.31 4767 47.00 127.32 4857 48.00 127.33 Effective beginning December 31, 2002: 127.34 4947 49.00 127.35 5037 50.00 127.36 5127 51.00 128.1 5217 52.00 128.2 Effective beginning December 31, 2003: 128.3 5307 53.00 128.4 5397 54.00 128.5 5487 55.00 128.6 5577 56.00 128.7 (d) For a relief association in which the governing bylaws 128.8 provide for a lump sum service pension to a retiring member, the 128.9 maximum lump sum service pension amount for each year of service 128.10 credited that may be provided for in the bylaws is the maximum 128.11 service pension figure corresponding to the average amount of 128.12 available financing per active covered firefighter for the 128.13 applicable specified period: 128.14 Minimum Average Amount Maximum Lump Sum Service 128.15 of Available Financing Pension Amount Payable 128.16 per Firefighter for Each Year of Service 128.17 $.. $10 128.18 11 20 128.19 16 30 128.20 23 40 128.21 27 50 128.22 32 60 128.23 43 80 128.24 54 100 128.25 65 120 128.26 77 140 128.27 86 160 128.28 97 180 128.29 108 200 128.30 131 240 128.31 151 280 128.32 173 320 128.33 194 360 128.34 216 400 128.35 239 440 128.36 259 480 129.1 281 520 129.2 302 560 129.3 324 600 129.4 347 640 129.5 367 680 129.6 389 720 129.7 410 760 129.8 432 800 129.9 486 900 129.10 540 1000 129.11 594 1100 129.12 648 1200 129.13 702 1300 129.14 756 1400 129.15 810 1500 129.16 864 1600 129.17 918 1700 129.18 972 1800 129.19 1026 1900 129.20 1080 2000 129.21 1134 2100 129.22 1188 2200 129.23 1242 2300 129.24 1296 2400 129.25 1350 2500 129.26 1404 2600 129.27 1458 2700 129.28 1512 2800 129.29 1566 2900 129.30 1620 3000 129.31 1672 3100 129.32 1726 3200 129.33 1753 3250 129.34 1780 3300 129.35 1820 3375 129.36 1834 3400 130.1 1888 3500 130.2 1942 3600 130.3 1996 3700 130.4 2023 3750 130.5 2050 3800 130.6 2104 3900 130.7 2158 4000 130.8 2212 4100 130.9 2265 4200 130.10 2319 4300 130.11 2373 4400 130.12 2427 4500 130.13 2481 4600 130.14 2535 4700 130.15 2589 4800 130.16 2643 4900 130.17 2697 5000 130.18 2751 5100 130.19 2805 5200 130.20 2859 5300 130.21 2913 5400 130.22 2967 5500 130.23any amount more than 29675500130.24 Effective beginning December 31, 2000: 130.25 3021 5600 130.26 3075 5700 130.27 3129 5800 130.28 3183 5900 130.29 3237 6000 130.30 Effective beginning December 31, 2001: 130.31 3291 6100 130.32 3345 6200 130.33 3399 6300 130.34 3453 6400 130.35 3507 6500 130.36 Effective beginning December 31, 2002: 131.1 3561 6600 131.2 3615 6700 131.3 3669 6800 131.4 3723 6900 131.5 3777 7000 131.6 Effective beginning December 31, 2003: 131.7 3831 7100 131.8 3885 7200 131.9 3939 7300 131.10 3993 7400 131.11 4047 7500 131.12 (e) For a relief association in which the governing bylaws 131.13 provide for a monthly benefit service pension as an alternative 131.14 form of service pension payment to a lump sum service pension, 131.15 the maximum service pension amount for each pension payment type 131.16 must be determined using the applicable table contained in this 131.17 subdivision. 131.18 (f) If a relief association establishes a service pension 131.19 in compliance with the applicable maximum contained in paragraph 131.20 (c) or (d) and the minimum average amount of available financing 131.21 per active covered firefighter is subsequently reduced because 131.22 of a reduction in fire state aid or because of an increase in 131.23 the number of active firefighters, the relief association may 131.24 continue to provide the prior service pension amount specified 131.25 in its bylaws, but may not increase the service pension amount 131.26 until the minimum average amount of available financing per 131.27 firefighter under the table in paragraph (c) or (d), whichever 131.28 applies, permits. 131.29 (g)No relief association is authorized to provide a131.30service pension in an amount greater than $40 per month per year131.31of service credit or in an amount greater than $5,500 lump sum131.32per year of service credit even if the minimum average amount of131.33available financing per firefighter for a relief association131.34providing a monthly benefit service pension is greater than131.35$4,137, or, for a relief association providing a lump sum131.36service pension, is greater than $2,967.No relief association 132.1 is authorized to provide a service pension in an amount greater 132.2 than the largest applicable flexible service pension maximum 132.3 amount even if the amount of available financing per firefighter 132.4 is greater than the financing amount associated with the largest 132.5 applicable flexible service pension maximum. 132.6 Sec. 7. Minnesota Statutes 1998, section 424A.02, 132.7 subdivision 7, is amended to read: 132.8 Subd. 7. [DEFERRED SERVICE PENSIONS.] (a) A member of a 132.9 relief association to which this section applies is entitled to 132.10 a deferred service pension if the member: 132.11 (1) has completed the lesser of the minimum period of 132.12 active service with the fire department specified in the bylaws 132.13 or 20 years of active service with the fire department; 132.14 (2) has completed at least five years of active membership 132.15 in the relief association; and 132.16 (3) separates from active service and membership before 132.17 reaching age 50 or the minimum age for retirement and 132.18 commencement of a service pension specified in the bylaws 132.19 governing the relief association if that age is greater than age 132.20 50. 132.21 (b) The deferred service pension starts when the former 132.22 member reaches age 50 or the minimum age specified in the bylaws 132.23 governing the relief association if that age is greater than age 132.24 50 and when the former member makes a valid written application. 132.25 (c) A relief association that provides a lump sum service 132.26 pension may, when its governing bylaws so provide, pay interest 132.27 on the deferred lump sum service pension during the period of 132.28 deferral. If provided for in the bylaws, interest must be paid 132.29 at the rate actually earned on that portion of the assets if the 132.30 deferred benefit amount is invested by the relief association,132.31but not to exceed the interest rate specified in section132.32356.215, subdivision 4d, and must bein a separate account 132.33 established and maintained by the relief association or in a 132.34 separate investment vehicle held by the relief association or, 132.35 if not, at the interest rate of five percent, compounded 132.36 annuallybased on calendar year balances. 133.1 (d) For a deferred service pension that is transferred to a 133.2 separate account established and maintained by the relief 133.3 association or separate investment vehicle held by the relief 133.4 association, the deferred member bears the full investment risk 133.5 subsequent to transfer and in calculating the accrued liability 133.6 of the volunteer firefighter relief association that pays a lump 133.7 sum service pension, the accrued liability for deferred service 133.8 pensions is equal to the separate relief association account 133.9 balance or the fair market value of the separate investment 133.10 vehicle held by the relief association. 133.11 (e) The deferred service pension is governed by and must be 133.12 calculated under the general statute, special law, relief 133.13 association articles of incorporation,orand relief association 133.14 bylaw provisions applicable on the date on which the member 133.15 separated from active service with the fire department and 133.16 active membership in the relief association. 133.17 Sec. 8. Minnesota Statutes 1998, section 424A.02, 133.18 subdivision 9, is amended to read: 133.19 Subd. 9. [LIMITATION ON ANCILLARY BENEFITS.] Any relief 133.20 association, including any volunteer firefighters relief 133.21 association governed by section 69.77 or any volunteer 133.22 firefighters division of a relief association governed by 133.23 chapter 424, may only pay ancillary benefits which would 133.24 constitute an authorized disbursement as specified in section 133.25 424A.05 subject to the following requirements or limitations: 133.26(a)(1) With respect to a relief association in which 133.27 governing bylaws provide for a lump sum service pension to a 133.28 retiring member, no ancillary benefit may be paid to any former 133.29 member or paid to any person on behalf of any former member 133.30 after the former member(1)(i) terminates active service with 133.31 the fire department and active membership in the relief 133.32 association; and(2)(ii) commences receipt of a service pension 133.33 as authorizedpursuant tounder this section; and 133.34(b)(2) With respect to any relief association, no ancillary 133.35 benefit paid or payable to any member, to any former member, or 133.36 to any person on behalf of any member or former member, may 134.1 exceed in amount the total earned service pension of the member 134.2 or former member. The total earned service pensionshallmust 134.3 be calculated using the service pension amount specified in the 134.4 bylaws of the relief association and the years of service 134.5 credited to the member or former member. The years of service 134.6shallmust be determined as of(1)(i) the date the member or 134.7 former member became entitled to the ancillary benefit; 134.8 or(2)(ii) the date the member or former member died entitling 134.9 a survivor or the estate of the member or former member to an 134.10 ancillary benefit. The ancillary benefitshallmust be 134.11 calculated(1)(i) without regard to whether the member or 134.12 former member had attained the minimum amount of service and 134.13 membership credit specified in the governing bylaws; 134.14 and(2)(ii) without regard to the percentage amounts specified 134.15 in subdivision 2; except that the bylaws of any relief 134.16 association may provide for the payment of a survivor benefit in 134.17 an amount not to exceed five times the yearly service pension 134.18 amount specified in the bylaws on behalf of any member who dies 134.19 before having performed five years of active service in the fire 134.20 department with which the relief association is affiliated. 134.21 Sec. 9. Minnesota Statutes 1998, section 424A.02, is 134.22 amended by adding a subdivision to read: 134.23 Subd. 9b. [REPAYMENT OF SERVICE PENSION IN CERTAIN 134.24 INSTANCES.] If a retired volunteer firefighter does not 134.25 permanently separate from active firefighting service as 134.26 required by section 424A.001, subdivision 9, and subdivision 1, 134.27 by resuming active service as a firefighter in the same 134.28 volunteer fire department or as a person in charge of 134.29 firefighters in the same volunteer fire department, no 134.30 additional service pension amount is payable to the person, no 134.31 additional service is creditable to the person, and the person 134.32 shall repay any previously received service pension. 134.33 Sec. 10. Minnesota Statutes 1998, section 424A.02, 134.34 subdivision 13, is amended to read: 134.35 Subd. 13. [COMBINED SERVICE PENSIONS.] (a) If the articles 134.36 of incorporation or bylaws of the associations so provide, a 135.1 volunteer firefighter with credit for service as an active 135.2 firefighter in more than one volunteer firefighters relief 135.3 association is entitled, when the applicable requirements of 135.4 paragraph (b) are met and when otherwise qualified, to a 135.5 prorated service credit from each relief association. 135.6 (b) A volunteer firefighter receiving a prorated service 135.7 pension under this subdivision must have total service credit of 135.8 ten years or more, if every affected relief association does not 135.9 require only a five-year service vesting requirement, or five 135.10 years or more, if every affected relief association requires 135.11 only a five-year service vesting requirement, as a member of two 135.12 or more relief associationsis entitled, whenotherwise 135.13 qualified, to a prorated service pension from each association135.14in which. The memberhasmust have one year or more of service 135.15 credit in each relief association. The prorated service pension 135.16 must be based on the service pension amount in effect for the 135.17 relief association on the date on which active volunteer 135.18 firefighting services covered by that relief association 135.19 terminate. To receive a service pension under this subdivision, 135.20 the firefighter must become a member of the second or succeeding 135.21 association and must give notice of membership to the prior 135.22 association within two years of the date of termination of 135.23 active service with the prior association. The notice must be 135.24 attested to by the second or subsequent association secretary. 135.25 Sec. 11. Minnesota Statutes 1998, section 424A.04, 135.26 subdivision 1, is amended to read: 135.27 Subdivision 1. [MEMBERSHIP.] (a) Every relief association 135.28 directly associated with a municipal fire department shall be 135.29 managed by a board of trustees consisting of nine members. Six 135.30 trustees shall be elected from the membership of the relief 135.31 association and three trustees shall be drawn from the officials 135.32 of the municipalities served by the fire department to which the 135.33 relief association is directly associated. The bylaws of a 135.34 relief association may provide that one of the six trustees 135.35 elected from the relief association may be a retired member 135.36 receiving a monthly pension who is elected by the membership of 136.1 the relief association. The three ex officio trustees shall be 136.2 the mayor, the clerk, clerk-treasurer or finance director, and 136.3 the chief of the municipal fire department. 136.4 (b) Every relief association that is a subsidiary of an 136.5 independent nonprofit firefighting corporation shall be managed 136.6 by a board of trustees consisting of ten members. Six trustees 136.7 shall be elected from the membership of the relief association, 136.8 three trustees shall be drawn from the officials of the 136.9 municipalities served by the fire department to which the relief 136.10 association is directly associated, and one trustee shall be the 136.11 fire chief. The bylaws of a relief association may provide that 136.12 one of the six trustees elected from the relief association may 136.13 be a retired member receiving a monthly pension who is elected 136.14 by the membership of the relief association. The three ex 136.15 officio trustees who are the elected officials shall be selected 136.16 as follows: 136.17 (1) if only one municipality contracts with the independent 136.18 nonprofit firefighting corporation, the ex officio trustees 136.19 shall be three elected officials of the contracting municipality 136.20 who are designated by the governing body of the municipality; 136.21 (2) if two municipalities contract with the independent 136.22 nonprofit firefighting corporation, the ex officio trustees 136.23 shall be two elected officials of the largest municipality in 136.24 population and one elected official of the next largest 136.25 municipality in population who are designated by the governing 136.26 bodies of the applicable municipalities; or 136.27 (3) if three or more municipalities contract with the 136.28 independent nonprofit corporation, the ex officio trustees shall 136.29 be one elected official of each of the three largest 136.30 municipalities in population who are designated by the governing 136.31 bodies of the applicable municipalities. 136.32 (c) If a relief association lacks the ex-officio board 136.33 members provided for in paragraph (a) or (b) because the fire 136.34 department is not located in or associated with an organized 136.35 municipality, the ex-officio board members must be appointed 136.36 from the fire department service area by the board of 137.1 commissioners of the applicable county. The term of these 137.2 appointed ex-officio board members is three years or until the 137.3 person's successor is qualified, whichever is later. 137.4 (d) An ex officio trustee under paragraph (a), (b), or (c) 137.5 shall have all the rights and duties accorded to any other 137.6 trustee except the right to be an officer of the board of 137.7 trustees. 137.8 (e) A board shall have at least three officers, which shall 137.9 be a president, a secretary and a treasurer. These officers 137.10 shall be elected from among the elected trustees by either the 137.11 full board of trustees or by the membership, as specified in the 137.12 bylaws, and in no event shall any trustee hold more than one 137.13 officer position at any one time. The terms of the elected 137.14 trustees and of the officers of the board shall be specified in 137.15 the bylaws of the relief association, but shall not exceed three 137.16 years. If the term of the elected trustees exceeds one year, 137.17 the election of the various trustees elected from the membership 137.18 shall initially and shall thereafter continue to be staggered on 137.19 as equal a basis as is practicable. 137.20 Sec. 12. Minnesota Statutes 1998, section 424A.05, 137.21 subdivision 3, is amended to read: 137.22 Subd. 3. [AUTHORIZED DISBURSEMENTS FROM THE SPECIAL 137.23 FUND.] (a) Disbursements from the special fundshallare not 137.24 permitted to be made for any purpose other than one of the 137.25 following: 137.26 (1) For the payment of service pensions to retired members 137.27 of the relief association if authorized and paid pursuant to law 137.28 and the bylaws governing the relief association; 137.29 (2) For the payment of temporary or permanent disability 137.30 benefits to disabled members of the relief association if 137.31 authorized and paid pursuant to law and specified in amount in 137.32 the bylaws governing the relief association; 137.33 (3) For the payment of survivor benefits to surviving 137.34 spouses and surviving children, or if none, to designated 137.35 beneficiaries, of deceased members of the relief association if 137.36 authorized by and paid pursuant to law and specified in amount 138.1 in the bylaws governing the relief association; 138.2 (4) For the payment of any funeral benefits to the 138.3 surviving spouse, or if no surviving spouse, the estate, of the 138.4 deceased member of the relief association if authorized by law 138.5 and specified in amount in the bylaws governing the relief 138.6 association; 138.7 (5) For the payment of the fees, dues and assessments to 138.8 the Minnesota state fire department associationand, to the 138.9 Minnesota area relief association coalition, and to the state 138.10 volunteer firefighters' benefit association in order to entitle 138.11 relief association members to membership in and the benefits of 138.12 thesestateassociations or organizations; and 138.13 (6) For the payment of administrative expenses of the 138.14 relief association as authorized pursuant to section 69.80. 138.15 (b) For purposes of this chapter, a designated beneficiary 138.16 must be a natural person. 138.17 Sec. 13. [VOLUNTEER FIREFIGHTERS LUMP SUM SERVICE 138.18 BENEFITS.] 138.19 Subdivision 1. [APPLICATION.] This section applies to a 138.20 surviving spouse of a person who: 138.21 (1) was born on August 18, 1941; 138.22 (2) was employed as a building inspector by the city of St. 138.23 Paul; 138.24 (3) died during the course of his employment duties as a 138.25 building inspector on December 24, 1997; 138.26 (4) began service as a volunteer firefighter for the 138.27 Woodbury fire department in 1980 and continued that service up 138.28 to the time of his death; and 138.29 (5) would have been eligible to retire as a volunteer 138.30 firefighter and receive a lump sum service pension calculated at 138.31 the rate of $4,000 for each year of service on January 1, 1998. 138.32 Subd. 2. [ELIGIBILITY FOR BENEFIT.] Notwithstanding any 138.33 law to the contrary, the eligible person described in 138.34 subdivision 1 is entitled to receive a survivor benefit from the 138.35 Woodbury fire department relief association benefit plan 138.36 calculated at the rate that would have been in effect had the 139.1 person described in subdivision 1 lived until January 1, 1998. 139.2 Subd. 3. [RESTRICTIONS.] This section does not authorize 139.3 payment of more than a single survivor benefit to the eligible 139.4 individual specified in subdivision 1. If a survivor benefit 139.5 has been paid to the eligible individual by the Woodbury fire 139.6 department relief association, this section authorizes payment 139.7 to the eligible individual of the difference between the amount 139.8 previously paid and the amount payable under the Woodbury fire 139.9 department relief association benefit plan in effect on January 139.10 1, 1998, assuming the volunteer firefighter survived and 139.11 provided service to that date. 139.12 Sec. 14. [EFFECTIVE DATE.] 139.13 (a) Sections 1 to 6 and 8 to 12 are effective on the day 139.14 following final enactment. 139.15 (b) Section 7 is effective on the day following final 139.16 enactment and, with the appropriate bylaw amendment and 139.17 municipal approval, applies to deferred service pensions where 139.18 deferral began before the effective date of the municipal 139.19 approval. 139.20 (c) For a deferred service pension under section 7 that is 139.21 invested in a separate account or separate investment vehicle, 139.22 interest is payable up to the date of the transfer consistent 139.23 with the law and bylaw provisions in effect when the firefighter 139.24 terminated active firefighting service and actual investment 139.25 performance thereafter. 139.26 (d) Section 13 is effective on the day after the date on 139.27 which the Woodbury city council and the chief clerical officer 139.28 of the city of Woodbury complete, in a timely manner, their 139.29 compliance with Minnesota Statutes, section 645.021, 139.30 subdivisions 2 and 3. 139.31 ARTICLE 16 139.32 DISSOLUTIONS AND CONSOLIDATIONS 139.33 OF VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS 139.34 Section 1. [424B.01] [DEFINITIONS.] 139.35 Subdivision 1. [GENERALLY.] Unless the context of the 139.36 provision indicates that a different meaning is intended, each 140.1 of the terms in the following subdivision has the meaning 140.2 indicated. 140.3 Subd. 2. [APPLICABLE MUNICIPALITY.] "Applicable 140.4 municipality" means the municipality or municipalities in which 140.5 a consolidating relief association is located and to which a 140.6 consolidating relief association is associated by virtue of the 140.7 presence of at least one municipal official on the relief 140.8 association board of trustees under section 424A.04. 140.9 Subd. 3. [CONSOLIDATING RELIEF 140.10 ASSOCIATION.] "Consolidating relief association" means a 140.11 volunteer firefighter relief association organized under chapter 140.12 317A and governed by chapter 424A that has initiated or has 140.13 completed the process of consolidating with one or more other 140.14 relief associations under this chapter. 140.15 Subd. 4. [PRIOR RELIEF ASSOCIATIONS.] "Prior relief 140.16 associations" means the two or more volunteer firefighter relief 140.17 associations that have initiated the consolidation process under 140.18 this chapter by action of the board of trustees of the relief 140.19 association. 140.20 Subd. 5. [RELIEF ASSOCIATION MEMBERSHIP.] "Relief 140.21 association membership" means all active members of the 140.22 volunteer firefighter relief association, all deferred retirees 140.23 and other vested inactive members of the volunteer firefighter 140.24 relief association, and any persons regularly receiving a 140.25 service pension or other retirement benefit from the volunteer 140.26 firefighters relief association. 140.27 Subd. 6. [SUBSEQUENT RELIEF ASSOCIATION.] "Subsequent 140.28 relief association" means the volunteer firefighters relief 140.29 association that is designated to be the successor relief 140.30 association in the consolidation initiative resolutions of the 140.31 board of trustees of the prior relief associations or the 140.32 volunteer firefighters relief association organized under 140.33 chapters 317A and 424A for the purpose of operating as the 140.34 successor relief association after consolidation under this 140.35 chapter. 140.36 Sec. 2. [424B.02] [CONSOLIDATION AUTHORIZED.] 141.1 Subdivision 1. [INITIATION.] (a) With the approval of the 141.2 governing body of each applicable municipality, two or more 141.3 relief associations associated with fire departments serving 141.4 contiguous fire districts may initiate the consolidation of the 141.5 relief associations into a subsequent relief association. 141.6 (b) Initiation of a consolidation action must occur through 141.7 the proposal of a consolidation resolution to the board of 141.8 trustees of each volunteer firefighter relief association 141.9 notification of the relief association membership of the 141.10 potential consolidation and after conducting a public meeting on 141.11 the consolidation question. 141.12 Subd. 2. [INITIATIVE PROCESSING; FILING.] (a) After a 141.13 consolidation initiative resolution has been filed with the 141.14 relief association board of trustees by one or more members of 141.15 the board, the relief association secretary shall provide 141.16 written notification of the initiative to the relief association 141.17 membership. After notification of the relief association 141.18 membership, the board of trustees must hold a public hearing on 141.19 the initiative. After the hearing, the board of trustees shall 141.20 act on the consolidation resolution. 141.21 (b) If the consolidation resolution is adopted by majority 141.22 vote of the board of trustees, the secretary shall file a copy 141.23 of the resolution with the other relief association or 141.24 associations also considering consolidation. 141.25 (c) If two or more volunteer firefighter relief 141.26 associations adopt a consolidation resolution, those relief 141.27 associations are consolidated effective the next following 141.28 January 1. 141.29 (d) Within 30 days of the adoption of the consolidation 141.30 resolution by all prior relief associations, the secretaries of 141.31 the applicable prior relief associations shall jointly notify in 141.32 writing the state auditor, the commissioner of revenue, and the 141.33 secretary of state of the consolidation. 141.34 Sec. 3. [424B.03] [SUBSEQUENT RELIEF ASSOCIATION.] 141.35 Subdivision 1. [NEW RELIEF ASSOCIATION.] If the subsequent 141.36 relief association is a new volunteer firefighter relief 142.1 association, the consolidated volunteer firefighters relief 142.2 association must be incorporated under chapter 317A. The 142.3 incorporators of the consolidated relief association must 142.4 include at least one board member of each of the former 142.5 volunteer firefighters relief associations. 142.6 Subd. 2. [SUCCESSOR RELIEF ASSOCIATION.] If the subsequent 142.7 relief association is one of the prior relief associations, the 142.8 articles of incorporation and bylaws must be appropriately 142.9 revised, effective on the consolidation effective date, and a 142.10 revised board of trustees must be elected before the 142.11 consolidation effective date. 142.12 Sec. 4. [424B.04] [GOVERNANCE OF CONSOLIDATED VOLUNTEER 142.13 FIREFIGHTERS RELIEF ASSOCIATION.] 142.14 Subdivision 1. [BOARD OF TRUSTEES.] The consolidated 142.15 volunteer firefighters relief association is governed by a board 142.16 of trustees as provided in section 424A.04, subdivision 1. 142.17 Subd. 2. [COMPOSITION OF BOARD.] The board must have three 142.18 officers, including a president, a secretary, and a treasurer. 142.19 The membership of the consolidated volunteer firefighters relief 142.20 association must elect the three officers from the board 142.21 members. A board of trustees member may not hold more than one 142.22 officer position at the same time. 142.23 Subd. 3. [BOARD ADMINISTRATION.] The board of trustees 142.24 must administer the affairs of the relief association consistent 142.25 with this chapter and the applicable provisions of chapters 69, 142.26 356A, and 424A. 142.27 Sec. 5. [424B.05] [SPECIAL AND GENERAL FUNDS.] 142.28 The consolidated volunteer firefighters relief association 142.29 must establish and maintain a special fund and a general fund. 142.30 The special fund must be established and maintained as provided 142.31 in section 424A.05. The general fund must be established and 142.32 maintained as provided in section 424A.06. 142.33 Sec. 6. [424B.06] [TRANSFERS.] 142.34 Subdivision 1. [GENERALLY.] On the effective date of 142.35 consolidation, the records, assets, and liabilities of the prior 142.36 volunteer firefighter relief associations are transferred to the 143.1 consolidated volunteer firefighters relief association. On the 143.2 effective date of consolidation, the prior volunteer 143.3 firefighters relief associations cease to exist as legal 143.4 entities, except for the purposes of winding up association 143.5 affairs as provided by this chapter. 143.6 Subd. 2. [TRANSFER OF ADMINISTRATION.] On the effective 143.7 date of consolidation, the administration of the prior relief 143.8 associations is transferred to the board of trustees of the 143.9 subsequent volunteer firefighters relief association. 143.10 Subd. 3. [TRANSFER OF RECORDS.] On the effective date of 143.11 consolidation, the secretary and the treasurer of the prior 143.12 volunteer firefighters relief associations shall transfer all 143.13 records and documents relating to the prior relief associations 143.14 to the secretary and treasurer of the subsequent volunteer 143.15 firefighters relief association. 143.16 Subd. 4. [TRANSFER OF SPECIAL FUND ASSETS AND 143.17 LIABILITIES.] (a) On the effective date of consolidation, the 143.18 secretary and the treasurer of a prior volunteer firefighters 143.19 relief association shall transfer the assets of the special fund 143.20 of the applicable relief association to the special fund of the 143.21 subsequent relief association. Unless the appropriate secretary 143.22 and treasurer decide otherwise, the assets may be transferred as 143.23 investment securities rather than cash. The transfer must 143.24 include any accounts receivable. The appropriate secretary must 143.25 settle any accounts payable from the special fund of the relief 143.26 association before the effective date of consolidation. 143.27 (b) Upon the transfer of the assets of the special fund of 143.28 a prior relief association, the pension liabilities of that 143.29 special fund become the obligation of the special fund of the 143.30 subsequent volunteer firefighters relief association. 143.31 (c) Upon the transfer of the prior relief association 143.32 special fund assets, the board of trustees of the subsequent 143.33 volunteer firefighters relief association has legal title to and 143.34 management responsibility for the transferred assets as trustees 143.35 for persons having a beneficial interest in those assets arising 143.36 out of the benefit coverage provided by the prior relief 144.1 association. 144.2 (d) The subsequent volunteer firefighters relief 144.3 association is the successor in interest in all claims for and 144.4 against the special funds of the prior volunteer firefighters 144.5 relief associations or the applicable municipalities with 144.6 respect to the special funds of the prior relief associations. 144.7 The status of successor in interest does not apply to any claim 144.8 against a prior relief association, the municipality in which 144.9 that relief association is located, or any person connected with 144.10 the prior relief association or the municipality, based on any 144.11 act or acts that were not done in good faith and that 144.12 constituted a breach of fiduciary responsibility under common 144.13 law or chapter 356A. 144.14 Sec. 7. [424B.07] [DISSOLUTION OF PRIOR GENERAL FUND 144.15 BALANCES.] 144.16 Before the effective date of consolidation, the secretaries 144.17 of the volunteer firefighters relief associations shall settle 144.18 any accounts payable from the respective general fund or any 144.19 other relief association fund in addition to the relief 144.20 association special fund. Investments held by a fund of the 144.21 prior relief associations in addition to the special fund must 144.22 be liquidated before the effective date of consolidation as the 144.23 bylaws of the relief association provide. Before the effective 144.24 date of consolidation, the respective relief associations must 144.25 pay all applicable general fund expenses from their respective 144.26 general funds. Any balance remaining in the general fund or in 144.27 a fund other than the relief association special fund as of the 144.28 effective date of consolidation must be paid to the new general 144.29 fund of the subsequent volunteer firefighter relief association. 144.30 Sec. 8. [424B.08] [TERMINATION OF PRIOR RELIEF 144.31 ASSOCIATIONS.] 144.32 Following the transfer of administration, records, special 144.33 fund assets, and special fund liabilities from the prior relief 144.34 associations to the subsequent volunteer firefighters relief 144.35 association, the prior volunteer firefighter relief associations 144.36 cease to exist as legal entities for any purpose. The 145.1 subsequent relief association secretary shall notify the 145.2 following governmental officials of the termination of the 145.3 respective volunteer firefighter relief associations and of the 145.4 establishment of the subsequent volunteer firefighters relief 145.5 association: 145.6 (1) Minnesota secretary of state; 145.7 (2) Minnesota state auditor; 145.8 (3) Minnesota commissioner of revenue; and 145.9 (4) commissioner of the federal Internal Revenue Service. 145.10 Sec. 9. [424B.09] [ADMINISTRATIVE EXPENSES.] 145.11 The payment of authorized administrative expenses of the 145.12 subsequent volunteer firefighters relief association must be 145.13 from the special fund of the subsequent volunteer firefighters 145.14 relief association in accordance with section 69.80, and as 145.15 provided for in the bylaws of the subsequent volunteer 145.16 firefighters relief association and approved by the board of 145.17 trustees of the subsequent volunteer firefighters relief 145.18 association. The payment of any other expenses of the 145.19 subsequent volunteer firefighters relief association must be 145.20 from the general fund of the subsequent volunteer firefighters 145.21 relief association in accordance with section 69.80, and as 145.22 provided for in the bylaws of the subsequent volunteer 145.23 firefighters relief association and approved by the board of 145.24 trustees of the subsequent volunteer firefighters relief 145.25 association. 145.26 Sec. 10. [424B.10] [BENEFITS; FUNDING.] 145.27 Subdivision 1. [BENEFITS.] (a) Notwithstanding section 145.28 424A.02, subdivision 3, to the contrary, the service pension of 145.29 the subsequent relief association as of the effective date of 145.30 consolidation is the highest dollar amount service pension 145.31 amount of any prior volunteer firefighters relief association in 145.32 effect immediately before the consolidation initiation if the 145.33 pension amount was implemented consistent with section 424A.02. 145.34 (b) Any increase in the service pension amount beyond the 145.35 amount implemented under paragraph (a) must conform with the 145.36 requirements and limitations of sections 69.771 to 69.775 and 146.1 424A.02. 146.2 Subd. 2. [FUNDING.] (a) Unless the applicable 146.3 municipalities agree in writing to allocate the minimum 146.4 municipal obligation in a different manner, the minimum 146.5 municipal obligation under section 69.772 or 69.773, whichever 146.6 applies, must be allocated between the applicable municipalities 146.7 in proportion to their fire state aid. 146.8 (b) If any applicable municipality fails to meet its 146.9 portion of the minimum municipal obligation to the subsequent 146.10 relief association, all other applicable municipalities are 146.11 jointly obligated to provide the required funding upon 146.12 certification by the relief association secretary. An 146.13 applicable municipality that pays the minimum municipal 146.14 obligation for another applicable municipality, the municipality 146.15 may collect the payment amount, plus a 25 percent surcharge, 146.16 from the responsible applicable municipality by any available 146.17 means, including deduction from any state aid or payment amount 146.18 payable to the responsible municipality upon certification of 146.19 the necessary information to the commissioner of finance. 146.20 Sec. 11. [424B.20] [DISSOLUTION WITHOUT CONSOLIDATION.] 146.21 Subdivision 1. [APPLICABLE DISSOLUTIONS.] This section 146.22 applies if the fire department associated with a volunteer 146.23 firefighter relief association is dissolved or eliminated by 146.24 action of the governing body of the municipality in which fire 146.25 department was located or by the independent nonprofit 146.26 firefighting corporation, whichever applies, and no 146.27 consolidation with another volunteer firefighter relief 146.28 association under sections 424B.01 to 424B.10 is sought, or if a 146.29 volunteer firefighter relief association is dissolved or 146.30 eliminated with municipal approval, but the fire department 146.31 associated with the volunteer firefighter relief association is 146.32 not dissolved or eliminated, and no consolidation with another 146.33 volunteer firefighter relief association under sections 424B.01 146.34 to 424B.10 is applicable. 146.35 Subd. 2. [PROCEDURES.] As part of the dissolution process, 146.36 all legal obligations of the relief association other than 147.1 service pensions and benefits must be settled under subdivision 147.2 3, a benefit trust must be established under subdivision 4, and 147.3 the affairs of the relief association must be concluded under 147.4 subdivision 5. 147.5 Subd. 3. [SETTLEMENT OF NONBENEFIT LEGAL OBLIGATIONS.] (a) 147.6 Prior to the effective date of the dissolution of the volunteer 147.7 firefighter relief association established by the relief 147.8 association board of trustees, the board shall determine the 147.9 following: 147.10 (1) the fair market value of the assets of the special 147.11 fund; 147.12 (2) the total amount of the accounts payable and other 147.13 legal obligations of the special fund, excluding the accrued 147.14 liability of the special fund for service pensions and other 147.15 benefits; and 147.16 (3) the accrued liability of the special fund for service 147.17 pensions and other benefits payable or accrued under the 147.18 applicable bylaws of the relief association and chapter 424A. 147.19 (b) On or before the effective date of the dissolution of 147.20 the volunteer firefighter relief association, the board shall 147.21 liquidate sufficient special fund assets to pay the legal 147.22 obligations of the special fund and must settle those legal 147.23 obligations. 147.24 (c) On or before the effective date of the dissolution of 147.25 the volunteer firefighter relief association, the board shall 147.26 settle the legal obligations of the general fund of the relief 147.27 association. 147.28 Subd. 4. [BENEFIT TRUST FUND ESTABLISHMENT.] (a) After the 147.29 settlement of nonbenefit legal obligations of the special fund 147.30 of the volunteer firefighter relief association under 147.31 subdivision 3, the board of the relief association shall 147.32 transfer the remaining assets of the special fund, as securities 147.33 or in cash, as applicable, to the chief financial official of 147.34 the municipality in which the associated fire department was 147.35 located if the fire department was a municipal fire department 147.36 or to the chief financial official of the municipality with the 148.1 largest population served by the fire department if the fire 148.2 department was an independent nonprofit firefighting 148.3 corporation. The board shall also compile a schedule of the 148.4 relief association members to whom a service pension is or will 148.5 be owed, any beneficiary to whom a benefit is owed, the amount 148.6 of the service pension or benefit payable based on the 148.7 applicable bylaws and state law and the service rendered to the 148.8 date of the dissolution, and the date on which the pension or 148.9 benefit would first be payable under the bylaws of the relief 148.10 association and state law. 148.11 (b) The municipality in which is located a volunteer 148.12 firefighter relief association that is dissolving under this 148.13 section shall establish a separate account in the municipal 148.14 treasury which must function as a trust fund for members of the 148.15 volunteer firefighter relief association and their beneficiaries 148.16 to whom the volunteer firefighter relief association owes a 148.17 service pension or other benefit under the bylaws of the relief 148.18 association and state law. Upon proper application, on or after 148.19 the initial date on which the service pension or benefit is 148.20 payable, the municipal treasurer shall pay the pension or 148.21 benefit due, based on the schedule prepared under paragraph (a) 148.22 and the other records of the dissolved relief association. The 148.23 trust fund under this section must be invested and managed 148.24 consistent with section 69.775 and chapter 356A. Upon payment 148.25 of the last service pension or benefit due and owing, any 148.26 remaining assets in the trust fund cancel to the general fund of 148.27 the municipality. If the special fund of the volunteer 148.28 firefighter relief association had an unfunded actuarial accrued 148.29 liability upon dissolution, the municipality is liable for that 148.30 unfunded actuarial accrued liability. 148.31 Subd. 5. [RELIEF ASSOCIATION AFFAIRS WIND-UP.] Upon 148.32 dissolution, the board of trustees of the volunteer firefighter 148.33 relief association shall transfer the records of the relief 148.34 association to the chief administrative officer of the 148.35 applicable municipality. The board shall also notify the 148.36 commissioner of revenue, the state auditor, and the secretary of 149.1 state of the dissolution within 30 days of the effective date of 149.2 the dissolution. 149.3 Sec. 12. [424B.21] [ANNUITY PURCHASES UPON DISSOLUTION.] 149.4 The board of trustees of a volunteer firefighter relief 149.5 association that is scheduled for dissolution may purchase 149.6 annuity contracts under section 424A.02, subdivision 8a, instead 149.7 of transferring special fund assets to a municipal trust fund 149.8 under section 424B.20, subdivision 4. Payment of an annuity for 149.9 which a contract is purchased may not commence before the 149.10 retirement age specified in the relief association bylaws and in 149.11 compliance with section 424A.02, subdivision 1. Legal title to 149.12 the annuity contract transfers to the municipal trust fund under 149.13 section 424B.20, subdivision 4. 149.14 Sec. 13. [REPEALER.] 149.15 Minnesota Statutes 1998, section 424A.02, subdivision 11, 149.16 is repealed. 149.17 Sec. 14. [EFFECTIVE DATE.] 149.18 Sections 1 to 13 are effective on July 1, 2000. 149.19 ARTICLE 17 149.20 MINNEAPOLIS POLICE AND FIREFIGHTERS 149.21 RELIEF ASSOCIATION CHANGES 149.22 149.23 Section 1. Minnesota Statutes 1998, section 423B.01, is 149.24 amended to read: 149.25 423B.01 [MINNEAPOLIS POLICE RELIEF ASSOCIATION; 149.26 DEFINITIONS.] 149.27 Subdivision 1. [TERMS.] For purposes of sections 423B.01 149.28 to 423B.18, unless the context clearly indicates otherwise, each 149.29 of the terms defined in this section has the indicated meaning. 149.30 Subd. 2. [ACTIVE MEMBER.] "Active member" means a person 149.31 who was hired and duly appointed by the city of Minneapolis 149.32 before May 1, 1959, as a police stenographer, police clerk, 149.33 police telephone operator, police radio operator, or police 149.34 mechanic or before June 15, 1980, as a police officer, police 149.35 matron, or assistant police matron, who is regularly entered on 149.36 the payroll of the police department, and who serves on active 150.1 duty. 150.2 Subd. 3. [ACTIVE MEMBER PERCENTAGE.] The "active member 150.3 percentage" is the total number of units accrued by active 150.4 members of the association divided by the sum of the total 150.5 number of units to which eligible members are entitled and 150.6 active members of the association have accrued. 150.7 Subd. 4. [AGE.] "Age" means a person's age at the person's 150.8 latest birthday. 150.9 Subd.45. [ANNUAL POSTRETIREMENT PAYMENT.] "Annual 150.10 postretirement payment" means the payment of a lump sum 150.11 postretirement benefit under section 423B.15 to an eligible 150.12 member on June 1 following the determination date in any year. 150.13 Subd.56. [ASSOCIATION.] "Association" means the 150.14 Minneapolis police relief association. 150.15 Subd. 7. [CITY.] "City" means the city of Minneapolis. 150.16 Subd. 8. [DETERMINATION DATE.] "Determination date" means 150.17 December 31 of each year. 150.18 Subd.69. [DISABILITY.] "Disability" means a physical or 150.19 mental incapacity of an active member to perform the duties of 150.20 the person's position in the service of the police department. 150.21 Subd.710. [DISCHARGE.] "Discharge" means a complete 150.22 separation from service in the police department. 150.23 Subd.811. [ELIGIBLE MEMBER.] "Eligible member" means a 150.24 person, including a service pensioner, a disability pensioner, a 150.25 survivor, or dependent of a deceased active member, service 150.26 pensioner, or disability pensioner, who received a pension or 150.27 benefit from the relief association during the 12 months before 150.28 the determination date. 150.29 Subd.912. [EXCESS INVESTMENT INCOME.] "Excess investment 150.30 income" means the amount, if any, by which the average time 150.31 weighted total rate of return earned by the fund in the most 150.32 recent prior five fiscal years has exceeded the actual average 150.33 percentage increase in the current monthly salary of a first 150.34 grade patrol officer in the most recent prior five fiscal years 150.35 plus two percent, and must be expressed as a dollar amount. The 150.36 amount may not exceed one percent of the total assets of the 151.1 fund, except when the actuarial value of assets of the fund 151.2 according to the most recent annual actuarial valuation prepared 151.3 in accordance with sections 356.215 and 356.216 is greater than 151.4 102 percent of its actuarial accrued liabilities, in which case 151.5 the amount must not exceed 1-1/2 percent of the total assets of 151.6 the fund, and does not exist unless the yearly average 151.7 percentage increase of the time weighted total rate of return of 151.8 the fund for the previous five years exceeds by two percent the 151.9 yearly average percentage increase in monthly salary of a first 151.10 grade patrol officer during the previous five calendar years. 151.11 Subd.1013. [FUND.] "Fund" means the special fund of the 151.12 relief association. 151.13 Subd. 14. [NET EXCESS ASSET AMOUNT PAYMENT.] "Net excess 151.14 asset amount payment" means the payment of an additional 151.15 postretirement payment under section 2 to an eligible member on 151.16 June 1 following the determination date in the given year. 151.17 Subd. 15. [NET TOTAL EXCESS ASSET AMOUNT.] "Net total 151.18 excess asset amount" is the total excess asset amount stated in 151.19 dollars and multiplied by the quantity one minus the active 151.20 member percentage. 151.21 Subd.1116. [RETIRED MEMBER.] "Retired member" means a 151.22 former active member who has terminated active service in the 151.23 police department and who is entitled to receive a pension or 151.24 benefit under sections 423B.01 to 423B.18, as amended, or any 151.25 predecessor law. 151.26 Subd.1217. [SURVIVING SPOUSE MEMBER.] "Surviving spouse 151.27 member" means the person who was the legally married spouse of 151.28 the member, who was residing with the decedent, and who was 151.29 married while or before the time the decedent was an active 151.30 member and was on the payroll of the police department, and who, 151.31 in case the deceased member was a pensioner or deferred 151.32 pensioner, was legally married to the member at least one year 151.33 before the decedent's termination of active service with the 151.34 police department. The term does not include the surviving 151.35 spouse who has deserted a member or who has not been dependent 151.36 upon the member for support, nor does it include the surviving 152.1 common law spouse of a member. 152.2 Subd.1318. [TIME WEIGHTED TOTAL RATE OF RETURN.] "Time 152.3 weighted total rate of return" means the percentage amount 152.4 determined by using the formula or formulas established by the 152.5 state board of investment under section 11A.04, clause (11), and 152.6 in effect on January 1, 1987. 152.7 Subd. 19. [TOTAL EXCESS ASSET AMOUNT.] (a) "Total excess 152.8 asset amount" means the difference, if positive, expressed in 152.9 dollars, between the fund's market value of assets after any 152.10 deductions required by section 423B.15, subdivision 2, and 110 152.11 percent of the actuarial accrued liabilities based on the 152.12 actuarial valuation indicated in paragraph (b). 152.13 (b) The total excess asset amount in paragraph (a) exists 152.14 if the actuarial liability funding ratio, according to the most 152.15 recent annual actuarial valuation for the fund prepared in 152.16 accordance with sections 69.77, 356.215, and 356.216, with 152.17 adjustments required by section 423B.15, subdivision 2, equals 152.18 or exceeds 110 percent. 152.19 Subd.1420. [UNIT.] "Unit" means one-eightieth of the 152.20 current monthly salary of a first grade patrol officer. 152.21 Subd.1521. [ACTUARIAL EQUIVALENT.] "Actuarial 152.22 equivalent" or "actuarially equivalent" means the condition of 152.23 one annuity or benefit having an equal actuarial present value 152.24 as another annuity or benefit, determined as of a given date at 152.25 a specified age with each actuarial present value based on the 152.26 appropriate mortality table adopted by the board of directors 152.27 based on the experience of the fund and approved by the actuary 152.28 retained by the legislative commission on pensions and 152.29 retirement and using the applicable preretirement or 152.30 postretirement interest rate assumptions specified in section 152.31 356.216. 152.32 Sec. 2. [423B.151] [EXCESS ASSET AMOUNT PAYMENT.] 152.33 Subdivision 1. [DETERMINATION OF NET TOTAL EXCESS AMOUNT.] 152.34 The board of the association shall determine by May 1 of each 152.35 year whether the fund has a total excess asset amount for that 152.36 year. If a total excess asset amount exists for the given year, 153.1 the net total excess asset amount shall be determined. The 153.2 total excess asset amount and net total excess asset amount 153.3 shall be reported to the chief administrative officer of the 153.4 association, the mayor and governing body of the city, the state 153.5 auditor, the commissioner of finance, and the executive director 153.6 of the legislative commission on pensions and retirement. The 153.7 portion of the net excess asset amount which is distributed 153.8 under this section must not be considered as income to or assets 153.9 of the fund for actuarial valuations of the fund for that year 153.10 under sections 69.77, 356.215, 356.216, and this act, except to 153.11 offset the amount distributed. 153.12 Subd. 2. [TOTAL AVAILABLE FOR PAYMENT.] Twenty percent of 153.13 the net total excess asset amount determined under subdivision 1 153.14 is available for excess asset amount payments under subdivision 153.15 3. 153.16 Subd. 3. [NET EXCESS ASSET AMOUNT PAYMENTS.] Except as 153.17 limited under subdivision 4, the net excess asset amount payment 153.18 to an eligible member is equal to the amount determined under 153.19 subdivision 2 multiplied by the units applicable to the eligible 153.20 member and divided by the total units of all eligible members. 153.21 Subd. 4. [ENTITLEMENT; PRIORITY.] A person who is an 153.22 eligible member for the entire 12 months before the 153.23 determination date is eligible for a full excess asset amount 153.24 payment under subdivision 2. A person who is an eligible member 153.25 for less than 12 months before the determination date is 153.26 eligible for a prorated excess asset amount payment. If an 153.27 eligible member dies after the determination date and before the 153.28 excess asset amount payment commences, the association must pay 153.29 the eligible member's excess asset amount payment to the 153.30 eligible member's surviving spouse, if no surviving spouse, to 153.31 the member's estate. 153.32 Subd. 5. [PAYMENT METHOD.] The excess asset amount 153.33 payments determined under this section commence on June 1 153.34 following the determination date. These amounts may be paid as 153.35 a lump sum, disbursed to the eligible members in 12 equal 153.36 monthly installments, or any other manner which the board shall 154.1 determine. 154.2 Subd. 6. [NO GUARANTEE OF ANNUAL RESIDUAL INVESTMENT 154.3 PAYMENT.] No provision of this act may be interpreted or relied 154.4 upon by any member of the association to guarantee or entitle a 154.5 member to a net excess asset amount payment relating to any year 154.6 in which there is no net total excess asset amount. 154.7 Sec. 3. [423B.19] [CITY OF MINNEAPOLIS; NORMAL COST 154.8 CONTRIBUTION ADJUSTMENT.] 154.9 Notwithstanding section 69.77, 356.215, 356.216, or any 154.10 other law to the contrary, the required city contributions 154.11 toward the association's normal cost, as determined by the 154.12 actuary, are reduced below that otherwise payable by the full 154.13 amount of active member contributions required by law to be 154.14 directed to the association's health insurance escrow account 154.15 rather than to the special fund. 154.16 Sec. 4. [423B.20] [SUSPENSION OF NORMAL COST 154.17 CONTRIBUTIONS.] 154.18 Notwithstanding the provisions of section 69.77 or any 154.19 other law to the contrary, if a total excess asset amount 154.20 exists, as defined in section 423B.01, subdivision 19, the city 154.21 is not required to make a contribution to the fund for the 154.22 normal cost of active members. 154.23 Sec. 5. [423B.21] [CHANGE IN AMORTIZATION PERIOD.] 154.24 Subdivision 1. [AMORTIZATION TREATMENT.] Notwithstanding 154.25 section 69.77, subdivision 2b; 356.215; 356.216; or any other 154.26 law to the contrary, if the actuarial report for the association 154.27 indicates an unfunded actuarial accrued liability after the fund 154.28 has first achieved 100 percent funding, the unfunded obligation 154.29 is to be amortized on a level dollar basis by December 31 of the 154.30 year occurring 15 years later. If subsequent actuarial 154.31 valuations determine a net actuarial experience loss incurred 154.32 during the year which ended as of the day before the most recent 154.33 actuarial valuation date, any unfunded liability due to that 154.34 loss is to be amortized on a level dollar basis by December 31 154.35 of the year occurring 15 years later. 154.36 Subd. 2. [LIMITATION.] Notwithstanding subdivision 1, the 155.1 amortization period may not exceed the average life expectancy 155.2 of the remaining members. 155.3 Sec. 6. [MINNEAPOLIS FIRE RELIEF ASSOCIATION; SURVIVOR 155.4 BENEFIT PAYMENT.] 155.5 Subdivision 1. [SURVIVING SPOUSE BENEFIT ELIGIBILITY.] (a) 155.6 Notwithstanding Laws 1997, chapter 233, article 4, section 12, 155.7 or other law to the contrary, an eligible individual specified 155.8 in paragraph (b) is authorized to receive the benefit specified 155.9 in subdivision 2. 155.10 (b) An eligible individual is an individual born on May 27, 155.11 1927, who married a Minneapolis fire relief association retiree 155.12 on January 16, 1993, and who is a surviving spouse due to the 155.13 death of that retired firefighter on October 2, 1997. 155.14 Subd. 2. [BENEFIT.] (a) An eligible individual under 155.15 subdivision 1, paragraph (b), is entitled to a surviving spouse 155.16 benefit computed under Laws 1997, chapter 233, article 4, 155.17 section 12, clause (f). 155.18 (b) Benefits payable as a result of the benefit authorized 155.19 in paragraph (a) commence on the first of the month following 155.20 the effective date of this section. 155.21 Sec. 7. [DEFINITIONS.] 155.22 Subdivision 1. [DEFINITIONS.] Unless the context clearly 155.23 indicates otherwise, the following terms have the meaning given 155.24 in this section. 155.25 Subd. 2. [ACTIVE MEMBER PERCENTAGE.] The "active member 155.26 percentage" is the total number of units accrued by active 155.27 members of the association divided by the sum of the total 155.28 number of units to which eligible members are entitled and 155.29 active members of the association have accrued. 155.30 Subd. 3. [ASSOCIATION.] "Association" means the 155.31 Minneapolis firefighter's relief association. 155.32 Subd. 4. [CITY.] "City" means the city of Minneapolis. 155.33 Subd. 5. [ELIGIBLE MEMBER.] An "eligible member" is a 155.34 person who receives a service, survivor, or disability pension 155.35 payable from the special fund of the association. 155.36 Subd. 6. [FUND.] "Fund" means the association's special 156.1 423B.01 fund. 156.2 Subd. 7. [NET EXCESS ASSET AMOUNT PAYMENT.] "Net excess 156.3 asset amount payment" means the payment of an additional post 156.4 retirement payment under section 3 to an eligible member on June 156.5 1, following the determination date in the given year. 156.6 Subd. 8. [NET TOTAL EXCESS ASSET AMOUNT.] "Net total 156.7 excess asset amount" is the total excess asset amount stated in 156.8 dollars and multiplied by the quantity one minus the active 156.9 member percentage. 156.10 Subd. 9. [TOTAL EXCESS ASSET AMOUNT.] (a) "Total excess 156.11 asset amount" means the difference if positive, expressed in 156.12 dollars, between the fund's market value of assets after any 156.13 deductions required by Laws 1989, chapter 319, article 19, 156.14 section 7, subdivision 3, as amended, and 110 percent of the 156.15 actuarial accrued liabilities based on the actuarial valuation 156.16 indicated in paragraph (b). 156.17 (b) The total excess asset amount in paragraph (a) exists 156.18 if the actuarial liability funding ratio, according to the most 156.19 recent annual actuarial valuation for the fund prepared in 156.20 accordance with Minnesota Statutes, sections 69.77, 356.215, and 156.21 356.216, with adjustments required by Laws 1989, chapter 319, 156.22 article 19, section 7, subdivision 3, as amended, equals or 156.23 exceeds 110 percent. 156.24 Sec. 8. [DETERMINATION OF NET TOTAL EXCESS ASSET AMOUNT.] 156.25 The board of the association shall determine by May 1 of 156.26 each year whether the fund has a total excess asset amount for 156.27 that year. If a total excess asset amount exists for the given 156.28 year, the net total excess asset amount shall be determined. 156.29 The total excess asset amount and net total excess asset amount 156.30 shall be reported to the chief administrative officer of the 156.31 association, to the mayor and governing body of the city, the 156.32 state auditor, the commissioner of finance, and the executive 156.33 director of the legislative commission on pensions and 156.34 retirement. The portion of the net excess asset amount which is 156.35 distributed under section 9 must not be considered as income to 156.36 or assets of the fund for actuarial valuations of the fund for 157.1 that year under Minnesota Statutes, sections 69.77, 356.215, and 157.2 356.216, and this act, except to offset the amount distributed. 157.3 Sec. 9. [AMOUNT OF NET EXCESS ASSET AMOUNT PAYMENT.] 157.4 Subdivision 1. [TOTAL AVAILABLE FOR PAYMENT.] Twenty 157.5 percent of the net total excess asset amount determined under 157.6 section 8 is available for net excess asset amount payments 157.7 under subdivision 2. 157.8 Subd. 2. [NET EXCESS ASSET AMOUNT PAYMENTS.] Except as 157.9 limited under subdivision 3, the net excess asset amount payment 157.10 to an eligible member is equal to the amount determined under 157.11 subdivision 1 multiplied by the units applicable to the eligible 157.12 member and divided by the total units of all eligible members. 157.13 Subd. 3. [ENTITLEMENT; PRIORITY.] A person who is an 157.14 eligible member for the entire 12 months before the 157.15 determination date is eligible for a full net excess asset 157.16 amount payment under subdivision 2. A person who is an eligible 157.17 member for less than 12 months before the determination date is 157.18 eligible for a prorated net excess asset amount payment. If an 157.19 eligible member dies after the determination date and before the 157.20 excess asset amount payment commences, the association must pay 157.21 that eligible member's net excess asset amount payment to the 157.22 eligible member's estate. 157.23 Subd. 4. [PAYMENT METHOD.] The net excess asset amount 157.24 payments determined under subdivisions 2 and 3 commence on June 157.25 1 following the determination date. These amounts may be paid 157.26 as a lump sum, disbursed to the eligible members in 12 equal 157.27 monthly installments, or any other manner which the board shall 157.28 determine. 157.29 Sec. 10. [CITY NORMAL COST CONTRIBUTION ADJUSTMENT.] 157.30 Notwithstanding Minnesota Statutes, sections 69.77, 157.31 356.215, 356.216, or other law to the contrary, the required 157.32 city contributions toward the association's normal cost, as 157.33 determined by the actuary, are reduced below that otherwise 157.34 payable by the full amount of active member contributions 157.35 required by law to be directed to the association's health 157.36 insurance escrow account rather than to the special fund. 158.1 Sec. 11. [SUSPENSION OF NORMAL COST CONTRIBUTIONS.] 158.2 Notwithstanding the provisions of Minnesota Statutes, 158.3 section 69.77, or any other law to the contrary, if a total 158.4 excess asset amount exists, as defined in section 7, subdivision 158.5 9, the city is not required to make a contribution to the fund 158.6 for the normal cost of active members. 158.7 Sec. 12. [NO GUARANTEE OF ANNUAL RESIDUAL INVESTMENT 158.8 PAYMENT.] 158.9 No provision of this act may be interpreted or relied upon 158.10 by any member of the association to guarantee or entitle a 158.11 member to a net excess asset amount payment relating to any year 158.12 in which there is no net total excess asset amount. 158.13 Sec. 13. [CHANGE IN AMORTIZATION PERIOD.] 158.14 Subdivision 1. [AMORTIZATION TREATMENT.] Notwithstanding 158.15 Minnesota Statutes, section 69.77, subdivision 2b; 356.215; 158.16 356.216; or any other law to the contrary, if the actuarial 158.17 report for the Minneapolis firefighters relief association 158.18 indicates an unfunded actuarial accrued liability, the unfunded 158.19 obligation is to be amortized on a level dollar basis by 158.20 December 31 of the year occurring 15 years later. If subsequent 158.21 actuarial valuations determine a net actuarial experience loss 158.22 incurred during the year which ended as of the day before the 158.23 most recent actuarial valuation date, any unfunded liability due 158.24 to that loss is to be amortized on a level dollar basis by 158.25 December 31 of the year occurring 15 years later. 158.26 Subd. 2. [LIMITATION.] Notwithstanding subdivision 1, the 158.27 amortization period may not exceed the average life expectancy 158.28 of the remaining members. 158.29 Sec. 14. [EFFECTIVE DATE.] 158.30 (a) Sections 1 to 5 are effective on the day after the date 158.31 on which the Minneapolis city council and the chief clerical 158.32 officer of the city of Minneapolis complete, in a timely manner, 158.33 their compliance with Minnesota Statutes, section 645.021, 158.34 subdivisions 2 and 3. 158.35 (b) Section 6 is effective on the day after the date on 158.36 which the Minneapolis city council and the chief clerical 159.1 officer of the city of Minneapolis compete, in a timely manner, 159.2 their compliance with Minnesota Statutes, section 645.021, 159.3 subdivisions 2 and 3. Section 5, if approved, applies 159.4 retroactively to contributions beginning after July 1, 1990. 159.5 (c) Sections 7 to 13 are effective on the day after the 159.6 date on which the Minneapolis city council and the chief 159.7 clerical officer of the city of Minneapolis compete, in a timely 159.8 manner, their compliance with Minnesota Statutes, section 159.9 645.021, subdivisions 2 and 3. Section 5, if approved, applies 159.10 retroactively to contributions beginning after July 1, 1990. 159.11 ARTICLE 18 159.12 JUDGES RETIREMENT PLAN 159.13 MODIFICATIONS 159.14 Section 1. Minnesota Statutes 1998, section 352D.02, 159.15 subdivision 1, is amended to read: 159.16 Subdivision 1. [COVERAGE.] (a) Employees enumerated in 159.17 paragraph (c), clauses (2), (3), (4), and (6) to (15), if they 159.18 are in the unclassified service of the state or metropolitan 159.19 council and are eligible for coverage under the general state 159.20 employees retirement plan under chapter 352, are participants in 159.21 the unclassified program under this chapter unless the employee 159.22 gives notice to the executive director of the Minnesota state 159.23 retirement system within one year following the commencement of 159.24 employment in the unclassified service that the employee desires 159.25 coverage under the general state employees retirement plan. For 159.26 the purposes of this chapter, an employee who does not file 159.27 notice with the executive director is deemed to have exercised 159.28 the option to participate in the unclassified plan. 159.29 (b) Persons referenced in paragraph (c), clauses (1) and 159.30 (5), are participants in the unclassified program under this 159.31 chapter unless the person is eligible to elect different 159.32 coverage under section 3A.07 or 352C.011 and, after July 1, 159.33 1998, elects retirement coverage by the applicable alternative 159.34 retirement plan. Persons referenced in paragraph (c), clause 159.35 (16), are participants in the unclassified program under this 159.36 chapter for judicial employment in excess of the service credit 160.1 limit in section 490.121, subdivision 22. 160.2 (c) Enumerated employees and referenced persons are: 160.3 (1) the governor, the lieutenant governor, the secretary of 160.4 state, the state auditor, the state treasurer, and the attorney 160.5 general; 160.6 (2) an employee in the office of the governor, lieutenant 160.7 governor, secretary of state, state auditor, state treasurer, 160.8 attorney general; 160.9 (3) an employee of the state board of investment; 160.10 (4) the head of a department, division, or agency created 160.11 by statute in the unclassified service, an acting department 160.12 head subsequently appointed to the position, or an employee 160.13 enumerated in section 15A.0815 or 15A.083, subdivision 4; 160.14 (5) a member of the legislature; 160.15 (6) a permanent, full-time unclassified employee of the 160.16 legislature or a commission or agency of the legislature or a 160.17 temporary legislative employee having shares in the supplemental 160.18 retirement fund as a result of former employment covered by this 160.19 chapter, whether or not eligible for coverage under the 160.20 Minnesota state retirement system; 160.21 (7) a person who is employed in a position established 160.22 under section 43A.08, subdivision 1, clause (3), or in a 160.23 position authorized under a statute creating or establishing a 160.24 department or agency of the state, which is at the deputy or 160.25 assistant head of department or agency or director level; 160.26 (8) the regional administrator, or executive director of 160.27 the metropolitan council, general counsel, division directors, 160.28 operations managers, and other positions as designated by the 160.29 council, all of which may not exceed 27 positions at the council 160.30 and the chair, provided that upon initial designation of all 160.31 positions provided for in this clause, no further designations 160.32 or redesignations may be made without approval of the board of 160.33 directors of the Minnesota state retirement system; 160.34 (9) the executive director, associate executive director, 160.35 and not to exceed nine positions of the higher education 160.36 services office in the unclassified service, as designated by 161.1 the higher education services office before January 1, 1992, or 161.2 subsequently redesignated with the approval of the board of 161.3 directors of the Minnesota state retirement system, unless the 161.4 person has elected coverage by the individual retirement account 161.5 plan under chapter 354B; 161.6 (10) the clerk of the appellate courts appointed under 161.7 article VI, section 2, of the Constitution of the state of 161.8 Minnesota; 161.9 (11) the chief executive officers of correctional 161.10 facilities operated by the department of corrections and of 161.11 hospitals and nursing homes operated by the department of human 161.12 services; 161.13 (12) an employee whose principal employment is at the state 161.14 ceremonial house; 161.15 (13) an employee of the Minnesota educational computing 161.16 corporation; 161.17 (14) an employee of the world trade center board;and161.18 (15) an employee of the state lottery board who is covered 161.19 by the managerial plan established under section 43A.18, 161.20 subdivision 3; and 161.21 (16) a judge who has exceeded the service credit limit in 161.22 section 490.121, subdivision 22. 161.23 Sec. 2. Minnesota Statutes 1998, section 352D.04, 161.24 subdivision 2, is amended to read: 161.25 Subd. 2. [CONTRIBUTION RATES.] (a) The money used to 161.26 purchase shares under this section is the employee and employer 161.27 contributions provided in this subdivision. 161.28 (b) The employee contribution is an amount equal to the 161.29 employee contribution specified in section 352.04, subdivision 2. 161.30 (c) The employer contribution is an amount equal to six 161.31 percent of salary. 161.32 (d) These contributions must be made in the manner provided 161.33 in section 352.04, subdivisions 4, 5, and 6. 161.34 (e) For members of the legislature, the contributions under 161.35 this subdivision also must be made on per diem payments received 161.36 during a regular or special legislative session, but may not be 162.1 made on per diem payments received outside of a regular or 162.2 special legislative session, on the additional compensation 162.3 attributable to a leadership position under section 3.099, 162.4 subdivision 3, living expense payments under section 3.101, or 162.5 special session living expense payments under section 3.103. 162.6 (f) For a judge who is a member of the unclassified plan 162.7 under section 352D.02, subdivision 1, paragraph (c), clause 162.8 (16), the employee contribution rate is eight percent of salary, 162.9 and there is no employer contribution. 162.10 Sec. 3. Minnesota Statutes 1998, section 356.30, 162.11 subdivision 1, is amended to read: 162.12 Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] (1) 162.13 Notwithstanding any provisions to the contrary of the laws 162.14 governing the funds enumerated in subdivision 3, a person who 162.15 has met the qualifications of clause (2) may elect to receive a 162.16 retirement annuity from each fund in which the person has at 162.17 least six months allowable service, based on the allowable 162.18 service in each fund, subject to the provisions of clause (3). 162.19 (2) A person may receive upon retirement a retirement 162.20 annuity from each fund in which the person has at least six 162.21 months allowable service, and augmentation of a deferred annuity 162.22 calculated under the laws governing each public pension plan or 162.23 fund named in subdivision 3, from the date the person terminated 162.24 all public service if: 162.25 (a) the person has allowable service totaling an amount 162.26 that allows the person to receive an annuity in any two or more 162.27 of the enumerated funds; and 162.28 (b) the person has not begun to receive an annuity from any 162.29 enumerated fund or the person has made application for benefits 162.30 from all funds and the effective dates of the retirement annuity 162.31 with each fund under which the person chooses to receive an 162.32 annuity are within a one-year period. 162.33 (3) The retirement annuity from each fund must be based 162.34 upon the allowable service in each fund, except that: 162.35 (a) The laws governing annuities must be the law in effect 162.36 on the date of termination from the last period of public 163.1 service under a covered fund with which the person earned a 163.2 minimum of one-half year of allowable service credit during that 163.3 employment. 163.4 (b) The "average salary" on which the annuity from each 163.5 covered fund in which the employee has credit in a formula plan 163.6 shall be based on the employee's highest five successive years 163.7 of covered salary during the entire service in covered funds. 163.8 (c) The formula percentages to be used by each fund must be 163.9 those percentages prescribed by each fund's formula as continued 163.10 for the respective years of allowable service from one fund to 163.11 the next, recognizing all previous allowable service with the 163.12 other covered funds. 163.13 (d) Allowable service in all the funds must be combined in 163.14 determining eligibility for and the application of each fund's 163.15 provisions in respect to actuarial reduction in the annuity 163.16 amount for retirement prior to normal retirement. 163.17 (e) The annuity amount payable for any allowable service 163.18 under a nonformula plan of a covered fund must not be affected 163.19 but such service and covered salary must be used in the above 163.20 calculation. 163.21 (f) This section shall not apply to any person whose final 163.22 termination from the last public service under a covered fund is 163.23 prior to May 1, 1975. 163.24 (g) For the purpose of computing annuities under this 163.25 section the formula percentages used by any covered fund, except 163.26 the public employees police and fire fund, the judges' 163.27 retirement fund, and the state patrol retirement fund, must not 163.28 exceed the percent specified in section 356.19, subdivision 4, 163.29 per year of service for any year of service or fraction 163.30 thereof. The formula percentage used by the public employees 163.31 police and fire fund and the state patrol retirement fund must 163.32 not exceed the percent specified in section 356.19, subdivision 163.33 6, per year of service for any year of service or fraction 163.34 thereof. The formula percentage used by the judges' retirement 163.35 fund must not exceed the percent specified in section 356.19, 163.36 subdivision 8, per year of service for any year of service or 164.1 fraction thereof. The formula percentage used by the 164.2 legislators retirement plan and the elective state officers 164.3 retirement must not exceed 2.5 percent, but this limit does not 164.4 apply to the adjustment provided under section 3A.02, 164.5 subdivision 1, paragraph (c), or 352C.031, paragraph (b). 164.6 (h) Any period of time for which a person has credit in 164.7 more than one of the covered funds must be used only once for 164.8 the purpose of determining total allowable service. 164.9 (i) If the period of duplicated service credit is more than 164.10 six months, or the person has credit for more than six months 164.11 with each of the funds, each fund shall apply its formula to a 164.12 prorated service credit for the period of duplicated service 164.13 based on a fraction of the salary on which deductions were paid 164.14 to that fund for the period divided by the total salary on which 164.15 deductions were paid to all funds for the period. 164.16 (j) If the period of duplicated service credit is less than 164.17 six months, or when added to other service credit with that fund 164.18 is less than six months, the service credit must be ignored and 164.19 a refund of contributions made to the person in accord with that 164.20 fund's refund provisions. 164.21 Sec. 4. Minnesota Statutes 1998, section 490.121, 164.22 subdivision 4, is amended to read: 164.23 Subd. 4. [ALLOWABLE SERVICE.] "Allowable service" means a 164.24 whole year, or any fraction thereof, subject to the service 164.25 credit limit in subdivision 22, served as a judge at any time, 164.26 or served as a referee in probate for all referees in probate 164.27 who were in office prior to January 1, 1974. 164.28 Sec. 5. Minnesota Statutes 1998, section 490.121, is 164.29 amended by adding a subdivision to read: 164.30 Subd. 22. [SERVICE CREDIT LIMIT.] "Service credit limit" 164.31 means the greater of: (1) 24 years of allowable service under 164.32 chapter 490; or (2) for judges with allowable service rendered 164.33 prior to July 1, 1980, the number of years of allowable service 164.34 under chapter 490, which, when multiplied by the percentage 164.35 listed in section 356.19, subdivision 7 or 8, whichever is 164.36 applicable to each year of service, equals 76.8. 165.1 Sec. 6. Minnesota Statutes 1998, section 490.123, 165.2 subdivision 1a, is amended to read: 165.3 Subd. 1a. [MEMBER CONTRIBUTION RATES.] (a) A judge who is 165.4 covered by the federal old age, survivors, disability, and 165.5 health insurance program whose service does not exceed the 165.6 service credit limit in section 490.121, subdivision 22, shall 165.7 contribute to the fund from each salary payment a sum equal to 165.8 8.00 percent of salary. 165.9 (b) A judge not so covered whose service does not exceed 165.10 the service credit limit in section 490.121, subdivision 22, 165.11 shall contribute to the fund from each salary payment a sum 165.12 equal to 8.15 percent of salary. 165.13 (c) The contribution under this subdivision is payable by 165.14 salary deduction. 165.15 Sec. 7. Minnesota Statutes 1998, section 490.123, 165.16 subdivision 1b, is amended to read: 165.17 Subd. 1b. [EMPLOYER CONTRIBUTION RATE.] The employer 165.18 contribution rate to the fund on behalf of a judge is 20.5 165.19 percent of salary and continues after a judge exceeds the 165.20 service credit limit in section 490.121, subdivision 22. 165.21 The employer contribution must be paid by the state court 165.22 administrator and is payable at the same time as member 165.23 contributions under subdivision 1a or employee contributions to 165.24 the unclassified plan in chapter 352D for judges whose service 165.25 exceeds the limit in section 490.121, subdivision 22, are 165.26 remitted. 165.27 Sec. 8. Minnesota Statutes 1998, section 490.124, 165.28 subdivision 1, is amended to read: 165.29 Subdivision 1. [BASIC RETIREMENT ANNUITY.] Except as 165.30 qualified hereinafter from and after mandatory retirement date, 165.31 normal retirement date, early retirement date, or one year from 165.32 the disability retirement date, as the case may be, a retirement 165.33 annuity shall be payable to a retiring judge from the judges' 165.34 retirement fund in an amount equal to: (1) the percent 165.35 specified in section 356.19, subdivision 7, multiplied by the 165.36 judge's final average compensation multiplied by the number of 166.1 years and fractions of years of allowable service rendered prior 166.2 to July 1, 1980; plus (2) the percent specified in section 166.3 356.19, subdivision 8, multiplied by the judge's final average 166.4 compensation multiplied by the number of years and fractions of 166.5 years of allowable service rendered after June 30, 1980;166.6provided that the annuity must not exceed 70 percent of the166.7judge's annual salary for the 12 months immediately preceding166.8retirement. Service that exceeds the service credit limit in 166.9 section 490.121, subdivision 22, must be excluded in calculating 166.10 the retirement annuity, but compensation earned during this 166.11 service must be used in determining a judge's final average 166.12 compensation and calculating the retirement annuity. 166.13 Sec. 9. [PRIOR SERVICE.] 166.14 This section applies to a person who is a judge on July 1, 166.15 2000, and whose service under Minnesota Statutes, chapter 490, 166.16 on that date exceeds the service credit limit in Minnesota 166.17 Statutes, section 490.121, subdivision 22. A judge to whom this 166.18 section applies may elect to have money transferred from the 166.19 judges' plan to the judge's account in the unclassified 166.20 employees plan in Minnesota Statutes, chapter 352D. The amount 166.21 to be transferred is eight percent of the salary the judge 166.22 earned after reaching the service credit limit defined in 166.23 Minnesota Statutes, section 490.121, subdivision 22. A judge 166.24 electing this transfer forfeits all service credit under 166.25 Minnesota Statutes, chapter 490, that exceeds the limit in 166.26 Minnesota Statutes, section 490.121, subdivision 22. An 166.27 election under this section must be made before retirement as a 166.28 judge, and within 120 days of the effective date of this 166.29 section. The election must be made on a form and in a manner 166.30 specified by the executive director of the Minnesota state 166.31 retirement system. 166.32 Sec. 10. [EFFECTIVE DATE.] 166.33 Sections 1 to 9 are effective on July 1, 2000. 166.34 ARTICLE 19 166.35 VARIOUS INDIVIDUAL AND SMALL GROUP 166.36 PENSION PROVISIONS 167.1 Section 1. [MSRS-GENERAL; LATE DISABILITY BENEFIT 167.2 APPLICATION AUTHORIZED.] 167.3 (a) Notwithstanding any provision of Minnesota Statutes, 167.4 section 352.113, subdivision 4, to the contrary, a person 167.5 described in paragraph (b) is authorized to apply for a 167.6 disability benefit from the general state employees retirement 167.7 plan of the Minnesota state retirement system under Minnesota 167.8 Statutes, section 352.113. 167.9 (b) An eligible person is a person who: 167.10 (1) was born on October 3, 1952; 167.11 (2) was employed by the department of economic security 167.12 from August 1978 to December 1994; 167.13 (3) is disabled within the meaning of Minnesota Statutes, 167.14 section 352.01, subdivision 17; 167.15 (4) began receiving social security disability insurance 167.16 benefits in January 1995; and 167.17 (5) began part-time employment and continues in that 167.18 employment by the Minnesota state council on disability in 167.19 January 1998. 167.20 (c) The eligible person under paragraph (b) must provide, 167.21 in conjunction with the disability application, any relevant 167.22 evidence that the executive director of the Minnesota state 167.23 retirement system requires about the existence of a total and 167.24 permanent disability as defined in Minnesota Statutes, section 167.25 352.01, subdivision 17, and about the date on which the 167.26 disability occurred and its relationship to the termination of 167.27 active service in December 1994. 167.28 (d) If the eligible person files a disability benefit 167.29 application and if the eligible person provides sufficient 167.30 evidence of disability and the occurrence of the disability 167.31 under paragraph (c), the disability benefit becomes payable for 167.32 the first month next following the application and applicable 167.33 evidence. The disability benefit must be calculated under the 167.34 laws in effect at the time that the eligible person terminated 167.35 active service in December 1994. The disability benefit must 167.36 include any applicable deferred annuities augmentation under 168.1 Minnesota Statutes, section 352.72, subdivision 2. 168.2 (e) Nothing in this section may be deemed to exempt the 168.3 eligible person from the partial reemployment of a disabilitant 168.4 provision, Minnesota Statutes, section 352.113, subdivision 7. 168.5 Sec. 2. [LEGISLATIVE EMPLOYEE CONTRIBUTION TRANSFER.] 168.6 (a) Any employee of the senate, the house of 168.7 representatives, or of a joint legislative agency or commission 168.8 who transferred from an executive agency of the state before the 168.9 effective date of this section who was covered by the general 168.10 state employees retirement plan of the Minnesota state 168.11 retirement system during the period of employment with the 168.12 executive agency and who upon transfer participates in the 168.13 unclassified plan is entitled to have the person's employee and 168.14 applicable employer contributions for the period of employment 168.15 with the agency transferred to the supplemental investment fund 168.16 in accordance with Minnesota Statutes, section 352D.02, 168.17 subdivision 4, and section 352D.03, except that the amount 168.18 transferred must include the actual employer and employee 168.19 contribution together with interest for the employment period at 168.20 a rate equal to the growth rate of the general fund during this 168.21 period, compounded annually. 168.22 (b) If any employee described in paragraph (a) had general 168.23 state employees retirement plan contributions transferred before 168.24 the effective date of this section and the transferred amount 168.25 was less than the amount would be under paragraph (a) if the 168.26 transfer was made subsequent to the effective date of this 168.27 section, the difference must be transferred as provided in 168.28 paragraph (a). 168.29 (c) This transfer authority expires on July 1, 2002. 168.30 Sec. 3. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; SERVICE 168.31 CREDIT PURCHASE FOR UNCREDITED HENNEPIN COUNTY EMPLOYMENT.] 168.32 (a) An eligible person described in paragraph (b) is 168.33 entitled to obtain one year of allowable service credit from the 168.34 general employees retirement plan of the public employees 168.35 retirement association. 168.36 (b) An eligible person is a person who: 169.1 (1) was born April 12, 1936; 169.2 (2) retired from the teachers retirement association on 169.3 July 1, 1997; 169.4 (3) is currently a recipient of a retirement annuity from 169.5 the teachers retirement association and a retirement annuity 169.6 from the general state employees retirement plan of the 169.7 Minnesota state retirement system; and 169.8 (4) was employed during the period September 1966 through 169.9 September 1967 by Hennepin county as a parole officer, when 169.10 member contributions for retirement coverage were deducted, but 169.11 for which no allowable service credit in the general employees 169.12 retirement plan of the public employees retirement association 169.13 was recorded. 169.14 (c) Notwithstanding any provision of Minnesota Statutes, 169.15 sections 353.29, subdivision 7, and 356.30, to the contrary, an 169.16 eligible person may file an application for a retirement annuity 169.17 from the general employee retirement plan of the public 169.18 employees retirement association retroactive to July 1, 1997, 169.19 with benefits paid retroactive to that date, and may have the 169.20 annuity calculated as a combined service annuity. 169.21 (d) The allowable service credit must be granted by the 169.22 public employees retirement association upon the filing of a 169.23 valid retirement application by the eligible person. 169.24 (e) Within 30 days of the receipt of that application by 169.25 the public employees retirement association and notification by 169.26 the public employees retirement association to the county 169.27 administrator, Hennepin county may pay one-half of the prior 169.28 service credit purchase payment amount calculated under 169.29 Minnesota Statutes, section 356.55. If Hennepin county does not 169.30 pay the required amount in a timely fashion, the executive 169.31 director of the public employees retirement association shall 169.32 notify the commissioner of finance of that fact and the 169.33 commissioner shall deduct from any state aid or state 169.34 appropriation payable to Hennepin county that amount, plus 169.35 interest on that amount of 1.5 percent per month for each month 169.36 or portion of a month from the filing of the retirement 170.1 application under paragraph (d) to the date of deduction. 170.2 (f) An amount equal to one-half of the prior service credit 170.3 purchase payment amount calculated under Minnesota Statutes, 170.4 section 356.55, must be charged against the public employees 170.5 retirement association as an administrative expense. 170.6 (g) This allowable service credit provision expires on 170.7 January 1, 2001. 170.8 Sec. 4. [PAYMENT OF OMITTED SALARY DEDUCTIONS.] 170.9 Subdivision 1. [APPLICATION.] A person who was born on 170.10 October 23, 1943, was employed by Dakota county as a part-time 170.11 maintenance employee on October 16, 1985, and first had public 170.12 employees retirement association member contributions deducted 170.13 as of September 15, 1986, is entitled to purchase eight months 170.14 of service credit from the public employees retirement 170.15 association. 170.16 Subd. 2. [PAYMENT.] The purchase payment amount for the 170.17 service credit purchase authorized in subdivision 1 is governed 170.18 by Minnesota Statutes, section 356.55. Notwithstanding any 170.19 provision of Minnesota Statutes, section 356.55, subdivision 5, 170.20 to the contrary, the eligible person must pay, on or before June 170.21 1, 2001, an amount equal to the employee contribution rate 170.22 applied to the person's actual salary rate in effect between 170.23 January 17, 1986, and September 15, 1986, plus annual compound 170.24 interest at the rate of 8.5 percent from the date that the 170.25 employer contributions should have been paid and the date of 170.26 actual payment. Dakota county shall pay the balance of the 170.27 required purchase payment amount within 30 days of the payment 170.28 by the eligible person. If Dakota county fails to pay its 170.29 required amount, the executive director of the public employees 170.30 retirement association may notify the commissioner of finance of 170.31 that fact and the commissioner of finance may order that the 170.32 required amount be deducted from any subsequent state payment to 170.33 Dakota county and transmitted to the public employees retirement 170.34 association. 170.35 Subd. 3. [APPLICATION; DOCUMENTATION.] A person described 170.36 in subdivision 1 must apply with the executive director of the 171.1 public employees retirement association to make the purchase. 171.2 The application must be in writing and must include all 171.3 necessary documentation of the applicability of this section and 171.4 any other relevant information that the executive director may 171.5 require. 171.6 Subd. 4. [LIMITATION.] Authority under this section 171.7 expires on July 1, 2001. 171.8 Sec. 5. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; REDUCED 171.9 SERVICE CREDIT REQUIREMENT FOR DISABILITY BENEFIT APPLICATION.] 171.10 (a) An eligible person described in paragraph (b) is 171.11 entitled to apply for a disability benefit from the general 171.12 employee retirement plan of the public employees retirement 171.13 association with 14 months of service credit subsequent to the 171.14 person's last termination of membership, notwithstanding any 171.15 provision to the contrary of Minnesota Statutes, section 353.33, 171.16 subdivision 1. 171.17 (b) An eligible person is a person who: 171.18 (1) was born on May 30, 1945; 171.19 (2) began public employment with Todd county in November 171.20 1978; 171.21 (3) first terminated public employment in August 1982; 171.22 (4) resumed public employment with Morrison county in 171.23 October 1987; 171.24 (5) subsequently terminated public employment with Meeker 171.25 county in November 1997; 171.26 (6) resumed public employment with Todd county in August 171.27 1998; and 171.28 (7) subsequently terminated public employment October 8, 171.29 1999. 171.30 Sec. 6. [TEACHERS RETIREMENT ASSOCIATION; REFUND OF 171.31 CERTAIN INTEREST CHARGES.] 171.32 (a) Upon filing a written demand for the interest refund, a 171.33 person described in paragraph (b) is entitled to receive a 171.34 refund of interest specified in paragraph (c) for the period 171.35 during which the teachers retirement association was negligent 171.36 in providing accurate information to the eligible person or was 172.1 negligent in making timely reports to other Minnesota public 172.2 pension plans in which the eligible person has service credit. 172.3 (b) An eligible person is a person who: 172.4 (1) retired from the teachers retirement association 172.5 effective September 1, 1999; 172.6 (2) repaid a previously taken refund to the teachers 172.7 retirement association on August 23, 1999, restoring 10.979 172.8 years of allowable service credit; 172.9 (3) began the retirement application and refund repayment 172.10 process in February 1999, and was first able to file retirement 172.11 forms with the teachers retirement association office on August 172.12 27, 1999; and 172.13 (4) was charged interest on the repayment of refund for the 172.14 period during which the teachers retirement association failed 172.15 to provide requested information and failed to contact the 172.16 public employees retirement association and the St. Paul 172.17 teachers retirement fund association. 172.18 (c) The refund interest rate is 0.708 percent per month, 172.19 compounded monthly, on the refund repayment amount that would 172.20 have been payable on April 15, 1999, applied to the period April 172.21 15, 1999, to August 23, 1999, and 8.5 percent per year, 172.22 compounded annually, on that initially determined amount from 172.23 August 23, 1999, until the interest repayment is made. 172.24 (d) The interest refund is payable on the first day of the 172.25 month next following the date on which the eligible person files 172.26 the written demand under paragraph (a). 172.27 Sec. 7. [MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION; 172.28 PRIOR SERVICE CREDIT PURCHASE AUTHORIZATION.] 172.29 (a) Notwithstanding any provision of law to the contrary, a 172.30 person described in paragraph (b) is authorized to purchase 172.31 allowable service credit from the basic program of the 172.32 Minneapolis teachers retirement fund association for the period 172.33 described in paragraph (c) by making the payment specified in 172.34 paragraph (d). 172.35 (b) An eligible person for purposes of paragraph (a) is a 172.36 person who: 173.1 (1) was born on October 1, 1942; 173.2 (2) is currently employed by special school district No. 1 173.3 (Minneapolis) and is currently a member of the Minneapolis 173.4 teachers retirement fund association; 173.5 (3) was initially hired by special school district No. 1 173.6 (Minneapolis) on November 13, 1967, and taught at Sanford Junior 173.7 High School until June 1968; 173.8 (4) was reemployed by special school district No. 1 173.9 (Minneapolis) as an adult basic education English and social 173.10 studies teacher on May 25, 1970, and continued to teach in that 173.11 program until December 17, 1984; and 173.12 (5) as a result of binding arbitration of an employment 173.13 dispute, was employed by special school district No. 1 173.14 (Minneapolis) as an English teacher at Franklin Junior High 173.15 School on December 17, 1984. 173.16 (c) The service credit purchase period is any period 173.17 between May 25, 1970, to December 17, 1984, that has not 173.18 previously been credited by the Minneapolis teachers retirement 173.19 fund association. 173.20 (d) To purchase the allowable service credit, the eligible 173.21 person must pay to the Minneapolis teachers retirement fund 173.22 association the prior service credit purchase payment calculated 173.23 under Minnesota Statutes, section 356.55. 173.24 (e) The eligible person must provide all relevant 173.25 documentation of the applicability of the requirements set forth 173.26 in paragraph (b) and any other applicable information that the 173.27 executive director of the Minneapolis teachers retirement fund 173.28 association may request. 173.29 (f) This prior service credit purchase authority expires on 173.30 July 1, 2001, or on the date of the eligible person's 173.31 termination of active service with special school district No. 1 173.32 (Minneapolis), whichever is earlier. 173.33 Sec. 8. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 173.34 INDEPENDENT CONTRACT UNCREDITED TEACHING SERVICE PERIOD.] 173.35 (a) An eligible person described in paragraph (b) is 173.36 authorized to purchase allowable service credit from the 174.1 Minneapolis teachers retirement fund association for the period 174.2 of teaching employment specified in paragraph (c) by making the 174.3 payment required under Minnesota Statutes, section 356.55, by 174.4 the last date authorized for receiving payment under that 174.5 section, or the eligible person's effective date of retirement, 174.6 whichever is earlier. 174.7 (b) An eligible person is a person who: 174.8 (1) was born on May 22, 1939; 174.9 (2) was employed by special school district No. 1 174.10 (Minneapolis) and covered as an active member by the Minneapolis 174.11 teachers retirement fund association from July 27, 1962, to June 174.12 11, 1967; 174.13 (3) was retained by special school district No. 1 174.14 (Minneapolis) at an hourly wage rate as a teacher in the adult 174.15 basic education program from April 23, 1980, to September 28, 174.16 1992. 174.17 (c) The period for allowable service credit purchase is 174.18 from April 23, 1980, to September 28, 1992. 174.19 (d) An eligible person under paragraph (b) must provide any 174.20 relevant documentation related to eligibility to make this 174.21 service credit purchase which is required by the executive 174.22 director of the Minneapolis teachers retirement fund association. 174.23 (e) Allowable service credit for the purchase periods must 174.24 be granted by the Minneapolis teachers retirement fund 174.25 association to the account of the eligible person upon receipt 174.26 of the prior service credit purchase payment amount. 174.27 (f) A service credit purchase is not authorized for any 174.28 portion of the April 23, 1980, to September 28, 1992, period for 174.29 which the eligible individual signed an independent contract 174.30 which waives pension coverage by the Minneapolis teachers 174.31 retirement fund association for the period covered by the 174.32 contract, or for any period for which administrators for special 174.33 school district No. 1 or the Minneapolis teachers retirement 174.34 fund association determine that the individual was serving as an 174.35 independent contractor. 174.36 Sec. 9. [MERF; PRIOR SERVICE CREDIT PURCHASE FOR TEMPORARY 175.1 EMPLOYMENT PERIOD.] 175.2 (a) An eligible person described in paragraph (b) is 175.3 entitled to purchase allowable service credit from the 175.4 Minneapolis employees retirement fund for the period of 175.5 temporary employment specified in paragraph (c) by making the 175.6 payment required under Minnesota Statutes, section 356.55. 175.7 (b) An eligible person is a person who: 175.8 (1) was born on August 15, 1951; 175.9 (2) was hired by the city of Minneapolis as a maintenance 175.10 worker/truck driver on June 1, 1976, and was covered by the 175.11 Minneapolis employees retirement fund for that employment; 175.12 (3) is currently employed by the city of Minneapolis and 175.13 covered by the Minneapolis employees retirement association. 175.14 (c) The period for allowable service credit purchase is a 175.15 period during 1975 during which the eligible person was employed 175.16 by the city of Minneapolis as a temporary employee. 175.17 (d) An eligible person must provide any relevant 175.18 documentation related to eligibility to make this service credit 175.19 purchase required by the executive director of the Minneapolis 175.20 employees retirement fund. 175.21 (e) Allowable service credit for the purchase periods must 175.22 be granted by the Minneapolis employees retirement fund to the 175.23 account of the eligible person upon receipt of the prior service 175.24 credit purchase payment amount. To receive the service credit, 175.25 the service credit purchase must be received by the Minneapolis 175.26 employees retirement fund by October 1, 2001, or prior to 175.27 retirement, whichever is earlier. 175.28 Sec. 10. [MERF; PRIOR SERVICE CREDIT PURCHASE FOR 175.29 TEMPORARY EMPLOYMENT PERIOD.] 175.30 (a) An eligible person described in paragraph (b) is 175.31 entitled to purchase allowable service credit from the 175.32 Minneapolis employees retirement fund for the period or periods 175.33 of temporary employment specified in paragraph (c) by making the 175.34 payment required under Minnesota Statutes, section 356.55. 175.35 (b) An eligible person is a person who: 175.36 (1) was born on December 17, 1953; 176.1 (2) was hired by the city of Minneapolis as a full-time 176.2 maintenance worker on February 2, 1974, and was covered by the 176.3 Minneapolis employees retirement fund for that employment; and 176.4 (3) is currently employed by the city of Minneapolis, 176.5 covered by the Minneapolis employees retirement association. 176.6 (c) The periods for allowable service credit purchase are 176.7 periods during 1974 and 1975 during which the eligible person 176.8 was employed by the city of Minneapolis as a temporary employee. 176.9 (d) An eligible person must provide any relevant 176.10 documentation related to eligibility to make this service credit 176.11 purchase required by the executive director of the Minneapolis 176.12 employees retirement fund. 176.13 (e) Allowable service credit for the purchase periods must 176.14 be granted by the Minneapolis employees retirement fund to the 176.15 account of the eligible person upon receipt of the prior service 176.16 credit purchase payment amount. To receive the service credit, 176.17 the service credit purchase must be received by the Minneapolis 176.18 employees retirement fund by October 1, 2001, or prior to 176.19 retirement, whichever is earlier. 176.20 Sec. 11. [EFFECTIVE DATE.] 176.21 (a) Sections 1, 2, and 4 to 10 are effective on the day 176.22 following final enactment. 176.23 (b) Section 3 is effective on the day after the date on 176.24 which the Hennepin county board of commissioners and the chief 176.25 clerical officer of Hennepin county complete, in a timely 176.26 manner, their compliance with Minnesota Statutes, section 176.27 645.021, subdivisions 2 and 3. 176.28 (c) Section 1 expires, if not utilized, on December 31, 176.29 2000.